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03-14-2006 (City Council) Agenda Packet Wylie City Council CITY OF NOTICE OF MEETING Regular Meeting Agenda Tuesday, March 14, 2006 - 6:00 pm Wylie Municipal Complex-Council Chambers 2000 Highway 78 North John Mondy Mayor Eric Hogue Mayor ProTem Earl Newsom Place 1 Reta Allen Place 2 Merrill Young Place 4 Rick White Place 5 Carter Porter Place 6 Mark B. Roath City Manager Richard Abernathy City Attorney Carole Ehrlich City Secretary In accordance with Section 551.042 of the Texas Government Code, this agenda has been posted at the Wylie Municipal Complex, distributed to the appropriate news media, and posted on the City website: www.wvlietexas.gov within the required time frame. As a courtesy, the entire Agenda Packet has also been posted on the City of Wylie website: www.wvlietexas.gov. The Mayor and City Council request that all cell phones and pagers be turned off or set to vibrate. Members of the audience are requested to step outside the Council Chambers to respond to a page or to conduct a phone conversation. The Wylie Municipal Complex is wheelchair accessible. Sign interpretation or other special assistance for disabled attendees must be requested 48 hours in advance by contacting the City Secretary's Office at 972.442.8100 or TD 972.442.8170. CALL TO ORDER Announce the presence of a Quorum. INVOCATION & PLEDGE OF ALLEGIANCE CITIZENS COMMENTS ON NON-AGENDA ITEMS Residents may address Council regarding an item that is not listed on the Agenda. Residents must provide their name and address. Council requests that comments be limited to three (3) minutes. In addition, Council is not allowed to converse, deliberate or take action on any matter presented during citizen participation. CONSENT AGENDA All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by one motion. There will not be separate discussion of these items. If discussion is desired, that item will be removed from the Consent Agenda and will be considered separately. March 14,2006 Wylie City Council Regular Meeting Agenda Page 2 of 4 A. Approval of the Minutes from the February 28, 2006 Regular Meeting of the City Council. (C. Ehrlich, City Secretary) B. Consider, and act upon, a Final Plat for Creekside Addition, Phase 5, subject property generally located north of McMillen Road, east of McCreary Road and west of Lewis Drive. (M. Manson, Assistant City Manager) C. Consider, and act upon, Ordinance No. 2006-13 extending until July 31, 2006, or until the new Franchise becomes effective, the Franchise granted to ATMOS Energy Corporation, to own, operate, and maintain a gas distribution system in the City of Wylie. (M. Roath, City Manager) D. Consider, and act upon, Resolution No. 2006-09(R) amending Section IV (D), entitled Reporting of the City's Financial Management Policies. (L. Williamson, Finance Director) E. Consider, and act upon, Change Order No. 1 decreasing the Landmark Structures Contract by $21,740.00, for the Creekside Elevated Storage Tank. (C. Holsted, City Engineer) REGULAR AGENDA Public Hearings 1. Conduct a Public Hearing, and act upon, continuing the Public Hearing to the March 28, 2006 Council meeting to act on a change in zoning from Agricultural (AG) District to Community Retail (CR) District for retail development, generally located at 400 Alanis Drive, being south of Alanis Drive and west of S. Ballard Avenue. ZC 2006-02 (M. Manson, Assistant City Manager) Executive Summary This Agenda item was tabled to the March 7,2006 Planning and Zoning meeting to afford time to re-notify all concerned with the correct legal description. Due to State law provisions, action is required at this meeting to open the public hearing,and then continue it to the March 28,2006 Council meeting. 2. Conduct a Public Hearing, and act upon, Ordinance No. 2006-14 amending the zoning from Planned Development (PD 2002-52) to Planned Development with Special Use Permit to allow for a Day Care Facility, generally located at the northeast corner of Collins Boulevard and FM 544. ZC 2006-03 (M. Manson, Assistant City Manager) Executive Summary The applicant property is located at the northeast corner of Collins Boulevard and FM 544. The applicant request is to designate lots 1 and 2 of Block E as a Day Care site totaling 2.02 acres. The City's Zoning Ordinance, specifically Article 5, (Use Regulations), Section 5.2 (Listed Uses), requires that day care uses within single-family residential districts obtain a specific use permit. 3. Conduct a Public Hearing, and act upon, Ordinance No. 2006-15 adopting Standards of Care for Youth Programs. (R. Diaz, Superintendent, Parks and Recreation) March 14,2006 Wylie City Council Regular Meeting Agenda Page 3 of 4 Executive Summary Texas Senate Bill 212, Section 42.041 (b)(14)requires the Governing Body of a municipality,who operates a recreation program(s) for youth, between the ages of five to thirteen, to adopt an ordinance setting forth the standards of care. This Ordinance,and attachments,satisfies the State requirement noted herein. General Business 4. Consider presentation by Rutledge, Crain & Company, P.C., and act upon and place on file, the Comprehensive Annual Financial Report (CAFR). (L. Williamson, Finance Director) Executive Summary Article VII, Section 13 of the City Charter requires an independent audit be performed by a certified public accountant. Mr. Lewis Crain,representing the audit firm of Rutledge Crain and Company,P.C. is available to present his audit report ending September 30,2005. 5. Consider, and act upon, an Amended and Restated Interlocal Agreement by and between the City of Wylie, Texas and the Wylie Economic Development Corporation (WEDC). (M. Roath, City Manager) Executive Summary On September 27, 2005, the City and WEDC entered into an Interlocal Agreement for office space and administrative services. With recent changes in staffing in the City Manager's Office and recognition of the WEDC's need for additional administrative services, the City Manager and WEDC Executive Director met and developed revisions to the earlier agreement. The WEDC Board of Directors reviewed and has approved the proposed Agreement. 6. Consider, and act upon, Ordinance No. 2006-16 of the City Council of Wylie, Texas, adding Chapter 54 to the Wylie City Code relating to Graffiti Vandalism and Establishing a Program for the Removal of Graffiti on Public and Private Property. (M. Roath, City Manager) Executive Summary Graffiti vandalism has grown from exclusively a big city problem into affecting smaller communities. Graffiti vandals have inflicted damage on public and private property, which has been reflected in cost of clean up and replacement of graffiti areas. This Anti-Graffiti Ordinance is designed to address graffiti vandalism issues as well as establish a program for removal of graffiti on public and private property. 7. Consider, and act upon, Ordinance No. 2006-17 adding Chapter 74 to the Wylie City Code regulating the use and possession of Laser Pointer Devices. (M. Roath, City Manager) Executive Summary This Ordinance, on the use and possession of laser pointer devices, contains the common elements of laser safety recommended by such entities as The Laser Institute of America, the Law Enforcement Alliance of America (LEAA) and others, such as allowing children to use laser pointers only with adult supervision, prohibiting the shining of a light beam into the eyes,on pointing a laser pointer beam at another person,and on projecting laser pointer beams on law enforcement officers and other public safety personnel. 8. Consider, and act upon, an agreement with HISAW & Associates, in the amount of $60,825.00, for Construction Manager at Risk Services for the Animal Shelter Expansion Project. (J. Butters, Police Chief) Executive Summary This agreement is to engage the services of a Construction Manager at Risk to complete the Animal Shelter expansion project. The City received two bids for the CM at Risk,which the firm of HISAW&Associates March 14,2006 Wylie City Council Regular Meeting Agenda Page 4 of 4 was low bidder. Dwayne Brinkley,Animal Shelter Architect,reviewed and recommends acceptance of this bidder and agreement. ADJOURNMENT CERTIFICATION I certify that this Notice of Meeting was posted on this 10`h day of March, 2006 at 5:00 p.m. as required by law in accordance with Section 551.042 of the Texas Government Code and that the appropriate news media was contacted. As a courtesy, this agenda is also posted on the City of Wylie website: www.wylietexas.gov. Carole Ehrlich,City Secretary Date Notice Removed MINUTES Wylie City Council Tuesday, March 14, 2006— 6:00 p.m. Wylie Municipal Complex—Council Chambers 2000 State Highway 78 North Mayor Mondy called the meeting to order at 6:00 p.m. Council Members present were: Mayor Pro Tern Eric Hogue, Councilwoman Reta Allen, Councilman Rick White, Councilman Carter Porter, Councilman Earl Newsom,and Councilman Merrill Young. Staff present were: City Manager, Mark B. Roath; Assistant City Manager and Planning Director, Mindy Manson; City Engineer, Chris Hoisted; Finance Director, Larry Williamson; Public Services Director, Mike Sferra;Public Information Officer,Mark Witter,and City Secretary,Carole Ehrlich;and various support staff. IDWOCATION&PLEDGE OF ALLEGIANCE Reverend Kris Segrest, Pastor of the First Baptist Church of Wylie gave the invocation and Councilman Newsom led the Pledge of Allegiance. PRESENTATIONS&DISCUSSION • Presentation to 4tn Six Weeks Star Students—Character Trait of "Trustworthiness" Mayor Mondy and Mayor Pro Tern Hogue presented certificates of recognition to those students nominated for the character trait of"Trustworthiness". CITIZENS PARTICIPATION ... . . r No one was present to address Council during"Citizens Participation". CONSENT AGENDA ' ' All matte's,listed under the Consent Agenda are considered to bep by�„�1 �` Motion. will not be separate d�of these items: �1Q11 7'£ee' • I . x 1r M Consent Agenda and will be considered separately. t. 1 A. Approval of the Minutes from the February 14, 2006 Regular Meeting of the City Council. (C. Ehrlich, City Secretary) B. Consider, and act upon, approval of an agreement between the City of Wylie and The Dallas Morning News for the purpose of employment recruiting advertising. (C.Ehrlich, City Secretary) C. Consider, and act upon,Resolution No.2006-07(R) designating the Finance Director and the City Manager as authorized representatives to invest City funds in the Texpool Money Market Account and authorizing the Senior Accountant selected information authority. (L. Williamson, Finance Director) Minutes—February 28,2006 Wylie City Council Page 1 D. Consider, and act upon, awarding a contract to Resendiz Concrete Construction based upon a flat rate for miscellaneous concrete repair and construction. (M. Sferra,Public Services Director) E. Consider, and act upon, a Preliminary Plat for the New Heights Baptist Church located west of Hooper Road and east of Regency Business Park Addition Phase 2. (M. Manson, Assistant City Manager) Council Action A motion was made by Mayor Pro Tem Hogue, seconded by Councilman White to approve the Consent Agenda as presented. A vote was taken and passed 7-0. INDIVIDUAL CONSIDERATION Public Hearings 1. Hold and continue a Public Hearing to change the zoning from Agricultural (AG) District to Planned Development(PD) District for mixed uses,generally located south of S.H. 78 and west of Eubanks Road.(M.Manson,Assistant City Manager) Staff Comments Planning & Zoning Director Manson addressed Council stating that this item was tabled by the Planning and Zoning Commission to the March 7, 2006 meeting to allow applicant time to develop PD Conditions and allow time for staff to re-notify.However,because publication and notification of the requested rezoning has been completed in accordance with State Law,some action is required by the Council at the current meeting. Public Hearing Mayor Mondv opened the Public Hearing at 6:12 p.m. No one was present to address Council during the Public Hearing Mayor Mondv closed the Public Hearing at 6:12 p.m. Council Action A motion was made by Councilman Newsom, seconded by Mayor Pro Tem Hogue to continue the Public Hearing until the March 28, 2006 meeting and thereafter to consider an ordinance to change the zoning from Agricultural (AG) District to Planned Development (PD) District for mixed uses generally located south of S.H. 78 and west of Eubanks Road. A vote was taken and passed 7-0. 2. Hold a Public Hearing on the updated Land Use Assumptions and Capital Improvements Plan needed for adoption of water and sewer impact fees. (C.Hoisted, City Engineer) Staff Comments City Engineer Holsted addressed Council stating that on January 10, 2006 Council adopted an Ordinance setting the date for a public hearing on the updated Land Use Plan and Capital Improvements Plan. Section 395 of the Local Government Minutes—February 28,2006 Wylie City Council Page 2 Code specifies the process necessary for the implementation of impact fees. The Impact Fee Advisory Committee met on February 21 s`to file written comments on the proposed Fees. Public Hearing Mayor Mondv opened the Public Hearing at 6:14 p.m. No one was present to address Council during the Public Hearing Mayor Mondv closed the Public Hearing at 6:14 p.m. 3. Consider, and act upon,Ordinance No. 2006-10 adopting the updated Land Use Assumptions and Capital Improvements Plan.(C.Hoisted, City Engineer) Staff Comments City Engineer Hoisted addressed Council stating that on January 10, 2006 Council adopted an Ordinance setting the date for a public hearing on the updated Land Use Plan and Capital Improvements Plan. Section 395 of the Local Government Code specifies the process necessary for the implementation of impact fees,and a public hearing has now been conducted to receive public comments on the updates to the Land Use Plan and Capital Improvements Plan. He explained that the Water&Wastewater Impact Fee Update compiled by Birkhoff, Hendricks & Conway, L.L.P would incorporate both the Land Use Assumptions and Capital Improvement Plan updates and would become Exhibit A to the approved ordinance. Council Action A motion was made by Councilman Young,seconded by Councilman White to approve Ordinance No. 2006- 10 adopting the updated Land Use Assumptions and Capital Improvements Plan. A vote was taken and passed 7-0. 4. Consider, and act upon, Resolution No. 2006-08(R) setting a date, time, and place for a Public Hearing on the proposed Water and Wastewater Impact Fees.(C.Hoisted, City Engineer) Staff Comments City Engineer Hoisted addressed Council stating that on January 10, 2006 Council adopted an Ordinance setting the date for a public hearing on the updated Land Use Plan and Capital Improvements Plan. Section 395 of the Local Government Code specifies the process necessary for the implementation of impact fees,and a public hearing was conducted to receive public comments on the updates to the Land Use Plan and Capital Improvements Plan. The proposed resolution sets a date, time and place to conduct a public hearing on the proposed impact fees. Council Action A motion was made by Mayor Pro Tern Hogue, seconded by Councilman Young to approve Resolution No. 2006-08(R) setting April 11, 2005 at 6:00 p.m., in the City Council Chambers of the Wylie City Hall for a Public Hearing on the proposed Water and Wastewater Impact Fees. A vote was taken and passed 7-0. 5. Consider, and act upon, Ordinance No. 2006-11 abandoning the alley right-of-way, generally located at the east right-of-way of Jackson Street north of Brown Street and running approximately 285 feet east through Block 1,Lots 1C and lA and Block 2,Lots 2F,2C,and 2G to Minutes—February 28,2006 Wylie City Council Page 3 the west right-of-way of Ballard Avenue in the Russell #1 Addition. (M. Manson, Assistant City Manager) Staff Comments Planning&Zoning Director Manson addressed Council stating that the South Collin County Habitat for Humanity, owner of a tract of land located within the Russell#1 Addition,Block 2,Lots 2F,2C,and 2B,has requested that the City abandon that segment of the alley beginning at the east right-of-way of Jackson Street north of Brown Street and running approximately 285 feet east through Block 1,Lots 1C and 1A and Block 2,Lots 2F,2C,and 2G to the west right-of-way of Ballard Avenue. The alley was created by the platting of the Russell#1 Addition, one of the original subdivisions within the City of Wylie. The segment of this abandonment is 15 feet wide and 285 feet long,containing 4,275 square feet. The area is a stable residential area and has received significant reinvestment and redevelopment through the years.Lot 2 of the subject property has been previously inappropriately divided which has resulted in some lots being too small for modern residences and has caused some land-locked parcels which cannot be accessed by emergency vehicles. The applicant has since purchased these lots and is pursuing development through the re-platting process of these lots. Council Discussion Councilman Young asked if the alley was a north/south access. Ms. Manson replied that it was an east/west access from Jackson to Ballard St. Mayor Pro Tern Hogue asked if this was not the alley that a resident needed access to their drive through the alley. Ms. Manson replied that there was a land locked property in that area. The request for alley abandonment is coming from Habitat for Humanity and the three lots will be re-platted to rectify this issue. Mayor Mondy asked if there was any value to this alley. Ms.Manson explained that it had a sewer line that the City will have to retain as an easement but the value is substandard with only a 15 foot width. The abandonment and subsequent re-platting of the properties will bring it into the current conformity of the city zoning. Councilwoman Allen asked who could buy the land. Ms.Manson explained that it would first be offered to the property owners adjacent to the alley;if they were not interested in the purchase, it could be purchased by Habitat for Humanity. Councilman Newsom asked which lots Habitat for Humanity had purchased. Ms. Manson replied that those lots were Lots 2B, 2C, and 2F. Councilman Young asked that staff look at the property to retain an area that could be used to widen Ballard Street if the City chooses to do that in the future. Ms.Manson said she would look into that issue. Council Action A motion was made by Councilman Young, seconded by Councilman Newsom to approve Ordinance No. 2006-11 abandoning the alley right-of-way, generally located at the east right-of-way of Jackson Street north of Brown Street and running approximately 285 feet east through Block 1, Lots 1C and 1A and Block 2, Lots 2F, 2C, and 2G to the west right-of-way of Ballard Avenue in the Russell #1 Addition. A vote was taken and passed 6-1 with Mayor Pro Tem Hogue, Councilwoman Allen, Councilman Newsom, Councilman Young, Councilman White and Councilman Porter voting for and Mayor Mondy voting against. 6. Consider, and act upon, Engineering Services Agreements with Birkhoff, Hendricks & Conway, L.L.P., in the amount of$704,700.00, for (A) 730 Service Zone and 679 Service Zone Waterline Improvements; and (B) Newport Harbor Pump Station, Nortex Pump Station and NTMWD Pump Station Improvements. (C.Hoisted, City Engineer) Staff Comments City Engineer Hoisted addressed Council stating that the City recently completed updates to the water system 10-year Capital Improvements Plan(CIP). Based on the future growth of the City,the plan identifies twenty eight(28)water line and pump station improvements necessary to maintain the current level of service and provide additional capacity in the system. Water line improvements include mains along McCreary Road, in Newport Harbor,along FM 1378,along SH 78, along Brown St,and along Sanden Blvd. The pump station additions will take the City to build out. Minutes—February 28,2006 Wylie City Council Page 4 Council Action A motion was made by Councilman Young, seconded by Councilman Porter to approve Engineering Services Agreements with Birkhoff,Hendricks&Conway, L.L.P., in the amount of$704,700.00 for(A) 730 Service Zone and 679 Service Zone Waterline Improvements; and(B)Newport Harbor Pump Station,Nortex Pump Station and NTMWD Pump Station Improvements.A vote was taken and passed 7-0. 7. Consider, and act upon, approval of Ordinance No. 2006-12 to amend the FY 2005-06 Annual Operating Budget in the amount of $60,000, transferring funds from 4B Fund (Land Betterments/112-5614-58150) to the General Fund (Utilities Water/100-5511-56630) for Park Division water consumption. (M.Sferra,Public Services Director) Staff Comments Public Services Director Sferra addressed Council stating that for FY 05-06, the Parks Division line item for Utilities Water(100-5511-56630)was budgeted$40,000.This line item is the source of funding for 20 sites throughout the city that are irrigated. Currently, 82% of the total amount budgeted for FY 05-06 water needs has already been used. A budget amendment in the form of a transfer of funds, in the amount of$60,000, is requested to meet the anticipated needs for the balance of the fiscal year. The high rate of water consumption is due to the past, present, and continuing drought conditions. Council Discussion Councilman Young asked if the new parks brought on line this year, and not anticipated last year at budget time,were part of the shortage. Mr. Sferra replied that yes they were. Mayor Mondy asked why the costs would be higher with the Stage 2 Drought Plan in place. Mr.Sferra explained that the Stage 2 restrictions just went into effect last month and this was due to the lack of rain over the past 6 months along with the additional parks on line. Mayor Mondy asked Finance Director Williamson why procedures could not be put in place to eliminate this type of shortage. Finance Director Williamson stated that this was not anticipated and would be difficult to foresee. He also explained that this was a transfer of funds not a new expense. Mayor Pro Tern Hogue asked if money was taken from the 4B account to cover the shortage, would there be enough in the 4B fund to complete the hike and bike trail earmarked for the funds. Mr. Sferra stated there would be with approximately$50,000 left to complete the trail. City Manager Roath asked Mr. Sferra if the money requested to be transferred would be enough to complete water expenses for this budget year. Mr. Sferra stated that it would. He explained that there were procedures in place to make sure the transferred money would be ample for the remainder of the current budget year. Council Action A motion was made by Mayor Pro Tern Hogue, seconded by Councilman Newsom to approve Ordinance No. 2006-12 to amend the FY 2005-06 Annual Operating Budget in the amount of$60,000, transferring funds from the 4B Fund to the General Fund for Park Division water consumption. A vote was taken and passed 7-0. Ii.E,P DBE OF PRPPIANCES 11=.& CAPTION A .'PRAYER BY COCCI AS CJTY C ER,AR 'ICLE;at,SECTION 13- r . City Secretary Carole Ehrlich read captions to Ordinances 2006-010, 2006-11 and 2006-12 into the official record. Minutes—February 28,2006 Wylie City Council Page 5 • Discuss,and give guidance,on the Storm Water Regulatory Update and Master Plan Proposal. (M.Sferra,Public Services Director) Keith Kennedy and Jack Tidwell representing the Department of Environment and Development for the North Central Texas Council of Governments discussed with Council and staff proposed requirements by TCEQ for Storm Water Permits and the federal and state requirements to obtain said permits. Also discussed were alternative programs that could be available for area studies for storm water runoff and maintenance to be possibly shared with the Army Corps of Engineers,Collin County and other area cities. ADJOURNMENT With no further business before Council, a motion was made by Mayor Pro Tem Hogue, seconded by Councilman Newsom to adjourn the meeting at 7:40 p.m. Consensus of Council was to adjourn. John Mondy,Mayor ATTEST: Carole Ehrlich,City Secretary Minutes—February 28,2006 Wylie City Council Page 6 Wylie City Council CI_ittt TY OF WYLIE AGENDA REPORT Meeting Date: March 14, 2006 Item Number: B Department: Planning (City Secretary's Use Only) Prepared By: Renae' 011ie Account Code: Date Prepared: 02/28/06 Budgeted Amount: Exhibits: One Subject Consider, and act upon, a Final Plat for Creekside Addition, Phase 5, subject property generally located north of McMillen Road, east of McCreary Road and west of Lewis Drive. Recommendation Motion to approve a Final Plat for Creekside Addition, Phase 5, located north of McMillen Road, east of McCreary Road and west of Lewis Drive. Discussion The property totals 8.683 acres and will create 32 residential lots. The subject property is part of the larger Creekside Estates Subdivision Planned Development (PD 99-32), which consists of Single-Family Residential of varying densities. The rezoning of this property from SF-3 to Planned Development District (PD 1999-32) for Single-Family uses was approved by City Council in 1999. The Development Plan approved with the PD also served as a Preliminary Plat for all phases of the development. To date, four phases of single-family residential lots have been approved, creating a total of 569 lots as well as recreational and environmental open spaces. The Final Plat substantially conforms to the approved Conditions of the Planned Development District and Development Plan, and complies with the Subdivision Regulations and all other pertinent code requirements of the City of Wylie. 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M b M.an Q s3 DALLAS TEXAS T3225 SUHe NO0 a.••nos m•w1 4 a eem,w t.W mid et me Ia.N le.,De.(e R4Nem d ad wNNN•Coma maw(a9aa.,mSoma MU el 1m..m.r w 02(2.)691-25 p(a21 ie,•a 52pbNM,m..•.In mod 4 DNw m.b t..ee Sr.r.Art•f mot ee coda,e4ee..16•..N MAN.Preen! Ia CONTACT:WY J.OEFRNN (2,•)dot-aN, my Cowreer qw RECORDED IN CAB. -PG. _____ We:Fea-nay.2006 Sheet 1 of 1 Joe.C05294 Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: March 14, 2006 Item Number: C Department: City Manager (City Secretary's Use Only) Prepared By: Mark B. Roath Account Code: Date Prepared: February 23, 2006 Budgeted Amount: Exhibits: One Subject Consider, and act upon, Ordinance No. 2006-13 extending until July 31, 2006, or until a new Franchise becomes effective, the franchise granted to ATMOS Energy Corporation, to own, operate and maintain a gas distribution system in the City of Wylie. Recommendation Motion to approve Ordinance No. 2006-13 extending until July 31, 2006, or until a new Franchise becomes effective, the franchise granted to ATMOS Energy Corporation. Discussion On March 10, 1981, the City granted a gas franchise to Lone Star Gas Company, which said franchise was later assigned to ATMOS Energy Corporation. The Lone Star Gas Company franchise was for a period of twenty- five years. Prior to expiration, the City Manager and City Attorney commenced negotiations with a representative of ATMOS Energy Corporation on a new gas franchise. This proposed Ordinance extends the current franchise, under the same terms and conditions, until July 31, 2006 or until a new franchise becomes effective, whichever occurs earlier. Approved By Initial Date Department Director City Manager MBR 03/07/06 Page 1 of 1 ORDINANCE NO. 2006-13 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS, EXTENDING UNTIL JULY 31, 2006, OR UNTIL A NEW FRANCHISE BECOMES EFFECTIVE, THE FRANCHISE GRANTED TO ATMOS ENERGY CORPORATION, TO OWN, OPERATE, AND MAINTAIN A GAS DISTRIBUTION SYSTEM IN THE CITY OF WYLIE; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on March 10, 1981, the City Council of the City of Wylie("City") granted a gas franchise to Lone Star Gas Company to own, operate, and maintain a gas distribution system in City; and, WHEREAS, Atmos Energy Corporation ("Atmos Energy") is the current holder of this gas Franchise in City which would have expired on March 10, 2006; WHEREAS,negotiations regarding renewal of the Franchise are still underway; and, WHEREAS, both parties agree that an extension of the current Franchise under the same terms and conditions until July 31, 2006, or until a new franchise becomes effective, whichever occurs first, is in their best interest; and, WHEREAS, City and Atmos Energy agree that the extension of this Franchise shall not be deemed a waiver by either party to exercise any right afforded by law or any defense. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, COLLIN COUNTY,TEXAS,THAT: SECTION 1. The City Council hereby agrees to extend the Franchise granted to Atmos Energy, under the same terms and conditions until July 31, 2006 or until a new franchise becomes effective,whichever occurs first. SECTION 2. City and Atmos Energy do not waive any claims or defenses that may exist currently or arise in the future as a result of this extension. SECTION 3. Should any word, sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be void or unconstitutional, the same shall not affect the validity of the remaining portions of said ordinance which shall remain in full force and effect. SECTION 4. All provisions of the Ordinances of the City of Wylie, Texas, in conflict with the provisions of this Ordinance, are hereby repealed, and all other provisions not in conflict with the provisions of this Ordinance shall remain in full force and effect. Ordinance No.2006-13 Atmos Energy Franchise Extension SECTION 5. This Ordinance shall take effect after its adoption in accordance with the City Charter. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE,COLLIN COUNTY,TEXAS,ON THIS THE 14th DAY OF MARCH,2006. JOHN MONDY,MAYOR ATTEST: CAROLE E. EHRLICH,CITY SECRETARY Date of publication in The Wylie News—March 22, 2006 Ordinance No.2006-13 Atmos Energy Franchise Extension Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: March 14, 2006 Item Number: D Department: Finance (City Secretary's Use Only) Prepared By: Larry Williamson Account Code: Date Prepared: February 27, 2006 Budgeted Amount: Exhibits: One Subject Consider, and act upon, Resolution No. 2006-09(R) amending Section IV (D), entitled Reporting of the City's Financial Management Policies. Recommendation Motion to approve Resolution No. 2006-09(R) amending Section IV (D) of the City's Financial Management Policies. Discussion New Language: REPORTING — Periodic budget reports will be prepared to enable the department managers to manage their budgets and to enable the Budget Officer to monitor and control the budget as approved by the City Council. Summary budget reports will be presented to the City Council on the first formal City Council meeting each month. Such reports will include current year revenue and expenditure projections. Approved By Initial Date Department Director City Manager ,(i2 -3h 64 Page 1 of 1 RESOLUTION NO 2006-09(R) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS, AMENDING THE CURRENT FINANCIAL MANAGEMENT POLICIES ADOPTED ON NOVEMBER 17, 2005. WHEREAS,the Financial Management Policies requires the city to present budget reports to City Council on a quarterly basis; and WHEREAS,the City Charter requires the city to present budget reports to City Council on a monthly basis; and WHEREAS,the City Council desires to update its Financial Management Policies to reflect the City Charter requirements of monthly budget reports. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WYLIE: Section 1: That the city's Financial Management Policies, Section IV (D) is thereby amended to read: (D) Reporting- Periodic budget reports will be prepared to enable the department managers to manage their budgets and to enable the Budget Officer to monitor and control the budget as approved by the City Council. Summary budget reports will be presented to the City Council on the first formal Council meeting each month. Such reports will include current year revenue and expenditure projections. DULY PASSED AND ADOPTED by the City Council of the City of Wylie, Texas this 14th day of March, 2006. John Mondy, Mayor ATTEST: Carole Ehrlich, City Secretary Resolution No.2006-09(R) Amendment of Financial Policy Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: March 14, 2006 Item Number: E Department: Engineering (City Secretary's Use Only) Prepared By: Chris Hoisted Account Code: 613-5723 Date Prepared: 3/06/06 Budgeted Amount: $ 2,759,000.00 Exhibits: Two Subject Consider, and act upon, Change Order No. 1 decreasing the Landmark Structures Contract by $21,740.00, for the Creekside Elevated Storage Tank. Recommendation Motion to approve Change Order No. 1 decreasing the Landmark Structures Contract by $21,740.00, for the Creekside Elevated Storage Tank. t)iscussion The Creekside Elevated Storage Tank was bid with two wireless communication antenna rings on the pedestal of the tank. The exact elevation for the antenna rings is not know at this time, therefore, it is recommended that they be deleted from Landmark's contract. Provisions are made for the future installation of the rings by adding an interior rigging rail and eight cable rings for hanging future cables. The profile of the tank is also being slightly modified, as recommended by Landmark, to provide easier tank bowl construction and a more visually pleasing profile. The proposed change order reduces the contract amount by $21,740.00. Approved By Initial Date Department Director c/U- 3/i l o(o City Manager I2A' .3h/m Page 1 of 1 LANDMARK STRUCTURES I, LP LETTER OF TRANSMITTAL 1665 Harmon Road Fort Worth,Texas 76177 (817)439-8888 Date Job.No. Fax(817)439-9001 2/2/2006 1133 Attn: TO: City of Wylie -City Engineer Chris Holstead, P.E Re: 949 Hensley Lane Creekside 2 Million Gallon Elevated Storage Tank Wylie, TX 75098 City of Wylie, Texas WE ARE SENDING YOU THE ATTACHED ITEMS: Copies Spec Section Article No. Submittal No. Description 3 Change Order#1 - Executed by Landmark THESE ARE BEING TRANSMITTED: X Information for Record O&M Data Information for Engineer's Approval Return 2 Copies CERTIFICATION: This information has been reviewed and determined to be in compliance with the contract documents including plans and specifications as modified by addenda, change orders and field orders. Any exceptions to the contract documents are noted below. EXCEPTIONS/REMARKS: One original copy of this change order was sent to Mr.Joe Carter, P.E. with Birkhoff, Hendricks &Conway. Signed Chris Amarante CITY OF WYLIE, TEXAS CREEKSIDE 2 MG ELEVATED STORAGE TANK CHANGE ORDER NO. 1 A. INTENT OF CHANGE ORDER The intent of this change order is to modify the provisions of the contract entered into between the City of Wylie, Texas and Landmark Structures L.P., 1665 Harmon Road, Fort Worth, Texas 76177, for construction of the Creekside 2MG Elevated Storage Tank, dated January 10, 2006. B. DESCRIPTION OF CHANGE 1. Revise tank geometry to include a forty-five (45) foot head range and a transition knuckle at the top of the tank. 2. Delete interior catwalks currently shown on Sheet No. 4 of the plans. 3. Delete cable feed through plates and horizontal cable brackets, paint taper tie holes bright orange or red to indicate locations the column may be penetrated for future antenna cables. 4. Delete two (2) antenna rings currently shown on Sheet No. 4 of the plans. 5. Revise the wireless communication conduit pit detail to provide an opening 36" x 42" as shown on the revised detail to include a 4" PVC drain to the sump pump and a 45° bend with a cap on the end of the (5) 6"PVC conduits. 6. Add an interior rigging rail to facilitate future installation of wireless antennas along with antenna eight(8) cable rings for hanging future cables spaced approximately 45° apart. 7. Delete 4" sanitary sewer currently described on Sheet No. 3 of the plans. C. EFFECT OF CHANGE ON CONTRACT AMOUNT This change order will have the following effect on the cost of this project: Item Previous Quantity Revised Amount No. Description Quantity This C.O. Quantity Unit Unit Price of Change 1-A _Revise tank geometry with knuckle 0 1 1 L.S. $0.00 $0.00 1-B _Delete Interior Catwalks 2 (2) 0 Ea. $9,650.00 ($19,300.00) 1-C .Delete Cable Feed Plates&Horz.Brackets 1 (1) 0 Ea. $2,440.00 ($2,440.00) 1-D _Delete Antenna Rings 2 (2) 0 Ea. $3,000.00 ($6,000.00) 1-E Revise Wireless Conduit Pit Detail 4 0 4 Ea. $0.00 $0.00 1-F Add Int.Rigging Rail and Cable Rings 0 1 1 L.S. $6,500.00 $6,500.00 1-G Delete 4" Sanitary Sewer Service 1 (1) 0 L.S. $500.00 ($500.00) Total: ($21,740.00) Original Contract Amount: $ 2,759,000.00 Change Order No. 1 $ (21,740.00) Revised Contract Amount: $ 2,737,260.00 c:\documents and settings\camarante\local settings temporary Internet files\o1k133\co-1(3).doc (2/2/2006) Page 1 of 2 City of Wylie Creekside 2 MG Elevated Storage Tank Change Order No. 1 D. EFFECT OF CHANGE ON CONTRACT TIME The work required under this change order will add no calendar days to this project. Original Contract Time 400 calendar days Change Order No. 1 0 calendar days Revised Contract Time: 400 calendar days The completion date for the project will be revised as follows: Notice To Proceed Issued February 6, 2006 400 Calendar Days Bid March 13,2007 (Original Completion Date) Change Order No. 1 (0 Calendar Days) March 13, 2007 (Change Order# 1 Completion Date) E. AGREEMENT By the signatures below of duly authorized agents, the City of Wylie, Texas and Landmark Structures, L.P., do hereby agree to append this Change Order No. 1 to the original contract between themselves, dated January 10,2006. City of Wylie Landmar Structures,L.P. Owner ontractor By: By: (signature) / (si nature) Name: Name: G�i>sn'G/.ah 0Ci (please print) (pleaseplea print) Title: Title: hOecJ /"`A�'��1`-� (please print) (please print) Date: Date: '/e Attest: Attest: c:\documents and settings\camarante\local settings\temporary Internet files\oIkI33\co-1(3).doc (2/2/2006) Page 2 of 2 Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: March 14, 2006 Item Number: 1 Department: Planning (City Secretary's Use Only) Prepared By: Renae' 011ie Account Code: Date Prepared: 03/01/06 Budgeted Amount: Exhibits: One Subject Conduct a Public Hearing, and act upon, continuing the Public Hearing until the March 28, 2006 Council meeting to act upon a change in zoning from Agricultural (AG) District to Community Retail (CR) District for retail development, generally located at 400 Alanis Drive, being south of Alanis Drive and west of S. Ballard Avenue. Recommendation Motion to continue the Public Hearing until the March 28, 2006 Council meeting to act on a change in zoning from Agricultural (AG) District to Community Retail (CR) District for retail development, generally located at 400 Alanis Drive, being south of Alanis Drive and west of S. Ballard Avenue. Discussion Owner: Frances D. Campbell Item was tabled to the March 7, 2006 meeting to allow time to re-notify with correct Legal Description. However, because publication and notification of the requested rezoning has been completed in accordance with State Law, some action is required by the Council at the current meeting. The Council should convene the hearing and allow any citizen comment, and then continue the Public Hearing until March 28, 2006. Approved By Initial Pate Department Director 3 g I D( City Manager /1114 3�g/64 Page 1 of 1 • I II I T1I rS one rook rive D .._. _.._ ._._.._. _.. 3f I FlaI one way i' i N i nIIH1I I f i i I 0 -� .._._. 1 i 1 fi ) ..". - Meadow Lone Estot I I I .111111111i es Lane i i ! ! ! ! `„"I,1"■m es win. "a" NI i O _ _ _ i i ; < z _ _ _ a o - o 0 G� O o - 0 (D (D - n T O Z i 1 Ng ________. - ! I L.._.._ J O > I ou ollord Avenue 5outti Bollard .._.._.. / V _.._,. CD ! ! IMI ! I I I j r i r 1 [ iit ; I 3. ! j i 1 I Smdo Peck 0j _.,_..J L.._.,_.. i I•� I I' A en Lane C) i i..1 Brpokrldge Dfiv@I j I Vail Court �... odd Cr1ve 1 i 1 _.._ o.,,,,,,, 1 Middy Creek Drive i I y 1 Breckenridge i I • IllI QQ�lyI1 �rwe \ \ r.. ..^.. ..�. VTi 14 I Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: March 14, 2006 Item Number: 2 Department: Planning (City Secretary's Use Only) Prepared By: Renae' 011ie Account Code: Date Prepared: 03/01/06 Budgeted Amount: Exhibits: Seven Subject Conduct a Public Hearing, and act upon, Ordinance No. 2006-14 amending the zoning from Planned Development (PD 2002-52) to Planned Development with Special Use Permit to allow for a Day Care Facility, generally located at the northeast corner of Collins Boulevard and FM 544. Recommendation Motion to approve Ordinance No. 2006-14 amending the zoning from Planned Development 2002-52 to Planned Development with Special Use Permit to allow for a Day Care Facility, generally located at the northeast corner of Collins Boulevard and FM 544. Discussion The subject property is located at the northeast corner of Collins Boulevard and FM 544, and more specifically as lots 1 & 2, Block E in the Lake Trails of Bozman Farm Addition and is a Planned Development District. The request proposes to designate lots 1 and 2 of Block E as a Day Care Site and totals 2.02 acres. Article 5 Use Regulations Section 5.2 Listed Uses of the Zoning Ordinance requires that Day Care uses within Single-Family Residential Districts obtain a Specific Use Permit. In December 2002 at the request of the applicant, revisions were submitted to amend certain conditions of the PD. The applicant was requesting to amend the Single-Family Residential requirements to eliminate the front garage offset and to allow Day Care uses within single-family residential development without a Specific Use Permit. However, City Council voted in favor of maintaining the requirement of the Zoning Ordinance permitting Day Care Facilities by Specific Use Permit only. The Final Plat was filed on March 25, 2004 in Deed Records of Collin County, Document No. 2004-0041078. Notification/Responses: Thirteen(13) notifications mailed, with one (1) written response returned favoring this request. Approved By Initial ate Department Director 'V '� d b City Manager /MT 1 0L Page 1 of 1 ORDINANCE NO. 2006-14 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF WYLIE, AS HERETOFORE AMENDED, SO AS TO CHANGE THE ZONING ON THE HEREINAFTER DESCRIBED PROPERTY, ZONING CASE NUMBER 2006-03, TO PLANNED DEVELOPMENT (PD-2002-52) DISTRICT WITH A SPECIAL USE PERMIT (SUP) ALLOWING FOR A DAY CARE FACILITY; PROVIDING FOR A PENALTY FOR THE VIOLATION OF THIS ORDINANCE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission and the governing body of the City of Wylie, Texas, in compliance with the laws of the State of Texas with reference to the amendment of the Comprehensive Zoning Ordinance, have given the requisite notices by publication and otherwise, and after holding due hearings and affording a full and fair hearing to all property owners generally and to owners of the affected property, the governing body of the City is of the opinion and finds that the Comprehensive Zoning Ordinance and Map should be amended; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE,TEXAS: SECTION 1. That the Comprehensive Zoning Ordinance of the City of Wylie, Texas,be, and the same is hereby, amended by amending the Zoning Map of the City of Wylie, to give the hereinafter described property a new zoning classification of Planned Development District (PD 2002-52) with a Specific Use Permit (SUP) allowing for Day Care Facilities within Residential zoning Districts, said property being described in Exhibit "A", Exhibit "B" attached hereto and made a part hereof for all purposes. SECTION 2. That all ordinances of the City in conflict with the provisions of this ordinance be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 3. That the above described property shall be used only in the manner and for the purposes provided for in the Comprehensive Zoning Ordinance of the City, as amended herein by the granting of this zoning classification. SECTION 4. Any person, firm or corporation violating any of the provisions of this ordinance or the Comprehensive Zoning Ordinance, as amended hereby, commits an unlawful act and shall be subject to the general penalty provisions of Section 1.5 of the Zoning Ordinance, as the same now exists or is hereafter amended. Ordinance No.2006-14 Special Use Permit Zoning Case 2006-03 SECTION 5. Should any paragraph, sentence, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional, and shall not affect the validity of the Comprehensive Zoning Ordinance as a whole. SECTION 6. This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. SECTION 7. The repeal of any ordinance, or parts thereof, by the enactment of this Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as effecting any rights of the municipality under any section or provisions of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas,this 14th day of March, 2006. John Mondy, Mayor ATTEST TO: Carole Ehrlich, City Secretary Date of publication in The Wylie News—March 22, 2006 Ordinance No.2006-14 Special Use Permit Zoning Case 2006-03 Exhibit"A" Legal Description Zone Case#2006-03 BEING situated in the City of Wylie, Collin County, Texas at the northeast corner of Collins Boulevard and FM 544, and being 1151 and 1155 Collins Boulevard, and also being described as Lot 1 and Lot 2 of Block E in the Lake Trails of Bozman Farm Addition. Ordinance No.2006-14 Special Use Permit Zoning Case 2006-03 IN& EXHIBIT "B" DAY CARE SPECIAL USE PERMIT 1 • :•,.. ,--. .i. ' x ...,1; 4. . • ' ' , f: I t :3 •• ; ••••- f, 'NI• ,e- P• ' .4 ' ,•1 . 71 . .!,• i fr :..,' ....1 0 ':...) ..... f• . . ., iX 'SI l'af: • Il...1 \ ' : -7- - .., . ... , 4s • ,-. C6'89`. . \.> 's - 4 , . . •:-.. 3. e.,e.c.00 tv 3' \ \ 'IL' •?...-- --,:0 ...., ( •V N ,. *-;\ • .."'l 1 • ,... 1 2 1 . , • — \• •. •••••. i - .., 7 , .4 ... . i ., • \ :•• .. , - ...., % _. ......i 1 ---, :▪ ...... - , .,;,4. , • .;,:.,.7. D ....-.,, - i - •-, i N i:.........‘ "":7›, •• :::, -"•!...6 Ad Ji ': ...,, 't,. -,C2-1•S'f... -,e.• -, ,r-• . ......,-.4 it "i022. '5 ^14 Ordinance No.2006-14 Special Use Permit Zoning Case 2006-03 I 1 Y cr ranc rive Y , 41111111 o 0 _.. �-s r1@SiT11jt DfNe 01111111 _rive ,, _ \ i' d\ rn%I.._ . .._. _.._.. Imuuuoila ron \\.._ . I ... sli\.tr==',1 ...*Illwieli-0.• 41/4, it.._.._.._.. 1 in i Subject Ct Property t ililluab t\_ •_........ 7 __ 66 Drive o r �.. , ' � a�,ed' 11111( i ...4* 41 ,._.._. Wire _ l i ou- _ -*111 I ew rail : fle ..J i El _ ._.._ .i..-- ---- ._..�.:= G Wheelis Rood �` _ _ - _.. i i Fli 7-----", - / L..i I �` L.._.._.._.._.. _.._.._ ._. _L._.. iII F I 1 ' I i I I LOCATION MAP ZONING CASE #2006-03 , Il Iron Horse Street i 111.11111 Ill. ‘A ( � ®, ns ircle 98 ; /1 � � P CD lbsoke .. ,0a , o �, . %tdf.- c; LrntkS D u.l-S i Ci e-'. // r C, Li inir n1 =2� 1 ZONING CASE #20Q6-03 NOTIFICATION REPORT APPLICANT: Phil Clegg of LT Lake Trails 544, LP APPLICATION FILE #2006-03 1771 International Parkway, # 127 Richardson, Tx. 75081 # B LK/A BST LOT/TRACT TAX 1.D. # PROPERTY OWNER NAME ADDRESS Appirant-Phil Clegg 1771 International Pkwy#1 7 LT Lake Trails, LP Richardson,Texas 75081 1 I 1771 International Pkwy#127 Lake Trails Bozman Fms Richardson, 75081 2 Blk E I Lot 1 I R-8449-00E-0010-1 LT Lake Trails, LP 1 Richardson, ardso ti Texas Pkwy 81 Lake Trails Bozman Fms Richardson, Texas 75081 #127 3 Blk E I Lot 2 I R-8449-00E-0020-1 IT Lake Trails, LP #127 Lake Trails Bozman Fms Lake Trails of Bozman Farm HOA 1771 International Pkwy 4 BIK X I Lot 1 I R-8449-OOX-0010-1 c/o LT Lakeson, Texas 75081 Lake Trails of B TBozman Farm HOA 1rails 544, LP 771 Iad n ternational Pkwy#127 Lake Trails Bozman Fms 5 Blk X I Lot 6 I R-8449-00X-0060-1 c/o LT Lake Trails 544, LP Richardson, Texas 75081 Lake Trails Bozman Fms Lake Trails of Bozman Farm HOA 1771 International Pkwy#127 6 Bik X Lot 7 R-8449-OOX-0070-1 c/o LT Lake Trails 544, LP Richardson, Texas 75081 Bozman Farms Ph 1 Bozman Farm Estates 1 A HOA 5001 LBJ Freeway, Suite 830 7 Blk M Lot 1 R-8460-OOM-0010-1 c/o Bo�zman Farmstates tan Farm o Ament HOALtd 5001�LBJ Freeway,llas,Texas Suite 830 5244 Bozman Farms Ph 1 8 Blk M Lot 2 R-8460-00M-0020-1 c/o Bozman Farm Development Ltd 17855Dallas,s,Texas s775 Site 200 Bozman Farms Ph 175287 9 Blk E Lot 24 R-8460-00E-0240-1 RH of Texas, LP 17855 Dallas Dallas,Texas Park y,Suite 200 Bozman Farms Ph 1 Dallas,Texas 75287 10 Blk E 25 R-8460-00E-0250-1 RH of Texas, LP 17855 Dallas Parkway.Suite 200 Bozman Farms Ph 1 Dallas,Texas 75287 11 Blk E 26 R-8460-00E-0260-1 RH of Texas, LP 17855 Dallas Parkway,Suite 200 Bozman Farms Ph 1 Dallas,Texas 75287 of Texas, LP Bozman Farms Ph 1 12 Blk E 27 R-8460-00E-0270-1 Bozman Farm Estates 1 A HOA 5001 LBJ Freeway, Suite 830 s 13 Blk E 28 R-8460-00E-0280-1 c/o Bozman Farm Development Ltd 1 was�e a e244 S. Drive 14 Abst 23 Tract 19 R-6023-000-0190-1 Collins Estate, LLC Rockwall,Texas 75087 15 16 17 18 PUBLIC COMMENT FORM (Please type or use black ink) Department of Planning 2000 Highway 78 North Wylie,Texas 75098 I am FOR the requested zoning as explained on the attached public notice for Zoning Case #2006-03. I am AGAINST the requested zoning as explained on the attached public notice for Zoning Case#2006-03. Date,Location&Time of Planning&Zoning Commission meeting: Tuesday,February 21,2006,7:00 pm Municipal Complex,2000 Highway 78 North,Wylie,Texas Date,Location&Time of City Council meeting: Tuesday,March 14,2006,6:00 pin Municipal Complex,2000 Highway 78 North,Wylie,Texas Name: bYA:N k I i to to L (p a se print) Address: l 77! hi 1 i _Pie-v_. 1 7J1 Signature: Date: 214 G') COMMENTS: / 0 IPA) /etrizal.! ;.� u��-, -4}` /t f 1.il� Gt�4 L'��$1.�� ;.�+ 71.),., [si r k..;"4.,.. 1-13e_ eel a1.�1.t 1-1/4, ; 1447 11717 Ay _, .s1 4L' =. 4, 4 .4 f 4 Ceit _40-A lAJ f;c . yL��A'5.) a 3/os/e. ,Y i,.s )� 1 ,.� T `S j��. Re, tr4ot.4 /cl.✓' . Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: March 14, 2006 Item Number: 3 Department: Parks and Recreation (City Secretary's Use Only) Prepared By: Robert Diaz Account Code: Date Prepared: February 28, 2006 Budgeted Amount: Exhibits: Four Subject Conduct a Public Hearing, and act upon, Ordinance No. 2006-15 adopting the Standards of Care for Youth Programs. Recommendation Motion to approve Ordinance No. 2006-15 adopting the Standards of Care for Youth Programs. Discussion Since the inception of the summer youth programs in 2000, the Standards of Care have been reviewed yearly and adopted as an ordinance in order to comply with Texas Senate Bill 212, Human Resource Code, Section 42.041 (b)(14). Texas Senate Bill 212, Human Resource Code, Section 42.041 (b)(14) states the following: Section 42.041 (b) (14) Elementary age (ages 5-13) recreation programs operated by a municipality; provided the governing body of the municipality annually adopts standards of care by ordinance after a public hearing for such programs and that such standards are provided to the parents of each program participant. Such ordinances shall include at a minimum, staff ratios, minimum staff qualification, minimum facility and safety standards, and mechanisms for monitoring and enforcing the adopted local standards, further, provided that parents be informed the program is not licensed by the state and the program not be advertised as a childcare facility. The above legislation determines that the City will become exempt from any licensing of the Texas Department of Protective and Regulatory Services if the standards of care establishes the following: 1. Staff Ratios 2. Minimum Staff Requirements 3. Minimum facility, health, and safety standards 4. Monitoring and enforcement mechanisms for adopted local standards Page 1 of 2 Page 2 of 2 5. A process to notify parents that the program is not licensed by the State 6. A policy that the program will not be advertised as a childcare facility Staff has made no changes to this ordinance from the 2005 version. This ordinance and Standards of Care provides the necessary guidelines for the regulation of the summer youth program, the Wylie Wave, as legislated by Texas Senate Bill 212, Human Resource Code, Section 42.041 (b)(14). Approved By Initial Date Department Director 1115 3'4'O* City Manager MfiR 3/>7©Ea ORDINANCE NO.2006-15 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, ADOPTING STANDARDS OF CARE FOR THE CITY OF WYLIE YOUTH PROGRAMS; PROVIDING FOR SEVERABILITY, SAVINGS AND REPEALING CLAUSES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Wylie will be establishing a history of providing youth programs that contribute to the overall well being of Wylie youth and families; and WHEREAS, a hearing before the City Council was set for March 14, such date being at least 7 days after publication of the notice of such public hearing; said notice appearing in the Wylie News on March 1 and March 8, 2006; and WHEREAS, the intent of the City is to adopt Standards of Care for its youth programs that fulfill the requirements of Senate Bill 212 as it amends Section 42.041 of the Texas Human Resource Code. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE,TEXAS: Section 1. The Wylie Youth Programs' Standards of Care as detailed in Attachment "A" are hereby adopted. Section 2. Severability. Should any section, subsection, sentence, clause or phrase of this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this Ordinance shall remain in full force and effect. Wylie hereby declares that it would have passed this Ordinance, and each section, subsection, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional or invalid. Section 3. Repealing/Savings Clause. All provisions of any ordinance in conflict with this Ordinance are hereby repealed to the extent they are in conflict; but such repeal shall not abate any pending prosecution for violation of the repealed ordinance, nor shall the repeal prevent a prosecution from being commenced for any violation if occurring prior to the repeal of the ordinance. Any remaining portions of said ordinances shall remain in full force and effect. Section 6. Effective Date. This Ordinance shall become effective immediately upon its adoption and publication as provided as provided by law and the City Charter. Ordinance No.2006-15 Standards of Care for Wylie Youth Programs DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE,TEXAS on this 14°aday of March, 2006. John Mondy,Mayor ATTEST TO: Carole Ehrlich,City Secretary Date of publication in The Wylie News-March 1 and 8,2006 Ordinance No.2006-15 Standards of Care for Wylie Youth Programs STANDARDS OF CARE WYLIE YOUTH PROGRAMS The following Standards of Care will be adopted by the City Council of the City of Wylie, Texas in order to comply with Senate Bill 212 as approved by the Texas Legislature during the 74th legislative session. The Standards of Care are intended to be minimum standards by which the City of Wylie Parks and Recreation Department will operate the City's Youth Programs. The programs operated by the City are recreational in nature and are not day care programs licensed by the State of Texas. GENERAL ADMINISTRATION. 1. Organization A. The governing body of the City of Wylie Youth Programs is the Wylie City Council. B. Implementation of the Youth Programs Standards of Care is the responsibility of the Parks and Recreation Department Managing Director and Departmental employees. C. Youth Programs ("Program") to which these Standards of Care will apply is the Wylie Wave Summer Youth Program. D. Each Youth Program site will have available for public and staff review a current copy of the Standards of Care. E. Parents of participants will be provided a current copy of the Standards of Care during the registration process. F. Criminal background checks will be conducted on prospective Youth Program employees. If results of that criminal check indicate that an applicant has been convicted of any of the following offenses, he or she will not be considered for employment: (1) a felony or a misdemeanor classified as an offense against a person or family; (2) a felony or misdemeanor classified as public indecency; (3) a felony or misdemeanor violation of any law intended to control the possession or distribution of any controlled substance; (4) any offense involving moral turpitude; 1 (5) a felony or misdemeanor classified as DWI (driving while intoxicated) or DUI(driving under the influence); (6) any offense that would potentially put youth participants or the City of Wylie at risk. 2. Definitions A. City: City of Wylie B. City Council: City Council of the City of Wylie C. Department: Parks and Recreation Department of the City of Wylie D. Youth Programs or Program: City of Wylie Youth Programs consisting of the Wylie Wave Summer Youth Program and future youth programs. E. Program Manual: Notebook of policies, procedures, required forms, and organizational and programming information relevant to Wylie Youth Programs. F. Director: City of Wylie Public Services Director or his or her designee. G. Assistant Superintendent: City of Wylie Parks and Recreation Department full-time employee who has been assigned administrative oversight responsibility for the City's Youth Programs. H. Program Coordinator: City of Wylie Parks and Recreation Department full-time Recreation Supervisor has been assigned administrative responsibility for the Wylie Wave Summer Youth Program. I. Site Supervisor, Assistant Site Supervisor and Program Leader: City of Wylie Parks and Recreation Department seasonal part-time employees who have been assigned responsibility to implement the City's Youth Programs. J. Program Site: Area and facilities where Wylie Youth Programs are held consisting of a Wylie Independent School District (W.I.S.D.) facility (i.e. McMillan Jr. High)or City of Wylie properties. K. Participant: A youth whose parent(s) have completed all required registration procedures and who is determined to be eligible for a Wylie Youth Program. 2 L. Parent(s)/Legal Guardian: This term will be used to represent one or both parent(s) or adults who have legal custody and authority to enroll their child(ren) in the Wylie Youth Programs. M. Employee(s): Term used to describe people who have been hired to work for the City of Wylie and have been assigned responsibility for managing, administering, or implementing some portions of the Wylie Youth Programs. 3. Inspections/Monitoring/Enforcement A. A monthly inspection report will be initiated by the Site Supervisor of each Program to confirm the Standards of Care are being adhered to. (1) Inspection reports will be sent to the Assistant Superintendent for review and kept on record for at least two years. (2) The Assistant Superintendent will review the report and establish deadlines and criteria for compliance with the Standards of Care. B. The Assistant Superintendent will make visual inspections of the Program based on the following schedule: The Wylie Summer Youth Program will be inspected twice during its summer schedule. C. Complaints regarding enforcement of the Standards of Care will be directed to the Coordinator. The Coordinator will be responsible to take the necessary steps to resolve the problems. The Assistant Superintendent will record complaints regarding enforcement of the Standards of Care and their resolution. Serious complaints regarding enforcement of the Standards of Care will be addressed by the Director of Public Services (or their designee) and the complaint and the resolution will be noted. D. The Assistant Superintendent will make an annual report to the City Council on the overall status of the Youth Programs and their operation relative to compliance with the adopted Standards of Care. 3 4. Enrollment A. Before a child can be enrolled, a parent/legal guardian must sign registration forms that contain the child's: (1) name, address,home telephone number; (2) name and address of parents and telephone number during Program hours; (3) the names and telephone numbers of people to whom the child can be released; (4) a statement of the child's special issues or needs; (5) emergency medical authorization; (6) proof of residency when appropriate; and (7) a liability waiver. 5. Suspected Abuse Program employees will report suspected child abuse or neglect in accordance with the Texas Family Code. In the case where a City employee is involved in an incident with a child that could be construed as child abuse, the incident must be reported immediately to the Recreation Supervisor. The Superintendent will immediately notify the Police Department and any other agency as may be appropriate. Texas state law requires the staff of these youth programs to report any suspected abuse or neglect of a child to the Texas Department of Protective and Regulatory Services or a law enforcement agency. Failure to report suspected abuse is punishable by fines up to $1,000 and/or confinement up to 180 days. Confidential reports maybe made by calling 1-800-252-5400. • STAFFING-RESPONSIBILITIES AND TRAINING 6. Youth Program Coordinator("Coordinator") Qualifications A. Coordinators will be full-time, professional employees of the Wylie Parks and Recreation Department and will be required to have all Program Leader qualifications as outlined in Section 7 of this document. B. Coordinators must be at least 21 years old. C. Coordinators must have a bachelor's degree from an accredited college or university. Acceptable degrees include: (1) Recreation Administration or General Recreation; (2) Physical Education; or (3) Any other comparable degree plan that would lend itself to working in a public recreation environment. D. Coordinators must have two years experience planning and implementing recreational activities. E. Coordinators must pass a background investigation including testing for illegal substances. F. Coordinators must have successfully completed a course in first aid and Cardio Pulmonary Resuscitation(CPR)based on either American Heart Association or American Red Cross standards. G. Coordinator must be able to furnish proof of a clear tuberculosis test within 12 months prior to their employment date. 7. Coordinator's Responsibilities A. Coordinators are responsible to recommend for hire, supervise, and evaluate the Site Supervisor, Asst. Site Supervisors and Program Leaders. B. Coordinators are responsible to plan, implement, and evaluate programs. 5 8. Youth Program Site Supervisor/Assistant Site Supervisor/Program Leader("Leader") Qualifications: A. Leaders will be part-time or temporary employees of the Parks and Recreation Department. B. Leaders working with children must be age 16 or older; however, each site will have at least one employee 18 years old or older present at all times. C. Leaders should be able to consistently exhibit competency, good judgment, and self-control when working with children. D. Leaders must relate to children, parents, co-workers, supervisors, and the general public with courtesy, respect, tolerance, and patience. E. Leaders must have successfully completed a course in first aid and CPR based on either American Heart Association or American Red Cross standards. An exception can be made for no more than one staff person at each site, and that person shall successfully complete a first aid and CPR course within four weeks of starting work. F. Leaders must pass a background investigation including testing for illegal substances. G. Leaders must be able to furnish proof of a clear tuberculosis test within 12 months prior to their employment date. 9. Leader Responsibilities A. The Site Supervisor is responsible to administer the Programs' daily operations in compliance with the adopted Standards of Care. B. Leaders will be responsible to provide participants with an environment in which they can feel safe, can enjoy wholesome recreation activities, and can participate in appropriate social opportunities with their peers. C. Leaders will be responsible to know and follow all City, Departmental, and Program standards, policies, and procedures that apply to Wylie Youth Programs. D. Leaders must ensure that participants are released only to a parent or an adult designated by the parent. All Program sites will have a copy of the Department approved plan to verify the identity of a person authorized to pick up a participant if that person is not known to the Leader. 6 10. Training/Orientation A. The Department is responsible for providing training and orientation to Program employees in working with children and for specific job responsibilities. Coordinators will provide each Leader with a Program manual specific to each Youth Program. B. Program employees must be familiar with the Standards of Care for Youth Program operation as adopted by the City Council. C. Program employees must be familiar with the Program's policies including discipline, guidance, and release of participants as outlined in the Program Manual. D. Program employees.will be trained in appropriate procedures to handle emergencies. E. Program employees will be trained in areas including City, Departmental, and Program policies and procedures, provision of recreation activities, safety issues, child psychology, and organization. F. Program employees will be required to sign an acknowledgement that they received the required training. OPERATIONS 11. Staff-Participant Ratio A. In a Wylie Youth Program, the standard ratio of participants to Leaders will be 15 to 1. In the event a Leader is unable to report to the Program site, a replacement will be assigned. B. Each participant shall have a Program employee who is responsible for him or her and who is aware of the participant's habits, interests, and any special issues as identified by the participant's parent/legal guardian during the registration process. 12. Discipline A. Program employees will implement discipline and guidance in a consistent manner based on the best interests of Program participants. B. There must be no cruel or harsh punishment or treatment. 7 C. Program employees may use brief, supervised separation from the group if necessary. D. As necessary, Program employees will initiate discipline reports to the parent/legal guardian(s) of participants. Parent/legal guardian(s) will be asked to sign discipline reports to indicate they have been advised about specific problems or incidents. E. A sufficient number and/or severe nature of discipline reports as detailed in the Program Manual may result in a participant being suspended from the Program. F. In instances where there is a danger to participants or staff, offending participants will be removed from the Program site as soon as possible. 13. Programming • A. Program employees will attempt to provide activities for each group according to the participants' ages, interests, and abilities. The activities must be appropriate to participants' health, safety, and well being. The activities also must be flexible and promote the participants' emotional, social, and mental growth. B. Program employees will attempt to provide that indoor and outdoor time periods include: (1) alternating active and passive activities; (2) opportunity for individual and group activities; and (3) outdoor time each day weather permits. C. Program employees will be attentive and considerate of the participants' safety on field trips and during any transportation provided by the Program. (1) During trips, Program employees supervising participants must have immediate access to emergency medical forms and emergency contact information for each participant. (2) Program employees must have a written list of the participants in the group and must check the roll frequently. (3) Program employees must have first aid supplies and a guide to first aid and emergency care available on field trips. 8 14. Communication A. Each Program site will have a pager/cell phone to allow the site to be contacted by City personnel, and each site will have access to a telephone for use in contacting the City personnel or making emergency calls. B. The Program Site Supervisor will post the following telephone numbers adjacent to a telephone accessible to all Program employees at each site: (1) Wylie emergency medical services and police department. (2) Numbers at which parents/staff may be reached; and (3) The telephone number for the site itself. 15. Transportation A. Before a participant may be transported to and from city sponsored activities, a transportation form, completed by the parent/legal guardian of the participant must be filed with the Program Site Supervisor. B. First aid supplies and a first aid and emergency care guide will be available in all Program vehicles that transport children. C. All Program vehicles used for transporting participants must have available a 6-BC portable fire extinguisher which will be installed in the passenger compartment of the vehicle and must be accessible to the adult occupants. 9 FACILITY STANDARDS 16. Safety A. Program employees will inspect Program sites daily to detect sanitation and safety concerns that might affect the health and safety of the participants. A daily inspection report will be completed by Program employees and kept on file by the Coordinator. B. Buildings, grounds, and equipment on the Program site will be inspected, cleaned, repaired, and maintained to protect the health of the participants. C. Program equipment and supplies must be safe for the participants'use. D. Program employees must have first aid supplies and a first aid and emergency care guide readily available to staff at each site, during transportation to an off-site activity, and for the duration of any off-site activity. E. Program air conditioners, electric fans, and heaters must be mounted out of participants' reach or have safeguards that keep participants from being injured. F. Program porches and platforms more than 30 inches above the ground must be equipped with railing participants can reach. G. All swing seats at Program sites must be constructed of durable, lightweight, relatively pliable material. 17. Fire A. In case of fire, danger of fire, explosion, or other emergency, Program employees' first priority is to evacuate the participants to a designated safe area. B. The Program site will have an annual fire inspection by the local Fire Marshall, and the resulting report will detail any safety concerns observed. The report will be forwarded to the Assistant Superintendent who will review and establish deadlines and criteria for compliance. Information from this report will be included in the Assistant Superintendent's annual report to the Council. C. Each Program site must have at least one fire extinguisher approved by the Fire Marshal readily available to all Program employees. 10 D. Fire drills will be initiated at Program sites based on the following schedule: (1) Wylie Wave Summer Youth Program: A fire drill twice during the session. 18. Health A. Illness or Injury (1) A participant who is considered to be a health or safety concern to other participants or employees will not be admitted to the Program. (2) Illnesses and injuries will be handled in a manner to protect the health of all participants and employees. (3) Program employees will follow plans to provide emergency care for participants with symptoms of an acute illness or injured participants as specified in the Program manual. (4) Program employees will follow the recommendation of the Texas Department of Health concerning the admission or readmission of any participant after a communicable disease. B. Program employees will administer medication only if: (1) Parent/Legal Guardian(s) complete and sign a medication form that provides authorization for staff to dispense medication with details as to time and dosages. The form will include a hold harmless clause to protect the City. (2) Prescription medications are in the original containers labeled with the child's name, date, directions, and the physician's name. Program employees will administer the medication only as stated on the label. Program employees will not administer medication after the expiration date. (3) Nonprescription medications are labeled with the child's name and the date the medication was brought to the Program. Nonprescription medication must be in the original container. Program employees will administer it only according to label direction. 11 (4) Medication dispensed will be limited to routine oral ingestion not requiring special knowledge or skills on the part of Program employees. No injections will be administered by the Program employees. (5) Program employees must ensure medications are inaccessible to participants or, if it is necessary to keep medications in the refrigerator (when available), medications will be kept separate from food. C. Toilet Facilities (1) The Program site will have inside toilets located and equipped so children can use them independently and Program staff can supervise as needed. (2) There must be one flush toilet for every 30 children. Urinals may be counted in the ratio of toilets to children, but they must not exceed 50%of the total number of toilets. (3) An appropriate and adequate number of lavatories will be provided. D. Sanitation (1) The Program facilities must have adequate light, ventilation, and heat. (2) The Program must have an adequate supply of water meeting the standards of the Texas Natural Resource Conservation Commission for drinking water and ensure that it will be supplied to the participants in a safe and sanitary manner. (3) Program employees must see that garbage is removed from buildings daily. 12 HUMAN RESOURCES CODE CHAPTER 42. REGULATION OF CERTAIN FACILITIES, HOMES, AND AGENCIES THAT PROVIDE CHILD-CARE SERVICES SUBCHAPTER A. GENERAL PROVISIONS § 42.001. PURPOSE. The purpose of this chapter is to protect the health, safety, and well-being of the children of the state who reside in child-care facilities by establishing statewide minimum standards for their safety and protection and by regulating the facilities through a licensing program or by requiring child-care facilities to be regulated by alternative accreditation bodies. It is the policy of the state to ensure the protection of all children under care in child-care facilities and to encourage and assist in the improvement of child-care programs. It is also the intent of the legislature that freedom of religion of all citizens is inviolate. With respect to a school or child-care facility sponsored by a religious organization, nothing in this chapter gives a governmental agency authority to regulate, control, supervise, or in any way be involved in the: (1) form, manner, or content of religious instruction, ministry, teaching, or the curriculum offered by the school or facility; (2) ability of the school or facility to select and supervise qualified personnel, and otherwise control the terms of employment, including the right to employ individuals who share the religious views of the school or facility; (3) internal self-governance and autonomy of the school or facility; or (4) religious environment of the school or facility, such as symbols, art, icons, and scripture. Acts 1979, 66th Leg. , p. 2358, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1997, 75th Leg. , ch. 664, § 2, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 2, eff. Sept. 1, 1997; Acts 2001, 77th Leg. , ch. 218, § 1, eff. Sept. 1, 2001. § 42.002. DEFINITIONS. In this chapter: (1) "Child" means a person under 18 years of age. (2) "Division" means the division designated by the department to carry out the provisions of this chapter. (3) "Child-care facility" means a facility licensed, certified, or registered by the department to provide assessment, care, training, education, custody, treatment, or supervision for a child who is not related by blood, marriage, or adoption to the owner or operator of the facility, for all or part of the 24-hour day, whether or not the facility is operated for profit or charges for the services it offers. (4) "Child-care institution" means a child-care facility that provides care for more than 12 children for 24 hours a day, including facilities known as children's homes, halfway houses, residential treatment centers, emergency shelters, and therapeutic camps. (5) "Foster group home" means a child-care facility that provides care for 7 to 12 children for 24 hours a day. (6) "Foster home" means a child-care facility that provides care for not more than six children for 24 hours a day. (7) "Day-care center" means a child-care facility that provides care for more than 12 children under 14 years of age for less than 24 hours a day. (8) "Group day-care home" means a child-care facility that provides care for 7 to 12 children under 14 years of age for less than 24 hours a day. (9) "Family home" means a home that provides regular care in the caretaker's own residence for not more than six children under 14 years of age, excluding children who are related to the caretaker, and that provides care after school hours for not more than six additional elementary school children, but the total number of children, including children who are related to the caretaker, does not exceed 12 at any given time. The term does not include a home that provides care exclusively for any number of children who are related to the caretaker. (10) "Agency foster group home" means a facility that provides care for seven to 12 children for 24 hours a day, is used only by a licensed child-placing agency, and meets department standards. (11) "Agency foster home" means a facility that provides care for not more than six children for 24 hours a day, is used only by a licensed child-placing agency, and meets department standards. (12) "Child-placing agency" means a person, including an organization, other than the natural parents or guardian of a child who plans for the placement of or places a child in a child-care facility, agency foster home, agency foster group home, or adoptive home. (13) "Facilities" includes child-care facilities and child-placing agencies. (14) "State of Texas" or "state" does not include political subdivisions of the state. (15) "Religious organization" means a church, synagogue, or other religious institution whose purpose is to support and serve the propagation of truly held religious beliefs. (16) "Children who are related to the caretaker" means children who are the children, grandchildren, siblings, great-grandchildren, first cousins, nieces, or nephews of the caretaker, whether by affinity or consanguinity or as the result of a relationship created by court decree. (17) "Regular care" means care that is provided at least four hours a day, three or more days a week, for more than nine consecutive weeks. Acts 1979, 66th Leg. , p. 2359, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1981, 67th Leg. , p. 2812, ch. 759, § 1, eff. Aug. 31, 1981; Acts 1987, 70th Leg. , ch. 1052, § 4.01, eff. Sept. 1, 1987; Acts 1989, 71st Leg. , ch. 984, § 1, eff. June 15, 1989; Acts 1997, 75th Leg. , ch. 1022, § 23, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 3, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 1, eff. Sept. 1, 1997; Acts 2001, 77th Leg. , ch. 218, § 2, eff. Sept. 1, 2001. SUBCHAPTER B. ADMINISTRATIVE PROVISIONS § 42.021. DIVISION DESIGNATED. (a) The department may designate a division within the department to carry out responsibilities the department may delegate or assign under this chapter. (b) The executive director of the department shall appoint as director of a division designated under Subsection (a) a person who meets the qualifications set by the board. (c) The department shall employ sufficient personnel and provide training for the personnel to carry out the provisions of this chapter. (d) The director may divide the state into regions for the purpose of administering this chapter. Acts 1979, 66th Leg. , p. 2360, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1995, 74th Leg. , ch. 76, § 8.020, eff. Sept. 1, 1995; Acts 1997, 75th Leg. , ch. 1063, § 4, eff. Sept. 1, 1997. § 42.022. STATE ADVISORY COMMITTEE. (a) The State Advisory Committee on Child-Care Administrators and Facilities is appointed by the board on the recommendation of the director. (b) Members of the committee serve for terms of two years expiring on February 1 of each odd-numbered year. (c) The advisory committee is composed of 12 members appointed by the board. The members must have the following qualifications: (1) two must be parents, guardians, or custodians of children who use the facilities; (2) two must be representatives of child advocacy groups; (3) two must be operators of nonprofit child-care facilities that are licensed under this chapter; (4) two must be experts in various professional fields that are relevant to child care and development; (5) two must be members of the general public; and (6) two must be operators of proprietary child-care facilities that are licensed under this chapter. (d) The department shall provide staff necessary for the committee. (e) The committee shall review rules and minimum standards for child-care administrators, child-care facilities, and child-placing agencies promulgated by state agencies, and shall advise the department, the council, and state agencies on problems of child-care administrators, child-care facilities, and child-placing agencies. (f) The committee shall receive and review the annual report of the department. (g) The board, on the recommendation of the director, shall appoint an advisory subcommittee on child-care administration from the membership of the Advisory Committee on Child-Care Administrators and Facilities. The subcommittee shall advise the board on licensing child-care administrators, including the content of the examination administered to license applicants under Section 43.004. The subcommittee on child-care administration shall meet at the same time the committee meets. (h) In making appointments to the committee, the board shall consider whether the committee reflects the race, ethnicity, and age of the residents of this state and whether the committee provides representation of the geographic regions of the state. Acts 1979, 66th Leg. , p. 2360, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1987, 70th Leg. , ch. 1052, § 4.02, eff. Sept. 1, 1987; Acts 1995, 74th Leg. , ch. 76, § 8.021, eff. Sept. 1, 1995; Acts 1995, 74th Leg. , ch. 920, § 9, eff. Sept. 1, 1995; Acts 1997, 75th Leg. , ch. 1063, § 5, eff. Sept. 1, 1997. § 42.023. ANNUAL REPORT. (a) The executive director shall prepare an annual written report regarding the department's activities under this chapter. (b) The annual report shall include: (1) a report by regions of applications for licensure or certification, of provisional licenses issued, denied, or revoked, of licenses issued, denied, suspended or revoked, of emergency closures and injunctions, and of the compliance of state-operated agencies with certification requirements; (2) a summary of the amount and kind of in-service training and other professional development opportunities provided for department staff; (3) a summary of training and other professional development opportunities offered to facilities' staffs; and (4) a report of new administrative procedures, of the number of staff and staff changes, and of plans for the coming year. (c) Copies of the annual report shall be available to any state citizen on request. Acts 1979, 66th Leg. , p. 2360, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1985, 69th Leg. , ch. 18, § 2, eff. April 3, 1985; Acts 1995, 74th Leg. , ch. 76, § 8.022, eff. Sept. 1, 1995; Acts 1997, 75th Leg. , ch. 1063, § 6, eff. Sept. 1, 1997. § 42.024. ADMINISTRATIVE PROCEDURE. Chapter 2001, Government Code applies to all procedures under this chapter except where it is contrary to or inconsistent with the provisions of this chapter. Acts 1979, 66th Leg. , p. 2361, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1995, 74th Leg. , ch. 76, § 5.95 (49) , eff. Sept. 1, 1995. SUBCHAPTER C. REGULATION OF CERTAIN FACILITIES, HOMES, AND AGENCIES § 42.041. REQUIRED LICENSE OR ACCREDITATION. (a) No person may operate a child-care facility or child-placing agency without a license issued by the department. (b) This section does not apply to: (1) a state-operated facility; (2) an agency foster home or agency foster group home; (3) a facility that is operated in connection with a shopping center, business, religious organization, or establishment where children are cared for during short periods while parents or persons responsible for the children are attending religious services, shopping, or engaging in other activities on or near the premises, including but not limited to retreats or classes for religious instruction; (4) a school or class for religious instruction that does not last longer than two weeks and is conducted by a religious organization during the summer months; (5) a youth camp licensed by the Texas Department of Health; (6) a facility licensed, operated, certified, or registered by another state agency; (7) an educational facility accredited by the Texas Education Agency or the Southern Association of Colleges and Schools that operates primarily for educational purposes in grades kindergarten and above, an after-school program operated directly by an accredited educational facility, or an after-school program operated by another entity under contract with the educational facility, if the Texas Education Agency or Southern Association of Colleges and Schools has approved the curriculum content of the after-school program operated under the contract; (8) an educational facility that operates solely for educational purposes in grades kindergarten through at least grade two, that does not provide custodial care for more than one hour during the hours before or after the customary school day, and that is a member of an organization that promulgates, publishes, and requires compliance with health, safety, fire, and sanitation standards equal to standards required by state, municipal, and county codes; (9) .a kindergarten or preschool educational program that is operated as part of a public school or a private school accredited by the Texas Education Agency, that offers educational programs through grade six, and that does not provide custodial care during the hours before or after the customary school day; (10) a family home, whether registered or listed; (11) an educational facility that is integral to and inseparable from its sponsoring religious organization or an educational facility both of which do not provide custodial care for more than two hours maximum per day, and that offers educational programs for children age five and above in one or more of the following: kindergarten through at least grade three, elementary, or secondary grades; (12) an emergency shelter facility providing shelter to minor mothers who are the sole support of their natural children under Section 32.201, Family Code, unless the facility would otherwise require a license as a child-care facility under this section; (13) a juvenile detention facility certified under Section 51.12, Family Code, or Section 141.042 (d) , a juvenile facility providing services solely for the Texas Youth Commission, or any other correctional facility for children operated or regulated by another state agency or by a political subdivision of the state; (14) an elementary-age (ages 5-13) recreation program operated by a municipality provided the governing body of the municipality annually adopts standards of care by ordinance after a public hearing for such programs, that such standards are provided to the parents of each program participant, and that the ordinances shall include, at a minimum, staffing ratios, minimum staff qualifications, minimum facility, health, and safety standards, and mechanisms for monitoring and enforcing the adopted local standards; and further provided that parents be informed that the program is not licensed by the state and the program may not be advertised as a child-care facility; or (15) an annual youth camp held in a municipality with a population of more than 1.5 million that operates for not more than three months and that has been operated for at least 10 years by a nonprofit organization that provides care for the homeless. (c) A single license that lists addresses and the appropriate facilities may be issued to a child-care institution that operates noncontiguous facilities that are nearby and that are demonstrably a single operation as indicated by patterns of staffing, finance, administrative supervision, and programs. (d) A facility exempt from the provisions of Subsection (a) of this section that desires to receive or participate in federal or state funding shall be required to comply with all other provisions of this chapter and with all regulations promulgated under this chapter. (e) The exemptions provided by Subsection (b) of this section do not affect the authority of local, regional, or state health department officials, the state fire marshal, or local fire prevention officials to inspect child-care facilities. Acts 1979, 66th Leg. , p. 2361, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1981, 67th Leg. , p. 2812, ch. 759, § 2, 3, eff. Aug. 31, 1981; Acts 1987, 70th Leg. , ch. 1052, § 4.03, eff. Sept. 1, 1987; Acts 1987, 70th Leg. , ch. 1115, § 2, eff. June 19, 1987; Acts 1995, 74th Leg. , ch. 262, § 54, eff. Jan. 1, 1996; Acts 1995, 74th Leg. , ch. 847, § 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg. , ch. 165, § 7.46, eff. Sept. 1, 1997; ; Acts 1997, 75th Leg. , ch. 664, § 3, 4, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 2, eff. Sept. 1, 1997; Acts 2001, 77th Leg. , ch. 218, § 3, eff. Sept. 1, 2001. § 42.042. RULES AND STANDARDS. (a) The department shall make rules to carry out the provisions of this chapter. (b) The department shall conduct a comprehensive review of all rules and standards at least every six years. For purposes of this subsection, the six-year period begins on the latest of the date of: (1) the conclusion of the review of the rules and standards; (2) a decision by the department not to revise the rules and standards; (3) a decision by the board not to revise the rules and standards; or (4) board action adopting new standards. (c) The department shall provide a standard procedure for receiving and recording complaints. (d) The department shall provide standard forms for applications and inspection reports. (e) The department shall promulgate minimum standards that apply to licensed child-care facilities and to registered family homes covered by this chapter and that will: (1) promote the health, safety, and welfare of children attending a facility or registered family home; (2) promote safe, comfortable, and healthy physical facilities and registered family homes for children; (3) ensure adequate supervision of children by capable, qualified, and healthy personnel; (4) ensure adequate and healthy food service where food service is offered; (5) prohibit racial discrimination by child-care facilities and registered family homes; (6) require procedures for parental and guardian consultation in the formulation of children's educational and therapeutic programs; and (7) prevent the breakdown of foster care and adoptive placement. (f) In promulgating minimum standards for the provision of child-care services, the department shall recognize the various categories of services, including services for specialized care, the various categories of children and their particular needs, and the differences in the organization and operation of child-care facilities and institutions. Standards for child-care institutions must require an intake study before a child is placed in an institution. The intake study may be conducted at a community mental health and mental retardation center. (g) In promulgating minimum standards the department may recognize and treat differently the types of services provided by the following: (1) registered family homes; (2) child-care facilities, including child-care institutions, foster group homes, foster homes, group day-care homes, and day-care centers; (3) child-placing agencies; (4) agency foster homes; and (5) agency foster group homes. (h) The department shall promulgate minimum standards for child-placing agencies. (i) Before adopting minimum standards, the department shall present the proposed standards to the State Advisory Committee on Child-Care Facilities for review and comment, and shall send a copy of the proposed standards to each licensee covered by the proposed standards at least 60 days before the standards take effect to provide the licensee an opportunity to review and to send written suggestions to the committee and the department. (j ) The department may waive compliance with a minimum standard in a specific instance if it determines that the economic impact of compliance is sufficiently great to make compliance impractical. (k) The department may not regulate or attempt to regulate or control the content or method of any instruction or curriculum of a school sponsored by a religious organization. (1) In promulgating minimum standards for the regulation of family homes that register with the department, the department must address the minimum qualifications, education, and training required of a person who operates a family home registered with the department. (m) In determining minimum standards relating to staff-to-child ratios, group sizes, or square footage requirements applicable to nonresidential child-care facilities that provide care for less than 24 hours a day, the department shall, within available appropriations, conduct a comprehensive cost-benefit analysis and economic impact study that includes families and licensed child-care providers. (n) Not later than the 60th day before the date the board adopts a revision to the minimum standards for child-care facilities, the department shall present the revision to the appropriate legislative oversight committees that have jurisdiction over child-care facilities for review and comment. (p) The department by rule shall prescribe minimum training standards for an employee of a regulated child-care facility, including the time required for completing the training. The department may not require an employee to repeat required training if the employee has completed the training within the time prescribed by department rule. The department's local offices shall make available at the local office locations a copy of the rules regarding minimum training standards, information enabling the owner or operator of a regulated facility to apply for training funds from other agencies to lower facility costs, and any other materials the department may develop to assist the owner or operator or other entity in providing the training. Acts 1979, 66th Leg. , p. 2362, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1987, 70th Leg. , ch. 1052, § 4 .04, eff. Sept. 1, 1987; Acts 1995, 74th Leg. , ch. 920, § 10, eff. Sept. 1, 1995; Acts 1997, 75th Leg. , ch. 1022, § 24, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1121, § 1, eff. June 19, 1997; Acts 1997, 75th Leg. , ch. 1217, § 3, eff. Sept. 1, 1997; Acts 1999, 76th Leg. , ch. 1129, § 1, eff. Sept. 1, 1999; Acts 2001, 77th Leg. , ch. 218, § 4, eff. Sept. 1, 2001. § 42.0421. MINIMUM TRAINING STANDARDS. (a) The minimum training standards prescribed by the department under Section 42.042 (p) for an employee of a day-care center or group day-care home must include: (1) eight hours of initial training for an employee of a day-care center who has no previous training or employment experience in a regulated child-care facility, to be completed before the employee is given responsibility for a group of children; (2) 15 hours of annual training for each employee of a day-care center or group day-care home, excluding the director, which must include at least six hours of training in one or more of the following areas: (A) child growth and development; (B) guidance and discipline; (C) age-appropriate curriculum; and (D) teacher-child interaction; and (3) 20 hours of annual training for each director of a day-care center or group day-care home, which must include at least six hours of training in one or more of the following areas: (A) child growth and development; (B) guidance and discipline; (C) age-appropriate curriculum; and (D) teacher-child interaction. (b) The minimum training standards prescribed by the department under Section 42.042 (p) must require an employee of a licensed day-care center or group day-care home who provides care for children younger than 24 months of age to receive special training regarding the care of those children. The special training must be included as a component of the initial training required by Subsection (a) (1) and as a one-hour component of the annual training required by Subsections (a) (2) and (a) (3) . The special training must include information on: (1) recognizing and preventing shaken baby syndrome; (2) preventing sudden infant death syndrome; and (3) understanding early childhood brain development. (c) The department by rule shall require an operator of a registered family home who provides care for a child younger than 24 months of age to complete one hour of annual training on: (1) recognizing and preventing shaken baby syndrome; (2) preventing sudden infant death syndrome; and (3) understanding early childhood brain development. (d) Section 42.042 (m) does not apply to the minimum training standards required by this section. Added by Acts 1999, 76th Leg. , ch. 1211, § 1, eff. Jan. 1, 2000. Amended by Acts 2001, 77th Leg. , ch. 169, § 1, eff. Sept. 1, 2001. § 42.0425. ASSESSMENT SERVICES. (a) The department by rule shall regulate assessment services provided by child-care facilities or child-placing agencies. A child-care facility or child-placing agency may not provide assessment services unless specifically authorized by the department. (b) The department by rule shall establish minimum standards for assessment services. The standards must provide that consideration is given to the individual needs of a child, the appropriate place for provision of services, and the factors listed in Section 42.042 (e) . (c) In this section, "assessment services" means the determination of the placement needs of a child who requires substitute care. Added by Acts 1997, 75th Leg. , ch. 1022, § 25, eff. Sept. 1, 1997. § 42.0426. TRAINING OF PERSONNEL. A licensed facility shall provide training for staff members in: (1) the recognition of symptoms of child abuse, neglect, and sexual molestation and the responsibility and procedure of reporting suspected occurrences of child abuse, neglect, and sexual molestation to the department or other appropriate entity; (2) the application of first aid; and (3) the prevention and spread of communicable diseases. Added by Acts 1997, 75th Leg. , ch. 1022, § 25, eff. Sept. 1, 1997. § 42.0427. PARENTAL VISITATION. All areas of a licensed facility must be accessible to a parent of a child who is receiving care at the facility if the parent visits the child during the facility's hours of operation. Added by Acts 1997, 75th Leg. , ch. 1022, § 25, eff. Sept. 1, 1997. § 42.043. RULES FOR IMMUNIZATIONS. (a) The department shall make rules for the immunization of children in facilities regulated under this chapter. (b) The department shall require that each child at an appropriate age have a test for tuberculosis and be immunized against diphtheria, tetanus, poliomyelitis, mumps, rubella, and rubeola and against any other communicable disease as recommended by the Texas Department of Health. The immunization must be effective on the date of first entry into the facility. However, a child may be provisionally admitted if the required immunizations have begun and are completed as rapidly as medically feasible. (c) The Texas Department of Health shall make rules for the provisional admission of children to facilities regulated under this chapter and may modify or delete any of the immunizations listed in Subsection (b) of this section or require additional immunizations as a requirement for admission to a facility. (d) No immunization may be required for admission to a facility regulated under this chapter if a person applying for a child's admission submits one of the following affidavits: (1) an affidavit signed by a licensed physician stating that the immunization poses a significant risk to the health and well-being of the child or a member of the child's family or household; or (2) an affidavit signed by the child's parent or guardian stating that the applicant declines immunization for reasons of conscience, including a religious belief. (d-1) An affidavit submitted under Section (d) (2) must be on a form described by Section 161.0041, Health and Safety Code, and must be submitted not later than the 90th day after the date the affidavit is notarized. (e) Each regulated facility shall keep an individual immunization record for each child admitted, and the records shall be open for inspection by the department at all reasonable times. (f) The Texas Department of Health shall provide the immunizations required by this section to children in areas where there is no local provision of these services. Acts 1979, 66th Leg. , p. 2362, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1993, 73rd Leg. , ch. 43, § 5, eff. Sept. 1, 1993; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 2003, 78th Leg. , ch. 198, § 2.164, eff. Sept. 1, 2003. § 42.0431. ENFORCEMENT OF SCREENING REQUIREMENTS RELATING TO VISION, HEARING, AND OTHER SPECIAL SENSES AND COMMUNICATION DISORDERS. (a) The department, after consultation with the Texas Department of Health, shall adopt rules necessary to ensure that children receiving care at a day-care center or group day-care home licensed under this chapter are screened for vision, hearing, and any other special senses or communication disorders in compliance with rules adopted by the Texas Board of Health under Section 36.004, Health and Safety Code. (b) Each day-care center or group day-care home licensed under this chapter shall maintain individual screening records for children attending the facility who are required to be screened, and the department may inspect those records at any reasonable time. The department shall coordinate the monitoring inspections in compliance with protocol agreements adopted between the department and the Texas Department of Health pursuant to Section 42.0442. (c) This section does not apply to a day-care center or group day-care home operating under a certificate issued by the department under Subchapter E. Added by Acts 1999, 76th Leg. , ch. 712, § 1, eff. June 18, 1999. § 42.044 . INSPECTIONS. (a) An authorized representative of the department may visit a facility regulated under this chapter or a registered family home during operating hours to investigate, inspect, and evaluate. (b) The department shall inspect all licensed or certified facilities at least once a year and may inspect other facilities or registered family homes as necessary. The department shall investigate a listed family home when the department receives a complaint of abuse or neglect of a child, as defined by Section 261.001, Family Code. At least one of the annual visits must be unannounced and all may be unannounced. (c) The department must investigate a facility regulated under this chapter or a registered family home when a complaint is received. The representative of the department must notify the operator of a registered family home or the director or authorized representative of a regulated facility when a complaint is being investigated and report in writing the results of the investigation to the family home's operator or to the regulated facility's director or the director's authorized representative. (d) The department may call on political subdivisions and governmental agencies for assistance within their authorized fields. Acts 1979, 66th Leg. , p. 2363, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1022, § 27, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 4, eff. Sept. 1, 1997; Acts 2001, 77th Leg. , ch. 218, § 5, eff. Sept. 1, 2001. § 42.0441. INSPECTION RESULTS. Immediately after completing a monitoring inspection of a licensed day-care center, licensed group day-care home, or registered family home under Section 42.044, the authorized representative of the department shall review the results of the monitoring inspection with a representative of the facility and give the facility an opportunity to respond to the inspection results. Added by Acts 1997, 75th Leg. , ch. 253, § 1, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1022, § 28, eff. Sept. 1, 1997. § 42.0442. COORDINATION OF INSPECTIONS; ELIMINATION OF DUPLICATIVE INSPECTIONS. (a) The department shall coordinate monitoring inspections of licensed day-care centers, licensed group day-care homes, and registered family homes performed by another state agency to eliminate redundant inspections. (b) The department shall form an interagency task force with the Texas Department of Health, the Texas Department of Human Services, and the Texas Workforce Commission to develop an inspection protocol that will coordinate inspections by those agencies. The protocol must assign the required items for inspection by each agency and facilitate the sharing of inspection data and compliance history. (c) The interagency task force shall establish an inspection checklist based on the inspection protocol developed under Subsection (b) . Each state agency that inspects a facility listed in Subsection (a) shall use the inspection checklist in performing an inspection. A state agency shall make a copy of the completed inspection checklist available to the facility at the facility's request to assist the facility in maintaining records. (d) The department shall provide to facilities listed in Subsection (a) information regarding inspections, including who may inspect a facility and the purpose of each type of inspection. Added by Acts 1997, 75th Leg. , ch. 253, § 1, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1022, § 28, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg. , ch. 169, § 2, eff. Sept. 1, 2001. § 42.0443. INSPECTION INFORMATION DATABASE. Text of section as added by Acts 1997, 75th Leg. , ch. 253, § 1 (a) If feasible using available information systems, the department shall establish a computerized database containing relevant inspection information on licensed day-care centers, licensed group day-care homes, and registered family homes from other state agencies and political subdivisions of the state. (b) The department shall make the data collected by the department available to another state agency or political subdivision of the state for the purpose of administering programs or enforcing laws within the jurisdiction of that agency or subdivision. If feasible using available information systems, the department shall make the data directly available to the Texas Department of Health, the Texas Department of Human Services, and the Texas Workforce Commission through electronic information systems. The department, the Texas Department of Health, the Texas Department of Human Services, and the Texas Workforce Commission shall jointly plan the development of child-care inspection databases that, to the extent feasible, are similar in their design and architecture to promote the sharing of data. (c) The department may provide inspection data on licensed day-care centers, licensed group day-care homes, or registered family homes to the public if the department determines that providing inspection data enhances consumer choice with respect to those facilities. Added by Acts 1997, 75th Leg. , ch. 253, § 1, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1022, § 28, eff. Sept. 1, 1997. For text of section as added by Acts 2003, 78th Leg. , ch. 709, § 1, see § 42.0443, post. § 42.0443. COORDINATION OF FIRE SAFETY AND SANITATION INSPECTIONS. Text of section as added by Acts 2003, 78th Leg. , ch. 709, § 1. (a) The department may not inspect a licensed day-care center, licensed group day-care home, or registered family home for compliance with the department's fire safety or sanitation standards if the facility, at the time of the department's inspection, provides the department with documentation relating to a current fire safety or sanitation inspection, as applicable, performed by a political subdivision of this state that indicates that the facility is in compliance with the applicable standards of the political subdivision. (b) If the documentation provided under Subsection (a) indicates that the facility was required to take corrective action or that the political subdivision imposed a restriction or condition on the facility, the department shall determine whether the facility took the required corrective action or complied with the restriction or condition. (c) The department may inspect a facility subject to this section for compliance with the department's fire safety or sanitation standards if: (1) the facility does not provide the documentation described by Subsection (a) ; or (2) the department determines that the facility did not take a corrective action or comply with a restriction or condition described by Subsection (b) . (d) Notwithstanding any other provision of this section, the department shall report to the appropriate political subdivision any violation of fire safety or sanitation standards observed by the department at a facility subject to this section. (e) The department shall adopt rules necessary to implement this section. Added by Acts 2003, 78th Leg. , ch. 709, § 1, eff. Sept. 1, 2003. For text of section as added by Acts 1997, 75th Leg. , ch. 253, § 1, see § 42.0443, ante. § 42.0445. REQUIRED BACKGROUND SEARCH OF CENTRAL REGISTRY OF REPORTED CASES OF CHILD ABUSE OR NEGLECT. (a) Before the department issues or renews a license, registration, or certification under this subchapter, the department shall search the central registry of reported cases of child abuse or neglect established under Section 261.002, Family Code, to determine whether the applicant or the owner or an employee of the facility or family home is listed in the registry as a person who abused or neglected a child. (b) The department may adopt rules to implement this section. Added by Acts 1997, 75th Leg. , ch. 1022, § 29, eff. Sept. 1, 1997. § 42.045. RECORDS. (a) A person who operates a licensed or certified facility shall maintain individual child development records, individual health records, statistical records, and complete financial records. (b) A person who provides adoption services under a license to operate a child-placing agency shall furnish information required by the department to determine whether adoption related income and disbursements are reasonable, appropriate, and in compliance with the department's minimum standards. (c) If a child-placing agency terminates operation as a child-placing agency, it shall, after giving notice to the department, transfer its files and records concerning adopted children, their biological families, and their adoptive families to the Bureau of Vital Statistics or, after giving notice to the Bureau of Vital Statistics, to a facility licensed by the department to place children for adoption. Acts 1979, 66th Leg. , p. 2363, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1983, 68th Leg. , p. 1782, ch. 342, § 2, eff. Jan. 1, 1984; Acts 1989, 71st Leg. , ch. 707, § 1, eff. Sept. 1, 1989; Acts 1997, 75th Leg. , ch.. 1063, § 7, eff. Sept. 1, 1997; Acts 1999, 76th Leg. , ch. 1129, § 2, eff. Sept. 1, 1999. § 42.046. APPLICATION FOR LICENSE, LISTING, OR REGISTRATION. (a) An applicant for a license to operate a child-care facility or child-placing agency or for a listing or registration to operate a family home shall submit to the department the appropriate fee prescribed by Section 42.054 and a completed application on a form provided by the department. (b) The department shall supply the applicant the application form and a copy of the appropriate minimum standards, if applicable. (c) After receiving an application, the department shall investigate the applicant and the plan of care for children, if applicable. (d) The department shall complete the investigation and decide on an application within two months after the date the department receives a completed application. Acts 1979, 66th Leg. , p. 2363, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1985, 69th Leg. , ch. 212, § 1, eff. Sept. 1, 1985; Acts 1985, 69th Leg. , ch. 239, § 4, eff. Sept. 1, 1985; Acts 1997, 75th Leg. , ch. 1022, § 30, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 5, eff. Sept. 1, 1997. § 42.0461. PUBLIC NOTICE AND HEARING IN CERTAIN COUNTIES: RESIDENTIAL CHILD CARE. (a) Before the department may issue a license, other than a renewal license, or certificate to operate under Subchapter E for the operation or the expansion of the capacity of a foster group home or foster family home that is located in a county with a population of less than 300, 000 and that provides child care for 24 hours a day at a location other than the actual residence of a child's primary caretaker or of a child care institution, the applicant for the license, certificate, or expansion shall, at the applicant's expense: (1) conduct a public hearing on the application in accordance with department rules after notifying the department of the date, time, and location of the hearing; and (2) publish notice of the application in a newspaper of general circulation in the community in which the child-care services are proposed to be provided. (b) The notice required by Subsection (a) (2) must be published at least 10 days before the date of the public hearing required by Subsection (a) (1) and must include: (1) the name and address of the applicant; (2) the address at which the child-care services are proposed to be provided; (3) the date, time, and location of the public hearing; (4) the name, address, and telephone number of the department as the licensing authority; and (5) a statement informing the public that a person may submit written comments to the department concerning the application instead of or in addition to appearing at the public . hearing. (c) The department shall require a representative of the department to attend the public hearing in an official capacity for the purpose of receiving public comments on the application. (d) Before issuing a license or certificate described by Subsection (a) , the department shall consider: (1) the amount of local resources available to support children proposed to be served by the applicant; (2) the impact of the proposed child-care services on the ratio in the local school district of students enrolled in a special education program to students enrolled in a regular education program and the effect, if any, on the children proposed to be served by the applicant; and (3) the impact of the proposed child-care services on the community and the effect on opportunities for social interaction for the children proposed to be served by the applicant. (e) The department may deny the application if the department determines that: (1) the community has insufficient resources to support children proposed to be served by the applicant; (2) granting the application would significantly increase the ratio in the local school district of students enrolled in a special education program to students enrolled in a regular education program and the increase would adversely affect the children proposed to be served by the applicant; or (3) granting the application would have a significant adverse impact on the community and would limit opportunities for social interaction for the children proposed to be served by the applicant. (f) A child-placing agency that proposes to verify an agency home or agency group home that is located in a county with a population of less than 300, 000 that provides child care for 24 hours a day at a location other than the actual residence of a child's primary caretaker shall: (1) comply with the notice and hearing requirements imposed by Subsections (a) and (b) ; and (2) after conducting the required public hearing, provide the department with information relating to the considerations specified in Subsection (d) . (g) The department may prohibit the child-placing agency from verifying the proposed agency home or agency group home on the same grounds that the department may deny an application under Subsection (e) . Added by Acts 1997, 75th Leg. , ch. 1022, § 31, eff. Sept. 1, 1997. § 42.047. CONSULTATIONS. (a) The department shall offer consultation to potential applicants, applicants, and license, listing, registration, and certification holders about meeting and maintaining standards for licensing, listing, registration, and certification and achieving programs of excellence in child care. (b) The department shall offer consultation to prospective and actual users of facilities or homes. Acts 1979, 66th Leg. , p. 2364, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 6, eff. Sept. 1, 1997. § 42.048. LICENSING. (a) The department shall issue a license after determining that an applicant has satisfied all requirements. (b) When issuing a license, the department may impose restrictions on a facility, including but not limited to the number of children to be served and the type of children to be served. (c) The department may grant a variance of an individual standard set forth in the applicable standards for good and just cause. (d) A license holder must display a license issued under this chapter in a prominent place at the facility. (e) A license issued under this chapter is not transferable and applies only to the operator and facility location stated in the license application. A change in location or ownership automatically revokes a license. (f) A license must be issued if the department determines that a facility meets all requirements. The evaluation shall be based on one or more visits to the facility and a review of required forms and records. A license is valid until revoked or surrendered. Acts 1979, 66th Leg. , p. 2364, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1987, 70th Leg. , ch. 1081, § 1, eff. Sept. 1, 1987. Renumbered from V.T.C.A. , Human Resources Code § 42.049 and amended by Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997. § 42.049. LIABILITY INSURANCE REQUIRED. (a) A license holder shall maintain liability insurance coverage in the amount of $300, 000 for each occurrence of negligence. An insurance policy or contract required under this section must cover injury to a child that occurs while the child is on the premises of the license holder or in the care of the license holder. (b) A license holder shall file with the department a certificate or other evidence from an insurance company showing that the license holder has an unexpired and uncancelled insurance policy or contract that meets the requirements of this section. (c) Should the license holder for financial reasons or for lack of availability of an underwriter willing to issue a policy be unable to secure the insurance required under Subsection (a) or should the policy limits be exhausted, the license holder shall notify the parent or a person standing in parental relationship to each child for whom the license holder provides care a written notice that the liability coverage is not provided and there will not be a ground for suspension or revocation of the license holder's license under this chapter. The license holder shall also notify the department that the coverage is not provided and provide the reason for same. In no case shall the inability to secure coverage serve to indemnify the license holder for damages due to negligence. (d) The insurance policy or contract shall be maintained at all times in an amount as required by this section. Failure by a license holder to renew the policy or contract or to maintain the policy or contract in the required amount is a ground for suspension or revocation of the license holder's license under this chapter. (e) This section does not apply to a group day-care home or a listed or registered family home. Added by Acts 1993, 73rd Leg. , ch. 1002, § 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg. , ch. 1217, § 7, eff. Sept. 1, 1997. Renumbered from V.T.C.A. , Human Resources § 42.0491 and amended by Acts 1997 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997. § 42.050. LICENSE RENEWAL. (a) A license holder may apply for a new license in compliance with the requirements of this chapter and the rules promulgated by the department. (b) The application for a new license must be completed and decided on by the department before the expiration of the license under which a facility is operating. (c) The department shall evaluate the application for a new license to determine if all licensing requirements are met. The evaluation may include a specified number of visits to the facility and must include a review of all required forms and records. Amended by Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997. § 42.0505. RENEWAL OF LICENSE. (a) A person who is otherwise eligible to renew a license may renew an unexpired license by paying the required annual fee to the department before the expiration date of the license. A person whose license has expired may not engage in activities that require a license until the license has been renewed under the provisions of this section. (b) If the person's license has been expired for 90 days or less, the person may renew the license by paying to the department 1-1/2 times the required annual fee. (c) If the person's license has been expired for longer than 90 days but less than one year, the person may renew the license by paying to the department two times the required annual fee. (d) If the person's license has been expired for one year or longer, the person may not renew the license. The person may obtain a new license by complying with the requirements and procedures for obtaining an original license. (e) At least 30 days before the expiration of a person's license, the department shall send written notice of the impending license expiration to the person at the license holder's last known address according to the records of the department. Added by Acts 1997, 75th Leg. , ch. 1022, § 26, eff. Sept. 1, 1997. § 42.051. PROVISIONAL LICENSE. (a) The department shall issue a provisional license when a facility's plans meet the department's licensing requirements and one of the following situations exists: (1) the facility is not currently operating; (2) the facility has relocated and has made changes in the type of child-care service it provides; or (3) there is a change in ownership of the facility resulting in changes in policy and procedure or in the staff who have direct contact with the children. (b) A provisional license is valid for six months from the date it is issued and may be renewed for an additional six months. Acts 1979, 66th Leg. , p. 2365, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1989, 71st Leg. , ch. 707, § 2, eff. Sept. 1, 1989; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997. .5 42.052. CERTIFICATION, LISTING, AND REGISTRATION. (a) A state-operated child-care facility or child-placing agency must receive certification of approval from the department. The certification of approval remains valid until revoked or surrendered. (b) To be certified, a facility must comply with the department's rules and standards and any provisions of this chapter that apply to a licensed facility of the same category. The operator of a certified facility must display the certification in a prominent place at the facility. (c) A family home that provides care for compensation for three or fewer children, excluding children who are related to the caretaker, shall list with the department if the home provides regular care in the caretaker's own residence. The home may register with the department. (d) A family home that provides care for four or more children, excluding children who are related to the caretaker, shall register with the department. A family home that provides care exclusively for any number of children who are related to the caretaker is not required to be listed or registered with the department. (e) A registration or listing remains valid until revoked or surrendered. The operator of a registered home must display the registration in a prominent place at the home. (f) To remain listed or registered with the department, a family home must comply with the department's rules and standards, if applicable, and any provision of this chapter that applies to a listed or registered family home. (g) The certification requirements of this section do not apply to a Texas Youth Commission facility, a Texas Juvenile Probation Commission facility, or a facility providing services solely for the Texas Youth Commission. (h) The certification requirements of this section do not apply to a juvenile detention facility certified under Section 51.12, Family Code, or Section 141.042 (d) . (i) The department shall provide to a listed family home a copy of the listing. A listing must contain a provision that states: "THIS HOME IS A LISTED FAMILY HOME. IT IS NOT LICENSED OR REGISTERED WITH THE DEPARTMENT OF PROTECTIVE AND REGULATORY SERVICES. IT HAS NOT BEEN INSPECTED AND WILL NOT BE INSPECTED. " The operator of a listed home is not required to display the listing in a prominent place at the home but shall make the listing available for examination. The department by rule shall provide for a sufficient period to allow operators of family homes to comply with the listing requirement of this section. (j ) The operator of a listed family home shall undergo initial and subsequent background and criminal history checks required under Section 42.056. (k) The department shall issue a listing or registration to a family home, as appropriate, in both English and Spanish when the most recent federal census shows that more than one-half of the population in a municipality or in a commissioners precinct in a county in which the family home is located is of Hispanic origin or Spanish-speaking. Acts 1979, 66th Leg. , p. 2365, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1981, 67th Leg. , p. 2813, ch. 759, § 4, eff. Aug. 31, 1981; Acts 1985, 69th Leg. , ch. 212, § 2, eff. Sept. 1, 1985; Acts 1985, 69th Leg. , ch. 915, § 1, eff. Sept. 1, 1985; Acts 1987, 70th Leg. , ch. 1052, § 4.06, eff. Sept. 1, 1987; Acts 1989, 71st Leg. , ch. 707, § 3, eff. Sept. 1, 1989; Acts 1995, 74th Leg. , ch. 76, § 8.023, eff. Sept. 1, 1995; Acts 1995, 74th Leg. , ch. 262, § 55, eff. Jan. 1, 1996; Acts 1997, 75th Leg. , ch. 1022, § 32, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 8, eff. Sept. 1, 1997; Acts 2001, 77th Leg. , ch. 218, § 6 to 8, eff. Sept. 1, 2001. § 42.0521. DEPOSIT OF FEES. The fees authorized by this chapter and received by the department shall be deposited in the general revenue fund. Added by Acts 1985, 69th Leg. , ch. 239, § 5, eff. Sept. 1, 1985. § 42.0522. PUBLIC ADVERTISING OF FAMILY HOMES. (a) A family home may not place a public advertisement that uses the title "registered family home" or any variation of that phrase unless the home is registered under this chapter. Any public advertisement for a registered family home that uses the title "registered family home" must contain a provision in bold type stating: "THIS HOME IS REGISTERED WITH THE DEPARTMENT OF PROTECTIVE AND REGULATORY SERVICES BUT IS NOT LICENSED OR REGULARLY INSPECTED. " (b) A family home may not place a public advertisement that uses the title "listed family home" or any variation of that phrase unless the home is listed as provided by this chapter. Any public advertisement for a listed family home that uses the title"listed family home" must contain a provision in bold type stating: "THIS HOME IS A LISTED FAMILY HOME. IT IS NOT LICENSED OR REGISTERED WITH THE DEPARTMENT OF PROTECTIVE AND REGULATORY SERVICES. IT HAS NOT BEEN INSPECTED AND WILL NOT BE INSPECTED. " Added by Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 9, eff. Sept. 1, 1997. § 42.053. AGENCY FOSTER HOMES AND AGENCY FOSTER GROUP HOMES. (a) An agency foster home or agency foster group home is considered part of the child-placing agency that operates the agency foster home or agency foster group home for purposes of licensing. (b) The operator of a licensed agency shall display a copy of the license in a prominent place in the agency foster home or agency foster group home used by the agency. (c) An agency foster home or agency foster group home shall comply with all provisions of this chapter and all department rules and standards that apply to a child-care facility caring for a similar number of children for a similar number of hours each day. (d) The department shall revoke or suspend the license of a child-placing agency if an agency foster home or agency foster group home operated by the licensed agency fails to comply with Subsection (c) of this section. Acts 1979, 66th Leg. , p. 2365, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1987, 70th Leg. , ch. 1052, § 4 .07, eff. Sept. 1, 1987; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997. § 42.0535. REQUIRED INFORMATION FOR VERIFICATION. (a) A child-placing agency that seeks to verify an agency home or an agency group home shall request background information about the agency home or group home from a child-placing agency that has previously verified that agency home or agency group home. (b) Notwithstanding Section 261.201, Family Code, a child-placing agency that has verified an agency home or an agency group home is required to release to another child-placing agency background information requested under Subsection (a) . (c) A child-placing agency that releases background information under this section is immune from civil and criminal liability for the release of the information. (d) For purposes of this section, background information means the home study under which the agency home or agency group home was verified by the previous child-placing agency and any record of noncompliance with state minimum standards received and the resolution of any such noncompliance by the previous child-placing agency. Added by Acts 1997, 75th Leg. , ch. 575, § 36(a) , eff. Sept. 1, 1997. § 42.054 . FEES. (a) The department shall charge an applicant a nonrefundable application fee of $35 for an initial license to operate a child-care facility or a child-placing agency. (b) The department shall charge each child-care facility a fee of $35 for a provisional license. The department shall charge each child-placing agency a fee of $50 for a provisional license. (c) The department shall charge each licensed child-care facility an annual license fee in the amount of $35 plus $1 for each child the child-care facility is permitted to serve. The fee is due on the date on which the department issues the child-care facility's initial license and on the anniversary of that date. (d) The department shall charge each licensed child-placing agency an annual license fee of $100. The fee is due on the date on which the department issues the child-placing agency's initial license and on the anniversary of that date. (e) The department shall charge each family home that is listed or registered with the department an annual fee to cover a part of the department's cost in regulating family homes. The amount of the fee is $20 for a listed home or $35 for a registered home. The fee is due on the date on which the department initially lists or registers the home and on the anniversary of that date. (f) If a facility, agency, or home fails to pay the annual fee when due, the license, listing, or registration, as appropriate, is suspended until the fee is paid. (g) The provisions of Subsections (b) through (f) of this section do not apply to: (1) licensed foster homes and licensed foster group homes; (2) nonprofit facilities regulated under this chapter that provided 24-hour care for children in the managing conservatorship of the department during the 12-month period immediately preceding the anniversary date of the facility's license; or (3) facilities operated by a nonprofit corporation or foundation that provides 24-hour residential care and does not charge for the care provided. Amended by Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 10, 11, eff. Sept. 1, 1997. § 42.055. SIGN POSTING. (a) Each child-care facility shall post in a location that is conspicuous to all employees and customers a sign that includes: (1) a description of the provisions of the Family Code relating to the duty to report child abuse or neglect; (2) a description of the penalties for violating the reporting provisions of the Family Code; and (3) a brief description of sudden infant death syndrome, shaken-baby syndrome, and childhood diabetes and methods for preventing those phenomena. (b) The department by rule shall determine the design, size, and wording of the sign. (c) The department shall provide the sign to each child-care facility without charge. (d) A person who operates a child-care facility commits an offense if the department provides a sign to the facility as provided by this section and the person intentionally fails to display the sign in the facility as prescribed by this section. An offense under this subsection is a Class C misdemeanor. Added by Acts 1989, 71st Leg. , 1st C.S. , ch. 20, § 1, eff. Nov. 1, 1989. Amended by Acts 1997, 75th Leg. , ch. 165, § 7.47, eff. Sept. 1, 1997. Renumbered from V.T.C.A. , Human Resources Code § 42.056 and amended by Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg. , ch. 221, § 1, eff. Sept. 1, 2001. § 42.056. REQUIRED BACKGROUND AND CRIMINAL HISTORY CHECKS. (a) In accordance with rules adopted by the department, the director, owner, or operator of a child-care facility or family home shall, when applying to operate a child-care facility or when listing or registering a family home and at least once during each 24 months after receiving a license, listing, registration, or certification of approval, submit to the department for use in conducting background and criminal history checks: (1) the name of the director, owner, and operator of the facility or home, and the name of each person employed at the facility or home; and (2) the name of each person 14 years of age or older who will regularly or frequently be staying or working at the facility or home while children are being provided care. (b) The department shall conduct background and criminal history checks using: (1) the information provided under Subsection (a) ; (2) the information made available by the Department of Public Safety under Section 411.114, Government Code, or by the Federal Bureau of Investigation or other criminal justice agency under Section 411.087, Government Code; and (3) the department's records of reported- abuse and neglect. (c) The department by rule shall require a child-care facility or registered family home to pay to the department a fee in an amount not to exceed the administrative costs the department incurs in conducting a background and criminal history check under this section. Amended by Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997. § 42.058. COMPETITIVE BIDDING OR ADVERTISING RULES. (a) The board may not adopt rules restricting competitive bidding or advertising by a license holder or registration holder except to prohibit false, misleading, or deceptive practices or to prevent a violation of this chapter. (b) In its rules to prohibit false, misleading, or deceptive practices, the board may not include a rule that: (1) restricts the use of any medium for advertising; (2) restricts the use of a license holder's or registration holder's personal appearance or voice in an advertisement; (3) relates to the size or duration of an advertisement by the license holder or registration holder; or (4) restricts the license holder's or registration holder's advertisement under a trade name. Added by Acts 1997, 75th Leg. , ch. 1022, § 33, eff. Sept. 1, 1997. § 42.059. REQUIRED AFFIDAVIT FOR APPLICANTS FOR EMPLOYMENT WITH FACILITY OR REGISTERED FAMILY HOME. (a) An applicant for temporary or permanent employment with a licensed facility or registered family home whose employment or potential employment with the facility or home involves direct interactions with or the opportunity to interact and associate with children must execute and submit the following affidavit with the application for employment: STATE OF COUNTY OF I swear or affirm under penalty of perjury that I do not now and I have not at any time, either as an adult or as a juvenile: 1. Been convicted of; 2. Pleaded guilty to (whether or not resulting in a conviction) ; 3. Pleaded nolo contendere or no contest to; 4 . Admitted; 5. Had any judgment or order rendered against me (whether by default or otherwise) ; 6. Entered into any settlement of an action or claim of; 7. Had any license, certification, employment, or volunteer position suspended, revoked, terminated, or adversely affected because of; 8. Resigned under threat of termination of employment or volunteerism for; 9. Had a report of child abuse or neglect made and substantiated against me for; or 10. Have any pending criminal charges against me in this or any other jurisdiction for; Any conduct, matter, or thing (irrespective of formal name thereof) constituting or involving (whether under criminal or civil law of any jurisdiction) : 1. Any felony; 2. Rape or other sexual assault; 3. Physical, sexual, emotional abuse and/or neglect of a minor; 4 . Incest; 5. Exploitation, including sexual, of a minor; 6. Sexual misconduct with a minor; 7. Molestation of a child; 8. Lewdness or indecent exposure; 9. Lewd and lascivious behavior; 10. Obscene or pornographic literature, photographs, or videos; 11. Assault, battery, or any violent offense involving a minor; 12. Endangerment of a child; 13. Any misdemeanor or other offense classification involving a minor or to which a minor was a witness; 14. Unfitness as a parent or custodian; 15. Removing children from a state or concealing children in violation of a court order; 16. Restrictions or limitations on contact or visitation with children or minors resulting from a court order protecting a child or minor from abuse, neglect, or exploitation; or 17. Any type of child abduction. Except the following (list all incidents, location, description, and date) (if none, write NONE) Signed Date Subscribed and sworn to (or affirmed) before me this day of Signature of notarial officer (seal, if any, of notarial officer) My commission expires: (b) The failure or refusal of the applicant to sign or provide the affidavit constitutes good cause for refusal to hire the applicant. Added by Acts 1997, 75th Leg. , ch. 1022, § 33, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg. , ch. 1129, § 3, eff. Sept. 1, 1999. § 42.060. CARBON MONOXIDE DETECTORS. (a) In this section, "carbon monoxide detector" means a device that detects and sounds an alarm to indicate the presence of a harmful level of carbon monoxide gas. (b) Except as provided by Subsection (d) , each day-care center, group day-care home, and family home must be equipped with carbon monoxide detectors in accordance with department rules. (c) The department by rule shall prescribe requirements regarding the placement, installation, and number of carbon monoxide detectors and maintenance procedures for those detectors. (d) A day-care center is exempt from the carbon monoxide detector requirements prescribed by this section if the day-care center is located in a school facility that is subject to the school facility standards adopted by the commissioner of education under Section 46.008, Education Code, or similar safety standards adopted by the board of a local school district. Added by Acts 2003, 78th Leg. , ch. 127, § 1, eff. Sept. 1, 2003. SUBCHAPTER D. REMEDIES § 42.0705. RANGE OF PENALTIES. The department shall revoke, suspend, or refuse to renew a license or registration, place on probation a person whose license or registration has been suspended, or reprimand a license holder or registration holder for a violation of this chapter or a rule of the board. If a license or registration suspension is probated, the department may require the license holder or registration holder to: (1) report regularly to the department on matters that are the basis of the probation; (2) limit services to the areas prescribed by the department; (3) continue or review professional education until the license holder or registration holder attains a degree of skill satisfactory to the department in those areas that are the basis of the probation; or (4) take corrective action relating to the violation on which the probation is based. Added by Acts 1997, 75th Leg. , ch. 1022, § 34, eff. Sept. 1, 1997. § 42.071. SUSPENSION, EVALUATION, OR PROBATION OF LICENSE OR REGISTRATION. (a) The department may suspend the license of a facility or the registration of a family home that has temporarily ceased operation but has definite plans for starting operations again within the time limits of the issued license or registration. (b) The department may suspend a facility's license or a family home's registration for a definite period rather than deny or revoke the license or registration if the department finds repeated noncompliance with standards that do not endanger the health and safety of children. To qualify for license or registration suspension under this subsection, a facility or family home must suspend its operations and show that standards can be met within the suspension period. (c) If the department finds a facility or family home is in repeated noncompliance with standards that do not endanger the health and safety of children, the department may schedule the facility or family home for evaluation or probation rather than suspend or revoke the facility's license or the family home's registration. The department shall provide notice to the facility or family home of the evaluation or probation and of the items of noncompliance not later than the 10th day before the evaluation or probation period begins. The department shall designate a period of not less than 30 days during which the facility or family home will remain under evaluation. During the evaluation or probation period, the facility or family home must correct the items that were in noncompliance and report the corrections to the department for approval. (d) The department shall revoke the license of a facility or the registration of a family home that does not comply with standards at the end of a license or registration suspension. (e) The department may suspend or revoke the license of a facility or the registration of a family home that does not correct items that were in noncompliance or that does not comply with required standards within the applicable evaluation or probation period. Acts 1979, 66th Leg. , p. 2365, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1983, 68th Leg. , p. 111, ch. 23, § 1, eff. Aug. 29, 1983; Acts 1987, 70th Leg. , ch. 1081, § 2, eff. Sept. 1, 1987; Acts 1997, 75th Leg. , ch. 1022, § 35, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997. § 42.0715. COSTS CHARGED TO FACILITY OR FAMILY HOME. The department may charge a facility or family home for reimbursement of the reasonable cost of services provided by the department in formulating, monitoring, and implementing a corrective action plan for the facility or family home. Added by Acts 1997, 75th Leg. , ch. 1022, § 36, eff. Sept. 1, 1997. § 42.072. LICENSE, LISTING, OR REGISTRATION DENIAL, SUSPENSION, OR REVOCATION. (a) The department may suspend, deny, revoke, or refuse to renew the license, listing, registration, or certification of approval of a facility or family home that does not comply with the requirements of this chapter, the standards and rules of the department, or the specific terms of the license, listing, registration, or certification. The department may revoke the probation of a person whose license, listing, or registration is suspended if the person violates a term of the conditions of probation. (b) If the department proposes to take an action under Subsection (a) , the person is entitled to a hearing conducted by the . State Office of Administrative Hearings. Proceedings for a disciplinary action are governed by the administrative procedure law, Chapter 2001, Government Code. Rules of practice adopted by the board under Section 2001.004, Government Code, applicable to the proceedings for a disciplinary action may not conflict with rules adopted by the State Office of Administrative Hearings. (c) A person whose license, listing, registration, or certification is revoked may not apply for any license, listing, registration, or certification under this chapter before the second anniversary of the date on which the revocation takes effect by department or court order. (d) The department by rule may provide for denial of an application or renewal for a licensed facility or for listing or registering a family home or may revoke a facility's license or a family home's listing or registration based on findings of background or criminal history as a result of a background or criminal history check. (e) A person may continue to operate a facility or family home during an appeal of a license, listing, or registration denial or revocation unless the revocation or denial is based on a violation which poses a risk to the health or safety of children. The department shall by rule establish the violations which pose a risk to the health or safety of children. The department shall notify the facility or family home of the violation which poses a risk to health or safety and that the facility or family home may not operate. A person who has been notified by the department that the facility or home may not operate under this section may seek injunctive relief from a district court in Travis County or in the county in which the facility or home is located to allow operation during the pendency of an appeal. The court may grant injunctive relief against the agency's action only if the court finds that the child-care operation does not pose a health or safety risk to children. A court granting injunctive relief under this subsection shall have no other jurisdiction over an appeal of final agency action unless conferred by Chapter 2001, Government Code. (f) The department shall deny an application or renewal for listing or registering a family home or shall revoke a family home's listing or registration if the results of a background or criminal history check conducted by the department under Section 42.056 show that a person has been convicted of an offense under Title 5, or 6, Penal Code, or Chapter 43, Penal Code. Acts 1979, 66th Leg. , p. 2365, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1983, 68th Leg. , p. 111, ch. 23, § 2, eff. Aug. 29, 1983; Acts 1993, 73rd Leg. , ch. 977, § 1, eff. Sept. 1, 1993; Acts 1995, 74th Leg. , ch. 76, § 5. 95 (49) , eff. Sept. 1, 1995; Acts 1997, 75th Leg. , ch. 1022, § 37, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 13, eff. Sept. 1, 1997; Acts 2001, 77th Leg. , ch. 218, § 11, eff. Sept. 1, 2001. § 42.073. EMERGENCY SUSPENSION AND CLOSURE OF A FACILITY OR FAMILY HOME. (a) The department shall suspend a facility's license or a family home's listing or registration and order the immediate closing of the facility or family home if: (1) the department finds the facility or family home is operating in violation of the applicable standards prescribed by this chapter; and (2) the violation creates an immediate threat to the health and safety of the children attending or residing in the facility or family home. (b) An order suspending a license, listing, or registration and an order closing a facility or family home under this section is immediately effective on the date on which the holder of the license, listing, or registration receives written notice or on a later date specified in the order. (c) An order is valid for 10 days after the effective date of the order. Acts 1979, 66th Leg. , p. 2366, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1993, 73rd Leg. , ch. 977, § 2, eff. Sept. 1, 1993; Acts 1995, 74th Leg. , ch. 76, § 5. 95 (49) , eff. Sept. 1, 1995; Acts 1997, 75th Leg. , ch. 1022, § 38, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 14, eff. Sept. 1, 1997. § 42.074 . INJUNCTIVE RELIEF. (a) When it appears that a person has violated, is violating, or is threatening to violate the licensing, certification, listing, or registration requirements of this chapter or the department's licensing, certification, listing, or registration rules and standards, the department may file a suit in a district court in Travis County or in the county where the facility or family home is located for assessment and recovery of civil penalties under Section 42.075, for injunctive relief, including a temporary restraining order, or for both injunctive relief and civil penalties. (b) The district court shall grant the injunctive relief the facts may warrant. (c) At the department's request, the attorney general or the county or district attorney of the county in which the facility or family home is located shall conduct a suit in the name of the State of Texas for injunctive relief, to recover the civil penalty, or for both injunctive relief and civil penalties as authorized by Subsection (a) . (d) Injunctive relief provided by this section is in addition to any other action, proceeding, or remedy authorized by law. It is not necessary to allege or prove in an action filed under this section that an adequate remedy at law does not exist or that substantial or irreparable harm would result from the continued violation. (e) The department is not required to give an appeal bond in an action arising under this section. Acts 1979, 66th Leg. , p. 2367, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1987, 70th Leg. , ch. 1052, § 4.09, eff. Sept. 1, 1987; Acts 1997, 75th Leg. , ch. 1022, § 39, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 15, eff. Sept. 1, 1997. § 42.075. CIVIL PENALTY. (a) A person is subject to a civil penalty of not less than $50 nor more than $100 for each day of violation and for each act of violation if the person: (1) threatens serious harm to a child in a facility or family home by violating a provision of this chapter or a department rule or standard; (2) violates a provision of this chapter or a department rule or standard three or more times within a 12-month period; or (3) places a public advertisement for an unlicensed facility or an unlisted or unregistered family home. (b) The civil penalty authorized by this section is cumulative and in addition to the criminal penalties and injunctive relief provided by this chapter. Acts 1979, 66th Leg. , p. 2367, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1997, 75th Leg. , ch. 1022, § 40, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 16, eff. Sept. 1, 1997. § 42.076. CRIMINAL PENALTIES. (a) A person who operates a child-care facility or child-placing agency without a license commits a Class B misdemeanor. (b) A person who operates a family home without a required listing or registration commits a Class B misdemeanor. (c) A person who places a public advertisement for an unlicensed facility or an unlisted or unregistered family home commits a Class C misdemeanor. (d) It is not an offense under this section if a professional provides legal or medical services to: (1) a parent who identifies the prospective adoptive parent and places the child for adoption without the assistance of the professional; or (2) a prospective adoptive parent who identifies a parent and receives placement of a child for adoption without assistance of the professional. Acts 1979, 66th Leg. , p. 2367, ch. 842, art. 1, § 1, eff. Sept. 1, 1979. Amended by Acts 1985, 69th Leg. , ch. 915, § 2, eff. Sept. 1, 1985; Acts 1995, 74th Leg. , ch. 411, § 2, eff. Sept. 1, 1995; Acts 1997, 75th Leg. , ch. 664, § 5, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1022, § 41, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 17, eff. Sept. 1, 1997. § 42.077. NOTICE OF ACTION AGAINST FACILITY OR FAMILY HOME. (a) If the department revokes or suspends a facility's license or a family home's listing or registration, the department shall publish notice of this action in a newspaper of general circulation in the county in which the facility or family home is located. The newspaper shall place the notice in the section in which advertisements for day-care services are normally published. (b) If a person who operates a facility or family home that has had its license, listing, or registration revoked or suspended later applies for a new license, listing, or registration to operate the same facility or family home, the department shall charge the person an application fee in an amount necessary to reimburse the department for the cost of the notice relating to that facility or family home. (c) The department shall pay for publication of the notice from funds appropriated to the department for licensing and regulating child-care facilities and for listing, registering, and regulating family homes and from appeal and application fees collected under Subsection (b) and appropriated to the department. (d) A facility or family home that has its license, listing, or registration revoked or suspended shall mail notification of this action by certified mail to the parents or guardian of the child served by the facility or family home. The facility or family home shall mail the notification within five days of the effective date of the revocation or suspension of the license, listing, or registration. (e) When the most recent federal census shows that more than one-half of the population in a municipality or in a commissioners precinct in a county in which a family home whose listing or registration has been revoked or suspended is located is of Hispanic origin or Spanish-speaking, the department shall publish the notice under Subsection (a) in both English and Spanish. Amended by Acts 1997, 75th Leg. , ch. 1022, § 42, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1063, § 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg. , ch. 1217, § 18, eff. Sept. 1, 1997. § 42.078. ADMINISTRATIVE PENALTY. (a) The department may impose an administrative penalty against a facility or family home licensed or registered under this chapter that violates this chapter or a rule or order adopted under this chapter. Nonmonetary, administrative penalties or remedies including but not limited to corrective action plans, probation, and evaluation periods shall be imposed when appropriate before monetary penalties. (b) Each day a violation continues or occurs is a separate violation for purposes of imposing a penalty. The penalty for a violation may be in an amount not to exceed the following limits, based on the number of children receiving care at the facility or family home at the time of the violation: Number of children Maximum amount of penalty 20 or less $20 21-40 $30 41-60 $40 61-80 $50 81-100 $75 More than 100 $100 (c) The amount of the penalty shall be based on: (1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of any prohibited acts, and the hazard or potential hazard created to the health, safety, or economic welfare of the public; (2) the economic harm to property or the environment caused by the violation; (3) the history of previous violations; (4) the amount necessary to deter future violations; (5) efforts to correct the violation; and (6) any other matter that justice may require. (d) Monetary penalties shall not be assessed for violations of clerical errors or standards which do not clearly apprise the facility or family home of the action required by the standard. (e) If the executive director determines that a violation has occurred, the executive director may issue a recommendation on the imposition of a penalty, including a recommendation on the amount of the penalty. (f) Within 14 days after the date the recommendation is issued, the executive director shall give written notice of the recommendation to the person owning or operating the facility. The notice may be given by certified mail. The notice must include a brief summary of the alleged violation and a statement of the amount of the recommended penalty and must inform the person that the person has a right to a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty. (g) Within 20 days after the date the person receives the notice, the person in writing may accept the determination and recommended penalty of the executive director or may make a written request for a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty. (h) If the person accepts the determination and recommended penalty of the executive director or fails to respond to the notice in a timely manner, the executive director shall issue an order and impose the recommended penalty. (i) If the person requests a hearing, the executive director shall set a hearing and give notice of the hearing to the person. The hearing shall be held by an administrative law judge of the State Office of Administrative Hearings. The administrative law judge shall make findings of fact and conclusions of law and issue a final decision finding that a violation has occurred and imposing a penalty or finding that no violation occurred. (j ) The notice of the administrative law judge's order given to the person under Chapter 2001, Government Code, must include a statement of the right of the person to judicial review of the order. (k) Within 30 days after the date the administrative law judge's order becomes final as provided by Section 2001.144, Government Code, the person shall: (1) pay the amount of the penalty; (2) pay the amount of the penalty and file a petition for judicial review contesting the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty; or (3) without paying the amount of the penalty, file a petition for judicial review contesting the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty. (1) Within the 30-day period, a person who acts under Subsection (k) (3) may: (1) stay enforcement of the penalty by: (A) paying the amount of the penalty to the court for placement in an escrow account; or (B) giving to the court a supersedeas bond that is approved by the court for the amount of the penalty and that is effective until all judicial review of the order is final; or (2) request the court to stay enforcement of the penalty by: (A) filing with the court a sworn affidavit of the person stating that the person is financially unable to pay the amount of the penalty and is financially unable to give the supersedeas bond; and (B) giving a copy of the affidavit to the executive director by certified mail. (m) On receipt of a copy of an affidavit under Subsection (1) (2) , the executive director may file with the court, within five days after the date the copy is received, a contest to the affidavit. The court shall hold a hearing on the facts alleged in the affidavit as soon as practicable and shall stay the enforcement of the penalty on finding that the alleged facts are true. The person who files an affidavit has the burden of proving that the person is financially unable to pay the amount of the penalty and to give a supersedeas bond. (n) If the person does not pay the amount of the penalty and the enforcement of the penalty is not stayed, the executive director may refer the matter to the attorney general for collection of the amount of the penalty. (o) Judicial review of the order: (1) is instituted by filing a petition as provided by Subchapter G, Chapter 2001, Government Code; and (2) is under the substantial evidence rule. (p) If the court sustains the occurrence of the violation, the court may uphold or reduce the amount of the penalty and order the person to pay the full or reduced amount of the penalty. If the court does not sustain the occurrence of the violation, the court shall order that no penalty is owed. (q) When the judgment of the court becomes final, the court shall proceed under this subsection. If the person paid the amount of the penalty and if that amount is reduced or is not upheld by the court, the court shall order that the appropriate amount plus accrued interest be remitted to the person. The rate of the interest is the rate charged on loans to depository institutions by the New York Federal Reserve Bank, and the interest shall be paid for the period beginning on the date the penalty was paid and ending on the date the penalty is remitted. If the person gave a supersedeas bond and if the amount of the penalty is not upheld by the court, the court shall order the release of the bond. If the person gave a supersedeas bond and if the amount of the penalty is reduced, the court shall order the release of the bond after the person pays the amount. (r) A penalty collected under this section shall be sent to the comptroller for deposit in the general revenue fund. (s) All proceedings under this section are subject to Chapter 2001, Government Code. Added by Acts 1997, 75th Leg. , ch. 1022, § 43, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg. , ch. 1129, § 4, eff. Sept. 1, 1999. Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: March 14, 2006 Item Number: 4 Department: Finance (City Secretary's Use Only) Prepared By: Larry Williamson Account Code: Date Prepared: Larry Williamson Budgeted Amount: Exhibits: One Subject Consider presentation by Rutledge, Crain & Company, P.C., and act upon and place on file, the Comprehensive Annual Financial Report(CAFR). Recommendation Motion to approve the Comprehensive Annual Financial Report for the period ending September 30, 2005. Discussion The City Charter Article VII, Municipal Finance, Section 13: Independent Audit, requires that at the end of the fiscal year an independent audit be made of all accounts of the City by a certified public accountant. In compliance with the City Charter, Rutledge Crain & Company, P.C., Auditor, has performed an audit as of September 30, 2005. This is the third year for the audit to be performed by Rutledge Crain & Company, PC. Mr. Lewis Crain will briefly present the CAFR, including the Independent Auditors' Report, and answer any questions that the City Council may have regarding the report. Approved By Initial Date Department Director -4 City Manager /tf9€ Page 1 of 1 RUTLEDGE CRAIN & COMPANY, PC CERTIFIED PUBLIC ACCOUNTANTS 2401 Garden Park Court, Suite B Arlington, Texas 76013 December 22, 2005 To the Members of the City Council City of Wylie, Texas in planning and performing our audit of the basic financial statements of the City of Wylie, Texas for the year ended September 30, 2005, we considered its internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on internal control. However,we noted certain matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely affect the City of Wylie's ability to record, process, summarize, and report financial data consistent with the assertions of management in the basic financial statements. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or fraud in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of internal control would not necessarily disclose all matters in internal control that might be reportable conditions and,accordingly,would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we noted the following reportable conditions that we believe to be material weaknesses. 1. Maintenance of General Ledger The general ledger is the summary record of the City's financial transactions and is the starting point for preparing the City's financial statements. We began the audit on December 12, 2005 and found the following conditions which affected the general ledger as of September 30, 2005: a. Fund balance per the general ledger did not reconcile to the previous years ending fund balance by the amounts indicated: (1) General Fund $134,030.70 (2) Park Acquisition and Improvement 3,166.00 Members: Metro(817)265-9989 American Institute of Certified Public Accountants Fax(817)861-9623 Texas Society of Certified Public Accountants To the Members of the City Council December 22, 2005 Page 2 (3) Emergency Communication Fund 10,000.00 (4) Debt Service Fund 2,629.27 (5) Utility Fund 2,388,750.04 (6) Fleet Replacement 235,185.04 (7) WEDC General Fund 6,727.68 b. Numerous audit adjustments made for the prior year were either misposted to the general ledger or not posted at all. c. Numerous liability accounts had mispostings to the accounts resulting in debit balances; and some asset accounts had mispostings to the accounts resulting in credit balances. d. The capital assets had not been maintained for the year by adding additions and removing retirements of capital assets. e. The long-term debts fund had not been maintained for the year by adding additions from issuance of new bonds and recording retirements of bond payments. We recommend that the director of finance review monthly general ledger accounts to insure that account balances make sense. 2. /Minutes of Board Meetings When we requested copies of the minutes of the board of directors for the Wylie Economic Development Corporation (WEDC), we were informed that minutes for several months meetings had not been prepared. Minutes of the board of directors are public records and must be kept up to date. We recommend that minutes of the board of directors be prepared immediately after completion of the meetings. 3. V Deposits Cash and investments of WEDC are considered public funds and as such are subject to the Public Funds Investment Act. At September 30, 2005,the corporation had deposited amounts in excess of the federal deposit insurance corporation limits at a bank other than the City's depository. We recommend that all excess funds be deposited with the City's depository to insure that amounts are properly secured. 4. V Related Party Transactions As disclosed in the footnotes to the financial statements, WEDC obtained a loan in the amount of$878,372 from a bank whose president is the chairman of the board of WEDC. Additionally, $154,491 was deposited with this bank although the bank is not the City's official depository. To the Members of the City Council Page 3 December 22, 2005 We recommend that the City and WEDC develop a joint policy which prohibits related party transactions as a matter of public policy. 5. i Accounting and Administration WEDC has an agreement with the City to maintain its general ledger. The numerous transactions entered into by WEDC are complicated, and require detailed coordination between WEDC and the finance department to insure that the transactions are recorded properly and contemporaneously. However, the information provided to the finance department is sporadic and incomplete at best. We recommend that the executive director of WEDC meet with the director of finance and develop a methodology to insure that all transactions are recorded properly as they occur. 6. Developer Contributions Generally accepted accounting principles for governments require that the value of water and sewer infrastructure accepted by the City from developers be recorded as a part of the water and sewer system of the City. GASB 34 expanded this requirement to include streets,sidewalks,and storm drainage systems accepted by the City. We recommend that the City implement a system to insure that all future developments be recorded when accepted by the City. This comment was made in last year's audit. We recommend that a system be implemented which will insure that infrastructure of all developments accepted by the City be recorded in the general ledger. This system will require close coordination between the engineering and finance departments. We also noted the following reportable conditions that are not believed to be material weaknesses. 7. Capital Assets The City has a significant investment in capital assets, including large additions to plant, property and equipment in the current year. In conjunction with the conversion to GASB 34, capital assets were reviewed and reconciled to the books, resulting in a significant adjustment to the financial statements. We recommended that the City inventory all capital assets and take the additional step of placing permanent inventory labels on all capital assets. This recommendation is made again for the current year. Periodic inventories of capital assets should be taken to insure that the records remain accurate. 8. Depreciation of Capital Assets One of the requirements of GASB 34 is that all depreciable capital assets be recorded and the depreciation be charged to the various departments in the government wide financial statements. The City installed a new general ledger system which includes a module for depreciation of capital assets. We recommended that the City implement use of the To the Members of the City Council December 22, 2005 Page 4 depreciation module for all depreciable capital assets. However,this recommendation has not been implemented. We recommend that the City immediately input the capital assets into the fixed asset module to improve accountability. Other Matters The following matters are not reportable conditions, but are items which should be considered because they affect internal financial statements which the City uses to accomplish its financial duties: 9. Municipal Court Operations In accordance with GASB 33, fines and fees should be recorded in the general ledger (fines receivable, allowance for uncollectible accounts, revenue and adjustments). The municipal court monthly operating cycle should be reviewed and documented. Monthly closing procedures should include tests of each stage of the cycle and reconcilement of detail account balances with the general ledger. We recommend the director of finance and municipal court personnel record these operating procedures and determine the form and content of monthly activity documentation to assist with monthly closings. 10. Implementation of GASB 42 The Governmental Accounting Standards Board (GASB) has issued Governmental Accounting Standards Board Statement 42 which will take effect for the fiscal year ended September 30, 2006. This new statement addresses where and how impairments and insurance recoveries are presented in the financial statements. 11. Implementation of GASB 44 The Governmental Accounting Standards Board (GASB) has issued Governmental Accounting Standards Board Statement 44 which will take effect for the fiscal year ended September 30, 2006. The effect of GASB 44 is to drastically change the content of the statistical tables in the City's Comprehensive Annual Financial Report. Preparation of these new statistical tables will require some time, since the presentations required include ten years of information. The Governmental Financial Officer's Association (GFOA) has just released the latest update to Governmental Accounting,Auditing,and Financial Reporting, by Stephen Gauthier, 2005, which contains examples of the implementation of GASB 44. We recommend that the Director of Finance obtain a copy of GASB 44 and the publication by the GFOA and start gathering the appropriate information to prepare the new statistical tables. ••• To the Members of the City Council December 22, 2005 Page 5 The City's finance department devoted long hours in preparing for the audit and in assisting us during the audit by performing analysis and researching the numerous questions which came up during the audit. We want to express our thanks to the Finance Director, his staff, and all other members of the City staff for their assistance. It is our understanding that the finance director has had discussions with the executive director of WEDC on items in this management letter and is preparing a memorandum to WEDC on these and other issues not mentioned in this management letter. ••• The foregoing conditions were considered in determining the nature, timing and extent of audit tests to be applied in our examination of the financial statements, and this report of such condition does not modify our report dated December 22,2005 on such financial statements. We would be pleased to discuss our recommendations in more detail and to assist in implementing them at your request. This report is intended solely for the information and use of the City Council, management, and others within the administration and is not intended to be and should not be used by anyone other than these specified parties. This restriction is not intended to limit distribution of this report, which, upon acceptance is a matter of public record. Very truly yours, �/�1 e,i, C Finance Department Memorandum To: Lewis Crain, City Auditor From: Larry Williamson, Finance Director Date: March 6, 2006 Subject: Responses to Auditor's Management Letter CC: Mark Roath, City Manager John Mondy, Mayor Eric Hogue, Mayor Pro Tem Earl Newsom, Councilmember Reta Allen, Councilmember Merrill Young, Councilmember Rick White, Councilmember The Finance Department has received a copy of your Management Letter to City Council. As is the practice, the Finance Department has reviewed your letter and puts forth in this memorandum our opinions regarding your findings and recommendations, as well as the steps that will be taken to address those areas of concern. This memo is in keeping with that practice. 1. Maintenance of General Ledger All audit adjustments will be entered to the general ledger and accounts will be balanced to the working trial balance from the auditors as of 9/30/05. From this point, the general ledger accounts will be reviewed on a monthly basis to be sure no mispostings have occurred and that accounts have the proper debit or credit balance. By assigning responsibility for specific accounts to various finance personnel, we will avoid this problem for next year's audit and be able to provide more accurate management reports during the year. 2. Minutes of Board Meetings We concur with the Auditors findings and endorse their recommendation. In a memo Dated February 3, 2006, the Finance Department brought this issue along with other issues to the attention of Sam Saterwhite, Executive Director of WEDC (see Exhibit A). 3. Deposits We concur with the Auditors findings and endorse their recommendation. In a memo Dated February 3, 2006, the Finance Department brought this issue along with other issues to the attention of Sam Saterwhite, Executive Director of WEDC. 4. Related Party Transactions We concur with the Auditors findings and endorse their recommendation. In a memo Dated February 3, 2006, the Finance Department brought this issue along with other issues to the attention of Sam Saterwhite, Executive Director of WEDC. 5. Accounting and Administration We concur with the Auditors findings and endorse their recommendation. In a memo Dated February 3, 2006, the Finance Department brought this issue along with other issues to the attention of Sam Saterwhite, Executive Director of WEDC. 6. Developer Contributions The engineering department has agreed to notify the finance department of all developments accepted by the city as soon as they occur. Their notification will include information for the valuation of the water and sewer infrastructure, streets, sidewalks, and storm drainage required in GASB 34. This information will be added to the fixed assets module in a timely manner where the value is recorded and future depreciation will be calculated. 7. Capital Assets The fixed assets module can also be used to track inventory. The finance department has purchased a scanning system to track and inventory assets by bar code labels. With the purchase of the scanning system, we will implement inventory records this year and conduct annual inventory checks each year after. 8. Depreciation of Capital Assets The fixed assets module in the INCODE software package will be implemented this year, thus calculating all depreciation for capital assets. Current information will be much easier to record than historical information where original cost and accumulated depreciation need to be calculated through the current year. The project will be time consuming but we plan to have this module completely functional before the next year end audit. 9. Municipal Court Operations Currently, fines receivables and allowance for uncollectible accounts is entered in the general ledger at year end only. The auditor's recommendation is to record these items on a monthly basis. Because our court system does not interface with the INCODE software for the general ledger, we will have to work with court personnel to devise procedures for accurately calculating the receivables using the software they have. 10. Implementation of GASB 42 GASB 42 does not currently apply to the City of Wylie. The city has not made any commitments to retirees for future benefits other than what they will receive through TMRS. 11. Implementation of GASB 44 As recommended by the auditors, we will obtain a copy of GASB 44 and the publication by the GFOA so that we may begin gathering the appropriate information to prepare the new statistical tables and become familiar with the requirements before the next year end audit. Exhibit A To: Sam Saterwhite From: Larry S. Williamson Date: February 3, 2006 RE: Areas of concern The Finance Department's staff has raised a number of issues regarding the Wylie Economic Development Corporation. Other issues have been brought to our attention by the city's auditors and others by different city departments. Some of the more significant issues will most likely appear in the auditor's Management Letter to Council. It is my hope that many of the issues covered in this report can be resolved before they appear in this public forum. Combined, these issues include questionable expenditures, violations of the Open Meetings Act, violations of the Public Funds Investment Act, improper bidding procedures and evaluation of bids, conflicts of interest and related party transactions, and financial reporting. This review is limited in its nature and scope. Consequently, this report should not be construed as an Audit of WEDC, but only as a management report on certain issues that have come to our attention. The Finance Department is very cognizant of the saying "He who lives in a glass houses should not throw stones". The Finance Department is a glass house and has a lot of work to do, but while we are working on our department, we still have city wide financial responsibilities that must be addressed at the same time. This memo is in keeping with that responsibility. The report represents the facts as they are known to us. We try not to draw conclusions. It is hoped that these issues and concerns can be discussed and resolved with the Executive Director and the WEDC board. Board Minutes The Open Record Act requires that WEDC keep minutes of its board meetings and that they be available for review. The Finance Department and the city auditors have requested these minutes and have been informed that a number of the required board minutes are not available. Recommendation: Hire a secretary or outsource this job function. Investments of Public Funds The Public Funds Investment Act prohibits an individual from making investments of governmental funds without being a "Certified Investment Officer" and requires deposits to be collateralized for amounts over the FDIC insurance limits. WEDC made a deposit in the amount of$154,490.61 to Inwood National Bank. It appears from our records that at the time the deposit was made adequate collateral was not pledged in the proper manner for the amount of the deposit over that which is covered by FDIC insurance. Recommendation: All fund should be in the city's depository and part of the city's pooled cash accounts. Questionable Expenses In reviewing WEDC monthly expenses, there are a number of expenses that appear to be personal in nature and expenses that appear to have little to do with economic development. Section 4.04(4) a (1) of the WEDC By-Laws requires WEDC to make a detailed report to the City Council on or before January 31 of each year. This report among other things requires all expenditures incurred by WEDC to be reported to council and for the council to approve the report. Recommendation: Prohibit personal expenses and report all expenditures to the City Council as required by WEDC's By-Laws. Bid Procedures and Evaluation On June 17, 2005 WEDC issued an RFP for a financing in the amount of$1,245,038. The RFP was submitted to American National Bank of Wylie and Inwood National Bank of Wylie. The RFP requested(3) financing options: Option"A" detailing a fixed interest rate with maximum number of years; Option`B" detailing a fixed interest rate for"x"years, a floating rate thereafter, adjusted annually with a floor and ceiling and the key indicator from which the floating rate will be determined;. Option"C" detailing a floating rate adjusted annually. Both bidders submitted proposals. American National Bank submitted a bid on each of the three options as they were requested in the RFP. Inwood National Bank submitted a bid on Option B and Option C and a third financing proposal offering the first 5 year fixed and a second 5 year term fixed. This option was not requested in the RFP and should have been considered as non-responsive. WEDC however, accepted Inwood National Bank's (2) five year fixed rate terms as being responsive to the RFP. WEDC then compared the Inwood National Bank proposal to American National Bank's proposal on Option A. This was not a valid comparison. WEDC did not go back to American National Bank as it should have to see what American National Bank would propose on (2) 5 year fixed rate terms if in fact this structure was what WEDC wanted. Finally, in the recommendation to the board, the Executive Director used Inwood's (2) 5 year fixed rate terms to compare with American National Bank's 10 year fixed rate proposal. This comparison was also not financially valid. Recommendation: Prohibit doing business with members of the Board and contract with the Finance Department or an outside vendor (First Southwest Company) for these services. Related Party Transactions General Accounting Standards Board requires the city to footnote in their Comprehensive Annual Financial Reports (CAFR) any "Related Party Transactions". For the year ending September 30, 2005, WEDC had three such transactions. The first was for $16,000 in which WEDC contracted with JC Worley's firm while he was a sitting member of the City Council and the second and third was with Marvin Fuller for $878,372 and $154,490.61 while Mr. Fuller was chairman of the WEDC. The $878,372 transaction was the subject of the "Bid Procedures and Evaluation" section of this report. Recommendation: Prohibit related party transactions. WEDC's relationship with Administrative Departments The Executive Director of WEDC has on numerous occasions requested and received work and materials directly from city departments. This practice circumvents the City Manager's authority and co-mingles expenses between separate reporting entities. This practice is prohibited in the Corporation's by-laws under section 4.14. It states that all requests for services or materials must be made through the City Manager's Office. Recommendation: Comply with WEDC's By-Laws Insurance Premium Payments During the audit it came to our attention that WEDC has not been paying the city for its general liability or E&O insurance. Recommendation: The Finance Department will bill.WEDC for their portion of general liability and E&O insurance carried by the City on their behalf. Lack of timely financial reporting Information regarding transactions of WEDC are not received from WEDC in a timely manner and the nature of the transactions is sometime not explained correctly. This creates financial reports that do represent the true financial transactions of WEDC and adds to the risk of prior year adjustments. Recommendation: Meet with the Finance Department early on so that transactions are understood and booking of those transactions can take place in a timely manor. Finally, this is a management report whose purpose it is to point out areas of concern. We understand that there are two sides to any issue and look forward to our discussions with WEDC. It is hoped that solutions can be found that both the city and WEDC can operate under. Many of these concerns can be resolved simply by WEDC following their By- Laws. Other may require new policies and procedures. r r�Y; ,.1.- • yr::..• ,.. { e£.f }} - • 1' r , " M . .«: • "..x..«- -r: , .::. ,.,r..,....+:' ., ...;.•er„ai-." im- - r • r .:^. ^wt+r ,I+:'non� , "„ *• r 'y�., :, ,a , i-L , in: . a_k - e.'z r° »t, :f F i' { fir'' y, v {{1 . . ili .I I '.. , , . kCOMPREHENSIVE ,,,. , 1. , G 1 L- -Gial Repo' : • • : ..., , � ` , .„ " i.-, lr� , ,.. I'. I>.;x' f, �fF" i ` t , r h"� r • f , r x� r n _q4 , j r. ; .., tva,.. s: ( " 1,;= w, - - ,fir,,;""•` - .):.:,,:-4..''Ii'.-'„-',*',,,.,-;.,,,.,,-;,.',",,kL"_,.'„'"'',,-''„'::„'..„-,,.', 4;w nWylie1 _x. 1 ,4 ,w F; F' r': .;:r t f_ TEXAS,:*':,:::---..'-1;';.-,.':Ir!;;-,P,:-,-,z1q:.i• .-'-'-':,_.,,,4.,-:,.,'.,;:.)-::„--,T.--'.--,,;,“::,',-e4c'4-V.,;:,:.;.r.,,,,,,:::.H.,, ..:" '",::,-,-,.:„.'-,'E- 4r.t,.fi I ',.,. .. ,. ' -'.�<-..' - ram=a", ✓+ - ` 01 �j ''1 i . r A :s. r • , �'.0 -mod:':. :. 7'r. 2'^ S.�risw..�'d%, fy�t- -�•' • p .,',4,,.', " ra, W,a _ tl ,4;74*- y ",w 4 ''r 4},,.y • if`. i� d F-` 3�• . 5' M1( r, h4'.�nn.Yi.i1 a u.» ,.: .,. _a,-," ,.c:nt... . _ r-":.:'rw' ,rv.,ti'".rrr^. _ - 1 a S"i.'�'�sy."i" 'F ▪ f'" } .`t,iya t'' f s;-�v ., ��"ate"�,� ' --�.��-�;.,:„�F.;`._ _ «oY i` - s-• x " ..: I .,, ., # ..:, :s.,,oar •� :„t:,c.,-.,. ,,'.._,-..-r } - - `4 i; ' _ t. y?. rk. •„k'a ze ;'�3 r.a .r' ,.r, a« m.,�` "�`` ;y• �`r'` r:=i=� Ott, z l . - ,F , :- .4 •r yF �x '+ y x 1, - °i r. - _ CITY OF WYLIE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2005 Prepared by Finance Department Larry Williamson, Finance Director Ron Hutchison,Assistant Finance Director CITY OF WYLIE, TEXAS .. COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2005 TABLE OF CONTENTS Page Exhibit/Table INTRODUCTORY SECTION Letter of Transmittal 1 GFOA Certificate of Achievement 5 Organizational Chart 6 List of Principal Officials 7 FINANCIAL SECTION Independent Auditors' Report on Financial Statements 11 Management's Discussion and Analysis (Required Supplementary Information) 15 Basic Financial Statements Government-wide Financial Statements: Statement of Net Assets 25 Exhibit A-1 Statement of Activities 26 Exhibit A-2 Fund Financial Statements: Balance Sheet-Governmental Funds 28 Exhibit A-3 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 31 Exhibit A-4 Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds 32 Exhibit A-5 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 35 Exhibit A-6 Statement of Net Assets - Proprietary Funds 36 Exhibit A-7 Statement of Revenues, Expenses, and Changes in Fund Net Assets- Proprietary Funds 37 Exhibit A-8 Statement of Cash Flows- Proprietary Funds 38 Exhibit A-9 Notes to the Financial Statements 39 Required Supplementary Information: Budgetary Comparison Schedules: General Fund 64 Exhibit B-1 4B Sales Tax Revenue Fund 66 Exhibit B-2 CITY OF WYLIE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT -� FOR THE YEAR ENDED SEPTEMBER 30, 2005 TABLE OF CONTENTS Page Exhibit/Table Combining Statements and Budgetary Comparison Schedules as Supplementary Information: Combining Balance Sheet-All Nonmajor Governmental Funds 70 Exhibit C-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances-All Nonmajor Governmental Funds 71 Exhibit C-2 Special Revenue Funds: Combining Balance Sheet- Nonmajor Special Revenue Funds 72 Exhibit C-3 Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Nonmajor Special Revenue Funds 73 Exhibit C-4 Budgetary Comparison Schedules: Park Acquisition and Improvement 74 Exhibit C-5 Emergency Communication Fund 75 Exhibit C-6 Fire Training Center 76 Exhibit C-7 WIMP Debt Service Funds: Combining Balance Sheet- Nonmajor Debt Service Funds 77 Exhibit C-8 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Debt Service Funds 78 Exhibit C-9 OMR Budgetary Comparison Schedules: General Obligation Debt Service 79 Exhibit C-10 — 4B Debt Service 1996 80 Exhibit C-11 4B Debt Service 2005 81 Exhibit C-12 Capital Projects Funds: Combining Balance Sheet- Nonmajor Capital Projects Funds 82 Exhibit C-13 Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Nonmajor Capital Projects Funds 83 Exhibit C-14 Discrete Component Unit -- Budgetary Comparison Schedules: Economic Development Corporation 84 Exhibit C-15 "" Nom 11 CITY OF WYLIE, TEXAS — COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2005 TABLE OF CONTENTS Page Exhibit/Table STATISTICAL SECTION Government-wide Expenses by Function 86 Table D-1 Government-wide Revenues 88 Table D-2 General Governmental Expenditures by Function 90 Table D-3 General Governmental Revenues by Source 92 Table D-4 Property Tax Levies and Collections 94 Table D-5 Assessed and Estimated Actual Value of Property 95 Table D-6 Property Tax Rates- Direct and Overlapping Governments 96 Table D-7 Principal Taxpayers 97 Table D-8 Special Assessment Billings and Collections 98 Table D-9 Computation of Legal Debt Margin 99 Table D-10 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 100 Table D-11 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures 101 Table D-12 Computation of Direct and Overlapping Bonded Debt-General Obligation Bonds 102 Table D-13 Revenue Bond Coverage 103 Table D-14 Demographic Statistics 104 Table D-15 �,. Property Value, Construction and Bank Deposits 105 Table D-16 Miscellaneous Statistics 106 Table D-17 Largest Water Utility Customers 107 Table D-18 Schedule of Water and Sewer Rates 108 Table D-19 Schedule of Insurance in Force 109 Table D-20 III 1111100 Now This page is left blank intentionally. MINIMP MIN MEM iv xtudb PIWto Introductory Section V IMP This page is left blank intentionally. WNW IOW IOW IMMO 110. WIMP vi R■iRuNaNa: . i■ RRRRR/RRI•/' /M w■/uRRr4r.1. Our Mission.. 11 R aaaua u Ar4! 1°'CIRRI/ ...to be responsible stewards of the public trust, IMP Arm '111111111111/!♦i♦ 111r NAIL ./Ol•=111 to strive for excellence in public service,and r411111.1/111111M1111111A11111 to enhance the quality of life for all. r gurordrr;+i%ritti January 31, 2005 The Honorable John Mondy, Mayor Members of the City Council And the Citizens City of Wylie,Texas Financial policies of the City of Wylie require that the City's Finance Department prepare a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Accordingly, the Comprehensive Annual Financial Report(CAFR) for the City of Wylie, Texas for the fiscal year ended September 30,2005, is hereby issued. 501 This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making the representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute assurance, that the financial statements will be free from material misstatement. As management,we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City's financial records have been audited by Rutledge Crain & Company, PC, Certified Public Accountants, as required by the City Charter. This CAFR has been prepared based upon those audited records. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2005, are free of material misstatement. This independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the fiscal year ended September 30, 2005, are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial section of this report. 2000 Highway 78 North • Wylie,Texas 75098 • (972)442-8100 • Fax(972)442-4302 IOW GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction .,. with it. The City's MD&A can be found immediately following the report of the independent auditor. Profile of the City The City of Wylie is located in the south central portion of Collin County, approximately 23 miles northeast of downtown Dallas. Incorporated in 1887, the City adopted its Home Rule Charter on January 19, 1985, and operates under a council-manager form of government. The City Council is WOW comprised of a Mayor and six council members. All members are elected at-large on a staggered and nonpartisan basis for three-year terms. They are responsible to enact local legislation, provide policy, and annually adopt the operating budget. They appoint the City Manager, City Attorney, Judge of the ..,,, Municipal Court and members of various boards and commissions. The City Manager, under the oversight of the City Council, is responsible for the proper administration of the daily operations of the City. The City provides a full range of municipal services including general government, public safety, police, fire, emergency communications), streets, library, parks and recreation, planning and zoning, code enforcement, animal control, and water and sewer utilities. Sanitation services are provided by the City but are privately contracted. The Wylie Economic Development Corporation (WEDC) is included in the financial statements as a component unit is. Its purpose is to aid, promote and further the economic development within the City. The Wylie Park and Recreation Facilities Development Corporation (4B Corporation) is combined within the financial statements of the City. Both WEDC and the 4B Corporation are primarily funded with sales tax revenues. Both corporations are discussed more fully in the notes to the financial statements. The annual budget of the City serves as the foundation for its financial planning and control. The •- budget is proposed by the City Manager and adopted by the City Council in accordance with policies and procedures established by the City Charter, Council ordinances and state law. The budget process begins each year with departmental requests to the City Manager. After departmental review by the City Manager, a proposed budget is prepared for presentation to the City Council. The City Council reviews the budget in subsequent work sessions and a formal budget is prepared and made available to the public for review by August 5th each year. Prior to official adoption of the budget by council, a public hearing on the proposed budget is held to allow for public input. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered ... from the broader perspective of the specific environment within which the City of Wylie operates. Local economy 11110. Fast paced growth is currently one of the identifying characteristics of the City. The 2005 population of the City has been estimated to be 29,800. This represents a 14.0% increase over the previous year. The trend of fast paced growth is continuing into fiscal year 2006. The tremendous growth in NAM population has also brought about a large growth in residential construction. Residential construction permits actually fell 20.4% from the previous year but even with the decrease 1,020 permits were issued during fiscal year 2005. It is estimated that this new residential construction added $148.3 million to our local tax base. When both residential and commercial growth is considered our total tax .,,, base has grown by 23.4% over the previous year. Our tax value this year, as provided by the Collin County Appraisal District, has grown to $1,395.3 million. The end result of the growth is a favorable economic environment within the City of Wylie and recognition as one of the fastest growing areas in Collin County and the Dallas-Ft.Worth Metroplex. "" MOW Long-term financial planning In 2005, the City developed a long-term Capital Improvement Program for major infrastructure improvements. The plan included street and park improvements, a new city hall, library, fire station, recreation center and sidewalks. The voters of the City of Wylie authorized the City to issue $73,950,000 in General Obligation Bonds to fund this capital improvement program. The first series of bonds are scheduled to be sold in late March of 2006. Cash management The City currently utilizes American National Bank as the city depository. All City funds are deposited into the city depository on a daily basis. Bank deposits are secured by allowable securities and held as collateral at the Federal Reserve Bank. The market value of the pledged collateral must be equal to 4.4 or greater than 102% of the principal and accrued interest for cash balances in excess of the FDIC insurance coverage. City officials, as allowed by the City Investment Policy and Texas statutes, invest cash balances during the year. The three overall objectives of the City's investment policy, in their order of importance, are the preservation and safety of principal, liquidity and yield. At September 30, 2005, the fair market value of the City's investment portfolio was $29,204,146. During the year, the overall portfolio provided$881,119 in investment income. Risk management The City is exposed to various risk of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During FY2005, the City purchased general liability, property, public official and police professional liability insurance from the Texas Municipal League Intergovernmental Risk Pool (the Pool). In addition, the City's worker compensation insurance is also with the Pool. United Healthcare provided employee group medical coverage for FY2005. Employees have the option of providing for any family coverage. The Texas Workforce Commission provides unemployment benefits to former eligible employees. Retirement system The City provides pension benefits to all full-time employees through a nontraditional,joint contributory defined benefit plan administered by the Texas Municipal Retirement System, an agent multiple- employer public retirement system. Pension expense for the calendar year ended December 31, 2005, (including prior service costs amortized over 25 years)was$819,210. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Wylie for its comprehensive annual financial report(CAFR)for the fiscal year ended September 30, 2004. The City has participated in the program for many years and has been awarded the Certificate numerous times. In order to be awarded a Certificate of Achievement, the government must publish an easily readable and efficiently organized CAFR. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report could not be accomplished without the dedicated services of the entire staff of the Finance Department. We would like to express our appreciation to all staff members who assisted and contributed to the preparation of this report. Acknowledgement is also given to representatives of Rutledge Crain & Company, PC, Certified Public Accountants for their dedicated assistance in producing this report. 3 NMI Special acknowledgement is given to the City Manager, Mayor and the members of the City Council for their support for maintaining the highest standards of professionalism in the management of the City of Wylie finances. -- p� r Respectively;. ed, ''' arry illiamson Fir ce Director NMI Mina IMO Certificate of �.. Achievement for Excellence in Financial Reporting Presented to City of Wylie, Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2004 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports(CAFRs)achieve the highest standards in government accounting and financial reporting. PNGE op, cd46../ ++ilts/Le OFTNEt% UNITE DSTARS AND COAPORATIONas President sEAL a, o4*,er Executive Director 5 City of Wylie Organizational Chart Mayor And City Council EA Wylie Economic 1- Parks& :<3 Boards Y City City Municipal `?i a , Development "' Recreation and • Manager Attorney Judge } ', orporation ?Corporation -Commissions , Assistant City 51 Manager Public Information i r Office rn a Support Public g ,.i Engineering a„_ry Fire ; •, Police ,, Finance Library Services Services B utldin Animal — Accounting/ City _ Human _ Streets Building Inspections Communications Control Finance Secretary Resources Permits ,use- x�ki Utility Billing/ Lii, Planning& _ purchasing — Utilities _ Building — Collections v-,_�. Zoning Water/Sewer Inspections S. _ Information _ Fleet — Code Technology Maintenance Enforcement _ Municipal — Parks/ Court Recreation Facilities— Maintenance 1 I I I I I I I I I I I I I I I I I 1 CITY OF WYLIE, TEXAS PRINCIPAL OFFICIALS September 30, 2005 City Council John Mondy, Mayor Eric Hogue, Mayor Pro Tem Earl Newsom, Councilmember Reta Allen, Councilmember Merrill Young, Councilmember Rick White, Councilmember Carter Porter, Councilmember City Staff Mark B. Roath, City Manager Mindy Manson, Assistant City Manager Carole Ehrlich, City Secretary Larry Williamson, Director of Finance Jeff Butters, Police Chief Shan English, Fire Chief Chris Hoisted, City Engineer Mike Sferra, Community Services Johnny Bray, Building Official Other Appointed Officials Rutledge Crain & Company PC, Auditors Abernathy, Roeder, Robertson, City Attorney Fulbright & Jaworski, LLP, Bond Counsel First Southwest Company, Financial Advisors 7 IMMR IMP MIR This page is left blank intentionally. MOM EMI ladato .10116 0,0611 Financial Section .11,411 .1160 44.06 WOO SAO MOW This page is left blank intentionally. MOO NMI 11111.1 IMO EMI 10 RUTLEDGE CRAIN & COMPANY, PC CERTIFIED PUBLIC ACCOUNTANTS ��. 2401 Garden Park Court, Suite B Arlington, Texas 76013 .4144 Independent Auditors'Report on Financial Statements To the City Council City of Wylie,Texas We have audited the accompanying financial statements of the governmental activities,the business-type activities,the aggregate discretely presented component unit,each major fund,and the aggregate remaining fund information of the City of Wylie, Texas as of and for the year ended September 30, 2005, which collectively comprise the City's basic financial statements as listed in the table of contents.These financial statements are the responsibility of the City of Wylie, Texas'management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion,the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities,the business-type activities,the aggregate discretely presented component unit, each major fund,and the aggregate remaining fund information of the City of Wylie,Texas as of September 30,2005, and the respective changes in financial position and cash flows,where applicable,thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. The Management's Discussion and Analysis and budgetary comparison schedules on pages 15-21 and pages 64-66, identified as Required Supplementary Information in the table of contents,are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplemental information. However,we did not audit the information and express no opinion on it. Our audit was performed for the purpose of forming opinions on the financial statements which collectively comprise the City of Wylie,Texas'basic financial statements. The introductory section,combining and individual nonmajor fund financial statements,schedules,and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion,are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and the statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly,we express no opinion on them. 1-(•(:e:"*" ery41-.7 December 22, 2005 11 M. Members: Metro(817)265-9989 American Institute of Certified Public Accountants Fax(817)861-9623 Texas Society of Certified Public Accountants RIM This page is left blank intentionally. w SIM 12 4.01 Management's Discussion and Analysis 1,101.6 13 N W S POT W W WPM M. This page is left blank intentionally. W W W PW WPM PPM 14 „. City of Wylie, Texas Management's Discussion and Analysis September 30, 2005 As management of the City of Wylie, we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2005. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages one through four of this report. Financial Highlights • The assets of the City exceeded its liabilities at the close of the fiscal year ended September 30, 2005, by$130,509,626 (net assets). Of this amount, $13,683,998 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The City's total net assets increased by 1 contributions received during the year and the issuance ce of new debtrease is attributable to capital • The City's governmental funds reported combined ending fund balances of $12,509,404 an increase of $3,017,786 in comparison to the previous year. Unspent bond proceeds from the current year issues account for much of the increase. • The unreserved portion of the General Fund fund balance at the end of the year was $4,426,413 or 27.4%of total General Fund expenditures and transfers out. • Total debt of the City increased by $9,825,000 during the fiscal year. Two issues, the General Obligation Refunding and Improvement Bonds Series 2005 and the Combination Tax and Revenue Certificates of Obligation Series 2005, account for the increase in debt. • Working capital increased in the Utility Fund by$2,835,596 in comparison to the previous year. An application of impact fees for debt service expenses in relation to the Muddy Creek Wastewater Treatment Plant accounts for the majority of the increase. Overview of the Financial Statements .W This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components: 1) gov2) fund financial statements, and 3) notes to the financial statementser Th sn r portfial alsocconstatements, tains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Wylie's finances. This is done in a manner similar to a private-sector business. Two statements, the Statement of Net Assets and the Statement of Activities, are utilized to provide this financial overview. The Statement of Net Assets presents information on all of the City's assets and liabilities with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the government's net assets changed during . the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flow. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide statements distinguish between governmental activities and business-type activities. Governmental activities basically account for those activities supported by taxes and intergovernmental revenues. On the other hand, business-type activities are basically supported by user fees and charges. Most City services are reported in governmental activities while business-type activities are reported in the Enterprise Fund. .-. 15 10.1,0 City of Wylie, Texas Management's Discussion and Analysis (continued) September 30, 2005 IIMPR The government-wide statements include not only the City but also a discrete component unit, the Wylie Economic Development Corporation (WEDC). Although legally separate, the City is financially accountable �.. for WEDC. Fund financial statements. The City, like other state and local governments, utilizes fund accounting to ensure and demonstrate compliance with finance-related legal requirements. A fund is a grouping of related .� accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial -- statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains eleven individual governmental funds. Information is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund, the 4B Sales Tax Revenue Fund, the General Obligation Debt Service Fund and the Street Construction Fund, all of which are considered to be major funds. Data from the other seven funds are combined into a single, aggregated presentation. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements elsewhere in this report. Proprietary funds. The City maintains two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for its water and sewer operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses an internal service fund to account for its fleet of vehicles and certain specialized mobile equipment. Proprietary funds financial statements provide the same type of information as the government-wide financial statements, only in more detail. Notes to the financial statements. The notes provide additional information that is essential to gain a full understanding of the data provided in the government-wide and fund financial statements Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. Required supplementary information can be found after the notes to the financial statements. Government-wide Financial Analysis At the end of fiscal year 2005, the City's net assets (assets exceeding liabilities)totaled $130,509,626. This analysis focuses on the net assets (Table 1)and changes in net assets (Table 2). OMR Net Assets. The largest portion of the City's net assets, $97,673,493, or 74.8 percent, reflects its investment in capital assets (land, buildings, improvements other than buildings, machinery and equipment, 16 City of Wylie, Texas Management's Discussion and Analysis (continued) September 30, 2005 construction in progress), less any related debt used to acquire those assets that is still outstanding. The City uses these assets to provide services to its citizens, consequently, these assets are not available for future spending. Although the City reports its capital assets net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net assets, $19,152,135, or 14.7% represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets, $13,683,998, or 10.5%, may be used to meet the government's ongoing obligations to citizens and creditors. Table 1 Condensed Statement of Net Assets Governmental Business-type Activities Activities Total 2005 2004 2005 2004 2005 2004 Current and other assets $ 17,151,942 $ 12,403,437 $ 21,157,310 $ 17,682,043 $ 38,309,252 $ 30,085,480 Capital assets 99,236,734 78,653,378 31,587,848 29,042,331 130,824,582 107,695,709 Total Assets 116,388,676 91,056,815 52,745,158 46,724,374 169,133,834 137,781,189 Long term liabilites 27,369,394 16,690,720 7,423,307 8,332,157 34,792,701 25,022,877 Other liabilities 2,393,751 766,389 1,437,756 1,282,911 3,831,507 2,049,300 Total liabilities 29,763,145 17,457,109 8,861,063 9,615,068 38,624,208 27,072,177 Net Assets: Invested in capital assets, 72,298,114 62,317,301 25,375,379 20,801,795 97,673,493 83,119,096 net of related debt Restricted for debt service 848,995 774,311 1,030,703 437,624 1,879,698 1,211,935 Restricted for capital projects 5,563,692 3,329,644 11,708,745 12,189,163 17,272,437 15,518,807 Unrestricted 7,914,730 7,178,450 5,769,268 3,680,724 13,683,998 10,859,174 Total Net Assets $ 86,625,531 $ 73,599,706 $ 43,884,095 $ 37,109,306 $ 130,509,626 $ 110,709,012 Changes in Net Assets. The net assets of the City increased by $19,800,614 for the fiscal year ended September 30, 2005. Governmental Activities. Governmental activities increased the City's net assets by $13,025,825 from the prior year. This was primarily the result of increased revenues generated by strong building activity, increased taxes and two bond issues. Business-type Activities. Net assets from business-type activities increased by $6,774,789 from the prior year. Capital contributions and increased revenues from the growth of our customer base brought about the increase in net assets for the year. 6.4 17 • M. City of Wylie, Texas Management's Discussion and Analysis (continued) September 30, 2005 S Table 2 Changes In Net Assets Governmental Business-type Activities Activities Total 2005 2004 2005 2004 2005 2004 Revenues: Program revenues: Charges for services $ 4,413,657 $ 4,273,042 $ 7,876,858 $ 6,776,232 $ 12,290,515 $ 11,049,274 OMR Operating grants and contributions 61,271 42,088 - - 61,271 42,088 Capital grants and contributions 12,462,144 10,902,894 5,945,267 3,863,745 18,407,411 14,766,639 General revenues: Ad valorem taxes 9,744,962 8,226,158 - - 9,744,962 8,226,158 - Sales taxes 2,668,983 2,130,573 - - 2,668,983 2,130,573 Other taxes and fees 1,454,975 1,712,695 - - 1,454,975 1,712,695 Interest 439,481 146,679 441,638 191,258 881,119 337,937 Miscellaneous 558,401 25,698 323,281 131,494 881,682 157,192 Total revenues 31,803,874 27,459,827 14,587,044 10,962,729 46,390,918 38,422,556 Expenses: General Government 3,490,621 3,360,719 - - 3,490,621 3,360,719 Public Safety 7,437,298 5,898,710 - - 7,437,298 5,898,710 5 Urban Development 958,368 839,258 - - 958,368 839,258 Streets 4,003,282 3,507,891 - - 4,003,282 3,507,891 Community Service 2,348,580 2,118,200 - - 2,348,580 2,118,200 Interest on long-term debt 1,019,842 836,290 - - 1,019,842 836,290 - Water and sewer operations - - 7,332,313 5,155,675 7,332,313 5,155,675 Total expenses 19,257,991 16,561,068 7,332,313 5,155,675 26,590,304 21,716,743 Increase in net assets before 12,545,883 10,898,759 7,254,731 5,807,054 19,800,614 16,705,813 transfers Transfers 479,942 570,239 (479,942) (570,239) - - Increase in net assets 13,025,825 11,468,998 6,774,789 5,236,815 19,800,614 16,705,813 Net assets-October 1, 73,599,706 62,130,708 37,109,306 31,872,491 110,709,012 94,003,199 Net assets-September 30, $ 86,625,531 $ 73,599,706 $ 43,884,095 $ 37,109,306 $ 130,509,626 $ 110,709,012 '^ Government-Wide Financial Analysis Governmental funds. The focus of the City's governmental funds is to provide information on near-term — inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. ,—, As of the end of the current fiscal year, the City's governmental funds reported combined fund balances of $12,509,404. The General Fund is the main operating fund of the City. At the end of the current fiscal year, unreserved fund balance was $4,426,413. The fund balance of the General Fund increased by $325,099 during the current fiscal year. Key factors of the increase are as follows: ... • Property tax revenue increase from the previous year of$1,602,440 • Sales tax collection increase from the previous year of$359,930 • Franchise fee collections increase of$24,620 ,.., • Licenses and permits decrease of($261,076) • Intergovernmental increase of$366,124 • Service fee collection increase of$116,564 • Offsetting the increase in revenues was an increase of $3,276,972 in general fund expenditures "" before other financing uses. The addition of 20 positions with associated benefits and equipment 18 ..,,, City of Wylie, Texas Management's Discussion and Analysis (continued) September 30, 2005 purchases had a major impact on the increase in expenditures. Also impacting the increase this year was the purchase of land for park purposes and municipal facilities. Community Center operations were also moved from the 4B Sales Tax Revenue Fund into the General Fund. There was also a significant increase in the amount of capital improvements in the Park Department when compared to previous years. The General Obligation Debt Service Fund had an increase of $83,127 in fund balance. Funds are reserved for the payment of debt service. The Street Construction Fund had an increase in fund balance of $2,221,093. This was the result of the issuance of the remaining authorizations from the 1999 bond package. Other governmental funds recognized an increase in fund balance of $296,341. This increase was primarily in the Park Acquisition and Improvement Fund and the Emergency Communications Fund. Proprietary funds. The City's proprietary funds provide the same type of information found in the government-wide statements, but in more detail. Unrestricted net assets of the Utility Fund at the end of the year amounted to $5,769,268. This represents an increase of $2,088,544 over the previous year and was primarily the result of an application of impact fees to pay debt service on the Muddy Creek Wastewater Treatment Plant. Operating income dropped by 51.4% this year and was caused by the completion of the Muddy Creek Wastewater Treatment Plant and increased sewer treatment expense. The Internal Service Fund realized an increase of$360,749 in unrestricted net assets for the year. This was primarily the result of transfers representing vehicles purchased by other funds and transferred to the Fleet Fund during the year. General Fund Budgetary Highlights. In FY2005 the General Fund expenditure budget was increased by $623,210. Each year the City performs a mid-year review of the budget. If the City Manager determines that funds are available certain amendments are proposed to the City Council for their review and approval. The mid-year adjustment totaled $429,810 with the largest adjustment for a new fire station site. Other large adjustments were for public safety equipment including funds for a new wireless broadband system. Other adjustments were made during the year, including a $200,000 adjustment for Hurricane Katrina assistance. Capital Assets and Debt Administration Capital Assets. The City's investment in capital assets for its governmental and business-type activities as of September 30, 2005, amounts to $130,824,582 (net of accumulated depreciation). The investment in capital assets includes land, buildings, improvements other than buildings, machinery and equipment, and .- construction in progress. The total increase in the City's investment in capital assets for the current year was 21.5%. urtg 19 City of Wylie, Texas "' Management's Discussion and Analysis (continued) September 30, 2005 Table 3 Capital Assets at Year-end Net of Accumulated Depreciaton(000's) Governmental Activities Business-Type Activities Total Asset 2005 2004 2005 2004 2005 2004 Land $ 21,199 $ 12,720 $ 59 $ 59 $ 21,258 $ 12,779 Buildings 2,779 2,881 6 7 2,785 2,888 -°" Improvements 63,398 55,619 30,828 28,359 94,226 83,978 Machinery and equipment 2,488 2,241 93 119 2,581 2,360 Construction in progress 9,372 5,193 602 498 9,974 5,691 $ 99,236 $ 78,654 $ 31,588 $ 29,042 $ 130,824 $ 107,696 Additional information on the City's capital assets can be found in the notes to the financial statements on pages 47-48. Debt administration_ At the end of the current fiscal year, the City of Wylie had total debt outstanding of $34,220,000. Of this amount, $19,391,000 comprises bonded debt backed by the full faith and credit of the ,., City, $7,314,000 represents bonds secured solely by self-supporting activities, $7,415,000 represents debt backed by sales tax revenues and $100,000 represents funds owed the North Texas Municipal Water District and payable from annual appropriations of the General Fund. Table 4 Outstanding Debt at Year End(000's) Governmental Activities Business-Type Activities Total Type of Debt 2005 2004 2005 2004 2005 2004 �- General Obligation $ 19,326 $ 13,656 $ 3,699 $ 2,904 $ 23,025 $ 16,560 Combination Tax&Revenue 6,225 1,050 - - 6,225 1,050 Certificates of Obligation 65 170 - - 65 170 Loans Payable 100 195 - - 100 195 Sales Tax Revenue 1,190 1,265 3,615 - 4,805 1,265 Water&Sewer Revenue - - - 5,155 - 5,155 . Total $ 26,906 $ 16,336 $ 7,314 $ 8,059 $ 34,220 $ 24,395 During the fiscal year, the City's total debt increased by$9,825,000 or 40.3%. The increase was due to two "" bond issues. The first issue was the Combination Tax and Revenue Certificates of Obligation, Series 2005 ($6,225,000). Funds were issued for the purpose of land acquisition for future parks and municipal facilities. The second issue was the General Obligations Refunding and Improvement Bonds, Series 2005 - ($10,320,000). Funds were issued to refund existing issues and for street and drainage improvements. 20 City of Wylie, Texas Management's Discussion and Analysis (continued) September 30, 2005 The City maintains favorable ratings from bond rating agencies. The City's most recent General Obligation, Combination Tax and Revenue Certificates of Obligation, and Revenue Bonds ratings are as follows. Moody's Standard Investors Service & Poor's General obligation bonds A2 A Certificates of obligation A2 A Revenue bonds Baa1 A- Additional information on the City's long-term debt can be found in the notes to the financial statements on pages 51-55. Economic Factors and Next Years's Budgets and Rates During FY2005 building permits totaling 1,020 were issued. While down from the previous two years, the number is still indicative of a rapidly growing community. Accompanying the building activity was an increase of$264.3 million in the assessed valuation of taxable property. Our growth pattern was projected to continue into FY2006 and had a significant impact in the development of the FY2006 operating budget. In FY2006 General Fund revenues and expenditures are budgeted to increase by 8.5% and 3.6% respectively, over FY2005 revenues and expenditures. This will provide an 18.4% estimated fund balance at FY2006 year-end which is larger that the 15% normally budgeted. Water and Sewer Fund operating revenues and operating expenses are budgeted to increase by 11.5% and 17.5%, respectively, over FY2005 revenues and expenses. The FY2006 had projected a large decrease in working capital but an application of impact fees for debt service payments on the Muddy Creek Wastewater Treatment Plant have brought working capital balances back up to acceptable levels. No major rate changes were made for the FY2006 budget year. It is anticipated that Utility Fund rates will be reviewed during the year and it is likely that rates will be adjusted to compensate for increased water and sewer charges from North Texas Municipal Water District. During FY2005 a major bond issue was passed and it is anticipated that ad valorem tax rates will be adjusted accordingly over the next few years beginning in FY2007. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department, 2000 Highway 78 North,Wylie, Texas, 75098. - 21 00.11, IWO MIPM This page is left blank intentionally. a NMI WNW NNW Mart miff 22 Basic Financial Statements 1.4.16 23 NPR MIR 111111111 This page is left blank intentionally. ..e 1111011 NNW NOW OMR 24 EXHIBIT A-1 CITY OF WYLIE, TEXAS STATEMENT OF NET ASSETS s,.. SEPTEMBER 30, 2005 Primary Government Governmental Business-type Component Activities Activities Total Units ."" ASSETS Cash and cash equivalents $ 119,721 $ 79,582 $ 199,303 $ 364,442 Investments 14,503,170 5,200,539 19,703,709 302,166 Receivables(net of allowances for uncollectibles) 2,081,671 1,797,364 3,879,035 527,110 Inventories 58,831 38,894 97,725 1,304,874 Prepaid items 7,819 -- 7,819 -- Restricted assets: - Cash and cash equivalents -- 1,248,791 1,248,791 -- Investments -- 9,500,437 9,500,437 -- Receivables -- 3,188,849 3,188,849 -- Deferred charges 380,730 102,854 483,584 150,000 "'"" Capital assets(net of accumulated depreciation) Land 21,199,312 59,141 21,258,453 -- Construction in progress 9,371,981 602,130 9,974,111 325,307 Buildings 2,779,424 6,359 2,785,783 -- Improvements other than buildings 63,398,436 30,827,934 94,226,370 160,885 Machinery and equipment 2,487,581 92,284 2,579,865 -- Total Assets 116,388,676 52,745,158 169,133,834 3,134,784 LIABILITIES Accounts payable and other current liabilities 1,973,536 234,517 2,208,053 37,117 """° Unearned revenue -- 215,311 Accrued interest payable 354,051 70,845 424,896 9,201 Due to other governments 66,164 -- 66,164 -- Liabilities payable from restricted assets -- 1,132,394 1,132,394 -- Noncurrent liabilities: Due within one year 1,652,552 700,693 2,353,245 275,174 Due in more than one year 25,716,842 6,722,614 32,439,456 _ 982,850 „„ Total Liabilities 29,763,145 8,861,063 38,624,208 1,519,653 NET ASSETS Invested in Capital Assets, Net of Related Debt 72,298,114 25,375,379 97,673,493 160,885 - Restricted For: Debt Service 848,995 1,030,703 1,879,698 -- Capital Projects 5,563,692 11,708,745 17,272,437 -- Unrestricted 7,914,730 5,769,268 13,683,998 1,454,246 '* Total Net Assets $ 86,625,531 $ 43,884,095 $ 130,509,626 $ 1,615,131 The accompanying notes are an integral part of this statement. 25 CITY OF WYLIE, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2005 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs _ Expenses Services Contributions Contributions '- PRIMARY GOVERNMENT: Governmental Activities: General government $ 3,490,621 $ 1,522,104 $ -- $ -- Public safety 7,437,298 1,071,140 -- 192,304 Urban development 958,368 1,689,979 -- -- Streets 4,003,282 -- -- 12,093,836 Community service 2,348,580 130,434 61,271 176,004 .., Interest on long-term debt 1,019,842 -- -- -- Total governmental activities 19,257,991 4,413,657 61,271 12,462,144 Business-type Activities: ■-^ Utility 7,332,313 7,876,858 -- 5,945,267 Total Business-type Activities 7,332,313 7,876,858 -- 5,945,267 Total Primary Government $ 26,590,304 $ 12,290,515 $ 61,271 $ 18,407,411 COMPONENT UNITS: Wylie Economic Development Corporation $ 1,155,363 $ 776,120 $ -- $ -- Total Component Units $ 1,155,363 $ _ 776,120 $ -- $ General Revenues: Ad valorem taxes Sales Taxes -- Franchise Taxes Unrestricted Investment Earnings Miscellaneous income Gain(loss)on disposal of capital assets Transfers Total General Revenues Change in Net Assets Net Assets-Beginning Net Assets-Ending w The accompanying notes are an integral part of this statement. w w 26 EXHIBIT A-2 Net(Expense) Revenue and Changes in Net Assets Governmental Business-type Component Activities Activities Total Units $ (1,968,517) $ (1,968,517) (6,173,854) (6,173,854) 731,611 731,611 8,090,554 8,090,554 .. (1,980,871) (1,980,871) (1,019,842) (1,019,842) (2,320,919) J320,919) -- $ 6,489,812 6,489,812 -- 6,489,812 6,489,812 (2,320,919) 6,489,812 4,168,893 $ (379,243) (379,243) 9,744,962 -- 9,744,962 -- 2,668,983 -- 2,668,983 885,608 1,454,975 -- 1,454,975 -- 439,481 441,638 881,119 15,136 558,401 129,976 688,377 651 -- 193,305 193,305 -- 479,942 (479,942) -- -- 15,346,744 284,977 15,631,721 901,395 13,025,825 6,774,789 19,800,614 522,152 73,599,706 37,109,306 110,709,012 1,092,979 $ 86,625,531 $ 43,884,095 $ 130,509626 $ 1,615,131 411.4 27 CITY OF WYLIE, TEXAS BALANCE SHEET- GOVERNMENTAL FUNDS SEPTEMBER 30, 2005 General 4B Sales Fund Tax Revenue ASSETS Cash and cash equivalents $ 16,812 $ 1,718 Investments 4,824,878 606,928 Receivables(net of allowances for uncollectibles): Taxes 192,986 -- Accounts 239,147 -- Other 348,130 -- Intergovernmental 323,953 158,755 Due from other funds 26,536 -- Inventories, at cost 58,831 -- Prepaid items 7,819 -- ... Total Assets $ 6,039,092 $ 767,401 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 1,033,766 $ 11,234 Other payables and accruals 268,224 7,872 Retainage payable -- -- Due to other funds -- 13,247 Intergovernmental payable 66,164 -- Deferred revenue 177,875 Total Liabilities 1,546,029 32,353 Fund balances: Reserved for: -A4 Prepaids 7,819 -- Inventory 58,831 -- Debt service -- -- Unreserved, reported in: General fund, undesignated 4,426,413 -- Special revenue funds -- 735,048 Capital projects funds -- - Total fund balances 4,493,063 735,048 Total Liabilities and Fund Balances $ 6,039,092 $_ 767,401 The accompanying notes are an integral part of this statement. 28 EXHIBIT A-3 General Other Total Obligation Street Governmental Governmental Debt Service Construction Funds Funds $ 4,814 $ -- $ 94,419 $ 117,763 621,348 5,577,472 1,558,253 13,188,879 60,301 -- -- 253,287 -- -- 80,182 319,329 _- -- -- -- 348,130 -- -- -- 482,708 1,838 -- 5,201 33,575 -- -- -- 58,831 "` -- -- -- 7,819 $ 688,301 $ 5,577,472 $ 1,738,055 $ 14,810,321 $ -- $ 319,141 $ 111,654 $ 1,475,795 -- -- 51,984 328,080 -- 169,661 -- 169,661 -- 13,289 7,039 33,575 -- -- -- 66,164 49,767 -- -- 227,642 49,767 502,091 _ 170,677 2,300,917 -- -- -- 7,819 -- -- -- 58,831 638,534 -- 160,695 799,229 -- -- -- 4,426,413 -- -- 916,664 1,651,712 -- 5,075,381 490,019 5,565,400 638,534 5,075,381 1,567,378 12,509,404 $ 688,301 $ 5,577,472 $ 1,738,055 $ 14,810,321 29 NMI w This page is left blank intentionally. wws w w w IMINIR 30 EXHIBIT A-4 CITY OF WYLIE, TEXAS RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET q� TO THE STATEMENT OF NET ASSETS SEPTEMBER 30, 2005 Total fund balances-governmental funds balance sheet $ 12,509,404 Amounts reported for governmental activities in the statement of net assets ("SNA")are different because: Capital assets used in governmental activities are not reported in the funds. 97,642,528 Property taxes receivable unavailable to pay for current period expenditures are deferred in the funds. 207,925 The assets and liabilities of internal service funds are included in governmental activities in the SNA. 2,910,456 Payables for bond principal which are not due in the current period are not reported in the funds. (26,905,556) Payables for capital leases which are not due in the current period are not reported in the funds. (33,064) Payables for bond interest which are not due in the current period are not reported in the funds. (526,241) Payables for compensated absences which are not due in the current period are not reported in the funds. (258,584) Other long-term assets are not available to pay for current-period expenditures and are deferred in the funds. 380,730 Court fines receivable unavailable to pay for current period expenditures are deferred in the funds. 19,718 Franchise taxes receivable unavailable to pay for current period expenditures are not accrued in the funds. 678,215 Net assets of governmental activities-statement of net assets $ 86,625,531 410* SWIM The accompanying notes are an integral part of this statement. 11.6 31 CITY OF WYLIE, TEXAS STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2005 General 4B Sales Fund Tax Revenue Revenues: -- Ad valorem taxes $ 7,792,002 $ -- Sales taxes 1,783,376 885,607 Franchise fees 1,407,351 -- Licenses and permits 1,260,963 -- -'" Intergovernmental 773,875 -- Services fees 1,596,694 -- Court fees 427,892 -- Interest income 186,088 16,465 Miscellaneous income 133,431 488 Total revenues 15,361,672 902,560 Expenditures: Current: General government 3,767,483 -- Public Safety 6,997,872 -- Urban development 953,570 -- Streets 1,345,498 -- Community service 2,289,565 6,113,829 Capital outlay -- Debt service: Principal 95,000 -- Interest and fiscal charges 8,708 270 �- Bond issuance costs 8,401 75,612 Total expenditures 15,466,097 6,189,711 Excess(deficiency) of revenues -' over (under)expenditures (104,425) (5,287,151) Other financing sources(uses): Transfers in 420,000 -- Transfers out (667,243) (276,604) Issuance of long-term debt 622,500 5,602,500 Premium on bonds issued 9,949 89,541 Discount on bonds issued (4,018) (36,160) Payment to refunded bond escrow agent -- -- Proceeds from capital leases 48,336 -- Total other financing sources(uses) 429,524 5,379,277 -- Net change in fund balances 325,099 92,126 Fund balances, October 1 4,167,964 642,922 -- Fund balances, September 30 $ 4,493,063 $ 735,048 The accompanying notes are an integral part of this statement. 32 EXHIBIT A-5 General Other Total Obligation Street Governmental Governmental Debt Service Construction Funds Funds $ 1,962,035 $ -- $ -- $ 9,754,037 2,668,983 1,407,351 1,260,963 773,875 497,780 2,094,474 427,892 18,197 178,883 39,848 439,481 525,826 180,931 840,676 1,980,232 704,709 718,559 19,667,732 3,767,483 - 753,542 7,751,414 953,570 - 1,345,498 151,605 8,554,999 4,178,917 -- 4,178,917 1,234,888 -- 75,000 1,404,888 550,223 -- 210,675 769,876 92,206 - 176,219 1,877,317 4,178,917 1,190,822 28,902,864 102,915 (3,474,208) (472,263) (9,235,132) 768,604 1,188,604 (943,847) 1,829,700 5,695,301 -- 13,750,001 61,306 (44,436) -_ __ 160,796 (1,866,358) -- (84,614) (1,866,358) 48,336 (19,788) 5,695,301 768,604 12,252,918 83,127 2,221,093 296,341 3,017,786 555,407 2,854,288 1,271,037 9,491,618 $ 638,534 $__ 5,075,381 $ 1,567,378 $ 12,509,404 33 M. This page is left blank intentionally. 411.1110 MIN W, MIR IMP IOW 34 CITY OF YLIE, TEXAS EXHIBIT A-6 W RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2005 Net change in fund balances-total governmental funds $ 3,017,786 Amounts reported for governmental activities in the statement of activities ("SOA")are different because: Capital outlays are not reported as expenses in the SOA. 11,594,915 The depreciation of capital assets used in governmental activities is not reported in the funds. (3,210,725) Donations of capital assets increase net assets in the SOA but not in the funds. 12,093,836 Certain property tax revenues are deferred in the funds.This is the change in these amounts this year. (9,075) Revenues in the SOA not providing current financial resources are not reported as revenues in the funds. (43,911) Repayment of bond principal is an expenditure in the funds but is not an expense in the SOA. 1,420,160 Bond issuance costs and similar items are amortized in the SOA but not in the funds. (31,198) (Increase)decrease in accrued interest from beginning of period to end of period. (249,966) The net revenue(expense)of internal service funds is reported with governmental activities. 360,749 Compensated absences are reported as the amount earned in the SOA but as the amount paid in the funds. (75,831) Revenues in the SOA for court fines not providing current financial resources are not reported in the funds. (57,309) Proceeds of debt issues do not provide revenue in the SOA but are reportd as current resources in the funds. (11,783,606) Change in net assets of governmental activities-statement of activities $ 13,025,825 — The accompanying notes are an integral part of this statement. 35 EXHIBIT A-7 CITY OF WYLIE, TEXAS STATEMENT OF NET ASSETS PROPRIETARY FUNDS SEPTEMBER 30, 2005 Nonmajor Enterprise Internal Service Fund Fund -- Utility Fleet Fund Replacement ASSETS "" Current Assets: Cash and cash equivalents $ 79,582 $ 1,958 Investments 5,200,539 1,314,291 Accounts receivables(net of allowances for uncollectibles): 1,560,068 Intergovernmental 237,296 -- Inventories, at cost 38,894 -- Restricted assets: Cash and cash equivalents 1,248,791 -- Investments 9,500,437 -- Accounts receivable 3,188,849 -- Total current assets 21,054,456 1,316,249 -- Deferred charges 102,854 -- Capital assets: Land 59,141 -- Buildings 27,888 -- '-' Waterworks system 18,039,272 -- Sewer system 23,219,018 -- Machinery and equipment 490,644 2,871,343 Construction in progress 602,130 -- Accumulated depreciation (10,850,245) (1,277,1n Total capital assets(net of accumlated depreciation) 31,587,848 1,594,206 Total noncurrent assets 31,690,702 1,594,206 Total Assets 52,745,158 2,910,455 LIABILITIES Current liabilities: -- Accounts payable 135,278 -- Otherpayables and accruals 99,239 -- Compensated absences payable 108,863 -- General obligation bonds payable-current 473,333 -- -" Revenue bonds payable -current 155,000 -- Accrued interest payable 70,845 -- Liabilities payable from restricted assets: Accounts payable 345,518 -- Capital leases payable-current 186,890 -- Customer deposits 599,986 -- Total current liabilities 2,174,952 -- -.. Noncurrent liabilities: General obligation bonds payable 3,226,111 -- Revenue bonds payable 3,460,000 -- Total noncurrent liabilities 6,686,111 -- -- Total Liabilities 8,861,063 -- NET ASSETS Invested in capital assets, net of related debt 25,375,379 Restricted for debt service 1,030,703 -- Restricted for construction 11,708,745 -- Unrestricted 5,769,268 2,910,455 Total Net Assets $ 43,884,095 $ 2,910,455 The accompanying notes are an integral part of this statement. 36 EXHIBIT A-8 CITY OF WYLIE, TEXAS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS-PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2005 Nonmajor Enterprise Internal Service Fund Fund Utility Fleet Fund Replacement OPERATING REVENUES: Water $ 4,385,358 $ -- Sewer 2,560,717 -- Sewer pass through 605,506 -- "'"" Penalties 131,518 -- Water taps 136,169 -- Sewer taps 21,770 -- Reconnect fees 35,820 -- Department user fees -- 346,741 Total Operating Revenues 7,876,858 346,741 ,,,, OPERATING EXPENSES: Water purchases 1,252,736 -- Sewer treatment 1,774,798 -- Utility administration 365,835 -- Water department 996,506 -- Sewer department 425,020 -- Utility billing 542,457 -- Engineering 390,626 -- - Depreciation and amortization 1,069,481 253,726 Total Operating Expenses 6,817,459 253,726 Operating Income (Loss) 1,059,399 93,015 — NON-OPERATING REVENUES(EXPENSES): Interest revenue 441,638 29,942 - Miscellaneous income 129,976 -- Gain(loss)on disposal of fixed assets 193,305 2,607 Interest expense (514,854) -- Total Non-operating Revenues(Expenses) 250,065 32,549 — Net Income (Loss) before Operating Transfers 1,309,464 125,564 TRANSFERS AND CAPITAL CONTRIBUTIONS: Capital contributions 5,945,267 -- Transfers in -- 235,185 Transfers out (479,942) -- Change in net assets 6,774,789 360,749 Net assets, October 1 37,109,306 2,549,706 Net assets, September 30 $ 43,884,095 $ 2,910,455 The accompanying notes are an integral part of this statement. 37 EXHIBIT A-9 •■* CITY OF WYLIE, TEXAS STATEMENT OF CASH FLOWS Governmental PROPRIETARY FUNDS Activities FOR THE YEAR ENDED SEPTEMBER 30, 2005 Enterprise Internal Service Fund Fund Utility Fleet Fund Replacement -. Cash Flows from Operating Activities: Cash Received from Customers $ 7,975,505 $ -- Cash Receipts(Payments)for Interfund Services Other Funds -- 346,741 -" Cash Payments to Employees for Services (1,737,149) -- Cash Payments to Other Suppliers for Goods and Services (3,927,493) -- Net Cash Provided (Used)by Operating Activities 2,310,863 346,741 Cash Flows from Non-capital Financing Activities: Transfers From Other Funds -- 235,185 Transfers To Other Funds (479,942) Net Cash Provided (Used) by Non-capital Financing Activities (479,942) 235,185 Cash Flows from Capital and Related Financing Activities: Principal and Interest Paid (1,415,246) -- -- Acquisition or Construction of Capital Assets (3,564,215) (359,058) Gain from Disposal of Capital Assets 193,305 2,607 Capital contributions 5,945,267 -- Net Cash Provided (Used)for Capital&Related Financing Activities 1,159,111 (356,451) -" Cash Flows from Investing Activities: Interest and Dividends on Investments 441,638 29,942 -, Net Cash Provided(Used)for Investing Activities 441,638 29,942 Net Increase(Decrease) in Cash and Cash Equivalents 3,431,670 255,417 Cash and Cash Equivalents at Beginning of Year 12,597,679 1,060,832 Cash and Cash Equivalents at End of Year $ 16,029,349 $ 1,316,249 Reconciliation to Balance Sheet: Cash $ 79,582 1,958 -' Cash Equivalents in Investments 5,200,539 1,314,291 Restricted Cash 1,248,791 -- Restricted Cash Equivalents in Restricted Investments 9,500,437 -- $ 16,029,349 $ 1,316,249 Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income(Loss) $ 1,059,399 $ 93,015 -„ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation and amortization 1,069,481 253,726 Miscellaneous Income 129,976 -- -� Change in Assets and Liabilities: Decrease(Increase)in Receivables (504,001) -- Decrease(Increase)in Due from Other Governments (237,296) -- Decrease(Increase)in Inventories (11,319) Decrease (Increase)in Restricted Receivables 658,237 -- Increase(Decrease)in Accounts Payable 60,442 -- Increase(Decrease)in Other Payables and Accruals 34,562 Increase(Decrease)in Compensated Absences 22,537 -- Increase(Decrease)in Customer Deposits 51,730 -- Increase(Decrease)in Accounts Payable from Restricted Assets (22,885) -- Total Adjustments 1,251,464 253,726 -* Net Cash Provided (Used) by Operating Activities $ 2,310,863 $ 346,741 The accompanying notes are an integral part of this statement. 38 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Me Year Ended September 30, 2005 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Wylie, Texas, was incorporated in 1887 and operates under the Council-Manager form of government as a duly incorporated home rule city as authorized under the Constitution of the State of Texas, and provides the following services: public safety(police and fire),streets,water,sewer and sanitation,public improvements, planning and zoning,cultural, and general administrative services. The accounting policies of the City of Wylie,Texas,conform to generally accepted accounting principals issued by the Governmental Accounting Standards Board which is the recognized financial accounting standard setting body for governmental entities.The notes to the financial statements are an integral part of the City's basic financial statements. The City of Wylie is a home rule municipality governed by an elected mayor and a six member City Council who appoint a City Manager. The City's (primary government)financial statements include its component units. The accompanying basic financial statements comply with the provisions of the GASB Statement No.14,"The Financial Reporting Entity,"in that the financial statements include all organizations,activities,functions and component units for which the City (the "primary government") is financially accountable. Financial accountability is defined as the appointment of a voting majority of a legally separate organization's governing body and either (1) the City's ability to impose its will over the organization, or (2) the potential that the organization will provide a financial benefit to or impose a financial burden on the City. Blended Component Unit The Wylie Park and Recreation Facilities Development Corporation (the 4B Corporation) is presented in the basic financial statements as a blended component unit. A voting majority of the 4B Corporation board is made up of City Council members. All members of the corporation other than the board are City employees. The City Manager is the chief executive operating officer of the 4B Corporation. The purpose of the 4B Corporation, which is financed with a voter approved half-cent sales tax,is to promote economic development within the City through the construction of park and recreation facilities. The 4B Corporation has a September 30 year end. The 4B Corporation's financial,budget,treasury,and personnel functions are totally integrated with the City. All of the 4B Corporation's financial information is presented in the basic and combining financial statements, along with the notes to these financial statements. The 4B Corporation does not issue separate financial statements. Discretely Presented Component Unit The Wylie Economic Development Corporation (WEDC) is a discretely presented component unit in the combined financial statements. The governing board of the WEDC is appointed by the City Council and the WEDC's operating budget is subject to approval of the City Council. The purpose of the WEDC, which is financed with a voter approved half-cent City sales tax, is to aid, promote and further the economic development within the City. The WEDC is presented as a government fund type and has a September 30 year end. Under a contract,the financial,budget,treasury,and personnel functions of the WEDC are integrated with the City. All of WEDC's financial information is presented in the combined and combining financial statements, along with the notes to these financial statements. WEDC does not issue separate financial statements. 39 NNW CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 NMI B. Government-wide and Fund Financial Statements The government-wide financial statements(i.e.the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part,the effect of interfund activity has been removed from these statements. Governmental activities,which normally are supported bytaxes and intergovernmental revenues,are reported separately from IWO business-type activities, which rely, to a significant extent, on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1)charges to customers or applicants who purchase,use,or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds,proprietary funds,and fiduciary funds,even though the latter are excluded from the government-wide financial statements. Major individual enterprise funds ^„ are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting,as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose,the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred,as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments,are recorded only when ... payment is due. Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Sales taxes collected and held by the State and merchants at year end on behalf of the City are also recognized as revenue. Franchise taxes, fines and permits,and miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in cash. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The 4B Sales Tax Revenue Fund-accounts for sales tax monies specifically designated for promoting MAW economic development within the City by developing, implementing, providing, and financing park and recreation projects. MIRO 40 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 The General Obligation Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. The Street Construction Capital Projects Fund accounts for the construction of streets and sidewalks. The City reports the following major proprietary fund: The Utility Fund operates the water distribution system and the wastewater treatment plants,wastewater pumping stations, and collection systems. Additionally, the City reports the following fund types: The Special Revenue Funds account for specific revenue sources that are legally restricted to expenditures for specified purposes (not including expendable trusts or major capital projects). Parks Acquisition and Improvement Fund -accounts for the development and improvement of City parks. Emergency Communications Fund-accounts for the operations of the 911 dispatch services of the police and fire departments. Fire Training Center-accounts for First Responder fees specifically designated for the construction of the Fire Training Center. Debt Service Funds account for the accumulation of resources to be used for the payment of principal and interest. 4B Debt Service 1996 Fund-accounts for the accumulation of resources to be used for the payment of principal and interest on the 4B Sales Tax Revenue Bonds-Series 1996. 4B Debt Service 2005 Fund-accounts for the accumulation of resources to be used for the payment of principal and interest on the 4B Sales Tax Revenue Bonds- Series 2005. Capital Projects Funds are used to account for acquisition and construction of major capital facilities(other than those accounted for within the City's proprietary fund). Capital projects are funded primarily by general obligation bonds. Street Perimeter -accounts for construction of perimeter streets,curbs and gutters that border new subdivisions. Fees collected from developers are the primary means of financing this fund. Parks Construction-accounts for the development and construction of parks. Internal Service Fund accounts forfinancial resources set aside annually to replace equipment as its useful life is consumed. Private-sector standards of accounting and financial reporting issued prior to December 1,1989,generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds,subject to this same limitation.The City has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City's water and wastewater function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 41 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 NNW Amounts reported as program revenues include 1)charges to customers or applicants for goods,services,or privileges provided,2)operating grants and contributions,and 3)capital grants and contributions, including �. special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes, miscellaneous revenue, and interest income. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues ISM and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Water and Sewer enterprise fund are charges to customers for sales and services. The enterprise utility fund also recognizes as .. operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for the enterprise fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. ^^ D. Assets, liabilities,and net assets or equity 1. Deposits and investments The City's cash and cash equivalents are considered to be cash on hand,demand deposits,and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the City to invest in (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the MOW United States; (4)obligations of states,agencies,counties,cities,and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (5)certificates of deposit by state and national 41101. banks domiciled in this state that are (A) guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor; or, (B) secured by obligations that are described by (1) - (4); or, (6)fully collateralized direct repurchase agreements having a defined termination date,secured by obligations described by(1),pledged with third party selected or approved by the City,and placed through a primary government securities dealer. Investments maturing within one year of date of purchase are stated at cost or amortized cost, all other ,I, investments are stated at fair value which is based on quoted market prices. 2. Receivables and payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either"due to/from other funds" (i.e.,the current portion of inter fund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as"due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as"internal balances." Advances between funds,as reported in the fund financial statements,are offset by afund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade receivables are shown net of an allowance for uncollectibles. Trade accounts receivable in excess of 60 days comprise the trade accounts receivable allowance for uncollectibles. Property taxes are levied on October 1 by the City based on the January 1 property values as assessed by the Collin County Central Appraisal District. Taxes are due without penalty until January 31,of the next calendar year. After January 31 the City has an enforceable lien with respect to both real and personal property. Under state law, property taxes levied on real property constitute a perpetual lien on the real POW 42 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 property which cannot be forgiven without specific approval of the State Legislature. Taxes applicable to personal property can be deemed uncollectible by the City. 3. Inventories and prepaid items All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 4. Restricted assets Certain proceeds of enterprise fund revenue bonds and resources set aside for their repayment and contractually obligated assets are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants or contractual agreements. 5. Capital assets Capital assets,which include property,plant,equipment,and infrastructure assets(e.g.,roads,bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial,individual cost of more than$5,000(amount not rounded)and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property,plant,and equipment of the primary government,as well as the component units,is depreciated using the straight line method over the following estimated useful lives: Buildings 20-30 years Improvements other than buildings 20-50 years Machinery and Equipment 3- 10 years 6. Compensated absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. A percentage of accrued sick leave is payable on a longevity basis at the time of termination. All vacation and sick leave is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured,for example,as a result of employee resignations and retirements. 7. Long-term obligations In the government-wide financial statements,and proprietary fund type in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities,business-type activities,or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight line method which approximate the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. 43 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 -- In the fund financial statements,governmental fund types recognize bond premiums and discounts,as well as bond issuance costs,during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as otherfinancing uses. Issuance costs,whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8. Fund equity In the fund financial statements,governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net assets: a The governmental fund balance sheet includes a reconciliation between fund balance-total governmental funds and net assets—governmental activities as reported in the government-wide statement of net assets. One element of that reconciliation explains that"Other long-term assets are not available to pay for current-period ... expenditures and are deferred in the funds." The details of this$380,730 difference are as follows: Bonds issuance costs: City $380,730 B. Explanation of certain differences between the governmental fund statement of revenues,expenditures,and changes in fund balances and the government-wide statement of activities: The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances-total governmental funds and changes in net assets of governmental activities as reported in the government-wide statement of activities. One element of that -s reconciliation explains that"Revenues in the Statement of Activities not providing current financial resources are not reported as revenues in the funds." The details of this$(43,911) difference are as follows: Change in estimate of franchise taxes receivable $47,624 Proceeds from capital lease (48,336) Other (43,199) $(43,911) A-► III. DETAILED NOTES ON ALL FUNDS A. Deposits and investments Cash At year end,the carrying amount of the City's cash on hand and deposits was$1,448,094 (including restricted .� cash of$1,248,791). All of the bank balance was covered by federal deposit insurance and collateralized by the pledging financial institution's trust department in the City's name. Under a contractual agreement with North Texas Municipal Water Department(NTMWD),depository accounts are maintained by NTMWD for interest sinking, debt and construction reserves totaling $869,942 which are separately insured or secured by collateral pledged by NTMWD's depository. This $869,942 is included in restricted cash on the statement of net assets. The carrying amount of deposits for WEDC, the discretely presented components unit, was $364,442. The component units' cash balances are covered by the City's depository contract and therefore, all of the bank balance in the City's depository was covered by federal deposit insurance and collateral pledged by the 44 a CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 depository in the City's name and by the City's agent.$154,863 of WEDC's cash was deposited with a bank not covered by the City's depository contract. Of this amount,$100,000 was covered by federal deposit insurance. Investments As of September 30, 2005,the City and discrete component unit had the following investments: Fair Years to Investment type Value Maturity Primary Government: Government sponsored investment pool (TexPool) $27,015,565 N/A Government sponsored investment pool (LOGIC) 2,188,581 N/A •� 29,204,146 Discrete Component Unit Government sponsored investment pool (TexPool) 289,478 N/A Government sponsored investment pool (LOGIC) 12,688 N/A 302,166 Total Fair Value $29,506,312 Interest Rate Risk. In accordance with its investment policy,the City manages its exposure to declines in fair market value by limiting the weighted average maturity of its portfolio to less than three years. Credit Risk. State law limits investments as described previously in Note I D. Concentration of Credit Risk. The City's investment policy does not allow for an investment in any one issuer (other than investment pools) that is in excess of five percent of the fair value of the City's total investments. Custodial Credit Risk—Deposits. In the case of deposits,this is the risk that in the event of a bank failure,the City's deposits may not be returned to it. The City requires all deposits to be covered by Federal Depository Insurance Corporation (FDIC) insurance and/or collateralized by qualified securities pledged by the City's depository in the City's name and held by the depository's agent. Custodial Credit Risk— Investments. For an investment, this is the risk that, in the event of the failure of the counterparty, the City or Discrete Component Unit will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Texas State Comptroller of Public Accounts exercises oversight responsibility over the Texas Local Government Investment Pool ("TexPool"). Oversight includes the ability to significantly influence operations, designation of management and accountability for fiscal matters. Additionally, the State Comptroller has established an advisory board composed both of participants in TexPool and of other persons who do not have a business relationship with TexPool. The advisory Board members review the investment policy and management fee structure. Finally,TexPool is rated AAA by Standard and Poors. TexPool operates in a manner consistent with the Security and Exchange Commission's Rule 2a-7 of the Investment Company Act of 1940. As such,TexPool uses amortized cost to report net assets and share prices since that amount approximates fair market value. Local Government Investment Cooperative(LOGIC)operates in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940, to the extent such rule is applicable to its operations. Accordingly, LOGIC uses the amortized cost method permitted by SEC Rule 2a-7 to report net assets and share prices since 45 ■W CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30,2005 *^ that amount approximates fair value. The investment activities of LOGIC are administered bythird party advisors. There is no regulatory oversight by the State of Texas over LOGIC. MP B. Receivables Receivables as of year-end for the governments individual major funds and nonmajor,and fiduciary funds in the — aggregate, including the applicable allowances for uncollectible accounts, are as follows: 4B Sales G.O. Tax Debt Street Water and Nonmajor •IPM, General Revenue Service Construction Sewer and Other Total Taxes receivable $241,233 $ -- $75,376 $ -- $ -- $ -- $316,609 Allowance for uncollectibles (48,247) — (15,075) -- -- -- (63,322) ... $192,986 $ -- $60,301 $ -- $ -- $ -- $253,287 ... Accounts receivable $239,147 $ -- $ -- $ -- $1,878,987 $80,182 $2,198,316 Allowance for uncollectibles -- -- -- -- (318,919) -- (318,919) Net other receivables $239,147 $ -- $ — $ -- $1,560,068 $80,182 $1,879,397 IMF Other receivables $348,130 $ -- $ -- $ -- $ -- $ -- $348,130 ... Intergovernmental $323,953 $158,755 $ -- $ -- $237,296 $ -- $720,004 MVP Revenues of the Water and Sewer Fund are reported net of uncollectible amounts. Total uncollectible amounts related to revenues of the current period were$21,713. Receivables in the discrete component unit consist of$158,755 sales tax receivable due from the state, and $368,355 in loans to private businesses. If certain contractual obligations are met by some of these private businesses at a future date, a portion and/or all of the amounts owed may be forgiven. N M Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period.Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned.At the end of the current fiscal year, ,M„ the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned W M Delinquent property taxes receivable (General Fund) $158,157 $ -- Court fines (General Fund) 19,718 -- OM Delinquent property taxes receivable (Debt Service Fund) 49,767 -- Total deferred/unearned revenue for governmental funds $227,642 $ -- ^, The unearned revenue in the discrete component unit results from installment sales of land to local businesses, and is being recognized as the loans financing the sale are collected. a 46 a CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 C. Capital assets Capital asset activity for the year ended September 30,2005: Primary Government Balance Completed Balance 9/30/04 Additions Retirements Construction 9/30/05 GOVERNMENTAL ACTIVITIES: Capital assets,not being depreciated: Land $12,719,993 $8,479,319 $ -- $ -- $21,199,312 Construction in progress 5,193,064 4,178,917 -- -- 9,371,981 Total capital assets not being depreciated 17,913,057 12,658,236 -- -- 30,571,293 Capital assets,being depreciated: Buildings 4,398,138 28,262 -- -- 4,426,400 Improvements other than buildings 75,162,088 10,617,935 -- -- 85,780,023 Machinery and equipment 6,684,820 754,004 (46,294) -- 7,392,530 Total capital assets being depreciated 86,245,046 11,400,201 (46,294) -- 97,598,953 Less accumulated depreciation for: „� Buildings (1,517,098) (129,878) -- -- (1,646,976) Improvements other than buildings (19,543,273) (2,838,314) -- -- (22,381,587) Machinery and equipment (4,444,354) (496,260) 35,665 -- (4,904,949) Total accumulated depreciation (25,504,725) (3,464,452) 35,665 -- (28,933,512) Total capital assets being depreciated,net 60,740,321 7,935,749 (10,629) -- 66,665,441 Governmental activities capital assets,net $78,653,378 $20,593,985 ($10,629) $ -- $99,236,734 4.0 47 .. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 -- Balance Completed Balance 9/30/04 Additions Retirements Construction 9/30/05 ..,., BUSINESS-TYPE ACTIVITIES: Capital assets,not being depreciated: NOW Land $59,141 $ -- $ -- $ — $59,141 Construction in progress 498,152 302,635 (198,657) -- 602,130 Total capital assets not being depreciated 557,293 302,635 (198,657) -- 661,271 Capital assets,being depreciated: Buildings 27,888 -- -- -- 27,888 ow Water system 16,130,909 1,908,363 -- — 18,039,272 Sewer system 21,827,812 2,322,815 (931,609) — 23,219,018 r.. Machinery and equipment 485,244 5,400 -- -- 490,644 Total capital assets being depreciated 38,471,853 4,236,578 (931,609) -- 41,776,822 Less accumulated depreciation for: Buildings (21,009) (520) -- -- (21,529) Water system (4,273,184) (433,840) -- -- (4,707,024) .. Sewer system (5,326,517) (552,082) 155,267 — (5,723,332) Machinery and equipment (366,105) (32,255) -- -- (398,360) --" Total accumulated depreciation (9,986,815) (1,018,697) 155,267 -- (10,850,245) Capital assets being depreciated,net 28,485,038 3,217,881 (776,342) -- 30,926,577 Business type activities capital assets,net $29,042,331 $3,520,516 ($974,999) $ — $31,587,848 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $363,027 .. Public safety 138,121 Urban development 12,843 ... Streets 2,667,439 Community service 283.022 Total depreciation expense-governmental activities $3,464,452 NNW Business-type activities: Water and sewer $1,018,697 .. .. 48 .. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30,2005 Construction commitments The City has active construction projects as of September 30,2005. The projects include street construction, park improvements, and drainage improvements. Remaining Project Spent to Date Commitment Alanis Drive construction $2,345,490 $1,517,894 FM 1378/Park signalization 319,121 368 Valantine drainage 22,314 250,591 $2,686,925 $1,768,853 The street improvements are being financed by bond proceeds. The commitment for drainage is being financed by current revenues. Discretely presented component unit-Wylie Economic Development Corporation: Balance Completed Balance 9/30/04 Additions Retirements Construction 9/30/05 Capital assets,not being depreciated: ". Construction in progress $ — $325,307 $ -- $ -- $325,307 Capital assets,being depreciated: "" Buildings -- — -- -- -- Improvements other than buildings 224,489 -- -- -- 224,489 Machinery and equipment -- -- -- -- -- Total capital assets being depreciated 224,489 -- -- -- 224,489 Less accumulated depreciation for: Improvements other than buildings (56,121) (7,483) -- -- (63,604) Machinery and equipment -- -- -- -- IOWA Total accumulated depreciation (56,121) (7,483) -- -- (63,604) Total capital assets being depreciated,net 168,368 (7,483) -- -- 160,885 $168,368 $317,824 $ -- $ -- $486,192 49 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 D. Interfund receivables, payables, and transfers The composition of interfund balances as of September 30,2005, is as follows: Interfund Receivable/Payable Fund Receivable Payable Major Governmental Funds General Fund $26,536 $ -- 4B Sales Tax Revenue -- 13,247 General Obligation Debt Service 1,838 Street Construction -- 13,289 Total Major Governmental Funds 28,374 26,536 Nonmajor Governmental Funds 4B Debt Service 1996 5,201 -- Park Acquisition and Improvements -- 7,039 .� Total Nonmajor Governmental Funds 5,201 7,039 Totals $33,575 $33,575 w* Interfund receivables and payables arise from overdrafts in pooled cash and pooled investments. MVP Interfund transfers: Fund Transfer In Transfer Out IMP Major Governmental Funds General Fund $420,000 $667,243 OMR 4B Sales Tax Revenue -- 276,604 Total Major Governmental Funds 420,000 943,847 Nonmajor Governmental Funds Emergency Communication 492,000 -- 4B Debt Service 1996 144,130 -- 4B Debt Service 2005 132,474 -- Total Nonmajor governmental funds 768,604 -- Water Utility Fund -- 479,942 Internal Service Funds 235,185 -- Totals $1,423,789 $1,423,789 Interfund transfers provide funds for debt service,contributions for capital construction,cost allocations and other operational costs as determined by the annual budget. 50 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS v.* Year Ended September 30, 2005 E. Long-term debt The City of Wylie issues general obligation bonds,certificates of obligation bonds,contractual obligation bonds and notes to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. These issues are direct obligations and pledge the full faith and credit of the City. General Debt Currently Outstanding: Original Year of Final Interest Balance Purpose Amount Issue Maturity Rate 9/30/05 General Long-Term Debt Issues General Obligation Bonds: Improvements $2,700,000 1/1/97 8/15/17 4.90%-8.75% $1,130,556 Improvements 3,200,000 9/14/99 2/15/19 5.00%-6.50% 2,570,000 Improvements 2,000,000 8/22/00 2/15/20 5.00%-6.50% 1,690,000 Improvements 4,500,000 9/1/01 2/15/21 4.25%-5.00% 3,940,000 Improvements 500,000 9/1/01 2/15/06 3.50% 110,000 Improvements 2,500,000 9/15/02 2/15/22 3.625%-4.50% 2,255,000 Improvements 1,250,000 9/15/02 2/15/22 2.25%-3.25% 105,000 Improvements and refunding 7,525,000 1/01/05 2/15/25 3.00%-4.50% 7,525,000 Total General Obligation Bonds 19,325,556 Comb.Tax/Revenue Bonds: Improvements 5,602,500 1/01/05 2/15/25 3.00%-5.00% 5,602,500 Improvements 622,500 1/01/05 2/15/25 3.00%-5.00% 622,500 Total Comb.Tax/Revenue Bonds 6,225,000 Certificate of Obligation Bonds: Improvements 410,000 1999 2/15/06 4.10%-5.10% 65,000 Loans Payable Improvements 610,000 12/15/98 4/01/06 4.45% 100,000 Total General Long-Term Debt 25,715,556 51 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 -- Original Year of Final Interest Balance Purpose Amount Issue Maturity Rate 9/30/05 "" Proprietary Debt Issues General Obligation Bonds: Improvements $1,200,000 1/01/97 8/15/17 4.90%-8.75% $904,444 Improvements and refunding 2,795,000 1/01/05 2/15/25 3.00%-4.50% 2,795,000 ..— Total Proprietary Debt 3,699,444 Total General Debt $29,415,000 -- Annual debt service requirements to maturity for general debt: Governmental Activities Business Type Activities Year Principal Interest Principal Interest Total w 2006 $1,416,667 $1,231,890 $473,333 $224,580 $3,346,470 2007 1,264,444 1,043,936 425,556 110,886 2,844,822 2008 1,280,000 993,374 440,000 97,144 2,810,518 2009 1,270,556 943,371 379,444 83,965 2,677,336 ... 2010 1,318,333 893,330 391,667 71,905 2,675,235 2011-2015 6,940,556 3,627,630 1,389,444 193,367 12,150,997 a. 2016-2020 7,485,000 1,945,561 200,000 10,869 9,641,430 2021-2022 4,740,000 512,069 -- -- 5,252,069 a Total $25,715,556 $11,191,161 $3,699,444 $792,716 $41,398,877 REVENUE BONDS.The City issues revenue bonds where the City pledges income derived from the acquired -- or constructed assets, or sales tax to pay the debt service. a a a 52 a CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS 'WI" Year Ended September 30,2005 Revenue bonds outstanding at year end are as follows: .- Original Year Final Interest Balance Purpose Amount Issue Maturity Rate 9/30/05 Sales Tax Revenue Bonds Improvements $1,710,000 1/1/96 2/15/08 5.35%-5.55% $1,190,000 Water and Sewer Revenue Bonds Improvements 1,380,000 9/14/99 2/15/19 5.40%-6.50% 1,110,000 Improvements 1,720,000 8/22/00 2/15/20 5.13%-6.13% 1,470,000 Improvements 1,150,000 9/15/02 2/15/22 3.55%-5.00% 1,035,000 Total Water and Sewer Revenue Bonds 3,615,000 Total Revenue Bonds $4,805,000 Annual debt service requirements to maturity for revenue bonds: Governmental Activities Business Type Activities Year Principal Interest Principal Interest Total 2006 $75,000 $63,964 $155,000 $182,496 $476,460 2007 80,000 59,662 160,000 173,091 472,753 2008 90,000 54,945 175,000 163,245 483,190 "" 2009 95,000 49,811 185,000 153,097 482,908 2010 100,000 44,400 195,000 143,010 482,410 2011-2015 605,000 128,344 1,155,000 554,982 2,443,326 2016-2020 145,000 4,024 1,415,000 220,947 1,784,971 - 2021-2025 -- -- 175,000 8,165 183,165 Total $1,190,000 $405,150 $3,615,000 $1,599,033 $6,809,183 Capitalized Lease Obligations Governmental -The City entered into a lease to acquire six tough book laptop computers. Business-type - The City has entered into a contract with the North Texas Municipal Water District), a conservation and reclamation district and political subdivision of the state of Texas, for construction and `�` operation of sewer plants and to provide treated waterto the City. The contractual obligations have been treated as capitalized leases. 53 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 "' Capitalized lease obligations outstanding at year end are as follows: Original Year Final Interest Balance Purpose Amount Issue Maturity Rate 9/30/05 Governmental Computers $48,336 2005 2007' 7.51% $33,064 Business-type Wastewater treatment plant 2,000,000 1988 2006 7.50% $186,890 Capital lease obligation debt service requirements to maturity are as follows: Year Governmental Business-type ISM 2006 $17,883 $200,925 2007 17,883 -- ,,,,, Total payments 35,766 200,925 Less imputed interest (2,702) (14,035) MO Total Capital Lease Obligations $33,064 $186,890 CHANGES IN LONG-TERM LIABILITIES e,, Long-term liability activity for the year ended September 30,2005,was as follows: Balance Balance Due Within .. 9/30/04 Additions Retirements 9/30/05 One Year Governmental activities: General obligation bonds $13,656,341 $7,525,000 ($1,855,785) $19,325,556 $1,036,667 .. Combination tax revenue bonds 1,049,736 6,225,000 (1,049,736) 6,225,000 65,000 Certificates of obligation 170,000 -- (105,000) 65,000 65,000 .. Sales tax revenue bond 1,265,000 -- (75,000) 1,190,000 75,000 Total bonds payable 16,141,077 13,750,000 (3,085,521) 26,805,556 1,241,667 — Loans payable 195,000 -- (95,000) 100,000 100,000 Capital lease obligations -- 48,336 (15,272) 33,064 16,097 "` Compensated absences 354,643 328,311 (252,180) 430,774 294,788 Governmental activity Long-Term Liabilities $16,690,720 $14,126,647 ($3,447,973) $27,369,394 $1,652,552 54 .. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 Balance Balance Due Within 9/30/04 Additions Retirements 9/30/05 One Year Business-type activities: General obligation bonds $2,903,677 $2,795,000 ($1,999,233) $3,699,444 $473,333 Revenue bonds 5,155,264 -- (1,540,264) 3,615,000 155,000 Less deferred discount -- -- -- -- -- Total bonds payable 8,058,941 2,795,000 (3,539,497) 7,314,444 628,333 Capital lease obligations 360,724 -- (173,834) 186,890 186,890 Compensated absences 86,326 79,917 (57,380) 108,863 72,360 Business-type activities w Long-Term Liabilities $8,505,991 $2,874,917 ($3,770,711) $7,610,197 $887,583 For the governmental activities,claims and judgements and compensated absences are generally liquidated bythe general fund. The government-wide statement of activities includes$186,890 of capital leases due within one year for business-type activities in"liabilities payable from restricted assets" on that same statement. In 2005,the City issued$4,660,000 of general obligation refunding bonds for a current refunding of$4,660,000 of various bond issues. This refunding was undertaken to reduce total future debt service payments. The transaction resulted in an economic gain of$394,259. Discretely presented component unit-Wylie Economic Development Corporation: Loans Payable $878,372,payable to bank,made August 26,2005,payable in monthly installments of$9,674 -°� through October 26, 2015, including interest at 5.75% $878,372 $289,956, payable to bank, made March 1, 2004, payable in monthly installments of $5,741 through March 1,2009, including interest at 7.00%,with a final balloon payment 208,828 Total loans payable $1,087,200 Notes Payable $240,000, payable to individuals, made September 2002, interest free,payable over five years, at various amounts, assuming contractual obligations are fulfilled $150,000 NOM 55 MOP CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30,2005 Annual debt service requirements to maturity for discrete component unit debt is: Loan Payable to Bank Notes .. Year Principal Interest Total Payable 2006 $111,572 $62,162 $173,734 $100,000 -' 2007 130,327 54,273 184,600 50,000 2008 138,818 45,782 184,600 2009 106,967 37,442 144,409 -- 2010 83,405 32,297 115,702 -- SIM 2011-2015 516,112 81,682 597,794 - • - Total $1,087,201 $313,638 $1,400,839 $150,000 e-* CHANGES IN LONG-TERM LIABILITIES Long-term liability activity for the year ended September 30,2005,was as follows: Balance Balance Due Within 9/30/03 Additions Retirements 9/30/04 One Year ,,,, Discrete Component Unit: Loans payable $1,335,566 $878,372 ($1,126,738) $1,087,200 $111,572 Note Payable 235,000 -- (85,000) 150,000 150,000 Compensated absences 17,122 15,851 (12,149) 20,824 13,602 Long-Term Liabilities $1,587,688 $894,223 ($1,223,887) $1,258,024 $275,174 V. OTHER INFORMATION A. Risk management The City is exposed to various risks of loss related to torts,theft of,damage to,and destruction of assets;errors and omissions;injuries to employees;employee health benefits;and other claims of various natures. The City purchases commercial insurance to indemnify it in event of loss. For the past three years,settlements did not exceed coverage. B. North Texas Municipal Water District The District is a conservation and reclamation district and political subdivision of the State of Texas, created and functioning under Chapter 62,Acts of 1951, 52nd Legislature, Regular Session, as amended, originally compiled as Vernon's Article 8270-141 (the"Act"),pursuant to Article 16,Section 59 of the Texas Constitution. The District comprises all of the territory of its member cities,viz.,Allen,Garland, Princeton, Plano, Mesquite, .NW Wylie,Rockwall,Farmersville,McKinney,Richardson,Forney and Royse City(the"Member Cities").The District was created for the purpose of providing a source of water supply for municipal,domestic and industrial use and for the treatment processing and transportation of such water to its Member Cites and to its other customers located in North Central Texas, all within the Dallas Standard Metropolitan Statistical Area. 56 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 Under the Act, including specifically Section 27 thereof,and under the Constitution and Statutes of the State of Texas,the District has broad powers to(1)impound,control,store,preserve,treat,transmit and use storm and flood water,the water of rivers and streams and underground water, for irrigation, power and all other useful purposes and to supply water for municipal, domestic, power, industrial and commercial uses and purposes and all other beneficial uses and purposes;and(2)collect,transport,process,treat,dispose of,and control all municipal, domestic, industrial or commercial waste whether in fluid, solid or composite state, including specifically the control,abatement or reduction of all types of pollution.The City retains no ongoing financial interest equity investments and/or responsibilities for the District other than the contractual arrangements discussed more fully herein. The District has long-term contracts with the City to supply treated water and sewer treatment.The City's water contract with the District provides that the City pay a predetermined annual amount for treated water in twelve 1.16110 monthly installments. The amount of this annual payment is based upon an annually established rate per thousand gallons and the largest annual amount of water consumption of past years. The City owns one sewage treatment facility. In 1988 the City entered into an agreement with the District for improvements to the treatment facility. Under the terms of this agreement,the District issued contractually secured bonds in the W.ft amount of$2,000,000,bearing interest at rates of approximately 7.75%,with the final payment due in 2006,to construct and operate this sewage disposal plant for the City. Under terms of the contract which began when the facilities were first utilized,the City's payments are equal to the operating and maintenance expenses for the next ensuing fiscal year, as shown in the District's annual budget for the sewage treatment facility. The contract further provides the debt service payments will be equal to the principal and/or interest coming due on the bonds on the next succeeding interest payment date,plus the fees and charges of the paying agent and the registrar, and for the accumulation of funds for a debt service reserve. These contractual obligations have been included as capital lease obligations in amounts equal to the bonds outstanding under these agreements. Accordingly,the related sewage treatment facilities have been capitalized and are being depreciated over the estimated life of the facilities. Muddy Creek Regional Wastewater System In May 1999,the Cities of Wylie and Murphy in Collin County entered into a contract with the District to provide for the acquisition, construction, improvement, operation, and maintenance of the Regional Muddy Creek Wastewater System(System)for the purpose of providing facilities to adequately receive,transport,treat,and dispose of wastewater. The District will own the System with Wylie and Murphy as the initial participants. The District will issue approximately$20 million in bonds to construct this new facility. Budget calculations for operating cots and debt service for the System on the service commencement date is based on the following estimated flow ratio:City of Wylie-2/3 and Murphy-1/3. "Service Commencement Date"means the first date upon which the System is available to treat wastewater from the participants. Wylie's long-term commitment to the System's debt service component is approximately$13.3 million. The District will send each participant a letter detailing the annual requirement necessaryto operate the System each year. The annual requirement budget will include an operation and maintenance component and a bond service component. The budgeting ratio described earlier is only valid for the first year of System operations. In subsequent years,budgets and year-end audits will be based on actual flow ratios. For example,if the flow measurements indicate that 60%of the flow is produced by Wylie and 40%by Murphy,then the next year's operating and debt service components would be allocated using a 60/40 split. If in the future, additional participants are added,then the flow ratios will be adjusted using the above method. The contract with the District has a clause for"Credit for Payments Relating to the System. This clause states: "Each participant shall be entitled to a credit in an amount equal to any funds advanced by such Participant with the approval of the District for land,engineering,construction or other costs related to the System and/or the financing thereof". All credits for advances made prior to the Service Commencement Date shall bear interest from the date of such advance at a rate equal to the net effective interest rate on the initial issue of the bonds hereunder. The City of Wylie has four such credits at this time. All credits for advances made prior to the Service Commencement Date shall be amortized over a period of twenty years,with such amortization to commence on October 1 of the Fiscal Year following the Service Commencement Date. At September 30, 57 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 •• 2005,the City had recorded$3,188,849 as a restricted accounts receivable. This amount will be amortized over a twenty year period commencing with fiscal year 2006. VIM D. Contingent Liabilities and Commitments Amounts received or receivable from grantor agencies are subject to audit and adjustment by such agencies. -- Any disallowed claims,including amounts already collected may constitute a liability of the applicable funds. The amounts,if any,of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any,to be immaterial. NOM The City periodically is defendant in various lawsuits. At September 30,2005,after consultation with the City's attorney,the City is not aware of any pending litigation. As described in Note IV E above,the general revenues of the City are contingently liable for the$3,699,444 payable in General Obligation Bonds which are currently outstanding and recorded as obligations of the Enterprise Fund. The City contracts for garbage disposal with a third party. Under the terms of the agreement the city bills and collects the residential billing and remits that amount to the contracting party. The contractor bills the commercial customers and remits a franchise fee to the City based on total revenues received from the contract. The City has commitments for capital equipment,including a fire truck,grass truck chassis,radio system,and dispatch equipment. At September 30,2005,these commitments totaled$969,682. *- The Wylie Economic Development Corporation provides monetary incentives to companies to relocate within the City of Wylie. At September 30, 2005,these commitments totaled$169,575. E. Employee retirement systems and pension plans The City participates in the Texas Municipal Retirement System. .. Plan Description-The City provides pension benefits for all of its full-time employees through a nontraditional, joint contributory,hybrid defined benefit plan in the state-wide Texas Municipal Retirement System(TMRS),one of over 801 administered by TMRS,an agent multiple-employer public employee retirement system. Each of WPM the 801 municipalities has an annual, individual actuarial valuation performed. All assumptions for the December 31,2004 valuations are contained in the 2004 TM RS Comprehensive Annual Financial Report which can be obtained by writing to P.O. Box 149153,Austin,Texas, 78714-9153. Benefits depend upon the sum of the employee's contributions to the plan,with interest,and the City-financed monetary credits, with interest. At the date the plan began, the City granted monetary credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee,with interest, prior to establishment of the plan. Monetary credits for service since the plan began are a percent(100%) of the employee's accumulated contributions. In addition,the City can grant as often as annually another type of monetary credit referred to as an updated service credit which is a theoretical 11111101 amount which,when added to the employee's accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if the current employee contribution rate and City matching percent had always been in existence and if the employee's salary had always been the average of his salary in the last three years that are one year •- before the effective date. At retirement,the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employer-financed monetary credits with interest were used to purchase an annuity. IMP 58 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 The plan provisions are adopted by the governing body of the City,within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. Plan provisions for the City were as follows: Deposit rate: 7% .44 Matching Ratio (City to Employee): 2-1 Members can retire at ages 60 and above with 5 or more years of service or with 20 years of service regardless of age. A member is vested after 5 years. Contributions-Under the state law governing TMRS,the actuary annually determines the City contribution rate. The rate consists of the normal cost contribution rate and the prior service contribution rate, both of which are calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the currently accruing monetary credits due to the City matching percent,which are the obligation of the City as of an employee's retirement date, not at the time the employee's contributions are made. The normal cost 4.14 contribution rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the City to each employee at the time his/her retirement becomes effective. The prior service contribution rate amortizes the unfunded(overfunded)actuarial liability(asset)over the remainder of the plan's 25-year amortization period. �- The unit credit actuarial cost method is used for determining the City contribution rate. Both the employees and the City make contributions monthly. Since the City needs to know its contribution rate in advance for budgetary purposes,there is a one-year delay between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect, i.e. December 31, 2004 valuation is effective for rates 04.4 beginning January 2006. Schedule of Actuarial Liabilities and Funding Progress Actuarial Valuation Date 12/31/04 12/31/03 12/31/02 Actuarial Value of Assets $7,984,378 $6,827,365 $5,548,882 Actuarial Accrued Liabilities 9,649,974 9,400,060 7,400,295 Percentage Funded 82.7% 72.6% 75.0% Unfunded (Over-funded)Actuarial Accrued Liability(UAAL) 1,665,596 2,572,695 1,851,413 Annual Covered Payroll 7,138,199 6,006,165 5,388,458 UAAL as a Percentage of Covered Payroll 23.3% 42.8% 34.4% Net Pension Obligation (NPO) at the Beginning of Period _- ° Annual Pension Cost: Annual Required Contribution (ARC) 819,210 603,752 513,247 Interest on NPO Adjustment to the ARC 819,210 603,752 513,247 Contributions Made (100%) 819,210 603,572 513,247 Increase in NPO NPO at the End of Period $ -- $ -- $ -- MVO59 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30,2005 OMB Actuarial Assumptions Actuarial Cost Method Unit Credit Amortization Method Level Percent of Payroll Remaining Amortization 25 Years-Open Period Asset Valuation Method Amortized Cost Investment Rate of Return 7% Projected Salary Increases None Includes Inflation At None Cost of Living Adjustments None G. Related Party Transactions "'MM The chairman of the board of directors of the Wylie Economic Development Corporation (WEDC) is the president of a local bank. During the year ended September 30,2005,WEDC entered into a loan agreement with this bank for$878,372,payable over a ten year term,with interest rates of 5.75%for the first five years and 6.20%for the next five years. Additionally,WEDC has deposits of$154,491 with this bank as of September 30, 2005. H. Condensed Financial Information for Discrete Component Unit Following is selected condensed financial statement information for the fund basis financial statements of the Wylie Economic Development Corporation: Balance Sheet WEDC Assets Current assets $2,498,591 Deferred charges 150,000 Total Assets $2,648,591 a Liabilities Current liabilities $37,117 Deferred revenue 215,311 Long-term liabilities 150,000 Total Liabilities 402,428 Fund Balance 2,246,163 MAIM Total Liabilities and Fund Balance $2,648,591 MOP 60 a CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 Revenues and Expenditures WEDC Revenues $1.677.515 Current Expenditures 1,417,294 Debt service 1,178,314 Total expenditures 2,595,608 Deficiency of revenues under expenditures (918,093) Other financing sources 878,372 Net change in fund balances (39,721) Fund balance October 1 2,285,884 $2,246,163 Following are reconciliations between the government-wide financial statements and the fund basis financial MOM statements for WEDC: Reconciliation of Balance Sheet WEDC Total fund balance $2,246,163 Capital assets not reported in the funds 486,192 Accrued interest payable (9,201) Payable for loan principal not due currently (1,087,200) Payables for compensated absences (20,823) Net Assets-statement of net assets $1,615,131 ASIM Reconciliation of Statement of Revenues, Expenditures and Fund Balances WEDC �.. Net change in fund balances ($39,721) Proceeds of loan (878,372) Repayment of loan principal 1,126,738 Capital outlay 325,307 Depreciation (7,483) VOW Interest expense (615) Change in compensated absences (3,702) Change in net assets $522,152 MOW I. Land Acquisition The discrete component unit owns property with a carrying value of$1,304,874. This property is held as an incentive to attract businesses. 61 CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS Year Ended September 30, 2005 J. Subsequent Event A vote of the citizens approved the issuance of general obligation bonds in the amount of$73,950,000 on November 5, 2005. .,s 62 4.9 AAIM Required Supplementary Information Required supplementary information includes financial information and disclosures required by the Governmental Accounting Standards Board but not considered a part of the basic financial statements. 40009 MOM MVP 63 CITY OF WYLIE, TEXAS EXHIBIT B-1 .... GENERAL FUND Page 1 of 2 BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2005 Variance with .. Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: "^ Ad valorem taxes $ 7,713,530 $ 7,713,530 $ 7,792,002 $ 78,472 Non-property taxes 1,807,630 1,807,630 1,783,376 (24,254) Franchise fees 1,399,700 1,399,700 1,407,351 7,651 Licenses and permits 1,404,500 1,404,500 1,260,963 (143,537) .. Intergovernmental 299,000 387,210 773,875 386,665 Services fees 1,624,900 1,624,900 1,596,694 (28,206) Court fees 363,000 363,000 427,892 64,892 ... Interest income 50,000 50,000 186,088 136,088 Miscellaneous income 60,000 97,400 133,431 36,031 Total revenues 14,722,260 14,847,870 15,361,672 513,802 Expenditures: Current: General government City Council 93,100 93,100 47,401 45,699 City Manager 782,670 782,670 722,798 59,872 City Secretary 201,670 211,870 192,166 19,704 Municipal Court 235,320 235,320 193,126 42,194 . Finance 588,770 588,770 510,588 78,182 Building and Fleet Maintenance 373,580 379,480 389,009 (9,529) Combined Services/General 1,432,120 1,657,020 1,712,395 (55,375) Total General Government 3,707,230 3,948,230 3,767,483 180,747 •• Public Safety Police 3,501,750 3,511,250 3,290,854 220,396 Fire 3,144,580 3,456,580 3,550,605 (94,025) .. Animal Control 164,870 164,870 156,413 8,457 Total Public Safety 6,811,200 7,132,700 6,997,872 134,828 Urban development Planning 321,330 322,030 243,666 78,364 Building Inspection 714,990 714,990 641,357 73,633 Code Enforcement 85,940 85,940 68,547 17,393 .. Total Urban development 1,122,260 1,122,960 953,570 169,390 Streets Streets 1,402,030 1,418,330 1,345,498 72,832 .- Total Streets 1,402,030 1,418,330 1,345,498 72,832 Community service Parks 1,397,920 1,415,920 1,224,254 191,666 . Recreation 352,830 353,830 315,593 38,237 Library 599,070 623,780 749,718 (125,938) Total Community Service 2,349,820 2,393,530 2,289,565 103,965 ... (CONTINUED) 64 - CITY OF WYLIE, TEXAS EXHIBIT B-1 GENERAL FUND Page 2 of 2 BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2005 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) — Debt service: Principal $ 95,000 $ 95,000 $ 95,000 $ -- Interest and fiscal charges 8,680 8,680 8,708 (28) - Bond issuance costs -- -- 8,401 (8,401) Total Debt Service 8,680 8,680 17,109 (8,429) Total expenditures 15,496,220 16,119,430 15,466,097 653,333 Excess(deficiency) of revenues over (under)expenditures (773,960) (1,271,560) (104,425) 1,167,135 "" Other financing sources(uses): Transfers in 420,000 420,000 420,000 -- Transfers out (492,000) (492,000) (667,243) (175,243) Issuance of long-term debt -- -- 622,500 622,500 Premium on bonds issued -- -- 9,949 9,949 Discount on bonds issued -- -- (4,018) (4,018) Proceeds from capital leases -- -- 48,336 48,336 - Total other financing sources(uses) (72,000) (72,000) 429,524 501,524 Net change in fund balances (845,960) (1,343,560) 325,099 1,668,659 — Fund balances, October 1 4,167,964 4,167,964 4,167,964 -- Fund balances, September 30 $ 3,322,004 $ 2,824,404 $ 4,493,063 $ 1,668,659 ""' 65 CITY OF WYLIE, TEXAS EXHIBIT B-2 -" 4B SALES TAX REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2005 Variance with -- Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: "'" Non-property taxes $ 901,720 $ 901,720 $ 885,607 $ (16,113) Interest income 5,000 5,000 16,465 11,465 Miscellaneous income -- -- 488 488 . Total revenues 906,720 906,720 902,560 (4,160) Expenditures: Current: Community service 4B Parks 377,280 6,851,380 6,113,042 738,338 48 Recreation -- -- 787 (787) Total Community Service 377,280 6,851,380 6,113,829 737,551 -'" Debt service: Interest and fiscal charges -- -- 270 (270) Bond issuance costs -- -- 75,612 (75,612) .- Total Debt Service -- -- 75,882 (75,882) Total expenditures 377,280 6,851,380 6,189,711 661,669 . Excess(deficiency)of revenues over (under)expenditures 529,440 (5,944,660) (5,287,151) 657,509 Other financing sources(uses): Transfers out (144,130) (284,130) (276,604) 7,526 Issuance of long-term debt -- 6,284,000 5,602,500 (681,500) Premium on bonds issued -- -- 89,541 89,541 . Discount on bonds issued -- -- (36,160) (36,160) Total other financing sources(uses) (144,130) 5,999,870 5,379,277 (620,593) Net change in fund balances 385,310 55,210 92,126 36,916 Fund balances, October 1 642,922 642,922 642,922 -- Fund balances, September 30 $ 1,028,232 $ 698,132 $ 735,048 $ 36,916 66 -" CITY OF WYLIE, TEXAS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION Year Ended September 30, 2005 STEWARDSHIP,COMPLIANCE,AND ACCOUNTABILITY A. Budgetary information The City follows the following procedures in establishing the budgetary data reflected in the financial statements: 1. Public hearings are conducted to obtain taxpayer comments. 2. Prior to October 1,the budget is legally enacted through passage of an ordinance. 3. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however,any revisions that alter the total expenditures of any fund must be approved by the City Council. Therefore the fund level is the legal level of control. 4. Budgeted amounts are as originally adopted or as amended by the City Council.During 2005,individual amendments were not material in relation to the original appropriations. Any budgeted amounts appropriated at fiscal year-end and not spent automatically lapse. 5. Capital Project funds were not budgeted.Since project length financial plans usually extend into two or more fiscal years,this makes comparisons confusing and misleading. 6. Formal budgetary integration is employed as a management control device during the year.The legally adopted budgets for the General Fund,Special Revenue Funds, and the Debt Service Funds are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the following funds: General Fund Special Revenue Funds 4B Sales Tax Revenue Fund Park Acquisition and Improvement Fund Emergency Communications Fund Fire Training Center 4111.04 Debt Service Funds General Obligation Debt Service . 4B Debt Service 1996 4B Debt Service 2005 All annual appropriations lapse at fiscal year end. WNW B. Deficit fund equity The following fund had a deficit fund balance at September 30,2005: Debt Service Funds 4B Debt Service 2005 $6,998 The deficit is a result of under funding of a new debt service fund in the initial phase of its operation. The deficit is expected to be made up in the following fiscal year by an increase in sales tax revenue. 67 w NNW MOO This page is left blank intentionally. MIN 68 Combining Statements and Budget Comparisons as Supplementary Information This supplementary information includes financial statements and schedules not required by the Governmental Accounting W. Standards Board, nor a part of the basic financial statements, but are presented for purposes of additional analysis. 69 EXHIBIT C-1 •■* CITY OF WYLIE, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2005 Total Nonmajor .. Special Debt Capital Governmental Revenue Service Projects Funds(See Funds Funds Funds Exhibit A-3) ASSETS Cash and cash equivalents $ 90,765 $ 2,181 $ 1,473 $ 94,419 Investments 909,355 160,352 488,546 1,558,253 Receivables(net of allowances for uncollectibles): - Accounts 80,182 -- -- 80,182 Due from other funds -- 5,201 -- 5,201 Total Assets $ 1,080,302 $ 167,734 $ 490,019 $ 1,738,055 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 111,654 $ -- $ -- $ 111,654 Other payables and accruals 51,984 -- -- 51,984 Due to other funds -- 7,039 -- 7,039 Total Liabilities 163,638 7,039 -- 170,677 -- Fund balances: Reserved for: Debt service -- 160,695 -- 160,695 Unreserved, reported in: Special revenue funds 916,664 -- -- 916,664 Capital projects funds -- -- 490,019 490,019 Total fund balances 916,664 160,695 490,019 1,567,378 Total Liabilities and Fund Balances $ 1,080,302 $ 167,734 $ 490,019 $ 1,738,055 70 EXHIBIT C-2 CITY OF WYLIE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, ,* AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2005 Total Nonmajor Special Debt Capital Governmental Revenue Service Projects Funds(See Funds Funds Funds Exhibit A-5) Revenues: Services fees $ 497,780 $ -- $ -- $ 497,780 Interest income 19,750 6,203 13,895 39,848 Miscellaneous income 177,492 3,439 -- 180,931 �" Total revenues 695,022 9,642 13,895 718,559 Expenditures: ,,,p, Current: Public Safety 753,542 -- -- 753,542 Community service 151,605 -- -- 151,605 Debt service: m•- Principal -- 75,000 -- 75,000 Interest and fiscal charges -- 210,675 -- 210,675 Total expenditures 905,147 285,675 -- 1,190,822 ' " Excess(deficiency)of revenues over (under)expenditures (210,125) (276,033) 13,895 (472,263) Other financing sources(uses): Transfers in 492,000 276,604 -- 768,604 Total other financing sources(uses) 492,000 276,604 -- 768,604 Net change in fund balances 281,875 571 13,895 296,341 Fund balances, October 1 634,789 160,124 476,124 1,271,037 Fund balances, September 30 $ 916,664 $ 160,695 $ 490,019 $ 1,567,378 71 EXHIBIT C-3 w CITY OF WYLIE, TEXAS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS SEPTEMBER 30, 2005 Total Nonmajor Special �.. Fire Revenue Park Acquisition Emergency Training Funds(See &Improvement Communication Center Exhibit C-1) ASSETS Cash and cash equivalents $ 77,926 $ 7,408 $ 5,431 $ 90,765 Investments 306,389 492,571 110,395 909,355 Receivables(net of allowances for uncollectibles): '- Accounts 49,619 30,563 -- 80,182 Total Assets $ 433,934 $ 530,542 $ 115,826 $ 1,080,302 LIABILITIES AND FUND BALANCES w Liabilities: Accounts payable $ 46,926 $ 64,213 $ 515 $ 111,654 .. Other payables and accruals 44,000 7,984 -- 51,984 Total Liabilities 90,926 72,197 515 163,638 Fund balances: -- Unreserved 343,008 458,345 115,311 916,664 Total fund balances 343,008 458,345 115,311 916,664 Total Liabilities and Fund Balances $ 433,934 $ 530,542 $ 115,826 $ 1,080,302 w+e 72 EXHIBIT C-4 CITY OF WYLIE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2005 Total Nonmajor Special Fire Revenue Park Acquisition Emergency Training Funds(See & Improvement Communication Center Exhibit C-2) °- Revenues: Services fees $ -- $ 466,286 $ 31,494 $ 497,780 Interest income 9,034 8,194 2,522 19,750 Miscellaneous income 175,004 2,488 -- 177,492 Total revenues 184,038 476,968 34,016 695,022 Expenditures: Current: Public Safety -- 743,743 9,799 753,542 Community service _ 151,605 -- -- 151,605 Total expenditures 151,605 743,743 9,799 905,147 Excess(deficiency)of revenues over (under) expenditures 32,433 (266,775) 24,217 (210,125) - Other financing sources(uses): Transfers in -- 492,000 -- 492,000 Total other financing sources(uses) -- 492,000 -- 492,000 Net change in fund balances 32,433 225,225 24,217 281,875 Fund balances, October 1 310,575 233,120 91,094 634,789 Fund balances, September 30 $ 343,008 $ 458,345 $ 115,311 $ 916 664 73 CITY OF WYLIE, TEXAS EXHIBIT C-5 PARK ACQUISITION AND IMPROVEMENT SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2005 Variance with ... Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: -- Intergovernmental $ -- $ 150,100 $ -- $ (150,100) Interest income -- -- 9,034 9,034 Miscellaneous income 142,500 142,500 175,004 32,504 Total revenues 142,500 292,600 184,038 (108,562) Expenditures: Current: Community service Park Acquisition- West Zone 63,500 113,500 52,263 61,237 Park Acquisition-Central Zone 127,000 199,000 21,902 177,098 Park Acquisition-East Zone 75,000 75,000 77,440 (2,440) Total Community Service 265,500 387,500 151,605 235,895 Total expenditures _ 265,500 387,500 151,605 235,895 Net change in fund balances (123,000) (94,900) 32,433 127,333 Fund balances, October 1 310,575 310,575 310,575 -- -„ Fund balances, September 30 $ 187,575 $ 215,675 $ 343,008 $ 127,333 74 ""` CITY OF WYLIE, TEXAS EXHIBIT C-6 EMERGENCY COMMUNICATION FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2005 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) `"` Revenues: Services fees $ 370,000 $ 370,000 $ 466,286 $ 96,286 Interest income -- -- 8,194 8,194 Miscellaneous income -- -- 2,488 2,488 Total revenues 370,000 370,000 476,968 106,968 Expenditures: - Current: Public Safety Dispatch Services 1,000,140 1,007,860 743,743 264,117 Total Public Safety 1,000,140 1,007,860 743,743 264,117 Total expenditures 1,000,140 1,007,860 743,743 264,117 Excess(deficiency)of revenues over (under) expenditures (630,140) (637,860) (266,775) 371,085 Other financing sources(uses): - Transfers in 492,000 492,000 492,000 -- Total other financing sources(uses) 492,000 492,000 492,000 -- Net change in fund balances (138,140) (145,860) 225,225 371,085 Fund balances, October 1 233,120 233,120 233,120 -- Fund balances, September 30 $ 94,980 $ 87,260 $ 458,345 $ 371,085 75 CITY OF WYLIE, TEXAS EXHIBIT C-7 FIRE TRAINING CENTER SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2005 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Services fees $ 60,000 $ 60,000 $ 31,494 $ (28,506) Interest income 300 300 2,522 2,222 Total revenues 60,300 60,300 34,016 (26,284) Expenditures: Current: Public Safety — Fire Training Center 139,000 139,000 9,799 129,201 Total Public Safety 139,000 139,000 9,799 129,201 Total expenditures 139,000 139,000 9,799 129,201 Net change in fund balances (78,700) (78,700) 24,217 102,917 Fund balances, October 1 91,094 91,094 91,094 -- ... Fund balances, September 30 $ 12,394 $ 12,394 $ 115,311 $ 102,917 76 EXHIBIT C-8 CITY OF WYLIE, TEXAS COMBINING BALANCE SHEET """ NONMAJOR DEBT SERVICE FUNDS SEPTEMBER 30, 2005 Total Nonmajor Debt Service 4B Debt 4B Debt Funds(See Service 1996 Service 2005 Exhibit C-1) ASSETS Cash and cash equivalents $ 1,840 $ 341 $ 2,181 Investments 160,352 -- 160,352 Due from other funds 5,201 -- 5,201 Total Assets $ 167,393 $ 341 $ 167,734 LIABILITIES AND FUND BALANCES Liabilities: Due to other funds $ -- $ 7,039 $ 7,039 Total Liabilities -- 7,039 7,039 Fund balances: ,, „, Reserved for: Debt service 167,393 (6,698) 160,695 Total fund balances(deficits) 167,393 (6,698) 160,695 Total Liabilities and Fund Balances $ 167,393 $ 341 $ 167,734 77 ..a EXHIBIT C-9 CITY OF WYLIE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —• NONMAJOR DEBT SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2005 Total Nonmajor Debt Service 4B Debt 4B Debt Funds(See Service 1996 Service 2005 Exhibit C-2) Revenues: Interest income $ 3,883 $ 2,320 $ 6,203 Miscellaneous income 3,098 341 3,439 Total revenues 6,981 2,661 9,642 .. Expenditures: Debt service: Principal 75,000 -- 75,000 Interest and fiscal charges 68,842 141,833 210,675 Total expenditures 143,842 141,833 285,675 Excess(deficiency)of revenues over (under)expenditures (136,861) (139,172) (276,033) Other financing sources(uses): Transfers in 144,130 132,474 276,604 Total other financing sources(uses) 144,130 132,474 276,604 Net change in fund balances 7,269 (6,698) 571 .•. Fund balances, October 1 160,124 -- 160,124 Fund balances(deficits), September 30 $ 167,393 $ (6,698) $ 160,695 78 CITY OF WYLIE, TEXAS EXHIBIT C-10 GENERAL OBLIGATION DEBT SERVICE DEBT SERVICE FUND — BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2005 -ra Variance with Final Budget Budgeted Amounts Positive _ Original Final Actual (Negative) Revenues: Ad valorem taxes $ 1,929,980 $ 1,929,980 $ 1,962,035 $ 32,055 Interest income 7,000 7,000 18,197 11,197 Total revenues 1,936,980 1,936,980 1,980,232 43,252 Expenditures: Current: Debt service: Principal 1,234,890 1,234,890 1,234,888 2 Interest and fiscal charges 705,890 705,890 550,223 155,667 - Bond issuance costs -- -- 92,206 (92,206) Total Debt Service 705,890 705,890 642,429 63,461 Total expenditures 1,940,780 1,940,780 1,877,317 63,463 Excess(deficiency)of revenues over (under)expenditures (3,800) (3,800) 102,915 106,715 — Other financing sources(uses): Issuance of long-term debt -- -- 1,829,700 1,829,700 Premium on bonds issued -- -- 61,306 61,306 Discount on bonds issued -- -- (44,436) (44,436) Payment to refunded bond escrow agent -- -- (1,866,358) (1,866,358) Total other financing sources(uses) -- -- (19,788) (19,788) Net change in fund balances (3,800) (3,800) 83,127 86,927 Fund balances, October 1 555,407 555,407 555,407 -- Fund balances, September 30 $ 551,607 $ 551,607 $ 638,534 $ 86,927 79 CITY OF YLIE, TEXAS EXHIBIT C-11 .. W 48 DEBT SERVICE 1996 DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE - FOR THE YEAR ENDED SEPTEMBER 30, 2005 Variance with "'. Final Budget Budgeted Amounts Positive Original Final Actual (Negative) ,., Revenues: Interest income $ 1,200 $ 1,200 $ 3,883 $ 2,683 Miscellaneous income -- -- 3,098 3,098 Total revenues 1,200 1,200 6,981 5,781 -- Expenditures: Debt service: Principal 75,000 75,000 75,000 -- Interest and fiscal charges 69,130 69,130 68,842 288 Total Debt Service 144,130 144,130 143,842 288 Total expenditures 144,130 144,130 143,842 288 .. Excess(deficiency) of revenues over (under) expenditures (142,930) (142,930) (136,861) 6,069 .. Other financing sources(uses): Transfers in 144,130 144,130 144,130 -- Total other financing sources(uses) 144,130 144,130 144,130 -- """ Net change in fund balances 1,200 1,200 7,269 6,069 Fund balances, October 1 160,124 160,124 160,124 -- .. Fund balances, September 30 $ 161,324 $ 161,324 $ 167,393 $ 6,069 .. .. .. .. 80 CITY OF WYLIE, TEXAS EXHIBIT C-12 48 DEBT SERVICE 2005 DEBT SERVICE FUND """ BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2005 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Interest income $ -- $ -- $ 2,320 $ 2,320 Miscellaneous income -- 19,000 341 (18,659) — Total revenues -- 19,000 2,661 (16,339) Expenditures: Debt service: — Interest and fiscal charges -- 158,000 141,833 16,167 Total Debt Service -- 158,000 141,833 16,167 „. Total expenditures -- 158,000 141,833 16,167 Excess(deficiency) of revenues over (under)expenditures -- (139,000) (139,172) (172) Other financing sources(uses): Transfers in -- 140,000 132,474 (7,526) Total other financing sources(uses) -- 140,000 _ 132,474 (7,526) Net change in fund balances -- 1,000 (6,698) (7,698) ,,,w, Fund balances, October 1 -- -- -- -- Fund balances (deficits), September 30 $ -- $ 1,000 $ (6,698) $ (7,698) 40. 411. 9,1110 81 EXHIBIT C-13 """ CITY OF WYLIE, TEXAS COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS SEPTEMBER 30, 2005 Total Nonmajor Capital -* Projects Street Parks Funds(See Perimeter Construction Exhibit C-1) ASSETS Cash and cash equivalents $ 795 $ 678 $ 1,473 Investments 426,172 62,374 488,546 Total Assets $ 426,967 $ 63,052 $ 490,019 FUND BALANCES Unreserved $ 426,967 $ 63,052 $ 490,019 Total fund balances 426,967 63,052 490,019 Total Liabilities and Fund Balances $ 426,967 $ 63,052 $ 490,019 a a a a 82 EXHIBIT C-14 CITY OF WYLIE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, , .. AND CHANGES IN FUND BALANCES NONMAJOR CAPITAL PROJECTS FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2005 Total Nonmajor Capital Projects Street Parks Funds(See Perimeter Construction Exhibit C-2) Revenues: Interest income $ 12,187 $ 1,708 $ 13,895 Total revenues 12,187 1,708 13,895 Net change in fund balances 12,187 1,708 13,895 Fund balances, October 1 414,780 61,344 476,124 Fund balances, September 30 $ 426,967 $ 63,052 $ 490,019 83 CITY OF WYLIE, TEXAS EXHIBIT C-15 WYLIE ECONOMIC DEVELOPMENT CORPORATION DISCRETE COMPONENT UNIT GENERAL FUND BUDGETARY COMPARISON SCHEDULE — FOR THE YEAR ENDED SEPTEMBER 30, 2005 Variance with . Final Budget Budgeted Amounts Positive Original Final Actual (Negative) .. Revenues: Non-property taxes $ 901,720 $ 901,720 $ 885,608 $ (16,112) Land sales -- -- 776,120 776,120 Interest income 3,500 3,500 15,136 11,636 ... Miscellaneous income -- -- 651 651 Total revenues 905,220 905,220 1,677,515 772,295 Expenditures: Current: Urban development Economic development 724,840 724,840 1,428,479 (703,639) Total Urban development 724,840 724,840 1,428,479 (703,639) ... Debt service: Principal 166,204 166,204 1,126,738 (960,534) .., Interest and fiscal charges 51,576 51,576 52,192 (616) Total Debt Service 217,780 217,780 1,178,930 (961,150) Total expenditures 942,620 942,620 2,607,409 (1,664,789) .- Excess(deficiency) of revenues over (under)expenditures (37,400) (37,400) (929,894) (892,494) Other financing sources(uses): Issuance of long-term debt -- -- 878,372 878,372 Total other financing sources(uses) -- -- 878,372 878,372 ,,,,, Net change in fund balances (37,400) (37,400) (51,522) (14,122) Fund balances, October 1 1,666,652 1,666,652 1,666,652 -- — Fund balances, September 30 $ 1,629,252 $ 1,629,252 $ 1,615,130 $ (14,122) .. 84 agaa Statistical Section 46.4.1 .1.141 WOolt 85 CITY OF WYLIE, TEXAS '" GOVERNMENT-WIDE EXPENSES BY FUNCTION(1) LAST TEN FISCAL YEARS (UNAUDITED) Fiscal General Public Urban Community Year Government Safety Development Streets Services 1996 $ -- $ -- $ -- $ -- $ -- a 1997 -- -- -- -- -- 1998 -- -- -- -- -- 1999 -- -- -- -- -- 2000 -- -- -- -- -- a 2001 -- -- -- -- -- 2002 -- -- -- -- -- """ 2003 2,946,474 4,868,978 723,553 2,619,793 1,866,710 2004 3,360,719 5,898,710 839,258 3,507,891 2,118,200 2005 3,490,621 7,437,298 958,368 4,003,282 2,348,580 (1) GASB 34 was first implemented for the year ended September 30,2003. w a a 86 TABLE D-1 Interest on Long-term Water and Debt Sewer Utility Total $ -- $ -- $ 4.110 897,371 4,531,676 18,454,555 836,290 5,155,675 21,716,743 1,019,842 7,332,313 26,590,304 Woh IMMO 104. 401.40 87 CITY OF WYLIE, TEXAS GOVERNMENT-WIDE REVENUES(1) LAST TEN FISCAL YEARS (UNAUDITED) PROGRAM REVENUES Operating Capital Fiscal Charges Grants and Grants and Year for Services Contributions Contributions 1996 $ -- $ 1997 -- -- -- 1998 -- -- -_ 1999 -- -- __ 2000 -- -- __ -- 2001 -- -- __ 2002 -- -- -- '" 2003 9,853,323 67,139 3,736,476 2004 11,049,274 42,088 14,766,639 2005 12,290,515 61,271 18,407,411 (1) GASB 34 was first implemented for the year ended September 30,2003. S 88 TABLE D-2 GENERAL REVENUES Unrestricted Investment Miscellaneous Disposal of Taxes Earnings Income Capital Assets Total $ $ $ $ $ 9,625,028 415,865 97,478 6,207 23,801,516 12,069,426 337,937 157,192 -- 38,422,556 13,868,920 881,119 688,377 193,305 46,390,918 MOM WOW PIM 89 CITY OF YLIE, TEXAS "~W GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION(1) LAST TEN FISCAL YEARS (UNAUDITED) -.. Fiscal General Public Urban Community .. Year Government Safety Development Streets Services 1996 $ 1,548,324 $ 1,448,091 $ 187,052 $ 486,598 $ 374,479 — 1997 1,840,800 1,666,877 187,755 511,610 455,349 1998 1,840,230 1,713,291 244,198 668,928 623,980 1999 2,877,573 2,681,027 335,778 449,737 592,189 2000 2,243,847 2,763,704 418,151 561,432 893,465 . 2001 2,553,293 3,144,614 550,994 445,148 1,166,681 2002 2,946,905 4,120,896 711,194 934,866 1,429,176 2003 3,067,478 4,761,956 707,450 721,335 1,887,165 2004 3,380,349 5,773,019 827,281 1,213,454 2,094,914 2005 3,767,483 7,751,414 953,570 1,345,498 8,554,999 MN (1) Includes expenditures of the General Fund, Special Revenue Funds,and the Debt Service Funds. Other financing uses are not included. Capital outlay expenditures are included in the above totals by functional area. (2) General Government expenditures include the following functional areas: City Council, City Manager, City Secretary, Finance, Municipal Court, Building and Fleet Maintenance and Combined Services. . (3) Public Safety expenditures include the following functional areas: Police, Fire, and Animal Control. (4) Streets expenditures include the following functional areas: Streets and Drainage. '^' (5) Community Services expenditures include the following functional areas: Library, Parks and Recreation. (6) Urban Development expenditures include the following functional area: Development Services. ... (7) Debt Service Expenditures include debt service of the General Obligation and 4B debt service Funds. 90 TABLE D-3 Debt Service Total $ 649,985 $ 4,694,529 690,384 5,352,775 702,271 5,792,898 874,452 7,810,756 1,186,455 8,067,054 1,409,509 9,270,239 1,843,713 11,986,750 2,066,273 13,211,657 2,177,326 15,466,343 2,350,983 24,723,947 101,40 PPow 91 CITY OF WYLIE, TEXAS .. GENERAL GOVERNMENTAL REVENUES BY SOURCE(1) LAST TEN FISCAL YEARS (UNAUDITED) .. Licenses Fiscal Ad Valorem Sales Franchise and Inter- "' Year Taxes Taxes(2) Taxes Permits governmental Fees(3) 1996 $ 2,401,503 $ 793,976 $ 542,779 $ 107,329 $ 64,993 $ 713,919 1997 2,736,072 944,620 609,656 130,574 75,235 785,384 1998 2,920,124 968,730 626,729 201,454 174,364 945,917 .. 1999 3,146,326 1,143,102 710,618 313,225 183,860 1,092,487 2000 3,829,263 1,182,764 705,545 380,124 305,156 1,354,440 `"' 2001 4,509,741 1,265,091 816,944 739,570 263,330 1,569,585 2002 5,549,904 1,425,506 958,066 1,131,544 365,316 2,128,349 2003 6,789,129 1,513,254 1,062,766 1,708,903 360,135 1,989,787 .. 2004 8,173,918 2,130,572 1,382,731 1,522,039 532,857 2,384,182 2005 9,754,037 2,668,983 1,407,351 1,260,963 773,875 2,522,366 (1) Includes revenues in the General, Special Revenue, and Debt Service Funds. (2) Total sales tax remitted to the City of Wylie is two cents on each dollar of taxable sales. The General Fund receives one cent,the Wylie Economic Development Corporation(WEDC) receives one-half cent and the Parks and Recreation Facilities Development Corporation receives one-half cent. The WEDC one-half cent is not included in this table because it is a discretely presented component unit. (3) Fees includes service and court fees. .. .. 92 TABLE D-4 Interest Miscellaneous Total $ 90,703 $ 40,572 $ 4,755,774 103,967 38,614 5,424,122 128,595 74,018 6,039,931 144,086 60,991 6,794,695 178,398 79,095 8,014,785 162,664 73,202 9,400,127 93,565 159,768 11,812,018 79,563 322,310 13,825,847 77,821 140,662 16,344,782 246,703 314,850 18,949,128 93 CITY OF WYLIE, TEXAS TABLE D-5 .. PROPERTY TAX LEVIES AND COLLECTIONS(1) LAST TEN FISCAL YEARS (UNAUDITED) Ratio of Ratio of Percent Total Tax Delinquent Total of Current Delinquent Total Collections Outstanding Taxes Fiscal Tax Current Tax Taxes Tax Tax to Total Delinquent to Total a Year Levy Collections Collected Collections Collections Tax Levy Taxes Tax Levy 1996 $ 2,304,318 $ 2,338,367 101.5% $ 36,894 $ 2,375,261 103.1% $ 195,564 8.5% a 1997 2,673,944 2,636,405 98.6% 65,880 2,702,285 101.1% 172,388 6.4% 1998 2,882,071 2,836,280 98.4% 42,583 2,878,863 99.9% 122,197 4.2% "' 1999 3,161,383 3,095,579 97.9% 28,033 3,123,612 98.8% 118,386 3.7% 2000 3,799,949 3,739,402 98.4% 44,588 3,783,990 99.6% 124,608 3.3% a 2001 4,482,580 4,413,866 98.5% 52,355 4,466,221 99.6% 233,912 5.2% a 2002 5,551,269 5,413,295 97.5% 82,696 5,495,991 99.0% 285,494 5.1% 2003 6,900,461 6,567,156 95.2% 136,594 6,703,750 97.1% 255,888 3.7% 2004 8,229,415 8,029,289 97.6% 74,574 8,103,863 98.5% 343,551 4.2% 2005 10,041,005 9,524,055 94.9% 159,178 9,683,233 96.4% 316,609 3.2% milt (1) Source: City of Wylie records. w w a a a a 94 CITY OF WYLIE, TEXAS TABLE D-6 ASSESSED AND ESTIMATED ACTUAL VALUE OF PROPERTY(1) LAST TEN FISCAL YEARS (UNAUDITED) Ratio of Total Assessed Value Fiscal Assessed Estimated To Total Estimated Year Value Actual Value Actual Value - 1996 $ 365,544,611 $ 365,544,611 100.00% 1997 402,096,840 402,096,840 100.00% - 1998 426,893,235 426,893,235 100.00% 1999 467,859,478 467,859,478 100.00% 2000 542,634,443 542,634,443 100.00% 2001 616,206,518 616,206,518 100.00% - 2002 753,797,959 753,797,959 100.00% 2003 929,246,605 929,246,605 100.00% 2004 1,130,974,581 1,130,974,581 100.00% 2005 1,395,316,995 1,395,316,995 100.00% (1) Starting in 1982, all taxable property was assessed at 100%of actual market value as required 95 CITY OF WYLIE, TEXAS TABLE D-7 PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS(1) LAST TEN FISCAL YEARS ... (UNAUDITED) Wylie Community Collin Independent Independent County Fiscal City of School School Collin Community Year Wylie District District County College District Total 1996 0.6650 1.5500 1.4400 0.2600 0.0986 4.0136 1997 0.6650 1.5500 1.4600 0.2600 0.0986 4.0336 1998 0.6750 1.5500 1.4600 0.2600 0.0986 4.0436 ... 1999 0.6750 1.6000 1.5000 0.2500 0.0986 4.1236 2000 0.7000 1.5700 1.2928 0.2500 0.0957 3.9085 "' 2001 0.7250 1.5700 1.5000 0.2500 0.0941 4.1391 2002 0.7200 1.5609 1.4301 0.2500 0.0928 4.0538 2003 0.7150 1.6100 1.5375 0.2500 0.0920 4.2045 2004 0.7050 1.7200 1.6200 0.2500 0.0919 4.3869 2005 0.6950 1.8000 1.6700 0.2500 0.0906 4.5056 (1) Source: Central Appraisal District of Collin County web site(www.collin-cad.org). (2) Although the Community Independent School District is included in the above presentation, less than one per cent of the City of Wylie lies within this taxing jurisdiction. a (3) Basis for property tax rate is per$100 of taxable valuation. a a a 96 CITY OF WYLIE, TEXAS TABLE D-8 PRINCIPAL TAXPAYERS SEPTEMBER 30, 2005 — (UNAUDITED) 2005 Percentage of Assessed Total Assessed Taxpayer Type of Business Valuation Valuation 1 Sanden International Manufacturing $ 85,174,605 6.10% 2 Centex Homes Land Development 12,285,852 0.88% 3 CMH Parks, Inc. Mobile Home Park 12,200,310 0.87% 4 Holland Hitch of Texas, Inc. Manufacturing 11,592,288 0.83% 5 Oncor Electric/TXU Electric Utility 9,981,599 0.72% 6 Cascades Apts. L.T.D. Real Estate-Apartments 9,328,076 0.67% _ 7 Windough(DE) L.P. Manufacturing 8,501,744 0.61% 8 Albertsons Grocery 6,807,555 0.49% - 9 Bariatric Care Center of Texas Health Care 6,133,930 0.44% 10 CEF Lease Residual/GE Cap Real Estate 5,745,701 0.41% "'" 11 Jacco Investments Inc. Manufacturing 5,735,685 0.41% 12 Carlisle Coatings/Hardcast Inc. Manufacturing 5,504,569 0.39% - 13 D.R. Horton Land Development 4,854,608 0.35% 14 Westdale Rustic Oaks Ltd. Real Estate-Apartments 4,820,850 0.35% 15 Shaddock Developers L.T.D. Land Development 4,392,514 0.31% 16 Ashton Custer LLC Land Development 4,058,831 0.29% 17 Brookshire Grocery Store Grocery 4,034,231 0.29% 18 Moulding Assoociates Manufacturing 3,733,395 0.27% 19 Atrium Companies Inc. Investments 3,535,000 0.25% — 20 Kansas City/Southern Railway Co. Railroad 3,525,087 0.25% Total Taxable Value of 20 Largest Taxpayers 211,946,430 15.19% — Total Taxable Value of Other Taxpayers 1,183,370,525 84.81% Totals $ 1,395,316,955 100.0% — (1) Source: Central Appraisal District of Collin County. 97 CITY OF WYLIE, TEXAS TABLE D-9 SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS(1) LAST TEN FISCAL YEARS (UNAUDITED) ... Outstanding Special Outstanding Ratio of .. Assessments Special Assessment Assessments Assessments Collections to Fiscal Year Beginning of Year Billings Collected End of Year Amount Due 1996 $ 63,644 -- -- 63,644 -- .. 1997 63,644 -- 910 62,734 1.43% 1998 62,734 -- 2,560 60,174 4.08% 1999 60,174 72,680 53,328 79,526 88.62% .. 2000 79,526 -- 9,425 70,101 11.85% 2001 70,101 -- 12,277 57,824 17.51% w 2002 57,824 -- 6,080 51,744 10.51% 2003 51,744 -- 3,245 48,499 6.27% .. 2004 48,499 -- 8,985 39,514 18.53% 2005 39,514 -- 8,985 30,529 22.74% . (1) Source: City of Wylie records. NW OM NM .. wen .. me 98 CITY OF WYLIE, TEXAS TABLE D-10 COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 2005 (UNAUDITED) The City of Wylie does not have a legal debt limit prescribed by State law. However,Article XI, Section 5 of the Texas Constitution applicable to cities with a population of greater than 5,000 limits the ad valorem tax rate to$2.50 per$100 assessed valuation for cities operating under a Home Rule Charter. Accordingly,the City's tax margin for the year ended September 30,2005,was: Maximum rate per$100 valuation $ 2.500 City of Wylie's 2004-2005 rate 0.695 Total assessed value $ 1.805 99 CITY OF WYLIE, TEXAS TABLE D-11 RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS "' (UNAUDITED) Ratio of Net Debt Bonded Net Gross Payable from Net Debt to Bonded Fiscal Assessed Bonded Less Debt Enterprise Bonded Assessed Debt per Year Population(1) Value(2) Debt(3) Service Fund (4) Revenues Debt Value Capita 1996 10,100 $ 365,544,611 $ 10,900,000 $ 98,394 $ -- $ 10,801,606 2.95% $ 1,069 1997 10,700 402,096,840 12,930,000 143,298 -- 12,786,702 3.18% 1,195 1998 11,550 426,983,235 13,400,000 167,967 -- 13,232,033 3.10% 1,146 1999 12,400 467,859,478 16,165,000 191,970 -- 15,973,030 3.41% 1,288 2000 13,190 542,634,443 17,165,000 243,496 -- 16,921,504 3.12% 1,283 2001 16,711 616,206,518 21,050,000 267,695 -- 20,782,305 3.37% 1,244 .. 2002 18,350 753,797,959 22,780,000 352,662 -- 22,427,338 2.98% 1,222 2003 21,350 929,246,605 19,401,581 494,317 3,074,073 15,833,191 1.70% 742 '" 2004 26,150 1,130,974,581 17,974,736 555,406 2,903,677 14,515,653 1.28% 555 2005 29,800 1,395,316,995 29,415,000 638,534 3,699,444 25,077,022 1.80% 842 . (1) Annual government census. (2) From Table D-6. (3) Amount does not include special assessment bonds and revenue bonds. (4) Amount available for repayment of general obligation bonds. ., w w w .. 100 CITY OF WYLIE, TEXAS TABLE D-12 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES LAST TEN FISCAL YEARS (UNAUDITED) Ratio of Total Debt Service Total General to General Fiscal Debt Governmental Governmental Year Principal (1) Interest(1) Service Expenditures(2) Expenditures 1996 $ 320,072 $ 329,913 $ 649,985 $ 4,694,529 13.8% — 1997 365,988 324,396 690,384 5,352,775 12.9% 1998 271,799 441,436 713,235 5,792,898 12.3% 1999 462,437 412,017 874,454 7,810,756 11.2% 2000 633,399 553,056 1,186,455 8,067,054 14.7% 4,bat 2001 749,038 660,471 1,409,509 9,270,239 15.2% 2002 951,744 751,970 1,703,714 11,987,290 14.2% 2003 1,125,889 798,823 1,924,712 13,211,657 14.6% 2004 1,166,450 765,345 1,931,795 15,466,343 12.5% 2005 1,404,888 769,876 2,174,764 24,723,947 8.8% (1) Includes only Debt Service Fund expenditures. (2) Includes expenditures of the General Fund, Special Revenue Funds, and Debt Service Funds. 101 CITY OF WYLIE, TEXAS TABLE D-13 COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT GENERAL OBLIGATION BONDS SEPTEMBER 30, 2005 (UNAUDITED) Net General Percentage Obligation Applicable Amount Bonded Debt to Applicable Jurisdiction Outstanding Government to Government S Direct: City of Wylie,Texas $ 25,715,556 (2) 100.00% $ 25,715,556 Overlapping: Wylie Independent School District 207,387,369 56.47% 117,111,647 Community Independent School District 13,302,446 0.42% 55,870 Collin County 283,234,996 2.67% 7,562,374 Collin County Community College District 39,225,000 2.67% 1,047,308 ...s Total Overlapping Debt 543,149,811 125,777,199 Total Direct and Overlapping Debt $ 568,865,367 $ 151,492,755 Ratio of Direct and Overlapping Bonded Debt to Taxable Assessed Valuation 10.85% ... Per Capita Direct and Overlapping Debt $5,084 (1) Source: First Sourthwest Company (2) Excludes self-supporting debt S S S 102 - CITY OF WYLIE, TEXAS TABLE D-14 REVENUE BOND COVERAGE WATER AND SEWER FUND - LAST TEN FISCAL YEARS (UNAUDITED) Debt Service Net Revenue as Percent of Fiscal Gross Operating Available for Debt Service Requirements(3) Operating Exp. Year Revenues(1) Expenses(2) Debt Service Principal Interest Total Coverage &Debt Service 1996 $ 2,896,410 $ 1,319,460 $ 1,576,950 $ -- $ -- $ -- N/A -- 1997 2,994,778 1,600,516 1,394,262 -- -- -- N/A -- 1998 3,412,649 1,719,850 1,692,799 -- -- -- N/A -- 1999 3,594,192 1,809,362 1,784,830 -- -- -- N/A -- 2000 3,958,753 2,124,943 1,833,810 40,000 73,644 113,644 N/A 5.84% 2001 4,313,606 2,259,333 2,054,273 85,000 168,929 253,929 8.09 11.00% 2002 4,789,856 2,636,705 2,153,151 90,000 163,411 253,411 8.50 10.53% — 2003 5,864,531 3,833,370 2,031,161 135,000 203,808 338,808 6.00 14.30% 2004 6,776,234 3,674,258 3,101,976 140,000 198,981 338,981 9.15 9.85% — 2005 7,876,858 5,747,978 2,128,880 145,000 190,322 335,322 6.35 13.61% (1) Includes total operating revenue of the Utility Enterprise Fund. (2) Includes operating expenses of the Utility Enterprise Fund, less depreciation expense. — (3) Debt service requirements Includes principal and interest payments on 1999,2000, and 2002 Waterworks and Sewer System Revenue Bonds. 103 CITY OF WYLIE, TEXAS TABLE D-15 ..0 DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS (UNAUDITED) Unemployment Rate(2) Fiscal (1) Collin City of School Utility Connections Year Population County _ Wylie Enrollment Electric Water Gas 1996 10,000 2.20% 2.50% 3,673 3,720 3,676 2,148 1997 10,700 2.10% 2.40% 3,871 4,869 3,847 2,468 ... 1998 11,550 2.30% 2.60% 3,996 5,042 4,105 2,227 1999 12,400 2.20% 2.50% 3,984 4,569 4,528 2,538 ""' 2000 13,190 2.20% 2.60% 4,608 4,686 4,896 2,376 2001 16,711 5.00% 5.80% 4,975 5,065 5,221 3,008 2002 18,350 6.20% 7.70% 5,718 8,039 6,591 4,040 2003 21,350 6.00% 6.90% 6,256 9,350 7,901 5,350 2004 26,150 4.50% 5.20% 7,903 10,250 8,841 6,650 2005 29,800 4.30% 4.30% 8,948 11,021 9,645 7,283 ... (1) Population estimate from North Central Texas Council of Governments, as modified by City staff estimates. (2) Unemployment rates from the Texas Workforce Commission website(ww.twc.state.tx.us). ... ... 104 CITY OF WYLIE, TEXAS TABLE D-16 PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS — (UNAUDITED) Estimated Assessed Building Value of Fiscal Value Permits Percent Construction Percent Bank Percent — Year (Adjusted) Issued Change Permits Change Deposits Change 1996 $ 365,544,611 120 -13.04% 12,699,711 -10.86% 63,930,000 10.62% """" 1997 402,096,840 176 46.67% 17,004,307 33.90% 70,116,000 9.68% 1998 426,191,872 287 63.07% 31,784,817 86.92% 75,064,000 7.06% — 1999 467,859,478 332 15.68% 36,253,037 14.06% 81,944,000 9.17% 2000 542,634,443 409 23.19% 48,971,298 35.08% 80,658,000 -1.57% 2001 616,206,518 634 55.01% 83,528,866 70.57% 78,249,000 -2.99% 2002 753,797,959 974 53.63% 149,261,595 78.69% 89,808,000 14.77% 2003 929,246,605 1,430 46.82% 189,835,081 27.18% 98,724,000 9.93% 2004 1,130,974,581 1,282 -10.35% 173,349,315 -8.68% 105,109,000 6.47% 2005 1,395,316,995 1,020 -20.44% 148,365,133 -14.41% 120,918,000 15.04% (1) Construction activity data from City of Wylie records. (Residential permits only). (2) Bank deposits as of June 30 from FDIC website for years 1996 through 2005. 105 CITY OF WYLIE, TEXAS TABLE D-17 MISCELLANEOUS STATISTICS SEPTEMBER 30, 2005 (UNAUDITED) �- Date of Incorporation 1887 Date Home Rule Charter Adopted January 19, 1985 Form of Government Council-Manager ,. City Employees(Full-time equivalents) Full-time 174 Part-time/Seasonal 15 Area in square miles 33 Estimated Population 29,800 Registered Voters 13,635 City of Wylie,Texas Miles of streets 127 Miles of alleys 12 Culture and Recreation: Parks 11 Park acreage 440 Fire Protection: Number of stations 2 Employees(Full-time) 28 Employees(Part-time) 4 Employees(Volunteer 8 ., Police Protection: Number of stations 1 Number of police personnel and officers 40 Sewerage System: Miles of sanitary sewers 123 Number of treatment plants 2 Number of service connections 9,334 Maximum daily capacity of treatment plant in gallons 7 million gallons .. Water System: Miles of water mains 110 Number of service connections 9,645 .. Average daily consumption 4,076,730 Number of fire hydrants 1,242 Building Permits Issued 1,020 Value $148,365,133 Employment Data Collin County Civilian Labor Force 349,710 Employed 334,721 Unemployed 14,989 .. Rate of Unemployment 4.30% City of Wylie Civilian Labor Force 9,740 Employed 9,223 ••+ Unemployed 507 Rate of Unemployment 4.30% Education-Wylie I.S.D. Campuses in Wylie 12 Classroom Teachers 610 Students Enrolled 8,948 Average Daily Attendance 7,858 (1) Employment data from the Texas Workforce Commission website(www.twc.state.tx.us). (2) Education data from the Wylie Independent School District. .., (3) Population data from NCTCOG estmates. (4) All other data from City of Wylie records. 106 CITY OF WYLIE, TEXAS TABLE D-18 LARGEST WATER UTILITY CUSTOMERS SEPTEMBER 30, 2005 — (UNAUDITED) Water Percentage of Consumption Total Taxpayer Type of Business (In Gallons) Consumption 1. Lonestar Circuits Manufacturing 43,377,200 3.98% 2. Wylie lndepenent School District Educational Facilities 32,969,548 3.02% 3. City of Wylie Municipality 32,797,212 3.01% 4. Sanden International Manufacturing 28,537,200 2.62% 5. Southfork Mobile Home Park 27,952,000 2.56% 6. Nortex Nursery Botanical 12,400,000 1.14% 7. Wylie Ventures Mobile Home Park 10,800,000 0.99% 8. Wylie Butane Manufacturing 8,120,300 0.74% 9. Extruders Manufacturing 7,992,200 0.73% 10. Hillcrest Nursing and Rehabilitation Nursing Home 7,496,100 0.69% Total Water Consumption-Ten Largest Customers 212,441,760 19.49% Total Water Consumption-Other Customers 877,745,930 80.51% Total Water Consumption-All Customers 1,090,187,690 100.0% (1) Source: City of Wylie Utility Records 107 CITY OF WYLIE, TEXAS TABLE D-19 SCHEDULE OF WATER AND SEWER RATES SEPTEMBER 30, 2005 (UNAUDITED) Apartments& Mobile Homes Residential Commercial Rates for Water Service: For all customers within the corporate limits of the City of Wylie,Texas: Monthly minimum charge (First 1,000 gallons of metered water consumption) $12.15 $8.90 $12.15 "` Volume charge for consumption of 1,001 to 2,000 gallons per month (per 1,000 gallons) 2.27 2.17 2.27 Volume charge for consumption of 2,000 gallons per month (per 1,000 gallons) 2.90 2.90 2.90 a Surcharge per occupied unit 4.00 -- _- Rates for Sewer Service: ... For customers: Monthly minimum charge (First 1,000 gallons of metered water consumption) -- $10.00 $14.00 Volume charge for all consumption exceeding 1,000 gallons per month (Per 1,000 gallons. Residential maximum monthly charge of$29.57, Commercial Unlimited) -- 1.45 1.45 -* Fixed charge per unit 18.00 -- -- Wastewater treatment plant pass-through charge per month Consumption Less than 2,000 gallons -- 2.00 7.50 Above 2,000 gallons -- 5.00 7.50 Fixed charge per unit 5.00 -- -- a (1) Source: City of Wylie Fee Ordinance a 108 CITY OF WYLIE, TEXAS TABLE D-20 SCHEDULE OF INSURANCE IN FORCE SEPTEMBER 30, 2005 (UNAUDITED) Public Officials Liability Employee Blanket Bond Insurer: TML IGRP Insurer: American States Ins. Co. Policy Number: 5345 Policy Number: OI-FI-013832-3 -. Policy Term: 10/01/04-09/30/0 Policy Term: 05/03/05-05/03/06 Coverage Amount: $5,000,000 Coverage Amount: $100,000 Annual Premium: $33,970 Annual Premium: $800 Property and General Liability Workers'Compensation Insurer: TML IGRP Insurer: TML Risk Policy Number: 5345 Policy Number: A05345 • Policy Term: 10/01/04-09/30/05 Policy Term: 10/01/04-09/30/05 Coverage Amount: $1,000,000 per occurence Coverage Amount: Meets State Requirements Annual Premium: $37,050 Annual Premium: $256,195 Police Professional Liability Employee Group Insurance Insurer: TML IGRP Insurer: United Health Care, Life RE, Canada Life - Policy Number: 5345 Policy Number: PWYLE1 Policy Term: 10/01/04-09/30/05 Policy Term: 10/01/04-09/30/05 Coverage Amount: $5,000,000 Coverage Amount: Health/Dental/Life/AD&D/PAI Annual Premium: $16,304 Annual Premium: $1,194,185 — Vehicle Coverage Accident Coverage for Police Reserve - Insurer: TML IGRP Insurer: Hartford Insurance Company Policy Number: 5345 Policy Number: 46SR235439 Policy Term: 10/01/04-09/30/05 Policy Term: 01/03/05-01/03/06 Coverage Amount: $250,000/$500,000/$100,000 Coverage Amount: $10,000 • Annual Premium: $34,942 Annual Premium: $310 Equipment Floater Accidental Death/Medical for Vol Firefighters — Insurer: Union Standard Is. Co. Insurer: Hartford Insurance Company Policy Number: I0M26-2682 Policy Number: 46VP530573 Policy Term: 10/01/04-09/30/05 Policy Term: 04/15/05-04/15/06 Coverage Amount: $506,180 Coverage Amount: $100,000/$50,000 Annual Premium: $11,012 Annual Premium: $4,496 • Public Officials Bond Accidental Death/Dismemberment Police Officer Insurer: American States Insurance Co. Insurer: Hartford Insurance Company Policy Number: EX-801-004 Policy Number: 46ADDS03040 Policy Term: 05/03/05-05/03/06 Policy Term: 11/01/00 until cancelled °"" Coverage Amount: $50,000/$25,000 Coverage Amount: $100,000 Annual Premium: $2,600 Annual Premium: $864 (1) Data from City of Wylie records. 109 UMW S IMO This page is left blank intentionally. S MIR Mir 110 Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: March 14, 2006 Item Number: 5 Department: City Manager (City Secretary's Use Only) Prepared By: Mark B. Roath Account Code: Date Prepared: February 23, 2006 Budgeted Amount: Exhibits: One Subject Consider, and act upon, amended and restated Interlocal Agreement by and between the City of Wylie, Texas and the Wylie Economic Development Corporation. Recommendation Motion to approve the amended and restated Interlocal Agreement by and between the City of Wylie, Texas and the Wylie Economic Development Corporation. Discussion The City and WEDC entered into an Agreement on September 27, 2005. With the recent change in staffing in the City Manager's Office and recognition of the WEDC's need for additional services (both administrative and from other City departments), the City Manager and WEDC Executive Director met and discussed changes to the existing contract. The proposed revisions to the existing agreement, which are reflected in this proposed Agreement are: • Page 1, Clause 2 (A): The term has been amended to reflect this proposed agreement. Note: The September 30, 2010 date was not changed, which was in the current contract; • Page 2, Clause 2 (E): This new clause allows for the WEDC to request other services from administrative departments of the City, which is allowed by Section 4.14 of the Corporation By-laws; • Page 2, Clause 3 (A): This clause has been amended to reflect that the WEDC will pay the cost of its own audit services; • Page 2, Clause 3 (E): This new clause has been added to compensate the City for any additional administrative department services requested by the WEDC; • Page 2, Clause 3 (F): This new clause has been added to correspond to Section 4.03 (2) of the Corporation By-laws, wherein the Corporation is responsible for its insurance; • Page 3, Clause 6 (B): This clause has been amended to state that this Agreement supersedes any prior understandings between the parties on this matter. Page 1 of 2 Page 2 of 2 This proposed Agreement was considered by the Corporation Board on Thursday, February 23, 2006 and approved by them. Note: In approving the proposed Agreement,the Board did amend Section 4 by reducing the notice period from ninety(90)to sixty (60) days. Approved By Initial Date Department Director City Manager MBR 02/23/2006 AMENDED AND RESTATED INTERLOCAL AGREEMENT BY AND BETWEEN THE CITY OF WYLIE, TEXAS AND THE WYLIE ECONOMIC DEVELOPMENT CORPORATION (Office Space and Administrative Services) THIS AGREEMENT (the "Agreement"), made and entered into this day of March, 2006, by and between the CITY OF WYLIE, TEXAS, a municipal corporation (the "City"), and the WYLIE ECONOMIC DEVELOPMENT CORPORATION, a political subdivision organized under the Development Corporation Act of 1979 through the auspices of the City of Wylie, Texas ("WEDC"). WHEREAS, the City has investigated and determined that it would be advantageous and beneficial to the City and its citizens to provide office space and personnel services to the WEDC; and WHEREAS, the WEDC has investigated and determined that it would be beneficial to the City and its citizens to office at Wylie's City Hall; and WHEREAS, the City and the WEDC desire to enter into this Amended and Restated Agreement for the purpose of establishing the administration and compensation to be paid pursuant to the use of City's office space and personnel; and WHEREAS, the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code (the "Act"), provides the authority to political subdivisions for contracts by and between each other to facilitate the governmental functions and services of said political subdivisions under the terms of the Act. NOW, THEREFORE, in consideration of the covenants and conditions contained in this Agreement, the City and the WEDC agree as follows: 1. Term. The term of this Agreement shall be from March 1, 2006 to September 30, 2010 ("Term"). 2. City's Obligations. City shall provide WEDC with: A. An office that is adequate size for the WEDC Executive Director ("Director") and reasonable storage space with in City Manager's office suite, or other location acceptable to the Director and City, at City Hall; B. Full use of City's phone system, facsimile machines, printers, copiers and other office equipment used in daily operations; AMENDED AND RESTATED INTERLOCAL AGREEMENT BETWEEN THE CITY OF WYLIE,TEXAS AND THE WYLIE ECONOMIC DEVELOPMENT CORPORATION(Personnel Services) Page 1 408912.V1 C. Accounts payable, payroll, and other financial services requested by the Director; and D. Shared utilization of a Secretary I position for administrative support as defined in"Exhibit A." E. Additional administrative services requested by the Director. 3. WEDC's Obligations. WEDC shall: A. Pay City One thousand dollars ($1,000.00) per annum for the financial services provided in accordance to paragraph 2.C. above; excluding the cost of audit services, which the City will bill separately for that portion of the audit attributable to the WEDC upon completion of said work; B. Pay City Thirty-seven dollars ($37.00) per month for utilities, janitorial service and garbage removal; C. Be responsible for providing its own supplies necessary to conduct the business of the WEDC; and D. Pay City one half the total cost of the Secretary I position per annum for administrative assistance provided in accordance with paragraph 2.D. above and any increases during the life of this Agreement. For the period of March 1, 2006 to September 31, 2006 the WEDC shall receive a Ten thousand dollar ($10,000.00) credit towards the first annual payment for WEDC's participation in the Facilities Needs Assessment Study completed in May 2005. E. Pay City five thousand dollars ($5,000) per annum for additional administrative services provided as requested by the WEDC. F. Pay City for portion of general liability and errors and admissions insurance attributed to the WEDC. All payments to be made by WEDC under this paragraph 3 shall be paid on or before the first day of the year or month for which they are owed. 4. Termination. Either party may terminate this Agreement, with or without cause, upon sixty (60) days written notice to the other party. Should City relocate City Hall to a different facility, the WEDC may elect to move to the New City Hall location and continue this Agreement or terminate this Agreement. AMENDED AND RESTATED INTERLOCAL AGREEMENT BETWEEN THE CITY OF WYLIE,TEXAS AND THE WYLIE ECONOMIC DEVELOPMENT CORPORATION(Personnel Services) Page 2 408912.V1 5. Notice. Any notice required or permitted to be delivered hereunder shall be deemed to be delivered, whether or not actually received, when deposited in the United States Mail, postage pre-paid, certified mail, return receipt requested, addressed to either party, as the case may be, at the addresses contained below: City: City of Wylie Attn: City Manager 2000 Highway 78 North Wylie, Texas 75098 WEDC: Wylie Economic Development Corporation Attn: Mr. Sam Satterwhite 2000 Highway 78 North Wylie, Texas 75098 6. Miscellaneous. A. Assignment. This Agreement is not assignable. B. Entire Agreement. This Agreement contains the entire agreement of the parties and supersedes any prior understandings or written or oral agreements between the parties respecting the subject matter of this agreement. This Agreement may not be modified or terminated except upon the provisions hereof or by the mutual written agreement of the parties hereto. C. Venue. This Agreement shall be construed in accordance with the laws of the State of Texas and shall be performable in Collin County, Texas. D. Consideration. This Agreement is executed by the parties hereto without coercion or duress and for substantial consideration, the sufficiency of which is forever confessed. E. Counterparts. This Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes. F. Authority to Execute. The individuals executing this Agreement on behalf of the respective parties below represent to each other and to others that all appropriate and necessary action has been taken to authorize the individual who is executing this Agreement to do so for and on behalf of the party for which his or her signature appears, that there are no other parties or entities required to execute this Agreement in order for the same to be an authorized and binding agreement on the party for whom the individual is signing this AMENDED AND RESTATED INTERLOCAL AGREEMENT BETWEEN THE CITY OF WYLIE,TEXAS AND THE WYLIE ECONOMIC DEVELOPMENT CORPORATION(Personnel Services) Page 3 408912.Vl Agreement and that each individual affixing his or her signature hereto is authorized to do so, and such authorization is valid and effective on the date hereof. G. Savings/Severability. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision thereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. H. Representations. Each signatory represents this Agreement has been read by the party for which this Agreement is executed and that such party has had an opportunity to confer with its counsel. I. Miscellaneous Drafting Provisions. This Agreement shall be deemed drafted equally by all parties hereto. The language of all parts of this Agreement shall be construed as a whole according to its fair meaning, and any presumption or principle that the language herein is to be construed against any party shall not apply. Headings in this Agreement are for the convenience of the parties and are not intended to be used in construing this document. J. Pursuit of a Governmental Function. Both the City and the WEDC have determined by their execution of this Agreement that this Agreement and the obligations of the parties contained herein are in discharge of a governmental function as set forth in the Interlocal Cooperation, Chapter 791, Texas Government Code, and the participation by either party in the terms of this Agreement shall not make such party an agent or representative of the other party. K. Sovereign Immunity. The parties agree that neither the City nor the WEDC has waived its sovereign immunity by entering into and performing their respective obligations under this Agreement. 1. Binding Agreement. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. No third party shall have any rights herein. IN WITNESS WHEREOF, the parties have executed this Agreement and caused this Agreement to be effective on the latest date as reflected by the signatures below. AMENDED AND RESTATED INTERLOCAL AGREEMENT BETWEEN THE CITY OF WYLIE,TEXAS AND THE WYLIE ECONOMIC DEVELOPMENT CORPORATION(Personnel Services) Page 4 408912.V1 THE CITY OF WYLIE,TEXAS JOHN MONDY, Mayor Date: , 2006 WYLIE ECONOMIC DEVELOPMENT CORPORATION SAMUEL SATTERWHITE, President Date: , 2006 AMENDED AND RESTATED INTERLOCAL AGREEMENT BETWEEN THE CITY OF WYLIE,TEXAS AND THE WYLIE ECONOMIC DEVELOPMENT CORPORATION(Personnel Services) Page 5 408912.V1 STATE OF TEXAS § COUNTY OF COLLIN § BEFORE ME, the undersigned authority, on this day personally appeared JOHN MONDY, known to me to be one of the persons whose names are subscribed to the foregoing instrument; he acknowledged to me he is the duly authorized representative for the CITY OF WYLIE, TEXAS, and he executed said instrument for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of March 2006. Notary Public in and for the State of Texas STATE OF TEXAS § COUNTY OF COLLIN § BEFORE ME, the undersigned authority, on this day personally appeared SAMUAL SATTERWHITE known to me to be one of the persons whose names are subscribed to the foregoing instrument; he/she acknowledged to me he/she is the duly authorized representative for the WYLIE ECONOMIC DEVELOPMENT CORPORATION, and he/she executed said instrument for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of March 2006. Notary Public in and for the State of Texas AMENDED AND RESTATED INTERLOCAL AGREEMENT BETWEEN THE CITY OF WYLIE,TEXAS AND THE WYLIE ECONOMIC DEVELOPMENT CORPORATION(Personnel Services) Page 6 408912.V1 EXHIBIT "A" SECRETARY I POSITION ADDITIONAL DUTIES The City and the WEDC agree that the Secretary I position has an established job description for said position, which is attached hereto and made a part of this Agreement. II. The City and the WEDC further agree that the WEDC has additional secretarial requirements that may not be a part of the job description described in Clause I. Said additional duties required of the WEDC are: A. Processing mail; B. Processing accounts payable; C. General organization and filing; D. Answer phones; E. Attend WEDC Board of Director Meetings; F. Prepare WEDC minutes; G. Prepare WEDC financial analysis; H. Run errands for the WEDC Executive Director in the community; I. Perform special projects as directed by the WEDC Executive Director; J. And other assigned duties by the WEDC Executive Director. AMENDED AND RESTATED INTERLOCAL AGREEMENT BETWEEN THE CITY OF WYLIE,TEXAS AND THE WYLIE ECONOMIC DEVELOPMENT CORPORATION(Personnel Services) Page 7 408912.V1 ///t Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: March 14, 2006 Item Number: 6 Department: City Manager (City Secretary's Use Only) Prepared By: Mark B. Roath Account Code: Date Prepared: March 6, 2006 Budgeted Amount: Exhibits: One Subject Consider, and act upon, Ordinance No. 2006-16 of the City Council of Wylie, Texas, adding Chapter 54 to the Wylie City Code relating to Graffiti Vandalism and Establishing a Program for the Removal of Graffiti on Public and Private Property. Recommendation Motion to approve Ordinance No. 2006-16 of the City Council of Wylie, Texas, adding Chapter 54 to the Wylie City Code relating to Graffiti Vandalism and Establishing a Program for the Removal of Graffiti on Public and Private Property. Discussion Graffiti vandalism has grown from exclusively a big city problem into affecting smaller communities. Graffiti vandals have inflicted damage on public and private property, which has been reflected in cost of clean up and replacement of graffiti areas. Adopting an anti-graffiti ordinance should be but one part of a City's comprehensive approach to eradicating, or, at least, containing a graffiti vandalism problem. Some local governments have sought to control graffiti with a three pronged approach: (1) education and prevention; (2) law enforcement; and (3) community involvement and graffiti removal. The proposed ordinance is but one part of the larger approach needed to deal with graffiti. The essential elements of this Ordinance are these: Article 2 (Definitions): This Ordinance defines "graffiti" in a comprehensive way to include all types of graffiti vandalism. For example, the definition refers to "etching," a recent type of graffiti whereby graffiti vandals use very hard and sharp objects to etch words, designs, and other markings on glass or other surfaces. Note: To avoid prohibiting legitimate artwork, the graffiti definition only includes markings that are unauthorized or otherwise deemed by the City Council to be public nuisances. Thus, a property owner is not absolutely prohibited from authorizing graffiti-type artwork, such as a mural painting, for decorative purposes. Article 3 (Applying Graffiti Prohibited): This Ordinance does not raise First Amendment concerns since Page 1 of 2 Page 2 of 2 graffiti is an illegal activity,the unauthorized defacement of property, that is not protected by the Constitution. Article 4 (Penalties): For violation of Article 3, this Ordinance punishes graffiti vandals in accordance with the Texas Penal Code. Article 5 (Rewards and Reimbursements for Information): This Ordinance makes it feasible for the City Council to establish a rewards program for those who provide information leading to the arrest of graffiti vandals. Article 7 (Removal of Graffiti by Perpetrator/Offense): This Ordinance requires the perpetrator to remove the graffiti, or to pay for the removal of graffiti. Article 8 (Removal of Graffiti by Property Owner or City/Offense): This Ordinance recognizes that graffiti vandals are sometimes not apprehended, which puts the removal burden on the City or the property owner. As such, when removing graffiti from private property, the City must first attempt to obtain the consent of the property owner to enter the property. If the property owner refuses to grant removal consent, or the City is unable to contact the property owner because the property is abandoned, the City may institute public nuisance abatement procedures in order to remove graffiti and requires giving the owner adequate due process. Article 9 (Trust Fund): This Ordinance establishes an anti-graffiti trust account that is funded by the fines assessed against graffiti ordinance violators and could be a source of revenue for the rewards program and other activities associated with the eradication of graffiti. Approved By Initial Date Department Director City Manager AFFIDAVIT THE STATE OF TEXAS . § COUNTY OF Co lk tom- § I,�`'t...`"- Me ti 't , , a member of the Wylie CityCouncil make this affidavit and hereby on oath state the foil wing: 1. I, and/or a person or persons related to me in the first degree by consanguinity or affinity, as determined under Chapter 573, Government Code, (hereinafter referred to as "relative") have a substantial interest in (place an "x" by the paragraph(s)that apply): ?( a business entity which could receive a special economic effect on the business entity that is distinguishable from the effect on the public; and/or real property which is reasonably foreseeable to receive a special economic effect on the value of the property distinguishable from its effect on the public, as a result of a vote or decision of the City Council as those terms are defined in Chapter 171, Local Government Code. 2. Complete as applicable (place an "x" by the paragraph(s) that apply): The business entity is L teTa LLC.. —S(A.0 Plo . I/we have a substantial interest in this business entity for the following reasons(place an"x" by th paragraph(s) that apply): I and/or my relative own 10% or more of the voting shares of the business entity or I and/or my relative own either 10% or more or $15,000.00 or more of the fair market value of the business entity; and/or funds received by me and/or my relative exceed 10% of my and/or my relative's gross income for the previous year. The real property is described as and is generally located at . I/we have a substantial interest in this property because the interest is an equitable or legal ownership with a fair market value of$2,500.00 or more. A relative of mine has substantial interest in the business entity or property that would be affected by my decision of the public body of which I am a member. Other: . CONFLICT OF INTEREST AFFIDAVIT—Page 1 C:\Documents and Settings\cehrlich\Local Settings\Temporary Internet Files\OLK206\ARBJ-#447296-v1- Chapter 171_Conflict of Interest_Affidavit.DOC Upon the filing of this affidavit with the City Secretary of the City of Wylie, Texas, I affirm that I will abstain from voting on any decision involving this business entity and/or real property and from any further participation on this matter whatsoever. Signed this /y ay of 14-rt-�(-f , 2006 -cc OFFI AL Title: A-4M? o ti BEFORE ME, the undersigned authority, this day personally appeared and on oath stated that the facts hereinabove stated are true to the best of their knowledge and belief. Sworn to and subscribed before me on day of , 2006. Notary Public in and for the State of Texas My commission expires: CONFLICT OF INTEREST AFFIDAVIT—Page 2 C:\Documents and Settings\cehrlich\Local Settings\Temporary Internet Files\OLK206\ARBJ-#447296-v1- Chapter 171_Conflict_of Interest_Affidavit.DOC ORDINANCE NO. 2006-16 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS, ADDING CHAPTER 54 TO THE WYLIE CITY CODE RELATING TO GRAFFITI VANDALISM AND ESTABLISHING A PROGRAM FOR THE REMOVAL OF GRAFFITI ON PUBLIC AND PRIVATE PROPERTY; PROVIDING FOR REPEALING, SAVINGS AND SEVERABILITY CLAUSES; PROVIDING FOR PENALTY PROVISIONS FOR VIOLATIONS OF THIS ORDINANCE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Wylie, Texas ("City") has found that graffiti is a public nuisance and destructive of the rights and values of property owners as well as the entire community; and WHEREAS, the City Council has found that unless the City acts to remove graffiti from public and private property, the graffiti tends to remain, causing other properties and entire neighborhoods to be affected and become less desirable places in which to be, all to the detriment of the City and the public welfare; and WHEREAS, the City shall, through the adoption of this Ordinance, provide additional enforcement tools to protect public and private property from acts of graffiti vandalism and defacement; and WHEREAS, the City is authorized to enact this Ordinance pursuant to its police powers as a home-rule municipality, to provide for the removal of graffiti from private and public property. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1. Findings Incorporated. The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. Wylie City Code Amended. The City Code of Wylie is hereby amended to add Chapter 54 as follows: Chapter 54 Regulation of Graffiti Vandalism ARTICLE 1. Purpose and Intent. The City Council is enacting this Chapter to help prevent the spread of graffiti vandalism and to establish a program for the removal of graffiti from public and private property. Ordinance No.2006-16 Graffiti Vandalism Page 1 ARTICLE 2. Definitions. For the purposes of this Chapter, the following words shall have the meanings respectively ascribed to them in this Article, except where the context clearly indicates a different meaning: (a) Aerosol paint container means any aerosol container that is adapted or made for the purpose of applying spray paint or other substances capable of defacing property. (b) Broad-tipped marker means any felt tip indelible marker or similar implement with a flat or angled writing surface that, at its broadest width, is greater than one-fourth(1/4th) of an inch, containing ink or other pigmented liquid that is not water soluble. (c) Etching equipment means any tool, device, or substance that can be used to make permanent marks on any natural or man-made surface. (d) Graffiti means any unauthorized inscription, word, figure, painting,markings or other defacement, including slogans and drawings, that is written, marked, etched, scratched, sprayed, drawn, painted, or engraved on or otherwise affixed to any surface of public or private property by any graffiti implement, to the extent that the graffiti was not authorized in advance by the owner or occupant of the property, or, despite advance authorization, is otherwise deemed a public nuisance by the City Council or its designee. (e) Graffiti implement means an aerosol paint container, a broad-tipped marker, gum label, paint stick or graffiti stick, etching equipment, brush or any other device capable of scarring or leaving a visible mark on any natural or man- made surface. (f) Minor means a person less than eighteen(18) years of age. (g) Paint stick or graffiti stick means any device containing a solid form of paint, chalk, wax, epoxy, or other similar substance capable of being applied to a surface by pressure and leaving a mark of at least one-eighth (1/8th) of an inch in width. (h) Parent means the natural or adoptive parent or court-appointed guardian or conservator of a minor. (i) Person means any individual, partnership, cooperative association, limited liability company, corporation, personal representative, receiver, trustee, assignee, or any other entity. Ordinance No.2006-16 Graffiti Vandalism Page 2 ARTICLE 3. Applying Graffiti Prohibited. It shall be an offense for any person to apply graffiti to any natural or man-made surface on any city-owned property or, without the permission of the owner or occupant, on any non-city owned property. ARTICLE 4. Penalties. Any person violating the provisions of Article 3 shall be deemed guilty of a misdemeanor or felony as set forth in § 28.08(b), (c) and (d) of the Texas Penal Code, as they exist or may be amended, and, upon conviction thereof, shall be punished in accordance with the Texas Penal Code, as its exists or may be amended; and a person violating any other provisions of this Chapter shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be fined a sum not exceeding Five Hundred Dollars ($500.00). In the case of a minor, the parents of legal guardian shall be jointly and severally liable with the minor for the payment of all fines. ARTICLE 5. Rewards and Reimbursements for Information. (a) The City may offer a reward in an amount to be established by resolution of the City Council for information leading to the identification, apprehension and conviction of any person who willfully damages or destroys any public or private property by the use of graffiti. In the event of damage to public property, the offender or the parent of any minor must reimburse the City for any reward paid. In the event of multiple contributors of information, the reward amount shall be divided by the City in the manner it shall deem appropriate. (b) Claims for rewards under this Article shall be filed with the City in the manner specified by the City Council. (c) No claim for a reward shall be allowed unless the City investigates and verifies the accuracy of the claim and determines that the requirements of this Article have been satisfied. ARTICLE 6. Graffiti as Nuisance. (a) The existence of graffiti on public or private property in violation of this Chapter is expressly declared to be a public nuisance and, shall be subject to the removal and abatement provisions specified in this Chapter. (b) It is the duty of both the owner of the property to which the graffiti has been applied and any person who may be in possession or who has the right to possess such property to at all time keep the property clear of graffiti. Ordinance No.2006-16 Graffiti Vandalism Page 3 ARTICLE 7. Removal of Graffiti by Perpetrator/Offense. Any person applying graffiti on public or private property shall have the duty to remove the graffiti within twenty-four (24) hours after notice by the City or private owner of the property involved. Such removal shall be done in a manner prescribed by the Chief of Police, the Director of Public Services, or any additional City director, as authorized by the City Council. Any person applying graffiti shall be responsible for the removal or for the payment of the removal. Failure of any person to remove graffiti or pay for the removal shall constitute an offense under this Chapter. Where graffiti is applied by a minor, the minor's parents shall also be responsible jointly and severally liable for such removal or for the payment for the removal. ARTICLE 8. Removal of Graffiti by Property Owner or City/Offense. If graffiti is not removed by the perpetrator according to Article 7, graffiti shall be removed pursuant to the following provisions: (a) Property Owner Responsibility. It shall be an offense for any person who is the owner or who has primary responsibility for control of property or for repair or maintenance of property in the City to permit property that is defaced with graffiti to remain defaced for a period of ten (10) days after service by certified mail of notice of the defacement from the City. The notice shall contain the following information: 1. The street address and/or legal description of the property sufficient for identification of the property; 2. A statement that the property is a potential graffiti nuisance property with a concise description of the conditions leading to the finding; 3. A statement that the graffiti must be removed within ten (10) days after receipt of the notice and that if the graffiti is not abated within that time the City will declare the property to be a public nuisance, subject to the abatement procedures in this Chapter; and 4. An information sheet identifying any graffiti removal assistance programs available through the City and private graffiti removal contractors. (b) Exceptions to Property Owner Responsibility. It shall be an affirmative defense to the removal requirements of subsection (a) above if the property owner or responsible party can demonstrate that: 1. The property owner or responsible party lacks the financial ability to remove the defacing graffiti; or 2. The property owner or responsible party has an active program for the removal of graffiti and has scheduled the removal of the graffiti as part of that program, in which case it shall be unlawful to permit such Ordinance No.2006-16 Graffiti Vandalism Page 4 property to remain defaced with graffiti for a period of fifteen(15) days after service of notice of the defacement. (c) Right of City to Remove. 1. Use of Public Funds. Whenever the City becomes aware or is notified and determines that graffiti is located on publicly or privately owned property viewable from a public or quasi-public place, the City shall be authorized to use public funds for the removal of the graffiti, or for the painting or repairing of the graffiti, but shall not authorize or undertake to provide for the painting or repair of any more extensive an area than that where the graffiti is located, unless the City Manager, or the designee of the City Manager, determines in writing that a more extensive area is required to be repainted or repaired in order to avoid an aesthetic disfigurement to the neighborhood or community, or unless the property owner or responsible party agrees to pay for the costs of repainting or repairing the more extensive area. 2. Right of Entry on Private Property. Prior to entering upon private property or property owned by a public entity other than the City for the purpose of graffiti removal, the City shall attempt to secure the consent of the property owner or responsible party and a release of the City from liability for property damage or personal injury. If the property owner or responsible party fails to remove the offending graffiti within the time specified by this Chapter, or if the City has requested consent to remove or paint over the offending graffiti and the property owner or responsible party has refused consent for entry on terms acceptable to the City and consistent with the terms of this Article, the City shall commence abatement and cost recovery proceedings for the graffiti removal according to the provisions specified below. (d)Abatement and Cost Recovery Proceedings. 1. Notice of Due Process Hearing. The City Manager, or the designee of the City Manager, serving as the Hearing Officer, shall provide the property owner of record and the party responsible for the maintenance of the property, if a person different than the owner, not less than seventy-two (72) hours notice of the City's intent to hold a due process hearing at which the property owner or responsible party shall be entitled to present evidence and argue that the property does not constitute a public nuisance. Notice shall be served in the same manner as a summons in a civil action brought in a Collin County Court at law. If the owner of record cannot be found after a diligent search, the notice may be served by posting a copy thereof in a conspicuous place upon the property for a period of ten (10) days and publication thereof in a newspaper of general circulation published in Ordinance No.2006-16 Graffiti Vandalism Page 5 the area in which the property is located. Any published notice shall include the street address or legal description of the property, that the hearing is being held pursuant to this Chapter, the purpose of the hearing and the date,place and time of the hearing. 2. Determination of Hearing Officer. The determination of the Hearing Officer after the due process hearing shall be final and not appealable. If, after the due process hearing, regardless of the attendance of the Owner or the responsible party or their respective agents, the Hearing Officer determines that the property contains graffiti viewable from a public or quasi-public place, the Hearing Officer shall give written notice in an eradication order that, unless the graffiti is removed within ten(10) days, the City shall enter upon the property, cause the removal, painting over (in such color as shall meet with the approval of the Hearing Officer), or such other eradication thereof as the Hearing Officer determines appropriate, and shall provide the Owner and the responsible party thereafter with an accounting of the costs of the eradication effort on a full cost recovery basis. 3. Eradication Effort. Not sooner than the time specified in the order of the Hearing Officer, the City Manager, or the designee of the City Manager, shall implement the eradication order and shall provide an accounting to the Owner and the responsible party of the costs thereof. 4. Cost Hearing. The Owner or responsible party may request a cost hearing before the Hearing Officer within fourteen (14) business days of the City providing the eradication accounting by certified mail or hand delivery, and appropriate due process must be extended to the Owner or responsible party. If following the cost hearing or, if no hearing is requested, after the implementation of the eradication order, the Hearing Officer determines that all or a portion of the costs are appropriately chargeable to the eradication effort, the total amount set forth in the eradication accounting, or an amount thereof determined as appropriate by the Hearing Officer, shall be due and payable by the Owner or responsible party within thirty (30) days of the City providing the eradication accounting by certified mail or hand delivery. Any amount of eradication charges assessed by the Hearing Officer that are less than the total amount set forth in the eradication accounting shall be explained by written letter from the Hearing Officer to the City Council. 5. Lien. As to such property that is not a homestead and where the responsible party is the property owner, if all or any portion of the assessed eradication charges remain unpaid after thirty (30) days of the City providing the eradication accounting by certified mail or hand delivery, the portion thereof that remains unpaid shall constitute a lien on the property that was the subject of the eradication effort. The Ordinance No.2006-16 Graffiti Vandalism Page 6 Director of Public Services shall present a Resolution of Lien to the City Council, and upon passage and adoption thereof, shall cause a certified copy of the Lien to be recorded with the County Clerk's Office of the county in which the property is located. ARTICLE 9. Trust Fund. The City Council hereby creates the City of Wylie Anti-Graffiti Trust Fund. Penalties assessed against violators of this Chapter shall be placed in the fund, along with any monetary donations received from persons wishing to contribute to the fund. The City Council shall direct the expenditures of monies in the fund. Such expenditures shall be limited to the payment of the cost of graffiti removal, the payment of rewards for information as allowed by this Chapter, the costs of administering the Chapter, and such other public purposes as may be approved by the City Council by resolution. SECTION 3. Savings/Repealing Clause. All provisions of any ordinance in conflict with this Ordinance are hereby repealed to the extent they are in conflict; but such repeal shall not abate any pending prosecution for violation of the repealed ordinance, nor shall the repeal prevent a prosecution from being commenced for any violation if occurring prior to the repeal of the ordinance. Any remaining portions of said ordinances shall remain in full force and effect. SECTION 4. Severability. Should any section, subsection, sentence, clause or phrase of this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this Ordinance shall remain in full force and effect. Wylie hereby declares that it would have passed this Ordinance, and each section, subsection, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional or invalid. SECTION 5. Penalty Provision. Any person violating this Ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished as set forth in Article 4, above. Each unlawful act or continuing day's violation under this Ordinance shall constitute a separate offense. The penal provisions imposed under this Ordinance shall not preclude Wylie from filing suit to enjoin the violation. Wylie retains all legal rights and remedies available to it pursuant to local, state and federal law. SECTION 6. Effective Date. This Ordinance shall become effective immediately upon its adoption and publication as provided by law and the City Charter. [continued on next page] Ordinance No.2006-16 Graffiti Vandalism Page 7 DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE,TEXAS, on this 14th day of March, 2006. John Mondy,Mayor ATTEST TO: Carole Ehrlich, City Secretary Date of publication in The Wylie News—March 22, 2006 Ordinance No.2006-16 Graffiti Vandalism Page 8 Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: March 14, 2006 Item Number: 7 Department: City Manager (City Secretary's Use Only) Prepared By: Mark B. Roath Account Code: Date Prepared: March 6, 2006 Budgeted Amount: Exhibits: Two Subject Consider, and act upon, Ordinance No. 2006-17 of the City of Wylie, Texas, adding Chapter 74 to the Wylie City Code regulating the use and possession of Laser Pointer Devices. Recommendation Motion to approve Ordinance No. 2006-17 of the City of Wylie, Texas, adding Chapter 74 to the Wylie City Code regulating the use and possession of Laser Pointer Devices. Discussion The term "laser" is an acronym for Light Amplification by Stimulated Emission of Radiation. A hand-held laser pointer emits a bright, intense beam of light that is used by the user as a pointer or highlighter to indicate, mark or identify a specific position or thing, and is intended for use as an aid in presentations or other instructional situations. In addition, lasers are used as aiming devices for some firearms. Hand-held pen type laser pointers are increasingly obtainable. With the availability of laser pointers increase, so will the likelihood of laser pointer abuse. The physical risks of laser pointers are related to the potential temporary visual impairment and possible eye damage. In addition to potential vision impairment, the misuse of laser pointers may impact public safety and nuisance concerns. For example, pointers flashed into traffic may startle or dangerously distract drivers. (Note: I have attached an information bulletin produced by the Laser Institute of America entitled, "Laser Pointer Safety,"which explains some of the issues related to the misuse of laser pointer devices.) With respect to law enforcement, the misuse of laser pointers may be used to blind or injure officers or be mistaken for laser sights on firearms. The proposed Ordinance addresses the possession, by minors of laser pointer devices. The proposed Ordinance makes it unlawful for any person to direct the light from a laser pointer into another person, a person's vehicle Page 1 of 2 Page 2 of 2 or upon an animal. The proposed Ordinance makes it unlawful for any person to direct light from a laser pointer at a uniformed law enforcement officer, a member of a paid or volunteer fire department, a traffic enforcement agent, an emergency medical services or ambulance worker, or any other uniformed city, state, or federal peace officer, investigator, or emergency service worker or his/her service vehicle. And, the proposed Ordinance establishes a penalty for violation of said legislation. Approved By Initial Date Department Director City Manager ORDINANCE NO. 2006-17 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, ADDING CHAPTER 74 TO THE WYLIE CITY CODE REGULATING THE USE AND POSSESSION OF LASER POINTER DEVICES; PROVIDING FOR SEVERABILITY, SAVINGS AND REPEALING CLAUSES; PROVIDING FOR A PENALTY PROVISION; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, the City Council of the City of Wylie, Texas ("Wylie") has investigated and determined that it is beneficial and advantageous to the citizens of Wylie to enact this Ordinance to address public safety, welfare, health and nuisance concerns created by the mishandling of laser pointer devices. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE,TEXAS: SECTION 1: Findings Incorporated. The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2: Wylie City Code Amended. The City Code of Wylie is hereby amended to add Chapter 74 as follows: Chapter 74 Regulation of Laser Pointers ARTICLE 1. Purpose and Intent. The City Council finds that: (a) The Federal Drug Administration and other agencies have issued warnings on the misuse of laser pointers, particularly in connection with minors; (b) Laser pointer misuse has been associated with visual impairment such as temporary"flashblindness",headaches, and"afterimages"; (c) In addition to visual impairment, exposure to lasers can cause temporary distraction or panic, posing the potential for serious physical harm in some cases; (d) Laser pointer beams have been misused by minors and others to distract, harass, alarm or annoy persons or animals, and can be mistaken for the laser sighting device of a firearm; and Ordinance No.2006-17 Laser Pointer Devises (e) Laser pointer use within the City threatens public peace, safety and welfare, and should be regulated. ARTICLE 2. Definitions. In this Ordinance, the following words and terms shall have these defined meanings: (a) City is the City of Wylie, Texas. (b) Knowingly means having general knowledge of, or reason to know, or justify a belief or ground for belief which warrants further inspection or inquiry of the age of a minor. (c) Laser pointer means any hand-held device containing a small diode laser that is capable of emitting an intense beam of light. (d) Minor means a person less than eighteen(18) years of age. (e) Parent means the natural or adoptive parent or court-appointed guardian or conservator of a minor. (f) Person means an individual, partnership, cooperative association, corporation, limited liability company, personal representative, trustee, receiver, assignee or any other entity. ARTICLE 3. Possession by Minors Unlawful. (a) It shall be an offense for any minor to possess a laser pointer except in the residence of that minor. (b) The provision of subsection(a) in this section do not apply if: 1. The minor is accompanied by his or her parent or legal guardian; 2. The laser pointer is temporarily transferred to the minor for an educational or other lawful purpose and the minor is under the direct supervision of a parent, legal guardian, teacher, employer or other responsible person eighteen(18) years of age or older; or 3. The minor's possession of the laser pointer is necessary for his or her employment, trade, or occupation and it is necessary for the pointer to be carried on his or her person. ARTICLE 4. Prohibited Uses. (a) It shall be an offense for any person to direct the light from a laser pointer into the eye or eyes of another person. Ordinance No.2006-17 Laser Pointer Devises (b) It shall be an offense for any person to direct the light from a laser pointer upon another person, a person's vehicle, or upon an animal, in such a manner as to cause harassment to that person, a motorist, or animal. (c) This section shall not apply to: 1. A person who is licensed or otherwise authorized by law to use a laser device in the person's profession if the laser device is used by the person in discharging or attempting to discharge the person's official duties; or 2. A law enforcement officer who uses a laser device in discharging or attempting to discharge the officer's official duties. (d) It shall be an offense for a parent to allow or permit a minor to commit an offense under this Article. (e) It is presumed that a parent allowed a minor to commit an offense under this Article. ARTICLE 5. Use on Law Enforcement and Other City Personnel Unlawful. It shall be an offense for any person to knowingly direct light from a laser pointer at: (a) A uniformed safety officer, including a peace officer, security guard, firefighter, emergency medical service worker, or other uniformed municipal, state, or federal officer; or (b) The service vehicle of any such individual or agency. ARTICLE 6. Penalty. Any person violating the provisions of Article 5(a) shall be guilty of a Class C misdemeanor, and upon conviction thereof shall be punished in accordance with the Texas Penal Code, as it exists or may be amended; and any person violating any other provision of this Chapter shall be guilty of a misdemeanor, and upon conviction thereof shall be fined a sum not exceeding Five Hundred Dollars ($500.00). In the case of a minor, the parents of legal guardian shall be jointly and severally liable with the minor for the payment of all fines. SECTION 3: Severability. Should any section, subsection, sentence, clause or phrase of this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this Ordinance shall remain in full force and effect. Wylie hereby declares that it would have passed this Ordinance, and each section, subsection, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional or invalid. SECTION 4: Repealing/Savings Clause. All provisions of any ordinance in conflict with this Ordinance are hereby repealed to the extent they are in conflict; but such Ordinance No. 2006-17 Laser Pointer Devises repeal shall not abate any pending prosecution for violation of the repealed ordinance, nor shall the repeal prevent a prosecution from being commenced for any violation if occurring prior to the repeal of the ordinance. Any remaining portions of said ordinances shall remain in full force and effect. SECTION 5: Penalty Provision. Any person violating this Ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished as set forth in Article 6, above. Each unlawful act or continuing day's violation under this Ordinance shall constitute a separate offense. The penal provisions imposed under this Ordinance shall not preclude Wylie from filing suit to enjoin the violation. Wylie retains all legal rights and remedies available to it pursuant to local, state and federal law. SECTION 6: Effective Date. This Ordinance shall become effective immediately upon its adoption and publication as provided by law and the City Charter. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE,TEXAS, on thisl4th day of March, 2006. John Mondy, Mayor ATTEST TO: Carole Ehrlich, City Secretary Date of publication in The Wylie News—March 22,2006 • Ordinance No.2006-17 Laser Pointer Devises Laserinstitute.org - Laser Pointer Safety Page 1 of 3 s & s 'aiclT bookstore I home I icateo or-g ( Iasersetety.org 1 zi :.36.org '� 4r 47aR sd sret�a, � � ; Laser Pointer Safety Laser Safety Information Bulletin I Laser Pointer Safety I Government Regulations This Bulletin was produced by the Laser Institute of America. It can be freely copied and distributed without further permission from the LIA. Mischief and kids go hand in hand at times. For example, when digital watches became inexpensive enough for every school-aged child to have one, kids would use the glass faces to shine patches of light at other students, teachers and objects. Kids will be kids of course, and young people are doing the same thing in schools across the country today using laser pointers. The difference is laser light from pointers poses a much greater risk to the eye than the relatively primitive method used by children in days past. The energy a pointer can direct into the eye is many times brighter than staring directly at the sun. Use and Misuse of Pointers Commercial laser pointers are most commonly designed to assist speakers when giving lectures or business presentations. A high-tech alternative to the retractable, metal pointer, the laser pointer beam will produce a small dot of light on whatever object at which it is aimed. It can draw an audience? s attention to a particular key point in a slide show. Pointers are also used for other purposes such as the aligning of other lasers, laying pipes in construction, and as aiming devices for firearms. Much like the digital watches about 15 years ago, laser pointers have become very affordable recently due to new developments in laser technology. They are widely available at electronic stores, novelty shops, through mail order catalogs and by numerous other sources. As inexpensive as$20 or even less, they are in the price range of other electronic toys and are being treated as such by many parents and children. One woman wrote the Laser Institute of America describing how other mothers she knew bought laser pointers for their elementary-aged children so they could imitate Luke Skywalker and Darth Vader and duel with them. Laser pointers are not toys! This lesson was brought home to a small school district in Wisconsin in the fall of 1996. A 16-year-old girl was illuminated in the eye from the beams of laser pointers used as pranks. She experienced two momentary exposures, one while performing a porn porn routine and again while walking down a hallway. She reported the incidents to her http://www.laserinstitute.org/publications/safety_bulletin/laser pointer/ 3/5/2006 Laserinstitute.org - Laser Pointer Safety Page 2 of 3 parents, adding that after the first exposure, everything looked green; after the second, she could temporarily not see out of her right eye. While this is one of the most dramatic examples to date, there are numerous reports of similar, momentary exposures across the U.S. and the U.K. While it seems clear such brief exposures can cause only brief effects, there is no reason to ever shine a pointer towards someone. The Laser Institute of America and the American Academy of Ophthalmology have also received reports of people exposed for longer amounts of time, including two verified retinal injuries caused by intentionally staring into pointers. For more information about these incidents, AAO?s web site, www.eyenet.orq, should be consulted. Laser Pointer Tips: Never shine a laser pointer at anyone. Laser pointers are designed to illustrate inanimate objects. Do not allow minors to use a pointer unsupervised. Laser pointers are not toys. Do not point a laser pointer at mirror-like surfaces. A reflected beam can act like a direct beam on the eye. Be aware of irresponsible uses of pointers so the psychological effect will be minimized if you are illuminated by one. Do not purchase a laser pointer if it does not have a caution -fir or danger sticker on it identifying its class. Report suspicious devices to the FDA. Laser experts agree that laser pointers should not be used to pull pranks. School children are not the only ones finding mischievous uses for laser pointers. A Florida man paid the price for such a prank when he was arrested for scanning the ground near an off-duty police officer. The Laser Institute of America has also received reports of individuals shining laser pointers at athletes during sporting events and at people as they are driving. These types of incidents have started to spur government action. In November of 1997, the U.K. banned a certain class of higher-powered pointer from sale. In December, 1997, the U.S. Food and Drug Administration issued its warning against allowing juveniles to use them (see below). The FDA requires manufacturers to place a warning on pointers, telling users not to look into the beam. These warnings are small and easy to ignore, however, as evidenced in widespread misuse of the devices. Secondary Effects Safety professionals are especially concerned about secondary effects, those experienced during critical activities such as driving down a busy highway. If the driver lost control due to either a split second visual effect or a psychological effect(startle or panic), the consequences could be dire. There are reports of pilots who have had to look away or hand control of a landing airplane over to a co-pilot after similar incidents from more powerful light show lasers. http://www.laserinstitute.org/publications/safety_bulletin/laser pointer/ 3/5/2006 Laserinstitute.org - Laser Pointer Safety Page 3 of 3 Laser experts agree that transient visual effects are possible and should be addressed. These effects are called glare, flashblindness, and afterimage. While there are slight differences in the definitions scientists use for these terms, they all refer to some vision disruption that lasts only a few seconds or minutes. The Laser Institute of America has received one report where exposure to a laser pointer startled a bus driver resulting in a traffic accident. People often have strong psychological reactions to being illuminated with a laser beam. One researcher found that at times people receive eye injuries, not from the beam itself, but by a strong response that includes vigorously rubbing or sticking their fingers in their eye. Laser pointers are making their way into the public consciousness. Unfortunately, in one of the last episodes of the popular TV series ? Seinfeld? in May, 1998, the lovable neurotic George is pursued through the streets of New York by a laser pointer-wielding prankster. The Laser Institute of America feels that further regulation of laser pointers should now be considered. One viable option is to further limit the power that laser pointers can emit. Education is also key. By informing parents, teachers and society at large about the potential hazards laser pointers present, any risks posed by them can be minimized, and the devices can continue to be used properly and safely, as primarily intended. The LIA hopes that through its efforts, and those of its members and affiliated organizations, inappropriate and irresponsible uses of laser pointers are discouraged. Contact Us Privacy Statement Laser Institute of America • 13501 Ingenuity Drive • Suite 128 • Orlando, Florida 32826 • Phone: 407.380.1553 • Fax: 407.380.5588 Toll Free: 1.800.34.LASER Copyright©2005 Laser Institute of America http://www.laserinstitute.org/publications/safetybulletin/laser pointer/ 3/5/2006 Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: 03-14-06 Item Number: 8 Department: Police (City Secretary's Use Only) Prepared By: Jeff Butters Account Code: 251-58910 Date Prepared: 02-28-06 Budgeted Amount: $ 400,000 Exhibits: Three Subject Consider, and act upon, an agreement with HISAW & Associates, in the amount of $60,825.00, for Construction Manager at Risk services for the Animal Shelter Expansion Project. Recommendation Motion to approve an agreement with HISAW & Associates, in the amount of$60,825.00, for Construction Manager at Risk services for the Animal Shelter Expansion Project. Discussion The City of Wylie published a Request for Proposal for Construction Manager at Risk services for the Animal Shelter Expansion Project. Construction Manager at Risk (CMAR) is an alternative method of bidding a construction project. Prior to the •74th Legislature Cities were required to conduct a competitive bid process were construction companies bid on project specifications. In most cases Cites were required to hire the low bidder for the construction project, regardless of experience or quality. The Texas Legislature changed the law to allow a CMAR process so that ISD's, Cities and Counties could have more flexibility in choosing a construction company. The CMAR process also involves the construction company earlier in the process and results in the construction company assuming more risk for the project to come in at cost. Two construction companies submitted bids to construct the project. The RFP addressed the company financial strength, experience, and fees. Both companies had good financial strength and experience but HISAW & Associates bid substantially lower fees. Core Construction fees= $91,200 HISAW & Associates = $60,825 The architect firm contracted for the animal shelter project (Brinkley Sargent) recommends HISAW & Associates based on the difference in fee structure. Approved By Initial Date Department Director d C/7 n-‘ City Manager /��� 3 944 Page 1 of 2 February 20,2006 Chief Jeff Butters Wylie Police Department 2000 Hwy 78 North Wylie,TX 75098 RE: CM-at-Risk Proposals for the Animal Shelter Dear Chief Butters: We are in receipt of the two responses for the CM-at-Risk proposal for the animal shelter expansion. The proposals were received from Core Construction and HISAW&Associates. The technical requirements of this proposal addressed the company's financials and insurance. Both companies appear in order and have the financial strength,bonding capability,and insurance coverages necessary and required by this project. The experience portion of the proposal looks at the company and staff experience with Cm-at-Risk for public projects. Both companies have this experience, mainly with school districts. It does appear HISAW&Associates may have a few more projects,but both staff assigned and company experience makes it difficult to give a preference of one over the other. Both have mainly very positive references, and we are familiar with both firms. HISAW& Associates has been the low bidder on four previous municipal projects for us and Core Construction is the low bidder on a recently bid project of approximately $18,000,000 for the City of Plano. We have not worked with Core as of yet. Fees are the last component of the proposal and is broken out for your review. • Core's fee structure extended over the course of hopefully a three month project and is as follows: Profit $300,000 X 10%profit = $30,000 Overhead $20,400 x 3 mos. = $61,200 Total Estimated Fees $91,200 • HISAW&Associates fee over the course of the project is as follows: Profit $300,000 X 7%profit = $21,000 Overhead lump sum = $39,825 Total Estimated Fees $60,825 Chief Butters, based upon the lower costs of HISAW&Associates and their proven capability to provide CM-at-Risk services on public projects, we would recommend their firm as the selected firm. We feel both firms could certainly perform on this project and we feel good that you had two good options. Please let me know how we can assist you in proceeding past this into construction. Sincerely, Dwayne M.Brinkley,AIA C PROPOSAL TABULATION FOR CONTSTRUCTION MANAGEMENT AT-RISK SERVICES CITY OF WYLIE, TEXAS -WYLIE ANIMAL SHELTER Item# Item/Description -Fees Vendor Response Pre-Construction Fee - $0.00 1 Construction Services Percentage: X$ 300,000.00 7.00% 2 Insert Extended Fee -%x Budget Amount: $21,000.00 $22,000.00 3 Field &Office Staff: 4 General Conditions -Lump Sum -(From line 51 below) $17,825.00 Total Cost=(Pre-Construction + Construction Services+ Field & Office Staff+ $60,825.00 5 General Conditions )= Onsite Field Office Staff: Include all necessary overhead and multipliers within each line where applicable: $2,500.00 6 Project Manager $19,500.00 7 Superintendent(s) Assistant Superintendent 8 Other Field Office Staff-Defined in column Assistant Superintendent 9 Other Field Office Staff- Defined in column Assistant Superintendent 10 Other Field Office Staff- Defined in column Assistant Superintendent 11 Other Field Office Staff- Defined in column Item# Item/Description -Fees Vendor Response 12 Sub-total-On-site Field Office Staff $22,000.00 Percentage of Time personnel Project Manager: 10% 13 dedicated to this project: Superintendent(s): 100% General Conditions 14 Field Engineering Labor $500.00 15 Field Engineering Equipment& Supplies $150.00 16 Field Project Office $975.00 17 Temporary Fire Extinguishers & Safety Equipment& Labor $0.00 18 Office Furniture $0.00 19 Office Supplies $150.00 20 Postage/Federal Express/Courier Services $150.00 21 Miscellaneous Document Printing $250.00 22 Copy Machine and Paper $0.00 23 Office Equipment $0.00 24 Telephone and Fax Services $900.00 25 Janitorial Services N/A 26 Construction Clean Up $1,200.00 27 Miscellaneous Small Tools and Consumables $250.00 28 Vehicle Rental $900.00 29 Vehicle Fuel, Maintenance and Repair $600.00 30 Vehicle Insurance $0.00 31 All Risk Builder's Insurance $450.00 32 General Commercial Liability Insurance $1,050.00 , Item# Item/Description -Fees Vendor Response 33 All Other Insurance in Addition to CGL Required N/A 34 Building Permit Fees COST OF THE WORK 35 Construction , Equipment Freight& Insurance Charges N/A 36 Independent Testing & Inspection COST OF THE WORK 37 Construction Clean Up See Line#26 38 Final Clean Up $500.00 39 Special Testing Equipment Rentals N/A 40 Travel N/A 41 Temporary Sanitary Facilities $300.00 42 Barricades, Protection, Runs, Safety Rails $200.00 43 A& P Equipment Trailer $150.00 44 General Handling & Hoisting, Fuel & Maintenance $150.00 45 Dumpsters (excludes Demo, Masonry, Drywall) $1,500.00 46 Computers N/A 47 Contractor Bond: $7,500.00 48 Contractor Insurance: See line#31 &#32 49 Other-Please specify below: 50 Other-Please specify below: 51 Total -General Conditions: $17,825.00 52 Insurance Rate Modifier 0.72 53 Amount of Commercial General Liability 5M le 910 CRE STEWCTION Proposed Fee Structure 1. Fixed percent profit margin: 4 4 CORE intends to use a fixed percent profit margin of 10% 4 241 2. Anticipated Monthly overhead cost per month: 4 The anticipated monthly overhead cost for the Wylie Animal Shelter is $20,400/month 4 4 3. Related Notes: 4 CORE Construction is submitting a combination Project Manager/Superintendent in an effort to reduce over all cost of the project. 141 0 0 0* 4 4 ,`�t Document A121TM CMc - 2003 Amendment No. 1 AMENDMENT NO. 1 TO AGREEMENT BETWEEN OWNER AND CONSTRUCTION MANAGER Pursuant to Section 2.2 of the Agreement,dated March 07,2006 between City of Wylie (Owner)and (the Construction Manager),for City of Wylie Animal Shelter Expansion (the Project),the Owner and Construction Manager establish a Guaranteed Maximum Price and Contract Time for the Work as set forth below. ADDITIONS AND DELETIONS: The author of this document has ARTICLE I GUARANTEED MAXIMUM PRICE added information needed for its The Construction Manager's Guaranteed Maximum Price for the Work,including the completion.The author may also estimated Cost of the Work as defined in Article 6 and the Construction Manager's Fee as have revised the text of the defined in Article 5,is ( ).This Price is for the performance of the Work in original AIA standard form.An Additions and Deletions Report accordance with the Contract Documents listed and attached to this Amendment and that notes added information as marked Exhibits A through F, as follows: well as revisions to the standard form text is available from the Exhibit A Drawings,Specifications,addenda and General, author and should be reviewed. Supplementary and other Conditions of the Contract on which the Guaranteed A vertical line in the left margin of Maximum Price is based,pages through ,dated . this document indicates where the author has added necessary Exhibit B Allowance items,pages through ,dated . information and where the author has added to or deleted from the Exhibit C Assumptions and Clarifications made in preparing the original AIA text. Guaranteed Maximum Price,pages through ,dated . This document has important Exhibit D Completion Schedule,pages through ,dated legal consequences. Consultation with an attorney Exhibit E Alternate Prices,pages through ,dated is encouraged with respect to its completion or modification. Exhibit F Unit Prices,pages through ,dated Exhibits C,D,E and F will be prepared for incorporation into the contract within twenty- one(21)days of contract approval following the bid phase. This bid phase shall use the public notification process as provided by the State of Texas statutes. AIA Document A121 TM'CMc-2003 Amendment No.1.Copyright ©1991,1998 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 1 Unauthorized reproduction or distribution of this document,or any portion of it,may result In severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:30:44 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (1419248580) ARTICLE II CONTRACT TIME The date of Substantial Completion established by this Amendment is: OWNER CONSTRUCTION MANAGER (Signature) (Signature) Richard Hisaw,President (Printed name and title) (Printed name and title) Date Date ATTEST ATTEST AIA Document A121 TMCMc—2003 Amendment No.1.Copyright ©1991,1998 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 2 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:30:44 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (1419248580) Additions and Deletions Report for AIA Document A 121 TMCMc— 2003 Amendment No. 1 This Additions and Deletions Report,as defined on page 1 of the associated document,reproduces below all text the author has added to the standard form AIA document in order to complete it,as well as any text the author may have added to or deleted from the original AIA text.Added text is shown underlined. Deleted text is indicated with a horizontal line through the original AIA text. Note: This Additions and Deletions Report is provided for information purposes only and is not incorporated into or constitute any part of the associated AIA document.This Additions and Deletions Report and its associated document were generated simultaneously by AIA software at 15:30:44 on 03/03/2006. PAGE 1 Pursuant to Section 2.2 of the Agreement,dated March 07,2006 between City of Wylie (Owner) and (the Construction Manager),for City of Wylie Animal Shelter Expansion (the Project),the Owner and Construction Manager establish a Guaranteed Maximum Price and Contract Time for the Work as set forth below. Exhibits C,D,E and F will be prepared for incorporation into the contract within twenty-one(21) days of contract approval following the bid phase. This bid phase shall use the_public notification process as provided by the State of Texas statutes. PAGE 2 Richard Hisaw,President Additions and Deletions Report for AIA Document A121 TMCMc—2003 Amendment No.1.Copyright ©1991,1998 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law 1 and International Treaties.Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:30:44 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (1419248580) Certification of Document's Authenticity AIA® Document D401 TM — 2003 I,Harold Sargent,President,hereby certify,to the best of my knowledge,information and belief,that I created the attached final document simultaneously with its associated Additions and Deletions Report and this certification at 15:30:44 on 03/03/2006 under Order No. 1000207262_1 from AIA Contract Documents software and that in preparing the attached final document I made no changes to the original text of AIA°Document A121TMCMc- 2003 Amendment No. 1 -AMENDMENT NO. 1 TO AGREEMENT BETWEEN OWNER AND CONSTRUCTION MANAGER,as published by the AIA in its software,other than those additions and deletions shown in the associated Additions and Deletions Report. (Signed) (Title) (Dated) AIA Document D401 TM—2003.Copyright©1992 and 2003 by The American Institute of Architects. All rights reserved. WARNING:This Ale Document is protected by U.S.Copyright Law and International Treaties.Unauthorized reproduction or distribution of this Ale Document,or any portion of it, may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law.This document was produced by AIA software at 15:30:44 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (1419248580) Schedule A MMWO a �== A Document A121TMCMc — 2003 and AGC Document 565 Standard Form of Agreement Between Owner and Construction Manager where the Construction Manager is Also the Constructor AGREEMENT made as of the Seventh day of March in the year of Two Thousand and Six (In words, indicate day, month and year) •ADDITIONS AND DELETIONS: BETWEEN the Owner: The author of this document has (Name and address) added information needed for its completion.The author may also City of Wylie have revised the text of the 2000 Hwy. 78 North original AIA standard form.An Wylie,Texas 75098 Additions and Deletions Report that notes added information as well as revisions to the standard and the Construction Manager: form text is available from the (Name and address) author and should be reviewed. A vertical line in the left margin of Hisaw&Associates General Contractors, Inc. this document indicates where 3116 Kellway Drive,Suite 116 the author has added necessary Carrollton,TX 75006 information and where the author has added to or deleted from the original AIA text. The Project is: (Name, address and brief description) This document has important legal consequences. City of Wylie Animal Shelter Expansion Consultation with an attorney 949-A Hensley Lane is encouraged with respect to its completion or modification. Renovation and Modifications to the existing Wylie Animal Shelter located at 949-A Hensley Lane,Wylie,Texas. Expansion includes development of a 30 cage kennel facility The 1997 Edition of AIA and addition of parking lot. Total construction budget shall not exceed$300,000. Document A201,General Conditions of the Contract for The Architect is: Construction,is referred to (Name and address) herein.This Agreement requires modification if other general Brinkley Sargent Architects conditions are utilized. 5000 Quorum Drive,Suite 600 Dallas,Texas 75254 The Owner and Construction Manager agree as set forth below: AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. y Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) TABLE OF CONTENTS ARTICLE 1 GENERAL PROVISIONS §1.1 Relationship of the Parties §1.2 General Conditions ARTICLE 2 CONSTRUCTION MANAGER'S RESPONSIBILITIES §2.1 Preconstruction Phase §2.2 Guaranteed Maximum Price Proposal and Contract Time §2.3 Construction Phase §2.4 Professional Services §2.5 Hazardous Materials ARTICLE 3 OWNER'S RESPONSIBILITIES §3.1 Information and Services §3.2 Owner's Designated Representative §3.3 Architect §3.4 Legal Requirements ARTICLE 4 COMPENSATION AND PAYMENTS FOR PRECONSTRUCTION PHASE SERVICES §4.1 Compensation §4.2 Payments ARTICLE 5 COMPENSATION FOR CONSTRUCTION PHASE SERVICES §5.1 Compensation §5.2 Guaranteed Maximum Price §5.3 Changes in the Work ARTICLE 6 COST OF THE WORK FOR CONSTRUCTION PHASE §6.1 Costs to Be Reimbursed §6.2 Costs Not to Be Reimbursed §6.3 Discounts,Rebates and Refunds §6.4 Accounting Records ARTICLE 7 CONSTRUCTION PHASE §7.1 Progress Payments §7.2 Final Payment ARTICLE 8 INSURANCE AND BONDS §8.1 Insurance Required of the Construction Manager §8.2 Insurance Required of the Owner §8.3 Performance Bond and Payment Bond ARTICLE 9 MISCELLANEOUS PROVISIONS §9.1 Dispute Resolution §9.2 Other Provisions ARTICLE 10 TERMINATION OR SUSPENSION §10.1 Termination Prior to Establishing Guaranteed Maximum Price §10.2 Termination Subsequent to Establishing Guaranteed Maximum Price §10.3 Suspension ARTICLE 11 OTHER CONDITIONS AND SERVICES Schedule A-Project Fee Proposal from Hisaw&Associates Schedule B-Insurance Certificates Schedule C-Sample Amendment to Construction Manager Agreement AIA Document A121 TMCMc-2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 2 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) ARTICLE 1 GENERAL PROVISIONS §1.1 RELATIONSHIP OF PARTIES The Construction Manager accepts the relationship of trust and confidence established with the Owner by this Agreement,and covenants with the Owner to furnish the Construction Manager's reasonable skill and judgment and to cooperate with the Architect in furthering the interests of the Owner.The Construction Manager shall furnish construction administration and management services and use the Construction Manager's best efforts to perform the Project in an expeditious and economical manner consistent with the interests of the Owner.The Owner shall endeavor to promote harmony and cooperation among the Owner,Architect,Construction Manager and other persons or entities employed by the Owner for the Project. 1.1.I PERSONNEL The Construction Manager's personnel for this project shall be the same personnel contained in the original proposal submitted to the Owner. Any additional personnel or substitutions made to the original personnel shall only be made upon approval by the Owner. §1.2 GENERAL CONDITIONS For the Construction Phase,the General Conditions of the contract shall be the AIA®Document A201TM-1997, General Conditions of the Contract for Construction,which is incorporated herein by reference. For the Preconstruction Phase,or in the event that the Preconstruction and Construction Phases proceed concurrently, A201TM-1997 shall apply to the Preconstruction Phase only as specifically provided in this Agreement.The term "Contractor" as used in A201 TM-1997 shall mean the Construction Manager. ARTICLE 2 CONSTRUCTION MANAGER'S RESPONSIBILITIES The Construction Manager shall perform the services described in this Article.The services to be provided under Sections 2.1 and 2.2 constitute the Preconstruction Phase services.If the Owner and Construction Manager agree, after consultation with the Architect,the Construction Phase may commence before the Preconstruction Phase is completed, in which case both phases will proceed concurrently. §2.1 PRECONSTRUCTION PHASE §2.1.1 PRELIMINARY EVALUATION The Construction Manager shall provide a preliminary evaluation of the Owner's program and Project budget requirements,each in terms of the other. §2.1.2 CONSULTATION The Construction Manager with the Architect shall jointly schedule and attend regular meetings with the Owner. The Construction Manager shall consult with the Owner and Architect regarding site use and improvements and the selection of materials,building systems and equipment.The Construction Manager shall provide recommendations on construction feasibility;actions designed to minimize adverse effects of labor or material shortages;time requirements for procurement, installation and construction completion;and factors related to construction cost, including estimates of alternative designs or materials,preliminary budgets and possible economies. §2.1.3 PRELIMINARY PROJECT SCHEDULE When Project requirements described in Section 3.1.1 have been sufficiently identified,the Construction Manager shall prepare, and periodically update,a preliminary Project schedule for the Architect's review and the Owner's approval.The Construction Manager shall obtain the Architect's approval of the portion of the preliminary Project schedule relating to the performance of the Architect's services.The Construction Manager shall coordinate and integrate the preliminary Project schedule with the services and activities of the Owner,Architect and Construction Manager. As design proceeds,the preliminary Project schedule shall be updated to indicate proposed activity sequences and durations, milestone dates for receipt and approval of pertinent information, submittal of a Guaranteed Maximum Price proposal,preparation and processing of shop drawings and samples,delivery of materials or equipment requiring long-lead-time procurement,Owner's occupancy requirements showing portions of the Project having occupancy priority,and proposed date of Substantial Completion.If preliminary Project schedule updates indicate that previously approved schedules may not be met,the Construction Manager shall make appropriate recommendations to the Owner and Architect. AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 3 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) §2.1.4 PHASED CONSTRUCTION The Construction Manager shall make recommendations to the Owner and Architect regarding the phased issuance of Drawings and Specifications to facilitate phased construction of the Work,if such phased construction is appropriate for the Project,taking into consideration such factors as economies,time of performance, availability of labor and materials, and provisions for temporary facilities. §2.1.5 PRELIMINARY COST ESTIMATES §2.1.5.1 When the Owner has sufficiently identified the Project requirements and the Architect has prepared other basic design criteria, the Construction Manager shall prepare, for the review of the Architect and approval of the Owner, a preliminary cost estimate utilizing area,volume or similar conceptual estimating techniques. §2.1.5.2 When Schematic Design Documents have been prepared by the Architect and approved by the Owner,the Construction Manager shall prepare,for the review of the Architect and approval of the Owner, a more detailed estimate with supporting data.During the preparation of the Design Development Documents,the Construction Manager shall update and refine this estimate at appropriate intervals agreed to by the Owner,Architect and Construction Manager. §2.1.5.3 When Design Development Documents have been prepared by the Architect and approved by the Owner, the Construction Manager shall prepare a detailed estimate with supporting data for review by the Architect and approval by the Owner.During the preparation of the Construction Documents,the Construction Manager shall update and refine this estimate at appropriate intervals agreed to by the Owner,Architect and Construction Manager. §2.1.5.4 If any estimate submitted to the Owner exceeds previously approved estimates or the Owner's budget, the Construction Manager shall make appropriate recommendations to the Owner and Architect. §2.1.6 SUBCONTRACTORS AND SUPPLIERS (Paragraph deleted) See section 2.3.2.1 §2.1.7 LONG-LEAD-TIME ITEMS The Construction Manager shall recommend to the Owner and Architect a schedule for procurement of long-lead- time items which will constitute part of the Work as required to meet the Project schedule. If such long-lead-time items are procured by the Owner,they shall be procured on terms and conditions acceptable to the Construction Manager. Upon the Owner's acceptance of the Construction Manager's Guaranteed Maximum Price proposal,all contracts for such items shall be assigned by the Owner to the Construction Manager, who shall accept responsibility for such items as if procured by the Construction Manager.The Construction Manager shall expedite the delivery of long-lead-time items. §2.1.8 EXTENT OF RESPONSIBILITY The Construction Manager does not warrant or guarantee estimates and schedules except as may be included as part of the Guaranteed Maximum Price.The recommendations and advice of the Construction Manager concerning design alternatives shall be subject to the review and approval of the Owner and the Owner's professional consultants.It is not the Construction Manager's responsibility to ascertain that the Drawings and Specifications are in accordance with applicable laws, statutes,ordinances,building codes,rules and regulations.However, if the Construction Manager recognizes that portions of the Drawings and Specifications are at variance therewith,the Construction Manager shall promptly notify the Architect and Owner in writing. §2.1,9 EQUAL EMPLOYMENT OPPORTUNITY AND AFFIRMATIVE ACTION The Construction Manager shall comply with applicable laws,regulations and special requirements of the Contract Documents regarding equal employment opportunity and affirmative action programs. §2.2 GUARANTEED MAXIMUM PRICE PROPOSAL AND CONTRACT TIME §2.2.1 When the Drawings and Specifications are sufficiently complete,the Construction Manager shall propose a Guaranteed Maximum Price, which shall be the sum of the estimated Cost of the Work and the Construction Manager's Fee. AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 4 Unauthorized reproduction or distribution of this document,or any portion of It,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) §2.2.2 As the Drawings and Specifications may not be finished at the time the Guaranteed Maximum Price proposal is prepared,the Construction Manager shall provide in the Guaranteed Maximum Price for further development of the Drawings and Specifications by the Architect that is consistent with the Contract Documents and reasonably inferable therefrom. Such further development does not include such things as changes in scope,systems,kinds and quality of materials, finishes or equipment,all of which,if required,shall be incorporated by Change Order. §2.2,3 The estimated Cost of the Work shall include the Construction Manager's contingency,a sum established by the Construction Manager for the Construction Manager's exclusive use to cover costs arising under Section 2.2.2 and other costs which are properly reimbursable as Cost of the Work but not the basis for a Change Order. The Construction Manager shall obtain the Owner's approval prior to spending any of the Construction contingency and shall provide the Owner with a full accounting, in a format acceptable to the Owner,of all expenditures of the Construction contingency. The contingency amount shall be a fixed amount of$15,000. §2.2.4 BASIS OF GUARANTEED MAXIMUM PRICE The Construction Manager shall include with the Guaranteed Maximum Price proposal a written statement of its basis,which shall include: .1 A list of the Drawings and Specifications,including all addenda thereto and the Conditions of the Contract, which were used in preparation of the Guaranteed Maximum Price proposal. .2 A list of allowances and a statement of their basis. .3 A list of the clarifications and assumptions made by the Construction Manager in the preparation of the Guaranteed Maximum Price proposal to supplement the information contained in the Drawings and Specifications. .4 The proposed Guaranteed Maximum Price,including a statement of the estimated cost organized by trade categories,allowances,contingency, and other items and the Fee that comprise the Guaranteed Maximum Price. .5 The Date of Substantial Completion upon which the proposed Guaranteed Maximum Price is based, and a schedule of the Construction Documents issuance dates upon which the date of Substantial Completion is based. §2.2.5 The Construction Manager shall meet with the Owner and Architect to review the Guaranteed Maximum Price proposal and the written statement of its basis.In the event that the Owner or Architect discover any inconsistencies or inaccuracies in the information presented,they shall promptly notify the Construction Manager, who shall make appropriate adjustments to the Guaranteed Maximum Price proposal, its basis,or both. §2.2.6 Unless the Owner accepts the Guaranteed Maximum Price proposal in writing on or before the date specified in the proposal for such acceptance and so notifies the Construction Manager,the Guaranteed Maximum Price proposal shall not be effective without written acceptance by the Construction Manager. §2.2.7 Prior to the Owner's acceptance of the Construction Manager's Guaranteed Maximum Price proposal and issuance of a Notice to Proceed,the Construction Manager shall not incur any cost to be reimbursed as part of the Cost of the Work,except as the Owner may specifically authorize in writing. §2.2.8 Upon acceptance by the Owner of the Guaranteed Maximum Price proposal,the Guaranteed Maximum Price and its basis shall be set forth in Amendment No. 1.The Guaranteed Maximum Price shall be subject to additions and deductions by a change in the Work as provided in the Contract Documents,and the Date of Substantial Completion shall be subject to adjustment as provided in the Contract Documents. §2.2.9 The Owner shall authorize and cause the Architect to revise the Drawings and Specifications to the extent necessary to reflect the agreed-upon assumptions and clarifications contained in Amendment No. 1. Such revised Drawings and Specifications shall be furnished to the Construction Manager in accordance with schedules agreed to by the Owner, Architect and Construction Manager.The Construction Manager shall promptly notify the Architect and Owner if such revised Drawings and Specifications are inconsistent with the agreed-upon assumptions and clarifications. AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 5 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) §2.2.10 The Guaranteed Maximum Price shall include in the Cost of the Work only those taxes which are enacted at the time the Guaranteed Maximum Price is established. §2.3 CONSTRUCTION PHASE §2.3.1 GENERAL §2.3.1.1 The Construction Phase shall commence on the earlier of: (1) the Owner's acceptance of the Construction Manager's Guaranteed Maximum Price proposal and issuance of a Notice to Proceed,or (2) the Owner's first authorization to the Construction Manager to: (a) award a subcontract,or (b)undertake construction Work with the Construction Manager's own forces,or (c)issue a purchase order for materials or equipment required for the Work. §2.3.2 ADMINISTRATION §2.3.2.1 Those portions of the Work that the Construction Manager does not customarily perform with the Construction Manager's own personnel shall be performed under subcontracts or by other appropriate agreements with the Construction Manager.The Construction Manager shall obtain proposals from Subcontractors and from suppliers of materials or equipment fabricated to a special design for the Work in accordance with State Code 271.118. The Owner will then determine, with the advice of the Construction Manager and subject to the reasonable objection of the Architect, which bids will be accepted.The Construction Manager shall not be required to contract with anyone to whom the Construction Manager has reasonable objection. §2.3.2.2 If the Guaranteed Maximum Price has been established and a specific bidder among those whose bids are delivered by the Construction Manager to the Owner and Architect(1)is recommended to the Owner by the Construction Manager; (2)is qualified to perform that portion of the Work;and(3)has submitted a bid which conforms to the requirements of the Contract Documents without reservations or exceptions,but the Owner requires that another bid be accepted,then the Construction Manager may require that a change in the Work be issued to adjust the Contract Time and the Guaranteed Maximum Price by the difference between the bid of the person or entity recommended to the Owner by the Construction Manager and the amount of the subcontract or other agreement actually signed with the person or entity designated by the Owner. §2.3.2.3 Subcontracts and agreements with suppliers furnishing materials or equipment fabricated to a special design shall conform to the payment provisions of Sections 7.1.8 and 7.1.9 and shall not be awarded on the basis of cost plus a fee without the prior consent of the Owner. §2.3.2.4 The Construction Manager shall schedule and conduct meetings at which the Owner,Architect, Construction Manager and appropriate Subcontractors can discuss the status of the Work.The Construction Manager shall prepare and promptly distribute meeting minutes. §2.3.2.5 Promptly after the Owner's acceptance of the Guaranteed Maximum Price proposal,the Construction Manager shall prepare a schedule in accordance with Section 3.10 of A201TM-1997, including the Owner's occupancy requirements. §2.3.2.6 The Construction Manager shall provide monthly written reports to the Owner and Architect on the progress of the entire Work.The Construction Manager shall maintain a daily log containing a record of weather, Subcontractors working on the site, number of workers,Work accomplished,problems encountered and other similar relevant data as the Owner may reasonably require.The log shall be available to the Owner and Architect. §2.3.2.7 The Construction Manager shall develop a system of cost control for the Work,including regular monitoring of actual costs for activities in progress and estimates for uncompleted tasks and proposed changes.The Construction Manager shall identify variances between actual and estimated costs and report the variances to the Owner and Architect at regular intervals. §2.4 PROFESSIONAL SERVICES Section 3.12.10 of A201Thr-1997 shall apply to both the Preconstruction and Construction Phases. AIA Document A121TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 6 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) §2.5 HAZARDOUS MATERIALS Section 10.3 of A201TM-1997 shall apply to both the Preconstruction and Construction Phases. ARTICLE 3 OWNER'S RESPONSIBILITIES §3.1 INFORMATION AND SERVICES §3.1.1 The Owner shall provide full information in a timely manner regarding the requirements of the Project, including a program which sets forth the Owner's objectives,constraints and criteria, including space requirements and relationships,flexibility and expandability requirements,special equipment and systems,and site requirements. §3.1.2 The Owner shall,at the written request of the Construction Manager prior to commencement of the Construction Phase and thereafter,furnish to the Construction Manager reasonable evidence that financial arrangements have been made to fulfill the Owner's obligations under the Contract.Furnishing of such evidence shall be a condition precedent to commencement or continuation of the Work.After such evidence has been furnished,the Owner shall not materially vary such financial arrangements without prior notice to the Construction Manager. §3.1.3 The Owner shall establish and update an overall budget for the Project,based on consultation with the Construction Manager and Architect,which shall include contingencies for changes in the Work and other costs which are the responsibility of the Owner. §3.1.4 STRUCTURAL AND ENVIRONMENTAL TESTS,SURVEYS AND REPORTS In the Preconstruction Phase,the Owner shall furnish the following with reasonable promptness and at the Owner's expense.Except to the extent that the Construction Manager knows of any inaccuracy,the Construction Manager shall be entitled to rely upon the accuracy of any such information,reports,surveys,drawings and tests described in Sections 3.1.4.1 through 3.1.4.4 but shall exercise customary precautions relating to the performance of the Work. §3.1.4.1 Reports,surveys,drawings and tests concerning the conditions of the site which are required by law. §3.1.4.2 Surveys describing physical characteristics,legal limitations and utility locations for the site of the Project, and a written legal description of the site.The surveys and legal information shall include,as applicable,grades and lines of streets, alleys,pavements and adjoining property and structures;adjacent drainage;rights-of-way, restrictions,easements,encroachments,zoning,deed restrictions,boundaries and contours of the site;locations, dimensions and necessary data pertaining to existing buildings,other improvements and trees; and information concerning available utility services and lines,both public and private,above and below grade,including inverts and depths. All information on the survey shall be referenced to a project benchmark. §3.1.4.3 The services of a geotechnical engineer when such services are requested by the Construction Manager. Such services may include but are not limited to test borings,test pits,determinations of soil bearing values, percolation tests,evaluations of hazardous materials,ground corrosion and resistivity tests,including necessary operations for anticipating subsoil conditions,with reports and appropriate professional recommendations. §3.1.4.4 Structural, mechanical,chemical,air and water pollution tests,tests for hazardous materials, and other laboratory and environmental tests,inspections and reports which are required by law. §3.1.4.5 The services of other consultants when such services are reasonably required by the scope of the Project and are requested by the Construction Manager. §3.2 OWNER'S DESIGNATED REPRESENTATIVE The Owner shall designate in writing a representative who shall have express authority to bind the Owner with respect to all matters requiring the Owner's approval or authorization.This representative shall have the authority to make decisions on behalf of the Owner concerning estimates and schedules,construction budgets,and changes in the Work,and shall render such decisions promptly and furnish information expeditiously, so as to avoid unreasonable delay in the services or Work of the Construction Manager.Except as otherwise provided in Section 4.2.1 of A201T51-1997,the Architect does not have such authority. AIA Document A121 n MCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 7 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) §3.3 ARCHITECT The Owner shall retain an Architect to provide Basic Services, including normal structural,mechanical and electrical engineering services,other than cost estimating services,described in the edition of AIA®Document B151TM-1997,Abbreviated Standard Form of Agreement Between Owner and Architect current as of the date of this Agreement.The Owner shall authorize and cause the Architect to provide those Additional Services described in B 151TM-1997,requested by the Construction Manager which must necessarily be provided by the Architect for the Preconstruction and Construction Phases of the Work.Such services shall be provided in accordance with time schedules agreed to by the Owner,Architect and Construction Manager.Upon request of the Construction Manager, the Owner shall furnish to the Construction Manager a copy of the Owner's Agreement with the Architect,from which compensation provisions may be deleted. (Paragraphs deleted) ARTICLE 4 COMPENSATION AND PAYMENTS FOR PRECONSTRUCTION PHASE SERVICES—N/A (Paragraphs deleted) ARTICLE 5 COMPENSATION FOR CONSTRUCTION PHASE SERVICES The Owner shall compensate the Construction Manager for Construction Phase services as follows: §5.1 COMPENSATION §5.1.1 For the Construction Manager's performance of the Work as described in Section 2.3,the Owner shall pay the Construction Manager in current funds the Contract Sum consisting of the Cost of the Work as defined in Article 7 and the Construction Manager's Fee determined as follows: Construction Manager fee is 3%of the construction contract. For Change Orders to contract,the CM fee shall be adjusted 3%plus 10%for overhead costs. Overhead costs shall not exceed$39,825 for items noted in section 6.1 beginning upon first day of work and ending at completion of punch list(shall not exceed 30 days). (State a lump sum,percentage of actual Cost of the Work or other provision for determining the Construction Manager's Fee, and explain how the Construction Manager's Fee is to be adjusted for changes in the Work.) §5.2 GUARANTEED MAXIMUM PRICE §5.2.1 The sum of the Cost of the Work and the Construction Manager's Fee are guaranteed by the Construction Manager not to exceed the amount provided in Amendment No. 1, subject to additions and deductions by changes in the Work as provided in the Contract Documents. Such maximum sum as adjusted by approved changes in the Work is referred to in the Contract Documents as the Guaranteed Maximum Price. Costs which would cause the Guaranteed Maximum Price to be exceeded shall be paid by the Construction Manager without reimbursement by the Owner. Refer to Schedule C(Amendment No. 1) (Insert specific provisions if the Construction Manager is to participate in any savings.) If actual cost of the work plus the Construction Manager's fee is less than the Guaranteed Maximum Price,it shall the adjusted by approved Change Orders. The entire amount of the savings shall be returned to the Owner. §5.3 CHANGES IN THE WORK §5.3.1 Adjustments to the Guaranteed Maximum Price on account of changes in the Work subsequent to the execution of Amendment No. 1 may be determined by any of the methods listed in Section 7.3.3 of A201TM-1997. §5.3.2 In calculating adjustments to subcontracts(except those awarded with the Owner's prior consent on the basis of cost plus a fee),the terms "cost" and "fee" as used in Section 7.3.3.3 of A201TM-1997 and the terms "costs" and "a reasonable allowance for overhead and profit" as used in Section 7.3.6 of A201TM-1997 shall have the meanings assigned to them in that document and shall not be modified by this Article 5.Adjustments to subcontracts awarded AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 8 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) with the Owner's prior consent on the basis of cost plus a fee shall be calculated in accordance with the terms of those subcontracts. §5.3.3 In calculating adjustments to the Contract,the terms "cost" and"costs" as used in the above-referenced provisions of A201TM-1997 shall mean the Cost of the Work as defined in Article 6 of this Agreement,and the term "and a reasonable allowance for overhead and profit" shall mean the Construction Manager's Fee as defined in Section 5.1.1 of this Agreement. §5.3.4 If no specific provision is made in Section 5.1.1 for adjustment of the Construction Manager's Fee in the case of changes in the Work,or if the extent of such changes is such,in the aggregate,that application of the adjustment provisions of Section 5.1.1 will cause substantial inequity to the Owner or Construction Manager, the Construction Manager's Fee shall be equitably adjusted on the basis of the Fee established for the original Work. ARTICLE 6 COST OF THE WORK FOR CONSTRUCTION PHASE §6.1 COSTS TO BE REIMBURSED §6.1.1 The term "Cost of the Work" shall mean costs necessarily incurred by the Construction Manager in the proper performance of the Work.Such costs shall be at rates not higher than those customarily paid at the place of the Project except with prior consent of the Owner.The Cost of the Work shall include only the items set forth in this Article 6. §6.1.2 LABOR COSTS .1 Wages of construction workers directly employed by the Construction Manager to perform the construction of the Work at the site or, with the Owner's agreement,at off-site workshops. .2 Wages or salaries of the Construction Manager's supervisory and administrative personnel when stationed at the site with the Owner's agreement. Classification Name Project Manager Bill Morgan Superintendent Richard Goldstein (If it is intended that the wages or salaries of certain personnel stationed at the Construction Manager's principal office or offices other than the site office shall be included in the Cost of the Work, such personnel shall be identified below.) .3 Wages and salaries of the Construction Manager's supervisory or administrative personnel engaged, at factories, workshops or on the road,in expediting the production or transportation of materials or equipment required for the Work,but only for that portion of their time required for the Work. .4 Costs paid or incurred by the Construction Manager for taxes,insurance,contributions,assessments and benefits required by law or collective bargaining agreements,and,for personnel not covered by such agreements,customary benefits such as sick leave,medical and health benefits,holidays, vacations and pensions,provided that such costs are based on wages and salaries included in the Cost of the Work under Sections 6.1.2.1 through 6.1.2.3. §6.1.3 SUBCONTRACT COSTS Payments made by the Construction Manager to Subcontractors in accordance with the requirements of the subcontracts. §6.1.4 COSTS OF MATERIALS AND EQUIPMENT INCORPORATED IN THE COMPLETED CONSTRUCTION .1 Costs, including transportation,of materials and equipment incorporated or to be incorporated in the completed construction. .2 Costs of materials described in the preceding Section 6.1.4.1 in excess of those actually installed but required to provide reasonable allowance for waste and for spoilage.Unused excess materials,if any, shall be handed over to the Owner at the completion of the Work or,at the Owner's option,shall be sold by the Construction Manager;amounts realized,if any,from such sales shall be credited to the Owner as a deduction from the Cost of the Work. AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 9 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) §6.1.5 COSTS OF OTHER MATERIALS AND EQUIPMENT,TEMPORARY FACILITIES AND RELATED ITEMS .1 Costs, including transportation, installation,maintenance,dismantling and removal of materials, supplies,temporary facilities,machinery,equipment,and hand tools not customarily owned by the construction workers, which are provided by the Construction Manager at the site and fully consumed in the performance of the Work;and cost less salvage value on such items if not fully consumed, whether sold to others or retained by the Construction Manager.Cost for items previously used by the Construction Manager shall mean fair market value. .2 Rental charges for temporary facilities,machinery,equipment and hand tools not customarily owned by the construction workers, which are provided by the Construction Manager at the site,whether rented from the Construction Manager or others,and costs of transportation,installation,minor repairs and replacements,dismantling and removal thereof.Rates and quantities of equipment rented shall be subject to the Owner's prior approval. .3 Costs of removal of debris from the site. .4 Reproduction costs,costs of telegrams,facsimile transmissions and long-distance telephone calls, postage and express delivery charges,telephone at the site and reasonable petty cash expenses of the site office. .5 That portion of the reasonable travel and subsistence expenses of the Construction Manager's personnel incurred while traveling in discharge of duties connected with the Work. §6.1.6 MISCELLANEOUS COSTS .1 That portion directly attributable to this Contract of premiums for insurance and bonds. (If charges for self-insurance are to be included, specify'the basis of reimbursement.) Refer to Schedule A for breakout of insurance cost to be reimbursed. .3 Fees and assessments for the building permit and for other permits,licenses and inspections for which the Construction Manager is required by the Contract Documents to pay. (Note: No allowance in project cost) .4 Fees of testing laboratories for tests required by the Contract Documents,except those related to nonconforming Work other than that for which payment is permitted by Section 6.1.8.2. (Paragraphs deleted) .7 Deposits lost for causes other than the Construction Manager's negligence or failure to fulfill a specific responsibility to the Owner set forth in this Agreement. (Paragraphs deleted) §6.1.7 OTHER COSTS .1 Other costs incurred in the performance of the Work if and to the extent approved in advance in writing by the Owner. §6.1.8 EMERGENCIES AND REPAIRS TO DAMAGED OR NONCONFORMING WORK The Cost of the Work shall also include costs described in Section 6.1.1 which are incurred by the Construction Manager: .1 In taking action to prevent threatened damage,injury or loss in case of an emergency affecting the safety of persons and property, as provided in Section 10.6 of A201TM-1997. .2 In repairing or correcting damaged or nonconforming Work executed by the Construction Manager or the Construction Manager's Subcontractors or suppliers,provided that such damaged or nonconforming Work was not caused by the negligence or failure to fulfill a specific responsibility to the Owner set forth in this agreement of the Construction Manager or the Construction Manager's foremen,engineers or superintendents,or other supervisory,administrative or managerial personnel of the Construction Manager,or the failure of the Construction Manager's personnel to supervise adequately the Work of the Subcontractors or suppliers,and only to the extent that the cost of repair or correction is not recoverable by the Construction Manager from insurance,Subcontractors or suppliers. AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 10 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) §6.1.9 The costs described in Sections 6.1.1 through 6.1.8 shall be included in the Cost of the Work notwithstanding any provision of AIA or A201TM-1997 other Conditions of the Contract which may require the Construction Manager to pay such costs,unless such costs are excluded by the provisions of Section 6.2. 6.1.10 The total of the General Conditions and Field and Office staff costs(Total Compensation Package)shall not exceed$39,825.00. §6.2 COSTS NOT TO BE REIMBURSED §6.2.1 The Cost of the Work shall not include: .1 Salaries and other compensation of the Construction Manager's personnel stationed at the Construction Manager's principal office or offices other than the site office,except as specifically provided in Sections 6.1.2.2 and 6.1.2.3. .2 Expenses of the Construction Manager's principal office and offices other than the site office,except as specifically provided in Section 6.1. .3 Overhead and general expenses,except as may be expressly included in Section 6.1. .4 The Construction Manager's capital expenses,including interest on the Construction Manager's capital employed for the Work. .5 Rental costs of machinery and equipment,except as specifically provided in Section 6.1.5.2. .6 Except as provided in Section 6.1.8.2,costs due to the negligence of the Construction Manager or to the failure of the Construction Manger to fulfill a specific responsibility to the Owner set forth in this Agreement. .7 Costs incurred in the performance of Preconstruction Phase Services. .8 Except as provided in Section 6.1.7.1,any cost not specifically and expressly described in Section 6.1. .9 Costs which would cause the Guaranteed Maximum Price to be exceeded. .10 Costs which would cause the General Conditions and Field and Office staff costs to exceed the amount identified in paragraph 6.1.10. .11 Any organization or association dues. .12 Any bonuses and gifts provided to personnel. .13 Software and date programs or upgrades not registered to the Owner. .14 Costs pertaining to the performance of warranties. §6.3 DISCOUNTS,REBATES AND REFUNDS §6.3.1 Cash discounts obtained on payments made by the Construction Manager shall accrue to the Owner if(1) before making the payment,the Construction Manager included them in an Application for Payment and received payment therefor from the Owner,or(2)the Owner has deposited funds with the Construction Manager with which to make payments;otherwise,cash discounts shall accrue to the Construction Manager.Trade discounts,rebates, refunds and amounts received from sales of surplus materials and equipment shall accrue to the Owner,and the Construction Manager shall make provisions so that they can be secured. §6.3.2 Amounts which accrue to the Owner in accordance with the provisions of Section 6.3.1 shall be credited to the Owner as a deduction from the Cost of the Work. §6.4 ACCOUNTING RECORDS §6.4.1 The Construction Manager shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Contract;the accounting and control systems shall be satisfactory to the Owner.The Owner and the Owner's accountants shall be afforded access to the Construction Manager's records,books,correspondence,instructions,drawings,receipts, subcontracts,purchase orders, vouchers, memoranda and other data relating to this Project,and the Construction Manager shall preserve these for a period of three years after final payment,or for such longer period as may be required by law. ARTICLE 7 CONSTRUCTION PHASE §7.1 PROGRESS PAYMENTS §7.1.1 Based upon Applications for Payment submitted to the Architect by the Construction Manager and Certificates for Payment issued by the Architect,the Owner shall make progress payments on account of the Contract Sum to the Construction Manager as provided below and elsewhere in the Contract Documents. AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 11 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale, User Notes: (641427323) §7.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month,or as follows: §7.1.3 Provided an Application for Payment is received by the Architect not later than the tenth(10)day of a month, the Owner shall make payment to the Construction Manager not later than the twentieth(20)day of the same month. If an Application for Payment is received by the Architect after the application date fixed above,payment shall be made by the Owner not later than twenty (20)days after the Architect receives the Application for Payment. §7.1.4 With each Application for Payment,the Construction Manager shall submit payrolls,petty cash accounts, receipted invoices or invoices with check vouchers attached and any other evidence required by the Owner or Architect to demonstrate that cash disbursements already made by the Construction Manager on account of the Cost of the Work equal or exceed(1)progress payments already received by the Construction Manager;less(2)that portion of those payments attributable to the Construction Manager's Fee;plus(3)payrolls for the period covered by the present Application for Payment. §7.1.5 Each Application for Payment shall be based upon the most recent schedule of values submitted by the Construction Manager in accordance with the Contract Documents.The schedule of values shall allocate the entire Guaranteed Maximum Price among the various portions of the Work,except that the Construction Manager's Fee shall be shown as a single separate item.The schedule of values shall be prepared in such form and supported by such data to substantiate its accuracy as the Architect may require.This schedule,unless objected to by the Architect, shall be used as a basis for reviewing the Construction Manager's Applications for Payment. §7.1.6 Applications for Payment shall show the percentage completion of each portion of the Work as of the end of the period covered by the Application for Payment.The percentage completion shall be the lesser of(1)the percentage of that portion of the Work which has actually been completed or(2)the percentage obtained by dividing (a)the expense which has actually been incurred by the Construction Manager on account of that portion of the Work for which the Construction Manager has made or intends to make actual payment prior to the next Application for Payment by(b)the share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values. §7.1.7 Subject to other provisions of the Contract Documents,the amount of each progress payment shall be computed as follows: .1 Take that portion of the Guaranteed Maximum Price properly allocable to completed Work as determined by multiplying the percentage completion of each portion of the Work by the share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values.Pending final determination of cost to the Owner of changes in the Work,amounts not in dispute may be included as provided in Section 7.3.8 of A201TM-1997,even though the Guaranteed Maximum Price has not yet been adjusted by Change Order. .2 Add that portion of the Guaranteed Maximum Price properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the Work or, if approved in advance by the Owner,suitably stored off the site at a location agreed upon in writing. .3 Add the Construction Manager's Fee,less retainage of five(5).The Construction Manager's Fee shall be computed upon the Cost of the Work described in the two preceding Sections at the rate stated in Section 5.1.1 or,if the Construction Manager's Fee is stated as a fixed sum in that Section, shall be an amount which bears the same ratio to that fixed-sum Fee as the Cost of the Work in the two preceding Sections bears to a reasonable estimate of the probable Cost of the Work upon its completion. .4 Subtract the aggregate of previous payments made by the Owner. .5 Subtract the shortfall, if any,indicated by the Construction Manager in the documentation required by Section 7.1.4 to substantiate prior Applications for Payment,or resulting from errors subsequently discovered by the Owner's accountants in such documentation. .6 Subtract amounts,if any,for which the Architect has withheld or nullified a Certificate for Payment as provided in Section 9.5 of A201TM-1997. AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 12 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) §7.1.8 Except with the Owner's prior approval,payments to Subcontractors shall be subject to retention of not less than ten (10).The Owner and the Construction Manager shall agree upon a mutually acceptable procedure for review and approval of payments and retention for subcontracts. §7.1.9 Except with the Owner's prior approval, the Construction Manager shall not make advance payments to suppliers for materials or equipment which have not been delivered and stored at the site. §7.1,10 In taking action on the Construction Manager's Applications for Payment,the Architect shall be entitled to rely on the accuracy and completeness of the information furnished by the Construction Manager and shall not be deemed to represent that the Architect has made a detailed examination,audit or arithmetic verification of the documentation submitted in accordance with Section 7.1.4 or other supporting data,that the Architect has made exhaustive or continuous on-site inspections or that the Architect has made examinations to ascertain how or for what purposes the Construction Manager has used amounts previously paid on account of the Contract. Such examinations,audits and verifications, if required by the Owner, will be performed by the Owner's accountants acting in the sole interest of the Owner. §7.2 FINAL PAYMENT §7.2.1 Final payment shall be made by the Owner to the Construction Manager when(1)the Contract has been fully performed by the Construction Manager except for the Construction Manager's responsibility to correct nonconforming Work,as provided in Section 12.2.2 of A201TM-1997,and to satisfy other requirements,if any, which necessarily survive final payment;(2)a final Application for Payment and a final accounting for the Cost of the Work have been submitted by the Construction Manager and reviewed by the Owner's accountants;and(3)a final Certificate for Payment has then been issued by the Architect; such final payment shall be made by the Owner not more than 30 days after the issuance of the Architect's final Certificate for Payment,or as follows: §7.2.2 The amount of the final payment shall be calculated as follows: .1 Take the sum of the Cost of the Work substantiated by the Construction Manager's final accounting and the Construction Manager's Fee,but not more than the Guaranteed Maximum Price. .2 Subtract amounts,if any,for which the Architect withholds,in whole or in part,a final Certificate for Payment as provided in Section 9.5.1 of A201TM-1997 or other provisions of the Contract Documents. .3 Subtract the aggregate of previous payments made by the Owner. If the aggregate of previous payments made by the Owner exceeds the amount due the Construction Manager,the Construction Manager shall reimburse the difference to the Owner within 30 days. §7.2.3 The Owner's accountants will review and report in writing on the Construction Manager's final accounting within 30 days after delivery of the final accounting to the Architect by the Construction Manager.Based upon such Cost of the Work as the Owner's accountants report to be substantiated by the Construction Manager's final accounting, and provided the other conditions of Section 7.2.1 have been met, the Architect will,within seven days after receipt of the written report of the Owner's accountants,either issue to the Owner a final Certificate for Payment with a copy to the Construction Manager or notify the Construction Manager and Owner in writing of the Architect's reasons for withholding a certificate as provided in Section 9.5.1 of A201TM-1997 .The time periods stated in this Section 7.2 supersede those stated in Section 9.4.1 of A201TM-1997. §7.2.4 If the Owner's accountants report the Cost of the Work as substantiated by the Construction Manager's final accounting to be less than claimed by the Construction Manager,the Construction Manager shall be entitled to proceed in accordance with Article 9 without a further decision of the Architect. Pending a final resolution of the disputed amount, the Owner shall pay the Construction Manager the amount certified in the Architect's final Certificate for Payment. §7.2.5 If,subsequent to final payment and at the Owner's request,the Construction Manager incurs costs described in Section 6.1 and not excluded by Section 6.2(1)to correct nonconforming Work or(2)arising from the resolution of disputes,the Owner shall reimburse the Construction Manager such costs and the Construction Manager's Fee,if any,related thereto on the same basis as if such costs had been incurred prior to final payment,but not in excess of AIA Document A121 T""CMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 13 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) the Guaranteed Maximum Price.If the Construction Manager has participated in savings,the amount of such savings shall be recalculated and appropriate credit given to the Owner in determining the net amount to be paid by the Owner to the Construction Manager. ARTICLE 8 INSURANCE AND BONDS §8.1 INSURANCE REQUIRED OF THE CONSTRUCTION MANAGER During both phases of the Project,the Construction Manager shall purchase and maintain insurance as set forth in Section 11.1 of A201TM-1997. Such insurance shall be written for not less than the following limits,or greater if required by law: §8.1.1 Workers' Compensation and Employers' Liability meeting statutory limits mandated by state and federal laws.If(1)limits in excess of those required by statute are to be provided,or(2)the employer is not statutorily bound to obtain such insurance coverage or(3)additional coverages are required,additional coverages and limits for such insurance shall be as follows: §8.1.2 Commercial General Liability including coverage for Premises-Operations,Independent Contractors' Protective,Products-Completed Operations,Contractual Liability,Personal Injury and Broad Form Property Damage(including coverage for Explosion, Collapse and Underground hazards): Reference Schedule B for insurance coverages. Each Occurrence General Aggregate Personal and Advertising Injury Products-Completed Operations Aggregate .1 The policy shall be endorsed to have the General Aggregate apply to this Project only. .2 Products and Completed Operations insurance shall be maintained for a minimum period of at least ( )year(s)after either 90 days following Substantial Completion or final payment, whichever is earlier. .3 The Contractual Liability insurance shall include coverage sufficient to meet the obligations in Section 3.18 of A201TM-1997. §8.1.3 Automobile Liability(owned,non-owned and hired vehicles)for bodily injury and property damage: Each Accident §8.1.4 Other coverage: (If Umbrella Excess Liability coverage is required over the primary insurance or retention, insert the coverage limits. Commercial General Liability and Automobile Liability limits may be attained by individual policies or by a combination of primary policies and Umbrella and/or Excess Liability policies. If Project Management Protective Liability Insurance is to be provided, state the limits here.) (Paragraphs deleted) §8.3 PERFORMANCE BOND AND PAYMENT BOND §8.3.1 The Construction Manager shall (Insert"shall"or"shall not")furnish bonds covering faithful performance of the Contract and payment of obligations arising thereunder.Bonds may be obtained through the Construction Manager's usual source,and the cost thereof shall be included in the Cost of the Work.The amount of each bond shall be equal to amount of guaranteed maximum of the Contract Sum. §8.3,2 The Construction Manager shall deliver the required bonds to the Owner at least three days before the commencement of any Work at the Project site. AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 14 Unauthorized reproduction or distribution of this document,or any portion of it,may result In severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) ARTICLE 9 MISCELLANEOUS PROVISIONS §9.1 DISPUTE RESOLUTION §9.1.1 During both the Preconstruction and Construction Phases,Claims,disputes or other matters in question between the parties to this Agreement shall be resolved as provided in Sections 4.3 through 4.6 of A201TM-1997 except that,during the Preconstruction Phase,no decision by the Architect shall be a condition precedent to mediation or arbitration. §9.2 OTHER PROVISIONS §9.2.1 Unless otherwise noted, the terms used in this Agreement shall have the same meaning as those in A201TM- 1997,General Conditions of the Contract for Construction. §9.2.2 EXTENT OF CONTRACT This Contract, which includes this Agreement and the other documents incorporated herein by reference,including Construction Manager's response for Request for Qualifications and documents attached hereto represents the entire and integrated agreement between the Owner and the Construction Manager and supersedes all prior negotiations, representations or agreements,either written or oral.This Agreement may be amended only by written instrument signed by both the Owner and Construction Manager.If anything in any document incorporated into this Agreement is inconsistent with this Agreement,this Agreement shall govern. §9.2.3 OWNERSHIP AND USE OF DOCUMENTS Article 1.6 of A201TM-1997 shall apply to both the Preconstruction and Construction Phases. §9.2.4 GOVERNING LAW The Contract shall be governed by the law of the place where the Project is located. §9.2.5 ASSIGNMENT The Owner and Construction Manager respectively bind themselves,their partners,successors,assigns and legal representatives to the other party hereto and to partners,successors,assigns and legal representatives of such other party in respect to covenants, agreements and obligations contained in the Contract Documents. Except as provided in Section 13.2.2 of A201 TM-1997,neither party to the Contract shall assign the Contract as a whole without written consent of the other.If either party attempts to make such an assignment without such consent,that party shall nevertheless remain legally responsible for all obligations under the Contract. ARTICLE 10 TERMINATION OR SUSPENSION §10.1 TERMINATION PRIOR TO ESTABLISHING GUARANTEED MAXIMUM PRICE §10.1.1 Prior to execution by both parties of Amendment No. 1 establishing the Guaranteed Maximum Price,the Owner may terminate this Contract at any time without cause, and the Construction Manager may terminate this Contract for any of the reasons described in Section 14.1.1 of A201TM-1997. §10.1.2 If the Owner or Construction Manager terminates this Contract pursuant to this Section 10.1 prior to commencement of the Construction Phase,the Construction Manager shall be equitably compensated for Preconstruction Phase Services performed prior to receipt of notice of termination;provided,however,that the compensation for such services shall not exceed the compensation set forth in Section 4.1.1. §10.1.3 If the Owner or Construction Manager terminates this Contract pursuant to this Section 10.1 after commencement of the Construction Phase,the Construction Manager shall,in addition to the compensation provided in Section 10.1.2,be paid an amount calculated as follows: .1 Take the Cost of the Work incurred by the Construction Manager. .2 Add the Construction Manager's Fee computed upon the Cost of the Work to the date of termination at the rate stated in Section 5.1 or,if the Construction Manager's Fee is stated as a fixed sum in that Section,an amount which bears the same ratio to that fixed-sum Fee as the Cost of the Work at the time of termination bears to a reasonable estimate of the probable Cost of the Work upon its completion. .3 Subtract the aggregate of previous payments made by the Owner on account of the Construction Phase. AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 15 Unauthorized reproduction or distribution of this document,or any portion of It,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) The Owner shall also pay the Construction Manager fair compensation,either by purchase or rental at the election of the Owner,for any equipment owned by the Construction Manager which the Owner elects to retain and which is not otherwise included in the Cost of the Work under Section 10.1.3.1.To the extent that the Owner elects to take legal assignment of subcontracts and purchase orders(including rental agreements),the Construction Manager shall, as a condition of receiving the payments referred to in this Article 10,execute and deliver all such papers and take all such steps,including the legal assignment of such subcontracts and other contractual rights of the Construction Manager,as the Owner may require for the purpose of fully vesting in the Owner the rights and benefits of the Construction Manager under such subcontracts or purchase orders. Subcontracts,purchase orders and rental agreements entered into by the Construction Manager with the Owner's written approval prior to the execution of Amendment No. 1 shall contain provisions permitting assignment to the Owner as described above.If the Owner accepts such assignment, the Owner shall reimburse or indemnify the Construction Manager with respect to all costs arising under the subcontract,purchase order or rental agreement except those which would not have been reimbursable as Cost of the Work if the contract had not been terminated.If the Owner elects not to accept the assignment of any subcontract,purchase order or rental agreement which would have constituted a Cost of the Work had this agreement not been terminated,the Construction Manager shall terminate such subcontract,purchase order or rental agreement and the Owner shall pay the Construction Manager the costs necessarily incurred by the Construction Manager by reason of such termination. §10.2 TERMINATION SUBSEQUENT TO ESTABLISHING GUARANTEED MAXIMUM PRICE Subsequent to execution by both parties of Amendment No. 1,the Contract may be terminated as provided in Article 14 of A201 TM-1997. §10.2.1 In the event of such termination by the Owner,the amount payable to the Construction Manager pursuant to Section 14.1.3 of A201TM-1997 shall not exceed the amount the Construction Manager would have been entitled to receive pursuant to Sections 10.1.2 and 10.1.3 of this Agreement. §10.2.2 In the event of such termination by the Construction Manager,the amount to be paid to the Construction Manager under Section 14.1.3 of A201 TM-1997 shall not exceed the amount the Construction Manager would have been entitled to receive under Sections 10.1.2 and 10.1.3 above,except that the Construction Manager's Fee shall be calculated as if the Work had been fully completed by the Construction Manager,including a reasonable estimate of the Cost of the Work for Work not actually completed. §10.3 SUSPENSION The Work may be suspended by the Owner as provided in Article 14 of A201TM-1997. ARTICLE 11 OTHER CONDITIONS AND SERVICES 11.1 The Construction Manager will work with the Architect to achieve a Guaranteed Maximum Price that is acceptable to the Owner,and that is within the Owner's funding limitation of three hundred thousand dollars ($300,000). In the event the quality and scope indicated on the documents and the associated pricing at the time of Guaranteed Maximum Price are unacceptable or are above the Owner's funding limitation, the Construction Manager and the Architect will work to develop alternate options that are acceptable to the Owner and are within the Owner's funding limitation. 11.2 A Performance Bond and a Payment Bond,each in the amount of the Contract,as defined by each Amendment, must be executed before beginning the work. For each succeeding Amendment, if any,the description of the scope of the scope of the work and the penal sum of the bonds must be modified prior to beginning the work of the Amendment. 11.3 Notwithstanding any other provision herein or in any related document to the contrary, the Guaranteed Maximum Price,after having been agreed to by the parties,shall not be exceeded without the mutual consent of both parties and a written modification of this Contract by the Parties. 11.4 The following schedules are attached hereto and incorporated herein for all purposes: Schedule A—Project Fee Proposal from Hisaw&Associates Schedule B —Insurance Certificates Schedule C—Sample Amendment to Construction Manager Agreement AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 16 Unauthorized reproduction or distribution of this document,or any portion of it,may result In severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) This Agreement entered into as of the day and year first written above. OWNER CONSTRUCTION MANAGER (Signature) (Signature) Richard Hisaw,President (Printed name and title) (Printed name and title) Date Date ATTEST ATTEST AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law and International Treaties. 17 Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) Additions and Deletions Report for AIA Document A 121 TMCMc— 2003 and AGC Document 565 This Additions and Deletions Report,as defined on page 1 of the associated document,reproduces below all text the author has added to the standard form AIA document in order to complete it,as well as any text the author may have added to or deleted from the original AIA text.Added text is shown underlined. Deleted text is indicated with a horizontal line through the original AIA text. Note: This Additions and Deletions Report is provided for information purposes only and is not incorporated into or constitute any part of the associated AIA document.This Additions and Deletions Report and its associated document were generated simultaneously by AIA software at 15:28:37 on 03/03/2006. Error!Bookmark not defined.PAGE lError!Bookmark not defined. made as of the Seventh day of March in the year of Two Thousand and Six City of Wylie 2000 Hwy. 78 North Wylie,Texas 75098 Hisaw&Associates General Contractors,Inc. 3116 Kellway Drive,Suite 116 Carrollton,TX 75006 City of Wylie Animal Shelter Expansion 949-A Hensley Lane Renovation and Modifications to the existing Wylie Animal Shelter located at 949-A Hensley Lane,Wylie,Texas. Expansion includes development of a 30 cage kennel facility and addition of parking lot. Total construction budget shall not exceed$300,000. Brinkley Sargent Architects 5000 Quorum Drive,Suite 600 Dallas,Texas 75254 Error!Bookmark not defined.PAGE 2Error!Bookmark not defined. Schedule A—Project Fee Proposal from Hisaw&Associates Schedule B—Insurance Certificates Schedule C—Sample Amendment to Construction Manager Agreement Error!Bookmark not defined.PAGE 3Error!Bookmark not defined. 1.1.1 PERSONNEL The Construction Manager's personnel for this project shall be the same personnel contained in the original proposal submitted to the Owner. Any additional personnel or substitutions made to the original personnel shall only be made upon approval by the Owner. Error!Bookmark not defined.PAGE 4Error!Bookmark not defined. The Construction Manager shall seek to develop subcontractor interest in the Project and shall furnish to the Owner and Architect for their information a list of possible subcontractors,including suppliers who are to furnish materials or equipment fabricated to a special design,from whom proposals will be requested for each principal portion of the Additions and Deletions Report for AIA Document A121TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law 1 and International Treaties.Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) Work.The Architect will promptly reply • any objection to such subcontractor or supplier.The rece' Architect later to object to or reject any proposed subcontractor or supplier. See section 2.3.2.1 Error!Bookmark not defined.PAGE 5Error!Bookmark not defined. §2.2.3 The estimated Cost of the Work shall include the Construction Manager's contingency,a sum established by the Construction Manager for the Construction Manager's exclusive use to cover costs arising under Section 2.2.2 and other costs which are properly reimbursable as Cost of the Work but not the basis for a Change Order. The Construction Manager shall obtain the Owner's approval prior to spending any of the Construction contingency and shall provide the Owner with a full accounting,in a format acceptable to the Owner,of all expenditures of the Construction contingency. The contingency amount shall be a fixed amount of$15,000. Error!Bookmark not defined.PAGE 6Error!Bookmark not defined. §2.3.2.1 Those portions of the Work that the Construction Manager does not customarily perform with the Construction Manager's own personnel shall be performed under subcontracts or by other appropriate agreements with the Construction Manager.The Construction Manager shall obtain bids-proposals from Subcontractors and from suppliers of materials or equipment fabricated to a special design for the Work a theist previously feviewed-an,, ft tya h bid hall deliver eb bids t" Owner and Architect in accordance with State Code 271.118. The Owner will then determine, with the advice of the Construction Manager and subject to the reasonable objection of the Architect, which bids will be accepted.The Owner may designate specific persons or entities from whom the Construction Manager shall obtain bids;however, if the Guaranteed Maximum Price has been established,the Owner may not prohibit the Construction Manager from obtaining bids from other qualified bidders.The Construction Manager shall not be required to contract with anyone to whom the Construction Manager has reasonable objection. Error!Bookmark not defined.PAGE 8Error!Bookmark not defined. PA-LEGAL-REQUIREMENTS The Owner shall determine and advise the Architect and Construction Manager of any special legal requirements retatina nstruction in the jurisdiction of the Project.The Owner shall furnish such legal services as are necessary to pr • ' th r do and er ice required under Section 3.1. The Owner shall compensate and make payments to the Construction Manager for Preconstruction Phase services as follows: N calculated as follows: ARTICLE 4 COMPENSATION AND PAYMENTS FOR PRECONSTRUCTION PHASE SERVICES-NIA (State basis of compensation, whether a stipulated sum, multiple of Direct Personnel Expense, actual cost, etc. Include a statement of reimbursable cost items as applicable.) §4.1.2 Compensation for Preconstruction Phase Services shall be equitably adjusted it " r. extend beyond ( )days from the date of this Agreement or if the originally contemplated scope of services is significantly modified. §4.1.3 If t' s based^ ultiple or Direct Personnel Expense,Direct Personnel Expense-is-defined-as mandatory and customary contributions and benefits related thereto, such as employment taxes and other statutory employee benefits,inst R A 9 DAV'NICNTS • a a applicable, shall be in proportion to services performed. Additions and Deletions Report for AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law 2 and International Treaties.Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) §4.2.2 Payments are due and payable ( )days from the date the Construction Manager's invoice is received by the Owner. Amounts unpaid after the date on which-payment is due shall bear interest at the rate entered below,or in (Inset;-- o ftht,..,,..t a..potO (Usury laws and requirements under the Federal Truth in Lending Act, similar state and local consumer credit laws and other regulations at the Owner's and Contractor's principal places of business, the location of the Project and elsewhere may affect the validity of this provision. Legal advice should be obtained with respect to deletions or modifications, and also regarding requirements such as written disclosures or waivers.) Construction Manager fee is 3%of the construction contract. For Change Orders to contract,the CM fee shall be adjusted 3%plus 10%for overhead costs. Overhead costs shall not exceed$39,825 for items noted in section 6.1 beginning upon first day of work and ending at completion of punch list(shall not exceed 30 days). Refer to Schedule C(Amendment No. I) If actual cost of the work plus the Construction Manager's fee is less than the Guaranteed Maximum Price,it shall the adjusted by approved Change Orders. The entire amount of the savings shall be returned to the Owner. Error!Bookmark not defined.PAGE 9Error!Bookmark not defined. Project Manager Bill Morgan Superintendent Richard Goldstein Error!Bookmark not defined.PAGE 10Error!Bookmark not defined. .2Sales, use or similar taxes imposed by a governmental authority which are related Refer to the W i-rk-and Schedule A for which the Construction Manager is liable.breakout of insurance cost to be reimbursed. .3 Fees and assessments for the building permit and for other permits, licenses and inspections for which the Construction Manager is required by the Contract Documents to pay. (Note: No allowance in project cost) .5 Royalties and license fees paid for the use of a particular design,process or product required by the Contract Documents;the cost of defending suits or claims for infringement of patent or other intellectual property rights arising from such requirement by the Contract Documents;payments made in accordance with legal judgments against the Construction Manager resulting from such suits costs of legal defenses,judgment and settlements shall not be included in the calculation of the Construction Manager's Fee or the Guaranteed Maximum Price and provided that such royalties,fees and costs are not xcluded by the last sentence of Section 3.17.1 r A 201 TM 1997 or ether provisions of the Contract Documents. .6 Data processing costs related to the Work. .8 Legal,mediation and arbitration costs,other than those arising from disputes between the Owner and Construction Manager,rgasonably incurred by the Construction Manager in the performance of the withhold .9 Expenses incurred in accordance with Construction Manager's standard personnel policy for to relocate such personnel from distant locations. Error!Bookmark not defined.PAGE 11 Error!Bookmark not defined. 6.1.10 The total of the General Conditions and Field and Office staff costs(Total Compensation Package)shall not exceed$39,825.00. .10 Costs which would cause the General Conditions and Field and Office staff costs to exceed the amount identified in paragraph 6.1.10. Additions and Deletions Report for AIA Document A121TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law 3 and International Treaties.Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) .11 Any organization or association dues. .12 Any bonuses and gifts provided to personnel. .13 Software and date programs or upgrades not registered to the Owner. .14 Costs pertaining to the performance of warranties. Error!Bookmark not defined.PAGE 12Error!Bookmark not defined. §7.1.3 Provided an Application for Payment is received by the Architect not later than the tenth(10)day of a month, the Owner shall make payment to the Construction Manager not later than the twentieth(20)day of the same month.If an Application for Payment is received by the Architect after the application date fixed above,payment shall be made by the Owner not later than( )twenty (20)days after the Architect receives the Application for Payment. .3 Add the Construction Manager's Fee,less retainage of( ). five(5).The Construction Manager's Fee shall be computed upon the Cost of the Work described in the two preceding Sections at the rate stated in Section 5.1.1 or,if the Construction Manager's Fee is stated as a fixed sum in that Section, shall be an amount which bears the same ratio to that fixed-sum Fee as the Cost of the Work in the two preceding Sections bears to a reasonable estimate of the probable Cost of the Work upon its completion. Error!Bookmark not defined.PAGE 13Error!Bookmark not defined. §7.1.8 Except with the Owner's prior approval,payments to Subcontractors shall be subject to retention of not less than( ).ten(10).The Owner and the Construction Manager shall agree upon a mutually acceptable procedure for review and approval of payments and retention for subcontracts. If the aggregate of previous payments made by the Owner exceeds the amount due the Construction Manager,the Construction Manager shall reimburse the difference to the Owner.Owner within 30 days. §7.2,4 If the Owner's accountants report the Cost of the Work as substantiated by the Construction Manager's final accounting to be less than claimed by the Construction Manager,the Construction Manager shall be entitled to proceed in accordance with Article 9 without a further decision of the Architect.Unless agreed to otherwise,a demand for mediation or arbitration of the disputed amount shall be made by the Construction Manager within 60 days after the Construction Manager's receipt of a copy of the Architect's final Certificate for Payment. Failure to make stt accountants becoming binding on the Construction Manager.Pending a final resolution of the disputed amount,the Owner shall pay the Construction Manager the amount certified in the Architect's final Certificate for Payment. Error!Bookmark not defined.PAGE 14Error!Bookmark not defined. §8.1.2 Commercial General Liability including coverage for Premises-Operations,Independent Contractors' Protective,Products-Completed Operations,Contractual Liability,Personal Injury and Broad Form Property Damage(including coverage for Explosion,Collapse and Underground hazards): Reference Schedule B for insurance coverages. §A 2 IA!S IQANCE QE(1I IIQCI.1 GF TUG(11A/AIEQ During both phases of the Project,the Owner shall purchase and maintain liability and property insurance, including waivers-of ubrog -as-set-forth,„Sections-1-1 2-a„.,d 1 .n of A201TM too, Such : a„ce shall be written for not less than the following limits,or greater if required by law: Deductible Per Occurrence Aggregate Deductible §8.2.2 Boiler and Machinery insurance with a limit of: . (If not a blanket policy, list the objects to be insured.) §8.3.1 The Construction Manager shall (Insert"shall"or"shall not")furnish bonds covering faithful performance of the Contract and payment of obligations arising thereunder.Bonds may be obtained through the Construction Additions and Deletions Report for AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law 4 and International Treaties.Unauthorized reproduction or distribution of this document,or any portion of it.may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) Manager's usual source,and the cost thereof shall be included in the Cost of the Work.The amount of each bond shall be equal to( )amount of guaranteed maximum of the Contract Sum. Error!Bookmark not defined.PAGE 15Error! Bookmark not defined. This Contract,which includes this Agreement and the other documents incorporated herein by reference,including Construction Manager's response for Request for Qualifications and documents attached hereto represents the entire and integrated agreement between the Owner and the Construction Manager and supersedes all prior negotiations, representations or agreements,either written or oral.This Agreement may be amended only by written instrument signed by both the Owner and Construction Manager.If anything in any document incorporated into this Agreement is inconsistent with this Agreement,this Agreement shall govern. Error!Bookmark not defined.PAGE 16Error!Bookmark not defined. The Work may be suspended by the Owner as provided in Article 14 of A201TM 1997; in such case,A201TM-1997. ARTICLE 11 OTHER CONDITIONS AND SERVICES 11.1 The Construction Manager will work with the Architect to achieve a Guaranteed Maximum Price,if Price that is acceptable to the Owner,and that is within the term "cost Owner's funding limitation of performance three hundred thousand dollars($300,000). In the event the quality and scope indicated on the documents and the associated pricing at the time of Guaranteed Maximum Price are unacceptable or are above the Owner's funding limitation,the Contract" Construction Manager and the Architect will work to develop alternate options that are acceptable to the Owner and are within the Owner's funding limitation. 11.2 A Performance Bond and a Payment Bond,each in that Section shall the amount of the Contract, as defined by each Amendment,must be understood mean executed before beginning the work. For each succeeding Amendment,if any,the description of the scope of the Gest-scope of the Work work and the term"profit" shall penal sum of the bonds must be understood-modified prior to mean beginning the work of the Construction Manager's Fee as described Amendment. 11.3 Notwithstanding any other provision herein or in Sections 5.1.1 any related document to the contrary,the Guaranteed Maximum Price,after having been agreed to by the parties, shall not be exceeded without the mutual consent of both parties and 5.3.1 a written modification of this Agreement.Contract by the Parties. 11.4 The following schedules are attached hereto and incorporated herein for all purposes: Schedule A—Project Fee Proposal from Hisaw&Associates Schedule B—Insurance Certificates ARTICLE 11 OTHER CONDITIO S AND SERVICES Schedule C—Sample Amendment to Construction Manager Agreement Error!Bookmark not defined.PAGE 17Error!Bookmark not defined. Richard Hisaw,President Additions and Deletions Report for AIA Document A121 TMCMc—2003 and AGC Document 565.Copyright ©1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING:This document is protected by U.S.Copyright Law 5 and International Treaties.Unauthorized reproduction or distribution of this document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) Certification of Document's Authenticity AIA® Document D401 TM — 2003 I,Harold Sargent,President,hereby certify,to the best of my knowledge, information and belief,that I created the attached final document simultaneously with its associated Additions and Deletions Report and this certification at 15:28:37 on 03/03/2006 under Order No. 1000207262_1 from AIA Contract Documents software and that in preparing the attached final document I made no changes to the original text of AIA°Document A121TMCMc— 2003 and AGC Document 565 -Standard Form of Agreement Between Owner and Construction Manager where the Construction Manager is Also the Constructor,as published by the AIA in its software,other than those additions and deletions shown in the associated Additions and Deletions Report. (Signed) (Title) (Dated) AIA Document D401 TM-2003.Copyright©1992 and 2003 by The American Institute of Architects. All rights reserved. WARNING:This Ale Document is protected by U.S.Copyright Law and International Treaties.Unauthorized reproduction or distribution of this AIAC Document,or any portion of it, 1 may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law.This document was produced by AIA software at 15:28:37 on 03/03/2006 under Order No.1000207262_1 which expires on 11/15/2006,and is not for resale. User Notes: (641427323) Schedule B Client#:26853 HISAASSO _ ACORD:, CERTIFICATE OF LIABILITY INSURANCE D TE Mr D/YY) PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION IMA of Texas, Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 401 N. Central Ste 225 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR Expy ALTER THE COVERAGE AFFORDED THE POLICIES BELOW. Dallas,TX 75225 P.214 365-6200; F.214 365-6290 INSURED Hisaw&Associates General Contractors 3116 Kellway Drive,Ste 116 INSURERS AFFORDING COVERAGE —"----- - - _ INSURER A: Travelers Lloyds Insurance Company INSURERS, Travelers Indemnity Co.of Connectic r—— ------____.--_ -- INSURER C: Travelers Indemnity Co.of America Carrollton, TX 75006-3330 INSURER D: Charter Oak Fire Insurance Co. INSURER B. -------- - - - -__ COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS INSR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE .POLICY EXPIRATION LIMITS LTR ' DATE(MMIDD/YY) i DATE IMM/DD/YY) A GENERAL LIABILITY C01276C77A 12/31/05 12/31/06 EACH OCCURRENCE $1,000,000 X COMM ERCIAL GENERAL LIABILITY FIRE DAMAGE(Any one fire) $300,000 CLAIMS MADE I X ' OCCUR MED EXP(Any one person) $10,000 XPD Ded:5,000 PERSONAL&ADV INJURY $1,000,000 GENERAL AGGREGATE $2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS -COMP/OP AGG $2,000,000 POLICY X - i JEC PROT 1 LOG I.) 'AUTOMOBILE LIABILITY CAP5409B504 12/31/05 12/31/06 COMBINED SINGLE LIMIT X ANY AUTO (Ea accident) $1,000,000 _i ALL OWNED AUTOS BODILY INJURY SCHEDULED AUTOS (Per person) $ X HIRED AUTOS BODIL X NON-OWNED AUTOS (Per accCc:..; ---._ -._.____--_----_-_—_---- I PROPERTY DAMAGE $ (Per accident) GARAGE LIABILITY AUTO ONLY-EA ACCIDENT $ j ANY AUTO OTHER THAN EA ACC S —" - - --- - • AUTO AGG $ B L EXCESS LIABILITY CUP5409B516 12/31/05 i 12/31/06 EACH OCCURRENCE $5,000,000 X I OCCUR CLAIMS MADE AGGREGATE $5,000,000 i $ DEDUCTIBLE $ RETENTION $ $ C WORKERS COMPENSATION AND UB2572C309 12/31/05 12/31/06 XiWCORY LIM STATUI -T�I ''.OTH- _ ER —__ _ EMPLOYERS'LIABILITY E.L.EACH ACCIDENT $1,000,000 • E.L.DISEASE-EA EMPLOYEE $1,000,000 • EL.DISEASE-POLICY LIMIT I s1,000,000 A • OTHER Bldrs Risk 'QT6605372B912 12/31/05 12/31/06 $17,000,000 max. All Risk except$1,000,000 Frame,BV&JM DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLESIEXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS RE: Mansfield Athletic Complex. A Waiver of Subrogation applies in favor of Mansfield Independent School District. Mansfield ISD,Construction Program Supervisor and Architect are included as Additional Insured on the General Liability Policy as required by written contract or agreement. This coverage is primary to other coverages maintained by the Additional Insured. CERTIFICATE HOLDER 1 ADDITIONAL INSURED;INSURER LETTER: CANCELLATION SHOULD ANYOF TH E ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TOTHE CERTIFICATE HOLDER NAMED TOTHE LEFT,BUT FAILURE TO DO SO SHALL IMPOSE NOOB LIGATION OR LIABILITY OF ANY KIND UPON THE INSURE R,ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTA IVE ACORD 25-S(7/97)1 of 2 #5282124/M282120 JJE 0 ACORD CORPORATION 1988 Schedule C C PROPOSAL TABULATION FOR CONTSTRUCTION MANAGEMENT AT-RISK SERVICES CITY OF WYLIE, TEXAS -1NYLIE ANIMAL SHELTER i Item # Item/Description - Fees Vendor Response Pre-Construction Fee - $0.00 1 Construction Services Percentage: X $ 300,000.00 7.00% 2 Insert Extended Fee -% x Budget Amount: $21,000.00 $22,000.00 3 Field & Office Staff: 4 General Conditions -Lump Sum -(From line 51 below) $17,825.00 Total Cost= (Pre-Construction + Construction Services + Field & Office Staff+ $60,825.00 5 General Conditions )= Onsite Field Office Staff: Include all necessary overhead and multipliers within each line where applicable: $2,500.00 6 Project Manager $19,500.00 7 Superintendent(s) Assistant Superintendent 8 Other Field Office Staff- Defined in column Assistant Superintendent 9 Other Field Office Staff- Defined in column Assistant Superintendent 10 Other Field Office Staff- Defined in column Assistant Superintendent 11 Other Field Office Staff- Defined in column Item/Description - Fees Vendor Response zf i Item # I 12 Sub-total - On-site Field Office Staff 0 $22,000.00 Percentage of Time personnel Project Manager; 10% 13 dedicated to this project: Superintendent(s): 100% General Conditions Field Engineering Labor $500.00 14 15 Field Engineering Equipment& Supplies $150.00 Field Project Office $975.00 16 17 Temporary Fire Extinguishers & Safety Equipment& Labor $0.00 Office Furniture $0.00 18 Office Supplies $150.00 19 20 Postage/Federal Express/Courier Services $150.00 Miscellaneous Document Printing $250.00 21 Copy Machine and Paper $0.00 22 Office Equipment $0.00 23 Telephone and Fax Services $900.00 24 Janitorial Services N/A 25 Construction Clean Up $1,200.00 26 27 Miscellaneous Small Tools and Consumables $250.00 Vehicle Rental $900.00 28 Vehicle Fuel, Maintenance and Repair $600.00 29 Vehicle Insurance $0.00 30 All Risk Builder's Insurance $450.00 31 General Commercial Liability Insurance $1,050.00 32 i Item/Description -Fees Vendor Response Item # 33 AM Other Insurance in Addition to CGL Required N/A Building Permit Fees COST OF THE WORK 34 35 Construction , Equipment Freight& Insurance Charges N/A Independent Testing & Inspection COST OF THE WORK 36 Construction Clean Up See Line#26 37 Final Clean Up $500.00 38 Special Testing Equipment Rentals N/A 39 Travel N/A 40 Temporary Sanitary Facilities $300.00 41 Barricades, Protection, Runs, Safety Rails $200.00 42 A& P Equipment Trailer $150.00 43 General Handling & Hoisting, Fuel & Maintenance $150.00 44 Dumpsters (excludes Demo, Masonry, Drywall) $1,500.00 45 Computers N/A 46 Contractor Bond: $7,500.00 47 Contractor Insurance: See line#31 &#3 48 2 Other-Please specify below: 49 50 Other-Please specify below: 51 Total -General Conditions: $17,825.00 52 Insurance Rate Modifier 0.72 Amount of Commercial General Liability 5iV1 53 • i , - 0 PROPOSED T-8 HIGH ZONE � ` , 2.0 M.G. ELEVATED �� ... STORAGE TANK IIIJ al ------- \K///,/ , PARKER CITY UMS :: y;. �,... -VI"II.Ip ii so r , Rir r) ,,, 40c,,6 � 2'. , - I♦t �� ,20 .�Tirra:il��; 195-8 _ 15 _ lil � l�B. j Era: _ ese,,,,_6.,... 2 ,_ _ '•+... Lll t T ��f ill prAvw .:."""°'" _.i `��� Id ' ii II J r jiirly 1 f ,IL.' - ----i.ail ira��II r 208- 6-to 1. Lei ®• 2,7 " � // , • _223 6 +.�fy�yyw�0"..6 '17. " 1 �'� / .w a� .c,,,, • '41111�a 6�.7 2 1 .. 240- - ,% ® 8 3 T 114 6,.�4r .� ', �, ' S lip UM. E _A 6iii0). �Ait,. ,' ,' I13,17 1i0itall I .?. ii440 ,, / ..) 1 k i Ift _4%_ rtilp,,ro. , -I Al /' 11 .) '1 pp •1,11\ ipi t ge .4 ,Fer...itik "i 1,4 . 1 -4--- J iiii dar0.3 IV 1:41:Ideal•••AVArMetV kr rELVVII/Ljakilla um.= Airi tam. 'ft ; ..- 1 fir _Ala il sa ilik.„.%111 1 - milli:- i Eill 1144a1 ' ,.... .I Mar I, ,, '� �Q�%�� ��"� tier ��'A r ' ', ' EXISTING NORTEX PUMP STATION ati��!1�~(�I�'�!iM� .. �/ ry 1 PUMP-NO G.P.M. ��;�i , �Ma r I" 1 PUMP-1,000 G.P.M. (OUT OF SE .�,� 0.9 M.G. GROUND STORAGE TANK *new � ' 16� t =-r�Lmi. �,�. �� '�_ ULTIMATE PROPOSED CAPACITY � '`"_rr, ;� _ I I ���. ��.�-,� ® 120' T.D.H. = 9.07 M.G.D. �-.-■ illi ._� �, _f I � I. •--- v -� '' 3 PUMPS-2,100 G.P.M. EACH _____zla '*�. �,� r,°`� ` { °` -ID 1 PUMP-2,100 G.P.M. (OUT OF SE II i '�"'— � - 1 --- i ..,, W • Law/ 1.5 M.G. (PROPOSED)+0.9 M.G. (E}-^' ...- eat - 2.4 �, 25N✓-'� ,F i Y'�' l�r:l'w_p: Tom./• ���- t Y1.Lf. — w�Lt.—IL ® F. M. - Y� M'r —_— -�1// GROUND STORAGE A I Me - r;u : ,28 EXISTING T-1 DECKER I A��.ii��1!�►..I 40' 0.75 M.G. ELEVATED �/'����,,, -- "N°°` STORAGE TANK 1 291 , o '`� 1V, ®�%v ,`l . . _ 1 I 1114- ' ___ ,,,_ ,\._ i..... - 0..--70111111 .T:ff*. -— ' 711111P I ,-- • A'''. .'. 8"rtr_..5-,kinim.r ' ..., • W. ' i - - - !NW ---.,) 4. irral 1111kT-4--.F7,, Vrillimi."11.: 1 - VIM pk.33911='MMIPM P. ........... ................. ;Irt%,,„,...,:...."" ......f........ . ,,,-..._%.,...!....''' .........,i ...- In re ••fir. Ell MIMI4''.41 't / ..\\" ' ',‘ It ••I I I , Atier (.0•. ..,,, , . i I nr_ r 4./;,,, r. . • _ e , s.. . - . , ,,cr L . 1a6 of g cm ..• ra-..6.•.....=..-t16Md,mcli grrArr..W,'1'"111611',„1148.1"11"11 P.o p'.,p,..w•.W6.. a• w.A - lirp . IriiiilrIlitrtm•m va111 A4- u 'Ii-Ill1"I11c.!Ti iilll4ti1t1: STATION r 1 1 Ill'Ii.r ICTI411057 ,,P1 I I , il it jrt . : I I 1 ' _Allir INK ' (OUT OF SERVICE) - los all Imillik.•-,.,, _ _40. A, IIII II, , -19 ,. ,.,II . I PP\' e/It - ... ilifiliF-2 Ina.; , . _ gIV .•• (a",Mai U 1 AGE TANK iigit-41111,1101!:--1 I-IIM' AusliwAIT-74.--.0 0 w, 4,c...,- i 1 rwp, _ . .,1_ PACITY 10061ww-606*--or&L wkw,... leetaisA.L. I . Ai lltr. -A= ,,,i iimag( tilli I 71 I 0 ‘,..„ ,1E, •"i'l! M..1% iv ....1 .. ._./ ____/.._.E. r/ 1 111111.e. I ,....,,,, r i _____t: M.G.D. VIE '''""''"" / _.. . .. 0 altp 5),:5-7,,P,1 4' II 11111.; ' EACH Now s a r, ' MR (OUT OF SERVICE) ' :down= 1"*" i...inw .1 ; I.•71 111,V,it le 0*op 0 4/-46-5051Ir lit^3 2-8- I.G.,'s . 1- ) ,..) Id . --....., --/_64 ,,>../A0111111,01111111 I 1 113 I i 1 . .„-1•MMIN-111ffilire ''iaina. II I ,\ 1 III 1 i- 40 I 2 1, ,.w.... mv • ) , El i. 1 6 'Al,.A.t , mmma , I 485 .to, L ,„ 3 ?lir . iiiiiiij e 0-ifo. law ppommi , 0411- ....._,..4.,-,..,.§. - w,----3,00,1_12 31027. e-742, 103-12- 11191.4111 4. I- . ?Ike , g' ' Is . , , •: io .! 0 lit 41 0, • . 0 -_,Ark kw ‘,„............e...e...„.....„„: I, 1 ter 1 (46 MEASIO116111,..411r-epati 1 immallill."NW.4.000211•7 14 Itrio it ,... i ' 6 4 1 , illit-Th. ... ,..).- ir ,, .-. EXISTING 0.25 M.G. ,03 - • i .i. , , 10, , , PROPOSED 1.5 M.G. — pm ta.......4 r/ oiroAl \ \ / _ .jOiii 1 4/6-11 v`iliallillit _: ELEVATED STORAGE TANK 111111111-1 '''''' I: .In II 1 Or .11111111 -le LL / \ Avg -; OW AIIMMaillr .i_,- Mk 1 I ert-s 11#41 I 7 I: 4.,'0,i dI'l \ j L .71v ...." 1171 NI-4. 1:014/ InlerldlINIIr P 4 ,,..i. 440, - . ......: (3.__ / 50 i gra 0 [ , Allil tior.7 Alk 3 ''D I EAll 361 riP,ryall „.271 I Mr= ,*, ,--4.30. 1.ik- ro 1 pl ' lay ' 1111111:10 . VIV. r4iv 1111111111 ' it" 91 _AC,. Maiall - 326 . i i 1 1 - • I -• - i. / . ,.., oP =-57 4- 7 I ---.4. --.44., •igo-.1 * ammi sismor f i @ 120' T.D.H. = 9.07 M.G.D. �.-c/ a a 1 �y . L . . ,'�4 `+��i //' 3 PUMPS-2,100 G.P.M. EACH ..i �.. s• 1 PUMP-2,100 G.P.M. (OUT OF SERVICE) ��� • f� ! ; `it )�r�i�. "'�- C / 1.5 M.G. (PROPOSED)+0.9 M.G. (EXISTING) r'ti� f .�. -.Sr. = — 2 RAGE TANKS1 _ - / _ _ 4 Y�r_ :. 0 3 r - GR OUND STOo - tirit f . j. 11. Millif EXISTING T-1 DECKER I� 1. I �pttti��iliP �ir41 20.k 1i 0.75 M.G. ELEVATED ��' - "�• . I i' s�i�00 70 -"-A.A. e • STORAGE TANK `: � / _ PP �� ,`� 2 307 �\� ,03-12• _ �-� M € ' 12" ) 0. f/ \ �; ! j � m 6 r ,R /i tom`-�°114 m ,,,/ ;� — ' ��' a , ii C_ % , Fu.- ....•—. .) 411!r .0 z, Al z � � j �▪ ti1 , n. / 4. 311-12• 6 Vgr_ .Y �� �� � � ��MEV ,;/ ! fir,. ti = , Lg ----,..matesmoter -114. P,d zE,e..sj/' "II -, —n i 13114 I-: lizi, " 111611.7 e :14 sake.7_ - D : .z.go )1 387-12" or jr% 4.1, 4.4 /rif• • 'ff 4 Z A 04,,,A ,____ ,,, L13 . innerom simmen Alm= ,- ,„,,,;" ..... i$ i lik ,,, "7 ipp - - ______ %'� ilk ,tip.. N. `�"' ❑ice LAE