august 20, 2013 agenda packet

City Council Agenda of 5 August 20, 2013

NOTICE OF A PUBLIC MEETING

AN AGENDA OF A REGULAR MEETING OF THE CITY COUNCIL THE CITY OF SAN ANGELO, TEXAS

9:00 A.M. - Tuesday, August 20, 2013 McNease Convention Center, South Meeting Room

500 Rio Concho Drive San Angelo, TX 76903

THE MCNEASE CONVENTION CENTER IS ACCESSIBLE TO PERSONS WITH DISABILITIES. ACCESSIBLE ENTRIES AND SPECIALLY MARKED PARKING SPACES ARE AVAILABLE AT BOTH MAIN ENTRANCES AT SURBER DRIVE AND RIO CONCHO DRIVE. IF ADDITIONAL ASSISTANCE IS NEEDED TO OBSERVE OR COMMENT, PLEASE NOTIFY THE OFFICE OF THE CITY CLERK, ROOM 210, CITY HALL, 657-4405, AT LEAST 24 HOURS PRIOR TO THE MEETING. City Council meetings are broadcast on Channel 17-Government Access at 10:30 A.M. and 7:00 P.M. every day for two weeks beginning on the Thursday after each meeting.

As a courtesy to those in attendance, please place your cell phone on “Silent” or “Vibrate” Thank You!

I. OPEN SESSION (9:00 A.M.)

A. Call to Order

B. Prayer and Pledge

"Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God, one and indivisible.”

C. Proclamation

“West Texas Lighthouse for the Blind”, Tuesday, August 27, 2013, to be accepted by Dave Wells, Executive Director

D. Recognitions

2013 State Games of America participant Seth Demere, San Angelo Recreation Track Club, Wins 16U Pole Vault in Hershey, Pennsylvania competition

2013 Corpus Christi Games of Texas Participants: Bailey Kinney, Broke the State 800 Meter Record 12U 2012, and places 2nd in 14U 800 Meter Run; Zac Cabrera, 2nd place in the 16U 1600 Meter Run; Jessica Simon, 2nd 14U 800 Meter & 1600 Meter Run; and Hagen Stoute, 3rd Place in 16U Pole Vault

E. Public Comment

The Council takes public comment on all items in the Regular Agenda. Public input on a Regular Agenda item will be taken at its appropriate discussion. Public input on an item not on the Agenda or Consent Agenda may be identified and requested for consideration by the Council at this time. The Council may request an item to be placed on a future agenda, or for a Consent Agenda item, to be moved to the Regular Agenda for public comment.

On public hearing items, public input will be received on each item immediately following the Council discussion and prior to any action on the item. Each member of the public should make their remarks from the podium and begin by stating their name. Remarks by each citizen will be limited to three to five minutes, unless waived by a council member for all speaking on that matter. No individual will be allowed to speak more than once on any one subject until every citizen wishing to comment has done so.


II. CONSENT AGENDA 1. Consideration of approving the August 6, 2013 City Council Regular meeting minutes 2. Consideration of authorizing the City Manger to execute on behalf of the City a Concession

Agreement and all related documents with Wayne Burton d/b/a Hertz Rent A Car for a non-exclusive license to operate an automobile rental service at the San Angelo Regional Airport-Mathis Field (submitted by Airport Director Luis Elguezabal)

3. Consideration of adopting Resolution amending authorized representatives for Texpool, an Investment Service for Public Funds (submitted by Chief Accountant Jaime Guerrero)

4. Consideration of approving Special Recreational Lease Agreement for 0.117 acres of land (Bell) located adjacent to the lake or river and authorizing the City Manager or Water Utilities Director to execute the same (submitted by Water Utilities Director Ricky Dickson)

5. Consideration of adopting a Resolution authorizing the city manager to execute an acceptance, on behalf of the City of San Angelo, Texas, of a special dedication deed, the Howard College at San Angelo Foundation, Grantor, relating to certain real property being 0.26 acre tract of land located in the City of San Angelo, Tom Green County, Texas, at or about Smith Boulevard in northeast San Angelo, for purposes of grantor constructing and dedicating a public motor vehicle access and turn around to the Howard College campus necessary for grantor’s further development of adjacent campus property; and, finding a public purpose and benefit therein (submitted by Interim Director of Development Services AJ Fawver)

6. Second Hearing and consideration of adopting an Ordinance amending Chapter 12, Exhibit “A” (Zoning Ordinance) of the Code of Ordinances, City of San Angelo (Presentation by Interim Senior Planner Jeff Hintz) Z13-23: Earl and Michelle Weber AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 3862 Tractor Trail, located at the northwest corner of the intersection of Tractor Trail and Porter Henderson Drive. This property specifically occupies the Paul Gregory Addition, Section 2, 5.33 acres of Tract J & 0.310 acres in Smith Boulevard, in northeast San Angelo, changing the zoning classification from Ranch & Estate (R&E) to Light Manufacturing District (ML) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

7. Second Hearing and consideration of adopting an Ordinance amending Chapter 12, Exhibit “A” (Zoning Ordinance) of the Code of Ordinances, City of San Angelo (submitted by Interim Senior Planner Jeff Hintz) Z 13-22: M&H Mueller AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 3172 McGill Boulevard & 3733 North US Highway 67, collectively occupying both a 5.131 acre tract and a 55.1830 acre tract located west of North US Highway 67, north of Paulann Boulevard and east of Smith Boulevard; more specifically occupying 5.131 acres of the J. Pointevent Survey 1113, Abstract 4873, and 55.1830 acres of the J. Fenner Survey 0001, Abstract 4985, in northeast San Angelo, changing the zoning classification from a General Commercial (CG) to a Light Manufacturing (ML) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY


III. REGULAR AGENDA:

F. EXECUTIVE/CLOSED SESSION

Executive Session under the provision of Government Code, Title 5. Open Government; Ethics, Subtitle A. Open Government, Chapter 551. Open Meetings, Subchapter D. Exceptions to Requirement that Meetings be Open:

• Section 551.072 to deliberate the purchase, exchange, lease, or value of real property regarding 1) Lake Nasworthy Lease Lots, 2) Lake Nasworthy property, and 3) Red Arroyo Hills Addition, 4) West Texas Water Partnership, and 5) lease of City owned property in the downtown area

• Section 551.074(a)(1) to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of the City Manager

G. PUBLIC HEARING AND COMMENT

8. Consideration and possible action regarding a revision to the City of San Angelo Development Corporation Guidelines for Job Creation Assistance regarding Eligibility of Applicants (Requested by Mayor Morrison and presentation by Interim Economic Development Director Bob Schneeman)

9. Discussion and possible action on prohibiting fireworks at Twin Buttes Reservoir (Requested by Councilmember Fleming)

10. Discussion and possible action concerning a 3.8 acre tract of land located on the Loop 306 frontage road and owned by the West Texas Christian Foundation, aka Christian Village property (Requested by Councilmember Wardlaw)

11. Consideration of authorizing staff to negotiate an agreement, in substantially the attached form, with artist Raul R. Ruiz to design, create, and install a bronze sculpture depicting a policeman together with a child to be installed on the outdoor premises of the headquarters building of the San Angelo Police Department at 401 East Beauregard, San Angelo, Texas, in an amount not to exceed $100,000.00, and authorizing the City Manager to execute an agreement between the City of San Angelo and Raul R. Ruiz (Presentation by Police Chief Tim Vasquez)

12. Discussion and consideration of matters related to the Fiscal Year 2013-2014 Budget including: a. First Public Hearing of a proposed property tax levy for the City of San Angelo for the 2013 tax

year; b. First Public Hearing and consideration of introducing an Ordinance of the City of San Angelo

approving and adopting the FY 2014 Budget and related matters AN ORDINANCE OF THE CITY OF SAN ANGELO APPROVING AND ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2013, AND ENDING SEPTEMBER 30, 2014; ADOPTING EMPLOYEE COMPENSATION SCHEDULES; PROVIDING FOR THE GENERAL APPROPRIATION OF FUNDS; RESERVING UNTO THE CITY COUNCIL THE AUTHORITY TO TRANSFER APPROPRIATIONS BUDGETED; RATIFYING TRANSFERS OF APPROPRIATIONS OCCURRING IN THE 2012-2013 FISCAL YEAR AND AMENDING THAT BUDGET ORDINANCE ACCORDINGLY; RESERVING UNTO THE CITY COUNCIL THE POWER, ONLY AS PERMITTED BY LAW, TO AMEND OR MAKE CHANGES IN THE BUDGET FOR MUNICIPAL PURPOSES; PROVIDING AUTHORITY FOR THE CITY MANAGER OR HIS DESIGNEE TO MAKE CERTAIN ADJUSTMENTS FROM TIME TO TIME IN OR BETWEEN BUDGETED ALLOCATIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO APPLY FOR CERTAIN


GRANTS AND EXECUTE ANY RELATED DOCUMENTS; AND, PROVIDING FOR FILING OF THE BUDGET

c. Consideration of conducting a separate record vote to ratify the property tax increase of 2.52% as reflected in the newly adopted budget and place the adoption of this tax rate increase on the agenda for the September 3, 2013 regular meeting of the City Council as an action item, and any action in connection thereto

(Presentation by Budget Manager Morgan Chegwidden) 13. Consideration of prioritizing additional improvements to the River Project with remaining dedicated

funds for the project (Presentation by Parks and Recreation Director Carl White)

14. Discussion and possible direction on items related to the City's authority within the Extra-Territorial Jurisdiction (ETJ) (Requested by Councilmember Self and presentation by Interim Director of Development Services AJ Fawver)

15. Discussion and possible action regarding excess Hotel Occupancy Tax receipts (Presentation by Finance Director Tina Bunnell)

16. First Public Hearing and consideration of introducing an Ordinance amending the 2012-2013 Budget for new projects and incomplete projects AN ORDINANCE OF THE CITY OF SAN ANGELO AMENDING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2012, AND ENDING SEPTEMBER 30, 2013, FOR NEW PROJECTS, INCOMPLETE PROJECTS, CAPITAL PROJECTS, AND GRANTS (Presentation by Budget Analyst Laura Brooks)

17. First Public Hearing and consideration of introducing an Ordinance amending established boundaries of Single Member District 6 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN ANGELO, TEXAS AMENDING THE ESTABLISHED BOUNDARIES OF SINGLE MEMBER DISTRICT NUMBER 6 FOR THE PURPOSE OF INCORPORATING NEWLY ANNEXED AREAS INTO SAID DISTRICT, PROVIDING FOR PRECLEARANCE AND ALL OTHER NECESSARY ACTIONS; AND PROVIDING FOR AN EFFECTIVE DATE (Presentation by City Clerk Alicia Ramirez)

H. FOLLOW UP AND ADMINISTRATIVE ISSUES

18. Consideration of and possible action on matters discussed in Executive/Closed Session, if needed 19. Consideration of approving various Board nominations by Council and designated Councilmembers:

a. Ft. Concho Museum Board: Darrin Fentress (SMD3) to a 1st full term January 2016 b. Water Advisory Board: Paul Alexander (SMD3) to an unexpired term September 2013

20. Announcements and consideration of Future Agenda Items 21. Consideration of the October 21, 2103 City Council meeting and any action in connection thereto 22. EVENING MEETINGS: Beginning October 1, 2013, the City Council will conduct an evening

meeting at 6:00 P.M. once per quarter. Tentative meeting dates: October 1, 2013, January 7, 2014, April 1, 2014, and July 1, 2014

23. Adjournment

The City Council reserves the right to consider business out of the posted order, and at any time during the


meeting, reserves the right to adjourn into executive session on any of the above posted agenda items which are not listed as executive session items and which qualify to be discussed in closed session under Chapter 551 of the Texas Government Code. Given by order of the City Council and posted in accordance with Title 5, Texas Government Code, Chapter 551, Wednesday, August 14, 2013, at 5:00 P.M.

/s/________________________ Alicia Ramirez, City Clerk

P R O C L A M A T I O N WHEREAS, the West Texas Lighthouse for the Blind is a community-based

nonprofit organization providing employment opportunities to people who are blind or visually impaired in San Angelo and 40 West Texas counties; and

WHEREAS, the West Texas Lighthouse for the Blind provides a safe place to

work, on the job training, competitive wages and benefits to the visually impaired, so they can gain independence and a better quality of life; and

WHEREAS, the West Texas Lighthouse for the Blind provides on-time goods and

services at a competitive price to the State of Texas and the Federal Government; and

WHEREAS, in San Angelo, Texas, the West Texas Lighthouse for the Blind

provides employment opportunities and training to 38 people who are blind or visually impaired; and

WHEREAS, San Angelo, Texas recognizes the important contribution and

mission of “creating jobs and changing lives” of the West Texas Lighthouse for the Blind to San Angelo, Texas and its citizens.

NOW, THEREFORE, I, Dwain Morrison, Mayor of the City of San Angelo, Texas, on behalf of the City Council, do hereby proclaim the week of August 26 through 30, 2013 as

“West Texas Lighthouse Services Week” to recognize the staff and employees of the West Texas Lighthouse for the their contribution to our community for these past 50 years and to wish them many more years of success for their endeavors.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City to be affixed this 20th day of August, 2013.

THE CITY OF SAN ANGELO ___________________________

Dwain Morrison, Mayor

SPECIAL RECOGNITION WHEREAS, The State Games of America was held July 31-August 4,

2013 in Hershey, PA and was attended by Seth Demere of the San Angelo Recreation Track Club; and

WHEREAS, Seth qualified to particicpate in this competition by

placing in the top 3 in his age division for the 16-under pole valut competition in last years Texas Amateur Athletic Federation’s Summer Games of Texas, and

WHEREAS, Seth was able to bring home a gold medal for his

exemplary performance in the Pole Vault competition at the State Games of America, Hershey, PA; Seth faced fierce competition from athletes across the nation.

NOW THEREFORE, I, Dawin Morrison, Mayor of the City of San Angelo, on behalf of the City Council, do hereby recognize and sincerely applaud the outstanding athletic ability of SETH DEMERE.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City to be affixed on this 20TH day of August, 2013.

THE CITY OF SAN ANGELO

__________________________ DWAIN MORRISON, MAYOR

SPECIAL RECOGNITION WHEREAS, The Texas Amateur Athletic Federation 2013 Games of Texas

State Track Meet was held July 25-28, 2013, in Corpus Christi, Texas and was attended by Hagen Stout, Jessica Simon, Bailey Kinney, and Zac Cabrera of the San Angelo Recreation Track Club; and

WHEREAS, The TAAF Summer Games of Texas is the largest amateur

athletic event held in Texas and these individuals performed commendably.

WHEREAS, Hagen Stout brought home the bronze in 16-under pole vault;

Jessica Simon brought home the silver in the 12-under 1600 meter run; Bailey Kinney brought home the silver in the 14-under girls 800 meter run and set the State Record for the 12-under girls 800 meter run in the 2012 Games; and Zac Cabrera brought home the silver in the boys 16-under 1600 meter run.

NOW THEREFORE, I, Dawin Morrison, Mayor of the City of San Angelo, on behalf of the City Council, do hereby recognize and sincerely applaud the outstanding athletic ability of HAGEN STOUT, JESSICA SIMON, BAILEY KINNEY, AND ZAC CABRERA.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City to be affixed on this

20TH day of August, 2013.


__________________________ DWAIN MORRISON, MAYOR

City of San Angelo

Memo Date: June 25, 2013

To: Mayor and Councilmembers

From: Luis Elguezabal, A.A.E., Airport Director

Subject: Agenda Item for August 6, 2013 Council Meeting

Contact: Bryan Kendrick, Airport 325.659.6409 ext 1010

Caption: CONSENT

Consideration of authorizing the City Manger to execute on behalf of the City a Concession Agreement and all related documents with Wayne Burton d/b/a Hertz Rent A Car for a non-exclusive license to operate an automobile rental service at the San Angelo Regional Airport-Mathis Field

Summary: This Concession Agreement is for a term of three (5) years beginning September 1, 2012, and expiring August 31, 2017.

Financial Impact: Concessionaire agrees to pay to Lessor, for use of the demised premises and for the rights and privileges granted herein, a minimum guarantee of TWELVE THOUSAND DOLLARS ($12,000.00) a year or an amount equal to ten percent (10.0%) of Concessionaire's annual gross receipts, as defined herein, which are derived from its operation of automobile rental service at the Airport, whichever is greater

Related Vision Item

(if applicable):

None

Other Information/ Recommendation:

Staff recommends approval

Attachments: DRAFT Contract

Presentation: None

Publication: None

Reviewed by Director:

Luis Elguezabal, A.A.E., Airport, 06-25-13

Approved by Legal: Submitted to City Attorney for Approval

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CONCESSION AGREEMENT

THIS CONCESSION AGREEMENT (hereinafter referred to as “Agreement”) is made and entered into by and between the CITY OF SAN ANGELO, a Texas home-rule municipal corporation under the laws of the State of Texas, acting by and through its duly authorized City Manager (hereinafter referred to as "Lessor"), and WAYNE BURTON dba HERTZ RENT-A-CAR, with its principal office at 8618 Terminal Circle, Suite102, San Angelo, Texas 76904 (hereinafter referred to as "Concessionaire" or “Lessee”).

Lessor owns and operates the San Angelo Regional Airport-Mathis Field, located in Tom Green County, Texas (hereinafter called the "Airport"), and Concessionaire is engaged in an operation to supply an adequate number of late-model automobiles that are in good mechanical condition and appearance for the operation of an automobile rental business at Airport at rates comparable to those generally prevailing in the San Angelo area. Because ground transportation is an essential service to Airport passengers and to other patrons of the Airport, it is the intent and desire of Lessor that air passengers have available to them, twenty-four (24) hours a day, seven days a week, a choice of various ground transportation services, any one of which they shall have the right to select and use, including the automobile rental business operated and conducted by Concessionaire.

For and in consideration of the premises and of the mutual terms, conditions and covenants of this Agreement, and other valuable consideration, Lessor does hereby demise and let unto Concessionaire, and Concessionaire does hereby lease and accept from Lessor, certain Airport property, together with improvements thereon (hereinafter called "demised premises"), and certain attendant privileges, uses and rights, as follows: 1. PREMISES AND PRIVILEGES

1.1 DESCRIPTION OF DEMISED PREMISES. The premises conveyed by this Concession Agreement shall be as follows:

1.1.1 Counter areas in the terminal building, as shown on the terminal building

floor plan, which is available for review in the office of the Airport Director; and

1.1.2 Ready car and return car check-in parking positions, which shall be

assigned and designated by the Airport Director. Lessor reserves the right to change the location and number of allocated spaces. It is further agreed that the passenger terminal parking lot will not be used for rental automobile or employee parking and Lessor may withdraw ready car spaces on a one-for-one basis for each rental or employee automobile that is observed in the public parking lot.

1.2 DESCRIPTION OF PRIVILEGES, USES AND RIGHTS. Lessor hereby grants

to Concessionaire the following privileges, uses and rights, all of which shall be subject to the terms, conditions and covenants hereinafter set forth:

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1.2.1 The right, non-exclusive license and privilege to operate an automobile rental service at the Airport for the purpose of renting automobiles to airline passengers and such other persons who may request such service at the Airport;

1.2.2 The right of ingress to and egress from the demised premises over and

across public roadways serving the passenger terminal building by Concessionaire, its agents and servants, patrons and invitees, suppliers of services and furnishers of material;

1.2.3 The right, at Concessionaire's sole expense, to install and thereafter

operate and maintain signs advertising Concessionaire's business on demised premises, and at such other place or places in or upon the Airport as may be mutually agreed upon by the parties hereto in compliance with the Sign Ordinance, Chapter 12, Article 12.600 et seq. of the Code of Ordinances of the City of San Angelo, Texas;

1.2.4 The right, upon any termination of this Agreement, and within a ten (10)

day period thereafter, to remove such items, equipment, trade fixtures, and other non-attached improvements as may have been installed in or upon the demised premises by the Concessionaire.

2. TERM

2.1 TERM. This Concession Agreement is for a term of five (5) years beginning September 1, 2013, and expiring August 31, 2018.

2.2 HOLDOVER. Any holding over by Concessionaire of the demised premises after

expiration of this Agreement shall be construed only as a tenancy from month to month, with privileges and obligations of parties extended from month to month, terminable at the will of Lessor. During this period, rent shall be in accordance with paragraph 3.1.

3. RENT

3.1 AMOUNT. For the period from September 1, 2013, through August 31, 2018,

Concessionaire agrees to pay to Lessor, for use of the demised premises and for the rights and privileges granted herein, a minimum guarantee of TWELVE THOUSAND DOLLARS ($12,000.00) a year or an amount equal to ten percent (10.0%) of Concessionaire's annual gross receipts, as defined herein, which are derived from its operation of automobile rental service at the Airport, whichever is greater. Payment of the gross receipt percentage or minimum guarantee, whichever is greater, shall be made monthly, prorated, on or before the 12th day of each month from and after commencement of operations hereunder. A verifiable report of all gross receipts derived from the business transacted by Concessionaire at the Airport during the preceding calendar month shall be submitted on forms acceptable to Lessor and shall be accompanied by payment to the Lessor of one twelfth (1/12) of the guaranteed annual minimum, to wit: ONE

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THOUSAND AND NO/100 DOLLARS ($1,000.00), or ten percent (10.0%) of the monthly gross receipts for the preceding calendar month, whichever amount is greater. The term "gross receipts", as used herein, shall mean and include time and mileage charges paid or payable to Concessionaire for rental of automobiles, whether received by cash or credit, regardless of when, where or through whom the order is received, including all revenue derived by Concessionaire arising out of or in connection with Concessionaire's operation at the Airport. The following items shall be excluded:

3.1.1 Charges to customers for refueling a vehicle when the customer is

obligated to return the vehicle with the same amount of fuel furnished;

3.1.2 Charges for collision damage waiver, personal accident insurance and personal effects coverage;

3.1.3 Refundable deposits except those forfeited and claimed by the

Concessionaire in lieu of rental charges;

3.1.4 Collections from customers or insurers for vehicle damage and repair;

3.1.5 Any federal, state or local taxes which are separately stated and collected by the Concessionaire; however, no deductions from gross receipts shall be allowed from taxes levied on concession activities, equipment or real or personal property of Concessionaire; and

3.1.6 Receipts from the sale of vehicles previously used in Concessionaire's

rental fleet.

3.2 PLACE OF PAYMENT. All fees and rentals shall be delivered to Lessor at: City of San Angelo Airport, 8618 Terminal Circle, Suite 101, San Angelo, Texas 76904, Attention: Airport Director.

3.3 LATE FEES. Concessionaire shall pay to Lessor a late fee as provided by

Chapter 1, Article 1.800, Section 1.802, and Appendix A, Article 10.00, Section 10.200 of the Code of Ordinances of the City of San Angelo, for any fee or rent not fully paid when due.

3.4 ABATEMENT OF MINIMUM ANNUAL GUARANTEE. As long as

Concessionaire is not in default of any of the terms and conditions of this Agreement, the minimum annual guarantee set forth above shall be abated on a monthly basis to the extent, in an amount, and for a term to be set by the Airport Advisory Board of the City of San Angelo at a meeting called for such purpose, if during the term hereof, through no fault of Concessionaire, either or both of the following conditions should occur:

3.4.1 The number of monthly passengers deplaning in a particular month on

scheduled airline flights at the Airport shall be less than seventy-five percent (75%) of the number of deplaning passengers as compared with

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the monthly average of deplaned passengers for that month in the preceding year, and/or

3.4.2 The business of Concessionaire authorized hereunder shall be affected by

shortage or other disruptions in the supply of automobiles, gasoline or other goods necessary for the operation of Concessionaire's business which results in a twenty-five percent (25%) or greater reduction in monthly gross receipts of Concessionaire hereunder as compared with the same month during the preceding calendar year.

3.5 BOOKS AND RECORDS. Concessionaire agrees that it will keep or cause to be

kept true, accurate and complete records of business conducted hereunder, and Concessionaire further agrees that Lessor shall have the right, through its duly authorized agents or representatives to examine all pertinent records at a reasonable time, for the purpose of auditing to determine the accuracy thereof.

4. SPECIAL CONDITIONS. This Agreement is entered into subject to the following

conditions which are accepted and agreed to by Concessionaire:

4.1 PREMISES

4.1.1 The demised premises have been examined by Concessionaire, and are accepted by Concessionaire “AS IS” and WITHOUT EXPRESS OR IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. Concessionaire is familiar with the demised premises and Airport facilities and deems them as suitable for the purpose for operating an automobile rental service.

4.1.2 The right to use the public Airport facilities is shared in common with

others, and shall be used subject to all laws, rules, and regulations of the United States, the State of Texas, and the City of San Angelo, now in existence or hereafter enacted.

4.1.3 The right to operate an automobile rental service on Airport premises

granted herein is non-exclusive. Lessor shall have the right to deal with and perfect arrangements with any other individual, company or corporation for engaging in like activity on Airport premises subject to substantially the same conditions and terms binding Concessionaire herein.

4.1.4 The premises demised to Concessionaire shall remain open for such

periods during each day and such days during each week as may be necessary to meet reasonable demands for said services. Concessionaire may install on the demised premises or at such other places as the parties may agree upon, a direct telephone line for the purpose of supplying automobile rental service to airport patrons during the periods when the airport terminal facilities are closed.

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4.1.5 Concessionaire shall permit the installation on its demised premises of the Airport public address system and the reception thereon of flight announcements and other information if Lessor deems such installation necessary.

4.2 RULES AND REGULATIONS

4.2.1 Concessionaire shall abide by and be subject to all laws and reasonable

rules and regulations which are now, or may from time to time be formulated by Lessor concerning management, operation or use of the Airport.

4.2.2 Concessionaire shall not discriminate against any employee or applicant

for employment because of race, color, creed, sex, age or national origin. Concessionaire agrees to take affirmative action to ensure that applicants are employed and that employees are tested during employment without regard to their race, creed, color, sex, age or national origin. Such action shall include but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship.

4.2.3 Concessionaire agrees to comply fully with the Americans with

Disabilities Act insofar as such act does not require construction or alteration of the premises.

4.2.4 Concessionaire shall prohibit its agents, servants, and employees from

engaging in the solicitation of its automobile rental services on or about the Airport in a loud, boisterous, offensive or objectionable manner. In the event of questionable conduct in such solicitation, the Airport Director shall be sole judge in determining if said conduct is a violation of this paragraph; and upon notice from the Airport Director, Concessionaire shall immediately take all steps necessary to eliminate the undesirable condition.

4.2.5 Concessionaire, its agents, servants and employees shall maintain a

friendly and cooperative, though competitive, relationship with other companies engaged in like business on said Airport. Concessionaire shall not engage in open public disputes, disagreements, or conflicts which would tend to deteriorate the quality of the automobile rental service of Concessionaire or its competitors or which would be incompatible with the best interest of the public at the Airport. Lessor shall have the right to resolve all such disputes, disagreements or conflicts, and its determination of or the manner in which Concessionaire shall thereafter operate shall be binding upon Concessionaire.

4.3 SERVICE

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4.3.1 Concessionaire shall furnish good, prompt and efficient service, adequate to meet all reasonable demands for automobile rental service at the Airport, on a fair and reasonable basis and charge prices for such services in accordance with automobile rental industry standards.

4.3.2 Concessionaire shall use its best efforts to develop and increase the

business of the rental of automobiles at the Airport and will not divert or cause or allow to be diverted any automobile rentals from its place of business at the Airport to any other location not at the Airport. Automobiles shall be deemed to be rented at the Airport and the rentals thereof included in gross revenues if the automobile is delivered to the customer at the Airport.

4.4 MAINTENANCE

4.4.1 Rental automobiles made available hereunder shall be maintained at

Concessionaire's sole expense, in good operative order, free from known mechanical defects, and in clean, neat and attractive condition, inside and outside.

4.4.2 Concessionaire shall, at its sole cost and expense, furnish, install, operate

and maintain the demised premises and every part thereof; and shall maintain the furnishings, fixtures and equipment installed therein in good safe and serviceable condition at leaset as well as the furnishings, fixtures and equipment installed in the non-exclusive areas made available to Concessionaire are maintained. Concessionaire shall repair all damages caused by its employees, guests or invitees, or that otherwise result from its operation of the automobile rental service. Concessionaire shall repaint the demised premises as necessary to maintain its current condition or as otherwise desirable, after obtaining prior approval of the Lessor.

4.4.3 Lessor shall be the sole judge of the quality of maintenance; and upon

written notice by Lessor to Concessionaire, Concessionaire shall perform whatever maintenance Lessor reasonably deems necessary. If said maintenance is not undertaken and pursued with due diligence by Concessionaire within ten (10) days after receipt of written notice, Lessor shall have the right to enter upon the demised premises and perform the necessary maintenance, the cost of which shall be assessed by Lessor as additional rent and borne by Concessionaire.

4.4.4 Upon termination of this Agreement, Concessionaire shall deliver the

demised premises in good order, condition and repair, reasonable wear and tear excepted.

4.4.5 Concessionaire shall provide and use suitable covered metal receptacles

for all garbage, trash or other refuse. Concessionaire shall not stack, store or keep boxes, cartons, barrels, or other similar items, in an unsightly or unsafe manner, on or about the demised premises, or permit the same.

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4.5 COSTS AND FEES

4.5.1 Concessionaire shall bear, at its own expense, all costs of operating the

concession and shall pay, in addition to rental, all other costs connected with the use of the demised premises and facilities, including but not limited to, maintenance, insurance, any and all taxes, all permit fees and license fees, and assessments lawfully levied or assessed upon the personal property and demised premises or structures and improvements situated thereon.

4.5.2 Concessionaire shall secure, at its own expense, all permits and licenses

required by law.

4.5.3 Concessionaire shall pay and discharge all taxes, general and special assessments, and other charges of every description which during the term of this Agreement may be levied on or assessed against the demised premises and all interest therein and all improvements and other property thereon, whether belonging to Lessor or Concessionaire, or to which either of them may become liable. Concessionaire shall pay all such taxes, charges and assessments to the public officer charged with the collection thereof not less than fifteen (15) days before the same shall become delinquent, and CONCESSIONAIRE AGREES TO INDEMNIFY AND SAVE HARMLESS LESSOR FROM ALL SUCH TAXES, CHARGES AND ASSESSMENTS.

4.6 OTHER SALES

4.6.1 Concessionaire shall not sell or dispense petroleum products, or perform

motor vehicle repair services or related services on the Leased Premises; provided however, upon sufficient or desirable space being deemed available as determined by Lessor, the parties may negotiate and execute a separate lease agreement pursuant to which Concessionaire may lease space or facilities on the Airport premises for dispensing of petroleum products and servicing vehicles owned or controlled by Concessionaire that are used in conjunction with the automobile rental concession granted hereunde.

4.6.2 Concessionaire shall neither install nor operate on the demised premises

vending machines or coin operated amusement machines or devices. Lessor specifically reserves the right to arrange for installation of such pay telephones as Concessionaire may require and to secure the income therefrom.

4.6.3 Insofar as permitted by law, Concessionaire may offer trip insurance

covering, accidental loss of life, accidental injury, medical expenses, or property damage, limited only to customers leasing Concessionaire's vehicles and excluding air travel insurance protection.

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4.6.4 Concessionaire shall not represent on the Airport premises in any fashion

any other automobile rental business, firm or affiliation. Specifically, Concessionaire shall not by advertisement, display, telephone number, telephone listing, contract, understanding or in any other manner represent itself as an agent, affiliate or representative on the Airport premises of another automobile rental business.

5. INSURANCE AND INDEMNIFICATION 5A. INSURANCE.

5.1 General Conditions. The following conditions shall apply to all insurance policies obtained by CONCESSIONAIRE for the purpose of complying with this Agreement.

5.1.1 Satisfactory Companies. Coverage shall be maintained with insurers and

under forms of policies satisfactory to City and with insurers licensed to do business in Texas.

5.1.2 Named Insureds. All insurance policies required herein shall be drawn in the

name of CONCESSIONAIRE, with City, its council members, board and commission members, officials, agents, guests, invitees, consultants and employees named as additional insureds, except on Workers’ Compensation coverage.

5.1.3 Waiver of Subrogation. CONCESSIONAIRE shall require its insurance carrier(s), with respect to all insurance policies, to waive all rights of subrogation against City, its council members, board and commission members, officials, agents, guests, invitees, consultants and employees. Lessor shall waive all claims against CONCESSIONAIRE for damages covered normally by Fire and Casualty damage insurance with standard extended coverage.

5.1.4 Certificates of Insurance. At or before the time of execution of this

Agreement, CONCESSIONAIRE shall furnish City’s Risk Manager with certificates of insurance as evidence that all of the policies required herein are in full force and effect and provide the required coverage and limits of insurance. All certificates of insurance shall clearly state that all applicable requirements have been satisfied. The certificates shall provide that any company issuing an insurance policy shall provide to City not less than thirty (30) days advance notice in writing of cancellation, non-renewal or material change in the policy of insurance. In addition, CONCESSIONAIRE and insurance company shall immediately provide written notice to City’s Risk Manager upon receipt of notice of cancellation of any insurance policy, or of a decision to terminate or alter any insurance policy. Copies of required endorsements will be attached to the certificates to confirm the required endorsements are in effect. Certificates of insurance and notices of cancellations, terminations or alterations shall be furnished to City’s Risk

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Manager at City Hall, 72 West College, San Angelo, Texas 76903.

5.1.5 CONCESSIONAIRE’S Liability. The procurement of such policy of insurance shall not be construed to be a limitation upon CONCESSIONAIRE’S liability or as a full performance on its part of the indemnification provisions of this Agreement. CONCESSIONAIRE’S obligations are, notwithstanding any policy of insurance, for the full and total amount of any damage, injury or loss caused by or attributable to its activities conducted at, about or upon the Premises. Failure of CONCESSIONAIRE to maintain adequate coverage shall not relieve CONCESSIONAIRE of any contractual responsibility or obligation.

5.1.6 Sub Contractors’ Insurance. CONCESSIONAIRE shall cause each Sub

Contractor of CONCESSIONAIRE to purchase and maintain insurance of the types and in the amounts specified below. CONCESSIONAIRE shall require Sub Contractors to furnish copies of certificates of insurance to Lessor’s Risk Management Department evidencing coverage for each Sub Contractor.

5.2 Types and Amounts of Insurance Required. CONCESSIONAIRE shall obtain and

continuously maintain in effect at all times during the term hereof, at CONCESSIONAIRE’S sole expense, insurance coverage as follows with limits not less than those set forth below:

5.2.1 Commercial General Liability or equivalent Aviation Liability. This policy

shall be an occurrence-type policy, and shall protect the CONCESSIONAIRE and additional insureds against all claims arising from bodily injury, sickness, disease or death of any person (other than the CONCESSIONAIRE’S employees) and damage to property of the City or others arising out of the act or omission of the CONCESSIONAIRE or its agents and employees. This policy shall also include protection against claims for the contractual liability assumed by CONCESSIONAIRE under the paragraph of this Agreement entitled “Indemnification,” including completed operations, products liability, contractual coverage, broad form property coverage, explosion, collapse, underground, premises/operations, and independent contractors (to remain in force for two years after final payment). Coverage shall not be less than:

$ 2,000,000.00 General Aggregate $ 1,000,000.00 Products- Completed Operations Aggregate $ 1,000,000.00 Personal & Advertising Injury $ 1,000,000.00 Each Occurrence $ 500,000.00 Fire Damage (any one fire)

5.2.2 Business Automobile Liability. This policy shall be written in

comprehensive form and shall protect CONCESSIONAIRE and the additional insureds against all claims for injuries to members of the public and damage to property of others arising from the use of motor vehicles and shall cover operation on and off the Premises of all motor vehicles licensed

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for highway use, whether they are owned, non-owned or hired. Coverage shall not be less than:

$ 1,000,000.00 Combined Single Limit

5.2.3 Workers’ Compensation and Employer’s Liability. If CONCESSIONAIRE

hires any employees, CONCESSIONAIRE shall maintain Workers’ Compensation and Employer’s Liability insurance, which shall protect the CONCESSIONAIRE against all claims under applicable state workers’ compensation laws and employer’s liability. The insured shall also be protected against claims for injury, disease or death of employees which, for any reason, may not fall within the provisions of a workers’ compensation law. Coverage shall not be less than:

Statutory Amount Workers’ Compensation $ 500.000.00 Employer’s Liability, Each Accident $ 500,000.00 Employer’s Liability, Disease - Policy

Limit $ 500,000.00 Employer’s Liability, Disease – Each

Employee

The foregoing requirement will not be applicable if, and so long as, CONCESSIONAIRE qualifies as a self-insurer under the rules and regulations of the commission or agency administering the workers’ compensation program in Texas and furnishes evidence of such qualification to Lessor in accordance with the notice provisions of this Agreement.

If CONCESSIONAIRE uses contract labor, CONCESSIONAIRE shall require its contractor to maintain the above referenced coverage and furnish copies of certificates of insurance as required herein.

5.2.4 Environmental Liability. This insurance shall be maintained in force for the full period of this Contract and cover losses caused by pollution conditions including, but not limited to, any spill, underground pollution or any other environmental impairment. It shall apply to bodily injury; property damage, including loss of use of damaged property or of property that has not been physically injured; cleanup costs; including, but not limited to, any costs required under CERCLA; and defense, including costs and expenses incurred in the investigation, defense, or settlement of claims. If coverage is written on a claims made basis, CONCESSIONAIRE warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this Contract, and continuous coverage will be maintained or an extended discovery period will be exercised for a period of two (2) years beginning from the time the Contract has expired. Coverage shall not be less than:

$1,000,000.00 per loss $2,000,000.00 Annual aggregate

5.B INDEMNIFICATION.

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CONCESSIONAIRE AGREES TO INDEMNIFY, DEFEND, REIMBURSE AND

HOLD CITY, ITS COUNCIL MEMBERS, BOARD AND COMMISSION MEMBERS, OFFICIALS, AGENTS, GUESTS, INVITEES, CONSULTANTS AND EMPLOYEES FREE AND HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, PROCEEDINGS, SUITS, JUDGMENTS, COSTS, PENALTIES, FINES, DAMAGES, LOSSES, ATTORNEYS’ FEES AND EXPENSES ASSERTED BY ANY PERSON OR PERSONS, INCLUDING AGENTS OR EMPLOYEES OF CONCESSIONAIRE OR CITY, BY REASON OF DEATH OR INJURY TO PERSONS, OR LOSS OR DAMAGE TO PROPERTY, RESULTING FROM OR ARISING OUT OF, THE VIOLATION OF ANY LAW OR REGULATION OR IN ANY MANNER ATTRIBUTABLE TO ANY ACT OF COMMISSION, OMISSION, NEGLIGENCE OR FAULT OF CONCESSIONAIRE, ITS AGENTS OR EMPLOYEES, OR THE JOINT NEGLIGENCE OF CONCESSIONAIRE AND ANY OTHER ENTITY, AS A CONSEQUENCE OF ITS EXECUTION OR PERFORMANCE OF THIS AGREEMENT OR SUSTAINED IN OR UPON THE PREMISES, OR AS A RESULT OF ANYTHING CLAIMED TO BE DONE OR ADMITTED TO BE DONE BY CONCESSIONAIRE HEREUNDER. THIS INDEMNIFICATION SHALL SURVIVE THE TERM OF THIS AGREEMENT AS LONG AS ANY LIABILITY COULD BE ASSERTED. NOTHING HEREIN SHALL REQUIRE CONCESSIONAIRE TO INDEMNIFY, DEFEND OR HOLD HARMLESS ANY INDEMNIFIED PARTY FOR THE INDEMNIFIED PARTY’S OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

6. DAMAGE OR DESTRUCTION OF PREMISES

6.1 If the demised premises are partially damaged by fire, explosion, the elements, public enemy, or other casualty, but not rendered untenantable, the same will be repaired with due diligence by Lessor at its own cost and expense.

6.2 If the damage shall be so extensive as to render such premises untenantable, but

capable of being repaired in thirty (30) days, the same shall be repaired with due diligence by Lessor at its own cost and expense and the rent payable herein shall be paid proportionately to the time of such damage and thereafter cease until such time as the premises are again tenantable.

6.3 In the event said premises are completely destroyed by fire, explosion, the

elements, public enemy or other casualty, or so damaged that they will remain untenantable for more than thirty (30) days, Lessor shall be under no obligation to repair and reconstruct the premises, and rent payable hereunder shall be paid proportionately to the time of such damage or destruction and shall thereafter cease until such time as the premises may be fully restored. If within twelve (12) months after the time of such damage or destruction said demised premises shall not have been repaired or reconstructed, Concessionaire may give Lessor written notice of its intention to terminate this Agreement effective from the date of such damage or destruction.

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7. TERMINATION OF AGREEMENT, CANCELLATION, ASSIGNMENT AND TRANSFER

7.1 TERMINATION. This Agreement shall terminate at the end of the full term or

any extension thereof, at which time Concessionaire shall have no further right or interest in any of the Premises, lands, areas, or improvements hereby demised, and the rights, privileges and license granted Concessionaire hereunder shall expire,

7.2 CANCELLATION BY CONCESSIONAIRE. This Agreement shall be subject to

cancellation by Concessionaire on the occurrence of one or more of the following events:

7.2.1 The permanent abandonment of the Airport as an air terminal;

7.2.2 The lawful assumption by the United States government or any authorized

agency thereof, of the operation, control, or use of the Airport, or any substantial part or parts thereof, in such a manner as to substantially restrict Concessionaire for a period of at least ninety (90) days from operation thereon;

7.2.3 Issuance, by any court of competent jurisdiction, of an injunction in any

way preventing or restraining the use of the Airport for commercial airline passenger travel for a period of at least ninety (90) days;

7.2.4 The default by Lessor in the performance of any covenant or agreement

herein required to be performed by Lessor and the failure of Lessor to remedy such default for a period of sixty (60) days after receipt from Concessionaire of written notice to remedy the same; or

7.2.5 The complete destruction of the demised premises as outlined in Article 6.

7.3 CANCELLATION BY LESSOR. This Agreement shall be subject to immediate

cancellation by Lessor in the event Concessionaire shall:

7.3.1 Be in arrears in the payment of the whole or any part of the amounts agreed upon in Article 3 for a period of seven (7) days after receipt of written notice from Lessor of such arrearage;

7.3.2 Abandon the demised premises by Concessionaire;

7.3.3 Default in the performance of any of the covenants and conditions

required herein (except rental payments) to be kept and performed by Concessionaire, and such default continues for a period of thirty (30) days after receipt of written notice from Lessor of said default; or

7.3.4 Be adjudged by Lessor of intent to deprive the Lessor of rental payments

due and payable under this Agreement or be guilty of repeated or

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continued violations of the covenants and conditions required herein to be kept and performed by Concessionaire.

7.4 RE-ENTRY BY LESSOR AND COVENANT NOT TO SUE. Upon termination

of this Agreement, Lessor may re-enter and take immediate possession of the demised premises and remove Concessionaire’s fixtures, equipment or effects, with or without process of law, without being deemed guilty of trespass. Lessor shall not be liable for any damages by reason of such re-entry or disposition of Concessionaire’s property. Concessionaire, on behalf of itself, its parents, subsidiaries, divisions, related companies, affiliated companies, licensees, independent contractors, assigns or other business related entities hereby unconditionally and irrevocably covenants to refrain from making any claim or demand or from commencing, causing, or permitting to be prosecuted any action in law or equity, against Lessor, or Lessor’s council members, board and commission members, officials, agents, contractors or employees relating directly or indirectly to Lessor’s re-entry upon the demised premises upon termination of this Agreement and Lessor’s taking possession of the demised premises as provided under this Part 7 “TERMINATION OF AGREEMENT, CANCELLATION, ASSIGNMENT AND TRANSFER”, to and including the removal and or disposal of Concessionaire’s personal property equipment and fixtures in Lessor’s discretion.

7.5 POSSESSION. Concessionaire agrees at the expiration or termination of this

Agreement to deliver possession peacefully to the Lessor or its agents or employees; and if it fails to give peaceful possession, Lessor may take forceful possession of demised premises and eject all parties therefrom without being guilty of trespass; all resulting damages are hereby waived by Concessionaire, and Concessionaire covenants not to claim or sue as hereinabove provided at subparagraph 7.4 “ENTRY BY LESSOR AND COVENANT NOT TO SUE”.

7.6 OTHER REMEDIES. Any termination of this Agreement arising from

Concessionaire's default shall not relieve Concessionaire from the payment of any sum or sums that are due and payable to Lessor under this Agreement, or any claim for damages then or thereafter accruing against Concessionaire under this Agreement. Any such termination shall not prevent Lessor from enforcing the payment of any such sum or sums or claim for damages by any remedy provided for by law or from recovering damages from Concessionaire for any default under this Agreement. All rights, options, and remedies of Lessor contained in this Agreement or otherwise shall be construed and held to be cumulative, and no one of them shall be exclusive of the other; and Lessor shall have the right to pursue any one or all of such remedies or any other remedy or relief which may be provided by law, whether or not stated in this Agreement. No waiver by Lessor of a breach of any of the covenants, conditions, or restrictions of this Agreement shall be construed or held to be a waiver of any succeeding or preceding breach of the same or any other covenant, condition or restriction contained in this Agreement.

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7.7 REMOVAL OF IMPROVEMENTS. All equipment, machinery, trade fixtures and other non-attached improvements installed on the demised premises by Concessionaire shall remain the property of Concessionaire and may be removed at the termination of this Agreement, provided Concessionaire is not then in default in the performance of any of its obligations or covenants herein contained, and provided further that such removal will do no damage to the realty upon which such items are situated. It is understood and agreed, however, that improvements shall be held by the Lessor until all rentals due Lessor by Concessionaire shall have been paid, and should any amount remain unpaid for more than thirty (30) days after termination of this Agreement, the Lessor shall have the right to sell such improvements and apply the proceeds to the amount due Lessor, with interest at the annual rate of ten percent (10%), and to any costs incident to the sale, and to pay the balance remaining, if any, to Concessionaire. All property remaining on the demised premises after the expiration of thirty (30) days following the termination of this Agreement, however terminated, shall be deemed abandoned by Concessionaire and shall become the property of Lessor.

7.8 ASSIGNMENT AND TRANSFER. Concessionaire shall not assign, transfer, or

sublease this Agreement or the rights or demised premises hereunder without the prior written approval of Lessor. Unless acknowledged and approved in writing by the Lessor, any change in the controlling interest of corporate stock ownership of Concessionaire or its parent company shall constitute grounds for immediate termination of this Agreement by Lessor.

8. COOPERATION UPON TERMINATION

8.1 Upon the termination of this Agreement, through passage of time or otherwise, Concessionaire shall facilitate Lessor in all reasonable ways in continuing the operation of said automobile rental service on the Airport without interruption.

8.2 Concessionaire further agrees to sell any or all of the Concessionaire’s furniture,

furnishings, fixtures and equipment installed or used upon said demised premises to Lessor should Lessor notify Concessionaire in writing ten (10) days before such termination date that it desires to purchase any or all of said furniture, furnishings, fixtures and equipment; and the purchase price shall be the fair market value of such items at the date of such termination. If the parties are unable to agree upon the fair market value, each party shall then appoint an appraiser; the two so appointed shall name a third appraiser; and the three appraisers so named shall determine the fair market value of such items, which determination shall be final and binding upon both parties hereto.

9. GENERAL PROVISIONS

9.1 CONFLICT BETWEEN CONCESSIONS. In the event of a conflict between Concessionaire and any other lessee or concessionaire in the Airport terminal building as to the services to be sold by respective concessionaires or lessees, Lessor shall decide which services may be sold by each concessionaire or lessee and Concessionaire agrees to be bound by such decision.

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9.2 INSPECTION. Lessor, by its officers, employees, agents and representatives,

shall have the right at all reasonable times to enter upon the demised premises for the purpose of inspecting same, for observing the performance by Concessionaire of its obligations hereunder, and for the doing of any act which Lessor may be obligated or have the right to do under this Agreement.

9.3 ATTORNEY'S FEES. In the event any action, suit or proceeding is brought to

collect the rentals and fees, (or any portion thereof) due or to become due hereunder; to take possession of said concession space; to enforce compliance with this Agreement; or for failure to observe any of the covenants of this Agreement, Concessionaire shall pay Lessor such sum as the court may adjudge reasonable for attorney's fees to be allowed in said suit, action or proceeding.

9.4 RELATIONSHIP OF PARTIES. It is understood and agreed that nothing herein

contained is intended or should be construed as creating or establishing a relationship of agency, co-partnership or joint venture between the parties hereto, or as appointing or designating the Concessionaire as the agent, representative or employee of the Lessor for any purpose or in any manner whatsoever. Concessionaire is to be and shall remain an independent contractor with respect to all services performed hereunder.

9.5 NO WAIVER. Failure of Lessor to insist in any instance upon a strict

performance by Concessionaire of any of the provisions or terms of this Agreement shall not be considered as a waiver or relinquishment thereof for the future. No waiver by Lessor of any of the provisions or terms of this Agreement shall be deemed to have been made in any instance unless expressed in the form of a resolution by the City Council.

9.6 QUIET ENJOYMENT. Lessor agrees that Concessionaire, upon payment of rent

and all other charges and upon observation of all of the terms and conditions of this Agreement, shall lawfully and quietly hold, occupy, and enjoy the demised premises during the full term of this Agreement without hindrance from Lessor or anyone claiming by, through or under Lessor, subject, however, to Concessionaire holding and enjoying said premises under conditions which may reasonably be anticipated in connection with the operation of aircraft or an airport.

9.7 INVALID OR ILLEGAL PROVISIONS. If any one or more provisions of this

Agreement are for any reason held to be invalid, illegal or unenforceable in any respect, the invalidity, illegality or unenforceability will not affect any other provision of the Agreement, which will be construed as if it had not included the invalid, illegal or unenforceable provision.

9.8 PARAGRAPH HEADINGS. The paragraph headings contained herein are for

convenience and reference and are not intended to define, extend or limit the scope of any provision of this Agreement.

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9.9 NOTICES. Any notice required or permitted under this Agreement shall be deemed sufficiently given if it is in writing and personally delivered, sent by overnight express delivery service or deposited in the United States mail, postage prepaid and sent by registered or certified mail (return receipt requested) to the party to which said notice is to be given. Notices delivered in person, or by overnight express delivery service, shall be deemed to be served effective as of the date the notice is delivered. Notices sent by registered or certified mail (return receipt requested) shall be deemed to be served seventy-two (72) hours after the date said notice is postmarked to the addressee, postage prepaid.

Until changed by written notice given by one party to the other, the addresses of the parties shall be as follows:

LESSOR: CITY OF SAN ANGELO

San Angelo Municipal Airport Attn: Airport Director 8618 Terminal Circle, Suite 101

San Angelo, Texas 76904 With copies to: City Attorney’s Office 72 W. College San Angelo, Texas 76903

CONCESSIONAIRE: WAYNE BURTON dba HERTZ RENT-A-CAR

Attn: Wayne Burton 8618 Terminal Circle, Ste. 102 San Angelo, Texas 76904

9.10 SUBORDINATION. This Agreement shall be subordinate to the provisions of

any existing or future agreement between Lessor and the United States relative to the operation or maintenance of the Airport.

9.11 SUCCESSORS AND ASSIGNS. All of the terms, covenants and agreements

herein contained shall be binding upon and shall inure to the benefit of successors and assigns, provided Concessionaire has previously received written approval from Lessor in accordance with Paragraph 7.8 herein, to assign, transfer or sublease its rights and demised premises.

9.12 AMENDMENT. No amendment, modification or alteration of the terms hereof

shall be binding unless the same be in writing, dated subsequent to the date hereof and duly executed by the parties hereto or their respective successors or legal representatives.

9.13 VENUE. This Agreement is governed by the laws of the State of Texas. Venue for

any suit or claim or cause of action arising out of or related to this Agreement shall be in Tom Green County, Texas.

9.14 SURVIVAL OF REMEDIES. The provisions relating to keeping of books and

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records, audit by Lessor, insurance, indemnity, hold harmless, re-entry by Lessor, cooperation of Concessionaire upon termination and applicable law and venue shall survive the expiration or termination of this Agreement to the extent needed to enable the Parties to pursue the remedies and benefits provided for in those provisions.

9.15 ENTIRE AGREEMENT. This Agreement constitutes and contains the entire

agreement between the parties hereto. Any oral representations or modifications hereinbefore or hereinafter made concerning this Agreement shall be of no force and effect, provided however, that this Agreement may be amended by the parties

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as provided herein. EXECUTED in duplicate originals on this the ____ day of _____________, 2013.

LESSOR CITY OF SAN ANGELO, Texas

ATTEST: By: _______________________________

Daniel Valenzuela, City Manager _____________________________ Alicia Ramirez, City Clerk THE STATE OF TEXAS § COUNTY OF TOM GREEN § This instrument was acknowledged before me on the ______ day of _______________, 2013, by DANIEL VALENZUELA, City Manager of the CITY OF SAN ANGELO, a Texas home rule municipal corporation, on behalf of said corporation.

___________________________________ Notary Public, State of Texas

CONCESSIONAIRE / LESSEE: WAYNE BURTON dba HERTZ RENT-A-CAR

By: ______________________________

Wayne Burton THE STATE OF TEXAS § COUNTY OF TOM GREEN § This instrument was acknowledged before me on the ______ day of ____________, 2012, by Wayne Burton.

__________________________________ Notary Public, State of Texas

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Approved as to Content Approved as to Form ___________________________ __________________________________ Luis Elguezabal, Airport Director Dan T. Saluri, Sr. Assistant City Attorney

City of San Angelo

Memo Date: July 30, 2013


From: Tina Bunnell, CPA, Finance Director


Contact: Jaime Guerrero, Accounting, 325-481-2649 ext 1230

Caption: Consent Item

Consideration of adopting Resolution amending authorized representatives for Texpool, an Investment Service for Public Funds.

Summary: Texpool requires the attached resolution to amend authorized representatives. The City of San Angelo is adding Tina Bunnell, CPA, Finance Director and Jaime A. Guerrero, Chief Accountant to the list of authorized representatives.

History: Both employees are new to the City of San Angelo and will serve as additional contact members for TexPool.

Financial Impact: Texpool, an Investment Service for Public Funds, is utilized as an account for the City’s reserve cash and interest bearing investment account, which is a substantial portion of the City’s current assets.

Related Vision Item

(if applicable):

Not Applicable.


Staff recommends that the resolution be approved.

Attachments: Texpool resolution

Presentation: Not Applicable.

Publication: Not Applicable.


Michael Dane, CFO

Approved by Legal:

City of San Angelo



From: Ricky Dickson, Water Utilities Director

Subject: Consent Item for August 20, 2013 Council Meeting

Contact: Ricky Dickson, Water Utilities Director, 657-4209

Caption: Consideration of approving Special Recreational Lease Agreement with Lee H. Bell and Karen H. Bell for 0.117 acres of land located adjacent to the lake or river and authorizing the City Manager or Water Utilities Director to execute the same.

Summary: Lee M. Bell and Karen H. Bell are current tenants under former lease and desire to enter into a new Special Recreational Lease agreement. Financial Impact: Lease fee will be $257.00 per year as computed on Exhibit B (attached). Related Vision Item (if applicable): None. Other Information/Recommendation: It is recommended that the lease be approved and the Water Utilities Director or City Manager be authorized to execute the lease. Staff recommends approval. Attachments: Lease Agreement and Exhibit A and B Presentation: None. Publication: None. Reviewed by Service Area Director: Ricky Dickson, Water Utilities Director, July 15, 2013 Reviewed by City Attorney:

Special Recreational Lease Agreement

Basic Terms

Date:

Landlord: City of San Angelo, a Texas home rule municipal corporation

Landlord’s Address: 72 W. College Avenue, San Angelo, Tom Green County, Texas 76903

Tenant: Lee M. Bell and wife, Karen H. Bell

Tenant’s Address: 3613 Country Club Road, San Angelo, Texas 76904

Leased Premises: SURFACE ESTATE ONLY of approximately 0.117 acres of land, situated in San Angelo, Tom Green County, Texas, as described in Exhibit “A” (“Leased Premises”) attached hereto and being made a part hereof, at or near the waters of Lake Nasworthy (hereinafter “Lake”).

Term: Five (5) years and five (5) months Commencement Date: August 1, 2013

Termination Date: December 31, 2018

Permitted Use: Solely for Recreational Use

Initial Payment: Initial Rent Payment due and payable on execution of this Lease, is the sum of Two Hundred Thirty-Four Dollars ($234.00), which includes: (a) Seventy-five Dollars ($75.00) – one time Granting Fee; (b) One Hundred Dollars ($100.00) – document preparation fee; (c) One Hundred Seven ($107.00) – 2013 pro-rated Annual Rent; and (d) credit of Forty Three Dollars ($43.00) – reimbursement for pre-paid Annual Rent.

Annual Rent: Annual Rent shall be Two Hundred Fifty-Seven Dollars ($257.00), paid on or before January 1st of each year, during the term of this Lease, as computed on Exhibit “B” attached hereto and incorporated by reference.

Clauses and Covenants

A. Tenant agrees to—

1. Lease the Premises for the entire Term beginning on the Commencement Date and ending on the Termination Date.

2. Obey all laws, ordinances, rules and regulations relating to Tenant’s use and maintenance of the Leased Premises, including those certain ordinances of the City

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Council of the City of San Angelo, (“Council”), adopted April 2, 1951, as amended from time to time and known as the Lake Nasworthy-Twin Buttes Ordinances. Tenant understands and agrees that this Lease Agreement does not exempt Tenant from application of any of the ordinances, rules and regulations now or hereafter applicable to Lake Nasworthy. Any breach of said ordinances, rules or regulations shall be deemed a default of this Lease Agreement, and, at the option of the Landlord, may result in termination of this Lease.

3. Pay in advance the Initial Rent Payment, and on or before January 1st of each year during the term of this Lease, the Annual Rent to Landlord at Landlord’s Address, 72 W. College, San Angelo, Texas 76903.

4. Pay to Landlord a late charge or interest for any rent received by Landlord after the date that the rent is due in accordance with applicable ordinances, provided however, that acceptance by Landlord of late charges or interest shall not be construed as a waiver of the right of Landlord to terminate this Lease at its option as authorized herein.

5. Pay all taxes on Tenant’s property located on the Leased Premises.

6. Use the Leased Premises for recreational use only and uses incidental thereto.

7. At Tenant’s sole expense, keep and maintain fences and other improvements now on the Leased Premises in good condition, maintain landscape, and keep said Premises clean and cleared of all objectionable matter, including accumulations of trash, personal property, brush, and accumulations of dead vegetation. In the event Tenant shall fail to maintain Leased Premises in a manner acceptable to Landlord as herein required, after notice of default to Tenant, Landlord may enter upon the Leased Premises without further notice and cause Leased Premises to be cleaned, cleared, and mowed, and may dispose of all objectionable matter in the manner deemed appropriate by Landlord. Tenant expressly authorizes the cost of any such clearing, cleaning, mowing and disposal to be billed to Tenant separately rent or added to the next Annual Rent payment due, interest at the ten percent (10%) per annum, beginning thirty (30) days from the date on which the work was completed, and continuing until such cost is paid in full.

8. Maintain the pecan trees on Leased Premises. Pecans produced from said trees shall be the property of Tenant during the term of this Lease.

9. Indemnify, Defend, and Hold Harmless Landlord as follows: TENANT FURTHER AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS LANDLORD, ITS OFFICERS, OFFICIALS, COUNCIL AND BOARD OR COMMISSION MEMBERS, AGENTS, AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, SUITS, JUDGMENTS, DAMAGES, LOSSES, PENALTIES, FINES, ATTORNEYS’ FEES, COSTS AND EXPENSES ASSERTED BY ANY PERSON OR PERSON, INCLUDING AGENTS OR EMPLOYEES OF TENANT OR LANDLORD, BY REASON OF DEATH OR INJURY TO PERSONS, OR LOSS OR DAMAGE TO PROPERTY, RESULTING FROM OR RELATED TO TENANT’S OCCUPATION OR CONTROL OVER THE LEASED PREMISES, OR SUSTAINED IN OR UPON THE LEASED PREMISES, OR AS A RESULT OF ANYTHING CLAIMED TO BE DONE OR ADMITTED TO BE DONE BY TENANT.

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THIS INDEMNIFICATION, DEFEND AND HOLD HARMLESS AGREEMENT SHALL SURVIVE THE TERM OF THIS AGREEMENT AS LONG AS ANY LIABILITY COULD BE ASSERTED. NOTHING HEREIN SHALL REQUIRE THE INDEMNIFYING PARTY TO INDEMNIFY, DEFEND OR HOLD HARMLESS ANY INDEMNIFIED PARTY FOR THE INDEMNIFIED PARTY’S OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

10. Maintain Insurance as follows:

a. Tenant shall obtain and maintain continuously in effect at all times during the term hereof, at Tenant’s sole expense, minimum comprehensive general liability insurance in the amount of at least $100,000.00 combined single limit liability per occurrence for bodily injury and property damage. This insurance shall be an occurrence-type policy written in comprehensive form and shall protect Landlord against liability which may accrue against Landlord by reason of Tenant’s occupancy or control over the Leased Premises, or wrongful conduct incident to the use thereof, resulting from any accident or event occurring on or about the Leased Premises. All insurance policies required herein shall be drawn in the name of Tenant, with Landlord, its council members, officials, officers, directors, agents and employees named as additional insureds.

b. Tenant shall furnish Landlord with certificates of insurance as evidence that all of the policies required herein are in full force and effect and provide the required coverages and limits of insurance. The certificates shall provide that any company issuing an insurance policy shall provide not less than 30-days advance notice in writing of cancellation, non-renewal or material change in the policy of insurance. In addition, Tenant shall immediately provide written notice to Landlord upon receipt of notice of cancellation of an insurance policy, or of a decision to terminate or alter any insurance policy. All certificates of insurance shall clearly state that all applicable requirements have been satisfied including certification that the policies are of the “occurrence” type. Certificates of insurance for Landlord shall be mailed in accordance with the notice provisions of this Lease Agreement.

c. Tenant shall require its insurance carrier, with respect to all insurance policies, to waive all rights of subrogation against the City of San Angelo, its council members, members of boards and commissions officers, officials, agents and employees.

d. The procuring of such policies of insurance shall not be construed to be a limitation upon Tenant’s liability or as a full performance of its obligations under the indemnification provisions of this Lease. Tenant’s obligations are, notwithstanding said policies of insurance, for the full and total amount of any damage, injury or loss caused by or attributable to its occupation or control over the Leased Premises pursuant to this Lease or any extension thereof.

11. Vacate the Leased Premises on the last day of the Term.

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B. Tenant agrees not to—

1. Use the Leased Premises for any purpose other than the Permitted Use, including that:

a. No improvements or construction work, including but not limited to living quarters, buildings, pump houses, water wells, storage buildings, excavations, fills, or other types of structures or improvements shall be built or placed on the Leased Premises.

b. No storage of personal property shall be permitted on the Leased Premises, including equipment, machinery, vehicles, appliances, temporary electrical wiring, materials, or supplies.

2. Create or allow any nuisance or waste on Leased Premises.

3. Alter the Leased Premises, including:

a. Clearing new roads, or locating on Leased Premises any type of manufactured housing or mobile home.

b. Removing any trees from Leased Premises without first obtaining permission from Landlord.

4. Allow a lien to be placed on the Leased Premises.

5. Assign this Lease or sublease any portion of the Leased Premises without Landlord’s written consent. 6. Hunt on the Leased Premises or allow anyone else to do so.

7. Litter or leave trash or debris on the Leased Premises.

C. Landlord agrees to—

Lease to Tenant the Leased Premises beginning on the Commencement Date and ending on the Termination Date unless earlier terminated as herein provided, subject to: easements of record, Landlord’s reservation of right to execute and deliver mineral leases, and Landlord’s reservation of right to grant utility easements and rights-of way for streets and alleys, and further subject to Tenant’s compliance with the terms and conditions of this Lease.

D. Landlord agrees not to—

Allow any use of the Leased Premises inconsistent with Tenant’s Permitted Use, subject to the reservations of rights herein stated, and so long as Tenant is not in default.

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E. Landlord and Tenant mutually agree to the following:

1. Rent Adjustment. Landlord and Tenant agree Landlord shall have the right to make an adjustment in the Annual Rent upon any extension or renewal of this Lease.

2. Temporary Improvements. Tenant may place temporary improvements on Leased Premises only with the prior, written approval of Landlord. Such improvements shall be for purposes of recreation only. Temporary improvements for other purposes are prohibited. Nothing shall be constructed, placed, or planted on Leased Premises which will in any way obstruct the natural flow of drainage or of rising water. Temporary improvements shall not include walls or be more than ten (10) feet in height. Tenant shall secure any required permits prior to placement of any temporary improvement on the Leased Premises. Temporary improvements shall be constructed in compliance with all applicable codes, laws, rules or regulation.

3. Water Usage. Tenant, may, upon receipt of an annual water use permit from Landlord, as provided in City of San Angelo Code of Ordinances, use water from the Lake or river, , for domestic purpose and watering of existing trees and shrubs, but no water is to be removed from or transported off Leased Premises. Use of water for irrigation is expressly prohibited. Tenant shall use water in a conservative manner taking any drought conditions into consideration. Any abusive use of water shall be grounds for Landlord in denying the use of water to Tenant. Tenant shall pay raw water use charges as set by Landlord.

4. Conditional Grant of Lease. This Special Recreational Lease Agreement is granted to Tenant under the condition that Tenant is the owner or Leaseholder of real property adjacent to Leased Premises. Should Tenant not be or cease to be the owner or Leaseholder of real property adjacent to Leased Premises, this Lease shall automatically terminate, and Landlord shall not be liable for refunding to Tenant any prepaid Annual Rent or other lease fees.

5. Flooding or Other Water Damage or Destruction. The parties hereto acknowledge that the Leased Premises are within an area subject to flooding and variations in Lake water level. It is expressly agreed between the parties that neither Landlord nor any of its officers, officials, council members, agents or employees shall be liable to Tenant for any damages caused in any manner, negligent or otherwise, by water, flooding, water run-off variation in level of Lake waters, or overflow of the rivers, creeks, or channels which serve as sources of water supply to the Lake, nor by reason of any work or maintenance by Landlord, deemed necessary or desirable in Landlord’s sole judgment, for the maintenance of said Lake, Lake level, or its sources of water supply. Any such damages that may be occasioned thereby during the term of this Lease Agreement or any extension thereof are hereby waived by Tenant, and Tenant does hereby forever release and discharge Landlord from liability for any such loss or claim of loss.

6. Release of Claims. Tenant expressly releases Landlord, its officials, officers, agents, and employees from any and all claims and damages of any kind whatsoever by

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reason of the condition of Leased Premises, or any improvements thereon, or any damages or loss incurred by Tenant relating to Tenant’s use of the Leased Premises or exercise of the privileges granted hereunder.

7. Reservations. Landlord reserve the privilege and right for itself and its assignees, to execute and deliver oil, gas and other mineral Leases upon the Leased Premises, right-of-way easements for gas, oil, water, or wastewater pipelines, sewer mains, telephone, telegraph or electric pole transmission lines, or other utility easements, and right-of-ways for streets or alleys, on, under, over or across said Leased Premises, or any part thereof, and in such event this Lease shall be subject and subordinate to the rights, terms and privileges of any such mineral Leases, utility easements or street and alley right-of-ways.

8. Termination of Lease for Public Purposes. If Landlord shall deem that Leased Premises are required for any public purpose during the term of this Lease, Landlord shall have the right to terminate this Lease by giving ninety (90) days written notice to Tenant of Landlord’s election to terminate the Lease. Tenant shall promptly deliver possession of Leased Premises to Landlord on the effective date of termination.

9. No Encumbrances. Tenant shall not have the right to encumber the Leased Premises.

10. Transfer, Assignment and Subletting. Tenant may not transfer, assign or sublet the Leased Premises, in whole or in part, without the prior written consent of the Landlord, which consent may be withheld in the sole discretion of Landlord.

11. Debts Related to Leased Premises.

a. Utilities: Any utility charges relating to Tenant’s occupancy, control or use of the Leased Premises shall be paid in full by Tenant when due. Failure to timely pay such charges shall, at the option of Landlord, result in termination of this Lease.

b. Taxes: It is further understood and agreed that Tenant shall pay and discharge all taxes, general and special assessments, and other charges of every description which during the term of this Lease may be levied on or assessed against the Leased Premises and all interest therein and all improvements and other property thereon, whether belonging to Landlord or Tenant, or to which either of them may become liable. Tenant shall pay all such taxes, charges, and assessments to the public officer charged with the collection thereof not less than fifteen (15) days before the same shall become delinquent, and Tenant agrees to indemnify and save harmless Landlord from all such taxes, charges and assessments. Failure to pay such taxes and special assessments as provided herein shall, at the option of Landlord, result in termination of this Lease.

12. Default by Tenant/Events.

a. failing to timely pay Annual Rent; or,

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b. failing to comply within thirty (30) days after written notice with any

provision of this Lease Agreement other than failing to timely pay Annual Rent.

13. Default by Tenant/Landlord’s Remedies. Landlord’s remedy for Tenant’s default, after compliance with the notice provisions hereof, is to terminate this Lease Agreement by written notice, take possession of the Leased Premises, and seek judicial relief for costs, rents due and such other damages or relief to which Landlord may be entitled. Landlord may enter and take physical possession and control over the Leased Premises on termination of this Lease by self-help, and may prohibit the Tenant in default or any other person who may be occupying the Leased Premises, from access thereto or the use thereof, and shall not be liable in trespass or for damages therefore.

14. Default/Waiver/Mitigation. It is not a waiver of default if the Landlord fails to declare immediately a default or delays in taking any action. Pursuit of any remedy set forth in this Lease does not preclude pursuit of other remedies under this Lease or provided by law.

15. Reimbursement of Landlord’s Expenses. Tenant shall pay on demand all of Landlord’s expenses including, but not limited to, attorney’s fees and court costs incurred in enforcing any of Tenant’s obligations under this Lease, which include, but are not limited to, collection of Annual Rent.

16. Amendment of Lease. This Lease may be amended only by an instrument in writing signed by Landlord and Tenant.

17. Disclaimer of Warranties. ALL WARRANTIES OF LANDLORD THAT MAY ARISE IN COMMON LAW ARE EXCLUDED LANDLORD GIVES NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE CONDITION OF THE LEASED PREMISES OR ANY IMPROVEMENTS THEREON, INCLUDING WARRANTY OF HABITABILITY OR FITNESS FOR A PARTICULAR USE. THERE ARE NO IMPLIED WARRANTIES OF MERCHANTABILITY, OF FITNESS FOR A PARTICULAR PURPOSE, OR OF ANY OTHER KIND ARISING OUT OF THIS LEASE AGREEMENT, AND THERE ARE NO WARRANTIES THAT EXTEND BEYOND THOSE EXPRESSLY STATED IN THIS LEASE.

18. Notices. Any notice required or permitted under this Lease must be in writing and delivered to the address for the recipient party. Any notice required by this Lease will be deemed to be delivered (whether actually received or not) on the third day after deposited with the United States Postal Service, postage prepaid, certified mail, return receipt requested, and addressed to the intended recipient at the address below. Notice may also be given by personal delivery or commercial courier delivery and will be effective when actually received. Any address for notice may be changed by written notice delivered to the other party as provided herein.

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LANDLORD TENANT City of San Angelo Lee M. Bell and Karen H. Bell Real Estate Division 3613 Country Club Road 72 W. College Ave. San Angelo, Texas 76904 San Angelo, Texas 76903 With copies to: Office of the City Attorney

72 W. College Ave. San Angelo, Texas 76903

19. Entire Agreement. This Lease Agreement constitutes the entire agreement of the parties concerning the lease of the Premises by Landlord to Tenant. There are no representations, warranties, agreements, or promises pertaining to the lease of the Leased Premises by Landlord to Tenant that are not in this Lease Agreement.

[Signature Page to Follow]

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EXECUTED in duplicate originals the day of , 2013.

TENANTS:

LEE M. BELL and KAREN H. BELL Lee M. Bell Karen H. Bell LANDLORD:

Attest: CITY OF SAN ANGELO

By: Alicia Ramirez, City Clerk Daniel Valenzuela, City Manager STATE OF TEXAS § COUNTY OF TOM GREEN § This instrument was acknowledged before me on the day of , 2013, by Lee M. Bell and Karen H. Bell. Notary Public, State of Texas STATE OF TEXAS § COUNTY OF TOM GREEN § This instrument was acknowledged before me on the day of , 2013, by Daniel Valenzuela, as City Manager of the City of San Angelo, a Texas municipal corporation, on behalf of said corporation. Notary Public, State of Texas

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Insurance Addendum to Lease Lease

Date:

Landlord: City of San Angelo, a home rule municipal corporation

Tenants: Lee H. Bell and Karen M. Bell

This insurance addendum is part of the Lease.

Tenant agrees to—

1. Maintain the liability insurance policies required below (mark applicable boxes) during the Term and any period before or after the Term when Tenant is present on the Leased Premises:

Type of Insurance Minimum Policy Limit

Homeowners Liability Per occurrence: $100,000.00

Aggregate: $100,000.00

2. Comply with the following additional insurance requirements:

a. All liability policies must be endorsed to name Landlord as an “additional insured” on a form that does not exclude coverage for the sole or contributory ordinary negligence of Landlord and must not be endorsed to exclude the sole negligence of Landlord from the definition of “insured contract.”

b. Certificates of insurance and copies of any additional insured and waiver of subrogation endorsements must be delivered by Tenant to Landlord before entering the Leased Premises and thereafter at least ten days before the expiration of the policies.

[End of Insurance Addendum]

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City of San Angelo

Memo

Meeting Date: August 20, 2013

To: City Council members

From: Jeff Hintz, Interim Senior Planner

Subject: Smith Boulevard, right-of-way property dedication on the

following property:

Location: 11,341 square feet of a 15.6 acre tract in the J. Pointevent Survey

owned by Howard College and located approximately 640 feet south from the intersection of Smith Boulevard and Paulann Boulevard, in northeastern San Angelo.

Contacts: Jeff Hintz, Interim Senior Planner - and- 657-4210

AJ Fawver, Interim Director of Development Services -and- Bob Schneeman, Interim Director of Economic Development

Caption: A RESOLUTION AUTHORIZING THE ACCEPTANCE OF

11,341 SQUARE FEET OF RIGHT-OF-WAY FOR SMITH BOULEVARD IN NORTHEAST SAN ANGELO, AND PROVIDING FOR THE CITY MANAGER TO EXECUTE AND DELIVER A LEGAL INSTRUMENT FORMALLY ACCEPTING SAID RIGHT-OF-WAY.

Summary: The City Council may:

1. Approve the proposed dedication; or

2. Deny the proposed dedication.

Recommendation: City staff recommends approving, the dedication of right-of-

way.

History and Background:

In May of 2012 a Planned Development was presented to the Planning Commission and approved. After some discussion at City Council, Council discussed their concerns about having Smith Boulevard bisecting the campus, similar to that of Johnson Street at Angelo State. As a result, staff worked with Howard College, Parkhill Smith & Cooper, TxDOT, and other parties to identify alternative ways to route traffic in this area. COSADC, and later, City Council, approved the proposal of improving a segment of Smith Boulevard from PaulAnn Boulevard to the edge of the campus, at which point it would terminate into internal parking lots that are planned for the area. A corresponding amendment to the Thoroughfare Plan was then drafted and approved by both Planning Commission the MPO Policy Board, and Council. This amendment eliminated Smith Boulevard between McGill Boulevard and Howard College's northern most property boundary. In September of 2012, Howard College had proposed a new site plan as part of a Planned Development zoning change; this new site plan incorporated a new orientation for buildings on the campus and also included utilizing the abandoned segments of Smith Boulevard into the campus master development plan.

Basis for Recommendation

When a majority of Smith Boulevard was abandoned in this area, it left a segment coming south from Paulann Boulevard to provide access to Howard College, and other properties in the area. Funding for improvement of this segment was approved at the August 6, 2013 Council Meeting. The dedication sought here would not be subject to this funded improvement by COSADC; rather, the portion to be dedicated here is required as a part of the subdivision ordinance and by the International Fire Code. The City's Subdivision Ordinance mirrors Appendix D of the 2009 International Fire Code and requires that dead ends over 150 feet have an approved Fire Apparatus turnaround, that is publicly dedicated. In no instance shall a dead end exceed over 750 feet, even with an approved turnaround at the end. This is found in the Subdivision Ordinance, Chapter 9, Section III.C Titled "Dead End Streets" which discusses design policies and requirements of these dead ends. In the case here with Howard College, the dead end will be approximately 675 feet long including the turnaround (or traffic circle/roundabout). The unique thing about this turnaround, is that it will also be used as a traffic circle/roundabout for entrance into the campus. As part of the site plan for Howard College recently submitted for permitting (which includes a student center and classroom building, shown in blue on the attached master plan) they have chosen a roundabout that will satisfy the requirements of the Fire Code and Subdivision Ordinance (other choices include "T" type hammerhead turnarounds or "Y" type turnarounds. Aesthetically and functionally, a traffic circle/cu-de-sac will much better suit the needs of the campus and the area.

However, within the Subdivision Ordinance, there is also a provision that exempts a plat from being required. That was the case here, the property was over 5 acres is size and no extensions of public utility mains (water and sewer) were required. As such, a plat of the property that would go before Planning Commission was not required. Ordinarily, public right-of-way dedications for streets and alleyways also occurs on these plat documents which do not go before City Council. This right-of-way dedication is required to satisfy the provisions of the Subdivision Ordinance and International Fire Code the City of San Angelo has adopted at this time. The current right-of-way width for the portion of Smith Boulevard that has not been abandoned is simply not wide enough to accommodate the width that is required for this traffic circle/roundabout; as such additional right-of-way must be accepted for this to take place. It is important to ensure that this right-of-way for the traffic circle is publicly dedicated so it remains in the public's control and can never be built upon. This dedication guarantees that the traffic circle will always be open to the public. Once constructed, the city will assume responsibility of the maintenance of it. Howard College presented staff with a draft document that will transfer the traffic circle ad public right-of-way that is included as a draft in the attachment section of this report. The traffic circle will be built to City Street standard specifications and details and will be no different than a street anywhere else in town. When Smith Boulevard was abandoned, the public relinquished access and the City relinquished maintenance of approximately 76,000 square feet of right-of-way. This dedication required for the traffic circle/roundabout is a little over 11,000 square feet. As such, the city will still be maintaining much less right-of-way than before Smith Boulevard was abandoned in September of 2012.

Attachments: detailed survey of the area to be dedicated;

aerial photo of Smith Boulevard through Howard

College; approved master campus plan as part of PD 12-03

Ordinance; minutes from City Council discussing abandonment of

Smith Boulevard through Howard College and discussion of the updated site plan as a part of PD 12-03 approval;

draft dedication deed; and draft resolution.

Presentation: Jeff Hintz, Interim Senior Planner

Minutes

Vol. 103 September 4, 2012

Motion, to introduce an Ordinance repealing and an Ordinance designating Time Clock Drive, as presented, was

made by Councilmember Silvas and seconded by Councilmember Morrison.

Fire Chief Brian Dunn expressed his concerns regarding public safety response time as a result of changing

names of streets and related 911 issues.

A vote was taken on the motion on the floor. Motion carried unanimously.

Councilmember Adams arrived to the meeting at 9:39 A.M.

FIRST PUBLIC HEARING AND INTRODUCTION OF AN ORDINANCE AUTHORIZING

ABANDONMENT OF PUBLIC RIGHT-OF-WAY FOR SMITH BOULEVARD EXTENDING

APPROXIMATELY 1000 FEET NORTHWARD FROM THE INTERSECTION OF SMITH BOULEVARD

AND MCGILL BOULEVARD IN NORTHEASTERN SAN ANGELO

AN ORDINANCE PROVIDING FOR THE ABANDONMENT AND CLOSING OF THE FOLLOWING

STREET SEGMENT, TO WIT: An approximately 80’ wide portion of the unimproved public right-of-way for

Smith Boulevard, extending approximately 1000’ northward from McGill Boulevard, immediately adjacent to

property owned by Howard College in northeast San Angelo; AUTHORIZING THE CONVEYANCE

THEREOF TO THE ABUTTING PROPERTY OWNERS; PROVIDING FOR THE TERMS AND

CONDITIONS OF ABANDONMENT AND CONVEYANCE; AND PROVIDING FOR THE MAYOR TO

EXECUTE AND DELIVER A QUIT CLAIM DEED TO THE ABUTTING PROPERTY OWNERS

Planning Manager AJ Fawver presented background information. A copy of the presentation is part of the

Permanent Supplemental Minute record.

Motion, to introduce the Ordinance, as presented, was made by Councilmember Morrison and seconded by

Councilmember Adams. Motion carried unanimously.

FIRST PUBLIC HEARING AND INTRODUCTION OF AN ORDINANCE AMENDING CHAPTER 12,

EXHIBIT “A” (ZONING ORDINANCE) OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO

Z 12-03: Howard College Campus

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY

OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING

REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A

COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE

FOLLOWING PROPERTY, TO WIT: 3501 North US Highway 67, encompassing the area known as the

Howard College, more specifically, being 33.802 acres out of the J. Pointevent Survey 1113, Abstract 4873, and

Paulann Park Addition, Section 3, Tract H, being 0.76 acre, and Paulann Park Addition, Section 3, Tract G,

being the northwestern 0.145 acre, in northeast San Angelo, a zone change from a combination of General

Commercial (CG) and Light Manufacturing (ML) to Planned Development (PD) District; PROVIDING FOR

SEVERABILITY AND PROVIDING A PENALTY

Planning Manager AJ Fawver presented background information. A copy of the presentation is part of the

Permanent Supplemental Minute record.

Motion, to introduce the Ordinance, as presented, was made by Councilmember Morrison and seconded by

Councilmember Hirschfeld. Motion carried unanimously.

FIRST PUBLIC HEARING AND INTRODUCTION OF AN ORDINANCE AMENDING CHAPTER 12,

EXHIBIT “A” (ZONING ORDINANCE) OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO

Z 12-10: GBT Realty

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY

OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING

Notice of Confidentiality Rights: If you are a natural person, you may remove or strike any of the following

information from this instrument before it is filed for record in the public records: your Social Security

Number or your driver’s License Number.

SPECIAL DEDICATION DEED

THE STATE OF TEXAS COUNTY OF TOM GREEN KNOW ALL MEN BY THESE PRESENTS:

WHEREAS, The Howard College at San Angelo Foundation, hereinafter called “Grantor”, is

the owner of a certain tract of land lying and being situated in San Angelo, Tom Green County,

Texas, and Grantor desires to construct a street access and turn around to provide dedicated

public access to Grantor’s adjoining real property necessary for Grantor’s development of the

adjoining real property; and,

WHEREAS, Grantor covenants to complete, at Grantor’s sole expense, a street access and

turn around for public, motor vehicle access to Grantor’s adjoining property, to specifications

approved and acceptable to the City Engineer for the City of San Angelo;

NOW, THEREFORE, for and in consideration of the enhancement in value of Grantor’s

abutting property to be realized from the dedication, the sufficiency of which is hereby

acknowledged, Grantor does hereby grant, convey and sale unto the CITY OF SAN ANGELO,

Texas, hereafter referred to as “City” or “Grantee”, whose mailing address is 72 West College

Avenue, San Angelo, Texas 76903, for purposes set forth in the recitals hereinabove and to

include drainage and public utility uses, which recitals are incorporated herein and made a part of

this Special Dedication Deed for all purposes, certain real property located in Tom Green County,

Texas, and described as:

A 0.26-ACRE TRACT OF LAND LOCATED IN THE J. POITEVENT SURVEY 1113, ABSTRACT NO. 4873, CITY OF SAN ANGELO, TOM GREEN COUNTY, TEXAS, AND MORE SPECIFICALLY DESCRIBED IN THE METES AND BOUNDS ATTACHED HERETO AS EXHIBIT “A” AND INCORPORATED HEREIN FOR ALL PURPOSES.

TO HAVE AND TO HOLD the above described premises, together with all and singular the

rights and appurtenances thereto in anywise belonging unto the said Grantee, and Grantee’s

successors and assigns, against every person whomsoever claiming or to claim the same or any

part thereof, by and through Grantor, but not otherwise.

WITNESS THE EXECUTION HEREOF this the _______ day of _____________, 2013.

GRANTOR: The Howard College at San Angelo

Foundation

y_____________________________________ Michael L. Boyd, President

STATE OF TEXAS

COUNTY OF TOM GREEN

BEFORE ME, the undersigned authority, on this day personally appeared Michael L. Boyd,

President of The Howard College at San Angelo Foundation, known to me to be the person whose

name is subscribed to the foregoing instrument, and acknowledged that he executed and delivered

the foregoing instrument for the purposes and consideration therein expressed on behalf of The

Howard College at San Angelo Foundation.

_____________________________________ Notary Public, State of Texas

RECEIVED, ACCEPTED AND AGREED TO BY THE GRANTEE CITY OF SAN ANGELO Attest: __________________ _________________ Daniel Valenzuela, City Manager Alicia Ramirez, City Clerk THE STATE OF TEXAS COUNTY OF TOM GREEN BEFORE ME, the undersigned authority, a Notary Public in and for the County of Tom Green, State of Texas, on this day personally appeared Daniel Valenzuela, City Manager of the City of San Angelo, Texas, a municipal corporation, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purpose and consideration therein expressed and as the act and deed of said City, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE the ______ day of ______________, 2013. ___________________________________ Notary Public, State of Texas

Exhibit A

A RESOLUTION AUTHORIZING THE CITY MANAGER TO

EXECUTE AN ACCEPTANCE, ON BEHALF OF THE CITY OF

SAN ANGELO, TEXAS, OF A SPECIAL DEDICATION DEED, THE

HOWARD COLLEGE AT SAN ANGELO FOUNDATION,

GRANTOR, RELATING TO CERTAIN REAL PROPERTY BEING

0.26 ACRE TRACT OF LAND LOCATED IN THE CITY OF SAN

ANGELO, TOM GREEN COUNTY, TEXAS, AT OR ABOUT

SMITH BOULEVARD IN NORTHEAST SAN ANGELO, FOR

PURPOSES OF GRANTOR CONSTRUCTING AND DEDICATING

A PUBLIC MOTOR VEHICLE ACCESS AND TURN AROUND TO

THE HOWARD COLLEGE CAMPUS NECESSARY FOR

GRANTOR’S FURTHER DEVELOPMENT OF ADJACENT

CAMPUS PROPERTY; AND, FINDING A PUBLIC PURPOSE AND

BENEFIT THEREIN.

WHEREAS, The Howard College at San Angelo Foundation, Grantors, are the owners of

certain real property and campus of a higher education institution located at 3501 North US

Highway 67, San Angelo, Tom Green County, Texas; and,

WHEREAS, said real property is located within a Planned Development District which

incorporates a master development plan for the Howard Community College Campus; and,

WHEREAS, Grantor would like to construct and dedicate an improved access street and

motor vehicle turn around to provide access to the campus required for Grantor to develop the

adjacent campus real property under the City Land Development and Subdivision Ordinance and

International Fire Code ; and,

WHEREAS, the access street and turn around improvement proposed by Grantor is an

aesthetically pleasing feature of an otherwise dead-end street, and meets specifications approved

by the City Engineer; and,

WHEREAS, the City Council has determined that there is a public necessity for, and the

public welfare and convenience will be served by, acceptance of the Special Dedication Deed

from The Howard College at San Angelo Foundation, Grantor, for improvements to be made and

dedicated by Grantor for public street access and turn around to the Howard Community College

Campus ;

NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF

SAN ANGELO, TEXAS THAT:

1. All of the recitals hereinabove stated are found to be true and correct and are

incorporated herein and made a part of this Resolution.

2. The City Council of the City of San Angelo, Texas, hereby determines that there

is a public necessity for, and the public welfare and convenience will be served by, the

acceptance of the Special Dedication Deed, The Howard College at San Angelo Foundation,

Grantor, being a 0.26 acre tract of land located in the City at or about Smith Boulevard in

northeast San Angelo for purposes of Grantor constructing and dedicating a public motor vehicle

access and turn around to the Howard College Campus, as depicted in Exhibit A, and described

by metes and bounds in Exhibit B attached to this Resolution, necessary for Grantor’s further

development of adjacent campus property.

3. The City Manager is hereby authorized to execute on behalf of the City of San

Angelo an acceptance on the Special Dedication Deed, The Howard College at San Angelo

Foundation, Grantor, City of San Angelo, Grantee, in substantially the form attached as Exhibit

“C” to this Resolution, and such other instruments as may be necessary or convenient for

carrying out such purposes.

PASSED and APPROVED THIS DAY OF , 2013.



Attest:

Alicia Ramirez, City Clerk

Approved As to Form: Approved As to Content:

______________________________ ______________________________

Lysia H. Bowling, City Attorney AJ Fawver, Interim Director of

Development Services

EXHIBIT “A”

The dedicated property shall consist of that portion 11,341 square feet of real property,

more graphically shown as follows:

EXHIBIT “B”

City of San Angelo

Memo



From: Kevin Boyd, Planner

Subject: Z13-23: Earl and Michelle Weber, a request for a zone change from

Ranch & Estate (R&E) to Light Manufacturing (ML) to allow for industrial uses as identified in Section 310 of the Zoning Ordinance, on the following property:

Location: 3862 Tractor Trail, located at the northwest corner of the intersection of

Tractor Trail and Porter Henderson Drive; more specifically occupying the Paul Gregory Addition, Section 2, 5.33 acres of Tract J & 0.310 acres in Smith Boulevard, in northeast San Angelo.

Purpose: Approval of this request would zone the property Light

Manufacturing (ML).

Contacts: Earl and Michelle Weber, Owners 325-651-3343

Kevin Boyd, Planner 325-657-4210

Caption: First Public Hearing and consideration of introduction of an Ordinance

amending Chapter 12, Exhibit “A” (Zoning Ordinance) of the Code of Ordinances, City of San Angelo

Z13-23: Earl and Michelle Weber

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 3862 Tractor Trail, located at the northwest corner of the intersection of Tractor Trail and Porter Henderson Drive. This property specifically occupies the Paul Gregory Addition, Section 2, 5.33 acres of Tract J & 0.310 acres in Smith Boulevard, in northeast San Angelo,

changing the zoning classification from Ranch & Estate (R&E) to Light Manufacturing District (ML) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY


(1) Approve the proposed zone change as requested; or (2) Modify the application to some alternative zoning classification believed to be

more appropriate; or

(3) Deny the proposed zone change, altogether.

Recommendation: Planning staff recommends approving the proposed zone

change request from Ranch & Estate (R&E) to Light Manufacturing (ML). Planning Commission recommended approval of this request by a vote of 6-0 on July 15, 2013.


General Information

Existing Zoning: Ranch & Estate (R&E) Existing Land Use: A warehouse Surrounding Zoning/Land Use:

North: Heavy Manufacturing (MH) CSA Materials (manufacturing and production), largely open space

West: Heavy Manufacturing (MH) CSA Materials (manufacturing and production), largely open space

South: Ranch & Estate (R&E) and General Commercial (CG)

Open space

East: Light Manufacturing (ML) and Ranch & Estate (R&E)

John Deere South Plain Implement, Chaparral Commercial Center - American Tire Distributers, United Postal Service (UPS) and Coverlay Manufacturing, US Highway 67 and Roy K Robb Corrections Facility

Thoroughfares/Streets: Tractor Trail and Porter Henderson Drive are

classified as a ‘local streets’, designed to carry light neighborhood traffic at low speeds. The portion of Porter Henderson south of the intersection with Tractor Trail remains unimproved.

The segment of Smith Boulevard south of the

subject property is a private street. US Highway 67 is identified as a "major arterial

street" and is designed to connect collector streets to freeways and other arterials carrying large volumes of traffic at high speeds. Access is secondary and mobility is the primary function of these streets.

Zoning History: The property was annexed into the city as Ranch

& Estate (R&E) in December 2011. Applicable Regulations: 316.B.1 of the Zoning Ordinance states, ..."If the

uses routinely subject the surrounding area to noxious or malodorous impacts, they are considered heavy manufacturing and production.."

Development Standards: All required off-street parking and the

connection(s) to a public right-of-way are required to be paved.

Vision Plan Map: Industrial Related Comp Plan Excerpts: Intent of Industrial in the Comprehensive Plan is to,

“[dedicate areas for] supporting the local economy while mitigating some of their potentially undesirable secondary effects on nearby residences.”

Industrial section goal one of the Comprehensive Plan is to "Organize LULUs (Locally Undesirable Land Uses) into clusters." The purpose of this goal is to: "Cluster potentially hazardous industries into a limited number (given the size of San Angelo) of larger, isolated areas will minimize negative effects on residential areas, while balancing access to these businesses within the region, rather than putting all of them into one location."

Special Information

Traffic Concerns: Although the area is residentially zoned, previous uses have been heavy commercial to light industrial in nature. Changing the zoning is likely to generate additional traffic than if the property remained as-is. TxDOT expresses concern with increases in freight movement, an allowed use in the proposed zoning.

Parking Requirements: Vary depending upon the use of the property, see

Section 511 of the Zoning Ordinance. Parking Provided: Parking currently exists, any additional buildings

on the site may require the need for more spaces. Density: Predominantly large tracts of undeveloped land

surround the site. The Vision Plan also calls for 'Industrial' type development in the area.

Notification Required: Yes Notifications Sent: 6

Responses in Favor: 1 Responses in Opposition: 0

Analysis:

In order to approve this zone change request, the City Council members are first required to consider the following criteria: 1. Compatible with Plans and Policies. Whether the proposed amendment is compatible

with the Comprehensive Plan and any other land use policies adopted by the Planning Commission or City Council.

2. Consistent with Zoning Ordinance. Whether and the extent to which the proposed amendment would conflict with any portion of this Zoning Ordinance.

3. Compatible with Surrounding Area. Whether and the extent to which the proposed amendment is compatible with existing and proposed uses surrounding the subject land and is the appropriate zoning district for the land.

4. Changed Conditions. Whether and the extent to which there are changed conditions that require an amendment.

5. Effect on Natural Environment. Whether and the extent to which the proposed amendment would result in significant adverse impacts on the natural environment,

including but not limited to water and air quality, noise, storm water management, wildlife, vegetation, wetlands and the practical functioning of the natural environment.

6. Community Need. Whether and the extent to which the proposed amendment addresses a demonstrated community need.

7. Development Patterns. Whether and the extent to which the proposed amendment would result in a logical and orderly pattern of urban development in the community.

The staff recommendation is based upon the statements listed below. The requested zone change for the property will enable various industrial opportunities to occur. The site is situated immediately west of the Chaparral Commercial Center - which measures roughly a city block and occupies companies that include: American Tire Distribution, UPS and Cover Lay Manufacturing Inc. The zoning of the property in question remains Ranch & Estate (R&E), although previous uses have been commercial in nature (Any existing uses conducted on the site prior to annexation - which were active at the time of annexation - within the city limits are able to continue as-is, subject to provisions outlined in Article 6 of the Zoning Ordinance). R&E zoning is the designated holding zone for newly annexed property in the city. Much of the property and several surrounding tracts to the north, east and west were annexed into the city-limits in December of 2011 - this property is one of a few in the area that has not been subjected to rezoning. Properties directly to the north and west have been rezoned to Heavy Manufacturing (MH) and to the east, recently to Light Manufacturing (ML). A couple of properties to the south have also never been rezoned and remain R&E. The Vision Plan envisions the area to be designated for industrial uses – which is compatible with OW, MH and ML zoning. Industrial allows for clustering potentially hazardous industries into limited, isolated parts of the city. Staff finds that ML is more appropriate for the area - the area is quite disconnected from the rest of the city and is more suited for intensive and noxious land uses allowed in the city limits. A zone change to ML zoning will provide opportunities for various low intensity industrial development. CH, ML, MH and OW all permit industrial uses – one example is "Industrial Service" (this use category includes the repair or servicing of industrial, business or household consumer machinery, equipment, products or by-products). ML zoning allows for other uses that include warehouse and freight movement, wholesale trade, and mining and waste-related uses with the express approval by the Planning Commission of a conditional use. ML and MH zoning allow for manufacturing and production, with the exception that MH allows for heavy processing and manufacturing which may involve chemicals and similar processes. The subject property measures more than 3,200 feet from any major residential development. Unlike the tract immediately to the east, there is some separation from US Highway 67, a major thoroughfare and main gateway into the city. OW places limitations on allowed uses and outdoor storage, in addition to limitations on the maximum height requirement (35 feet) and Floor Area Ratio (FAR) of 80 percent. ML and MH zoning do not have a maximum height requirement and the FAR is 2 or equal to twice the total area of the lot. Staff finds that ML - rather than MH - is a better zoning for the area. MH zoning allows for greatest

flexibility as it relates to intensity and the level of noxious uses allowed, but approved conditional uses also allow the development of slaughterhouses and meatpacking, refining of petroleum and coal products and the fabrication of boilers and tanks. These uses are extreme in nature. Careful consideration is always given in making a zoning recommendation – this is more so the case with industrial zoning – these districts in particular can raise potential conflicts given the elevated nuisances and noxious effects involved. A change to ML will offer a variety of industrial opportunities but limits some uses considered extreme and damaging to the surrounding environment. Staff finds that the transition to ML appropriate given the size of the lot, which measures roughly 5 acres. The average size of the lots in the area is also quite sizeable - roughly 7 acres. The size of the lots range between 0.5 and 47 acres, the largest size lot in the area is immediately north of the site. On the property in question is an existing structure that measures roughly 18,500 square feet, the property remains largely undeveloped. Similarly, much of the surrounding area is largely undeveloped. John Deere and the Chaparral Commercial Center - which includes American Tire Distribution, UPS and Cover Lay Manufacturing Inc. - are medium to high intensity commercial uses, situated to the east. CSA Materials, a manufacturing and production company, exists on the largest size tract (roughly 47 acres) immediately north of the site. There is a 20 acre tract that buffers the site from nearby US Highway 67 which serves as a major gateway into the city. Buildings also occupy that lot which provides added separation from the street and therefore, minimizes the potential for visual impacts of future development on the site. The inherent screening effectively separates the property from a main gateway into town.

This request represents a measurable change in conditions of the current Ordinance. R&E is the least intensive zoning available within the city – ML represents one of the most intensive. R&E zoning is limited to low density residential development on relatively larger lots, and at times, characteristic of ranches and more sprawling estates. Staff finds ML zoning appropriate for the site, given the relative isolation of the area and the pattern of existing uses. Huge swaths of ML and MH zoning already exist in the area – CSA Materials and Martifer-Hirscheld Energy Systems are notable uses in the area zoned for MH. These more intensive uses – zoned MH – are situated in isolated areas and also have further separation from major highways.

Given the nature of the proposed request, changing the zoning is likely to have some adverse impacts on the natural environment. MH zoning poses the potential for the most severe environmental impacts on the land. One aspect of the Vision Plan of the Comprehensive Plan seeks to cluster intensive uses into a few isolated areas within the city deemed appropriate for such development. In analyzing the area, the site seems to be a sufficient distance from large drainage or water sources. Features such as small creeks are nearby but far enough not to pose a threat to the water quality in any substantial way. Any potential visual impacts will be minimized by the 20 acre tract that encompasses the Chaparral site, immediately to the east - this includes the land itself and the series of one and two story buildings, that occupy the lots, that effectively screen much of the subject property from view. The subject property measures roughly 800 feet from US Highway 67 - only the extreme southern portion of the land is visible from the major highway.

Staff believes that this request represents a community need. Currently, there are few areas in the city that have direct abutting access to a major highway and are isolated from residences or sensitive areas. The city can certainly benefit for the various uses allowed in ML zoning – manufacturing and production, for example, may provide employment and opportunities to expand city’s tax base. Greater employment in the manufacturing and production sector can supply the demand for skill labor, which also benefits area educational institutions. The zone change also creates more diversified land uses within the city-limits – ML zoning is one of the more underutilized districts in the city. Given the fact that the Vision Plan calls for industrial in the area, no amendment to the Comprehensive Plan is required. The site is situated close to a major highway system – US Highway 67 –roughly 800 feet to the east. Tractor Trail, identified as a local street in the city's Thoroughfare Plan, is the primary means of accessing the site. While close proximity of the highway allows for quick access for transporting goods, the surrounding network of streets do not have sufficient capacity to handle future demands in the area which remains a concern. Tractor Trail and Porter Henderson Drive are both identified as local streets, designed to carry light neighborhood traffic at low speeds - Porter Henderson is unimproved just south of the intersection with Tractor Trail. A previous contact with TxDOT stated that the crossovers along US Highway 67 to Tractor Trail and further north at the intersection with MH Morgan Trail, are not sufficient enough to support increased freight movement to the site - given inadequate pavement widths and rate of speed along US Highway 67. A change to ML, from R&E, will inherently increase the potential for more traffic, staff finds that the proposed zoning will have less impacts on the existing infrastructure than the more intensive, MH zoning. It is also important to note, that TxDOT is currently undertaking a study of this area and is also aware of the City's Comprehensive Plan, which identifies this area as Industrial in nature. No plans have been finalized at this time, and much of this study has just begun.

Proposed Conditions

N/A

Attachments: Excerpt from zoning map, showing the general location within

the City of San Angelo; Excerpt from zoning map, highlighting subject property; Aerial photo, highlighting subject property; Excerpt from the Vision Plan map highlighting the subject

property; Excerpt of the favor/opposition notification map; Citizen response; Draft minutes from 07/15/2013 Planning Commission

meeting; and Draft Ordinance.

Presentation: Kevin Boyd, Planner

Reviewed by: Jeff Hintz, Interim Senior Planner (07/08/13)

B. Z 13-23: Earl & Michelle Weber A request for a zone change from Ranch & Estate (R&E) to Light Manufacturing

(ML) to allow for industrial uses as allowed in Section 310 of the Zoning Ordinance, on the following property:

3862 Tractor Trail, located at the northwest corner of the intersection of Tractor

Trail and Porter Henderson Drive; more specifically occupying the Paul Gregory Addition, Section 2, 5.33 acres of Tract J & 0.310 acres in Smith Boulevard, in northeast San Angelo.

Kevin Boyd, Planner came forward to present the project consistent with staff’s recommendation of approval. Six notices were sent and one was returned in favor. Mr. Boyd went over some characteristics of the area using maps and photos to orient the commission with the property. Mr. Boyd covered the criteria mandated of the request and the options available to the board. This area is isolated from residential development and buffered from the highway making it an ideal area for industrial development and usage. This proposal will result in orderly development for the area and could provide an opportunity for skilled labor and businesses to the area.

Earl Weber, proponent came forward to speak in favor of the request and offered to answer any questions.

Harold Mueller came forward to speak in favor of the request and stated it was the first building he had built in the area, using it as a springboard for the rest of the industrial center.

Motion to approve was made by Valerie Priess and seconded by Teri Jackson and passed 6-0.

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 3862 Tractor Trail, located at the northwest corner of the intersection of Tractor Trail and Porter Henderson Drive. This property specifically occupies the Paul Gregory Addition, Section 2, 5.33 acres of Tract J & 0.310 acres in Smith Boulevard, in northeast San Angelo, changing the zoning classification from Ranch & Estate (R&E) to Light Manufacturing (ML) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

RE: Z 13-23: Earl and Michelle Weber

WHEREAS, the Planning Commission for the City of San Angelo and the governing

body for the City of San Angelo, in compliance with the charter and the state law with reference to zoning regulations and a zoning map, have given requisite notice by publication and otherwise, and after holding hearings and affording a full and fair hearing to all property owners and persons interested, generally, and to persons situated in the affected area and in the vicinity thereof, is of the opinion that zoning changes should be made as set out herein; NOW THEREFORE,

BE IT ORDAINED BY THE CITY OF SAN ANGELO:

SECTION 1: That the basic zoning ordinance for the City of San Angelo, as enacted

by the governing body for the City of San Angelo on January 4, 2000 and included within Chapter 12 of the Code of Ordinances for the City of San Angelo, be and the same is hereby amended insofar as the property hereinafter set forth, and said ordinance generally and the zoning map shall be amended insofar as the property hereinafter described: 3862 Tractor Trail, located at the northwest corner of the intersection of Tractor Trail and Porter Henderson Drive. This property specifically occupies the Paul Gregory Addition, Section 2, 5.33 acres of Tract J & 0.310 acres in Smith Boulevard, in northeast San Angelo, shall henceforth be permanently zoned as follows: Light Manufacturing (ML) District.

The Director of Planning is hereby directed to correct zoning district maps in the office of the Director of Planning, to reflect the herein described changes in zoning.

SECTION 2: That in all other respects, the use of the hereinabove described

property shall be subject to all applicable regulations contained in Chapter 12 of the Code of Ordinances for the City of San Angelo, as amended.

SECTION 3: That the following severability clause is adopted with this amendment:

SEVERABILITY: The terms and provisions of this Ordinance shall be deemed to be severable in that,

if any portion of this Ordinance shall be declared to be invalid, the same shall not affect the validity of the other provisions of this Ordinance.

SECTION 4: That the following penalty clause is adopted with this amendment:

PENALTY: Any person who violates any provisions of this article shall be guilty of a misdemeanor and, upon conviction, shall be subject to a fine as provided for in Section 1.106 of the Code of Ordinances for the City of San Angelo. Each day of such violation shall constitute a separate offense.

INTRODUCED on the 6th day of August, 2013 and finally PASSED, APPROVED AND ADOPTED on this the 20th day of August, 2013.


____________________________________


ATTEST:

________________________________ Alicia Ramirez, City Clerk

Approved As To Content: Approved As To Form: _________________________ ________________________ AJ Fawver, Planning Manager Lysia H. Bowling, City Attorney

City of San

Angelo

Memo



From: Roxanne Johnston, Planner

Subject: Z 13-22: M&H Mueller, a request for approval of a zone change

from General Commercial (CG) to Light Manufacturing (ML) to specifically allow for uses found in Section 310 of the Zoning Ordinance on the following properties:

Location: 3172 McGill Avenue & 3733 North US Highway 67,

collectively occupying both a 5.131 acre tract and a 55.1830 acre tract located west of North US Highway 67, north of Paulann Boulevard and east of Smith Boulevard; more specifically occupying 5.131 acres of the J. Pointevent Survey 1113, Abstract 4873, and 55.1830 acres of the J. Fenner Survey 0001, Abstract 4985, in northeast San Angelo.

Purpose: Approval of this zone change request by the City Council

would zone property as a Light Manufacturing (ML) Zoning District.

Contacts: Harold Mueller property owner 325-656-7222

Roxanne Johnston, Planner 325-657-4210

Caption: First Public Hearing and consideration of introduction of an

Ordinance amending Chapter 12, Exhibit “A” (Zoning Ordinance) of the Code of Ordinances, City of San Angelo

Z 13-22: M&H Mueller

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF

CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 3172 McGill Boulevard & 3733 North US Highway 67, collectively occupying both a 5.131 acre tract and a 55.1830 acre tract located west of North US Highway 67, north of Paulann Boulevard and east of Smith Boulevard; more specifically occupying 5.131 acres of the J. Pointevent Survey 1113, Abstract 4873, and 55.1830 acres of the J. Fenner Survey 0001, Abstract 4985, in northeast San Angelo, changing the zoning classification from a General Commercial (CG) to a Light Manufacturing (ML) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY


(1) Approve the proposed zone change;

(2) Remand the application back to Planning Commission for further discussion,

in which case another public hearing will need to be scheduled; or (3) Deny the proposed zone change

Recommendation: Planning staff recommends approving the proposed

zoning classification to Light Manufacturing (ML). Planning Commission unanimously recommended approval of this request by a vote of 6-0 on July 15, 2013.


The applicant expressed a desire to change the zoning from CG to ML because when the property was given a CG zoning designation, the applicant had been approached by a supermarket to locate there. This plan did not materialize, mainly because the proper street infrastructure was not in place to support the proposed supermarket. Therefore, corporate store managers elected to go elsewhere. Given the influx of industrial zoning and demand for industrial land, the applicant found it prudent to opt for a zone change even though the Vision Plan currently calls for “Commercial,” since access to and from the property continues to fall short of the needs for regular commercial uses which will be

explained further below in the analysis section of this report. It is the desire of the applicant to see an amendment to the Vision Plan to change the subject property to “Industrial.” The Planning Commission unanimously voted to approve this change on July 15, 2013. Recent zone changes for industrial uses have been approved by the Planning Commission and City Council in the area of this proposed zone change. These include Z12-17 (MH) located approximately 610 feet northwest of the subject property, Z12-12 (MH), which is located at the northwest corner of the subject property and Z13-11 which makes up the Chaparral Commercial Center located approximately 785 feet northeast of the subject property. Additionally, Z13-23, which was heard and unanimously approved at the same Planning Commission meeting as this request, is requesting ML as well. This last property lies approximately 775 feet north of the subject property. Allowed uses for CG zoning (which the subject property is currently zoned as) include Group Living; Alcohol and drug recovery facility; College; Public, nonprofit, or charitable uses providing service to the community; day care for children or adults; Meeting areas for religious institutions; Public safety and emergency services; Schools; Auto and boat dealerships; Bed & breakfast; Business, government, professional, medical or financial offices; Commercial parking; Retail sales; Self-service storage; Vehicle service (performed while the customer waits); Vehicle wash; Small animal veterinary clinic; Personal service-oriented business; Repair-oriented business; and Restaurants. Allowed uses for ML zoning districts include Drug and alcohol recovery facility, Meeting areas for religious institutions; Business, government, professional, medical or financial offices; Commercial parking; Self-service storage; Vehicle service (performed while the customer waits); Small animal veterinary clinic; Auto and boat dealerships; Vehicle wash; Vehicle Repair; Equipment rental; Industrial services; Light manufacturing and production; Warehouse and freight movement; Wholesale trade; Plant nurseries; Food and beverage processing; Drug and tobacco processing; Building material processing; Light metal fabrication; and Public safety and emergency services.

General Information

Existing Zoning: General Commercial (CG) Existing Land Use: Vacant Property Surrounding Zoning/Land Use:

North: R&E John Deere South Plain Implements

West: ML Undeveloped property

South: CH Storage yard

East: R&E North US Highway 67

Thoroughfares/Streets: North US Highway 67 is identified as a

"major arterial street" and is designed to connect collector streets to freeways and other arterials carrying large volumes of traffic at high speeds. Access is secondary and mobility is the primary function of these streets.

Smith Boulevard borders the subject

property to the west and is undeveloped and private at this time. Porter Henderson Drive and Paulann Boulevard are also undeveloped and borders the property to the south. Both are classified as future "collector streets" designed to connect arterial streets to local streets and access land.

Zoning History: This area was annexed into the city in

November 1997 and zoned General Commercial (CG) simultaneously. At that time, Single-Family Residential (RS-1) was the default zoning designation for all newly annexed areas; however, in this case, the RS-1 zoning was not applied.

Applicable Regulations: Section 509 of the Zoning Ordinance

describes fencing requirements. Any time a commercial use abuts a residential district or use, an opaque privacy fence is required; however, commercial properties bordering R&E zoning are exempt from this requirement.

316.B.1 of the Zoning Ordinance states,

..."If the uses routinely subject the surrounding area to noxious or malodorous impacts, they are considered heavy manufacturing and production…"

Development Standards: All required off-street parking and the

connection(s) to a public right-of-way are required to be paved.

Vision Plan Map: Commercial (pending change to Industrial)

Related Comp Plan Excerpts: The intent of Industrial zoning in the

Comprehensive Plan is to, “[dedicate areas for] supporting the local economy while mitigating some of their potentially undesirable secondary effects on nearby residences.”

The Industrial Section of Goal One of the

Comprehensive Plan seeks to "Organize LULUs (Locally Undesirable Land Uses) into clusters." The purpose of this goal is to: "Cluster potentially hazardous industries into a limited number (given the size of San Angelo) of larger, isolated areas (which) will minimize negative effects on residential areas, while balancing access to these businesses within the region, rather than putting all of them into one location."

“Require a buffer separating commercial,

industrial, or agricultural zoned lands from neighborhoods.”

“Establish transition areas between

commercial areas and nearby neighborhoods.”

Special Information

Traffic Concerns: Changing the zoning from a commercial zoning to industrially intensive ML has the potential to generate traffic consisting of heavier industrial equipment than if the property remained as-is. The concentration of traffic would most likely be lower than if the property were developed commercially because industrial zoned properties typically attract fewer users and users that are specific to industrial activities. Staff is not concerned with the development of this property as industrial because industrial zoning is found west, south and east of the subject property. Additionally, ease of access to the highway for transport is provided with frontage access to North US Highway 67.

Parking Requirements: Vary depending upon the use of the property. See Section 511 of the Zoning Ordinance.

Parking Provided: No parking spots are currently provided on

the lot, though it is a sizable tract. Density: Predominantly large tracts of undeveloped

land in the surrounding areas. The Vision Plan, and a proposed Vision Plan Amendment also call for a continuation of the future development of this area as Industrial, creating an industrial hub. Surrounding uses are predominately low

Notification Required: Yes Notifications Sent: 10

Responses in Favor: 1 Responses in Opposition: 0

Analysis:

In order to approve this Zone Change request, the City Council members are first required to consider the following criteria: 1. Compatible with Plans and Policies. Whether the proposed amendment is

compatible with the Comprehensive Plan and any other land use policies adopted by the Planning Commission or City Council.

2. Consistent with Zoning Ordinance. Whether and the extent to which the proposed amendment would conflict with any portion of this Zoning Ordinance.

3. Compatible with Surrounding Area. Whether and the extent to which the proposed amendment is compatible with existing and proposed uses surrounding the subject land and is the appropriate zoning district for the land.

4. Changed Conditions. Whether and the extent to which there are changed conditions that require an amendment.

5. Effect on Natural Environment. Whether and the extent to which the proposed amendment would result in significant adverse impacts on the natural environment, including but not limited to water and air quality, noise, storm water management, wildlife, vegetation, wetlands and the practical functioning of the natural environment.

6. Community Need. Whether and the extent to which the proposed amendment

addresses a demonstrated community need.

7. Development Patterns. Whether and the extent to which the proposed amendment would result in a logical and orderly pattern of urban development in the community.

The staff recommendation is based upon the statements listed below. As mentioned in the history section of this report, several industrial zoning use requests have been made in the general area and approved by the Planning Commission and City Council. None have been denied. Therefore, the area has seen a trend towards industrial development which illustrates that this request is consistent with area development patterns. The applicant owns several properties that have been zoned ML such as properties within the Chaparral Commercial Center located within the borders of North US Highway 67 Frontage Road to the east, MH Morgan Trail to the northwest, Porter Henderson Drive to the west, and Tractor Trail to the south, respectively. Businesses in this center include the American Tire Distribution, UPS, and Cover Lay Manufacturing, Inc. The majority of these properties are therefore businesses that relate to manufacturing and production. Martifer-Hirschfield Industries, for example, has a large facility that manufactures wind turbine towers on their property located approximately 1330 feet west of the subject property and is appropriately zoned MH, which further illustrates the development of properties for industrial-type uses in the area. Due to demand and increased trends in industrial uses to the area and because the city has limited areas that allow placement for businesses related to manufacturing and other industrial uses, the Planning Division (after a thorough examination of the area and discussion with City Council and the Planning Commission on a previous proposed amendment to the Vision Plan in this area) is seeking a Vision Plan amendment on the subject property that would change it from a “Commercial” use to an “Industrial” use. Therefore, the recommendation for this property by staff hinges on an amendment to the Vision Plan. As mentioned in the “History and Background” section above, the Planning Commission agrees with this assessment and approved this recommendation. Additionally, staff research has suggested that a retail center or retail development may not be feasible for this property since full access to the property is not supported by current road infrastructure, and there are no plans for a frontage road to be placed along that entire eastern stretch of property as one would expect to see with a retail center. North US Highway 67 is a divided highway which makes it necessary for traffic to use crossovers in order to access properties that lie along the opposite side of the road. However, staff has been

informed by the Interim Director of Economic Development that TxDOT will be constructing a crossover and frontage road approximately mid-way along the eastern border of the subject property that will allow traffic to travel to the currently undeveloped portion of Paulann Boulevard along the southern border of the subject property. This section of Paulann Boulevard will be solely funded by the City of San Angelo Development Corporation. The bidding process for improvements for this undeveloped portion of Paulann Boulevard, westward towards McGill Boulevard, but ending approximately mid-way to the north of Howard College, is scheduled for late summer or early fall of this year. The primary reason for relocating the crossover is due to safety issues related to over-stacking of vehicular traffic that occurs from the crossover in place east of Howard College, which causes traffic to back up onto the highway during peak commuting hours. The network of one-way access roadways in the area also makes travel to the site a little more problematic when compared to other retail centers in other portions of the community. Turnaround opportunities are especially lacking when looking at access to this particular property. Since ML zoning does not allow for retail sales by right and is intended for manufacturing, warehousing, and higher intensity opportunities, a site with limited traffic access, which is also isolated from residential development, is the highest and best use of the property given these and other circumstances in the area. Generally speaking, Light Manufacturing (ML) uses are a zoning step below Heavy Manufacturing, (MH), which is the most intense and noxious of all potential uses of property within the city limits. The placement of any industrial zoning needs to be weighed and considered with the utmost concern by decision makers and staff. In looking at this request, staff weighed the surrounding area and development patterns very carefully when formulating this recommendation. Staff also examined environmental impacts and concluded that the property, though undeveloped, could experience intense environmental impacts even if developed under the current CG zoning to full density. For example, parking lots and large structures generate high volumes of storm water runoff, and commercial traffic is typically higher in volume which causes congestion in underdeveloped roads. Given the other land uses and higher intensity zoning in the area, clustering these more intense uses into isolated areas in the community is consistent with the goals of the industrial section of the Comprehensive Plan. This is also consistent with the amendment to the Vision Plan that staff is proposing. With ML zoning, which could also conceivably contain vast paved parking lots and large buildings, environmental impacts could most likely be seen also in the form of outdoor storage, which can be viewed as a visual nuisance, noise (again, the property is located a considerable distance from residential uses), and traffic generated by heavy equipment. Either way, there would be environmental considerations once development began on the subject property regardless of a zone change. Again, by following the goals of the Comprehensive Plan and clustering these higher intense uses into a few isolated areas diminishes the

effect on the natural environment. As addressed throughout many zoning requests of an industrial nature, a zoning of this intensity would not be appropriate near areas identified as neighborhood, but in an area that has developed in relative isolation with more intense uses is highly appropriate. Noxious sounds and odors in this area will likely go unnoticed by a vast majority of people who visit and live within San Angelo. The city landfill, concrete plants, and warehouses are some predominant land uses in this area; loud noises and odd smells on occasion are not likely to bother the properties that have developed in this area as many of them are currently already engaged in activities that are similar in nature to manufacturing and production. The advantage to the location is its proximity to a major highway and railroad. This request for ML zoning, though inconsistent with the Vision Plan in its current form (currently a change to the Vision Plan is proposed that is consistent with this request), is consistent with the Zoning Ordinance and compatible with the surrounding area. Again, staff is recommending an amendment to the current Plan because it simply makes sense to continue to cluster “like” development together when it comes to industrial uses. The report included in this month's meeting packet addresses, in detail, these issues for the greater area. Ideally, ML zoning is located in an area with no residential activity nearby. This is true with the subject property. Although two Ranch & Estate zoned properties are found north of the subject property, the subject property does not directly abut residential uses: John Deere is located on one of these properties (northeast of the subject property), and the other is vacant and owned by the applicant, who is seeking a zone change to ML concurrently with this request (northwest of the subject property). The nearest area residential properties can be found approximately 860 feet west of the subject property in the Sun Lake Estates Mobile Home Park. The mobile home park is a Planned Development (PD97-05) with RS-1 underlying zoning. Vacant properties zoned ML and CH abut this PD district to the north and east yet serves to provide a separation buffer between the southwestern border of the subject property in conjunction with the undeveloped Smith Boulevard, which will be a future collector street according to the Vision Map section of the Comprehensive Plan. Though placing residential next to industrial uses is not ideal, the trend for industrial to the north of the planned development was particularly evident when Martifer-Hershfield Industries announced its intention to locate to the area in 2008. Fortunately, approximately 900 feet (including the yet undeveloped Paulann Boulevard) separates these uses which is helpful given that the Comprehensive Plan seeks to buffer residences from zoning that allows for industrial uses and unlimited outdoor storage of materials and goods. The extent to whether this request represents a community need is evident when comparing industrial zone clusters within the city, especially where industry is concentrated with nearby rail and major road access. Although commercial nodes tend to be located along the City’s major highways, these nodes, unlike

industrial nodes, do not utilize direct railroad deliveries even though commercial products are often shipped by railway and trucks. Such primary industrial clusters in the city can be found along North Bell Street, in the Central Business District just north of City Hall, far north along Old Ballinger Highway, and to the southeast along Christoval Road. The subject property therefore lies within one of the few areas where manufacturing is grouped within the city and is also located within a reasonable distance to railway and highway access. As with commercial businesses, industrial businesses create jobs yet also rely on commercial businesses that serve them. In conclusion, staff is confident that the proposed zone change from CG to ML, along with a Vision Plan amendment, constitutes the best use of the subject property, primarily because it is relatively isolated from residential uses. The lack of residential development in the far northeast portion of the city makes this an ideal area to focus the most intense uses and businesses that wish to locate within the city limits. A zone change here will ensure complimentary clustering of intense uses and like-zoning designations as well. Additionally, quick access to the highway and lack of residential and commercial traffic not serving the general public here makes this one of the safest locations within the city limits to cluster "Locally Undesirable Land Uses” which could also contribute to making this area ripe for potential as a highly successful industrial area for the city.

Proposed Conditions

N/A

Attachments: excerpt from zoning map, showing the general location

within the City of San Angelo; excerpt from the comprehensive plan vision map

highlighting the subject property; excerpt from zoning map, highlighting subject

property; aerial photo, highlighting subject property; excerpt of the favor/opposition notification map; citizen response letter; draft minutes from the 07/15/13 Planning Commission

Meeting; and draft ordinance.

Presentation: Roxanne Johnston, Planner

Reviewed by: Jeff Hintz, Interim Senior Planner (7-23-13)

MINUTE RECORD OF THE CITY OF SAN ANGELO PLANNING COMMISSION

MEETING HELD ON MONDAY, JULY 15, 2013 AT 9:00 AM IN THE SOUTH MEETING

ROOM OF THE SAN ANGELO CONVENTION CENTER, 500 RIO CONCHO DRIVE, SAN

ANGELO, TEXAS.

PRESENT: Teri Jackson, Mark Crisp, Valerie Priess, Ryan Smith, Darlene Jones, Bill Wynne

ABSENT: Jennifer Boggs (Resigned) STAFF: Jeff Hintz, Interim Senior Planner

Kevin Boyd, Planner Roxanne Johnston, Planner

VIII. Requests for Zone Change. [Planning Commission makes recommendation; City Council has final authority for approval.]

A. Z 13-22: Harold & Margaret Mueller A request for approval of a zone change from General Commercial (CG) to

Light Manufacturing (ML) to specifically allow for uses found in Section 310 of the Zoning Ordinance on the following properties:

3172 McGill Avenue & 3733 North US Highway 67, collectively occupying

both a 5.131 acre tract and a 55.1830 acre tract located west of North US Highway 67, north of Paulann Boulevard and east of Smith Boulevard; more specifically occupying 5.131 acres of the J. Pointevent Survey 1113, Abstract 4873, and 55.1830 acres of the J. Fenner Survey 0001, Abstract 4985, in northeast San Angelo.

Roxanne Johnston, Planner came forward to present this case consistent with staff’s recommendation of approval. Ten notices were sent and one was returned in favor and was shared with the Commission. Ms. Johnston covered some characteristics of the area using photos and maps to orient the commission with the property. The criteria mandated of the request and the options available to the commission were also discussed by Ms. Johnston. The area is isolated from residential areas and the traffic is anticipated to be less than if a commercial usage were placed onto the property. Harold Mueller, proponent came forward to speak in favor of the request and stated he did have a vision at one time to develop the area as a commercial, retail center but with highway changes and closure of Smith Boulevard in this area for Howard College present some access issues for the property in retailing capacity. Ryan smith made a motion to approve as presented which was seconded by Teri Jackson and passed 6-0.

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING

PROPERTY, TO WIT: 3172 McGill Avenue & 3733 North US Highway 67, collectively occupying both a 5.131 acre tract and a 55.1830 acre tract located west of North US Highway 67, north of Paulann Boulevard and east of Smith Boulevard; more specifically occupying 5.131 acres of the J. Pointevent Survey 1113, Abstract 4873, and 55.1830 acres of the J. Fenner Survey 0001, Abstract 4985, in northeast San Angelo changing the zoning classification from a General Commercial (CG) to a Light Manufacturing (ML) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

RE: Z 13-22: M&H Mueller WHEREAS, the Planning Commission for the City of San Angelo and the governing

body for the City of San Angelo, in compliance with the charter and the state law with reference to zoning regulations and a zoning map, have given requisite notice by publication and otherwise, and after holding hearings and affording a full and fair hearing to all property owners and persons interested, generally, and to persons situated in the affected area and in the vicinity thereof, is of the opinion that zoning changes should be made as set out herein; NOW THEREFORE,

BE IT ORDAINED BY THE CITY OF SAN ANGELO:

SECTION 1: That the basic zoning ordinance for the City of San Angelo, as enacted

by the governing body for the City of San Angelo on January 4, 2000 and included within Chapter 12 of the Code of Ordinances for the City of San Angelo, be and the same is hereby amended insofar as the property hereinafter set forth, and said ordinance generally and the zoning map shall be amended insofar as the property hereinafter described: 3172 McGill Avenue & 3733 North US Highway 67, collectively occupying both a 5.131 acre tract and a 55.1830 acre tract located west of North US Highway 67, north of Paulann Boulevard and east of Smith Boulevard; more specifically occupying 5.131 acres of the J. Pointevent Survey 1113, Abstract 4873, and 55.1830 acres of the J. Fenner Survey 0001, Abstract 4985, in northeast San Angelo shall henceforth be permanently zoned as follows: Light Manufacturing (ML) District.

The Director of Planning is hereby directed to correct zoning district maps in the office of the Director of Planning, to reflect the herein described changes in zoning.

SECTION 2: That in all other respects, the use of the hereinabove described

property shall be subject to all applicable regulations contained in Chapter 12 of the Code of Ordinances for the City of San Angelo, as amended.

SECTION 3: That the following severability clause is adopted with this amendment:

SEVERABILITY: The terms and provisions of this Ordinance shall be deemed to be severable in that,

if any portion of this Ordinance shall be declared to be invalid, the same shall not affect the validity of the other provisions of this Ordinance.

SECTION 4: That the following penalty clause is adopted with this amendment:

PENALTY: Any person who violates any provisions of this article shall be guilty of a misdemeanor and, upon conviction, shall be subject to a fine as provided for in Section 1.106 of the Code of Ordinances for the City of San Angelo. Each day of such violation shall constitute a separate offense.

INTRODUCED on the 6th day of August, 2013 and finally PASSED, APPROVED AND ADOPTED on this the 20th day of August, 2013.


____________________________________


ATTEST:

________________________________ Alicia Ramirez, City Clerk

Approved As To Content: Approved As To Form: _________________________ ________________________ AJ Fawver, Planning Manager Lysia H. Bowling, City Attorney

City of San Angelo



From: Robert Schneeman, Interim Director of Economic Development

Subject: Agenda Item for August 6, 2013 meeting

Contact: Robert Schneeman, 653-7197, 657-4222

Caption: Consideration and possible action regarding a revision to the City of San Angelo Development Corporation Guidelines for Job Creation Assistance regarding Eligibility of Applicants

Summary:

At its regular meeting of January 3, 2012 City Council approved a revision to the City of San Angelo Development Corporation Guidelines for Job Creation Assistance. That revision as approved contained changes in contact information necessitated by personnel changes and also included a change to the “Eligibility of Applicants” section. The redline copy of the Guidelines as submitted to Council for consideration is attached hereto. The essence of the change in the Eligibility section is shown in red on pages 8 and 9 of the attached copy of the Guidelines.

The background memo submitted along with the proposed revision is also attached. Financial Impact: None


Staff has no specific recommendation.

Presentations: Robert Schneeman

Publication: N/A

Attachments: • Redline copy of San Angelo Development Corporation Guidelines for Job Creation Assistance submitted to Council 01-03-12

• Background memo from 12-20-11 revised for 01-03-12 meeting • Minute Excerpt from 01-03-12 Council Meeting

CITY OF SAN ANGELO DEVELOPMENT CORPORATION

GUIDELINES FOR JOB CREATION ASSISTANCE The City of San Angelo Development Corporation (COSADC) is a non-profit public corporation governed by the Development Corporation Act of 1979 and organized exclusively for the purpose of promoting community development within the City and the State of Texas in order to improve the quality of life and the public welfare of, for, and on behalf of the City by developing, implementing, providing, and financing projects allowed under Section 4B of the Act. The COSADC accomplishes these purposes by developing and maintaining a viable working relationship between the public and private sectors of San Angelo, and furthering the development of commercial, industrial, and manufacturing enterprises to promote and encourage employment for the public welfare and benefit of the citizens of San Angelo.

Mission Statement:

The City of San Angelo Development Corporation will seek to retain, strengthen and diversify the tax and job base of the

community through quality infrastructure and facility improvements, innovative incentive packages and a focus on

best business practices in order to provide a sustainable economy for San Angelo and its regional partners.

Periodically, the COSADC receives requests for assistance from individuals or organizations for various projects. All offers or requests for assistance will be received through the Chamber of Commerce Vice President of Economic Development or the COSADC’s Business Relations Officer. If such requests are to be heard by the COSADC Board, they must be in writing. The following outlines those projects which may be considered for assistance by the COSADC: Eligible Projects As defined in the Development Corporation Act of 1979, as amended, "Project" shall mean the land, buildings, equipment, facilities, expenditures, targeted infrastructure, and improvements (one or more) that are for the creation or retention of primary jobs and that are found by the Board to be required or suitable for the development, retention, or expansion of manufacturing and industrial facilities, research and development facilities, transportation facilities (including but not limited to airports, mass commuting facilities, and parking facilities), sewage or solid waste disposal facilities, recycling facilities, air or water pollution control facilities, facilities for the furnishing of water to the general public, distribution centers, small warehouse facilities capable of serving as decentralized storage and distribution centers, primary job training facilities for use by institutions of higher education, and regional or national corporate headquarters*.

City of San Angelo Development Corporation Guidelines for Job Creation Assistance Approved March 14, 2007December 20, 2011

In addition, "Primary job" means (A) a job that is: (i) available at a company for which a majority of the products or services of that company are ultimately exported to regional, statewide, national, or international markets infusing new dollars into the local economy; and, (ii) included in one of the following sectors of the North American Industry Classification System (NAICS): Sector # Description 111 Crop Production 112 Animal Production 113 Forestry and Logging 11411 Commercial Fishing 115 Support Activities for Agriculture and Forestry 211-213 Mining 221 Utilities 311-339 Manufacturing 42 Wholesale Trade 48-49 Transportation and Warehousing 51 (excluding 51213 Information (excluding movie theaters and drive-in

theaters) 523-525 Securities, Commodity Contracts, and Other Financial Investments

and Related Activities; Insurance Carriers and Related Activities; Funds, Trusts, and Other Financial Vehicles

5413, 5415, Scientific Research and Development Services 5416, 5417 and 5419 551 Management of Companies and Enterprises 56142 Telephone Call Centers 922140 Correctional Institutions COSADC may consider a project that combines an approved NAICS code with some retail activity when more than 85% of the sales are outside of the Concho Valley retail trade area. (B) a job that is included in North American Industry Classification System (NAICS) sector number 928110, National Security, for the corresponding index entries for Armed Forces, Army, Navy, Air Force, Marine Corps, and Military Bases. *"Corporate headquarters facilities" means buildings proposed for construction or occupancy as the principal office for a business enterprise's administrative and management services. Financing The COSADC administers an Economic Development Incentive Program which is designed to facilitate the development and growth of new and existing businesses, to increase diversity of the local economy and to provide suitable infrastructure to support


targeted industries as allowed under Section 4B of the 1979 Development Corporation Act. Funds are available through grants, loan participations and the Grow San Angelo Fund ensuring efficiency and flexibility while maximizing the resources of participating financial institutions. The COSADC's Economic Development Incentive Program governs the Board's participation in financing. Additional Conditions As a general rule, the COSADC will not provide funding support to any one (1) individual or organization which, when added to the financial assistance already being received from any other source associated with the City of San Angelo, totals more than 50% of the total investment required for a project. Included in the total assistance package may be: • Tax Abatement (using net present value of the abatement) • Financing (using amount COSADC guarantees, participates or lends directly) • Infrastructure Improvements • Land Purchases, leasehold improvements and construction (using amount provided by

COSADC) • Training expense reimbursement • Relocation expense reimbursement for equipment and/or personnel As a general guideline, COSADC will consider one FTE job equal to a minimum of 110% of San Angelo’s Per Capita Income. However, the Board may choose to deviate from this guideline on a case-by-case basis. To determine an applicant's financial viability, each applicant must provide the appropriate financial information, project description, and any additional information requested by the COSADC. All guarantors must also submit the same information; owners of 20% or more will be required to provide a personal guaranty to the COSADC. For each request, staff will make an assessment of public benefit and return, amount of assistance requested compared to total project cost, and the applicant's financial viability. Staff may request the assistance of various local businesspersons, commercial bankers, and/or consultants when making the appropriate assessment. Based upon a recommendation from staff, the COSADC Board will decide whether or not to recommend assistance.

ECONOMIC DEVELOPMENT INCENTIVE PROGRAM

ADMINISTRATIVE POLICY

The purpose of the Economic Development Incentive Program is to provide a financing tool which incorporates recognized economic development philosophies in an effort to stimulate private investment, job creation, productivity and expansion of the local tax base.


The Economic Development Incentive Program is designed to: 1. facilitate the development of new businesses and expansion of existing businesses

which create primary jobs 2. assist in the diversification of the local economy 3. development of the San Angelo Business & Industrial Center 4. encourage the rehabilitation and increased use of existing structures within

designated redevelopment areas of the City.

Financial assistance may be provided by: 1. grants 2. through loan participation(s) with local financial institutions 3. through participation in the Grow San Angelo Fund, an SBA 7(a) guaranty program

administered by the National Development Council Loan assistance will be evaluated based on the following:

• eligibility of the project • feasibility of the project • financial viability of the project

The Board reserves the right to determine the eligibility of a project and the terms and conditions of any loan or grant. Commercial Infrastructure Improvements According to the Development Corporation Act of 1979, as amended, expenditures found by the Board to be required or suitable for infrastructure necessary to promote or develop new or expanded business enterprises limited to streets and roads, rail spurs, water and electric utilities, gas utilities, drainage and related improvements, and telecommunications and Internet improvements are allowed. Due Diligence Credit Analysis Reports for all assistance requests will be prepared by the COSADC Staff (and/or the COSADC’s consultant) and will include a financial analysis of the project, a summary of the business plan, the proposed structure of the financing and the proposal's strengths and weaknesses. Staff has the authority to request the advice of businesspersons and lenders whose expertise may assist staff in making credit recommendations to the COSADC Board. All eligible requests will be presented to the COSADC Incentive Committee* and then to the COSADC Board for consideration with a recommendation from staff for approval or denial. Parties to the project may be invited to attend the committee and/or board meeting and speak on behalf of the project.


*COSADC Incentive Committee is an ad-hoc committee appointed by the COSADC which includes, but is not limited to, local professionals in the areas of accounting, banking and law.

TYPES OF ASSISTANCE GRANTS – The COSADC may assist in the form of a direct cash grant for performance-based job creation, equipment or personnel moving expenses, lease subsidies, building remodeling, building purchase/lease-back, new construction for a client, site improvements, the establishment of a training program, or any other form of assistance that makes San Angelo more competitive for job creation or retention. Grants are typically in a range of $2,000 to $5,000 per new job created or retained. COSADC may provided grants up to $10,000/job in circumstances when companies move headquarter operations to San Angelo, offer highly paid positions for skilled employees, or introduce a new skill-set opportunity with high pay/benefits to our labor market. Minimum job creation and investment thresholds established by COSADC are five (5) new full-time jobs and new investment of at least $125,000. COSADC may waive one or both of these thresholds when designing a “performance-based” incentive that is expected to be paid out at some future date when the thresholds are met. COSADC may also waive these thresholds in the case of job retention projects, or when the assistance of COSADC would help fund a new equipment purchase for a company that would increase their productivity and their competitiveness in the marketplace. LOAN PARTICIPATION - The COSADC may purchase a participation in a financial institution's loan. Collateral securing the loan may be shared on a pro rata basis with the private lender and COSADC, or the private lender may be given a superior lien in the collateral. The COSADC may accept a lower interest rate on its participation balance provided the financial institution agrees to lower the overall interest rate charged the borrower on a pro-rata basis. A financial institution requesting loan assistance from the COSADC shall submit their request in the form of a written commitment letter to the COSADC Staff for review and provide required financial information. GROW SAN ANGELO FUND – The COSADC may provide funds to the Grow America Fund, a national nonprofit, SBA 7(a) lender to establish the Grow San Angelo Fund (GSAF). Funds contributed to GSAF shall be leveraged at a minimum rate of $3 in non COSADC funds for every $1 in COSADC funds. For example: a $25,000 contribution to the GSAF will result in $100,000 in available loan funs for eligible SBA (and COSADC) borrowers in San Angelo [this doesn’t account for NDC matching funds]. The Grow America Fund will be responsible for underwriting, closing and servicing all GSAF loans.


GENERAL POLICY STATEMENTS 1. All grants or loans will be funded out of the COSADC's funds for Economic

Development projects and all principal repayments, interest and late charge income shall be returned to these same funds.

2. Loans will be made on an accrual basis. Payments will be applied first toward

the interest due and the remaining, if any will be applied to principal. 3. The staff of COSADC will be responsible for the administration and collection of

the COSADC's loan portfolio. The staff of the National Development Council will be responsible to the administration and collection of all GSAF loans.

4. The COSADC is an equal opportunity lender and does not discriminate with

regards to race, color, religion, national origin, sex, marital status, age or disability (provided that the applicant has the capacity to enter into a binding contract).

5. In the event of any conflict between this policy and any applicable federal, state

or local statute, the statute shall prevail. 6. This policy may be reviewed annually by the COSADC.

ADDITIONAL POLICY STATEMENTS 1. The COSADC Board shall recommend the City of San Angelo enter into an

Economic Development Agreement by formal adoption of a Resolution. Such Resolutions shall expire after 180 days from the date of adoption unless all necessary documents are received and an Economic Development Agreement is executed, or the COSADC extends the commitment in writing prior to the expiration date. An Economic Development Agreement will be signed by every grantee or borrower. The Economic Development Agreement will govern all approved assistance. The amount of assistance available will be based on the number of full time equivalent, permanent employment positions created or retained by the business, the salary range for each employment position, and the level of capital investment made by the business. The business will agree to refund any financial assistance accepted for jobs not created or other conditions not met as outlined in the Economic Development Agreement and required by the State of Texas.

2. Full time equivalent, permanent jobs are defined as any employee who has

worked two thousand eighty (2,080) hours during a twelve (12) month period in San Angelo, Texas. If an employee hired during a twelve (12) month reporting period, the employee shall be considered a FTE if the employee is hired to work


forty (40) hours per week, and has worked at least 160 hours a month during that period.

3. The business must be located in San Angelo or in the extraterritorial jurisdiction

(ETJ) of San Angelo. If the business is in the ETJ, assistance will be approved subject to concurrence of the Tom Green County Commissioners Court. As allowed by state law, COSADC may participate in a multi-jurisdictional project located outside Tom Green County for projects of a size and scope that would be available to San Angelo residents and have a positive impact of the City of San Angelo.

4. The business may not move outside of the San Angelo ETJ without prior written

consent of the COSADC. 5. Job retention is defined as a continued job which would have been eliminated

without financial assistance. Documentation of potential job elimination will be required.

6. Loans from relatives, owners or other individuals shall be subordinated to the

COSADC's loan. 7. All credit and collateral documents required by prudent lending practices must be

included in the loan package at closing. A required document may not be waived except with the full knowledge and approval of the Board.

8. A sale of all or substantially all of the assets of a business assisted by the

COSADC shall not release the business from its duties and responsibilities to COSADC under the terms of the Economic Development Agreement and shall not result in the assignment of the Agreement by such acquiring entity without prior written release from COSADC which will not be unreasonably withheld; provided, that the proposed successor shall have the financial condition to fully satisfy the duties and responsibilities and agrees to assume the responsibilities under the Agreement. COSADC may, in its sole discretion, reasonably determine whether such proposed successor’s financial condition is satisfactory.

9. In the event of any proposed merger or other consolidation of an assisted business

with any third party not affiliated with the business, the business shall at least thirty (30) days prior to any such merger or consolidation provide COSADC with information and assurance reasonably acceptable to COSADC and the business regarding: (1) the surviving entity’s assumption and satisfaction of the Agreement obligations and (2) the financial condition of the surviving entity upon such merger or other consolidation to demonstrate that the surviving entity shall have the financial condition to fully satisfy the duties and responsibilities of said Agreement. Failure to provide such information shall be considered an Agreement breach.


10. Notwithstanding anything in an Economic Development Agreement to the contrary, it is expressly understood and agreed that COSADC shall have no rights to approve or disapprove any sale or merger transaction of any kind involving an assisted business.

APPLICATION FOR COSADC ASSISTANCE

Applicants, requesting assistance, whether through a financial institution or directly, may be required to present the following documents as part of COSADC’s Due Diligence (Administrative Policy – Page 4): 1. The last 3 fiscal year end financial statements and tax returns on the business (if

applicable). 2. The most current interim financial statement of the business (dated less than 90

days from the date of application). 3. A current financial statement on all owners of more than 20% of the business. 4. A current financial statement on all guarantors. 5. A short business plan detailing the project and a description of the business. 6. A list of the jobs to be created/retained by the business during the agreed upon

time frame, and the anticipated salary and benefits for each job classification. If assistance is requested in the form of a loan, the following documents would also be required: 7. The financial institution loan officer's analysis and recommendation of the

applicant for loan assistance (if applicable). 8. The financial institution's credit history on the borrower and credit reports on

cosigners and guarantors. 9. The financial institution's description of the loan's terms and conditions. 10. A list of collateral offered with an estimate of its current market value.

ELIGIBILITY OF APPLICANTS Project eligibility will be determined based on Texas State law applicable to the specific contracting parties.


1. No member of the San Angelo City Council, or person related to a council member within the second degree by consanguinity or affinity, shall be eligible for assistance from the COSADC during his/her tenure or for six months thereafter.

2. No member of the San Angelo Economic Development Corporation Board of

Directors, or person related to a board member within the second degree by consanguinity or affinity, shall be eligible for assistance from the COSADC during his/her tenure or for six months thereafter.

3. No employee of the San Angelo Economic Development Corporation, or person

related to an employee or supervisor of the Department within the second degree by consanguinity or affinity, shall be eligible for assistance from the COSADC during his/her employment or for six months thereafter.

CHARGED-OFF LOANS

When repayment of a loan is recognized by the Staff as being substantially doubtful, a resolution for charging off the balance of the loan will be drafted by staff and presented to the COSADC Board for approval. This resolution will describe the reasons for viewing the repayment of the loan as doubtful, and the amount to be charged off. No specific course of action will be addressed within the resolution, but the following procedures will generally be followed: 1. Charging Off The Loan: A copy of the executed resolution will be distributed to the

San Angelo City Council Department and the loan will be charged off. 2. Financial Responsibility: All interested parties will continue to be pursued

financially. Charge-off of the loan balance will not release a debtor, cosigner or guarantor from their legal liability to repay the loan.

3. Legal Action: When appropriate and economically feasible, legal action to collect a

charged-off loan will be taken. Where applicable, all interested parties will be pursued individually including each borrower, cosigner, and guarantor. Only in cases in which the cost of legal action is greater than the amount to be recovered, will legal action be foregone. The status of any legal proceeding will be reported to the COSADC.

4. Restructuring the Loan: After a loan is charged off, the collection and restructure

of the loan will be the responsibility of staff. The account balances will be maintained by staff in a separate ledger. After being posted to the charge-off ledger, all payments will be deposited into the COSADC's unobligated fund balance.

5. Placement with an Outside Collection Agency: In many cases, a debtor during

financially distressed periods is difficult to locate. If necessary, Staff will consign the


account to an outside agency. The fee for this type of service is usually a percentage of the amount collected by the agency, and no fee is paid if no money is collected. The decision to place an account with an outside collection agency will be made by the Board upon the recommendation of Staff.

6. Contact with a Participating Bank: Contact will be maintained through periodic

verification of the account status with the account officer. This information is subject to the Texas Banking Code and cannot be discussed in an open meeting.

7. Collection Efforts: All collection efforts will be detailed in the credit file in

chronological order. For additional information contact: Chamber of Commerce, Economic Development Telephone: (325) 655-4136 418 West Avenue B Fax: (325) 658-1110 San Angelo, Texas 76901 E-mail: [email protected] [email protected] Or City of San Angelo Development Corporation Telephone: (325) 653-7197 72 W. College Ave. Fax: (325) 653-7187 San Angelo, Texas 76903 E-mail: [email protected] [email protected] NOTE: Proprietary information will be kept confidential to the fullest extent allowed by law. Applicants may request to enter into a Confidentiality Agreement with COSADC staff and/or agents COSADC.

City of San Angelo

Memo Date: August 19, 2013


From: Robert Schneeman, Development Coordinator

Subject: Agenda Item for 12-20-11 Council Meeting

Contact: Robert Schneeman, Development Coordinator 657-4210

Caption: Regular Item

Consideration and possible action regarding a recommendation by the City of San Angelo Development Corporation (COASDC) Board to amend the City of San Angelo Development Corporation Guidelines For Job Creation Assistance section entitled Eligibility of Applicants and revising outdated contact information

Summary: City Council approved the City of San Angelo Guidelines for Job Creation Assistance on March 14, 2007. COSADC has reviewed and recommended Council approval of an update to those guidelines.

History: The current guidelines were approved by Council on March 14, 2011. Since that approval, there have been personnel changes resulting in the need to update the contact information contained in the guidelines. Additionally, there have been a number of questions raised regarding the eligibility guidelines for individuals and / or companies applying for job creation incentives. Since much of the basis for determining the eligibility of the applicants is determined by Texas State law governing development corporations it was decided to revise the eligibility section to reflect that basis in state law as the determining factor. This item was reviewed by the COSADC Board at its meeting of December 14, 2011 and the recommendation for consideration by Council was approved unanimously (4-0) with Director Randy Brooks abstaining.

Financial Impact: None


Staff recommends approval of the proposed revisions.

Attachments: DRAFT Guidelines

Presentation: Robert Schneeman, Development Coordinator

Publication: N/A

Reviewed by Director: Shawn Lewis, Director of Community & Economic Development

Approved by Legal: N/A

robert.schneeman

Polygon

Adopted: 5/30/03 Revised: 1/16/08

City of San Angelo

Memo Date: 8/9/13


From: Tim Vasquez, Chief of Police


Contact: Chief Tim Vasquez, 657-4336

Caption: Regular Agenda Item

Consideration of authorizing staff to negotiate an agreement, in substantially the attached form, with Raul R. Ruiz to design, create, and install a bronze sculpture depicting a policeman together with a child to be installed on the outdoor premises of the headquarters building of the San Angelo Police Department at 401 East Beauregard, San Angelo, Texas, in an amount not to exceed $100,000.00, and authorizing the City Manager to execute an agreement between the City of San Angelo and Raul R. Ruiz

Summary: The San Angelo Police Department is raising funds to construct a memorial for fallen officers. Current plans are to build a sculpture of a policeman and child and have it installed in front of the Police Department. Located on the pedestal will be a list of the officers that have fallen in the line of duty. The Police Department has chosen Ruiz Studio & Gallery in San Angelo to build and install the sculpture. Raul Ruiz has built various sculptures around the City including the ram and ewe in front of the Junell Center, Elmer Kelton sculpture in the Stephens Central Library, and the busts of Eva Tucker and Elmer Kelton at the SAISD Administrative Building.

History: The San Angelo Police Department currently does not have a memorial. Financial Impact: All funds for this project will come from contributions to the Police Department

from the public. There will be no impact to the general fund for this project. The Police Department is requesting approval to spend up to $100,000 for the memorial.

Other Information/Recommendation: Staff recommends approval of the stated caption. Attachments: Contract Presentation: none Reviewed by Service Area Director: Chief Tim Vasquez, Police Department, 8/9/13

SERVICES AGREEMENT OR

PROFESSIONAL SERVICES AGREEMENT

This Agreement is entered into this ___ day of ____________, 2013 (but effective as of

_____________) by and between the City of San Angelo, a Texas home-rule municipal

corporation (“City”) and between Raul R. Ruiz, an individual (“Provider”).

RECITAL

A. City is in need of services for creation of a bronze sculpture depicting a policeman

together with a child to be installed on the outdoor premises of the headquarters building of the

San Angelo Police Department at 401 East Beauregard, San Angelo, Texas (“Services”).

B. Provider possesses all necessary qualifications and expertise to perform Services.

C. City wishes to engage the services of Provider, and Provider wishes to perform

Services for City, under the terms and conditions set forth herein.

D. The recitals are true and correct and are hereby incorporated into and made a part

of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and promises herein

contained, Provider and City agree as follows:

1. TERM

The term of this Agreement shall commence on the Effective Date hereof and shall terminate after

_________________ (__) days of the Effective Date. In the event that Provider is engaged in any

Services on the Expiration Date, then this Agreement shall remain in effect until completion or

termination of Services. No new or additional services at increased cost to City shall be issued after

the Expiration Date; however the ____________(__) day term of this Agreement may be extended

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or amended by written agreement of City and Provider in order for Provider to complete Services at

the same cost to City.

2. SCOPE OF SERVICE

A. Provider agrees to provide Services as specifically described, and under the special terms

and conditions set forth in Exhibit “A” hereto, which by this reference is incorporated

into and made a part of this Agreement.

B. Provider represents and warrants to City that: (i) it possesses all qualifications, licenses

and expertise required for the performance of the Services; (ii) it is not delinquent in the

payment of any sums due City, including payment of permit fees, occupational licenses,

etc., nor in the performance of any obligations to City; (iii) all personnel assigned to

perform Services are and shall be, at all times during the term hereof, fully qualified and

trained to perform the tasks assigned to each; and (iv) Services will be performed in the

manner described in Exhibit “A”.

3. COMPENSATION

A. The amount of compensation payable by City to Provider shall be based on the rates and

schedules described in Exhibit “B” hereto, which by this reference is incorporated into

this Agreement; provided, however, that in no event shall the amount of compensation

exceed ____________________________Dollars ($___________).

B. Unless otherwise specifically provided in Exhibit “B”, payment shall be made within

thirty (30) days after receipt of Provider’s invoice, which shall be accompanied by

sufficient supporting documentation and contain sufficient detail, to allow a proper audit

of expenditures, should City require one to be performed.

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4. OWNERSHIP OF DOCUMENTS

Provider understands and agrees that any information, document, report or any other material

whatsoever which is given by City to Provider or which is otherwise obtained or prepared by

Provider pursuant to or under the terms of this Agreement is and shall at all times remain the

property of City. Provider agrees not to use any such information, document, report or material

for any other purpose whatsoever without the written consent of City, which may be withheld or

conditioned by City in its sole discretion.

5. AUDIT AND INSPECTION RIGHTS

A. City may, at reasonable times, and for a period of up to three (3) years following the date

of final payment by City to Provider under this Agreement, audit, or cause to be audited,

those books and records of Provider which are related to Provider’s performance under

this Agreement. Provider agrees to maintain all such books and records at its principal

place of business for a period of three (3) years after final payment is made under this

Agreement.

B. City may, at reasonable times during the term hereof, inspect Provider’s work and

perform such tests, as City deems reasonably necessary, to determine whether the goods

or services required to be provided by Provider under this Agreement conform to the

terms hereof and/or the terms found in Exhibit “A”, if applicable. Provider shall make

available to City all reasonable access and assistance to facilitate the performance of tests

or inspections by City representatives.

6. AWARD OF AGREEMENT

Provider represents and warrants to City that it has not employed or retained any person or

company employed by City to solicit or secure this Agreement and that it has not offered to pay,

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paid, or agreed to pay any person any fee, percentage, brokerage fee, or gift of any kind

contingent upon or in connection with, the award of this Agreement.

7. PUBLIC RECORDS

Provider understands that the public shall have access, at all reasonable times, to all documents

and information pertaining to City contracts, subject to the provisions of Chapter 552, Texas

Government Code, and agrees to allow access by City and the public to all documents subject to

disclosure under applicable law. Provider’s failure or refusal to comply with the provisions of

this section shall result in the immediate cancellation of this Agreement by City.

8. COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS

Provider understands that agreements between private entities and local governments are subject

to certain laws and regulations, including laws pertaining to public records, conflict of interest,

record keeping, etc. City and Provider agree to comply with and observe all applicable laws,

codes and ordinances as they may be amended from time to time.

9. INDEMNIFICATION

Provider shall indemnify, defend and hold harmless City and its officials, employees and agents

(collectively referred to as “Indemnitees”) and each of them from and against all loss, costs,

penalties, fines, damages, claims, expenses (including attorney’s fees) or liabilities (collectively

referred to as “Liabilities”) by reason of any injury to or death of any person or damage to or

destruction or loss of any property arising out of, resulting from, or in connection with (i) the

performance or non-performance of the services contemplated by this Agreement which is or is

alleged to be directly or indirectly caused, in whole or in part, by any act, omission, default or

negligence (whether active or passive) of Provider or its employees, agents or sub-providers

(collectively referred to as “Provider”), regardless of whether it is, or is alleged to be, caused in

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whole or part (whether joint, concurrent or contributing) by any act, omission, default or

negligence (whether active or passive) of the Indemnitees, or any of them or (ii) the failure of

provider to comply with any of the paragraphs herein or the failure of provider to conform to

statutes, ordinances, or other regulations or requirements of any governmental authority, federal

or state, in connection with the performance of this Agreement. Provider expressly agrees to

indemnify and hold harmless the Indemnitees, or any of them, from and against all liabilities

which may be asserted by an employee or former employee of Provider, or any of its sub-

providers, as provided above, for which provider’s liability to such employee or former

employee would otherwise be limited to payments under state Workers’ Compensation or similar

laws.

10. DEFAULT

If Provider fails to comply with any term or condition of this Agreement, or fails to perform any

of its obligations hereunder, then Provider shall be in default. Upon the occurrence of a default

hereunder City, in addition to all remedies available to it by law, may immediately, upon written

notice to Provider, terminate this Agreement whereupon all payments, advances, or other

compensation paid by City to Provider while Provider was in default shall be immediately

returned to City. Provider understands and agrees that termination of this Agreement under this

section shall not release Provider from any obligation accruing prior to the effective date of

termination. Should Provider be unable or unwilling to commence to perform the Services

within the time provided or contemplated herein, then, in addition to the foregoing, Provider

shall be liable to City for all expenses incurred by City in preparation and negotiation of this

Agreement, as well as all costs and expenses incurred by City in the re-procurement of the

Services, including consequential and incidental damages.

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11. RESOLUTION OF CONTRACT DISPUTES

Provider understands and agrees that all disputes between Provider and City based upon an

alleged violation of the terms of this Agreement by City shall be submitted to the City Manager

for his/her resolution, prior to Provider being entitled to seek judicial relief in connection

therewith. In the event that the amount of compensation hereunder exceeds $25,000.00, the City

Manager’s decision shall be approved or disapproved by City Council. Provider shall not be

entitled to seek judicial relief unless: (i) it has first received the City Manager’s written decision,

approved by City Council if the amount of compensation hereunder exceeds $25,000.00, or (ii) a

period of sixty (60) days has expired, after submitting to the City Manager a detailed statement

of the dispute, accompanied by all supporting documentation (ninety (90) days if the City

Manager’s decision is subject to City Council approval); or (iii) City has waived compliance

with the procedure set forth in this section by written instruments, signed by the City Manager.

12. CITY’S TERMINATION RIGHTS

A. City shall have the right to terminate this Agreement, in its sole discretion, at any time,

by giving written notice to Provider at least five (5) business days prior to the effective

date of such termination. In such event, City shall pay to Provider compensation for

services rendered and expenses incurred prior to the effective date of termination. In no

event shall City be liable to Provider for any additional compensation, other than that

provided herein, or for any consequential or incidental damages.

B. City shall have the right to terminate this Agreement, without notice to Provider, upon the

occurrence of an event of default hereunder. In such event, City shall not be obligated to

pay any amounts to Provider and Provider shall reimburse to City all amounts received

while Provider was in default under this Agreement.

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13. INSURANCE

Provider shall, at all times during the term hereof, maintain such insurance coverage as may be

required by City. All such insurance, including renewals, shall be subject to the approval of City

for adequacy of protection and evidence of such coverage shall be furnished to City on

Certificates of Insurance indicating such insurance to be in force and effect and providing that it

will not be canceled during the performance of the services under this contract without thirty

(30) calendar days prior written notice to City. Completed Certificates of Insurance shall be filed

with City prior to the performance of services hereunder, provided, however, that Provider shall

at any time upon request file duplicate copies of the policies of such insurance with City.

If, in the judgment of City, prevailing conditions warrant the provision by Provider of

additional liability insurance coverage or coverage which is different in kind, City reserves the

right to require the provision by Provider of an amount of coverage different from the amounts or

kind previously required and shall afford written notice of such change in requirements thirty

(30) days prior to the date on which the requirements shall take effect. Should provider fail or

refuse to satisfy the requirement of changed coverage within thirty (30) days following City’s

written notice, this Contract shall be considered terminated on the date that the required change

in policy coverage would otherwise take effect.

14. INDEMNIFICATION

A. GENERAL INDEMNIFICATION. PROVIDER AGREES TO INDEMNIFY,

DEFEND, AND HOLD CITY, ITS COUNCIL MEMBERS, BOARD AND

COMMISSION MEMBERS, OFFICIALS, AGENTS, GUESTS, INVITEES,

CONSULTANTS AND EMPLOYEES FREE AND HARMLESS FROM AND

AGAINST ANY AND ALL CLAIMS, DEMANDS, PROCEEDINGS, SUITS,

JUDGMENTS, COSTS, PENALTIES, FINES, DAMAGES, LOSSES,

ATTORNEYS’ FEES AND EXPENSES ASSERTED BY ANY PERSON OR

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PERSONS, INCLUDING AGENTS OR EMPLOYEES OF PROVIDER OR CITY,

BY REASON OF DEATH OR INJURY TO PERSONS, OR LOSS OR DAMAGE

TO PROPERTY, RESULTING FROM OR ARISING OUT OF, THE VIOLATION

OF ANY LAW OR REGULATION OR IN ANY MANNER ATTRIBUTABLE TO

ANY ACT OF COMMISSION, OMISSION, NEGLIGENCE OR FAULT OF

PROVIDER, ITS AGENTS OR EMPLOYEES, OR THE JOINT NEGLIGENCE

OF PROVIDER AND ANY OTHER ENTITY, AS A CONSEQUENCE OF ITS

EXECUTION OR PERFORMANCE OF THIS AGREEMENT OR SUSTAINED

IN OR UPON THE PREMISES, OR AS A RESULT OF ANYTHING CLAIMED

TO BE DONE OR ADMITTED TO BE DONE BY PROVIDER HEREUNDER.

THIS INDEMNIFICATION SHALL SURVIVE THE TERM OF THIS

AGREEMENT AS LONG AS ANY LIABILITY COULD BE ASSERTED.

NOTHING HEREIN SHALL REQUIRE PROVIDER TO INDEMNIFY, DEFEND,

OR HOLD HARMLESS ANY INDEMNIFIED PARTY FOR THE INDEMNIFIED

PARTY’S OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

B. PROSPECTIVE APPLICATION. ANY AND ALL INDEMNITY PROVIDED

FOR IN THIS AGREEMENT SHALL SURVIVE THE EXPIRATION OF THIS

AGREEMENT AND THE DISCHARGE OF ALL OTHER OBLIGATIONS

OWED BY THE PARTIES TO EACH OTHER HEREUNDER AND SHALL

APPLY PROSPECTIVELY NOT ONLY DURING THE TERM OF THIS

AGREEMENT BUT THEREAFTER SO LONG AS ANY LIABILITY

(INCLUDING BUT NOT LIMITED TO LIABILITY FOR CLOSURE AND POST

CLOSURE COSTS) COULD BE ASSERTED IN REGARD TO ANY ACTS OR

OMISSIONS OF PROVIDER IN PERFORMING UNDER THIS AGREEMENT.

C. RETROACTIVE APPLICATION. THE INDEMNITY PROVIDED FOR IN THIS

AGREEMENT SHALL EXTEND NOT ONLY TO CLAIMS AND ASSESSMENTS

OCCURRING DURING THE TERM OF THIS AGREEMENT BUT

RETROACTIVELY TO CLAIMS AND ASSESSMENTS WHICH MAY HAVE

OCCURRED DURING THE TERM OF PREVIOUS AGREEMENTS BETWEEN

CITY AND PROVIDER.

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D. APPLICATION TO SURROUNDING PROPERTY, THE INDEMNIFICATION

PROVISIONS OF THIS AGREEMENT EXTEND TO CLAIMS AND

ASSESSMENTS RELATING TO RUNOFF, LEACHATE, OR OTHER

INFILTRATION THAT MAY OCCUR OR HAS OCCURRED AT OR NEAR

THE SITE OF LANDFILLS, TRANSFER STATIONS, OR OTHER SOLID

WASTE FACILITIES AND SURROUNDING AREAS WHICH ARE OR WERE

USED BY PROVIDER, DURING THE TERM OF THIS CONTRACT OR

PREVIOUS AGREEMENTS BETWEEN CITY AND PROVIDER. THIS

SECTION DOES NOT MAKE PROVIDER LIABLE FOR ANY SITE IT HAS

NEVER USED, CLOSED, MANAGED OR MONITORED.

15. INSURANCE

A. GENERAL CONDITIONS. The following conditions shall apply to all insurance

policies obtained by Provider for the purpose of complying with this Agreement.

1) Satisfactory Companies. Coverage shall be maintained with insurers and

under forms of policies satisfactory to City and with insurers licensed to do business in

Texas.

2) Named Insureds. All insurance policies required herein shall be drawn in

the name of Provider, with City, its council members, board and commission members,

officials, agents, guests, invitees, consultants and employees named as additional

insureds, except on Workers’ Compensation coverage.

3) Waiver of Subrogation. Provider shall require its insurance carrier(s), with

respect to all insurance policies, to waive all rights of subrogation against City, its council

members, board and commission members, officials, agents, guests, invitees, consultants

and employees.

4) Certificates of Insurance. At or before the time of execution of this

Agreement, Provider shall furnish City’s Risk Manager with certificates of insurance as

evidence that all of the policies required herein are in full force and effect and provide the

required coverage and limits of insurance. All certificates of insurance shall clearly state

that all applicable requirements have been satisfied. The certificates shall provide that

any company issuing an insurance policy shall provide to City not less than thirty (30)

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days advance notice in writing of cancellation, non-renewal, or material change in the

policy of insurance. In addition, Provider and insurance company shall immediately

provide written notice to City’s Risk Manager upon receipt of notice of cancellation of

any insurance policy, or of a decision to terminate or alter any insurance policy. Copies

of required endorsements will be attached to the certificates to confirm the required

endorsements are in effect. Certificates of insurance and notices of cancellations,

terminations, or alterations shall be furnished to City’s Risk Manager at City Hall, 72 W.

Beauregard Ave., San Angelo, Texas 76903.

5) Provider’s Liability. The procurement of such policy of insurance shall not

be construed to be a limitation upon Provider’s liability or as a full performance on its

part of the indemnification provisions of this Agreement. Provider’s obligations are,

notwithstanding any policy of insurance, for the full and total amount of any damage,

injury or loss caused by or attributable to its activities conducted at or upon the premises.

Failure of Provider to maintain adequate coverage shall not relieve Provider of any

contractual responsibility or obligation.

6) Sub-providers’ Insurance. Provider shall cause each Sub-Provider and

Sub-Sub-Provider of Provider to purchase and maintain insurance of the types and in the

amounts specified below. Provider shall require Sub-providers and Sub-Sub-Providers to

furnish copies of certificates of insurance to Provider’s Risk Manager evidencing

coverage for each Sub-Provider and Sub-Sub-Provider.

B. TYPES AND AMOUNTS OF INSURANCE REQUIRED. Provider shall obtain and

continuously maintain in effect at all times during the term hereof, at Provider’s sole expense,

insurance coverage as follows with limits not less than those set forth below:

1) Commercial General Liability. This policy shall be an occurrence-type

policy and shall protect provider and additional insureds against all claims arising from

bodily injury, sickness, disease or death of any person (other than provider’s employees)

and damage to property of the City or others arising out of the act or omission of provider

or its agents and employees. This policy shall also include protection against claims for

the contractual liability assumed by Provider under the paragraph of this Agreement

entitled “Indemnification,” including completed operations, products liability, contractual

coverage, broad form property coverage, explosion, collapse, underground,

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premises/operations, and independent providers (to remain in force for two years after

final payment). Coverage limits shall not be less than:

$ 500,000.00 General Aggregate $ 500,000.00 Products – Completed Operations $ 500,000.00 Personal & Advertising Injury $ 500,000.00 Each Occurrence $ 50,000.00 Fire Damage (any one fire) 2) Business Automobile Liability. This policy shall be written in

comprehensive form and shall protect Provider and the additional insureds against all

claims for injuries to members of the public and damage to property of others arising

from the use of motor vehicles and shall cover operation on and off the premises of all

motor vehicles licensed for highway use, whether they are owned, non-owned or hired.

Coverage shall not be less than:

$ 500,000.00 Each Accident Limit or the following: $ 500,000.00 Bodily Injury – Per Accident $ 250,000.00 Bodily Injury – Per Person $ 100,000.00 Property Damage – Per Accident 3) Workers’ Compensation and Employer’s Liability. If Provider hires any

employees, Provider shall maintain Workers’ Compensation and Employer’s Liability

insurance, which shall protect provider against all claims under applicable state workers’

compensation laws and employer’s liability. The insured shall also be protected against

claim for injury, disease or death of employees which for any reason, may not fall within

the provisions of a workers’ compensation law. Coverage shall not be less than:

Statutory Amount Workers’ Compensation

$ 100,000.00 Employer’s Liability, Each Accident $ 100,000.00 Employer’s Liability, Disease - Each Employee $ 500,000.00 Employer’s Liability, Disease – Policy Limit

The foregoing requirement will not be applicable if, and so long as, Provider qualifies as

a self-insurer under the rules and regulations of the commission or agency administering

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the workers’ compensation program in Texas and furnishes evidence of such

qualification to City in accordance with the notice provisions of this Agreement.

If Provider uses contract labor, Provider shall require its sub-provider to maintain the

above referenced coverage and furnish copies of certificates of insurance as required

herein.

16. NONDISCRIMINATION

Provider represents and warrants to City that Provider does not and will not engage in

discriminatory practices and that there shall be no discrimination in connection with Provider’s

performance under this Agreement on account of race, color, sex, religion, age, handicap, marital

status or national origin. Provider further covenants that no otherwise qualified individual shall,

solely by reason of his/her race, color, sex, religion, age, handicap, marital status or national

origin, be excluded from participation in, be denied services, or be subject to discrimination

under any provision of this Agreement.

17. ASSIGNMENT

This Agreement shall not be assigned by Provider, in whole or in part, without the prior written

consent of City, which may be withheld or conditioned, in City’s sole discretion.

18. NOTICES

All notices or other communications required under this Agreement shall be in writing and shall

be given by hand-delivery or by registered or certified U.S. Mail, return receipt requested,

addressed to the other party at the address indicated herein or to such other address as a party

may designate by notice given as herein provided. Notice shall be deemed given on the day on

which personally delivered; or, if by mail, on the fifth day after being posted or the date of actual

receipt, whichever is earlier.

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TO CITY: TO PROVIDER:

City of San Angelo Raul R. Ruiz Attn: Tim R. Vaquez 76 North Chadbourne San Angelo, Texas 76902 San Angelo, Texas 76903 Phone: (325) 657-4338 Phone: (325) 655-0832

19. MISCELLANEOUS PROVISIONS

A. This Agreement shall be construed and enforced according to the laws of the State of

Texas.

B. Title and paragraph headings are for convenient reference and are not a part of this

Agreement.

C. No waiver or breach of any provision of this Agreement shall constitute a waiver of any

subsequent breach of the same or any other provision hereof, and no waiver shall be

effective unless made in writing.

D. Should any provision, paragraph, sentence, word or phrase contained in this Agreement

be determined by a court of competent jurisdiction to be invalid, illegal or otherwise

unenforceable under the laws of the State of Texas or City of San Angelo, such provision,

paragraph, sentence, word or phrase shall be deemed modified to the extent necessary in

order to conform with such laws, or if not modifiable, then same shall be deemed

severable, and in either event, the remaining terms and provisions of this Agreement shall

remain unmodified and in full force and effect or limitation of its use.

E. This Agreement constitutes the sole and entire agreement between the parties hereto. No

modification or amendment hereto shall be valid unless in writing and executed by

properly authorized representatives of the parties hereto.

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20. SUCCESSORS AND ASSIGNS

This Agreement shall be binding upon the parties hereto, their heirs, executors, legal

representatives, successors, or assigns.

21. INDEPENDENT CONTRACTOR

Provider has been procured and is being engaged to provide services to City as an independent

contractor, and not as an agent or employee of City. Accordingly, Provider shall not attain, nor

be entitled to, any rights or benefits under the Civil Service or Pension Ordinances of City, nor

any rights generally afforded classified or unclassified employees. Provider further understands

that Texas Workers’ Compensation benefits available to employees of City are not available to

Provider, and agrees to provide workers’ compensation insurance for any employee or agent of

Provider rendering services to City under this Agreement.

22. CONTINGENCY CLAUSE

Funding for this Agreement is contingent on the availability of funds and continued authorization

for program activities and the Agreement is subject to amendment or termination due to lack of

funds, reduction of funds and/or change in regulations, upon thirty (30) days notice.

23. REAFFIRMATION OF REPRESENTATIONS

Provider hereby reaffirms all of the representations contained in this Agreement and included in

Exhibit “A”.

24. DOCUMENTS OF INCORPORATION

This Agreement is expressly made subject to all exhibits hereto, to all of the exhibits, provisions,

requirements, federal, state and local laws, rules and regulations as of the effective date herein,

and to any and all requirements, whether federal, state or local, verbal or written, placed upon

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City. All of the foregoing are hereby made a part of this Agreement and incorporated herein by

reference as if fully set out herein.

25. ENTIRE AGREEMENT

This instrument and its exhibits constitute the sole and only agreement of the parties relating to

the subject matter hereof and correctly set forth the rights, duties, and obligations of each to the

other as of its date. Any prior agreements, promises, negotiations, or representations not

expressly set forth in this Agreement are of no force or effect.

26. COUNTERPARTS

This Agreement may be executed in two or more counterparts, each of which shall constitute an

original but all of which, when taken together, shall constitute one and the same agreement.

[Signature Page to Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be

executed by their respective officials thereunto duly authorized, this the day and year above

written.

“City” CITY OF SAN ANGELO, a municipal corporation ATTEST: _________________________ By: ______________________________ Alicia Ramirez, City Clerk Daniel Valenzuela, City Manager

“Provider” RAUL R. RUIZ, an individual

By: __________________________________, Raul R. Ruiz ATTEST: _________________, Secretary

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SERVICES AGREEMENT OR

PROFESSIONAL SERVICES AGREEMENT BETWEEN CITY OF SAN ANGELO, TEXAS

AND RAUL R. RUIZ

APPROVED AS TO FORM AND APPROVED AS TO INSURANCE CORRECTNESS: REQUIREMENTS: Lysia H. Bowling, City Attorney John Seaton, Risk Manager APPROVED AS TO CONTENT: Tim R. Vasquez, Chief of Police

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EXHIBIT “A”

SCOPE OF SERVICE FOR POLICEMAN AND CHILD SCULPTURE

(“SCULPTURE”) 1.0 DESIGN THE SCULPTURE

Provider will present a drawing, draft, or other accurate visual representation of the intended design of the sculpture to City for approval and shall not proceed or perform services beyond the design phase of the sculpture without approval or authorization by City.

1.1 CREATE FULL-SIZE MAQUETTE OF SCULPTURE Provider will present to City for approval, a full scale sculpted maquette that accurately depicts the final bronze casted sculpture nor shall the Provider proceed or perform services beyond the phase of sculpting the maquette without authorized by City.

1.2 SCULPT AND PRODUCE ONE (1) APPROXIMATELY SIX (6) FOOT

SCULPTURE, TO BE CAST IN BRONZE AT FOUNDRY OF PROVIDER’S CHOICE, CHASING TO BE APPROVED BY PROVIDER

1.3 APPROVAL OF PATINA AND FINALIZE SCULPTURE

Provider will obtain approval from City for selection of patina and finalize completed casted sculpture.

1.4 DELIVER TO AND INSTALL COMPLETED BRONZE SCULPTURE AT SITE

Completed bronze sculpture depicting a policeman together with a child shall installed on the outdoor premises of the headquarters building of the San Angelo Police Department at 401 East Beauregard, San Angelo, Texas (“Site”).

1.5 SPECIAL CONSIDERATIONS:

Provider may employ subcontractors for any or all of these tasks, except for design and sculpting.

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EXHIBIT “B”

PAYMENT SCHEDULE Provider shall provide Services under this Agreement as specified in Exhibit “A” of this Agreement for a sum not to exceed ________________________. Payments under this Agreement shall be in accordance with the payment schedule set out hereunder: 1.0 EFFECTIVE DATE OF CONTRACT

City shall provide Provider on or before the effective date of the Agreement a sum not to exceed ______________.

1.1 COMPLETION AND APPROVAL OF MAQUETTE

Upon Provider’s completion of maquette and City’s approval of maquette, City shall provide Provider a sum not to exceed ______________.

1.2 COMPLETION OF BRONZE CASTING AND SELECTION OF PATINA

Upon Provider’s production of the bronze casted sculpture and approval of final patina by City, City shall provide Provider a sum not to exceed ______________.

1.4 DELIVERY AND INSTALLATION OF THE COMPLETED BRONZE

SCULPTURE AT SITE Upon Provider’s delivery to and installation of final and completed sculpture to “Site”, City shall provide Provider a sum not to exceed ______________.

City of San Angelo Finance Department



From: Morgan Chegwidden, Budget Manager


Contact: Morgan Chegwidden, Budget Manager, 653-6291


Discussion and consideration of matters related to the fiscal year 2013-2014 budget including:

a. First Public Hearing of a proposed property tax levy for the City of San Angelo for the 2013 tax year;

b. FIRST PUBLIC HEARING AND INTRODUCTION OF AN ORDINANCE OF THE CITY OF SAN ANGELO APPROVING AND ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2013, AND ENDING SEPTEMBER 30, 2014; ADOPTING EMPLOYEE COMPENSATION SCHEDULES; PROVIDING FOR THE GENERAL APPROPRIATION OF FUNDS; RESERVING UNTO THE CITY COUNCIL THE AUTHORITY TO TRANSFER APPROPRIATIONS BUDGETED; RATIFYING TRANSFERS OF APPROPRIATIONS OCCURRING IN THE 2012-2013 FISCAL YEAR AND AMENDING THAT BUDGET ORDINANCE ACCORDINGLY; RESERVING UNTO THE CITY COUNCIL THE POWER, ONLY AS PERMITTED BY LAW, TO AMEND OR MAKE CHANGES IN THE BUDGET FOR MUNICIPAL PURPOSES; PROVIDING AUTHORITY FOR THE CITY MANAGER OR HIS DESIGNEE TO MAKE CERTAIN ADJUSTMENTS FROM TIME TO TIME IN OR BETWEEN BUDGETED ALLOCATIONS; AND, PROVIDING FOR FILING OF THE BUDGET

THIS BUDGET WILL RAISE MORE TOTAL PROPERTY TAXES THAN LAST YEAR’S BUDGET BY $711,686 (2.52%), AND OF THAT AMOUNT, $318,837 IS TAX REVENUE TO BE RAISED FROM NEW PROPERTY ADDED TO THE TAX ROLL THIS YEAR

c. Conduct a separate record vote to ratify the property tax increase of 2.52% as reflected in the newly adopted budget and place the adoption of this tax rate increase on the agenda for the September 3, 2013 regular meeting of the City Council as an action item.

Summary: Part A: This is the first public hearing on the proposed tax rate. A vote of record indicating the City Council will in fact levy a property tax was taken August 6, 2013. The proposed tax rate remains the same as the prior year’s tax rate of 0.781/$100 valuation; however, City Council will continue to discuss with staff direction on whether to change the property tax rate for fiscal year 2013-2014. If the proposed tax rate is adopted, the rate per one hundred dollar ($100) valuation of

property subject to taxation in the City of San Angelo for the 2013-2014 fiscal year will be applied as follows:

i. To pay annual interest and maturities and create a sinking fund to discharge outstanding bonded indebtedness of the City of San Angelo $0.08000

ii. For the purposes of maintenance and operations in the

General Fund $0.70100 The total tax rate for the aforementioned purposes is: $0.78100

Part B: This is the first public hearing and introduction of the budget ordinance for the fiscal year beginning October 1, 2013 and ending September 30, 2014. The ordinance appropriates funds for the 2013-2014 Fiscal Year (Exhibit A), and approves the Pay Schedule for all City employees (Exhibit B). It also determines and approves budget amendment authorizations for the City Council and the City Manager. Lastly, the ordinance authorizes the City Manager to apply for the grants listed in Exhibit C and execute any documents related to the grants, including agreements accepting those listed grants. Exhibits A (consolidated statement of funds) and B (pay plans) of the budget ordinance have not yet been approved and are pending further direction from Council and Management. History: Staff has discussed with Council during June, July, and August 2013 the budget priorities, budget process, and proposed property tax rate of $0.7810/$100 valuation. City Council held a record vote to propose no more than $0.7810/$100 valuation on August 6, 2013. The proposed budget is based on the $0.7810/$100 valuation. Financial Impact: See the attached budget ordinance and related exhibits. Related Vision Item (if applicable): Financial Vision. Other Information/Recommendation: Staff recommends approval of the budget ordinance as presented. Attachments: Budget Ordinance and Exhibits A – C; Financial Summary (Proposed Budget)

for the 2013-2014 Budget Presentation: By Morgan Chegwidden, Budget Manager Publication: August 9, 2013 – Notice of Effective Tax Rate August 12, 2013 – Notice of Public Hearing on the City Budget informing the

citizens of the public hearings on August 20 and September 3, 2013. Reviewed by Director: Tina Bunnell, Finance Director

NOTICE OF EFFECTIVE TAX RATE

2013 Property Tax Rates in CITY OF SAN ANGELO This notice concerns the 2013 property tax rates for CITY OF SAN ANGELO. It presents information about three tax rates. Last year's tax rate is the actual tax rate the taxing unit used to determine property taxes last year. This year's effective tax rate would impose the same total taxes as last year if you compare properties taxed in both years. This year's rollback tax rate is the highest tax rate the taxing unit can set before taxpayers start rollback procedures. In each case these rates are found by dividing the total amount of taxes by the tax base (the total value of taxable property) with adjustments as required by state law. The rates are given per $100 of property value. Last year's tax rate:

Last year's operating taxes $21,931,931 Last year's debt taxes $2,502,931

Last year's total taxes $24,434,862 Last year's tax base $3,128,663,485 Last year's total tax rate $0.78100/$100 This year's effective tax rate:

Last year's adjusted taxes (after subtracting taxes on lost property)

$24,086,076

÷ This year's adjusted tax base (after subtracting value of new property)

$3,253,759,193

=This year's effective tax rate $0.74025/$100 (Maximum rate unless unit publishes notices and holds hearings.)

This year's rollback tax rate: Last year's adjusted operating taxes (after subtracting taxes on lost property and adjusting for any transferred function, tax increment financing, state criminal justice mandate, and/or enhanced indigent healthcare expenditures)

$21,595,130

÷ This year's adjusted tax base $3,253,759,193 =This year's effective operating rate $0.66369/$100 x 1.08=this year's maximum operating rate $0.71679/$100 + This year's debt rate $0.04096/$100 = This year's total rollback rate $0.75775/$100

CITY OF SAN ANGELO NOTICE OF PUBLIC HEARING This budget will raise more total property taxes than last year’s budget by $711,686 (2.52%), and of that amount $330,840 is tax revenue to be raised from new property added to the tax roll this year. Notice is hereby given that the City Council of the City of San Angelo, Texas, will hold two public hearings on the proposed City Budget for the fiscal year beginning October 1, 2013, and ending September 30, 2014. The hearings will take place during regularly scheduled City Council sessions which will begin at 9:00 a.m., Tuesday, August 20, 2013, and September 3, 2013, at the McNease Convention Center, South Meeting Room, 500 Rio Concho Drive. The complete proposed budget may be examined on weekdays between 8:00 a.m. and 5:00 p.m. in the office of the City Clerk on the second floor of City Hall, 72 W. College Avenue.

City of San Angelo 72 W. College Ave. San Angelo, Texas 76903 Attention: Morgan Chegwidden, Budget Manager

AN ORDINANCE OF THE CITY OF SAN ANGELO APPROVING AND ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2013, AND ENDING SEPTEMBER 30, 2014; ADOPTING EMPLOYEE COMPENSATION SCHEDULES; PROVIDING FOR THE GENERAL APPROPRIATION OF FUNDS; RESERVING UNTO THE CITY COUNCIL THE AUTHORITY TO TRANSFER APPROPRIATIONS BUDGETED; RATIFYING TRANSFERS OF APPROPRIATIONS OCCURRING IN THE 2012-2013 FISCAL YEAR AND AMENDING THAT BUDGET ORDINANCE ACCORDINGLY; RESERVING UNTO THE CITY COUNCIL THE POWER, ONLY AS PERMITTED BY LAW, TO AMEND OR MAKE CHANGES IN THE BUDGET FOR MUNICIPAL PURPOSES; PROVIDING AUTHORITY FOR THE CITY MANAGER OR HIS DESIGNEE TO MAKE CERTAIN ADJUSTMENTS FROM TIME TO TIME IN OR BETWEEN BUDGETED ALLOCATIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO APPLY FOR CERTAIN GRANTS AND EXECUTE ANY RELATED DOCUMENTS; AND, PROVIDING FOR FILING OF THE BUDGET.

WHEREAS, a budget for the fiscal year beginning October 1, 2013, and ending September 30, 2014, has been proposed and submitted by the City Manager to the City Council as required by law; and, WHEREAS, the proposed budget has been filed with the City Clerk and has been posted on the website for the City of San Angelo, for inspection by any person for more than fifteen (15) days immediately prior to the public hearing upon said budget and more than thirty (30) days prior to a tax levy for the fiscal year; and, WHEREAS, proper notice of public hearing upon this budget has been posted and published in accordance with applicable law; and, WHEREAS, the City Council has conducted the necessary public hearings as required by law; and, WHEREAS, after a full and final consideration of the financial condition and estimated revenues and proposed expenditures as set forth in the budget as filed and amended, it is the consensus of opinion of the Council that the budget as filed and amended should be approved. NOW THEREFORE, BE IT ORDAINED BY THE CITY OF SAN ANGELO, TEXAS, THAT:

SECTION 1 The facts and matters set forth in the preamble of this Ordinance are found to be true and correct.

SECTION 2 The proposed budget as filed with the City Clerk and as amended by the

City Council, for the fiscal year October 1, 2013, through September 30, 2014, (hereinafter the “Budget”) is hereby approved and adopted. A copy of the Budget, as amended, approved, and

adopted, is attached hereto as Exhibit “A” and made a part hereof for all purposes. SECTION 3 The Competitive Pay Plan Grade and Step Tables for Fire and Police Civil

Service employees and the Salary Ranges for all other City employees set forth in the Budget are attached hereto as Exhibit “B” and made a part hereof for all purposes. Employee compensation schedules that are in accordance with the Competitive Pay Plan and Grade Step Tables for Fire and Police Civil Service employees and the Salary Ranges for all other City employees as set forth are hereby authorized.

SECTION 4 By virtue of the adoption of the Budget, there are hereby appropriated out

of available cash funds and out of the general and special revenues of the City that will be received in the treasury during the course of the 2013-2014 fiscal year, the amounts set forth in the Budget for the purposes therein stated.

SECTION 5 The City Council reserves the authority to transfer appropriations budgeted

from one account or activity to another within the objects covered by the Budget. All transfers of appropriations budgeted from one account or activity to another within the objects of the budget for the fiscal year 2012-2013, are hereby ratified and the Budget Ordinance for fiscal year 2012-2013, heretofore enacted by the City Council, be, and the same is hereby, amended to the extent of such transfers for all purposes.

SECTION 6 The expenditures of the City shall be made in accordance with the

financial summaries included within the Budget approved by this ordinance provided however: 1. The City Council may, from time to time and as permitted by law, amend

this ordinance to authorize changes that increase or decrease the total appropriation of any fund or otherwise make changes in the budget for municipal purposes.

2. The City Manager or his designee is authorized to approve changes that

move budgeted amounts between accounts within a fund. 3. The City Manager is authorized to implement a “vacancy rate” which

allows him to freeze budgeted payroll sums associated with unfilled positions.

4. The City Manager is authorized to approve budget amendments that reduce

the total amount of budgeted revenues and expenditures in a fund. Under this authorization the reduction in budgeted expenditures must equal or exceed any reduction in budgeted revenues.

SECTION 7 Certain grants are identified in the Budget, and where possible estimated

revenues and expenditures are included as listed on Exhibit “C”, attached hereto and made a part hereof for all purposes. The City Manager or his designee is hereby authorized to apply for those grants and execute any related documents.

SECTION 8 The Budget as amended and adopted shall be filed with the City Clerk and

posted on the City’s website. The City Clerk is hereby directed to provide a certified copy of this budget ordinance and the Budget as amended, approved and adopted to the County Clerk of Tom Green County for recording after final passage hereof. SECTION 9 Should any section, provision, clause, or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this ordinance shall not be affected thereby.

INTRODUCED on the day of , 2013, and finally PASSED,

APPROVED and ADOPTED on this the day of , 2013.

YES NO CITY OF SAN ANGELO, TEXAS Dwain Morrison, Mayor Rodney Fleming, SMD #1 Marty Self, SMD #2 Johnny Silvas, SMD #3 Don Vardeman, SMD #4 H.R. Wardlaw III, SMD #5 Charlotte Farmer, SMD #6 ATTEST: Alicia Ramirez, City Clerk

Approved as to Content Approved as to Form Tina Bunnell, Finance Director Lysia H. Bowling, City Attorney

Exhibit A(1 of 2)

Exhibit A (2 of 2)

Exhibit B (1 of 2)

Exhibit B (2 of 2)

City of San Angelo Budget Ordinance Exhibit C City Council authorized application for the following grants: 1115 Healthcare Transformation Waiver Atmos Energy Grant Bureau of Justice Assistance Edward Byrne Memorial Local Justice Assistance Grant Community Development Block Grant Emergency Food and Shelter Program Grant Emergency Management Performance Grant Environmental Health Service and Bureau of Regional Local Health Operations Grant Federal Aviation Administration Grants - Entitlements and Discretionary FTA New Freedom Program Gang Initiative Grant HOME Grant Office of Justice Programs Bulletproof Vest Partnership Public Health Emergency Preparedness Grant San Angelo Cultural Affairs Council Grant State Events Trust Fund Grant Texas Department of Transportation Routine Airport Maintenance Program Texas Department of Transportation Click It or Ticket Grant Title III C-1 (Congregate Nutrition Services) Transit and Transportation Planning Grants - Federal and State Women, Infant, and Children Grant

Exhibit C

City of San Angelo

Memo Date:

To: Mayor and Council Members

From: Carl White, Parks & Recreation Director


Contact: Carl White, 325-234-1724


Consideration of matters related to the river project including: a. prioritizing and approving additional improvements to the River Project with

remaining dedicated funds for the project. b. approving change order #16 to include drip irrigation to allow for the watering

of existing trees along the river under the agreement with Templeton Construction, Co., Inc., Construction Manager at Risk, for the Concho River & Parks Rehabilitation Project (PK-05-10), Part 16A for $154,612.86 and/or Part 16B for $142,638.09, and requesting approval for said amounts to be funded by River Project contingency funds and authorizing the City Manager to execute said change order.

Summary:

Staff seeks Council’s direction, in terms of priorities and approval, for additional river project improvements with dedicated funds. We also seek Council’s approval for a proposed change order for drip irrigation systems for established trees along the downtown river corridor. At the meeting on July 16, 2013, we presented that about $900,000 will be available for the river project after the contracted portion is complete. Of this, we have set aside: $500,000 previously reserved by Council $48,000 for property purchase (btwn. 19th and 29th Streets) $50,000 for addl. tree work (pruning, removal, planting) Leaving a balance of about $300,000. These funds are dedicated to river improvements and can only be spent as such. The other improvements we’re considering are: $297,251 drip irrigation for river trees $175,000 putt-putt renovations $150,000 addl. signage and wayfinding (unless funded by HOT) $50,000 turn-around and parking area by Koenigheim $15,000 secure loose rocks near art cars $35,000 maintenance drive near pumping station

We are interested in setting up an ad hoc committee, with a couple Council Members, to brainstorm the possibilities of what this area could be and provide direction to move forward.

At a previous council meeting, we presented a budget estimate of $175,000 for drip irrigation of trees along the river downtown. With Council direction, we also looked at primary trees north of Veterans Memorial Drive around the Boy Scout office, YMCA and along the Santa Fe Golf Course adding about 140 trees. The proposal will provide drip irrigation for more than 350 trees from Concho Avenue and First Street. The additional drip irrigation work will extend the contract with Templeton Construction until October 31, 2013. In addition, we will inform Council what the estimated ongoing maintenance cost would be for the drip irrigation systems, primarily in terms of water usage. Because the proposed drip irrigation will/could exhaust the $300,000 balance, we are asking Council for direction to utilize the $500,000 set aside by the previous Council for special projects along the river, including the putt-putt area and other improvements listed above.

History: Staff presented these items in more general terms at the river project update at the July 16, 2013 City Council meeting.

Financial Impact: Approving item “b.” will require the expenditure of $297,250.95, from funds allocated to the River Improvement Project. Ongoing annual costs for maintenance and water usage for the drip irrigation are estimated at $34,000. These funds would need to be added to the Parks/Operations expenditure budget for next fiscal year to be able to operate the drip irrigation systems.

Related Vision Item

(if applicable):

N/A


Staff recommends proceeding with the installation of drip irrigation systems for the river park trees as proposed in the change order.

Attachments: Change Order details from Templeton Construction, Inc.

Presentation: PowerPoint

Publication: N/A


Rick Weise, Assistant City Manager

Approved by Legal:

Distribution: Owner (x ) Architect (x ) CHANGE Contractor (x ) ORDER Field (x ) AIA DOCUMENT G701 Other ( ) _____________________________________________________________________________________________ PROJECT: Concho River & Parks Rehabilitation CHANGE ORDER NUMBER: 16 Project PK-05-10

INITIATION DATE: July 23, 2013

To: Templeton Construction Co., Inc ARCHITECTS PROJECT NO. 111811

CONTRACT FOR: Concho River & Parks Rehab CONTRACT DATE: 2 November 2010 You are directed to make to make the following change in this Contract:

1. Provide Drip Irrigation in accordance with the attached drawings and pursuant to pricing by Farmer’s Daughter. Project completion for this work will be October 31, 2013 Add $ 297,250.95 Submittals are not required on this work.

2. Add 5 calendar days for July rain lost time.

ALL OTHER CONTRACT TERMS AND CONDITIONS REMAIN UNCHANGED.

_____________________________________________________________________ Not valid until signed by both the Owner and Architect. Signature of the Contractor indicates his agreement herewith, including any adjustment in the Contract Sum or Contract Time.

The original (Contract Sum) (Guaranteed Maximum Cost) was: $ 9,300,000.00 Net Change by previously authorized Change Orders: $ 820,432.34 The (Contract Sum) (Guaranteed Maximum Cost) prior to this Change Order was: $ 10,120,432.34 The Contract Sum (Guaranteed Maximum Cost) will be increased by this Change Order $ 297,250.95 The new (Guaranteed Maximum Cost) including this Change Order will be $ 10,417,683.29 The Contract Time will be changed_5 days____ The Date of Substantial Completion as of the date of this Change Order therefore, is: September 17, 2013 except for Drip Irrigation as noted in Item 1 above. AUTHORIZED: Kinney Franke Architects Templeton Construction City of San Angelo ARCHITECT CONTRACTOR OWNER 528 Orient, San Angelo PO Box 3405, San Angelo 106 S Chadbourne, San Angelo Address Address Address Craig Kinney Gary McClure, Its President Daniel Valenzuela, City Manager By By By Date: Date: Date:

July 22, 2013 Mr. David Knapp City of San Angelo 702 S Chadbourne Suite 202 San Angelo, Texas 76903 Re: Concho River Improvements Additional Drip Irrigation Dear David: Pursuant to the request to provide drip irrigation to the project we are pleased to propose the following: Because the project is winding down, Templeton is proposing to utilize ½ time General Conditions beginning from September 14 as that is when the work will be accomplished and we don’t believe full time onsite representation is required. Proposal CO 16A (4 weeks beginning September 14 2013) Farmer’s Daughter $ 136,222.50 TCC GC’s 8,275.50 TCC 7% 10,114.86 Total 154,612.86 Add Proposal CO 16B (3 additional weeks following completion of 16A above) Farmer’s Daughter $ 127,100.00 TCC GC’s 6,206.63 TCC 7% 9,331.46 Total 142,638.09 This will add 7 weeks or 56 calendar days to the contract time. Thank you. Sincerely, Gary McClure

Farmer’s Daughter Landscape 5433 Ben Ficklin Road

San Angelo, Texas 76904

Concho River Project Ref.: Tree Drip Installation Change Order 16A Total Installed Cost: $136,222.50 Installation Time 4 weeks Change Order 16B Total Installed Cost: $127,100.00 Installation Time 3 weeks

gary

Text Box

By email 7 22 13 Farmer's Daughter can not begin until September 14, 2013

City of San Angelo

Memo Date:


From: Carl White, Parks & Recreation Director


Contact: Carl White, 325-234-1724


Consideration of prioritizing and approving additional improvements to the River Project with remaining dedicated funds for the project.

Summary:

Staff seeks Council’s direction, in terms of priorities and approval, for additional river project improvements with dedicated funds. At the meeting on July 16, 2013, we presented that about $900,000 will be available for the river project after the contracted portion is complete. Of this, we have set aside: $500,000 previously reserved by Council $50,000 for property purchase (btwn. 19th and 29th Streets) $50,000 for addl. tree work (pruning, removal, planting) Leaving a balance of about $300,000. These funds are dedicated to river improvements and can only be spent as such. Because the proposed additional improvements would exhaust the $300,000 balance, we are asking Council for direction to utilize the $500,000 set aside by the previous Council for special projects along the river. The other improvements we’re considering are: $175,000 putt-putt renovations $ 50,000 turn-around and parking area by Koenigheim $ 15,000 secure loose rocks near art cars $ 35,000 maintenance drive near pumping station $150,000 addl. signage and wayfinding (unless funded by HOT) $297,251 drip irrigation for river trees Considering the old putt-putt golf course site, we are interested in setting up an ad hoc committee, with a couple Council Members, to brainstorm the possibilities of what this area could be and provide direction to move forward. We seek Council’s approval of proceeding with a few infrastructure improvements: turn-around and parking area by Koenigheim, secure loose rocks near the art cars and maintenance drive near the central water feature pumping station.

The current river project has basic internal signage. Staff recommends the addition of trailhead signs and directional signs, matching the Wayfinding Master Plan. These signs could be funded with half-cent sales tax revenues, which is staff’s preference. There will be a separate item for Council to consider, following this item, regarding drip irrigation systems for the trees along and near the river. At a previous Council meeting, we presented a budget estimate of $175,000 for a drip irrigation system of only the trees along the river downtown. With Council direction, we also looked at primary trees north of Veterans Memorial Drive around the Boy Scout office, YMCA and along the Santa Fe Golf Course adding about 140 trees. The proposal will provide drip irrigation for more than 350 trees from Concho Avenue and First Street. The additional drip irrigation work will extend the contract with Templeton Construction. In addition, we will inform Council what the estimated ongoing maintenance cost would be for the drip irrigation systems, primarily in terms of water usage.

History: Staff presented these items in more general terms at the river project update at the July 16, 2013 City Council meeting.

Financial Impact: The financial impact is covered in this memo’s summary for the cost of the improvements. The ongoing maintenance costs for the drip irrigation systems will be presented as part of consideration of that separate item.

Related Vision Item

(if applicable):

N/A


N/A

Attachments: N/A

Presentation: PowerPoint

Publication: N/A


Rick Weise, Assistant City Manager


City of San Angelo

Memo Meeting Date: August 20, 2013


From: AJ Fawver, Interim Director of Development Services

Subject: Authority for home rule cities within the Extraterritorial

Jurisdiction (ETJ), as outlined by the Texas Local Government Code

Contact: AJ Fawver, Interim Director of Development Services 325-657-4210 Lysia Bowling, City Attorney 325-657-4407 Caption: Discussion and possible direction on items related to the City's

authority within the Extra-Territorial Jurisdiction (ETJ)

Summary: At the request of Councilmember Self, staff has researched the Local Government Code to determine the authority available to a home rule city within its ETJ. This authority is summarized within the body of this report. Recommendation: N/A

History and Background: The ETJ of a municipality, unless otherwise defined, is determined by the population of the municipality. The ETJ is defined as, ““the unincorporated area that is contiguous to the corporate boundaries of the municipality.”1 For a city of San Angelo’s size, this would be a “buffer” of 3.5 miles.2

1 See TEX. LOCAL GOV’T CODE § 42.021 2 See TEX. LOCAL GOV’T CODE § 42.021 (“within 3-1/2 miles of those boundaries, in the case of a municipality with 50,000 to 99,999 inhabitants.”

Generally, a municipality’s ordinances and other regulations are valid and enforceable only within the municipality’s corporate limits.3 When a municipality annexes an area, the ETJ of expands with the annexation, according to the distance specified in Section 42.021.4 Interlocal Agreement: Question: The fundamental question being asked at this time is: what municipal authority is given to the City of San Angelo in order to regulate activities within the ETJ?

Analysis:

Subdivision Regulations

A municipality is allowed to adopt rules governing plats and subdivisions of land (within its jurisdiction). These rules must be directly related to the health, safety, and welfare of the municipality and safe, orderly, and healthful development.5 The Local Government Code6, amended by legislation in 2001 and again in 2003, required cities of San Angelo’s size to reach agreement with their county regarding the regulation of subdivisions within their ETJ, and thus, determining jurisdiction. The City of San Angelo and Tom Green County reached agreement regarding this issue, and it was approved by the Tom Green County Commissioner’s Court on December 16, 2003, and approved by the City of San Angelo on February 18, 2004. The agreement, attached to this report, outlined that the city would have exclusive jurisdiction in the subdivision approval process, including related permits, within the area outlined in this agreement. The agreement automatically renews each year, until and unless one party notifies the other of termination. Termination, however, does not relieve the requirement for these parties to have such an agreement, outlined in state law. The Local Government does go on to specifically state7 that this authority does not allow a municipality to regulate, within its ETJ, the following: “(1) the use of any building or property for business, industrial, residential, or other purposes;

3 Patty L. Akers & Cindy J. Crosby, Error! Main Document Only.Municipal Regulation: Enforcement Within the City Limits and In The ETJ, www.bickerstaff.com/files/5_Cindy__Subdivision.doc (2008) 4 See TEX. LOCAL GOV’T CODE § 42.022 5 See TEX. LOCAL GOV’T CODE § 212.002 6 See TEX. LOCAL GOV’T CODE § 242.001 7 See TEX. LOCAL GOV’T CODE § 212.003

(2) the bulk, height, or number of buildings constructed on a particular tract of land; (3) the size of a building that can be constructed on a particular tract of land, including without limitation any restriction on the ratio of building floor space to the land square footage; or (4) the number of residential units that can be built per acre of land.” Annexation

Home rule cities are given the ability to annex property in order to extend their boundaries, according to specific regulations as outlined in the Local Government Code8. Procedures are varied depending on the size, number of inhabitants, length of time within the ETJ, and many other factors. Disannexation and transfer of areas between municipalities is also governed within this document. The burden of the city in conducting such activities is quite specific – case in point, there are over 100 pages of requirements governing these procedures. “Limited-purpose annexation” is a type of annexation which allows cities to annex properties in order to extend their planning, zoning, health and safety ordinances to the area. This type of annexation is authorized by the Texas Local Government Code9 and is only available to municipalities with over 225,000 inhabitants – which San Angelo does not currently have. Industrial Districts The Local Government Code10 allows a home rule city to establish one or more “industrial districts” within its ETJ. The city may agree to a term of not more than 15 years, within which the city will not annex the property, and the property owner(s) will pay a negotiated amount to the city in lieu of taxes (usually based upon both the ad valorem value of the property and any improvements), and for services to be agreed upon by both parties. The city may renew these agreements, provided they are done in increments of no more than 15 years, and that such an extension is offered to all affected property owners. The subject property(ies) must be used for industrial uses. The City of San Angelo had one such agreement in place for five tracts within the Paulann area from 1990 until 2011, when it was not renewed by the City Council, and the property was annexed (along with many other tracts in the immediate vicinity). Typically, this tool is most often utilized in areas along the Texas Gulf Coast – Beaumont, Houston, Port Arthur, Orange, Corpus Christi, and Deer Park.

8 See TEX. LOCAL GOV’T CODE § 43 9 See TEX. LOCAL GOV’T CODE § 43.121 10 See TEX. LOCAL GOV’T CODE § 42.044

However, a notable exception is Odessa, which extended such an agreement in 2013 with an oil field services company, for placement of an 8+ acre crew camp. Signage The Local Government Code11 does allow home rule municipalities to extend regulations applicable to outdoor signage within its ETJ. However, in lieu of doing so, they “may allow the Texas Transportation Commission to regulate outdoor signs in the ETJ by filing a written notice with the Commission”.12 Some cities who have extended their signage regulations in this manner are San Antonio and Lockhart. Nuisances Another allowance available to cities within the Local Government Code13 is one to regulate and abate nuisances within 5,000 feet of the municipality’s boundary or city limit. The ordinance must both define and specifically extend enforcement of such regulations within this area. Some examples might include:

• sale, storage or use of fireworks; • high weeds and grass; • litter control and abatement; • unwholesome matters (filth, decaying matters, garbage, hazardous

materials and substances, etc.); • mosquito control; • rodent control; and • junked and abandoned vehicles.14

An additional example is tree preservation ordinances – utilized in San Antonio and Pflugerville. Lastly, dangerous building regulation is a possibility for which enforcement might be extended in this way.15 Impact Fees Impact fees, also known as a type of exaction, are fees are one-time or scheduled charges applied to new development. These charges pay for the cost of construction or expansion of facilities needed to serve the new development. The Local Government Code does allow some types of impact fees to be collected for development within the ETJ.16

11 See TEX. LOCAL GOV’T CODE § 216.902 12 Terrence S. Welch & Robert F. Brown, Municipal Regulation of the ETJ, http://www.bhlaw.net/2012-article/municipal-regulation-of-the-etj (August 2012) 13 See TEX. LOCAL GOV’T CODE § 217.042 14 Terrence S. Welch & Robert F. Brown, Municipal Regulation of the ETJ, http://www.bhlaw.net/2012-article/municipal-regulation-of-the-etj (August 2012) 15 Bryan Guymon & Alicia Currin-Moore, Nuisances, http://www.texascityattorneys.org/2010speakerpapers/ NuisanceEnforcement.pdf (June 2010) 16 See TEX. LOCAL GOV’T CODE § 395

In order to levy impact fees, cities must prepare Land Use Assumptions (LUA) and a Capital Improvements Plan (CIP). These fees may include: water, wastewater, storm water, drainage and flood control facilities.17 They may not include fees for roadways.18 The basic premise behind impact fees is that new growth helps pay for its own needs. In Texas, a recent study found that 36 percent of cities with a population of 10,000 or more assess development impact fees.19 Most of these cities seem to be areas along the Gulf Coast where drainage problems persist, or in areas of high growth such as Marble Falls, New Braunfels, and San Marcos. Watersheds Home rule municipalities are allowed to police streams, drains, recharge features, recharge areas or tributaries that constitute or recharge its water supply, under specific conditions regarding population and numerical standards pertaining to the primary water supply for the municipality. Under some circumstances, these can be extended within the ETJ.20 Cities such as Dripping Springs and Austin utilize this provision in their own regulations.

Access to Public Roads Very simply, the Local Government Code allows cities to require access to each tract of a property in order to exempt that property from subdivision regulations. Specifically, “division of land under this subsection [plat required] does not include a division of land into parts greater than five acres, where each part has access and no public improvement is being dedicated.”21 Development Plats The Local Government Code also “provides authority for cities to require development plats in the ETJ”.22 A development plat typically takes the form of a boundary survey with drainage and other topographical information, and is utilized in some cities to obtain Planning Commission approval of development before it occurs to ensure compliance with planning documents. The city of Houston, in particular, relies entirely upon development plats as they do not have a zoning ordinance. It was at Houston’s request that development plats were established. In its most basic form, a development plat is a “site plan approval

17 Terrence S. Welch, An Overview of Impact Fees in Texas, http://www.joesarver.us/AN%20OVERVIEW%20OF% 20IMPACT%20FEES%20IN%20TEXAS.pdf (May 1999) 18 See TEX. LOCAL GOV’T CODE § 395 19 Evans, Jennifer S., Evaluating the Equity, Efficiency and Effectiveness of Development impact Fees, Dissertation, Texas A&M University, 2000, pp. 73-81. 20 See TEX. LOCAL GOV’T CODE § 551.002 21 See TEX. LOCAL GOV’T CODE § 212.004 22 Terrence S. Welch & Robert F. Brown, Municipal Regulation of the ETJ, http://www.bhlaw.net/2012-article/municipal-regulation-of-the-etj (August 2012)

required for development where no subdivision is occurring”.23 Other cities, such as College Station, use development plats for specific situations such as parkland dedication. Utility Systems Simply put, the Local Government Code24 allows the regulation of utility systems which the city provides, and the extension of those service areas into the ETJ if so desired. Development Agreements In general, cities have the ability to create and enter into agreements with other parties. When annexation is pursued by a city, that city must determine whether or not any of the property it desires to annex is appraised for ad valorem tax purposes as agricultural or timber land.25 If so, the city is required by the Local Government Code to offer a development agreement to those property owner(s). This agreement may be utilized by cities in other circumstances, so long as they contain all the required terms.26 The agreement may not exceed a total length of 45 years. Development agreements have most frequently been used by cities as an alternative to annexing land on which new residential development is planned. The agreements allow a city to provide for sustainable residential development by controlling lot size and density, infrastructure quality, and other matters.27 The authorized subject matter of these agreements includes the following:

• Agreement not to annex, and/or plan for annexation and the terms thereof; • City planning authority under a “development plan … under which certain

general uses and development of the land are authorized”; • City’s current land use and development regulations enforced by the city; • Additional land use and development regulations enforced by the city; • “Provide for infrastructure for the land including (a) streets and roads; (b)

street and road drainage; (c) land drainage; and (d) water, wastewater and other utility systems”;

• Environmental regulations enforced by the city; • “Specify the uses and development of the land”; and • “Other lawful terms and consideration the parties consider appropriate”.28

23 Reid Wilson, Platting 101, http://www.wcglaw.net/docs/Platting%20101.pdf (2001) 24 See TEX. LOCAL GOV’T CODE § 552 25 See TEX. LOCAL GOV’T CODE § 43.035 26 See TEX. LOCAL GOV’T CODE § 212.172 27 Texas Municipal League, H.B. 1472 - Annexation Development Agreements, http://www.tml.org/p/HB1472-annexation.pdf 28 Reid Wilson, Development Agreements: Basics and Beyond, http://www.wcglaw.net/docs/development-agreements.pdf (2012)

In conclusion – there are many areas for which the Local Government Code specifically authorizes home rule municipalities to extend authority into their ETJ. The determination of strategy will largely be based upon the specific area(s) which the city is focused upon.

Attachments: Interlocal agreement between the City of San Angelo

and Tom Green County Presentation: AJ Fawver, AICP, Planning Manager

City of San Angelo



From: Michael Dane, ACM/CFO and Tina Bunnell, Finance Director

Subject: Agenda Item for 8-6-13 Council Meeting

Contact: Tina Bunnell, 657-4270


Discussion and any action regarding excess Hotel Occupancy Tax receipts

Summary: Due to positive economic experience, the City of San Angelo has collected moreHotel Occupancy Tax (HOT) than was necessary for current obligations and contracts. In accordance with state law and local ordinance, we can now discusspotential utilization of these surplus funds. For example the Council can allocateexcess hotel occupancy tax receipts to one-time projects. This allocation will help stakeholders further the HOT mission by tackling some much needed one-time and/or capital projects. These projects will help serve the citizens of and visitors to San Angelo by maintaining convention facilities and promoting tourism and the arts.

History: The City of San Angelo levied the hotel occupancy tax for the operation of convention facilities, the promotion of tourism, and the improvement of the arts. The current tax rate is 7% for the City of San Angelo. The state levies anadditional 6%. No change is proposed to the tax levy.

On February 5, 2013, staff received City Council input and direction on how to revise the allocation of hotel occupancy tax dollars. On March 5, 2013, Council adopted a contract with the Convention & Visitors Bureau to utilize hotel occupancy tax dollars to further the mission of tourism in San Angelo. On April 2, 2013, Council adopted an ordinance changing the annual allocation of hotel occupancy tax dollars. On June 18, 2013, Council adopted the contract with the San Angelo Cultural Affairs Council.

In June, management held meetings with stakeholders to gather input on potentially eligible one-time projects. On July 2, 2013, City Council discussed the opportunity available to allocate excess funds to eligible projects.

Financial Impact: None at this time. Background on law and list of potential projects and financial impact of each will be presented.

Related Vision Item

(if applicable):

Financial Vision


None

Attachments: Tax Code Title 3. Local Taxation Subtitle D. Local Hotel Occupancy Taxes Chapter 351. Municipal Hotel Occupancy Taxes Subchapter B. Use and Allocation of Revenue; Slides; Document – “What Cities Need to Know to Administer Municipal Hotel Occupancy Taxes” provided by the Texas Hotel and Lodging Association

Presentation: Tina Bunnell

Publication: None


Michael Dane, ACM/CFO


SUBCHAPTER B. USE AND ALLOCATION OF REVENUE

Sec. 351.101. USE OF TAX REVENUE.

(a) Revenue from the municipal hotel occupancy tax may be used

only to promote tourism and the convention and hotel industry, and

that use is limited to the following:

(1) the acquisition of sites for and the construction,

improvement, enlarging, equipping, repairing, operation, and

maintenance of convention center facilities or visitor information

centers, or both;

(2) the furnishing of facilities, personnel, and materials

for the registration of convention delegates or registrants;

(3) advertising and conducting solicitations and

promotional programs to attract tourists and convention delegates or

registrants to the municipality or its vicinity;

(4) the encouragement, promotion, improvement, and

application of the arts, including instrumental and vocal music,

dance, drama, folk art, creative writing, architecture, design and

allied fields, painting, sculpture, photography, graphic and craft

arts, motion pictures, radio, television, tape and sound recording,

and other arts related to the presentation, performance, execution,

and exhibition of these major art forms;

(5) historical restoration and preservation projects or

activities or advertising and conducting solicitations and promotional

programs to encourage tourists and convention delegates to visit

preserved historic sites or museums:

(A) at or in the immediate vicinity of convention

center facilities or visitor information centers; or

(B) located elsewhere in the municipality or its

vicinity that would be frequented by tourists and convention

delegates;

(6) for a municipality located in a county with a

population of one million or less, expenses, including promotion

expenses, directly related to a sporting event in which the majority

of participants are tourists who substantially increase economic

activity at hotels and motels within the municipality or its vicinity;

(7) subject to Section 351.1076, the promotion of tourism

by the enhancement and upgrading of existing sports facilities or

fields, including facilities or fields for baseball, softball, soccer,

and flag football, if:

(A) the municipality owns the facilities or fields;

(B) the municipality:

(i) has a population of 80,000 or more and is

located in a county that has a population of 350,000 or less;

(ii) has a population of at least 75,000 but not

more than 95,000 and is located in a county that has a population of

less than 200,000 but more than 160,000;

(iii) has a population of at least 36,000 but

not more than 39,000 and is located in a county that has a population

of 100,000 or less that is not adjacent to a county with a population

of more than two million;

(iv) has a population of at least 13,000 but

less than 39,000 and is located in a county that has a population of

at least 200,000;

(v) has a population of at least 70,000 but less

than 90,000 and no part of which is located in a county with a

population greater than 150,000;

(vi) is located in a county that:

(a) is adjacent to the Texas-Mexico border;

(b) has a population of at least 500,000;

and

(c) does not have a municipality with a

population greater than 500,000; or

(vii) has a population of at least 25,000 but

not more that 26,000 and is located in a county that has a population

of 90,000 or less; and

(C) the sports facilities and fields have been used,

in the preceding calendar year, a combined total of more than 10 times

for district, state, regional, or national sports tournaments;

(8) for a municipality with a population of at least

70,000 but less than 90,000, no part of which is located in a county

with a population greater than 150,000, the construction, improvement,

enlarging, equipping, repairing, operation, and maintenance of a

coliseum or multiuse facility;

(9) signage directing the public to sights and attractions

that are visited frequently by hotel guests in the municipality;

(10) the construction of a recreational venue in the

immediate vicinity of area hotels, if:

(A) the municipality:

(i) is a general-law municipality;

(ii) has a population of not more than 900; and

(iii) does not impose an ad valorem tax;

(B) not more than $100,000 of municipal hotel

occupancy tax revenue is used for the construction of the recreational

venue;

(C) a majority of the hotels in the municipality

request the municipality to construct the recreational venue;

(D) the recreational venue will be used primarily by

hotel guests; and

(E) the municipality will pay for maintenance of the

recreational venue from the municipality's general fund;

(11) the construction, improvement, enlarging, equipping,

repairing, operation, and maintenance of a coliseum or multiuse

facility, if the municipality:

(A) has a population of at least 90,000 but less than

120,000; and

(B) is located in two counties, at least one of which

contains the headwaters of the San Gabriel River; and

(12) for a municipality with a population of more than

175,000 but less than 225,000 that is located in two counties, each of

which has a population of less than 200,000, the construction,

improvement, enlarging, equipping, repairing, operation, and

maintenance of a coliseum or multiuse facility and related

infrastructure or a venue, as defined by Section 334.001(4), Local

Government Code, that is related to the promotion of tourism.

(b) Revenue derived from the tax authorized by this chapter

shall be expended in a manner directly enhancing and promoting tourism

and the convention and hotel industry as permitted by Subsection (a).

That revenue may not be used for the general revenue purposes or

general governmental operations of a municipality.

(c) The governing body of a municipality by contract may

delegate to a person, including another governmental entity or a

private organization, the management or supervision of programs and

activities funded with revenue from the tax authorized by this

chapter. The governing body in writing shall approve in advance the

annual budget of the person to which it delegates those functions and

shall require the person to make periodic reports to the governing

body at least quarterly listing the expenditures made by the person

with revenue from the tax authorized by this chapter. The person must

maintain revenue provided from the tax authorized by this chapter in a

separate account established for that purpose and may not commingle

that revenue with any other money. The municipality may not delegate

to any person the management or supervision of its convention and

visitors programs and activities funded with revenue from the tax

authorized by this chapter other than by contract as provided by this

subsection. The approval by the governing body of the municipality of

the annual budget of the person to whom the governing body delegates

those functions creates a fiduciary duty in the person with respect to

the revenue provided by the tax authorized by this chapter.

(d) A person with whom a municipality contracts under this

section to conduct an activity authorized by this section shall

maintain complete and accurate financial records of each expenditure

of hotel occupancy tax revenue made by the person and, on request of

the governing body of the municipality or other person, shall make the

records available for inspection and review to the governing body or

other person.

(e) Hotel occupancy tax revenue spent for a purpose authorized

by this section may be spent for day-to-day operations, supplies,

salaries, office rental, travel expenses, and other administrative

costs only if those administrative costs are incurred directly in the

promotion and servicing expenditures authorized under Section

351.101(a). If a municipal or other public or private entity that

conducts an activity authorized under this section conducts other

activities that are not authorized under this section, the portion of

the total administrative costs of the entity for which hotel occupancy

tax revenue may be used may not exceed the portion of those

administrative costs actually incurred in conducting the authorized

activities.

(f) Municipal hotel occupancy tax revenue may not be spent for

travel for a person to attend an event or conduct an activity the

primary purpose of which is not directly related to the promotion of

tourism and the convention and hotel industry or the performance of

the person's job in an efficient and professional manner.

(g) Nothing in this section shall prohibit any private entity,

person, or organization from making subgrants by contract to any other

person, entity, or private organization for expenditures under Section

351.101(a)(4). A subgrantee shall:

(1) at least annually make periodic reports to the

governing body of its expenditures from the tax authorized by this

chapter; and

(2) make records of these expenditures available for

review to the governing body or other person.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.24(a), eff. Aug. 28,

1989; Acts 1989, 71st Leg., ch. 1110, Sec. 4, eff. Oct. 1, 1989;

Acts 1993, 73rd Leg., ch. 680, Sec. 3, eff. Sept. 1, 1993; Acts 1995,

74th Leg., ch. 1027, Sec. 1, eff. Aug. 28, 1995; Acts 2001, 77th

Leg., ch. 755, Sec. 1, eff. June 13, 2001; Acts 2001, 77th Leg., ch.

1308, Sec. 3, eff. June 16, 2001; Acts 2003, 78th Leg., ch. 209, Sec.

90, eff. Oct. 1, 2003; Acts 2003, 78th Leg., ch. 303, Sec. 1, eff.

June 18, 2003.

Amended by:

Acts 2005, 79th Leg., Ch. 1247, Sec. 1, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch. 1144, Sec. 1, eff. June 15,

2007.

Acts 2009, 81st Leg., R.S., Ch. 402, Sec. 1, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch. 1220, Sec. 3(a), eff. June 19,

2009.

Acts 2009, 81st Leg., R.S., Ch. 1322, Sec. 1, eff. June 19,

2009.

Acts 2011, 82nd Leg., R.S., Ch. 91, Sec. 23.004, eff. September

1, 2011.

Acts 2011, 82nd Leg., R.S., Ch. 247, Sec. 1, eff. June 17, 2011.

Acts 2011, 82nd Leg., R.S., Ch. 764, Sec. 1, eff. June 17, 2011.

Acts 2011, 82nd Leg., R.S., Ch. 1163, Sec. 120, eff. September

1, 2011.

Sec. 351.102. PLEDGE FOR BONDS. (a) Subject to the

limitations provided by this subchapter, a municipality may pledge the

revenue derived from the tax imposed under this chapter for the

payment of bonds that are issued under Section 1504.002(a), Government

Code, for one or more of the purposes provided by Section 351.101 or,

in the case of a municipality of 1,500,000 or more, for the payment of

principal of or interest on bonds or other obligations of a

municipally sponsored local government corporation created under

Chapter 431, Transportation Code, that were issued to pay the cost of

the acquisition and construction of a convention center hotel or the

cost of acquisition, remodeling, or rehabilitation of a historic hotel

structure; provided, however, such pledge may only be that portion of

the tax collected at such hotel.

(b) An eligible central municipality or a municipality with a

population of 173,000 or more that is located within two counties may

pledge the revenue derived from the tax imposed under this chapter

from a hotel project that is owned by or located on land owned by the

municipality or, in an eligible central municipality, by a nonprofit

corporation acting on behalf of an eligible central municipality, and

that is located within 1,000 feet of a convention center facility

owned by the municipality for the payment of bonds or other

obligations issued or incurred to acquire, lease, construct, and equip

the hotel and any facilities ancillary to the hotel, including

convention center entertainment-related facilities, restaurants,

shops, and parking facilities within 1,000 feet of the hotel or

convention center facility. For bonds or other obligations issued

under this subsection, an eligible central municipality or a

municipality with a population of 173,000 or more that is located

within two counties may only pledge revenue or other assets of the

hotel project benefiting from those bonds or other obligations.

(b-1) A municipality with a population of 173,000 or more that

is located within two counties and is not an eligible central

municipality may not pledge revenue under Subsection (b) in relation

to a particular hotel project after the earlier of:

(1) the 20th anniversary of the date the municipality

first pledged the revenue to the hotel project; or

(2) the date the revenue pledged to the hotel project

equals 40 percent of the hotel project's total construction cost.

(c) A municipality to which Subsection (b) applies is entitled

to receive all funds from a project described by this section that an

owner of a project may receive under Section 151.429(h) of this code,

or Section 2303.5055, Government Code, and may pledge the funds for

the payment of obligations issued under this section.


Amended by Acts 1993, 73rd Leg., ch. 231, Sec. 3, eff. Aug. 30, 1993;

Acts 1997, 75th Leg., ch. 165, Sec. 30.274, eff. Sept. 1, 1997; Acts

1999, 76th Leg., ch. 1004, Sec. 2, eff. Sept. 1, 1999; Acts 2001,

77th Leg., ch. 1308, Sec. 4, eff. June 16, 2001; Acts 2001, 77th

Leg., ch. 1420, Sec. 8.365, eff. Sept. 1, 2001; Acts 2003, 78th Leg.,

ch. 209, Sec. 91, eff. Oct. 1, 2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 519, Sec. 1, eff. September 1,

2009.


2009.

Acts 2009, 81st Leg., R.S., Ch. 1220, Sec. 4, eff. September 1,

2009.

Sec. 351.103. ALLOCATION OF REVENUE: GENERAL RULE. (a) At

least 50 percent of the hotel occupancy tax revenue collected by a

municipality with a population of 200,000 or greater must be allocated

for the purposes provided by Section 351.101(a)(3). For

municipalities with a population of less than 200,000, allocations for

the purposes provided by Section 351.101(a)(3) are as follows:

(1) if the tax rate in a municipality is not more than

three percent of the cost paid for a room, not less than the amount of

revenue received by the municipality from the tax at a rate of one-

half of one percent of the cost of the room; or

(2) if the tax in a municipality exceeds three percent of

the cost of a room, not less than the amount of revenue received by

the municipality from the tax at a rate of one percent of the cost of

a room. This subsection does not apply to a municipality, regardless

of population, that before October 1, 1989, adopted an ordinance

providing for the allocation of an amount in excess of 50 percent of

the hotel occupancy tax revenue collected by the municipality for one

or more specific purposes provided by Section 351.101(a)(1) until the

ordinance is repealed or expires or until the revenue is no longer

used for those specific purposes in an amount in excess of 50 percent

of the tax revenue.

(b) Subsection (a) does not apply to a municipality in a fiscal

year of the municipality if the total amount of hotel occupancy tax

collected by the municipality in the most recent calendar year that

ends at least 90 days before the date the fiscal year begins exceeds

$2 million. A municipality excepted from the application of

Subsection (a) by this subsection shall allocate hotel occupancy tax

revenue by ordinance, consistent with the other limitations of this

section. The portion of the tax revenue allocated by a municipality

with a population of more than 1.6 million for the purposes provided

by Section 351.101(a)(3) may not be less than 23 percent, except that

the allocation is subject to and may not impair the authority of the

municipality to:

(1) pledge all or any portion of that tax revenue to the

payment of bonds as provided by Section 351.102(a) or bonds issued to

refund bonds secured by that pledge; or

(2) spend all or any portion of that tax revenue for the

payment of operation and maintenance expenses of convention center

facilities.

(c) Not more than 15 percent of the hotel occupancy tax revenue

collected by a municipality, other than a municipality having a

population of more than 1.6 million, or the amount of tax received by

the municipality at the rate of one percent of the cost of a room,

whichever is greater, may be used for the purposes provided by Section

351.101(a)(4). Not more than 19.30 percent of the hotel occupancy tax

revenue collected by a municipality having a population of more than

1.6 million, or the amount of tax received by the municipality at the

rate of one percent of the cost of a room, whichever is greater, may

be used for the purposes provided by Section 351.101(a)(4). Not more

than 15 percent of the hotel occupancy tax revenue collected by a

municipality having a population of more than 125,000 may be used for

the purposes provided by Section 351.101(a)(5).

(d) A municipality that does not allocate any hotel occupancy

tax revenue for the purposes provided by Section 351.101(a)(1) may

allocate not more than 50 percent of the hotel occupancy tax revenue

collected by the municipality for the purposes provided by Section

351.101(a)(5). A municipality that before October 1, 1989, adopts an

ordinance providing for the allocation of an amount in excess of 50

percent of the hotel occupancy tax revenue collected by the

municipality for one or more specific purposes provided by Section

351.101(a)(5) may allocate the tax revenue as provided by that

ordinance until the ordinance is repealed or expires or until the

revenue is no longer used for those specific purposes.

(e) A municipality may use hotel occupancy tax revenue

collected by the municipality for a purpose provided by Section

351.101(a)(1) only if the municipality complies with the applicable

provisions of this section.


Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.24(b), eff. Aug. 28,

1989; Acts 1989, 71st Leg., ch. 1110, Sec. 6, eff. Oct. 1, 1989;

Acts 1993, 73rd Leg., ch. 153, Sec. 1, eff. Aug. 30, 1993; Acts 1993,

73rd Leg., ch. 680, Sec. 5, eff. Sept. 1, 1993; Acts 2001, 77th Leg.,

ch. 1308, Sec. 5, eff. June 16, 2001.

Sec. 351.1035. ALLOCATION OF REVENUE: CERTAIN MUNICIPALITIES

IN BORDER COUNTIES. (a) This section applies only to a municipality

that is the largest municipality in a county described by Section

352.002(a)(14).

(b) At least 50 percent of the hotel occupancy tax revenue

collected by a municipality described by Subsection (a) must be

allocated for the purposes provided by Section 351.101(a)(3).

(c) Not more than 15 percent of the hotel occupancy tax revenue

collected by a municipality described by Subsection (a) may be used

for the purposes provided by Section 351.101(a)(4).

(d) Not more than 15 percent of the hotel occupancy tax revenue

collected by a municipality described by Subsection (a) may be used

for the purposes provided by Section 351.101(a)(5).

Added by Acts 2003, 78th Leg., ch. 303, Sec. 2, eff. June 18, 2003.

Sec. 351.104. ALLOCATION OF REVENUE: CERTAIN MUNICIPALITIES

BORDERING BAYS. (a) This section applies only to a home-rule

municipality that borders a bay, that has a population of less than

80,000, and that is not an eligible coastal municipality.

(b) In this section:

(1) "Adjacent public land" means land that:

(A) is owned by this state or a local governmental

entity; and

(B) is located adjacent to a bay that is bordered by

a municipality to which this section applies.

(2) "Clean and maintain" means the collection and removal

of litter and debris and the supervision and elimination of sanitary

and safety conditions that would pose a threat to personal health or

safety if not removed or otherwise corrected.

(c) Notwithstanding any other provision of this chapter and

subject to Subsections (d) and (e), a municipality to which this

section applies may use not more than 10 percent of the revenue

derived from the tax imposed under this chapter:

(1) for a purpose described by Section 351.105(a)(1) or

(2);

(2) to clean and maintain adjacent public land; or

(3) to mitigate coastal erosion on adjacent public land.

(d) A municipality to which this section applies may not reduce

the amount of revenue that it uses for a purpose described by Section

351.101(a)(3) to an amount that is less than the average amount of

revenue used by the municipality for that purpose during the 36-month

period that precedes the municipality's use of revenue under

Subsection (c).

(e) A municipality that uses revenue from the tax imposed under

this chapter for a purpose provided by this section must spend the

same amount of revenue for the same purpose from a source other than

that tax.

Acts 2003, 78th Leg., ch. 699, Sec. 1, eff. Sept. 1, 2003.

Sec. 351.105. ALLOCATION OF REVENUE: ELIGIBLE COASTAL

MUNICIPALITIES. (a) An eligible coastal municipality that levies and

collects an occupancy tax authorized by this chapter at a rate of

seven percent shall pledge a portion of the revenue equal to at least

one percent of the cost of a room to either or both of the following

purposes:

(1) the payment of the bonds that the municipality or a

park board of trustees may issue under Section 1504.002(a), Government

Code, or under Chapter 306, Local Government Code, in order to provide

all or part of the funds for the establishment, acquisition, purchase,

construction, improvement, enlargement, equipment, or repair of public

improvements, including parks, civic centers, civic center buildings,

auditoriums, exhibition halls, coliseums, marinas, cruise ship

terminal facilities, hotels, motels, parking facilities, golf courses,

trolley or trolley transportation systems, and other facilities as may

be considered advisable in connection with these facilities that serve

the purpose of attracting visitors and tourists to the municipality;

or

(2) the maintenance, improvement, or operation of the

parks, civic centers, civic center buildings, auditoriums, exhibition

halls, coliseums, marinas, cruise ship terminal facilities, hotels,

motels, parking facilities, golf courses, trolley or trolley

transportation systems, and other facilities as may be considered

advisable in connection with these facilities that serve the purpose

of attracting visitors and tourists to the municipality.

(b) If the tax authorized by this chapter is imposed by an

eligible coastal municipality at a rate of four or more percent of the

cost of a room, no lesser amount than the amount of revenue derived

from the application of the tax at a rate of three percent of the cost

of a room shall be used for the purpose provided by Section

351.101(a)(3).

(c) If the tax authorized by this chapter is imposed by an

eligible coastal municipality at a rate of five or more percent of the

cost of a room, no lesser amount than the amount of revenue derived

from the application of the tax at a rate of one percent shall be used

for beach patrol, lifeguard services, marine water safety, and park

law enforcement.

(d) If the tax authorized by this chapter is imposed by an

eligible coastal municipality at a rate of six or more percent, no

lesser amount than the amount of revenue derived from the application

of the tax at a rate of one percent of the cost of a room shall be

used as matching funds for state funds available to clean and maintain

public beaches and for other public beach-cleaning funds.

(e) Money received under Section 156.2511 and used to clean and

maintain beaches is included in determining whether the municipality

has met the funding obligation prescribed by Subsections (c) and (d),

and the municipality may credit that money against the funding

requirements prescribed by Subsections (c) and (d).

(f) An eligible coastal municipality and a park board of

trustees created by the municipality may:

(1) contract for the park board to use the tax authorized

by this chapter as provided by this section; and

(2) without further authorization, use the tax authorized

by this chapter as provided by this section, including for the purpose

of issuing bonds or entering into other agreements.

(g) The following statutes prevail over any conflicting

provision in the charter of an eligible coastal municipality:

(1) this section;

(2) Chapter 306, Local Government Code; and

(3) Subchapter A, Chapter 1504, Government Code.


Amended by Acts 1993, 73rd Leg., ch. 680, Sec. 6, eff. Sept. 1, 1993;

Acts 1995, 74th Leg., ch. 76, Sec. 15.02, eff. Sept. 1, 1995; Acts

1995, 74th Leg., ch. 454, Sec. 7, eff. Sept. 1, 1995; Acts 1999, 76th

Leg., ch. 298, Sec. 1, eff. May 29, 1999; Acts 2001, 77th Leg., ch.

1420, Sec. 8.367, eff. Sept. 1, 2001.

Sec. 351.1055. ALLOCATION OF REVENUE: CERTAIN MUNICIPALITIES.

(a) In this section:

(1) "Clean and maintain" has the meaning assigned by

Section 61.063, Natural Resources Code.

(2) "Public beach" has the meaning assigned by Section

61.001, Natural Resources Code.

(3) "Beach security" means beach patrol, lifeguard

services, marine water safety, and park law enforcement.

(4) "Erosion response project" has the meaning assigned by


(b) Notwithstanding any other provision of this chapter, a

home-rule municipality that borders on the Gulf of Mexico and has a

population of more than 250,000 may use all or any portion of the

revenue derived from the municipal hotel occupancy tax from hotels in

an area previously subject to a county hotel occupancy tax and located

on an island bordering the Gulf of Mexico to clean and maintain public

beaches in the municipality.

(c) Notwithstanding any other provision of this chapter, a

municipality that has a population of less than 5,000 adjacent to a

home-rule city with a population of less than 80,000 may use all or

any portion of the revenue heretofore or hereafter derived from the

municipal hotel tax:

(1) to clean and maintain the beaches in the municipality;

(2) to provide beach security within the municipality;

(3) for any of the purposes permitted or allowed by

Section 1504.001, Government Code;

(4) for any purpose allowed by Section 351.105; or

(5) to pay the principal of or interest on bonds or notes

issued for any of these purposes.

(d) Notwithstanding any other provision of this chapter and

except as provided by Subsection (e), an eligible barrier island

coastal municipality shall use at least the amount of revenue derived

from the application of the tax at a rate of seven percent of the cost

of a room for the purposes authorized under Sections 351.101(a)(1) and

(3).

(e) An eligible barrier island coastal municipality that

imposes the tax at a rate equal to or greater than 7-1/2 percent of

the price paid for a room shall use at least the amount of revenue

derived from the application of the tax at a rate of one-half of one

percent of the cost of a room for erosion response projects.


Amended by Acts 2003, 78th Leg., ch. 117, Sec. 1, eff. July 1, 2003;

Acts 2003, 78th Leg., ch. 247, Sec. 1, eff. Sept. 1, 2003.

Amended by:


2009.


2009.

Sec. 351.106. ALLOCATION OF REVENUE: POPULOUS MUNICIPALITIES

WITH COUNCIL-MANAGER GOVERNMENT. (a) A municipality that has a

population of 1.18 million or more, is located predominantly in a

county that has a total area of less than 1,000 square miles, and that

has adopted a council-manager form of government shall use the amount

of revenue from the tax that is derived from the application of the

tax at a rate of more than four percent of the cost of a room as

follows:

(1) no more than 55 percent to:

(A) constructing, improving, enlarging, equipping,

and repairing the municipality's convention center complex; or

(B) pledging payment of revenue bonds and revenue

refunding bonds issued under Subchapter A, Chapter 1504, Government

Code, for the municipality's convention center complex; and

(2) at least 45 percent for the purposes provided by

Section 351.101(a)(3).

(b) Revenue received by a municipality described by Subsection

(a) from the application of the tax at a rate of four percent or less

may be used as provided by Section 351.101.


Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.23(b), eff. Aug. 28,

1989; Acts 1991, 72nd Leg., ch. 597, Sec. 108, eff. Sept. 1, 1991;

Acts 2001, 77th Leg., ch. 669, Sec. 123, 124, eff. Sept. 1, 2001;

Acts 2001, 77th Leg., ch. 1420, Sec. 8.368, eff. Sept. 1, 2001.

Amended by:

Acts 2011, 82nd Leg., R.S., Ch. 1163, Sec. 121, eff. September

1, 2011.

Sec. 351.1065. ALLOCATION OF REVENUE: ELIGIBLE CENTRAL

MUNICIPALITY. (a) An eligible central municipality shall use the

amount of revenue from the tax that is derived from the application of

the tax at a rate of more than seven percent of the cost of a room

only for:

(1) the construction of an expansion of an existing

convention center facility; and

(2) pledging payment of revenue bonds and revenue

refunding bonds issued under Subchapter A, Chapter 1504, Government

Code, for the construction of the expansion.

(b) Any interest income derived from the application of the tax

at a rate of more than seven percent of the cost of a room may be used

only for the purposes provided by this section.

(c) An eligible central municipality expending tax revenue

under this section shall attempt to include minority-owned businesses

in the issuance of at least 32 percent of the total dollar value of

the bonds issued, and in at least 32 percent of the total fees paid by

the issuer, in connection with the construction.

Added by Acts 1993, 73rd Leg., ch. 620, Sec. 3, eff. Aug. 30, 1993.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.369, eff. Sept. 1,

2001.


(a) This section applies only to:

(1) a municipality with a population of at least 3,500 but

less than 5,500 that is the county seat of a county with a population

of less than 50,000 that borders a county with a population of more

than 1.6 million; and

(2) a municipality with a population of at least 2,900 but

less than 3,500 that is the county seat of a county with a population

of less than 22,000 that is bordered by the Trinity River and includes

a state park and a portion of a wildlife management area.


municipality to which this section applies may use all or any portion

of the revenue derived from the municipal hotel occupancy tax for:

(1) a business recruitment project to substantially

enhance hotel activity and encourage tourism; and

(2) the construction, enlarging, equipping, improvement,

maintenance, repairing, and operation of a recreational facility to

substantially enhance hotel activity and encourage tourism.

Added by Acts 2011, 82nd Leg., R.S., Ch. 751, Sec. 1, eff. June 17,

2011.

Sec. 351.107. ALLOCATION OF REVENUE; CERTAIN LARGE COASTAL

MUNICIPALITIES. (a) This section applies only to a municipality that

borders on the Gulf of Mexico and has a population of more than

250,000.

(b) A municipality to which this section applies shall

separately account for all revenue derived from the application of the

tax imposed by this chapter at a rate of more than seven percent of

the cost of a room.

(c) Subject to Subsection (e), revenue described by Subsection

(b) may be used only for:

(1) acquiring land for a municipally owned convention

center;

(2) constructing, improving, enlarging, equipping,

repairing, operating, and maintaining a municipally owned convention

center; and

(3) paying bonds used to finance activities described by

Subdivision (1) or (2).

(d) For the purpose of the allocation of revenue under Section

351.103, revenue described by Subsection (b) is not counted.

(e) Notwithstanding any other provision of this chapter, a

municipality to which this section applies may use all or any portion

of the revenue derived from the municipal hotel occupancy tax from

hotels in an area previously subject to a county hotel occupancy tax

and located on an island bordering the Gulf of Mexico to clean and

maintain public beaches in the municipality.

(f) In this section:

(1) "Clean and maintain" has the meaning assigned by


(2) "Public beach" has the meaning assigned by Section

61.001, Natural Resources Code.

Added by Acts 1999, 76th Leg., ch. 825, Sec. 2, eff. June 18, 1999.

Amended by Acts 2003, 78th Leg., ch. 117, Sec. 2, eff. July 1, 2003.


(a) A municipality that spends municipal hotel occupancy tax revenue

for the enhancement and upgrading of existing sports facilities or

fields as authorized by Section 351.101(a)(7):

(1) shall determine the amount of municipal hotel

occupancy tax revenue generated for the municipality by hotel activity

attributable to the sports events and tournaments held on the enhanced

or upgraded facilities or fields for five years after the date the

enhancements and upgrades are completed; and

(2) may not spend hotel occupancy tax revenue for the

enhancement and upgrading of the facilities or fields in a total

amount that exceeds the amount of area hotel revenue attributable to

the enhancements and upgrades.

(b) The municipality shall reimburse from the municipality's

general fund any expenditure in excess of the amount of area hotel

revenue attributable to the enhancements and upgrades to the

municipality's hotel occupancy tax revenue fund.

Added by Acts 2005, 79th Leg., Ch. 1247, Sec. 2, eff. June 18, 2005.

For expiration of this section, see Subsection (f).

Sec. 351.1077. ALLOCATION OF REVENUE FOR THE ARTS FOR CERTAIN

MUNICIPALITIES. (a) This section applies only to a municipality

that:

(1) has a population of more than 190,000;

(2) is located in a county in which another municipality

that has a population of more than one million is predominately

located; and

(3) issued bonds before January 1, 2007, for the

construction of a municipal arts center payable from and secured by

revenue from the tax imposed under this chapter.


municipality to which this section applies may use an amount that is

less than or equal to 15 percent of the hotel occupancy tax revenue

collected by the municipality for the purposes provided by Section

351.101(a)(4).

(c) Notwithstanding any other provision of this chapter, a

municipality to which this section applies may use an amount that is

less than or equal to an additional $1.6 million in hotel occupancy

tax revenue collected by the municipality for the purposes provided by

Section 351.101(a)(4). The $1.6 million is in addition to the 15

percent amount allowed by Subsection (b).

(d) A municipality to which this section applies may not reduce

the amount of revenue that an arts center that receives funds under

Subsection (b) spends for a purpose described by Section 351.101(a)(3)

to an amount that is less than the amount of revenue spent by the arts

center for those purposes during the fiscal year of the arts center

preceding the effective date of this section. If the municipality

reduces the funding of the arts center under Subsection (b), the art

center's required funding amount for purposes described by Section

351.101(a)(3) is also reduced by a proportional amount.

(e) An arts center that receives funds under Subsection (b)

shall include a website address that contains a link to area hotels

and lodging options in the municipality on all materials produced for

the purposes of Section 351.101(a)(3).

(f) This section expires September 1, 2022.

Added by Acts 2007, 80th Leg., R.S., Ch. 14, Sec. 1, eff. April 25,

2007.

Sec. 351.108. RECORDS. (a) A municipality shall maintain a

record that accurately identifies the receipt and expenditure of all

revenue derived from the tax imposed under this chapter.

(b) A municipality or entity that spends revenue derived from

the tax imposed under this chapter shall, before making an

expenditure, specify in a list each scheduled activity, program, or

event that:

(1) is directly funded by the tax or has its

administrative costs funded in whole or in part by the tax; and

(2) is directly enhancing and promoting tourism and the

convention and hotel industry.

(c) If a municipality delegates to another entity the

management or supervision of an activity or event funded by the tax

imposed under this chapter, each entity that is ultimately funded by

the tax shall, before making an expenditure, specify in a list each

scheduled activity, program, or event that:

(1) is directly funded by the tax or has its

administrative costs funded in whole or in part by the tax; and

(2) is directly enhancing and promoting tourism and the


(d) The list required in Subsections (b) and (c) should be

provided to the office of the city secretary or to the city

secretary's designee.

(e) Subsections (b) and (c) do not prevent a municipality or

funded entity from subsequently adding an activity, program, or event

to the list required by those subsections if the activity, program, or

event is directly enhancing and promoting tourism and the convention

and hotel industry.

(f) This section does not prevent a municipality or entity

receiving revenue from the tax imposed under this chapter from setting

aside tax revenue in a designated reserve fund for use in supporting

planned activities, future events, and facility improvements that are

directly enhancing and promoting tourism and the convention and hotel

industry.

(g) Subsections (b) and (c) do not apply if the funded entity

already provides written information to the municipality that

indicates which scheduled activities, programs, or events offered by

the entity are directly enhancing and promoting tourism and the


(h) Subsections (b) and (c) do not affect the level of local

hotel occupancy tax funding that was approved at an election held

pursuant to the initiative and referendum provisions of a city

charter, and do not prohibit the use of local hotel occupancy tax for

the encouragement, promotion, improvement, and application of the arts

or for historical restoration and preservation as otherwise provided

by this chapter.

Added by Acts 1999, 76th Leg., ch. 495, Sec. 2, eff. Sept. 1, 1999;

Acts 1999, 76th Leg., ch. 1467, Sec. 2.73, eff. Oct. 1, 1999.

Renumbered from Sec. 351.107 and amended by Acts 2001, 77th Leg., ch.

636, Sec. 1, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1420, Sec.

21.001(101), eff. Sept. 1, 2001.

Sec. 351.110. ALLOCATION OF REVENUE FOR CERTAIN TRANSPORTATION

SYSTEMS. (a) Notwithstanding any other provision of this chapter, a

municipality may use the revenue derived from the tax imposed under

this chapter for a transportation system to transport tourists from

hotels in and near the municipality to:

(1) the commercial center of the municipality;

(2) a convention center in the municipality;

(3) other hotels in or near the municipality; and

(4) tourist attractions in or near the municipality.

(b) The transportation system that transports tourists as

described by Subsection (a) may be:

(1) owned and operated by the municipality; or

(2) privately owned and operated but partially financed by

the municipality.

(c) This section does not authorize the use of revenue derived

from the tax imposed under this chapter for a transportation system

that serves the general public other than for a system that transports

tourists as described by Subsection (a).

Added by Acts 2007, 80th Leg., R.S., Ch. 1231, Sec. 1, eff. June 15,

2007.

What Cities Need to Know to Administer Municipal Hotel Occupancy Taxes

Texas Hotel & Lodging Association

REVISED FALL 2011


2 Texas Hotel & Lodging Association, 2011

Table of Contents

INTRODUCTION 3

AUTHORIZED ENTITIES 3

COLLECTING THE TAX 4

EXEMPTIONS FROM THE LOCAL TAX 5 THLA’s Simplified Hotel Occupancy Tax Exemption Rules 8

HOW THE CITY RECEIVES THE TAX 10

REIMBURSEMENT OF HOTEL FOR COLLECTION EXPENSES 10

PENALTIES FOR FAILURE TO REPORT OR COLLECT THE TAX 10

ENFORCEMENT AUTHORITY OF A CITY 11

USE OF LOCAL HOTEL OCCUPANCY TAX REVENUES 13 Criteria #1: First, every expenditure must DIRECTLY enhance and promote tourism AND the convention and hotel industry. 13 Criteria #2: Every expenditure of the hotel occupancy tax must clearly fit into one of nine statutorily provided categories for expenditure of local hotel occupancy tax revenues. 15

1) Funding the establishment, improvement, or maintenance of a convention center or visitor information center. 15 2) Paying the administrative costs for facilitating convention registration. 15 3) Paying for advertising, solicitations, and promotions that attract tourists and convention delegates to the city or its vicinity. 16 4) Expenditures that promote the arts. 16 5) Funding historical restoration or preservation programs. 17 6) Funding certain expenses, including promotional expenses, directly related to a sporting event within counties with a population of under 1 million. 17 7) Funding the enhancement or upgrading of existing sports facilities or sports fields for certain municipalities. 18 8) Funding transportation systems for tourists 19 9) Signage directing tourists to sights and attractions that are visited frequently by hotel guests in the municipality. 20

Summary of the Nine Uses for the Local Hotel Occupancy Tax 20

ADMINISTERING HOTEL OCCUPANCY TAX REVENUE EXPENDITURES 21 Duty of funded entities to provide a list of activities. 21 Delegating management of funded activities. 21 Use of hotel occupancy tax revenues to cover administrative expenses. 22

SPECIAL RULES FOR SELECTED MUNICIPALITIES 23

ADDITIONAL INFORMATION 30

INDEX 31



Introduction Since the 1960s, hotel occupancy taxes have been an important tool for promoting growth in communities’ tourism and hotel industries. Today, over 500 Texas cities levy a local hotel occupancy tax.1 Hotel guests generate economic activity for local businesses and contribute over $1 billion in revenues annually for local governments. If a hotel guest is motivated to come to an area or to extend their stay due to activities or facilities funded with hotel tax revenues, the local and state economies benefit. In turn, the hotel tax revenues generated from additional room night activity funds future programs and tourism-related facilities, providing an economic engine for prosperity for the area. Unlike property tax and sales tax revenues, which cities can use for most public purposes, local hotel occupancy tax revenues fall under a more structured statutory mandate. Municipal hotel occupancy taxes are primarily governed by Chapter 351 of the Texas Tax Code. This guide assists local governments, hotel tax revenue grant applicants, and lodging operators in all aspects of the municipal hotel tax process, including the rules on allowable expenditures of these funds by cities that fall within certain population and geographic brackets.

Authorized Entities All incorporated Texas municipalities, including general law and home rule cities, may enact a hotel occupancy tax within the city limits.2 A city with a population of under 35,000 may also adopt the hotel occupancy tax within that city’s extraterritorial jurisdiction (ETJ).3 Most cities are eligible to adopt a hotel occupancy tax at a rate of up to 7 percent of the price paid for the use of a hotel room.4 If a city adopts the hotel occupancy tax within its ETJ, the combined state, county, and municipal hotel occupancy tax rate may not exceed 15 percent.5 Texas has among the highest combined hotel occupancy tax rates of any major metropolitan areas in the nation, with Houston at 17 percent and San Antonio at 16 ¾ percent.6 In addition to local hotel occupancy taxes, all lodging properties operating in Texas are subject to a six percent state hotel occupancy tax.7 Governed under Chapter 156 of the Texas Tax Code, the state hotel occupancy tax is administered by the Texas Comptroller. Funds from the state six percent hotel occupancy tax flow directly to the Texas Comptroller’s office and are largely used for the general governmental operations of the State. A portion of the state hotel occupancy tax revenue also goes toward funding tourism promotion through Texas’s ad campaign. Most Texans know this successful ad campaign by its famous tagline, “Texas, it’s like a whole other country.”

1 Texas Hotel & Lodging Association (THLA) maintains a listing of most city and county hotel tax rates, accessible upon request

to THLA members. 2 Tex. Tax Code Ann. § 351.002(a) (Vernon 2011).

3 § 351.0025(a).

4 § 351.003(a).

5 § 351.0025(b).

6 Source: National Business Travel Association 2009 Survey.

7 Tex. Tax Code § 156.051.



Collecting the Tax Under the Texas Tax Code, the following businesses are considered “hotels” and are required to collect hotel occupancy taxes from their guests: “Any building or buildings in which members of the public obtain sleeping accommodations for consideration” for less than 30 days, including a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, rooming house, or bed and breakfast facilities. The Texas Administrative Code also includes “manufactured homes, skid mounted bunk houses, residency inns, condominiums, cabins, and cottages within the definition of a “hotel” if the facility is rented for periods of under 30 days.8 Hospitals, sanitariums, nursing homes, dormitories or other non-hotel housing facilities owned by institutions of higher education, and oilfield portable units do not collect the tax.9 Subject to various exemptions, the hotel tax is imposed on any “person” who pays for the use of a room in a hotel, including corporations, organizations, and other legal entities. The hotel room must cost $2 or more per day for the local hotel tax to apply, and $15 or more per day for the state hotel tax to apply.10 Meeting rooms versus sleeping rooms: The rental of sleeping rooms in hotels is subject to both state and local hotel taxes. However, there is a difference in how state and local hotel taxes apply to the rental of hotel meeting rooms. While the rental of sleeping rooms in hotels are subject to both state and local hotel taxes, meeting room rentals are not subject to local hotel occupancy taxes.11 The rental of a meeting room or meeting space in a hotel is subject to the state 6 percent hotel occupancy tax, provided the room or space is physically located in a structure that also contains sleeping rooms.12 Furthermore, sales tax does not apply to the rental of either a meeting room or a sleeping room. Food and beverage and other hotel charges: Certain charges assessed by a hotel to a guest are subject to hotel occupancy taxes, while other added charges are subject to state and local sales tax. Common hotel charges usually subject to sales taxes (but generally not subject to hotel occupancy taxes) are banquet service fees, food and beverage fees, movie rentals, dry cleaning/laundry services, internet connection, parking, and portage or bellhop fees. Hotel charges related to occupancy of a sleeping room or readying a sleeping room for occupancy are usually subject to hotel occupancy taxes only. Common hotel charges subject to hotel occupancy tax are rollaway bed charges, pet charges, smoking fees, room damage fees, room safe charges, and late or early checkout fees.13 It is important to note that if a hotel offers services as part of a package rate included with lodging, and the price of a specific good or service is not separately stated on a guest’s invoice, bill, or folio, the entire package is subject to hotel occupancy taxes.14 Additionally, a special rule applies to whether hotel occupancy taxes are imposed on a hotel room rental cancellation fee. A 1989 Texas Comptroller’s hearing concluded that hotel taxes are not due on charges to guests who 1) cancel more than 30 days before the schedule stay begins, or 2) when the charge to the

8 Tex. Tax Code § 156.001; 34 Tex. Admin. Code Ann. § 3.161(a)(3) (Vernon 2009).

9 Tex. Tax Code § 156.001.

10 Tex. Tax Code § 156.051(a); § 351.002(a).

11 Id.

12 Tex. Tax Code § 156.051(a); Tex. Comptroller Opinion Letter No. 200103106L, Mar. 9, 2001.

13 THLA maintains a list of most hotel charges and which tax, if any is assessed on a particular charge. This list is available upon

request to THLA members. 14

Tex. Comptroller Opinion Letter No. 200102031L, Feb. 7, 2001.



guest is less than the reserved room rate.15 This rule applies both to individual reservations and also to group contracts.16

Exemptions from the Local Tax Texas law provides certain hotel tax exemptions based on the length of a guest’s stay or the guest’s affiliation with an exempt organization. Texas law is more permissive for exemptions from the state 6% hotel occupancy tax than it is for local hotel tax exemptions. The state hotel occupancy tax allows for an exemption for the following entities: educational, charitable, and religious entities are often exempt from the state hotel occupancy tax. These entities are not exempt from local hotel occupancy taxes.17 Focusing specifically on the local hotel occupancy taxes, there are primarily four categories of exemptions permitted from municipal and county hotel occupancy taxes:

1) Federal Employees: Federal employees traveling on official business; 2) Diplomats: Foreign diplomats with a tax exempt card issued by the U.S. Department of

State; 3) High Ranking State Officials: A very limited number of state officials with a hotel tax

exemption card (e.g. heads of state agencies, state legislators and legislative staff, members of state boards and commissions, and state judges); and

4) Permanent Resident/Over 30 Day Stay: Persons or businesses who have agreed in advance to use a hotel room for more than 30 consecutive days (i.e. the “permanent resident” hotel tax exemption).18

Hotel guests claiming items one through three of the above exemptions are required to show appropriate identification and to fill out a “Hotel Occupancy Tax Exemption Certificate” promulgated by the Texas Comptroller.19 The tax exemption certificate form is available on the Texas Comptroller’s website at http://www.window.state.tx.us/taxinfo/taxforms/12-forms.html. Permanent residents (guests who stay for more than 30 days): Special attention should be paid to the “permanent resident” hotel tax exemption. This permanent resident exemption applies to both state and local hotel taxes, and ensures that hotel guests staying over 30 days are taxed the same as residents staying at extended-stay properties, apartments, corporate rental facilities, rental houses, etc.20 The Texas Tax Code states that any “person” who has the right to use or possess a lodging room for at least 30 consecutive days is exempt from state and local hotel occupancy taxes, provided there is no interruption in payment for the room during this period.21 In Texas, a “person” also includes a corporation or business. Therefore, one should look to whether the same person, corporate entity, business, or other entity paid for the room for that entire period. If, in advance or upon check-in, the guest provides notice to a hotel of intent to occupy a guest room for

15

Texas Comptroller's Hearing Decision No. 24,654 (1989). 16

Id. 17

Tex. Tax Code § 156.102. 18

§ 156.104. 19

Id. 20

§ 156.101. 21

Tex. Tax Code § 156.101; 34 Tex. Admin. Code § 3.161(a)(4).

http://www.window.state.tx.us/taxinfo/taxforms/12-forms.html

tina.bunnell

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30 days or longer, no tax is due for any part of a guest’s stay. A signed registration card or confirmed reservation indicating a guest’s intent to occupy a room for 30 days or longer is sufficient written evidence.22 Furthermore, the guest is not actually required to physically occupy the room, but the guest must maintain the right to occupy the room for the length of the exemption period.23 If no notice is provided upon check-in that can be documented by a written agreement (guest reservation, confirmation, registration, or folio or separate agreement), the first 30 days of the guest’s stay are not tax-exempt.24 However, the guest's stay becomes automatically tax exempt on the 31st day—regardless of whether there was prior notice of the guest’s intent to stay for 30 days or more, as long as there has been no interruption in payment for the room.25 THLA generally recommends hoteliers collect hotel occupancy taxes from the guest for the first 30 days of the guest’s stay. On the 31st day of the guest’s stay, provided there is no interruption of payment for the room and there was prior written notice or a reservation indicating the guest’s intent to stay 30 days or longer, the hotel should refund the collected hotel occupancy taxes for the first thirty days. This protects the hotel from incurring tax liability should the guest check out before staying at least 30 days. The hotel could choose to not collect the hotel tax during the stay if the guest paid in advance for the entire 30 days and there was no allowance for a refund if the guests checks out early. State Employees: Virtually all rank and file state employees do not have a special hotel occupancy tax exemption card that prevents them from having to pay the state and local hotel tax even when they are on official business. Such state employees must pay the state and local hotel occupancy tax when paying their bill and, their employing agency may later apply for a refund from the state and local government tax offices.26 The state agency the employee works for is responsible for requesting this refund from the state and local government. City and County Employees/Officials: City and county officers and employees are not exempt from the state or the local hotel occupancy tax, even if the officers or employees are traveling on official business.27 Additionally, cities have no legal authority to authorize additional exemptions from the hotel occupancy tax not recognized in the Tax Code.28 The Attorney General ruled in JM-865 (1988) that cities cannot grant an exception to the hotel occupancy tax for religious, charitable, or educational organizations without new constitutional or statutory authority to do so. Letters of tax exemption: The Texas Comptroller maintains an online database of entities that have been granted a “Letter of Tax Exemption” from the state hotel occupancy tax. Most commonly, these organizations fall into the religious or charitable categories of exemption from the state hotel occupancy tax, and the Comptroller generally requires a letter of tax exemption to accompany a completed exemption certificate before an exemption may be granted on this basis. This database is accessible online at

22

Tex. Comptroller Opinion Letter No. 200601452L, Jan. 27, 2006. 23

34 Tex. Admin. Code § 3.161(b)(2)(C). 24

§ 3.161(b)(2)(A). 25

Id. 26

§3.163(b). 27

See generally Tex. Tax Code § 351.005; Tex. Comptroller Opinion Letter No. 200202815L, Feb. 22, 2002. 28

Tex. Att’y Gen. JM-865 (1988).

tina.bunnell

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http://www.window.state.tx.us/taxinfo/hotel/index.html. It is important to note that many entities are exempt from the state sales tax, but are not exempt from the state or local hotel occupancy tax. For religious entities with a national affiliation, oftentimes the national organization’s letter of tax exemption will cover individual congregations.29 For example, a search of “Baptist Convention” on the online database reveals that the “NATIONAL BAPTIST CONVENTION OF AMERICA INCORPORATED” holds a letter of tax exemption that will also be valid for subordinate entities. An individual Baptist congregation affiliated with the National Baptist Convention can use the national organization’s letter of tax exemption to accompany the signed exemption certificate. Finally, the Comptroller’s staff has indicated they are willing to exercise some flexibility for lodging properties that accept a tax exemption certificate in good faith from a qualifying religious entity when the entity may not yet have formally filed for a letter of tax exemption. This, however, should only be relied upon as a last resort, as there is no official report of this position, and auditors are trained to look for definitive documentation. In such a case, check the identification papers (ID, business card, etc.) for the traveler. If the entity fits into one of the exempt categories under the THLA exemption chart, honor the exemption if that entity is paying for the room. Make a copy of the identification item you are relying on, and be sure that all such travelers fill out the exemption certificate. To simplify the hotel tax exemption issue, THLA publishes a chart a hotel or city official can utilize to determine when an exemption is proper starting on the next page:

29

Tex. Comptroller Opinion Letter No. 200109470L, Sep. 13, 2001.

http://www.window.state.tx.us/taxinfo/hotel/index.html



THLA’s Simplified Hotel Occupancy Tax Exemption Rules TYPE OF BUSINESS REQUESTING EXEMPTION

EXEMPT FROM STATE H.O.T.

EXEMPT FROM LOCAL H.O.T.

COMMENTS

Agricultural Development Corporations

Yes Yes Guest must present Texas Comptroller letter of tax exemption, and Guest must fill out tax exemption certificate.

City & County Employees Not exempt Not exempt Local government employees are not exempt from hotel taxes, even when traveling on official business.

Charitable Organizations Depends (see comments to the right)

Not exempt Guest must present Texas Comptroller letter of tax exemption, and Guest must fill out tax exemption certificate. Charitable entities must be able to show that they devotes all or substantially all of their activities to the alleviation of poverty, disease, pain, and suffering by providing food, clothing, drugs, treatment shelter, or psychological counseling directly to indigent or similarly deserving members of society, with entity funds derived from sources other than fees or charges for its services. Other 501 (c) (3) and 501 (c) (6) entities are not exempt.

Texas Educational Organizations (see comments on the right regarding differences between Texas and out-of-state educational organizations)

Yes Not exempt Guest must fill out tax exemption certificate. State law limits the state hotel occupancy tax exemption for higher education entities to only Texas institutions of higher education. Out-of-state higher education entities are not exempt from the state or local hotel tax. However, out-of-state educational entities that are not institutions of higher education (high schools, middle schools, elementary schools, etc.) are exempt from state hotel taxes just like their Texas counterparts.

Electric & Telephone Cooperatives


Federal Credit Unions Yes Yes Guest must fill out tax exemption certificate, and Present a valid ID. Texas Comptroller opinion letters indicate that employees traveling on official business as employees of a federal credit union are treated as federal government employees.

Federal Employees (includes FEMA and Red Cross reimbursed rooms)

Yes Yes Guest must fill out tax exemption certificate, and Present a valid ID.

Foreign Diplomats Yes Yes Guest must fill out tax exemption certificate, and Guest must present tax exempt card issued by U.S. Department of State.



TYPE OF BUSINESS REQUESTING EXEMPTION

EXEMPT FROM STATE H.O.T.

EXEMPT FROM LOCAL H.O.T.

COMMENTS

Health Facilities Development Corporations


Housing Authorities & Finance Corporations


Pan American Games Olympic Games Local Organizing Committees


Permanent Residents (30 days or more)

Yes Yes Guest must notify of their intent to stay 30 or more days from the beginning. If stay is interrupted, hotel occupancy taxes must be paid. Guests who do not notify the hotel of the anticipated over 30 day duration of their stay are exempt for hotel occupancy taxes beginning on the 31

st consecutive day of their stay.

Public Facility Corporation


Regional Education Service Centers

Yes Not exempt Guest must present Texas Comptroller letter of tax exemption, and Guest must fill out tax exemption certificate.

Religious Organizations Yes Not exempt Guest must present Texas Comptroller letter of tax exemption, and Guest must fill out tax exemption certificate.

High Ranking State Officials with Hotel Tax Exemption Photo ID Card

Yes Yes Guest must present Texas Comptroller letter of tax exemption, and Guest must present state photo ID card that specifically notes that employee is exempt from hotel occupancy tax. These are heads of state agencies; members of state boards and commissions; state legislators and their staff; and state judges.

General State Employees without Special Hotel Tax Exemption Photo ID Card

Not exempt Not exempt Guest must pay the state and local hotel tax, and then have their state agency may apply for reimbursement through a separate process.



How the City Receives the Tax The hotel occupancy tax is collected from the hotel guest by the hotel when the guest makes payment to the hotel. The tax is then remitted by the hotel to the city on a regular basis, to be established by the city. Although the Texas Comptroller's Office is not directly involved in the collection of the local hotel occupancy tax, cities often use the same reporting timeframes and forms used by the Texas Comptroller for collection of the local hotel occupancy tax. This allows hotels to follow a consistent payment pattern. The Texas Comptroller’s timeframes are as follows: Hotels owing less than $500 in state hotel tax for each calendar month, or $1,500 for a calendar quarter, report and remit tax on the 20th day of the month following the end of the quarter. All other hotels file monthly state hotel tax returns by the 20th day of the following month. If the 20th day falls on a weekend or bank holiday, the return is due on the next business day.30 Regardless of the reporting period used, cities often require hotels to include a copy of the hotel’s state hotel tax report for the Texas Comptroller as part of their report. The state report data may be used to check the local report provided by the hotel to the city. It is important to remember, however, that the amount of taxable revenue will vary to a certain degree between the state and local hotel tax based on the amount of state hotel tax exempt business a property handles that is not exempt from the local hotel tax, and the amount of meeting room rentals subject solely to the state hotel tax.

Reimbursement of Hotel for Collection Expenses By ordinance, a municipality may allow hotel operators to retain up to 1 percent of the amount of hotel occupancy taxes collected as reimbursement for the costs of collecting the tax.31 The municipality may require hotels to forfeit the reimbursement because of a failure to pay the tax or failure to file a report as required by the municipality.32 One should take note that the state statutes do not contain provisions allowing city governments to retain any of the collected tax to cover costs of imposing or collecting the tax. However, cities that undertake responsibility for administering a facility or event funded by the local hotel occupancy tax may be reimbursed from the tax revenues for actual expenses incurred in operating the facility or event, if the expenditure directly promotes tourism and local hotel and convention activity.33

Penalties for Failure to Report or Collect the Tax The local hotel occupancy tax statutes provide for specific penalties a city may assess against hotel operators who fail to file the hotel tax collections report, file late or without full payment, or produce false tax returns.34 Delinquency penalties and attorney’s fees: A city may include a provision in its hotel occupancy tax ordinance that imposes a 15 percent penalty of

30

Tex. Comptroller, http://www.window.state.tx.us/taxinfo/hotel/faqhotel.html. 31

Tex. Tax Code § 351.005(a). 32

§ 351.005(b). 33

§ 351.101(e). 34

§ 351.004.

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the total amount of the tax owed, but only if the tax has been delinquent for at least one complete municipal fiscal quarter.35 Additionally, a delinquent hotel operator may be liable to the municipality for the municipality's reasonable attorney’s fees.36 The hotel occupancy tax ordinance may also include a provision that makes it a criminal misdemeanor offense for failure to collect the tax, failure to file a return, filing a false return, or failure to timely make the remittances.37 Audit costs and concurrent state tax delinquencies: A city can require a hotel to pay the costs of a city audit of the hotel’s revenues if the hotel did not file a tax report as required by the municipality, but only if 1) the hotel is delinquent for at least two complete municipal calendar quarters, and 2) the municipality has not received a disbursement from the Texas Comptroller for the hotel’s concurrent state hotel tax delinquency.38 The concurrent state hotel tax delinquency provision in the Tax Code allows cities to receive a commission from the Texas Comptroller if the Comptroller successfully utilizes city audit information to collect delinquent state hotel taxes from the hotel.39 First, a city submits any documentation or other information to the Comptroller that shows a hotel’s failure to collect of pay state hotel occupancy tax. The Comptroller then reviews the submitted information and determines whether to proceed with collection and enforcement.40 If the information submitted by the city results in the collection of delinquency state hotel occupancy taxes, the Comptroller will remit 20 percent of the revenues collected by the Comptroller to the city, to defray the city’s audit costs.41 Alternatively, a city may request hotel occupancy tax audit information from the Texas Comptroller. However, the city must keep such information confidential, and use the information only for enforcement or administration of the city’s hotel tax. To obtain such information, a city must make a written request to the Comptroller’s Office, Open Records Section, at P.O. Box 13528, Austin, Texas 78711. The request must be on city letterhead and signed by a high-level city official, preferably the mayor. A city may also fax such a written request to the Comptroller’s Office, Open Records Section, at (512) 475-1610.

Enforcement Authority of a City Cities are also given the authority to take the following actions against a hotel operator who fails to report or collect the local hotel occupancy tax: require the forfeiture of any revenue the city allowed the hotel operator to retain for its cost of

collecting the tax;42 bring a civil suit against the hotel operator for noncompliance;43 ask the district court to enjoin operation of the hotel until the report is filed and/or the tax is

35

Id. 36

§ 351.004. 37

Id. 38

Id. 39

Id. 40

Id. 41

Id. 42

Id. 43

Id.

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paid;44 and any other remedies provided under Texas law.

The most noteworthy of these remedies is the ability of the city to request that the district court close down the hotel if the hotel occupancy taxes are not turned over. Informing the hotel operator of the possibility of such a closure generally results in compliance by the hotel. A city may also require in its hotel occupancy tax ordinance that persons buying a hotel retain out of the purchase price an amount sufficient to cover any delinquent hotel occupancy taxes that are due to the city.45 If the buyer does not remit this amount or show proof that the hotel is current in remitting its hotel occupancy taxes, the buyer becomes liable for any past delinquent hotel occupancy taxes due on the purchased hotel.46 The purchaser of a hotel may request that the city provide a receipt showing that no hotel occupancy tax is due (“Letter of No Tax Due”) on the property to be purchased.47 The city is required to issue the statement not later than the 60th day after the request.48 If the city fails to issue the statement by the deadline, the purchaser is released from the obligation to withhold the amount due from the purchase price.49

44

Id. 45

§ 351.0041. 46

Id. 47

Id. 48

Id. 49

Id.



Use of Local Hotel Occupancy Tax Revenues There is a two-part test for every expenditure of local hotel occupancy tax.50

Criteria #1: First, every expenditure must DIRECTLY enhance and promote tourism AND the convention and hotel industry.51

Under the Tax Code, every event, program, or facility funded with hotel occupancy tax revenues must be likely to do two things: 1) directly promote tourism; and 2) directly promote the convention and hotel industry.52 “Tourism” is defined under Texas law as guiding or managing individuals who are traveling to a different, city, county, state, or country.53 A “direct” promotion of the convention and hotel industry has been consistently interpreted by the Texas Attorney General as a program, event, or facility likely to cause increased hotel or convention activity.54 This activity may result from hotel or convention guests that are already in town and choose to attend the hotel tax funded facility or arts or historical event, or it may result from individuals who come from another city or county to stay in an area lodging property at least in part to attend the hotel tax funded event or facility. If the funded event or facility is not reasonably likely to directly enhance tourism and the hotel and convention industry, local hotel occupancy tax revenues cannot legally fund it.55 However, it is important to note that events and facilities that do not qualify for hotel occupancy tax funding are often still legally eligible for city funding from most of the other funding sources available to the city (general property tax revenues, general sales tax revenues, franchise fee revenues, etc.). State law is stricter in terms of how the local hotel occupancy tax revenues can be spent. There is no statutory formula for determining the level of impact an event must have to satisfy the requirement to directly promote tourism and hotel and convention activity.56 However, communities with successful tourism promotion programs generally award the amount of the hotel occupancy tax by the proportionate impact on tourism and hotel activity incident to the funding request. Entities applying for hotel occupancy tax revenue funding should indicate how they will market the event to attract tourists and hotel guests. If an entity does not adequately market its events to tourists and hotel guests, it is difficult to produce an event or facility that will effectively promote tourism and hotel activity. A city or delegated entity should also consider whether a funded event will be held in a venue that will likely attract tourists and hotel guests. For example, if an event is held in a local school or community center, it may be less likely to attract tourists than if it is held at a local performing arts venue, museum or civic center. Each community will need to assess whether the facility hosting the function is likely to attract tourists and hotel guests. Similarly, if an event is a community picnic, local parade, educational class, or other similar type of event, it is often not likely to attract tourists and hotel guests, and would likely not be eligible for hotel occupancy tax funding.

50

§§ 351.101(a), (b). 51

§§ 351.101(b). 52

Id. 53

§ 351.001(6). 54

See Op. Tex. Att’y Gen. Nos. GA-0124 (2003), JM-690 (1987). 55

Id. 56

See generally Tex. Tax Code §§ 351.101(a), (b).

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Finally, it is a good practice to utilize a hotel tax application form. THLA has a sample hotel occupancy tax application form and a “post event” form that are already in use by many city governments throughout Texas. For a copy of these two forms, simply call THLA at (512) 474-2996, or email THLA at [email protected]. These forms pose questions of funding applicants such as “Do you have a hotel room block for your events?,” and “What do you expect to be the number of room nights sold for this event?” Additionally, the application asks if the entity has negotiated a special hotel price for attendees of their funded event. If the entity does not find the need to reserve a hotel block or negotiate a special hotel rate, it is not likely that they anticipate their event/s will have a meaningful impact on hotel activity. Funded entities can also visit with area hoteliers who, in many cases, can provide feedback on whether any of their hotel guests expressed an interest in attending such events or facilities in the past. Hotel front desk and management staff usually know what local events and facilities were of interest to their guests by notes in their reservation systems, requests for directions, information and transportation to such venues by hotel patrons. After an applicant’s event or program is offered for several years, the applicant should have a reasonable idea as to whether their event or program’s attendance includes a number of tourists and hotel guests. For example, some entities track whether guests are staying at local hotels via their guest registry. Other entities measure potential out-of-town attendance from their ticket sales records or other survey information. It is important to note that Texas law also provides that the hotel occupancy tax may not be used for general revenue purposes or general governmental operations of a municipality.57 It also may not be used to pay for governmental expenses that are not directly related to increasing tourism and hotel and convention activity.58 For example, consider a request to use the hotel occupancy tax to pay for construction of additional lighting, restrooms, roads, sidewalks, or landscaping in a downtown area. These are expenditures for which the city would traditionally use its general revenues. Therefore, such an expenditure would violate the prohibition against using the hotel tax for “general governmental operations of a municipality.”59 It is difficult to argue that such improvements to a non-tourism facility would “directly” promote tourism and hotel activity. At best, one could argue the improvements would “indirectly” enhance tourism and hotel activity—which is not sufficient under the clear language of the Tax Code to qualify for funding from the hotel occupancy tax.

57

Tex. Tax Code § 351.101(b); see also Op. Tex. Att’y Gen. Nos. JM-184 (1984), JM-965(1988). 58

Id. 59

Id.

mailto:[email protected]

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Criteria #2: Every expenditure of the hotel occupancy tax must clearly fit into one of nine statutorily provided categories for expenditure of local hotel occupancy tax revenues.60 The nine categories for expenditure of the hotel occupancy tax are as follows:

1) Funding the establishment, improvement, or maintenance of a convention center or visitor information center.

This category allows expenditures of the hotel tax for the creation, improvement, or upkeep of a convention center or a visitor information center.61 The term “convention center” is defined to include civic centers, auditoriums, exhibition halls, and coliseums that are owned by the city or another governmental entity or that are managed in whole or in part by the city.62 It also includes parking areas in the immediate vicinity of a convention center facility, and certain hotels that are owned by the city or another governmental entity, or that are managed in whole or in part by the city.63 It does not include facilities that are not of the same general characteristics as the structures listed above. Texas law specifies that for a facility to be funded as a convention center, it must be a facility primarily used to host conventions and meetings.64 “Primarily used” in this context would arguably mean that more than 50 percent of the bookings for the facility are to host conventions or meetings that directly promote tourism and the hotel and convention industry.65 In other words, holding local resident meetings in a facility would not count toward qualifying the facility as a convention center, but meetings of individuals from out-of-town who in part stay at hotels would qualify. Simply naming a facility a convention center or visitor information center does not automatically qualify the facility as a “convention center.” The authority to use the hotel occupancy tax for facilities is limited and any such facility must meet the above noted “primary usage” test. For example, general civic buildings such as the city hall, local senior citizen centers or activity centers would not qualify as convention centers that could be funded by hotel tax.

2) Paying the administrative costs for facilitating convention registration. This provision allows expenditures for administrative costs that are actually incurred for assisting in the registration of convention delegates or attendees.66 This is generally an expenditure for larger cities that hold large conventions, and includes covering the personnel costs and costs of materials for the registration of convention delegates or attendees.

60

Tex. Tax Code § 351.101(a). 61

§ 351.101(a)(1). 62

§ 351.001(2). 63

Id. 64

Id. 65

Id.; see generally Tex. Tax Code §§ 351.101(a), (b). 66

Tex. Tax Code § 351.101(a)(2).

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3) Paying for advertising, solicitations, and promotions that attract tourists and convention delegates to the city or its vicinity.

This provision allows expenditures for solicitations or promotional programs/advertising directly related to attracting tourists and convention delegates to the city or its vicinity.67 Such expenditures are traditionally in the form of internet, newspaper, mail, television, or radio ads; or solicitations to promote an event or facility. The advertising or promotion must directly promote the hotel and convention industry.68 For example, the Texas Attorney General ruled that the local hotel occupancy tax may not be used for advertising or other economic development initiatives or improvements to attract new businesses or permanent residents to a city.69 In certain cases, a city may be able to use the advertising and promotion category to justify covering the costs of advertising an event that will attract tourists and hotel guests, even though the administrative or facility costs for the underlying event would not qualify for hotel tax funding.70

4) Expenditures that promote the arts. This section authorizes the expenditure of local hotel occupancy tax for a variety of art-related programs that also promote tourism and local hotel and convention activity.71 Specifically, it allows funding the encouragement, promotion, improvement, and application of the arts including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution and exhibition of these major art forms.72 However, it is not enough that a facility or event promotes the arts; Texas law requires that the arts related expenditure also directly promote tourism and the hotel and convention industry.73 Section 351.101(a) of the Tax Code specifically states that “the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry.” The Texas Attorney General reaffirmed this standard when it held in Opinion GA-0124: “Under section 351.101 of the Tax Code, a municipality may expend its municipal hotel occupancy tax revenue ’only to promote tourism and the convention and hotel industry,’ and only for the specific uses listed in the statute.” There are many success stories of cities that have partnered with the arts entities to turn one day arts events into multi-day events that can substantially increase tourism and hotel activity. Such partnerships and long term planning can help both foster the arts and grow hotel tax proceeds that can be made available to the arts. Additionally, the amount of funding a city allocates to the arts category may be limited by statute. See the “Special Rules” section of this guide, starting on page 23.

67

§ 351.101(a)(3). 68

§ 351.101(b). 69

Op. Tex. Att’y Gen. Nos. JM-690 (1987). 70

See generally Tex. Tax Code § 351.101(a)(3). 71

Tex. Tax Code § 351.101(a)(4). 72

Id. 73

§ 351.101(b).

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5) Funding historical restoration or preservation programs. A city may spend a portion of its hotel occupancy tax revenues to enhance historical restoration and preservation projects or activities, or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums that are likely to attract tourists and hotel guests.74 Texas law does not limit such funding to structures that are owned by a public or nonprofit entity, or to whether the project is listed on a historic registry, but the city may choose to impose such limitations. It is not enough that a project or activity event merely be historical in nature; Texas law requires that the historical related expenditure also directly promote tourism and the hotel and convention industry.75 Section 351.101(a) of the Tax Code specifically states that “the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry.” The Attorney General in Opinion GA-0124 (2003) reaffirmed this standard when it held: “Under section 351.101 of the Tax Code, a municipality may expend its municipal hotel occupancy tax revenue "only to promote tourism and the convention and hotel industry" and only for the specific uses listed in the statute.” Additionally, the amount of funding a city allocates to the historical programs category may be limited by statute. See the “Special Rules” section of this guide, starting on page 23.

6) Funding certain expenses, including promotional expenses, directly related to a sporting event within counties with a population of under 1 million.

This section authorizes a municipality located in a county with a population of under 1 million to use local hotel occupancy tax revenue to fund certain expenses, including promotional expenses, directly related to a sporting event.76 To qualify under this authorization, the sporting event must be one that would “substantially increase economic activity at hotels and motels within the city or its vicinity.”77 The statutory authorization also requires that a majority of the participants in the sporting event also be tourists to the area.78 This category is intended to allow communities to fund the event costs for sporting tournaments that result in substantial hotel activity. For example, if a city had to pay an application fee to seek a particular sporting event or tournament, if could use hotel tax for such an expenditure if the sporting event would substantially increase economic activity at hotels and the city was within a county of under one million population. The requirement that a majority of the participants must be “tourists” is included in the statuary authority to prohibit the use of local hotel tax for sporting related facilities or events are purely local (e.g.; local recreation centers, local little league and parks events, intramural sports, etc.).

74

§ 351.101(a)(5). 75

§ 351.101(b). 76

§ 351.101(a)(6). 77

Id. 78

Id.



7) Funding the enhancement or upgrading of existing sports facilities or sports fields for certain municipalities.

Certain statutorily bracketed cities may use local hotel occupancy tax to enhance and upgrade existing sports facilities owned by the municipality.79 Acceptable sports facilities include those for baseball, softball, soccer, and flag football.80 The municipality must own the sporting facility, and the municipality must meet one of the following population requirements:

i. The municipality has a population of 80,000 or more, and is located in a county that has a population of 350,000 or less: Abilene, Amarillo, Beaumont, College Station, Corpus Christi, Killeen, Laredo, League City, Longview, Lubbock, Midland, Odessa, Pearland, San Angelo, Tyler, Waco, and Wichita Falls.81

ii. The municipality has a population of at least 75,000, but not more than 95,000, and is located in a county that has a population of less than 200,000 but more than 160,000: Bryan and College Station.82

iii. The municipality has population of at least 36,000, but not more than 39,000, and is located in a county that has a population of 100,000 or less that is not adjacent to a county with a population of more than two million: Huntsville and Texarkana.83

iv. The municipality has a population of at least 13,000 but not more than 39,000, and is located in a county that has a population of at least 200,000: Addison, Alamo, Alvin, Angleton, Balch Springs, Bellaire, Benbrook, Burleson, Colleyville, Converse, Coppell, Copperas Cove, Corinth, Deer Park, Dickinson, Donna, Duncanville, Farmers Branch, Friendswood, Groves, Hewitt, Highland Village, Horizon City, Harker Heights, Humble, Hurst, Hutto, Katy, La Marque, La Porte, Lake Jackson, Lancaster, Leander, Little Elm, Live Oak, Mercedes, Murphy, Nederland, Port Neches, Portland, Rio Grande City, Rosenberg, Sachse, Saginaw, San Benito, San Juan, Schertz, Seagoville, Socorro, South Houston, Southlake, Stafford, Taylor, The Colony, Universal City, University Park, Watauga, Weslaco, West University Place, and White Settlement.84

v. The municipality has a population of at least 70,000, but not more than 90,000, and no part of the city is located in a county with a population greater than 150,000: Longview.85

vi. The municipality is located in a county that is adjacent to the Texas-Mexico border, has a population of at least 500,000 and the county does not have a municipality with a population greater than 500,000: Cities in Hidalgo County including, but not limited to McAllen, Edinburg, Mission, and Pharr.86

vii. The municipality has a population of at least 25,000 but not more than 26,000, and is located in a county that has a population of 90,000 or less: Greenville and Paris.87

[Note that statutory population brackets are based on the decennial U.S. Census, most recently conducted in 2010.88]

79

§ 351.101(a)(7). 80

Id. 81

§ 351.101(a)(7)(B)(i). 82

§ 351.101(a)(7)(B)(ii). 83

§ 351.101(a)(7)(B)(iii). 84

§ 351.101(a)(7)(B)(iv). 85

§ 351.101(a)(7)(B)(v). 86

§ 351.101(a)(7)(B)(vi). 87

§ 351.101(a)(7)(B)(vii). 88

Tex. Gov’t Code Ann. § 311.005(3) (Vernon 2011).

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Texas law further requires that before local hotel tax to be used for this purpose, the sports facilities and fields must have been used a combined total of more than 10 times for district, state, regional, or national sports tournaments in the preceding calendar year.89 If hotel tax revenues are spent on enhancing or upgrading a sports facility, the municipality must also determine the amount of “area hotel revenue” generated by hotel activity from sports events held at the hotel tax funded facility for five years after the upgrades to the sport facility are completed.90 The area hotel revenues that were generated from sports events at the hotel tax funded facility over that five year period must at least equal the amount of hotel tax that was spent to upgrade the sports facility.91 If the amount of hotel tax that was spent on the facility upgrades exceeds hotel revenue attributable to events held at that facility over that five year period, the municipality must reimburse the hotel occupancy tax revenue fund any such difference from the municipality’s general fund.92 For example, if a city spent $400,000 on improvements to its soccer fields, it would have to show at least $400,000 in area hotel revenue directly attributable to events held at that soccer field over the five year period after the soccer field improvements were completed. If the city could only show $300,000 in hotel industry revenue due to events held at that soccer field, the city would have to reimburse the city hotel tax with the $100,000 difference from the city’s general fund.

8) Funding transportation systems for tourists Often with conventions and large meetings, there is a need to transport the attendees to different tourism venues. In 2007, the Texas Legislature authorized the use of city hotel tax for any sized city to cover the costs for transporting tourists from hotels to and near the city to any of the following destinations: the commercial center of the city; a convention center in the city; other hotels in or near the city; and tourist attractions in or near the city.93

The reimbursed transportation system must be owned and operated by the city, or privately owned and operated but financed in part by the city.94 For example, this authority could be used to cover the costs of a city to finance certain private shuttles to operate between the convention center and area hotels and attractions for a large city-wide convention. The law specifically prohibits the use of the local hotel tax to cover the costs for a transportation system that serves the general public.95

89

Tex. Tax Code §§ 351.101(a)(7), 351.1076. 90

Id. 91

Id. 92

Id. 93

§ 351.110(a). 94

§ 351.110(b). 95

§ 351.110(c).

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9) Signage directing tourists to sights and attractions that are visited frequently by hotel guests in the municipality.

In 2009, the Texas Legislature added a statutory category that allows cities to use municipal hotel occupancy tax revenue to pay for signage directing tourists to sights and attractions frequently visited by hotel guests in the municipality.96 Arguably, this type of expenditure was permissible as “advertising and promotion” prior to this 2009 legislation. However, the Legislature codified this understanding to officially include signage directing tourists to sights and attractions that are frequently visited by hotel guests.97

Summary of the Nine Uses for the Local Hotel Occupancy Tax In summary, local hotel occupancy tax revenues only may be spent to establish or enhance a convention center or visitor information center, cover the administrative expenses for registering convention delegates, pay for tourism-related advertising and promotions, fund arts programs or facilities that will directly promote tourism and hotel and convention activity, fund historic restoration or preservation projects that will enhance tourism and hotel and convention activity, in certain counties and cities noted above fund certain costs for holding sporting events and making upgrades to sporting facilities that substantially increase local hotel activity, certain transportation costs for taking tourists from hotels to various locations, and pay for signage directing tourists to sights and attractions frequently visited by hotel guests. If the city cannot fit an expenditure within one of these nine categories, hotel occupancy tax revenues cannot be used for that purpose, unless a special state statute was passed to allow such additional uses. This article includes a summary of special provisions and limitations placed on cities that fall into certain population brackets or special geographic areas of the state. With regard to the use of local hotel occupancy taxes, there is no time limit for a city to expend all of its hotel occupancy tax funds. At a minimum, however, state law does require that for cities with a seven percent local hotel tax rate, at least one-seventh of the hotel tax proceeds must be spent advertising and promoting the city to directly impact tourism and the hotel and convention industry.98 It should also be noted that state law requires that interest earned on hotel tax must be spent in the same way as other hotel tax revenues.99 State law does not address revenues that are earned from events funded by the local hotel occupancy tax.

96

§ 351.101(a)(9). 97

Id. 98

§§ 351.103, 351.1035, 351.104(d), 351.105(b), and 351.106(a). 99

§§ 351.001(9), (10).

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Administering Hotel Occupancy Tax Revenue Expenditures Duty of funded entities to provide a list of activities. All entities (including the city itself) that are directly or indirectly funded by the local hotel occupancy tax are annually required to provide a list of the scheduled activities, programs, or events that will directly enhance and promote tourism and the convention and hotel industry.100 This list is to be provided annually to the city secretary or his/her designee prior to the expenditure of the hotel occupancy tax funding by the funded entity.101 An entity may add items to this list at any time, and each city decides the format for providing this information. This documentation requirement does not apply if the entity already provides written information to the city indicating which scheduled activities or events that it offers that directly enhance and promote tourism and the convention and hotel industry. For example, cities that require quarterly or annual reports on the use of hotel tax by hotel tax funded entities would satisfy this requirement if their report addresses the extent to which their events directly promote tourism and hotel activity.102 It is important to remember that if an entity does not have any such events or programs reasonably expected to directly promote tourism and the hotel and convention industry, it is not eligible for local hotel occupancy tax funding.103 If only a portion of an entity’s programs fit this criteria, then only a proportionate amount of that entity’s costs should be covered by the local hotel occupancy tax.104

Delegating management of funded activities. The governing body of a city may delegate the management or supervision of programs funded by the hotel occupancy tax by written contract.105 This delegation may be made to a person, another governmental entity, or to a private organization.106 This delegation is often made to a local arts council, a chamber of commerce, or to the convention and visitors bureau. The municipality shall approve the entity’s annual budget prior to delegating the management or supervision of hotel tax funded programs.107 Furthermore, the municipality shall require the delegated entity to make periodic reports, at least quarterly, listing the hotel occupancy tax expenditures made by the delegated entity.108 Additionally, the Code requires that the contracted entity maintain complete and accurate financial records for every expenditure of hotel occupancy tax revenue, and upon the request of the municipality or another person, make the records available for inspection and review.109 An entity with delegated authority to manage hotel tax funded programs undertakes a fiduciary duty with respect to the use of the tax revenue.110 Such entities are also required to maintain the city hotel occupancy tax revenue in a separate bank account that may not be commingled with any other account

100

§ 351.108(b). 101

Id.; § 351.108(d). 102

§ 351.108(g). 103

§ 351.101(b). 104

§ 351.101(e). 105

§ 351.101(c). 106

Id. 107

Id. 108

Id. 109

§ 351.101(d). 110

§ 351.101(c).



or funds.111 The Tax Code does not contain similar prohibitions against commingling the funds for individual organizations, such as an arts or historical group that receives hotel tax funding for their individual program, but do not themselves oversee hotel tax funding to other entities.

Use of hotel occupancy tax revenues to cover administrative expenses. Texas law allows proceeds of the municipal hotel occupancy tax to be used to cover the portion of administrative costs that are directly attributable to work on activities that may be funded by the tax.112 For example, entities that manage activities funded by the hotel occupancy tax may spend some of the tax for certain day-to-day operational expenses.113 These expenses may include supplies, salaries, office rental, travel expenses, and other administrative costs.114 However, these costs may be reimbursed only if the expenses are incurred in the promotion and servicing of expenditures authorized under the hotel occupancy tax laws.115 The portion of the administrative costs that are covered should not exceed the percentage of the cost that is attributable to the activity funded by the hotel occupancy tax.116 For example, administrators who spend 33 percent of their time overseeing hotel occupancy tax funded programs should seek funding for no more than 33 percent of their salary or 33 percent of other related overhead costs. Additionally, hotel occupancy tax revenues may be spent on travel that is directly related to the performance of the person’s job in an efficient and professional manner.117 This travel should facilitate the acquisition of skills and knowledge that will promote tourism and the convention and hotel industry.118

111

Id. 112

§ 351.101(e). 113

Id. 114

Id. 115

Id. 116

Id. 117

§ 351.101(f). 118

Id.

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Special Rules for Selected Municipalities The Texas Tax Code provides additional rules for certain Texas cities based on the city’s population bracket. Where noted, these special rules supplement or further restrict the general two-part test for hotel occupancy tax revenue expenditures, discussed earlier in this guide. For statutory construction purposes, population brackets are based on the decennial federal census, most recently conducted in 2010.119

Cities with a population of 200,000 or greater (except Houston): Arlington, Austin, Corpus Christi, Dallas, El Paso, Fort Worth, Garland, Irving, Laredo, Lubbock, Plano, and San Antonio. In addition to the general two part test for all expenditures of the hotel occupancy tax revenue, the above cities have certain specific expenditure limitations that apply to their handling of the local hotel occupancy tax.

Minimum expenditure that must be spent on advertising and promotion: A city with a population of 200,000 or greater is required to spend at least 50 percent of the hotel occupancy tax collected by the city on advertising and conducting solicitations and promotional programs to attract tourists to the city or its vicinity.120 However, if the city collects more than $2 million in hotel tax revenues annually, this 50 percent minimum expenditure requirement does not apply.121

15 Percent maximum expenditure for the arts and 15 percent maximum expenditure for historical restoration and preservation: Under § 351.103(c), a city with a population of at least 200,000 may not expend more than the greater of either 15 percent of the hotel occupancy tax revenue collected or the amount of tax received by the city at the rate of 1 percent of the cost of a room on promotion of the arts.122 Also, a city with a population of more than 125,000 may not spend more than 15 percent of its hotel occupancy tax revenue on historical restoration and preservation programs.123

Special rules for the City of Houston.

Maximum hotel occupancy tax rate for Houston: Houston is capped by statute at a total combined hotel occupancy tax rate of 17 percent.124 This includes the state, city, county, and sports authority hotel occupancy taxes.125

119

Tex. Gov’t Code § 311.005(3). 120

Tex. Tax Code § 351.103(a). 121

§ 351.103(b). 122

§ 351.103(c). 123

§ 351.103(c). 124

Tex. Tax Code §§ 352.003, 351.003(a); Tex. Local Gov’t Code Ann. § 382.155 (Vernon 2011). 125

Id.



Minimum 23 percent expenditure for advertising and promotion: The City of Houston must spend at least 23 percent of the tax revenue it collects on advertising and promotion, unless the allocation impairs the City’s ability to operate and maintain its convention center facilities or to pledge revenue for the payment of convention center bonds.126

Maximum 19.3 percent expenditure for arts: The City of Houston may not expend more than the greater of 19.3 percent of the hotel occupancy tax revenue collected or the amount of tax received by the city at the rate of 1 percent of the cost of a room on promotion of the arts.127

Additional rules for “eligible central municipalities:” Austin, Arlington, Corpus Christi, Dallas, Fort Worth, Garland, Grand Prairie, Irving, and San Antonio. Austin, Arlington, Corpus Christi, Dallas, Fort Worth, Garland, Grand Prairie, Irving, and San Antonio fall under the statutory definition of an “eligible central municipality.”128 An “eligible central municipality” is defined as a municipality with a population of more than 140,000 but less than 1.5 million that is located in a county with a population of one million or more, and that has adopted a capital improvement plan for the expansion of an existing convention center facility; or a municipality with a population of 250,000 or more that is located wholly or partly on a barrier island in the Gulf of Mexico, is located in a county with a population of 300,000 or more; and has adopted a capital improvement plan to expand an existing convention center facility.”129

Ability to pledge revenue for a convention center hotel or a historic hotel: Eligible central municipalities may pledge hotel occupancy tax revenue for a convention center hotel, a historic hotel, convention center entertainment related facilities, restaurants, or certain civic projects.130 However, only the revenue collected from that particular project for a period of up to ten years may be pledged.131 Eligible central municipalities are also permitted to pledge the sales tax from such a project to repay the costs for up to ten years.132

Dallas only: 55% maximum on convention center and 45% minimum on advertising. Dallas falls into an additional category, “Populous Municipalities with Council-Manager Government,” which requires it to use the revenue derived from the portion of the municipal hotel occupancy tax rate that exceeds 4 percent for the following purposes: 1) no more than 55 percent for the municipality’s convention center complex; and 2) at least 45 percent for advertising and promotion.133 The other noted rules for expenditure of the hotel occupancy tax for cities with a population in excess of 200,000 applies to the first four percent portion of the rate.134

126

Tex. Tax Code § 351.103(b). 127

§ 351.103(c). 128

§ 351.001(7). 129

Id. 130

§§ 351.102, 151.429(h). 131

Id. 132

Id. 133

§ 351.106. 134

§§ 351.106, 351.103.



Additional 2 percent rate for a convention center facility (Austin, Fort Worth, and San Antonio): Austin, Fort Worth, and San Antonio are authorized to implement up to a 9 percent maximum municipal hotel occupancy tax rate.135 The revenue derived from application of the tax at a rate more than 7 percent, and its interest income, may only be used for the construction in an expansion of an existing convention center facility.136 This nine percent maximum rate does not apply to Dallas, or to eligible central municipalities with a population of less than 440,000: Arlington, Corpus Christi, Garland, Grand Prairie, and Irving.137

Cities with populations between 125,000 and 200,000: Amarillo, Brownsville, Grand Prairie, Killeen, McAllen, McKinney, Mesquite, and Pasadena.

Minimum expenditure on advertising and promotion: Cities with populations between 125,000 and 200,000 must spend a minimum amount of hotel occupancy tax revenue on advertising and promotion, and that minimum depends on the hotel occupancy tax rate adopted by the city.138 If the city adopts a tax rate of not more than 3 percent, at least one-half of 1 percent of the rate must be spent on advertising and promotion of the city and its vicinity.139 If the city adopted a rate that exceeds 3 percent, at least 1 percent of the rate must be spent on advertising and promotion of the city and its vicinity.140 For example, if a city has a 7 percent hotel occupancy tax rate, at least 1/7 of the hotel occupancy tax proceeds must be spent on advertising and promoting the city and its vicinity to attract tourists and hotel and convention activity. An exception to the minimum threshold for advertising and promotion expenditures is provided if the city receives in excess of $2 million in hotel tax revenues annually, in which case, the city should allocate its revenue by ordinance.141

15 Percent maximum expenditure for the arts and 15 percent maximum expenditure for historical restoration and preservation: Under § 351.103(c), a city with a population between 125,000 and 200,000 may not expend more than the greater of either 15 percent of the hotel occupancy tax revenue collected, or the amount of tax received by the city at the rate of 1 percent of the cost of a room, on promotion of the arts.142 Additionally, a city with a population of more than 125,000 may not spend more than 15 percent of its hotel occupancy tax revenue on historical restoration and preservation programs.143

Cities with populations of less than 125,000.

Minimum expenditure on advertising and promotion: Cities with populations of less than 125,000 must spend a minimum amount of hotel occupancy tax revenue on advertising and promotion, and that minimum depends on the hotel occupancy tax rate

135

§ 351.003(b). 136

§§ 351.1065, 351.003(b). 137

§ 351.003(b). 138

§ 351.103. 139

Id. 140

Id. 141

Id. 142

§ 351.103(c). 143

Id.



adopted by the city.144 If the city adopts a tax rate of not more than 3 percent, at least one-half of 1 percent of the rate must be spent on advertising and promotion of the city and its vicinity.145 If the city adopted a rate that exceeds 3 percent, at least 1 percent of the rate must be spent on advertising and promotion of the city and its vicinity.146 For example, if a city has a 7 percent hotel occupancy tax rate, at least 1/7 of the hotel occupancy tax proceeds must be spent on advertising and promoting the city and its vicinity to attract tourists and hotel and convention activity. An exception to the minimum threshold for advertising and promotion expenditures is provided if the city receives in excess of $2 million in hotel tax revenues annually, in which case, the city should allocate its revenue by ordinance.147

15 percent maximum expenditure for the arts and 50 percent maximum expenditure for historical restoration and preservation: Under § 351.103(c), a city with a population of under 125,000 may not expend more than the greater of either 15 percent of the hotel occupancy tax revenue collected or the amount of tax received by the city at the rate of 1 percent of the cost of a room on promotion of the arts.148 Additionally if a city with a population of under 125,000 does not allocate any hotel tax money for a convention center, the Tax Code prohibits the city from allocating more than 50 percent of its hotel occupancy tax for historical restoration or preservation projects.149

Additional rules for certain large coastal municipalities: Corpus Christi. Public beach expenditures: The City of Corpus Christi is authorized to use all or any portion of the city hotel occupancy tax collected from hotels that are within areas that were annexed by the City of Corpus Christi and were previously subject to the county hotel occupancy tax toward cleaning and maintaining public beaches.150 Expenditures from the portion of municipal hotel tax rate exceeding 7 percent: The City of Corpus Christi must separately account for all hotel occupancy tax revenue it derives from a city hotel occupancy tax rate that exceeds 7 percent (up to a maximum of 9 percent).151 The city may use revenue from the portion of the city hotel occupancy tax rate that exceeds 7 percent for acquiring land for a municipally owned convention center; constructing, improving, operating and maintaining the convention center; and paying bonds to finance these activities.152

Special rules for medium sized “eligible coastal municipalities:” Galveston. A different set of revenue expenditure rules apply for eligible coastal municipalities, defined as a “home-rule municipality that borders the Gulf of Mexico and has a population of less than 80,000.”153 The City

144

§ 351.103. 145

Id. 146

Id. 147

Id. 148

Id. 149

Id. 150

§ 351.1055. 151

§§ 351.1055, 351.003(c), 351.107(e). 152

Id. 153

§ 351.001(3).

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of Galveston fits this bracket’s description. The Tax Code limits the allocation of local hotel occupancy tax revenue for eligible coastal municipalities in the following ways:

Minimum expenditure for improvements to civic centers, hotels, marinas, golf courses, trolleys, and other improvements that attract tourists: If the city levies a rate of 7 percent, at least 1 percent of the cost of a room shall be used for the payment of bonds issued to establish, acquire, purchase, construct, or improve public improvements that serve the purpose of attracting visitors and tourists, such as parks, civic centers, auditoriums, coliseums, marinas, cruise ship terminals, hotels, motels, parking facilities, golf courses, trolleys or trolley transportation systems.154 This 1 percent may also be used for maintenance, improvement, or operation of any of the above facilities.155 For eligible coastal cities with a 7 percent rate, this requirement mandates dedicating 1/7 of the hotel occupancy tax revenue for items within the above noted purposes.156

Minimum expenditure for matching funds for beach clean-up: If the city levies a rate of 6 percent or more, at least 1 percent of the cost of a room shall be used as matching funds for state funds and other funds available to clean and maintain public beaches.157 For example, if the city levied a 7 percent local hotel occupancy tax, at least 1/7 of the hotel occupancy tax must be spent on beach clean-up. However, a city may credit any funds it receives from the state hotel occupancy tax for beach clean-up toward meeting this obligation.

Minimum 1 percent expenditure for other beach related expenditures: If the city levies a rate of 5 percent or more, at least 1 percent of the cost of a room shall be used for beach patrol, lifeguard services, marine water safety, and park law enforcement.158 For example, if the city levied a 7 percent local hotel occupancy tax, at least 1/7 of the hotel occupancy tax must be spent on the above noted beach related expenditures. However, a city may credit any funds it receives from the state hotel occupancy tax for beach related expenditures toward meeting this obligation.159

Minimum 3 percent expenditure for advertising and promotion: If the city levies a rate of 4 percent or more, at least 3 percent of the cost of a room shall be used for advertising and promotion.160 For example, if the city levied a 7 percent local hotel occupancy tax, at least 3/7 of the hotel occupancy tax must be spent on advertising and promotion.

Special state funding for beach clean-up: Galveston. In 1995, the Texas Legislature passed a special statute that dedicates the revenue generated from the state hotel tax at a rate of two percent (one third of the state hotel occupancy tax) from Galveston

154

§ 351.105. 155

Id. 156

Id. 157

Id. 158

Id. 159

Id. 160

Id.



lodging operators to beach clean-up. 161 For example, if the 6 percent state hotel tax generates $300 in state hotel tax proceeds, $100 is given back to the City of Galveston to use for clean-up of beaches within the City of Galveston. The implementing legislation that authorizes this funding only applies to an “eligible coastal municipality” that has created a park board of trustees to clean and maintain public beaches. 162 An eligible coastal municipality is defined under state law to be a city that, 1. Borders on the Gulf of Mexico; and 2. Has a population of less than 80,000.163 A city is eligible to adopt a park board of trustees for beach clean-up only if it, 1. Is a home rule city; 2. Has over 40,000 in population; 3. Is under 80,000 in population; and 4. Borders the Gulf of Mexico. 164 According to the Texas Comptroller's Office, the only Texas city that fits both the definition of an "eligible coastal municipality" and the definition of a city that may adopt a park board of trustees for beach clean-up is Galveston.165 Accordingly, Galveston receives one-third of the state hotel occupancy taxes collected from Galveston area hoteliers for beach clean-up purposes through a rebate from the Texas Comptroller.

Special state funding for beach clean-up: Port Aransas and South Padre Island. Originally enacted in 1999 and amended in 2009, the Texas Legislature passed a special statute, similar to the authority relating to Galveston, dedicating 1% of the state hotel occupancy tax generated from certain eligible barrier island coastal municipalities to beach clean-up.166 For example, if the 6 percent state hotel tax generates $600 in state hotel tax proceeds, $100 is given back to the eligible city for beach clean-up or beach erosion response projects. The implementing legislation for this funding applies only to an eligible barrier island coastal municipality.167 According to the Texas Comptroller's Office, the two Texas cities that fit this definition are South Padre Island and Port Aransas.168 Accordingly, the state provides a rebate to the Cities of South Padre Island and Port Aransas of 1/6 of the state hotel occupancy collected by the State from lodging operators in the respective cities. This rebated amount can be used by each city only for beach clean-up and beach erosion response projects.

Municipal hotel occupancy tax funding for coastal erosion: South Padre Island. In 2009, the Texas Legislature amended Chapter 351 of the Tax Code to allow the City of South Padre

161

§ 156.2511. 162

Id. 163

§ 351.001(3). 164

Tex. Loc. Gov’t Code Ch. 306. 165

Tex. Comptroller Opinion Letter No. 200007471L, July 6, 2000. 166

Tax Code § 156.2512. 167

Id. 168

Tex. Comptroller Opinion Letter No. 200007471L, July 6, 2000.



Island to increase its hotel occupancy tax rate to 8 ½ percent.169 The law dedicates 7 percent of the 8 ½ percent rate to advertising and promotion or convention center related purposes.170 One percent can be used for any purpose authorized under Tax Code § 351.101. This legislation dedicates the remaining ½ percent of municipal hotel occupancy tax to coastal erosion projects.171

Special rules for medium sized home rule coastal cities with a population of less than 80,000 and that border bays: Ingleside, Portland, Aransas Pass, La Porte, Seabrook, Port Aransas, Port Lavaca, Rockport, Baytown, Texas City, and Palacios. Home-rule cities that have a population of less than 80,000 and border bays may use up to 10 percent of the revenue derived from the local hotel occupancy tax for certain special beach related purposes and for tourism related public improvements.172 Specifically, such cities can use up to 10 percent of the local hotel occupancy tax to clean and maintain publicly owned land that is adjacent to a bay, to mitigate coastal erosion, or to pay for the operation or debt for certain tourism related public improvements, as defined under Tax Code §§ 351.105(a)(1) or 351.105(a)(2). This authority does not apply to eligible coastal municipalities such as Galveston.173 If the city uses any of the local hotel occupancy tax for beach maintenance under this authority, it may not reduce the amount of revenue that the city uses for tourism advertising and promotion.174 In particular, the city’s advertising and promotion budget may not be set at an amount that is less than the average amount of revenue used by the city for advertising and promoting during the 36-month period that preceded the city's use of city hotel tax for beach maintenance or tourism related public improvements.175 Additionally, the amount that is spent from the hotel occupancy tax for beach maintenance or tourism related public improvements (e.g.; a convention center facility) must be matched by the city with the same amount of revenue from a non-hotel occupancy tax source (e.g.; property tax or sales tax or other general fund dollars).176

Special rules for small coastal municipalities with a population of less than 5,000, adjacent to a home-rule city with a population of less than 80,000: Jamaica Beach. Coastal cities with a population of less than 5,000 adjacent to a home-rule city with a population of less than 80,000 may use all or any portion of the municipal hotel tax revenue it collects to clean or maintain beaches within the city, to provide beach security (defined as beach patrol, lifeguard services, marine water safety and park law enforcement) within the municipality, and to pay for any purpose allowed by Tex. Tax Code § 351.105 or Tex. Gov’t Code § 1504.001.177 The maximum municipal hotel occupancy rate for cities in this bracket is 9 percent.178

169

Tax Code §§ 351.001(11), 351.003(d). 170

§ 351.1055(d). 171

§ 351.1055(e). 172

§ 351.104. 173

Id. 174

Id. 175

Id. 176

Id. 177

§ 351.1055(c). 178

§ 351.003(c).



Special rules for the city of Alpine. Minimum expenditure on advertising and promotion: The City of Alpine must spend at least 50 percent of its hotel occupancy tax revenue on advertising and promotion to attract tourists and convention delegates or registrants to the city or its vicinity.179 Maximum expenditure for arts: Alpine's maximum percentage for the promotion of the arts is 15 percent of its hotel occupancy tax revenues.180 Maximum expenditure for historical restoration and promotion projects: Alpine's maximum percentage for historical restoration and promotion of historical projects is 15 percent of its hotel occupancy tax revenues.181

Additional Information If a city or funded entity has additional questions about the administration or use of the hotel occupancy tax, it is welcome to contact the Texas Hotel & Lodging Association for assistance by phone at (512) 474-2996. THLA has sample documents available to assist in administering hotel taxes, such as funding grant application forms, post event forms, and tax collection guidelines. Texas city officials can also make inquiries to the legal staff of the Texas Municipal League at (512) 231-7400. Finally, all entities may make inquiries to the Municipal Affairs Section of the Office of the Attorney General of Texas (OAG). The OAG’s Municipal Affairs Division can be reached by phone at (512) 475-4683.

179

§ 351.1035. 180

Id. 181

Id.



Index Abilene, 18 Addison, 18 Administrative costs, 15, 22 Advertising, solicitations, and promotions that attract

tourists and convention delegates to the city, 16 Agricultural Development Corporations, 8 Alamo, 18 Alpine, 30 Alvin, 18 Amarillo, 18, 25 Angleton, 18 Application form, 14 Aransas Pass, 29 Arlington, 23, 24, 25 Arts expenditures, 16 Attorney General. See Texas Attorney General's Office Audits, 11 Austin, 11, 23 Authorized Entities and Procedures, 3 Balch Springs, 18 Barrier island communities, 24, 28 Baytown, 29 Beaches, 26, 27, 28, 29 Beaumont, 18 Bellaire, 18 Benbrook, 18 Brownsville, 18, 25 Burleson, 18 Buying a hotel, 12 Cancellation fees, 4 Charitable Organization, 8 City and County Employees, 6, 8 Coastal municipalities, 26, 27, 28, 29 Collection schedule, 10 College Station, 18 Colleyville, 18 Comptroller. See Texas Comptroller Contracts, 21 Convention center, 15, 19, 20, 24, 25, 26 Convention Center funding, 15 Convention registration, 15 Converse, 18 Coppell, 18 Copperas Cove, 18 Corinth, 18 Corpus Christi, 18, 23, 24, 25, 26 Dallas, 23, 24, 25 Deer Park, 18 Del Rio, 18 Delegating the Management of Funded Activities, 21 Dickinson, 18 Donna, 18 Dormitories, 4 Duncanville, 18 Edinburg, 18 Educational, Charitable, and Religious entities, 9 El Paso, 23

Eligible Central Municipalities, 24 Eligible Coastal Municipalities, 28 Enforcement Authority of a City, 11 Exemptions from the Tax, 5, 8, 9 Extraterritorial Jurisdiction (ETJ), 3 Farmers Branch, 18 Federal Employees, 5, 8 Fiduciary duty, 21 Food and beverages, 4 Foreign Diplomats, 8 Fort Worth, 23, 24, 25 Friendswood, 18 Galveston, 26, 27, 28, 29 Garland, 23 Grand Prairie, 25 Greenville, 18 Groves, 18 Harker Heights, 18 Health Facilities Development Corporations, 9 Hewitt, 18 Highland Village, 18 Historical restoration and preservation, 17, 23, 25, 26 Horizon City, 18 Hospitals, 4 Houston, 3, 23 How the City Receives the Tax, 10 Humble, 18 Hurst, 18 Hutto, 18 Ingleside, 29 Irving, 23 Jamaica Beach, 29 Katy, 18 Killeen, 18, 25 La Marque, 18 La Porte, 18, 29 Lake Jackson, 18 Lancaster, 18 Laredo, 18, 23 League City, 18 Leander, 18 Letter of No Tax Due, 12 Letter of tax exemption, 6, 7, 8, 9 List of activities, 21 Little Elm, 18 Live Oak, 18 Longview, 18 Lubbock, 18, 23 Lufkin, 18 McAllen, 18, 25 McKinney, 25 Meeting rooms, 4 Mercedes, 18 Mesquite, 25 Midland, 18 Mission, 18 Murphy, 18



Nederland, 18 Nursing homes, 4 Odessa, 18 Open Records, 11 Package rates, 4 Palacios, 29 Paris, 18 Pasadena, 25 Pearland, 18 Penalties for Failure to Report or Collect the Tax, 10 Permanent resident exemption, 5 Permanent Residents, 9 Pharr, 18 Plano, 23 Port Aransas, 29 Port Lavaca, 29 Port Neches, 18 Portland, 18, 29 Post event form, 14, 30 Reimbursement of Hotel for Collection Expenses, 10 Religious entities, 5, 6, 7 Reporting, 21 Rio Grande City, 18 Rockport, 29 Rosenberg, 18 Round Rock, 18 Sachse, 18 Saginaw, 18 Sales tax, 7, 24, 29 San Angelo, 18 San Antonio, 3, 23, 24, 25 San Benito, 18 San Juan, 18 Sanitariums, 4 Schertz, 18 Seabrook, 29 Seagoville, 18

Separately stated, 4 Seven percent local hotel tax rate, 20 Signage, 20 Simplified, Basic Hotel Occupancy Tax Exemption Rules, 8 Sleeping rooms, 4 Socorro, 18 South Houston, 18 South Padre Island, 28 Southlake, 18 Sporting events, 17 Sports facilities or sports fields, 18, 19 Stafford, 18 State Employees, 6, 9 State officials, 5 Tax Exemption Certificate, 5 Taylor, 18 Texas Attorney General XE "Attorney General" \t "See

Texas Attorney General's Office" 's Office, 16 Texas Attorney General's Office, 6 Texas Attorney General's Office, 17 Texas City, 29 Texas Comptroller's Office, 3, 5, 10, 11, 28 Texas Educational Organizations, 8 The Colony, 18 Transportation systems for tourists, 19 Tyler, 18 Universal City, 18 University Park, 18 Use of Local Hotel Occupancy Tax Revenues Criteria #2, 15,

20 Visitor Information Center funding, 15 Waco, 18 Watauga, 18 Weslaco, 18 West University Place, 18 White Settlement, 18 Wichita Falls, 18

City of San Angelo Finance Department



From: Laura Brooks, Budget Analyst, Sr.


Contact: Laura Brooks, Budget Analyst, Sr., 653-6291

Caption: Regular (1st reading) Consent (2nd reading)

First public hearing and introduction of an Ordinance amending the 2012-2013 Budget for new projects, incomplete projects, capital projects and grants.

Summary: This proposed amendment contains the following items (additional information attached):

• Building Maintenance • Nature Center Programs • Gang Initiative Grant • South TIRZ Streetscape • Property Insurance Claim • Airport Layout Plan • Cemetery Perpetual Care • River Fest

History: See attached Budget Amendment Request memorandum.

Financial Impact: $497,388 (see attached detail on Exhibit A of the Ordinance)

Related Vision Item (if applicable): N/A

Other Information/Recommendation: Staff recommends approval.

Attachments: Ordinance including Exhibit A; Department request memos

Presentation: N/A

Publication: N/A

Reviewed by Director: Tina Bunnell, Finance Director

AN ORDINANCE OF THE CITY OF SAN ANGELO AMENDING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2012, AND ENDING SEPTEMBER 30, 2013, FOR NEW PROJECTS, INCOMPLETE PROJECTS, CAPITAL PROJECTS, AND GRANTS.

WHEREAS the City of San Angelo has determined that new projects not included in the current budget should begin, and

WHEREAS the City of San Angelo has determined that certain budgeted amounts should be amended due to project changes and unforeseen circumstances, and

WHEREAS the resources necessary for these changes are available;

NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SAN ANGELO, TEXAS THAT:

The City’s budget for fiscal year 2012-2013 be amended by the amounts contained in Exhibit A.

INTRODUCED on the 6th day of August, 2013, and APPROVED and ADOPTED on this the 20th day of August, 2013.

CITY OF SAN ANGELO, TEXAS

__________________________________ Dwain Morrison, Mayor

ATTEST: __________________________________ Alicia Ramirez, City Clerk

Approved as to Content and Form:

__________________________________ Tina Bunnell, Finance Director

City of San Angelo Proposed Budget Amendment Exhibit A

Fund Description Total

Revenue Amendment

Total Expense

Amendment Net

Benefit/(Cost)

COSA Operating Budget

101 General Fund 13,365 9,365 4,000

103 Intergovernmental Fund 21,719 21,719 0

106 TIRZ Fund 25,000 25,000 0

320 Property Casualty Fund 245,000 255,000 (10,000)

440 Fairmount Cemetery 12,000 11,500 500

529 PFC Fund 72,402 72,402 0

531 Airport Capital Projects 72,402 72,402 0 601 Designated Revenue 30,000 30,000 0

Totals 491,888 497,388 (5,500)

City of San Angelo Proposed Budget Amendment Additional Information

Project/Need Source of Funding Revenue Expense

Net Benefit/ (Cost)

Building Maintenance

San Angelo Symphony Reimbursement 2,365 2,365 0

Nature Center Programs Program/Retail Income 11,000 7,000 4,000

Gang Initiative Grant Office of the Governor Criminal Justice Gang Initiative Grant 21,719 21,719 0

South TIRZ Streetscape

Downtown San Angelo, Inc., AEP Grant 25,000 25,000 0

Property Insurance Claim (Pianos)

Property/Casualty Fund –Fund Balance & TML Insurance Policy 245,000 255,000 (10,000)

Airport Layout Plan Passenger Facility Charges 144,804 144,804 0

Cemetery Perpetual Care Perpetual Care Trust 12,000 11,500 500 River Fest Donations, Concessions & Novelty

Sales 30,000 30,000 0

Totals 491,888 497,388 (5,500)

City of San Angelo Office of the City Clerk



From: Alicia Ramirez, City Clerk

Subject: Agenda Item for August 20th Council Meeting

Contact: Alicia Ramirez, City Clerk, 657-4405


First Public Hearing and consideration of introducing an Ordinance amending established boundaries of Single Member District 6

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN ANGELO, TEXAS AMENDING THE ESTABLISHED BOUNDARIES OF SINGLE MEMBER DISTRICT NUMBER 1 FOR THE PURPOSE OF INCORPORATING NEWLY ANNEXED AREAS INTO SAID DISTRICT, PROVIDING FOR PRECLEARANCE AND ALL OTHER NECESSARY ACTIONS; AND PROVIDING FOR AN EFFECTIVE DATE

Summary: The City Council adopted an ordinance incorporating newly annexed areas in SMD 6. The public hearings were held on June 4, 2013 and June 18, 2013 and City Council adopted an ordinance on August 6, 2013. The area annexed is approximately 24.484 acres situated immediately west/southwest of San Angelo and encompassing a vacant 24.484 acre tract extending northwest from Mills Pass Drive, and located directly west of an 8.995 acre tract annexed to the City Limits on March 5, 2013 that comprises the proposed Prestonwood Addition, Section Two. The property in question is entirely vacant and situated adjacent to a growing residential subdivision, known as the Prestonwood Addition, located south/southeast of Sam's Club and west of Bonham Elementary School. This subdivision, nearing the completion of its development, was annexed to the city in 2008 and incorporates both traditional single-family residences and zero lot line homes. As part of the preclearance submission under Section 5 of the Voting Rights Act, the annexations update and change to the established boundaries of single member districts shall be cleared through the Department of Justice. The areas is uninhabited. The City will comply with all necessary requirements for the submission by adoption of this ordinance.

Financial Impact: None. Other Information/Recommendation: Staff recommends updating the established boundary of SMD #6. Attachments: Annexation Map A and B, Proposed Ordinance, and Revised 2013 SMD Map

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN ANGELO, TEXAS AMENDING THE ESTABLISHED BOUNDARIES OF SINGLE MEMBER DISTRICT NUMBER 6 FOR THE PURPOSE OF INCORPORATING NEWLY ANNEXED AREAS INTO SAID DISTRICT, PROVIDING FOR PRECLEARANCE AND ALL OTHER NECESSARY ACTIONS; AND PROVIDING FOR AN EFFECTIVE DATE

WHEREAS, the City of San Angelo is a Home Rule municipal corporation operating under a municipal charter that has been adopted as authorized by Article XI, Section 5 of the Texas Constitution; and,

WHEREAS, pursuant to the City of San Angelo Charter, Section 3 entitled “Annexation”, the City Council shall have the power, after public hearing, of fixing the boundaries of the City of San Angelo and to annex additional territory by ordinance; and

WHEREAS, on August 6, 2013, the City Council adopted Ordinance #2013-08-___, annexing certain uninhabited areas into the City of San Angelo; and

WHEREAS, it is now necessary to incorporate such areas into a Single Member District within the City of San Angelo in order to ensure future new residents of the right to vote; and

WHEREAS, changes in single member districts constitute a change from prior practices requiring preclearance under the Federal Voting Rights Act.

NOW THEREFORE BE IT ORDAINED BY THE CITY OF SAN ANGELO:

SECTION 1: RECITALS INCORPORATED. The recitals set forth above are incorporated into the body of this Resolution as findings of the City Council as if fully set forth herein.

SECTION 2: DESIGNATION OF ESTABLISHED BOUNDARIES: The boundaries of Single Member District 6 be, and are hereby, amended as set forth in Exhibit “A”, attached hereto and incorporated herein by reference for all purposes.

SECTION 3: SUBMISSIONS TO THE UNITED STATES JUSTICE DEPARTMENT: The City Clerk of the City of San Angelo, or her authorized agent, shall make such submissions as are necessary to the United State Justice Department to seek pre-clearance approval.

SECTION 4: NECESSARY ACTIONS: The Mayor and the City Clerk, in consultation with the City Attorney, are hereby authorized and directed to take any and all actions necessary or appropriate to comply with the provisions of the San Angelo Code of Ordinances, the Texas Election Code and any other Texas State or federal law in carrying out and designating established single member district boundaries for District 6, as amended, whether or not expressly authorized herein and all such actions of City officials previously taken for said purposes are hereby ratified.

SECTION 5: SEVERABILITY: The terms and provisions of this Ordinance shall be deemed to be severable in that if any portion of this Ordinance shall be declared to be invalid, the same shall not affect the validity of the other provisions of this Ordinance.

SECTION 6: EFFECTIVE DATE: This ordinance shall be effective from and after adoption of this ordinance.

INTRODUCED on the 20th day of August, 2013, and finally PASSED, APPROVED and ADOPTED on this the 3rd day of September, 2013.

CITY OF SAN ANGELO, TEXAS _________________________ Dwain Morrison, Mayor

ATTEST: _________________________ Alicia Ramirez, City Clerk Approved as to Content: Approved as to Form:

_________________________ __________________________ Alicia Ramirez, City Clerk Lysia H. Bowling, City Attorney

EXHIBIT “A”

DESCRIPTION OF SINGLE MEMBER DISTRICT 6

FOR SAN ANGELO, TEXAS

BY 2010 U. S. CENSUS P. L. 94-171 TRACT AND BLOCK

TRACT / BLOCK TRACT / BLOCK TRACT / BLOCK 001304 4008 001303 5006 001303 1004 001304 4003 001101 1075 001101 1025 001304 2000 001101 1114 001101 1084 001101 1097 001101 1053 001101 1104 001101 1041 001707 1044 001707 2039 001101 1045 001101 1027 001101 1036 001303 3005 001707 1011 001707 1026 001707 1043 001707 1010 001706 1030 001304 2005 001303 3003 001303 2005 001303 3008 001303 2001 001303 5005 001303 5002 001304 4007 001707 1021 001707 2023 001707 1042 001707 1032 001706 1014

001706 1034 001706 1023 001706 1037 001706 1020 001704 2187 001101 1087 001101 1046 001101 1065 001706 1038 001707 1002 001101 2008 001301 6003 001101 1089 001101 1095 001101 1096 001101 3004 001101 2004 001200 6039 001303 3006 001301 7014 001101 1109 001707 2016 001706 1011 001706 1018 001706 1041 001706 1019 001707 2037 001101 1010 001304 1005 001707 2038 001707 1001 001707 1012 001101 1069 001101 1068 001101 1118 001101 1078 001303 1010

001101 1098 001101 1099 001301 7006 001707 1015 001704 2182 001101 2002 001303 1008 001200 6038 001101 1081 001101 1092 001707 2029 001101 1064 001301 7007 001707 1008 001301 7002 001101 1112 001101 1060 001101 2009 001101 2001 001301 7000 001304 1000 001101 1011 001101 1009 001101 3002 001101 1023 001707 1034 001101 1103 001303 2008 001303 3010 001101 1115 001101 2007 001101 2000 001101 1091 001101 1111 001303 4002 001101 1090 001303 2003

001303 2006 001303 4005 001303 1001 001704 1095 001707 1033 001707 1028 001706 1027 001706 1032 001707 1018 001707 1016 001303 1000 001303 2012 001101 1083 001303 3009 001303 1003 001303 2011 001303 2002 001303 2007 001303 1002 001707 2031 001101 1055 001707 1006 001706 1008 001707 1017 001101 1086 001101 1082 001101 1113 001101 1057 001704 2000 001101 3001 001303 1006 001303 1007 001304 2004 001304 4006 001707 1038 001706 1013 001706 1042 001303 5009 001303 2009 001706 1002 001707 1009 001706 1029 001707 1039 001706 1026 001706 2002

001707 2019 001303 1005 001303 4009 001707 2015 001707 2013 001101 1074 001707 2026 001303 3001 001304 4005 001101 1035 001707 1005 001707 1031 001706 1016 001706 1025 001706 1033 001704 2180 001301 7013 001301 7003 001101 1038 001101 1101 001101 1088 001304 2002 001706 1028 001707 2014 001304 4000 001707 2011 001707 2028 001101 1061 001707 2032 001704 2184 001101 3003 001101 2006 001101 2005 001101 2003 001101 1100 001101 1106 001303 2004 001707 1027 001704 2001 001707 2025 001303 1009 001304 4001 001301 7005 001704 2183 001101 3000

001304 1009 001101 1048 001101 1116 001101 1049 001707 2033 001707 2034 001704 2179 001707 1000 001707 1013 001706 1001 001101 1108 001303 5001 001303 3012 001303 4008 001303 4003 001303 4000 001101 1042 001304 2001 001704 1079 001704 1115 001707 1003 001707 1030 001706 1007 001706 1009 001706 1022 001706 1040 001707 2021 001101 1026 001101 1117 001304 4002 001704 2186 001303 5008 001303 4004 001303 4010 001704 2181 001704 2185 001706 1003 001707 2018 001101 1059 001101 1105 001101 1058 001303 4006 001304 1006 001304 1008 001707 1040

001303 5004 001304 4004 001707 2012 001707 1037 001707 1035 001704 1094 001706 1006 001706 1010 001707 1022 001707 1024 001706 1031 001707 1036 001706 1012 001706 1015 001101 1024 001101 1054 001707 1020 001101 1077 001101 1067 001101 1110 001303 3007 001304 2003 001707 1019 001301 7004 001101 1076 001101 1050 001101 1051 001303 3011 001303 3000 001101 3005 001303 3002 001101 1094 001101 1107 001303 4011 001303 5000 001303 5003 001303 4007 001706 1024 001706 1000 001707 2027 001706 1039 001707 2009

001706 1005 001101 1102 001101 3006 001303 2010 001704 1068 001706 1004 001707 1014 001101 1093 001101 1071 001101 1070 001101 1056 001303 3013 001101 1063 001707 1007 001707 1029 001707 1025 001707 2017 001706 1017 001706 1021 001706 1036 001704 1096 001707 2022 001706 1035 001101 1047 001707 1004 001707 1023 001101 1066 001101 1079 001101 1080 001101 1072 001707 2036 001707 2020 001707 2010 001303 3004 001303 4001 001303 2000 001303 5007 001101 1085 001101 1073 001101 1044

august 20, 2013 agenda packet

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