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07/21/2008-CC-Agenda Packet-RegularAGENDA CITY COUNCIL MONDAY, JULY 21, 2008 7:00 P.M. 201 BOLIVAR 1. Call Meeting to Order, Invocation, Pledge of Allegiance. 2. Citizens Input: Citizens are allowed 3 minutes to speak. The City Council is unable to respond or to discuss any issues that are brought up during this section. CONSENT AGENDA 3. a) Approve Minutes: June 7, 2008 -City Council June 8, 2008 - Budget Workshop b) Disbursements c) Interconnection Agreement Between the City of Sanger and Brazos Electric Power System d) Approve Second Amendment to Lease Agreement with AT&T Mobility 4. Consider any Items Removed from Consent Agenda. 5. Information Items: a) Memo from City Manager b) City of Sanger Financial Report c) City of Sanger Investment Report d) Monthly Library Report e) Legislative Update 6. Executive Session: Pursuant to Open Meetings Act, Chapter 551, Texas Government Code, Subchapter D, 551.074 Deliberation Regarding Personnel Matters (a) Review City Manager Performance and Consider Changes to Employment Contract 7. Reconvene: Into Regular Session and Consider Action, if any, on Items Discussed in Executive Session. 8. Adjournment. I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the bulletin board, at the City Hall of the City of Sanger, Texas, a place convenient and readily accessibly the general public at all times, and said Notice was posted on the following date and time: SA -VC4 0 If g is adj Rosalie Chavez, City S City of Sanger, Texas and shall remain posted until This notice was removed from the official bulletin board on by This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at (940) 45&7930 for further information. MINUTES: CITY COUNCIL MEETING JULY 79 2008 PRESENT: Councilman Glenn Ervin, Councilman Patton, Councilman Any Garza, Councilman Mike Walker, Councilman Thomas Muir MEMBERS ABSENT: Mayor Joe Higgs OTHERS PRESENT: City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez 1. Call Meeting to Order, Invocation, Pledge of Allegiance. Mayor Pro-Tem Ervin called meeting to order, Councilman Muir led the invocation, followed by Councilman Patton leading the Pledge of Allegiance. 2. Citizens Input: Citizens are allowed 3 minutes to speak. The City Council is unable to respond or to discuss any issues that are brought up during this section. None CONSENT AGENDA 3. a) Approve Minutes: June 16, 2008 -Work Session June 16, 2008 - City Council b) Disbursements c) Authorize Staff to Act as General Contractor on Remodel of Electric Department Building d) Reappoint Board Members, Municipal Clerk, Municipal Judge, Alternate Judge and Prosecuting Attorney e) Appoint Beverly Howard to the 4B Board. Brief discussion concerning item (c) followed. Staff has been in negotiations with an architect on the estimated cost for this project. The City Manager estimated the cost of the project would be $250,000 to $300,000. The work to be done is mostly cosmetic, and there will not be much engineering required. City Manager advised to keep the cost down on the project, he was requesting that Council authorize staff to be the general contractor for this project. The City does not use city employees to do this work; subcontractors are hired. It does take time away from Rob Woods, City Engineer and Dewayne Douhitt, the Building Inspector; however, the City Manager advised the building inspections have slowed down. The City tries to use local contractors as much as possible. The old metal section will be gutted, and that area will be used for storage of city vehicles. Discussion continued regarding the plans for renovation for the building. City Manager indicated that item (d) is the annual reappointment of all the members and also the appointment of Beverly Howard to replace Glenn Ervin on the 4B Board. This will leave one opening for the Library Board and one opening for an alternate on the Board of Adjustments. Brief discussion and clarification concerning certain items in the disbursement report. Motion made by Councilman Walker to accept consent agenda as is. Seconded by Councilman Muir. Motion carried unanimously. 4. Consider any Items Removed from Consent Agenda. None 5. Consider and Possible Action on a Preliminary Plat for the Forrest Addition, Lot 4 and 5 being 17.039 Acres Located in the Reuben Bebee Survey, Abstract 29, Located in the City of Sanger's Extra Territorial Jurisdiction. City Manager advised this is a Preliminary Plat for the entire property, and the next item on the agenda is the final plat on a portion of this property. Discussion concerning the elevations for the flood plain. There were corrections noted to the plat. City Manager advised the Planning &Zoning Commission approved this unanimously. Motion made by Councilman Patton to approve the Preliminary Plat for the Forrest Addition, Lot 4 and 5 being 17.039 acres, located in the Reuben Bebee Survey, Abstract 29, located in the City of Sanger's ETJ. Seconded by Councilman Garza. Motion carried unanimously. 6. Consider and Possible Action on a Final Plat for the Forrest Addition, Lot 4 and 5 being 10.586 Acres Located in the Reuben Bebee Survey, Abstract 29, Located in the City of Sanger's Extra Territorial Jurisdiction. Motion made by Councilman Muir to approve the final plat for the Forrest Addition, Lot 4 and 5 10.586 acres located in the Reuben Bebee Survey, Abstract 299 located in the City of Sanger Extra Territorial Jurisdiction. Seconded by Councilman Patton. Motion carried unanimously. 7. Information Items: a) Surplus Items City Manager advised there is a list of surplus vehicles that have been approved for disposal and one vehicle that has been approved for auction due to the cost of repairs and maintenance. Discussed that the Fire Department still had two additional brush units for operations and it will not impact services. A review of the .grants received were discussed. The City received a grant for $25,000 that will be used to replace the command vehicle. b) Summary of New City Hall Expenses Discussion concerning the overall expenses for the City Hall project. City Manager indicated the Council did not approve a certain amount for expenses. He advised that the cost to complete the project is estimated around $150,000.00 to $165,000.00, 8. Adjou, nment. Mayor Pro Tem declared meeting adjourned. MINUTES: CITY COUNCIL WORKSHOP JULY 79 2008 PRESENT: Councilman Glenn Ervin, Councilman Patton, Councilman Any Garza, Councilman Mike Walker, Councilman Thomas Muir MEMBERS ABSENT: Mayor Joe Higgs OTHERS PRESENT: City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez 1. Call Meeting to Order. Glenn Ervin, Mayor Pro-Tem called meeting to order. 2. Review and Discussion of 2009 Budget and Tax Rate. City Manager addressed Council with an overview of the budget. He emphasized that there have been some major changes in the budget. The most important reason for having the workshop is to get the Council's input on the budget. The General Fund and the Enterprise Fund budgets are both in balance. City Manager advised that on the time line for the budget calendar, it might be necessary to change the August 4meeting for a later date due to the calculation of the effective tax rate by the County Tax Office. A brief discussion concerning the debt portion that is obligated by the tax rate. In this budget, debt portion will be higher than last year. The power point presentation covered the budget highlights as follows: expanded and standardized line items to be able to track expenses, true electric cost in all the departments, fuel cost increases in all departments, in personnel there will not be any full time employees, one additional contract medic, a proposed 3% COLA, and a proposed merit increase benchmark of 3%. City Manager gave an explanation on the process of the merit increase. He continued with an explanation concerning step increases in the Electric Department that are based on training and certifications. The Electric Department will continue to proceed in this manner until those employees each the required steps. The City Manager gave a brief explanation of his SWOT Analysis. He encouraged Council to read the budget message. Lengthy discussion concerning revenues and the need for an operating reserve. City Manager discussed the important points in the budget as follows: revenues are estimates and a conservative approach was used due to the economy, if there is a revenue shortfall then expenditures are cut, set costs are unchangeable and includes our bonds and lease payments. The automated costs can't be controlled and includes life insurance, workers' compensation, health insurance, and property insurance. The current costs are what it takes to maintain current service levels and what is left is used for capital improvements, increased personnel benefits or increased service levels. The budget review continued regarding percentage of gross revenues by departments for the services provided. Discussion concerning the Enterprise Revenues versus costs to operate. An overview of the economic development funds 4A and 413. City Manager discussed the transfer from each fund to the General Fund of $25,000 to cover advertising and administrative costs. Lengthy discussion continued with an overview of all the departmental expenses and organizational changes in the General Fund. 3. Adjournment. Mayor Pro-Tem adjourned the meeting. 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 1 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 10 CITY COUNCIL BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VENr)OR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 9: 400 FRANKLIN LEGAL PUBLISHI I-2001386 001-10-5420 CONTRACTUAL S CODE OF ORD, LIVE PUBLISH 000000 175.00 DEPARTMENT 10 CITY COUNCIL TOTAL: 175.00 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 2 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 15 ADMINISTRATION BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VENDOR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 91 ,980 GODI EXTERMINATING I-1129089 001-15-5310 R & M BUILDIN EXT. CITY HALL 000000 15.00 99-16800 NICHOLS OF TEXAS I-200807141034 001-15-5420 CONTRACTUAL S GENERAL LEGAL SERVICE 000000 351.38 99-19160 WORKERS ASSISTANCE PROG I-200807141032 001-15-5175 EAP (EMPLOYER EAP PROGRAM 000000 4.01 ------------------------------------------------------------- -...... DEPARTMENT 15 ADMINISTRATION ----------------- ---------------- ------------------ TOTAL: -.......----- 370.39 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 18 ENGINEERING BUDGET TO USE: CB -CURRENT BUDGET PAGE: 3 VENDOR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# 9_ a80 GODI EXTERMINATING I-1129089 001-18-5310 R & M BUILDIN EXT. CITY HALL 000000 99-19160 WORKERS ASSISTANCE FROG I-200807141032 001-18-5175 EAP (EMPLOYER EAP PROGRAM 000000 DEPARTMENT 18 ENGINEERING TOTAL: AMOUNT 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 20 POLICE BUDGET TO USE: CB -CURRENT BUDGET PAGE: 4 BANK: SB99 VENDOR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# 9_ ,690 CITY OF DENTON I-200807081027 001-20-5311 R & M EQUIPME TRUNK MOUNT ANTENNA 2CARS 000000 99-02190 RADIO SHACK I-200807101029 99-08770 CPI OFFICE PRODUCTS I-2035389-0 I-2035389-0 I-2035389-0 I-2035389-0 99-19160 WORKERS ASSISTANCE PROG I-200807141032 001-20-6010 001-20-5210 001-20-5210 001-20-5210 001-20-5210 001-20-5175 COMPUTER EQUI MADDOG 18X TRIPLE FORMAT 000000 OFFICE SUPPLI FOLDERS/INK CART./BLUE PA 000000 OFFICE SUPPLI FOLDERS/INK CART./BLUE PA 000000 OFFICE SUPPLI FOLDERS/INK CART./BLUE PA 000000 OFFICE SUPPLI FOLDERS/INK CART./BLUE PA 000000 EAP (EMPLOYER EAP PROGRAM 000000 DEPARTMENT 20 POLICE TOTAL: AMOUNT 86.00 99.99 11.46 74.85 3.99 11.72 34.71 322.72 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 5 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 22 ANIMAL CONTROL BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VENDOR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 9_ 330 4T HEATING & AIR I-2339 001-22-5310 R & M BUILDIN REPAIR BLOWER MOTOR 000000 334.00 99-19160 WORKERS ASSISTANCE PROG I-200807141032 001-22-5175 EAP (EMPLOYER EAP PROGRAM 000000 2.67 I-200807141032 001-22-5175 EAP (EMPLOYER EAP PROGRAM 000000 2.67 ------------------------------------------------------------------------------------------------------------------------------------ DEPARTMENT 22 ANIMAL CONTROL TOTAL: 339.34 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 6 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 24 FIRE DEPARTMENT BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VENDOR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 91 MARTIN APPARATUS .470 I-3002978 / 3002961 001-24-5325 R & M MOTOR V PUMP TEST 000000 520.00 99-13570 PUBLIC SAFETY CENTER I-1454200in 001-24-5260 SAFETY EQUIPM SAFETY GOGGLES/HELMENTS 000000 163.96 I-1454200in 001-24-5260 SAFETY EQUIPM shipping 000000 28.73 99-16900 GST PUBLIC SAFETY SUPPL I-7/2/2008 001-24-5255 WEARING APPAR UNIFORMS 000000 32.63 99-18960 AMERI STEEL I-7452 001-24-5310 R & M BUILDIN INSIDE CORNERS/END CAPS/ 000000 166.54 99-19160 WORKERS ASSISTANCE PROG I-200807141032 001-24-5175 EAP (EMPLOYER EAP PROGRAM 000000 10.68 99-19300 FIRST STRIKE TECHNOLOGI I-869 001-24-6055 FIRE FIGHTING HEAVY ATTACK NOZLE 000000 884.95 I-869 001-24-6055 FIRE FIGHTING BLITZ ATTACK NOZZLE 000000 924.95 I-869 001-24-6055 FIRE FIGHTING SHIPPING 000000 23.30 99-19390 PAUL CONWAY SHEILDS I-0236289-in 001-24-5260 SAFETY EQUIPM SHEILDS & BRACLETS 000000 206.50 --------------------------------------------------- --------------------------------------- DEPARTMENT 24 FIRE DEPARTMENT ----....... ------------------------------- TOTAL: 2,962.24 7/14/2008 3:52 PM PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 25 AMBULANCE BUDGET TO USE: CB -CURRENT BUDGET VENDOR NAME ITEM # --------------------- 9S. ,600 MOORE MEDICAL CORP. I-14210608 99-16240 SCHAD & PULTE I-172264 99-19160 WORKERS ASSISTANCE PROG I-200807141032 REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 7 BANK: SB99 G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 001-25-5440 MEDICAL SERVI MEDICAL SUPPLIES 000000 344.03 001-25-5440 MEDICAL SERVI OXYGEN CYLINDERS 000000 20.00 001-25-5175 EAP (EMPOYER EAP PROGRAM 000000 40.05 DEPARTMENT 25 AMBULANCE TOTAL: 404.08 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND PAGE: 8 DEPARTMENT: 26 MUNICIPAL COURT BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VENT`)R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99 _.,160 WORKERS ASSISTANCE PROG I-200807141032 001-26-5175 EAP (EMPLOYER EAP PROGRAM 000000 5.34 99-19260 TYLER TECHNOLOGIES I-67016 / 67015 001-26-5420 CONTRACTUAL S COURT/WEB FEES/UB INQUIRY 000000 125.00 DEPARTMENT 26 MUNICIPAL COURT TOTAL: 130.34 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND PAGE: 9 DEPARTMENT: 28 ENFORCEMENT/INSPECTION BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VED7`)R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99 .j 980 GODI EXTERMINATING I-1129089 001-28-5310 R & M BUILDIN EXT. CITY HALL 000000 30.00 99-11730 ICC I-1014143-IN 001-28-5210 OFFICE SUPPLI ADA GUIDE 000000 58.00 I-1014143-IN 001-28-5220 POSTAGE SHIPPING & HANDLING 000000 9.00 99-19160 WORKERS ASSISTANCE PROS I-200807141032 001-28-5175 EAP (EMPLOYER EAP PROGRAM 000000 8.01 99-19370 SANGER LAVIN CARE I-101 001-28-5420 CONTRACTUAL S MOWING @ 819 CARMEN SRT 000000 175.00 DEPARTMENT 28 ENFORCEMENT/INSPECTION TOTAL: 280.01 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 10 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 30 STREETS BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VEDT�'R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECKi{ AMOUNT 95 _.,050 CONLEY SAND & GRAVEL I-8278 001-30-5370 STREETS 1 1/2 FLEX BASE 20 YARDS 000000 21375,00 99-00790 COUNTY BUILDERS SUPPLY, I-10020426/10020779 001-30-5375 MINOR EQUIPME OPEN PO WEEK 6/23-6/27 000000 11.64 99-01300 JAGOE-PUBLIC CO., INC. I-100978 001-30-5370 STREETS TONS OF HMAC PICK UP 000000 4,884.76 99-19160 WORKERS ASSISTANCE PROG I-200807141032 001-30-5175 EAP (EMPLOYER EAP PROGRAM 000000 2.67 DEPARTMENT 30 STREETS TOTAL: 7,274.07 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 11 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND DEPARTMENT: 001 GENERAL FUND 32 PARKS BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VENP_nR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 9S j90 CITY OF DENTON I-20884 001-32-5260 SAFETY EQUIPM REG BLACK GARBAGE BAGS 000000 372.90 I-20884 001-32-5260 SAFETY EQUIPM 55GAL CLEAR GARBAGE BAGS 000000 228.15 99-00790 COUNTY BUILDERS SUPPLY, I-28/84/82/83/70/964 001-32-5250 MINOR TOOLS OPEN PO WEEK 6/23-6/27 000000 130.37 99-08460 DELL COMPUTERS, LLP I-XCPK16J11 001-32-5223 CHEMICAL SUPP 330 OPTIPLEX COMPUTER 000000 699.00 99-11220 COLLEGIATE PACIFIC I-92752782 001-32-5343 BALL FIELD MA ENDURO HOSE REEL 000000 349.99 I-92752782 001-32-5343 BALL FIELD MA CLEAR FIELD HOSE 000000 399.99 I-92752782 001-32-5343 BALL FIELD MA FREIGHT 000000 120.00 99-12710 PETTIT MACHINERY, INC I-p27027/p27763 001-32-5325 R & M MOTOR V NUT/AUTOCUT HEAD/CHAIN 000000 219.83 99-19160 WORKERS ASSISTANCE PROG I-200807141032 001-32-5175 EAP (EMPLOYER EAP PROGRAM 000000 24.03 DEPARTMENT 32 PARKS TOTAL: 21544.26 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 34 POOL BUDGET TO USE: CB -CURRENT BUDGET VENDOR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION 9: 160 WORKERS ASSISTANCE PROG I-200807141032 001-34-5175 EAP (EMPLOYER EAP PROGRAM DEPARTMENT 34 POOL PAGE: 12 BANK: SB99 CHECK# AMOUNT 000000 32.04 TOTAL: 32.04 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 13 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 DEPARTMENT: 36 GENERAL FUND FLEET SERVICES BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VENr':)R NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECKit AMOUNT 9S 550 ATMOS I-200807141033 001-36-5515 ELECTRIC & GA UTILITY GAS 000000 4.72 99-19160 WORKERS ASSISTANCE PROG I-200807141032 001-36-5175 EAP (EMPLOYER EAP PROGRAM 000000 2.67 DEPARTMENT 36 FLEET SERVICES TOTAL: 7.39 7/14/2008 3:52 PM PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 40 SULLIVAN CENTER BUDGET TO USE: CB -CURRENT BUDGET VED'" 1R NAME ITEM # 99 _j330 4T HEATING & AIR I-200807091028 REGULAR DEPARTMENT PAYMENT REGISTER G/L ACCOUNT NAME -------------- 001-40-5310 PAGE: 14 BANK: SB99 DESCRIPTION CHECK# AMOUNT R & M BUILDIN REPLACE 45MFD 370 VAC RUN 000000 154.00 DEPARTMENT 90 SULLIVAN CENTER TOTAL: 159.00 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 42 LIBRARY BUDGET TO USE: CB -CURRENT BUDGET VEP^^R NAME ITEM # G/L ACCOUNT NAME 99 ,760 BRODART CO I-b138878 001-42-6050 BOOKS I-b138878 001-42-6050 BOOKS I-b138878 001-42-6050 BOOKS I-b138878 001-42-6050 BOOKS I-b138878 001-42-6050 BOOKS I-b138978 001-42-6050 BOOKS 99-19160 WORKERS ASSISTANCE PROG PAGE: 15 BANK: SB99 DESCRIPTION CHECK# AMOUNT LEGAL GUIDE START SML BUS 000000 30.44 HIGH IMPACT RESUME 000000 17.36 RESUME/APPLICATION/LETTER 000000 15.62 BUSINESS PLANS WIN DOLLAR 000000 7.73 GUN DIGEST HANDBOOK 000000 39.11 29 BOOKS 000000 20.82 I-200807141032 001-42-5175 EAP (EMPLOYER EAP PROGRAM 000000 10.68 DEPARTMENT 42 LIBRARY TOTAL: 141.76 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 16 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 001 GENERAL FUND DEPARTMENT: 46 ECONOMIC DEVELOPMENT BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VENDOR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 9S 880 COOPER'S COPIES I-80720 001-46-5210 OFFICE SUPPLI 3 COPIES ECON, DEVP BOOKS 000000 89.35 DEPARTMENT 46 ECONOMIC DEVELOPMENT TOTAL: 89935 VENDOR SET 001 GENERAL FUND TOTAL: 15,243.33 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 17 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 10 CITY COUNCIL BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VENDOR -' ------------------------------------------------------------ NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT -------------------------------------- --------------------------- 9S .400 FRANKLIN LEGAL PUBLISHI I-2001386 008-10-5420 CONTRACTUAL S CODE OF ORD, LIVE PUBLISH 000000 175.00 DEPARTMENT 10 CITY COUNCIL TOTAL: 175.00 ----------------------------------------------- -....... --------------------------------- 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 18 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 15 ADMINISTRATION BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VENDOR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT ------------------------------------------------------------------------------------------------------------------------------- 9S ,980 GODI EXTERMINATING I-1129089 008-15-5310 R & M BUILDIN EXT, CITY HALL 000000 15.00 99-16800 NICHOLS OF TEXAS I-200807141034 008-15-5420 CONTRACTUAL S GENERAL LEGAL SERVICE 000000 351.37 99-19160 WORKERS ASSISTANCE PROG I-200807141032 008-15-5175 EAP (EMPLOYER EAP PROGRAM 000000 4.00 DEPARTMENT 15 ADMINISTRATION TOTAL: 370.37 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 18 ENGINEERING BUDGET TO USE: CB -CURRENT BUDGET VENMOR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION 9S _s980 GODI EXTERMINATING I-1129089 008-18-5310 R & M BUILDIN EXT. CITY HALL 99-19160 WORKERS ASSISTANCE PROG PAGE: 19 BANK: SB99 CHECK# AMOUNT 000000 15.00 I-200807141032 008-18-5175 NAP (EMPLOYER EAP PROGRAM 000000 1.33 DEPARTMENT 18 ENGINEERING TOTAL: 16.33 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 20 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND DEPARTMENT: 008 19 ENTERPRISE FUND DATA PROCESSING BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VF"qR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 99 d980 GODI EXTERMINATING I-1129089 008-19-5310 R & M BUILDIN EXT. CITY HALL 000000 30.00 99-11170 RICOH, INC. I-402806464 008-19-5315 99-19160 WORKERS ASSISTANCE PROG 7 -200807191032 008-19-5175 99-19260 TYLER TECHNOLOGIES I-67016 / 67015 008-19-5315 I-67291 008-19-5315 R & M MACHINE COPIER MAINT. EAP (EMPLOYER EAP PROGRAM R & M MACHINE COURT/S9EB FEES/UB INQUIRY R & M MACHINE ANNUAL MAINT FOR PO SYSTE 000000 88.79 000000 13.35 000000 110.00 000000 1,063.00 DEPARTMENT 19 DATA PROCESSING TOTAL: 1,305.19 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 21 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND DEPARTMENT: 008 36 ENTERPRISE FUND FLEET SERVICES BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VEr'nOR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 9 �550 ATMOS I-200807141033 008-36-5515 ELECTRIC & GA UTILITY GAS 000000 4.72 99-19160 WORKERS ASSISTANCE PROG I-200807141032 008-36-5175 EAP (EMPLOYER PAP PROGRAM 000000 2.67 DEPARTMENT 36 FLEET SERVICES TOTAL: 7.39 7/14/2008 3:52 PM REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 22 PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 50 WATER BANK: SB99 BUDGET TO USE: CB -CURRENT BUDGET VENDOR NAME ITEM N G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 9 �600 US METERING & TECHNOLOG I-111967 008-50-5372 WATER METER & 12 60W INTERGR METERS 000000 3,910.80 99-19160 WORKERS ASSISTANCE PROG I-200807141032 008-50-5175 EAP (EMPLOYER EAP PROGRAM 000000 16.02 DEPARTMENT 50 WATER TOTAL: 31926.82 7/14/2008 3:52 PM PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 54 WASTE WATER TREATMENT BUDGET TO USE: CB -CURRENT BUDGET VENDOR NAME ITEM # 9_ �160 WORKERS ASSISTANCE PROG I-200807141032 REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 23 BANK: SB99 G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 008-54-5175 EAP (EMPLOYER EAP PROGRAM 000000 8.01 DEPARTMENT 54 WASTE WATER TREATMENT TOTAL: 8.01 ---------------------------------------------------------------------- 7/14/2008 3:52 PM PACKET: 01632 cc packet 7/21/08 VENDOR SET: 99 FUND 008 ENTERPRISE FUND DEPARTMENT: 58 ELECTRIC DEPARTMENT BUDGET TO USE: CB -CURRENT BUDGET REGULAR DEPARTMENT PAYMENT REGISTER PAGE: 24 VED�nOR NAME ITEM # G/L ACCOUNT NAME DESCRIPTION CHECK# AMOUNT 9s _690 TECHLINE, INC. I-1437435 008-58-6020 IMPROVEMENTS 50' STEEL POLES 000000 3,720.00 I-1437759 & 1437774 008-58-6020 IMPROVEMENTS 150W HPS BULBS/4'FLORESCE 000000 410.40 I-1437759 & 1437774 008-58-6020 IMPROVEMENTS 150W HPS BULBS/4'FLORESCE 000000 152.50 I-1437767/68/61/69/6 008-58-6020 IMPROVEMENTS MATERIALS TO STOCK 000000 3,337.60 I-1437767/68/61/69/6 008-58-6020 IMPROVEMENTS MATERIALS TO STOCK 000000 30.00 I-14381080 / 1438179 008-58-6020 IMPROVEMENTS 100 #6 INDUSTRIAL SLEEVES 000000 39.00 I-14381080 / 1438179 008-58-6020 IMPROVEMENTS 50 BLUE 3/4/X66' TAPE 000000 102.50 I-1438178 008-58-6020 IMPROVEMENTS 5 150W HPS GLOVES 000000 49.50 I-1438181 008-58-6020 IMPROVEMENTS 2000' #2 OH TRIPLEX 000000 1,280.00 I-1438211 008-58-6020 IMPROVEMENTS 1000' 4/0 UG TRIPLEX WIRE 000000 lr600.00 I-3034136 008-58-5250 MINOR TOOLS FREIGHT 000000 5.84 I-3034136-0-THRU 04 008-58-5250 MINOR TOOLS GLOVE TESTER 000000 153.70 I-3034136-0-THRU 04 008-58-5250 MINOR TOOLS MAG. BLANKET HOLDERS 000000 125.10 I-3034136-0-THRU 04 008-58-5250 MINOR TOOLS FR TENT 8X8 000000 745.00 I-3034136-0-THRU 04 008-58-5250 MINOR TOOLS LOAD P/U TOOL 12' LONG 000000 564.00 99-13970 HUMBERTO PEREZ I-13152 008-58-5420 CONTRACTUAL S TREE TRIMMING 000000 900.00 99-17380 THE GLOVE GUY I-1015 008-58-5260 SAFETY EQUIPM 6 WORK GLOVES 000000 76.80 99-19160 WORKERS ASSISTANCE PROG I-200807141032 008-58-5175 EAP (EMPLOYER EAP PROGRAM 000000 24.03 DEPARTMENT 58 ELECTRIC DEPARTMENT TOTAL: 13,315,97 VENDOR SET 008 ENTERPRISE FUND TOTAL: 19,125.03 REPORT GRAND TOTAL: 34,368.36 CITY OF SANGER FISCAL IrEiMpt, Provosed Expenditure Amount Encumbered Amount i 01111IIHE ■MENE■ BACKGROUND/SUMMARY OF ITEM This agreement was approved by Council at a prior meeting; however, Brazos made our corrections as noted in the previous agreement plus they also corrected an issue regarding operational control of the distribution breakers that serve the City feeders. In part 10 of the facility schedule there was a mention of cost as stated in Section 5.3 and there was not a 5.3 in the agreement so it was removed. STAFF OPTIONS & RECOMMENDATION Recommends approval List of Supporting Documents/ExhibitsAttached: nor Action/Review by Council, Boards, Commissions or Other Agencies: Message Page 1 of 4 Rose Chavez From: David Albers [dalbers@brazoselectric.com] Sent: Wednesday, July 02, 2008 9:22 AM To: Rose Chavez Cc: mbrice@sangertexas.org.; Johnny York Subject: RE: Interconnection Agreement between the City of Sanger and Brazos Electric Rose, I really hate to do this but it appears I have found some errors in the interconnect agreement you had signed. What I have done is edited the original document to include your changes and added some new changes of our own. Briefly, we wanted to correct an issue regarding operational control of the distribution breakers that serve the City's feeders. Brazos does not operate distribution breakers in these instances and there has been some confusion in the past about this so we wanted to correct the language in the document. In part 10 of the Facility Schedule there was a mention of a cost as stated in Section 5.3 but there is no 5.3 in the agreement so this needed to be removed as well. You will seem my changes are tracked in one document. I have provided you 2 versions of this draft, one showing the changes and a 'clean' draft for execution if the changes are acceptable. If the changes are acceptable please execute 2 copies of the `clean' document this time so that this will provide us both with an original signed copy once we are done. I'm sorry for the inconvenience but I feel it is necessary in this case. Let me know if you have any questions. From: David Albers Sent: Wednesday, June 18, 2008 9:17 AM To: 'Rose Chavez' Subject: RE: Interconnection Agreement between the City of Sanger and Brazos Electric Great! Thank you for the information. We'll send you an executed copy back shortly. From: Rose Chavez[mailto:rchavez@sangertexas.org] Sent: Wednesday, June 18, 2008 8:45 AM To: David Albers Subject: RE: Interconnection Agreement between the City of Sanger and Brazos Electric David, there were three changes, page 8 and 9 change Administrator to City Manager and on page 10 correct Administrator to City Manager and we changed the name from Jack Smith to Mike Brice. Let me know if you need additional information. City of Sanger P.O. Box 1729 Sanger, Texas 76266 940-458-7930 940-458-4180 (fax) -----Original Message ----- From: David Albers [mailto:dalbers@brazoselectric.com] Sent: Tuesday, June 17, 2008 11:42 AM To: Rose Chavez Subject: RE: Interconnection Agreement between the City of Sanger and Brazos Electric f;osc;, 7/2/2008 Brazos/Sanger Interconnection INTERCONNECTION AGREEMENT BETWEEN CITY Of SANGER AND BRAZOS ELECTRIC POWER COOPERATIVE, INC. This Interconnection Agreement ("Agreement") is made and entered into this _day of 2008, ("Effective Agreement Date") by the City of Sanger, a Texas Home Rule municipal corporation of the State of Texas ("City") and Brazos Electric Power Cooperative, Inc. ("Brazos Electric"), a cooperative corporation organized under the laws of the State of Texas, each hereinafter sometimes referred to individually as "Party" or both referred to collectively as the "Parties". In consideration of the mutual covenants set forth herein, the Parties agree as follows: ARTICLE 1. DEFINITIONS Capitalized terms shall have the meanings as set forth below, except as otherwise specified in the Agreement. Capitalized terms that are not otherwise defined in this Agreement shall have the meaning ascribed to such terms as found in the ERCOT Protocols, the ERCOT Operating Guides, or the PUCT Substantive Rules, as applicable: 1.1 "Distribution System" shall mean an electrical system operating below 60,000 volts (60KV), when measured phaseAo-phase. 1.2 "Effective Service Date" shall mean each date ascribed thereto in Exhibit A for the applicable Facility Schedule under this Agreement for a Point of Interconnection. 1.3 "ERGOT" shall mean the Electric Reliability Council of Texas or its successor in function. 1.4 "ERGOT Operating Guides" shall mean those operating guides promulgated by ERGOT relating to practices to be followed in the operation of the interconnected systems of the member utilities of ERCOT, in effect and as amended from time to time, and any successor guides or rules of ERCOT applicable to the same subject matter. 1.5 "ERGOT Protocols" shall mean the documents adopted by ERGOT, including any attachments or referenced exhibits, in effect and as amended from time to time that contain the scheduling, operating, planning, reliability, settlement policies, rules, guidelines, procedures, standards, and criteria of ERGOT, and any successor rules of ERCOT applicable to the same subject matter. 1.6 "Facility Schedule" shall specify for each Point of Interconnection the facilities to be provided by the Parties, the ownership thereof, the nominal voltage at the interconnection, the method of metering, the operating and maintenance responsibilities of each Party with respect to each Point of Page I Brazos/Sanger Interconnection Interconnection, and such other terms and conditions as are deemed mutually agreeable by the Parties. 1.7 "Good Utility Practice" shall mean any of the practices, methods and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Good Utility Practice shall include, but not be limited to, conformance with the applicable and consistently applied reliability criteria, standards and operating guides of ERCOT and the North American Electric Reliability Corporation, or successor organization(s). 1.8 "Operational Control" shall mean the day to day operational responsibilities and duties of a Distribution Service Provider in ERCOT. 1.9 "Point(s) of Interconnection" shall mean the interconnection locations) specified on Exhibit A hereto and the attached Facility Schedules where the Parties interconnect their facilities. 1.10 "PUCT" shall mean the Public Utility Commission of Texas or its successor in function. 1.11 "PUCT Substantive Rule(s)" shall mean Substantive Rules as promulgated by the Public Utility Commission of Texas ("PUCT"), in effect and as amended from time to time, and any successor rules of the PUCT applicable to this Agreement. 1.12 "TCOS" are costs incurred by an electric utility, amunicipally-owned utility, or an electric cooperative to own, operate, and maintain facilities for the transmission of electricity which operates at or above 60,000 (60KV) volts when measured phase -to phase. 1.13 "Telemetry" shall have the meaning set forth in the ERCOT Operating Guides. 1.14 "Transmission System" shall mean an electrical system operating at 60,000 volts (60K� or above, when measured phase -to -phase. Page 2 Brazos/Sanger Interconnection ARTICLE 2. ESTABLISHMENT, MODIFICATION AND TERMINATION OF POINTS OF INTERCONNECTION 2.1 The Parties agree to interconnect their facilities at the Points of Interconnection in accordance with the terms and conditions, specified on Exhibit A hereto and the attached Facility Schedules. 2.2 Subject to Section 8.1, this Agreement becomes effective on the Effective Agreement Date of this Agreement and shall continue in full force thereafter from year-to-year until terminated by mutual agreement or by either Party upon at least three (3) years prior written notice. Upon termination of this Agreement, each Party shall discontinue the use of the facilities of the other and shall disconnect the Point(s) of Interconnection. Any TCOS recovery obligations in this Agreement shall survive termination of this Agreement until such obligations are fulfilled in accordance to the provisions in the applicable Facility Schedule. 2.3 This Agreement maybe amended only upon mutual agreement by the Parties, which amendment will not be effective until reduced to writing and executed by both Parties. From time to time, a Point of Interconnection may be added, changed, modified, or deleted from this Agreement as mutually agreed to in writing by the Parties and/or as ordered by a regulatory authority having jurisdiction thereof. 2A Either Party may request the other Party to upgrade or modify its terminal facilities at a Point of Interconnection in accordance with the other Party's standard design of equipment and practice, provided that the upgrade or modification is consistent with Good Utility Practice and, if applicable, approved by the Regional Planning Group of ERCOT. The requesting Party shall provide the responsive Party a minimum of at least three (3) years notice of the upgrade or modification of its terminal facilities at a Point of Interconnection. A shorter notice term is acceptable but only by mutual acceptance of both Parties. Such request shall not be unreasonably denied. 2.5 The responsibilities of the Parties for the costs associated with the establishment of each Point of Interconnection shall be as specified in the applicable Facility Schedule. Both Parties agree that each Point of Interconnection will be established and maintained in conformance with the ERCOT Operating Guides and Protocols. 2.6 Unless otherwise provided in a Facility Schedule, each Party shall, at each Point of Interconnection, at its own risk and expense, design, install, or cause the design and installation of the transmission or distribution facilities (including all apparatus and necessary protective devices) on its side of the Point of Interconnection, so as to reasonably minimize the likelihood of voltage and frequency abnormalities, originating in the Page 3 Brazos/Sanger Interconnection system of one Party, from affecting or impairing the system of the other Party, or other systems to which the system of such Parry is interconnected. The Parties agree to cause their systems to be constructed in accordance with specifications at least equal to those provided by the National Electrical Safety Code, approved by the American National Standards Institute, in effect at the time of construction. 2.7 Unidirectional or bi-directional operation for each Point of Interconnection shall be specified on the applicable Facility Schedule. 2.8 This Agreement, including all attached Exhibits and Facility Schedules, which are expressly made a part hereof for all purposes, constitutes the entire agreement and understanding between the Parties with regard to the interconnection of the facilities of the Parties at the Points of Interconnection expressly provided for in this Agreement. The Parties are not bound by or liable for any statement, representation, promise, inducement, understanding, or undertaking of any kind or nature (whether written or oral) with regard to the subject matter hereof not set forth or provided for herein. This Agreement replaces all prior agreements and undertakings, oral or written, between the Parties with regard to the subject matter hereof, and all such agreements and undertakings are agreed by the Parties to no longer be of any force or effect. It is expressly acknowledged that the Parties may have other agreements covering other services not expressly provided for herein, which agreements are unaffected by this Agreement. 2.9 This Agreement has been duly authorized by all necessary corporate action by such Party, has been duly executed and delivered by such Party, and constitutes the legal, valid and binding agreement of such Party enforceable against such Parry in accordance with its terms. ARTICLE 3. SYSTEM OPERATION AND MAINTENANCE 3.1 Each Party will, at its own cost and expense, operate, maintain, repair, and inspect, and shall be fully responsible for liabilities related to the transmission and distribution lines and related facilities which it now or hereafter may own located at or connected to each Point of Interconnection, unless otherwise specified on the applicable Facility Schedule. 3.2 Maintenance by either Party that will cause a deviation from normal power and energy flow at a Point of Interconnection will be scheduled at a mutually agreeable time. Emergency operations shall be in accordance with the applicable provisions in the ERCOT Operating Guides. No E Brazos/Sanger Interconnection changes will be made in the normal operation of a Point of interconnection without the mutual agreement of the Parties. 3.3 The Parties will review, coordinate, and exchange equipment specifications and protective relaying information and settings that affect the establishment of and interconnected operations of the Points of Interconnections. Each Party will coordinate the protective devices of the lines and facilities it owns and operates at each Point of Interconnection. 3.4 Each Party covenants and agrees to design, install, maintain, and operate, or cause the design, installation, maintenance, and operation of, its Transmission System and Distribution System and related facilities so as to reasonably minimize the likelihood of a disturbance, originating in the system of one Party, affecting or impairing the system of the other Party, or other systems with which the Party is interconnected. 3.5 Each Party will provide the reactive requirements for its own system as ruled by the PUCT or in accordance with the ERCOT Operating Guides and ERCOT Protocols. 3.6 The operation of either Party's facilities shall not cause a synchronous interconnection between ERCOT and any other transmission facilities operated outside of ERCOT. Any such interconnection will give either Party the right to immediately disconnect the effected Point(s) of Interconnection until such interconnection is removed. ARTICLE 4. RIGHTS OF ACCESS, EQITIPMENT REMOVAL AND INSTALLATION 4.1 Each Party shall permit duly authorized representatives and employees of the other Party to enter upon its premises for the purpose of inspecting, testing, repairing, renewing or exchanging any or all of the equipment owned by such other Party that is located on such premises or for the purpose of performing any work necessary in the performance of this Agreement. 4.2 During periods of emergency conditions declared by the ERCOT or as necessary to restore customer service, either Party may operate equipment that is normally operated by the other Party, provided that authorization to do so must first be received from the Party that normally operates the equipment, such authorization not to be unreasonably withheld or delayed. It shall be considered reasonable for the Party that normally operates such equipment to deny such a request by the other Party if the withholding Party will provide such operation within the time frame called for in the circumstances. Such operations by the other Party will be at no cost to the owner or normal operator of the equipment. Brazos/Sanger Interconnection 4.3 Any and all equipment placed on the premises of a Party shall be and remain the property of the Party providing such equipment regardless of the mode and manner of annexation or attachment to real property, unless otherwise mutually agreed to in writing by the Parties. ARTICLE 5. OTHER SERVICES 5.1 This Agreement is applicable only to the interconnection of the facilities of the Parties at the Points of Interconnection and does not obligate the Parties to provide, or entitle the Parties to receive, any service not expressly provided for herein. Each Parry is responsible for making the arrangements necessary for it to receive any other service that it may desire from the other Party or any third parry. 5.2 Each Facility Schedule shall indicate whether any other tariffs, services or rates apply at each Point of Interconnection. ARTICLE 6. INDEMNIFICATION 6.1 The provisions of PUCT Substantive Rule 25.202, or its successor in function, in effect and as amended from time to time throughout the term of this Agreement, shall govern the liabilities of each Party, including any liabilities for damages in the event of any act beyond such Party's control, and the obligation of each Party to indemnify the other in the event of losses resulting from negligence or other fault in the design, construction or operation of their respective facilities. 6.2 Except as set forth herein, there is no warranty of merchantability or fitness for a particular purpose, and any and all implied warranties are disclaimed. ARTICLE 7. SUCCESSORS AND ASSIGNS 7.1 This Agreement is not intended to and does not create any rights, remedies, or benefits whatsoever in favor of any persons or entities other than the Parties to this Agreement. A Party's rights under this Agreement may not be assigned, except to persons who are wholly owned subsidiaries of the Parry, the parent corporation of the Parry or are controlled by the same parent corporation, without the prior written consent of the other Brazos/Sanger Interconnection Party; provided, however, Brazos Electric may, without the prior consent of City, assign, transfer, mortgage or pledge this Agreement to create a security interest for the benefit of the United States of America acting through the Administrator of the Rural Utilities Service. The rights and obligations of this Agreement are solely for the use and benefit of, and shall be binding upon, the Parties, their successors4n4nterest and, where permitted, their assigns. 7.2 This Agreement shall not be interpreted or construed to create an association, joint venture or partnership between the Parties, nor to impose any partnership obligations or liability on either Parry. Furthermore, neither Parry shall have any right, power, or authority to enter into any agreement or undertaking for or on behalf of, to act as or be an agent or representative of, or to otherwise bind the other Party. ARTICLE 8. GOVERNING LAW AND REGULATION 8.1 This Agreement was executed in the State of Texas and must in all respects be governed by, interpreted, construed, and enforced in accordance with the laws thereof, without regard to conflicts of law principles, except as to matters exclusively controlled by the Constitution and statutes of the United States of America. This Agreement is subject to all valid, applicable federal, state, and local laws, ordinances, and rules and regulations of duly constituted regulatory authorities having jurisdiction. This Agreement and all obligations hereunder, are expressly conditioned upon obtaining approval, authorization, or acceptance by the Rural Utilities Services ("RUS") or any governing body, as required. 8.2 In the event a Court of competent jurisdiction declares any part of this Agreement invalid, the remainder of said Agreement shall remain in full force and effect and shall constitute a binding agreement between the Parties. ' 1 1 _ :_ �� 1 __ 177�1 D7►� �141 D111.7 �I 9.1 Neither Party shall be considered in default with respect to any obligation hereunder, other than the payment of money, if prevented from fulfilling such obligation by reason of any cause beyond its reasonable control including, but not limited to, outages or interruptions due to weather, accidents, equipment failures or threat of failure, strikes, civil unrest, injunctions or order of governmental authority having jurisdiction. If performance by either Parry has been prevented by such event, the affected Party shall promptly and diligently attempt to remove the cause of Page 7 Brazos/Sanger Interconnection its failure to perform, except that neither Brazos Electric nor City shall be obligated to agree to any quick settlement of any strike or labor disturbance, which, in the affected Parry's opinion, may be inadvisable or detrimental, or to appeal from any administrative or judicial ruling. 9.2 Should either of the Parties hereto violate any material provisions of this Agreement, the other Party shall give written notice to the violating Party specifying the violation. Upon actual receipt of the Notice of Violation, such Party shall have one hundred eighty (180) days to correct such violation. In the event such violation of this Agreement is not corrected by the expiration of said one hundred eighty (180) days, this Agreement, subject to the applicable regulations of any jurisdictional regulatory authority, may be terminated by giving no less than sixty (60) days written notice of the Intention To Terminate, but no other remedy or remedies, available under the law, for such violation shall be limited in any way because of this provision or the exercise of the right conferred hereunder. 9.3 The failure of a Party to this Agreement to insist, on any occasion, upon strict performance of any provision of this Agreement will not be considered to waive the obligations, rights, or duties imposed upon the Parties. ARTICLE 10. NOTICES 10.1 Notices of an administrative nature, including but not limited to a notice of termination, a request for amendment, a change to a Point of Interconnection, or a request for a new Point of Interconnection shall be forwarded to the designees listed below for each Party and shall be deemed to have been duly delivered if hand delivered or sent by United States certified mail, return receipt requested, postage prepaid. If to City: City of Sanger Attn: City Manager P.O. Box 1729 Sanger, Texas 76266 If to Brazos Electric: Brazos Electric Power Cooperative, Inc. Attn: Manager — System Planning P.O. Box 2585 Waco, Texas 76702-2585 The above listed names, titles, and addresses of either Party may be changed upon written notification to the other Party. 10.2 Invoices for sums due hereunder will be rendered by City to Brazos Electric or by Brazos Electric to City as follows: E Brazos/Sanger Interconnection If by City to Brazos Electric: Brazos Electric Power Cooperative, Inc. Attn: Accounting Dept. P.O. Box 2585 Waco, Texas 76702-2585 If by Brazos Electric to City: City of Sanger Attn: City Manager P.O. Box 1729 Sanger, Texas 76266 10.3 Billing and payments will be in accordance with PUCT Substantive Rule 25.202 or its successor in function. Interest will accrue on any unpaid amount, calculated in accordance with PUCT Substantive Rule 25.202 or its successor in function. When payments are made by mail, invoices are considered as having been paid on the date that payment is received. Any payments made by the Parties under this Agreement must be made in immediately available funds with sufficient information to identify the source and application of the funds, or to such other bank account so directed in writing. 10.4 Bills not paid when due shall accrue interest on the unpaid balance from the due date until payment is received at the interest rate provided in PUCT Substantive Rule 25.202 or its successor in function. 10.5 If any portion of an invoice is in dispute, the disputed amount shall be paid by the disputing Party into an interest bearing account at a rate in accordance with PUCT Substantive Rule 25.202 or its successor in function until the dispute is resolved according to the reasonable satisfaction of both Parties. Within thirty (30) days of the payment of a disputed invoice, the disputing Party will give the other Party written notice of its dispute with the facts supporting the dispute. Each Party shall act in good faith to promptly resolve any such dispute. Adjustments in payments will be made as mutually agreed to by the Parties. Each Party agrees to make available to the other Party such system data as may be necessary to determine any factors for billing under the terms and conditions of this Agreement. The disputing Party shall remain obligated to pay any portion of an invoice not in dispute. 10.6 Neither Party shall have the right to initiate a challenge of any invoice rendered hereunder in a court of law or equity, arbitration, administrative proceeding, tribunal, or any other authority after a period of twenty-four (24) months from the date such invoice was first rendered. Page 9 Brazos/Sanger Interconnection ARTICLE 119 MISCELLANEOUS PROVISIONS 11.1 All present or future federal, state, municipal, or other lawful taxes (other than federal income taxes, except where such federal income tax is applicable to a contribution in aid of construction) applicable by reason of any service performed by City for Brazos Electric, or any compensation paid to City by Brazos Electric, hereunder must be paid by Brazos Electric. City is a tax-exempt entity and will provide its tax exemption number. Brazos Electric shall be responsible for all property taxes assessed on facilities that such Parry owns. 11.2 The descriptive headings of the various articles and sections of this Agreement have been inserted for convenience of reference only and are to be afforded no significance in the interpretation or construction of this Agreement. 11.3 Facsimile copies of operational correspondence, other than notices including signatures thereon shall constitute original required hereunder, copies thereof and shall be as binding on the Parties hereto as the original. 11.4 This Agreement may be executed in two or more counterparts, each of which is deemed an original but all constitute one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their respective duly authorized representatives. Brazos Electric Power Cooperative, Inc. City of Sanger By: Clifton B. Karnei By: Title: Executive Vice President & Title: General Manager Date: Date: Mike Brice City Manager ESL Brazos/Sanger Interconnection Brazos Electric /City Interconnection Agreement Exhibit A Facility Schedule Number Point of Interconnection Voltage KV Effective Service Date Minimum Monthly Demand Service to be ' Provided Service Provider 1 Sanger North Substation 13.2 7/1/1997 14,000 KW Distribution Substation Service Brazos Electric 2 3 4 5 6 7 8 9 10 * Where applicable, the Minimum Monthly Demand will be used in any associated rates or tariffs to calculate charges. Page 11 Brazos Electric I City Interconnection Agreement Facility Schedule No. 1 for Sanger North 1. Name: Sanger North 13.2KV Points) of Interconnection 2. Location: This unidirectional Points) of Interconnection will be in Brazos Electric's Sanger North Substation ("Delivery Substation") where the City's 13.2KV distribution lines contact Brazos Electric's dead-end insulator assembly on Brazos Electric's distribution structures in the Delivery Substation, The Delivery Substation is located west of the intersection of Interstate Highway I-35 and FM Road 455 in the City of Sanger in Denton County, Texas, and under and adjacent to Brazos Electric's existing 138KV transmission line between Rector Road and Spring Substation (reference attached vicinity map drawing 697S Sheet G1A) 3. Delivery Voltase: 13.2KV (unidirectional) 4. Meterina: All metering equipment provided herein will be in accordance with the applicable requirements of the ERCOT Operating Guides and ERCOT Protocols, or its successor in function. Metering equipment will be located on the low -side of the Delivery Substation and compensated for losses to the high -side terminals of the main transformer. 5. Normally closed (check onel: X Yes / No 6. One line diagram attached (check onel: X Yes / _ No (Drawing 697R sheet FS) 7. Facilities to be furnished and owned by City: (a) Load feeder distribution lines and termination of same distribution lines on Brazos Electric's structures in the Delivery Substation. (b) Rights -of -way for distribution lines owned by the City. 8. fie," to be furnished and owned by Brazos Electric: (a) Dead-end 138KV structures in Delivery Substation to terminate Brazos Electric's Rector Road to Spring 138KV transmission line. (b) One three-phase 138KV line drop loop splitting disconnect switch mounted on or near dead-end structures in the Delivery Substation. (C) Two three-phase 138KV line disconnect switches mounted on or near the dead-end structures in the Delivery Substation. (d) One 138KV circuit-switcher on the high -side of the main transformer in the Delivery Substation. (e) One high speed single-phase ground switch connected on the source side of the 138KV circuit-switcher. (f) Three 138KV lightning arresters mounted between the circuit-switcher and main transformer in the Delivery Substation. (g) Delivery Substation main transformer (13843.2KV) with regulation and associated protective relaying. (h) Low -side bus work with 13.2KV distribution bays including breakers at the Delivery Substation. (i) All hardware, bus work, distribution arresters, conduit, cable, grounding, foundations, earthwork, and fencing for the Delivery Substation. (j) Property to accommodate the Delivery Substation facilities. Brazos/Sanger Interconnection (k) Three potential and three current metering accuracy instrument transformers connected to the low -side bus of the Delivery Substation. (1) Metering Equipment and SCADA equipment at the Delivery Substation with communication facilities for SCADA to Brazos Electric's System Control Center in Waco, Texas. 9. Operation and Maintenance: Each Party will be responsible for the operation and maintenance of the facilities it owns at this Point of Interconnection and in accordance with the other terms and conditions stated in this Agreement except for the Operational Control of the distribution breakers located in the Delivery Substation that connect electrically to the City's load distribution feeders. Operational Control of these devices shall be the responsibility of the City. Maintenance of these devices shall be performed by Brazos Electric. The City shall have access into the Delivery Substation for the purpose of operating facilities in accordance with this Facility Schedule. The Delivery Substation control house, and the gate to the Delivery Substation will be double -locked with the locks of both Parties. 10. Cost Responsibility: Each Party will be fully responsible for the liabilities related to the facilities it owns. Each Party will be responsible for all costs it incurs in connection with the establishment of this Point of Interconnection. 11. Supplemental terms and conditions: (a) When this Agreement was executed, the City was purchasing from Brazos Electric wholesale electric service, including capacity, energy, transmission, distribution and ancillary services, pursuant to the Wholesale Power Supply Contract between Brazos Electric and the City. This Agreement will supersede that portion of the Wholesale Power Supply Contract between Brazos Electric and the City related to interconnected electrical facilities for delivery points. (b) Brazos Electric will provide, and City will pay for, distribution substation service for this Point of Interconnection. This service consist of Brazos Electric providing transformation of electric power and energy from one of Brazos Electric's standard transmission voltages (60 KV or higher) to one of Brazos Electric's standard voltages below 60 KV including substation distribution bays. This service is provided, and the charges for this service is determined, in accordance with Brazos Electric's Wholesale Distribution Service Tariff (Rate WDS) or its successor (together with all riders applicable thereto), as it may from time to time be changed by Brazos Electric's Board of Directors or governing body. The Contract Demand for this Point of Interconnection is specified in Exhibit A of this Agreement Page I3 Brazos/Sanger Interconnection C Q 0 E r` 0` CD Page 14 Interconnection ' lEuEhII: 1'i.2kY P7t1T L'F I�TENCthrEtT'IDti�._ ( I TO �41M 1"m 90 TO LIP343 IM xY 5UMHE5 T� waCI+siY IF Wran cra rr3: T---- �tTr LF ca M% I OPAIM MIMIC H.S. gGUrD ' H,S.GU.IxU AIf:H SVIT.'H 8 PF55 � Q7 MLRR Tadt"ifANFR erclYS�R �52 :'3.i K� �3fl"i3.7 KY C C� T. rJ o[sTe[�:rY[av aers I "A' bKFax�+r 9�EAkEA N'crk Order/Job No.� BRA7AS �.� . ,F,CTRIC C00ffRATIVE sr9�ss BANGER NORTH SUBSTATION CITY OF SANGER INTERCONNECTION SINGLE LINE DIAGRAM ScDwy. No.: Gete7 12/1N/t�7 Crewnt SG 697R Chc�okod: Approved! ?rant: Shoot No.: FS ale: NONE Page 15 t Brazos/Sanger Interconnection INTERCONNECTION AGREEMENT BETWEEN CITY Of SANGER AND BRAZOS ELECTRIC POWER COOPERATIVE, INC. This Interconnection Agreement ("Agreement") is made and entered into this _day of 2008, ("Effective Agreement Date") by the City of Sanger, a Texas Home Rule municipal corporation of the State of Texas ("City") and Brazos Electric Power Cooperative, Inc. ("Brazos Electric"), a cooperative corporation organized under the laws of the State of Texas, each hereinafter sometimes referred to individually as "Party" or both referred to collectively as the "Parties". In consideration of the mutual covenants set forth herein, the Parties agree as follows: ARTICLE 1. DEFINITIONS Capitalized terms shall have the meanings as set forth below, except as otherwise specified in the Agreement. Capitalized terms that are not otherwise defined in this Agreement shall have the meaning ascribed to such terms as found in the ERCOT Protocols the ERCOT Operating Guides or the PUCT Substantive Rules, as applicable: 1.1 "Distribution System" shall mean an electrical system operating below 60,000 volts (60KV), when measured phaseAo-phase. 1.2 "Effective Service Date" shall mean each date ascribed thereto in Exhibit A for the applicable Facility Schedule under this Agreement for a Point of Interconnection. 1.3 "ERGOT" shall mean the Electric Reliability Council of Texas or its successor in function. 1.4 "ERGOT Operating Guides" shall mean those operating guides promulgated by ERGOT relating to practices to be followed in the operation of the interconnected systems of the member utilities of ERCOT, in effect and as amended from time to time, and any successor guides or rules of ERCOT applicable to the same subject matter. 1.5 "ERGOT Protocols" shall mean the documents adopted by ERGOT, including any attachments or referenced exhibits, in effect and as amended from time to time that contain the scheduling, operating, planning, reliability, settlement policies, rules, guidelines, procedures, standards, and criteria of ERCOT, and any successor rules of ERCOT applicable to the same subject matter. 1.6 "Facility Schedule" shall specify for each Point of Interconnection the facilities to be provided by the Parties, the ownership thereof, the nominal voltage at the interconnection, the method of metering, the operating and maintenance responsibilities of each Party with respect to each Point of lam Brazos/Sanger Interconnection Interconnection, and such other terms and conditions as are deemed mutually agreeable by the Parties. 13 "Good Utility Practice" shall mean any of the practices, methods and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Good Utility Practice shall include, but not be limited to, conformance with the applicable and consistently applied reliability criteria, standards and operating guides of ERCOT and the North American Electric Reliability Corporation, or successor organization(s). 1.8 "Operational Control" shall mean the day to da�perational responsibilities and duties of a Distribution Service Provider in ERCOT. 1.9 "Point(s) of Interconnection" shall mean the interconnection locations) specified on Exhibit A hereto and the attached Facility Schedules where the Parties interconnect their facilities. 1.10 "PUCT" shall mean the Public Utility Commission of Texas or its successor in function. 1.11 "PUCT Substantive Rule(s)" shall mean Substantive Rules as promulgated by the Public Utility Commission of Texas ("PUCT"), in effect and as amended from time to time, and any successor rules of the PUCT applicable to this Agreement. 1.12, "TCOS" are costs incurred by an electric utility, a municipally -owned utility, or an electric cooperative to own, operate, and maintain facilities for the transmission of electricity which operates at or above 60,000 (60KV) volts when measured phase -to phase. 1.13 "Telemetry" shall have the meaning set forth in the ERCOT Operating 1.14 "Transmission System" shall mean an electrical 60,000 volts (60K� or above, when t Deleted: 9 Deleted: 0 Deleted: I — Deleted:2 at ,. -- Deleted:3 Brazos/Sanger Interconnection ARTICLE 2. ESTABLISHMENT, MODIFICATION AND TERMINATION OF POINTS OF INTERCONNECTION 2.1 The Parties agree to interconnect their facilities at the Points of Interconnection in accordance with the terms and conditions, specified on Exhibit A hereto and the attached Facility Schedules. 2.2 Subject to Section 8.1, this Agreement becomes effective on the Effective Agreement Date of this Agreement and shall continue in full force thereafter from yearAo-year until terminated by mutual agreement or by either Party upon at least three (3) years prior written notice. Upon termination of this Agreement, each Party shall discontinue the use of the facilities of the other and shall disconnect the Point(s) of Interconnection. Any TCOS recovery obligations in this Agreement shall survive termination of this Agreement until such obligations are fulfilled in accordance to the provisions in the applicable Facility Schedule, 2.3 This Agreement maybe amended only upon mutual agreement by the Parties, which amendment will not be effective until reduced to writing and executed by both Parties. From time to time, a Point of Interconnection may be added, changed, modified, or deleted from this Agreement as mutually agreed to in writing by the Parties and/or as ordered by a regulatory authority having jurisdiction thereof. 2.4 Either Party may request the other Party to upgrade or modify its terminal facilities at a Point of Interconnection in accordance with the her Party's standard design of equipment and practice, provided that the upgrade or modification is consistent with Good Utility Practice and, if applicable, approved by the Regional Planning Group of ERCOT. The requesting Party shall provide the responsive Party a minimum of at least three (3) years notice of the upgrade or modification of its terminal facilities at a Point of Interconnection. A shorter notice term is acceptable but only by mutual acceptance of both Parties. Such request shall not be unreasonably denied. 2.5 The responsibilities of the Parties for the costs associated with the establishment of each Point of Interconnection shall be as specified in the applicable Facility Schedule. Both Parties agree that each Point of Interconnection will be established and maintained in conformance with the ERCOT Operating Guides and Protocols. 2.6 Unless otherwise provided in a Facility Schedule, each Party shall, at each Point of Interconnection, at its own risk and expense, design, install, or cause the design and installation of the transmission or distribution facilities (including all apparatus and necessary protective devices) on its side of the Point of Interconnection, so as to reasonably minimize the likelihood of voltage and frequency abnormalities, originating in the tem Brazos/Sanger tnterconnection system of one Party, from affecting or impairing the system of the her Party, or other systems to which the system of such Party is interconnected. The Parties agree to cause their systems to be constructed in accordance with specifications at least equal to those provided by the National Electrical Safety Code, approved by the American National Standards Institute, in effect at the time of construction. 2.7 Unidirectional or bi-directional operation for each Point of Interconnection shall be specified on the applicable Facility Schedule. 2.8 This Agreement, including all attached Exhibits and Facility Schedules, which are expressly made a part hereof for all purposes, constitutes the entire agreement and understanding between the Parties with regard to the interconnection of the facilities of the Parties at the Points of Interconnection expressly provided for in this Agreement. The Parties are not bound by or liable for any statement, representation, promise, inducement, understanding, or undertaking of any kind or nature (whether written or oral) with regard to the subject matter hereof not set forth or provided for herein. This Agreement replaces all prior agreements and undertakings, oral or written, between the Parties with regard to the subject matter hereof, and all such agreements and undertakings are agreed by the Parties to no longer be of any force or effect. It is expressly acknowledged that the Parties may have other agreements covering other services not expressly provided for herein, which agreements are unaffected by this Agreement. 2.9 This Agreement has been duly authorized by all necessary corporate action by such Party, has been duly executed and delivered by such Party, and constitutes the legal, valid and binding agreement of such Party enforceable against such Party in accordance with its terms. ARTICLE 3. SYSTEM OPERATION AND MAINTENANCE 3.1 Each Party will, at its own cost and expense, operate, maintain, repair, and inspect, and shall be fully responsible for liabilities related to the transmission and distribution lines and related facilities which it now or hereafter may own located at or connected to each Point of Interconnection, unless otherwise specified on the applicable Facility Schedule. 3.2 Maintenance by either Party that will cause a deviation from normal power and energy flow at a Point of Interconnection will be scheduled at a mutually agreeable time. Emergency operations shall be in accordance with the applicable provisions in the ERCOT Operating Guides. No tam! Brazos/SangerInterconnection changes will be made in the normal operation of a Point of Interconnection without the mutual agreement of the Parties. 3.3 The Parties will review, coordinate, and exchange equipment specifications and protective relaying information and settings that affect the establishment of and interconnected operations of the Points of Interconnections. Each Party will coordinate the protective devices of the lines and facilities it owns and operates at each Point of Interconnection. 3,4 Each Party covenants and agrees to design, install, maintain, and operate, or cause the design, installation, maintenance, and operation of, its Transmission System and Distribution System and related facilities so as to reasonably minimize the likelihood of a disturbance, originating in the system of one Party, affecting or impairing the system of the other Party, or other systems with which the Party is interconnected. 3.5 Each Party will provide the reactive requirements for its own system as ruled by the PUCT or in accordance with the ERCOT Operating Guides and ERCOT Protocols, 3.6 The operation of either Party's facilities shall not cause a synchronous interconnection between ERCOT and any other transmission facilities operated outside of ERCOT. Any such interconnection will give either Party the right to immediately disconnect the effected Point(s) of Interconnection until such interconnection is removed. ARTICLE 4. RIGHTS OF ACCESS, EQUIPMENT REMOVAL AND INSTALLATION 4.1 Each Party shall permit duly authorized representatives and employees of the other Party to enter upon its premises for the purpose of inspecting, testing, repairing, renewing or exchanging any or all of the equipment owned by such other Party that is located on such premises or for the purpose of performing any work necessary in the performance of this Agreement. 4.2 During periods of emergency conditions declared by the ERCOT or as necessary to restore customer service, either Party may operate equipment that is normally operated by the other Party, provided that authorization to do so must first be received from the Party that normally operates the equipment, such authorization not to be unreasonably withheld or delayed. It shall be considered reasonable for the Party that normally operates such equipment to deny such a request by the other Party if the withholding Party will provide such operation within the time frame called for in the circumstances. Such operations by the other Party will be at no cost to the owner or normal operator of the equipment. Page 5 Brazos/SangerInterconnection 4.3 Any and all equipment placed on the premises of a Party shall be and remain the property of the Parry providing such equipment regardless of the mode and manner of annexation or attachment to real property, unless otherwise mutually agreed to in writing by the Parties. ARTICLE 5.OTHER SERVICES 5.1 This Agreement is applicable only to the interconnection of the facilities of the Parties at the Points of Interconnection and does not obligate the Parties to provide, or entitle the Parties to receive, any service not expressly provided for herein. Each Party is responsible for making the arrangements necessary for it to receive any other service that it may desire from the other Party or any third party. 5.2 Each Facility Schedule shall indicate whether any other tariffs, services or rates apply at each Point of Interconnection. ARTICLE 6. INDEMNITICATION 6.1 The provisions of PUCT Substantive Rule 25.202, or its successor in function, in effect and as amended from time to time throughout the term of this Agreement, shall govern the liabilities of each Party, including any liabilities for damages in the event of any act beyond such Party's control, and the obligation of each Party to indemnify the other in the event of losses resulting from negligence or other fault in the design, construction or operation of their respective facilities. 6.2 Except as set forth herein, there is no warranty of merchantability or fitness for a particular purpose, and any and all implied warranties are disclaimed. ARTICLE 7. SUCCESSORS AND ASSIGNS '7.1 This Agreement is not intended to and does not create any rights, remedies, or benefits whatsoever in favor of any persons or entities other than the Parties to this Agreement. A Party's rights under this Agreement may not be assigned, except to persons who are wholly owned subsidiaries of the Party, the parent corporation of the Party or are controlled by the same parent corporation, without the prior written consent of the other Brazos/Sanger Interconnection Party; provided, however, Brazos Electric may, without the prior consent of City, assign, transfer, mortgage or pledge this Agreement to create a security interest for the benefit of the United States of America acting through the Administrator of the Rural Utilities Service. The rights and obligations of this Agreement are solely for the use and benefit of, and shall be binding upon, the Parties, their successors-mminterest and, where permitted, their assigns. 7.2 This Agreement shall not be interpreted or construed to create an association, joint venture or partnership between the Parties, nor to impose any partnership obligations or liability on either Party. Furthermore, neither Party shall have any right, power, or authority to enter into any agreement or undertaking for or on behalf of, to act as or be an agent or representative of, or to otherwise bind the other Party. ARTICLE 8. GOVERNING LAW AND REGULATION 8.1 This Agreement was executed in the State of Texas and must in all respects be governed by, interpreted, construed, and enforced in accordance with the laws thereof, without regard to conflicts of law principles, except as to matters exclusively controlled by the Constitution and statutes of the United States of America. This Agreement is subject to all valid, applicable federal, state, and local laws, ordinances, and rules and regulations of duly constituted regulatory authorities having jurisdiction. This Agreement and all obligations hereunder, are expressly conditioned upon obtaining approval, authorization, or acceptance by the Rural Utilities Services C RUS") or any governing body, as required. 8.2 In the event a Court of competent jurisdiction declares any part of this Agreement invalid, the remainder of said Agreement shall remain in full force and effect and shall constitute a binding agreement between the Parties. ARTICLE 9. DEFAULT AND FORCE MAJEURE 9.1 Neither Party shall be considered in default with respect to any obligation hereunder, other than the payment of money, if prevented from fulfilling such obligation by reason of any cause beyond its reasonable control including, but not limited to, outages or interruptions due to weather, accidents, equipment failures or threat of failure, strikes, civil unrest, injunctions or order of governmental authority having jurisdiction. If performance by either Party has been prevented by such event, the affected Party shall promptly and diligently attempt to remove the cause of Page 7 Brazos/Sanger Interconnection its failure to perform, except that neither Brazos Electric nor City shall be obligated to agree to any quick settlement of any strike or labor disturbance, which, in the affected Parry's opinion, may be inadvisable or detrimental, or to appeal from any administrative or judicial ruling. 9.2 Should either of the Parties hereto violate any material provisions of this Agreement, the other Party shall give written notice to the violating Party specifying the violation. Upon actual receipt of the Notice of Violation, such Party shall have one hundred eighty (180) days to correct such violation. In the event such violation of this Agreement is not corrected by the expiration of said one hundred eighty (180) days, this Agreement, subject to the applicable regulations of any jurisdictional regulatory authority, may be terminated by giving no less than sixty (60) days written notice of the Intention To Terminate, but no other remedy or remedies, available under the law, for such violation shall be limited in any way because of this provision or the exercise of the right conferred hereunder. 9.3 The failure of a Party to this Agreement to insist, on any occasion, upon strict performance of any provision of this Agreement will not be considered to waive the obligations, rights, or duties imposed upon the Parties. ARTICLE 10. NOTICES 10.1 Notices of an administrative nature, including but not limited to a notice of termination, a request for amendment, a change to a Point of Interconnection, or a request for a new Point of Interconnection shall be forwarded to the designees listed below for each Party and shall be deemed to have been duly delivered if hand delivered or sent by United States certified mail, return receipt requested, postage prepaid. If to City: City of Sanger Attu: City Mana.�er_ Deleted$ Administrator —� P.O. Box 1729 Sanger, Texas 76266 If to Brazos Electric: Brazos Electric Power Cooperative, Inc. Attn: Manager — System Planning P.O. Box 2585 Waco, Texas 76702-2585 The above listed names, titles, and addresses of either Party may be changed upon written notification to the other Party. 10.2 Invoices for sums due hereunder will be rendered by City to Brazos Electric or by Brazos Electric to City as follows: Brazos/Sanger Interconnection If by City to Brazos Electric: Brazos Electric Power Cooperative, Inc. Attn: Accounting Dept. P.O. Box 2585 Waco, Texas 76702-2585 If by Brazos Electric to City: City of Sanger Attn: City Manager = � �eieted: Administrator P.O. Box 1729 Sanger, Texas 76266 10.3 Billing and payments will be in accordance with PUCT Substantive Rule 25.202 or its successor in function. Interest will accrue on any unpaid amount, calculated in accordance with PUCT Substantive Rule 25.202 or its successor in function. When payments are made by mail, invoices are considered as having been paid on the date that payment is received. Any payments made by the Parties under this Agreement must be made in immediately available funds with sufficient information to identify the source and application of the funds, or to such other bank account so directed in writing. 10.4 Bills not paid when due shall accrue interest on the unpaid balance from the due date until payment is received at the interest rate provided in PUCT Substantive Rule 25.202 or its successor in function. 10.5 If any portion of an invoice is in dispute, the disputed amount shall be paid by the disputing Party into an interest bearing account at a rate in accordance with PUCT Substantive Rule 25.202 or its successor in function until the dispute is resolved according to the reasonable satisfaction of both Parties. Within thirty (30) days of the payment of a disputed invoice, the disputing Party will give the other Party written notice of its dispute with the facts supporting the dispute. Each Party shall act in good faith to promptly resolve any such dispute. Adjustments in payments will be made as mutually agreed to by the Parties. Each Party agrees to make available to the other Party such system data as may be necessary to determine any factors for billing under the terms and conditions of this Agreement. The disputing Party shall remain obligated to pay any portion of an invoice not in dispute. 10.6 Neither Party shall hav8 the right to initiate a challenge of any invoice rendered hereunder in a court of law or equity, arbitration, administrative proceeding, tribunal, or any other authority after a period of twenty-four (24) months from the date such invoice was first rendered. Brazos/Sanger Interconnection ARTICLE ll. MISCELLANEOUS PROVISIONS 11.1 All present or future federal, state, municipal, or other lawful taxes (other than federal income taxes, except where such federal income tax is applicable to a contribution in aid of construction) applicable by reason of any service performed by City for Brazos Electric, or any compensation paid to City by Brazos Electric, hereunder must be paid by Brazos Electric. City is a tax-exempt entity and will provide its tax exemption number. Brazos Electric shall be responsible for all property taxes assessed on facilities that such Party owns. 11.2 The descriptive headings of the various articles and sections of this Agreement have been inserted for convenience of reference only and are to be afforded no significance in the interpretation or construction of this Agreement. 11.3 Facsimile copies of operational correspondence, other than notices required hereunder, including signatures thereon shall constitute original copies thereof and shall be as binding on the Parties hereto as the original. 11.4 This Agreement may be executed in two or more counterparts, each of which is deemed an original but all constitute one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their respective duly authorized representatives. Brazos Electric Power Cooperative, Inc. By: Clifton B. Karnei Title: Executive Vice President & General Manager Date: Pnge 10 City of Sanger By: Deleted: Jnck smith --� Mike Brice , Title: City Date: Deleted: Administrate Braws/Sanger Interconnection Brazos Electric / City Interconnection Agreement Exhibit A Facility Schedule Number Point of Interconnection Voltage KV Effective Service Date Minimum Monthly Demand Service to be Provided Service Provider 1 Sanger North Substation 112 7/1/1997 145000 KW Distribution Substation Service Brazos Electric 2 3 4 5 6 7 8 9 10 * Where applicable, the Minimum Monthly Demand will be used in a� associated rates or tariffs to calculate charges, Page I1 0 Brazos Electric / City Interconnection Agreement Facility Schedule No. 1 for Sanger North 1. Name. Sanger North 13.2KV Points) of Interconnection 2. Location: This unidirectional Point(s) of Interconnection will be in Brazos Electric's Sanger North Substation ("Delivery Substation") where the City's 13.2KV distribution lines contact Brazos Electric's dead-end insulator assembly on Brazos Electric's distribution structures in the Delivery Substation. The Delivery Substation is located west of the intersection of Interstate Highway I-35 and FM Road 455 in the City of Sanger in Denton County, Texas, and under and adjacent to Brazos Electric's existing 138KV transmission line between Rector Road and Spring Substation (reference attached vicinity map drawing 697S Sheet GIk) 3. Delivery Voltaee: 13.2KV (unidirectional) 4. MeterinE: All metering equipment provided herein will be in accordance with the applicable requirements of the ERCOT Operating Guides and ERCOT Protocols, or its successor in function. Metering equipment will be located on the low -side of the Delivery Substation and compensated for losses to the high -side terminals of the main transformer. 5. Normally closed (check onel: _X_ Yes / No 6. One line diauram attached (check onel: X_ Yes / _ No (Drawing 697R sheet FS) 7. Facilities to be furnished and owned by City: (a) Load feeder distribution lines and termination of same distribution lines on Brazos Electric's structures in the Delivery Substation. (b) Rights -of -way for distribution lines owned by the City. 8. Facilities to be furnished and owned by Brazos Electric$ (a) Dead-end 138KV structures in Delivery Substation to terminate Brazos Electric's Rector Road to Spring 138KV transmission line. (b) One three-phase 138KV line drop loop splitting disconnect switch mounted on or near dead-end structures in the Delivery Substation. (c) Two tbree-phase 138KV line disconnect switches mounted on or near the dead-end structures in the Delivery Substation. (d) One 138KV circuit-switcher on the high -side of the main transformer in the Delivery Substation (e) One high speed single-phase ground switch connected on the source side of the 138KV circuit-switcher. (f) Three 138KV lightning arresters mounted between the circuit-switcher and main transformer in the Delivery Substation (g) Delivery Substation main transformer (13843.2KV) with regulation and associated protective relaying. (h) Low -side bus work with 13.2KV distribution bays including breakers at the Delivery Substation (i) All hardware, bus work, distribution arresters, conduit, cable, grounding, foundations, earthwork, and fencing for the Delivery Substation. (j) Property to accommodate the Delivery Substation facilities. Page 12 Brazos/Sanger Interconnection (k) Three potential and three current metering accuracy instrument transformers connected to the low -side bus of the Delivery Substation. (1) Metering Equipment and SCADA equipment at the Delivery Substation with communication facilities for SCADA to Brazos Electric's System Control Center in Waco, Texas. 9. Operation and Maintenance: Each Party will be responsible for the operation and maintenance of the facilities it owns at this Point of Interconnection and in accordance with the other terms and conditions stated in this Agreement except for the Operational Control of the distribution breakers 10. 11. located un the Delivem Substation that connect electrically to the Ciiv's load distribution feeders. Operational Control of these devices shall be the responsibilih* of the City. Maintenance of these devices shall be performed by Brazos Electric...,The City shall have access into the Delivery Substation for the purpose of operating facilities in accordance with this Facility Schedule. The Delivery Substation control house and the gate to the Delivery Substation will be double -locked wide the locks of bosh Parties. Cost Responsibility: Each Party will be fully responsible for the liabilities related to the facilities it owns. Each Party Avill be responsible for all costs it incurs in connection with the establislunent of this Point of Intercotmection, Supplemental terms and conditions: (a) When this Agreement was executed, the City was purchasing from Brazos Electric wholesale electric service, including capacity, energy, transmission, distribution and ancillary services, pursuant to the Wholesale Power Supply Contract between Brazos Electric and the City. This Agreement will supersede that portion of the Wholesale Power Supply Contract between Brazos Electric and the City related to interconnected electrical facilities for delivery points. (b) Brazos Electric will provide, and City will pay for, distnbution substation service for this Point of Interconnection. This service consist of Brazos Electric providing transformation of electric power and energy from one of Brazos Electric's standard transmission voltages (60 KV or higher) to one of Brazos Electric's standard voltages below 60 KV including substation distribution bays. This service is provided, and the charges for this service is determined, in accordance with Brazos Electric's Wholesale Distribution Service Tariff (Rate WDS) or its successor (together with all riders applicable thereto), as it may from time to time be changed by Brazos Electric's Board of Directors or governing body. The Contract Demand for this Point of Interconnection is specified in Exhibit A of this Agreement Page 13 Deleted: Since this Point of Interwnnection is delivered at 13.2KV, the City will be responsible for costs associated with Distribution Substation Service as stated in Section 5.3 of this agreement. Brazo&/Sanger Interconnection i TO KRUM DIRECT[ONS: —%+` �1 FROM THE INTERSECTION OF I35 AND FM ROAD 455P 00 WEST APPROXIMATELY �/4 MILE. THE SUBSTATION IS 700 FEET NORTH Scole: _ OF FM 4554 USE THE ACCESS ROAD ALONG Date: __ THE TRANSMISSION LINE RIGHT-OF-WAY TO Dro.,r:: _ DRIVE TO THE SITE. Checked:_ ArProved: TO DENTON ANGER NORTH SUBSTATION VICINITY MAP OENTON COUNTY,TEXAS _DgWo.: = 6975 ' axy k i3 N— ;9n v m � rua to 3«x 13a a� s�oales S.1rHu� ' SY H J41 . ( s raeN;iw✓3H � I Tp�k�F Ot3TNQJIIDH 8+13 ' kA. r TO CITT CP CANCER TTV UT, tr EMM I WAM m,Pn lh'ork OrderlJob �o.� .�BRAZOS Ic ATIVE I�J.IITQiIIdT3I BANGER NORTH SUBSTATION CITY OF SANGER INTERCONNECTION SINGLE LINE DIAGRAM Saralee Hunt Un•g. Nos Cote: 17/10/147 prnwn! sG 697R Chockod: Ppprovod! F$ PI-lnt! Shoot No.: Page 15 COUNCIL AGENDA ITEM AGENDA TYPE ❑ Regular ❑ Special ❑ Consent Reviewed by Finance ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal ❑ Yes ❑ Not Applicable ❑ Yes ❑ Not Applicable Council Meeting Date: July 21, 2008 Submitted By: Mike Brice City Manager Reviewed/Approval Initials �'-- Date ACTION REQUESTED: ❑ORDINANCE # ❑ RESOLUTION ❑ APPROVAL ❑ CHANGE ORDER Q AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ REAPPOINTMENTS AGENDA CAPTION Approve Lease Amendment with AT&T Mobility. MONINI FINANCIAL SUMMARY ❑N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CI P ❑BUDGETED ❑NON -BUDGETED FISCAL YEAR: PRIOR YEAR CURRENT YEAR FUTURE YEARS TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility ❑ $ Special ❑ $ BACKGROUND/SUMMARY OF ITEM STAFF OPTIONS & RECOMMENDATION Recommend approval. List of Supporting Documents/Exhibits Attached: Memo Prior Action/Review by Council, Boards, Commissions or Other Agencies: ,A %: Mayor and Council __----- From: Mike Brice, City Manager Date: 7/15/2008 Re: AT&T lease AT&T Mobility would like to amend the lease on the Acker water tower to install new equipment As part of the negotiation on this amendment AT&T has settled a back rent dispute with us and paid us over $47,000 in back rent. They have also acknowledged that the current rent is $1035 per month. The new equipment is required to meet Federal E911 standards. Staff recommends approval of the amendment. Thank You for Your consideration of this Matter. 1 JUL-15-2008 07146A FROM:CRAFTON COMMUNICATIO 9729109002 T0:194045e4leo P.2 Cell Site No. DX3308/FA# 10078026 Market: Central Region/North Texas Address: 303 N. Acker, Sanger, Texas SECOND AMENDMENT TO LEASE AGREEMENT THIS SECOND AMENDMENT TO LEASE AGREEMENT ("Amendment"), dated as of the latter of the signature dates below, is by and between The City of Sanger, a Texas municipality, having a mailing address of 201 Bolivar, Sanger, Texas 76266 (hereinafter referred to as "Landlord") and AT&T Mobility Texas LLC, a Delaware limited liability company, successor to Metroplex Telephone Company, a Texas general partnership, d/b/a AT&T Wireless Services, having a mailing address of 5405 Windward Parkway, Alpharetta, GA 30004 (hereinafter referred to as "Tenant"). WHEREAS, Landlord and Tenant entered into an Option to Lease and Water Tower Lease Agreement dated January 15, 1998; First Amendment to Lease Agreement dated June 24, 1999, whereby Landlord leased to Tenant certain Premises, therein described, that are a portion of the Property located at 303 N. Acker, Sanger, Texas (collectively the "Lease"); and WHEREAS, Landlord and Tenant desire to amend the Lease to (1) allow for the removal of existing antennas and installation of new antennas and necessary related equipment; and (2) amend the Lease to extend the term of the Lease. WHEREAS, Landlord and Tenant desire to amend the Lease to modify the notice section thereof; and WHEREAS, Landlord and Tenant desire to amend the Lease to permit Tenant to add, modify and/or replace equipment in order to be in compliance with any current or future federal, state or local mandated application, including but not limited to emergency 911 communication services; and WHEREAS, Landlord and Tenant, in their mutual interest, wish to amend the Lease as set forth below accordingly. NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows. 1. Equipment. Landlord consents to the removal of the twelve (12) existing antennas and the installation of six (6) EMS antennas, model MB72RR80VDPALQ/-R, reserving the right to six (6) additional like antennas in the future (any additional antennas will require amendment to the Lease); six (6) additional Ericsson amplifiers, 1 2005 Form Amendment JUL-15-2008 07:47A FROM:CRAFTON COMMUNICATIO 9729109002 T0:194045841eo P.3 model KRY 112 75/1; and, associated cables and equipment on the Landlord's water tower located at 303 N. Acker to facilitate Tenant's transmission of communications. 2. In addition to the Renewal Terms presently set forth in the Lease, the Agreement will automatically renew for two (2) separate consecutive additional periods of five years each upon the same terms and conditions of the Lease, unless Tenant notifies Landlord in writing of Tenant's intention not to renew the Lease at least sixty (60) days prior to the expiration of the existing term 3. Notices. Section 14. of the Lease is hereby deleted in its entirety and replaced with the following. NOTICES. All notices, requests, demands and communications hereunder will be given by first class certified or registered mail, return receipt requested, or by a nationally recognized overnight courier, postage prepaid, to be effective when properly sent and received, refused or returned undelivered. Notices will be addressed to the parties as followss if to Tenant: AT&T Mobility Texas LLC (for certified mail) Attn: Network Real Estate Administration Re: Cell Site #DA3308; Cell Site Name: Sanger; Fixed Asset #. 10078026 PO Box 1630, Alpharetta, GA 30009 AT&T Mobility Texas i:,l:C (for overnight mail) Attn: Network Real Estate Administration Re: Cell Site #DA3308; Cell Site Name: Sanger; Fixed Asset #. 10078026 12555 Cingular Way, Alpharetta, GA 30004 if to Landlord: City of Sanger PO Box 17293 Sanger, Texas 76266 Either party hereto may change the place for the giving of notice to it by thirty (30) days prior written notice to the other as provided herein. 4. Landlord and Tenant agree that the current monthly rent is $1,035.00. 5. Emergency 911 Service. In the future, without the payment of additional rent and at a location mutually acceptable to Landlord and Tenant, Landlord agrees that Tenant may add, modify and/or replace equipment in order to be in compliance with any current or future federal, state or local mandated application, including but not limited to emergency 911 communication services. 6. Other Terms and Conditions Remain. In the event of any inconsistencies between the Lease and this Amendment, the terms of this Amendment shall control. Except as expressly set forth in this Amendment, the Lease otherwise is unmodified and 2 2005 Form Amendment JUL-15-2008 07047A FROM:CRAFTON COMMUNICATIO 9729109002 T0:19404584180 P.4 remains in full force and effect. Each reference in the Lease to itself shall be deemed also to refer to this Amendment. 7. Capitalized Terms. All capitalized terms used but not defined herein shall have the same meanings as defined in the Agreement. iN WITNESS WHEREOF, the parties have caused their properly authorized representatives to execute and seal this Amendment on the dates set forth below. LANDLORD: City of Sanger By: Name. Title: Date: TENANT: AT&T Mobility Texas LLC, a Delaware limited liability company, by AT&T Mobility Corporation, its Manager By: Name: Kevin J. Haynes Title: Executive Director, North Texas Network Operations Date: [ACKNOWLEDGEMENTS TO FOLLOW NEXT PAGE) 3 2005 Form Amendmcnt JUL-15-2008 07047R FROM:CRRFTON COMMUNICRTIO 9729109002 T0:19404584180 P.5 [LESSEE ACKNOWLEDGEMENT] STATE OF TEXAS COUNTY OF DALLAS BEFORE ME, the undersigned authority, on this day personally appeared Kevin J. Haynes, Executive Director, North Texas Network Operations of AT&T MOBILITY TEXAS .LC, a Delaware limited liability company, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said AT&T Mobility Texas LLC, and that he executed the same as the act of such Limited Liability Company for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of , 2008. Notary Public in and for the State of Texas My Commission .Expires LESSOR ACKNOWLEDGEMENT STATE OF TEXAS COUNTY OF DENTON BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas , on this day personally appeared ,known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed the same for and as the act of the CITY OF SANGER, TEXAS, a municipality, of the State of Texas, Denton County, Texas, and as the thereof, and for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY 1�AND AND SEAL OF OFFICE, this day of 2008. Notary Public in and for the Stale of Texas My Commission Expires 4 2005 Form Amendment eh To: Mayor and Council From: Mike Brice, City Manager Date: 7/15/2008 Re: Annual Review I wanted to update you on what we have accomplished during the Last year, what we are currently working on, and what is planned for the future. Some of the accomplishments you are already aware of, others are more transparent. During the first six months we focused on internal changes. Over the last six months we have began to focus on external issues such as infrastructure improvements, and quality of life improvements. In the last year there has been a tremendous change in the culture, values and focus of City government. I want to commend all of the employees for their acceptance and support of these changes. Without their support many of the changes would never take effect. I also want to thank all of you for your support as well. In the last year we have: ✓ Hired a Development Services Directorwho is a certified planner. ✓ Restructured the organization and moved street, parks, water and wastewater under a public works director. ✓ Revised the subdivision regulations saving $56,000 in consulting fees. ✓ Acted as general contractor on New City Hall saving around $30,000 to $50,000 in Contractor fees. ✓ Signed interlocal agreement with Denton County for resurfacing Railroad and Utility Road saving approximately $100,000. ✓ Developed a merit pay system that ties raises to performance. ✓ Conducted a comprehensive market analysis of employee pay and established a pay grade schedule internally saving approximately $25,000 in consulting fees. ✓ Assumed Economic Development duties saving over $80,000 in salary and benefits. ✓ Completed a major revision of the budget and budget process to make it more transparent and understandable. ✓ Implemented an Employee Assistance Program. 0 ✓ Implemented the FUELMAN program for better accountability and internal control. ✓ Implemented the CODE RED alert system. ✓ Negotiated a development agreement with Tomlin Investments. ✓ Revised and updated the Personnel Manual. ✓ Split Streets and Parks Departments without adding employees. ✓ Moved one underutilized secretary from Public Works to fill a critical need at the Police Department. ✓ Hired a full time inspector to speed up inspections and increase enforcement. ✓ Implemented a new purchasing procedure for better tracking and accountability. ✓ Implemented a new policy on utility bill extensions and late fee waivers to ensure consistency. ✓ Implemented a new travel and training policy establishing better internal controls. ✓ Revised numerous internal processes to provide tighter internal controls and more transparency to the public. ✓ Taken a close look at expenditures and eliminated some unneeded expenditures. ✓ Enhanced leadership training for both current and new supervisors. ✓ Revised and updated several ordinances. Ongoing: ✓ Construction of new city facilities. ✓ Revision of the zoning ordinance. ✓ Negotiations with developers on industrial and commercial prospects. ✓ Construction and operation of a new wastewater plant. ✓ Various construction projects. ✓ Implementation of written administrative procedures for clarity and consistency of operations. ✓ Training and development of supervisory personnel. What's Next: ✓ A comprehensive parks plan. ✓ A study of the need for infrastructure impact fees for water, wastewater, roads and drainage. ✓ Construction of new utility infrastructure. ✓ A review of current utility rates. ✓ Develop a Strategic Plan to map out priorities for the next 3-5 years. I appreciate the opportunity you have given me as well as your ongoing support. I believe we are off to a good start and that we have accomplished a great deal in the fast year. We are on track to accomplish even more in the future. I believe that Sanger has a very bright future and I am proud to be a part of that future. I have enclosed a review form for you to fill out on my performance over the last year. Please provide me with an honest appraisal and feedback on how I can improve. I know this is difficult to do at times but I cannot improve if I do not know where I am not meeting your expectations. I think you all know me well enough to know you are not going to hurt my feelings and that I will not take anything you say personally. Thanks in advance for your feedback. • Page 2 EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SANGER AND MICHAEL BRICE FOR THE POSITION OF CITY MANAGER STATE OF TEXAS COUNTY OF DENTON CITY OF SANGER KNOW ALL PERSONS BY THESE PRESENTS: THIS AGREEMENT is made and entered into this 21S` day July 2008, by and between the City of Sanger, Texas, a home rule municipal corporation, hereinafter called "Employer" and Michael Brice, hereinafter called "Employee" both of whom understand as follows: WHEREAS, Employer desires to employ the services of said Michael Brice as City Manager of the City of Sanger, as provided by Article IV, Section 4.01 of the City Charter, and WJFIEREAS, it is the desire of the governing body, hereinafter called "City Council" to provide certain benefits to establish certain conditions of employment and to set working conditions of said Employee; and WHEREAS, Employee desires employment as City Manager of said City of Sanger; and WHEREAS, the parties acknowledge that Employee is, or will become a member of the International City/County Management Association (ICIVIA), and the Texas City Management Association (TCMA) and that Employee is subject to the Code of Ethics of these organizations. NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: Section 1 -Duties Employer hereby agrees to employ said Michael Brice as Employee of said Employer to perform the functions and duties specified in said Article IV, Section 4.01 for City manager of the Sanger City Charter and applicable provisions of the City Code and to perform other legally permissable and proper duties and functions as the City Council shall from time to time assign. Section 2 -Term A. Employee agrees to remain in the exclusive employ of Employer during the term of this agreement, and agrees not to become employed by any other employer until said termination as hereinafter provided, except as provided in Section 9 of this agreement. B. In the event written notice is not given by either party to this agreement to the other thirty (30) days prior to the termination as hereinafter provided, this agreement shall be extended on the same terms and conditions as herein provided, annually, without further action. C. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the City Council to terminate the services of Employee at any time, subject only to the provisions set forth in Section 3 of this agreement. D. Nothing in this agreement shall prevent, limit or otherwise interfere with the right %J the Employee to resign at any time from this position with Employer, subject only to the provisions set forth in Section 4 of this agreement. Section 3 -Termination and Relocation Expenses A. In the event Employee is terminated by the City Council during the term of this agreement and during such time that Employee is willing and able to perform the duties under this agreement, then in that event Employer agrees to pay Employee a lump sum cash payment equal to 180 days of his then aggregate salary and benefits as compensation for the expense of his relocation described as Follows: Employee shall also be compensated for earned sick leave, vacation, holidays and other accrued benefits to date, pursuant to the City of Sanger employee manual. In the event Employee is terminated because of conviction of a felony or crime of moral turpitude, then, in that event, Employer shall be obligated to pay for all accrued benefits herein above described, but shall only be obligated to pay salary up to and including the date of termination. B. In the event Employer at any time during the term of this agreement reduces the salary, compensation, or other financial benefits of Employee in a greater percentage than an applicable across-the-board reduction of all employees of Employer, or in the event Employer refuses, following written notice, to comply with any other provisions benefitting Employee herein, or the Employee resigns following a suggestion, whether formal or informal, by the City Council that he resigns, or the Employer declines to renew the Employee's contract then, in that event Employee may, at his option, be deemed "terminated" at the date of such reduction or such refusal to comply within the meaning and context of the herein relocation expense provision. Section 4 -Resignation In the event Employee voluntarily resigns his position with Employer during the term of this agreement, then Employee shall give Employer 30 days notice in advance, unless the parties agree otherwise in writing. In this event, the relocation expense provisions of Section 3 will not apply. Section 5 -Disability If Employee is permanently disabled or otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity or health for a period of four successive weeks beyond any accrued sick leave and leave available under the Family Medical Leave Act, if any, Employer shall have the option to terminate this agreement, subject to the relocation expense requirements of Section 3, Paragraph A. Section 6 - Salary Employer agrees to pay Employee for his services rendered pursuant hereto, an annual base salary of $95,400.00 payable in installments at the same time as other managerial employees of the Employer are paid. In addition, Employer agrees to increase said base salary and/or benefits of Employee in such amounts and to such extent as the City Council may determine that is desirable to do so on the basis of annual salary review as a part of the annual performance evaluation process and at any other time the City Council deems appropriate. Section 7 -Performance Evaluation A. The City Council shall review and evaluate the performance of the Employee following the sixth month of employment and at least once annually thereafter. Such review and evaluation shall be in accordance with specific criteria developed jointly by Employer and Employee, and in accordance to the provisions of the Sanger City Code and Personnel Policies. Said criteria may be added to or deleted from as the City Council from time to time determine, in consultation with the Employee. Further, the Mayor of the City of Sanger shall provide the employee with a summary written statement of the findings of the City Council and provide an adequate opportunity for the Employee to discuss his evaluation with the City Council. B. Annually, the City Council and Employee shall define such goals and performance obj ectives that they determine necessary for the proper operation of the City of Sanger and in the attainment of the City Council's policy objectives and shall further establish a relative priority among those generally be attainable within the time limitations as specified and the annual operating and capital budgets and appropriations provided. C. In effecting the provisions of this section, the City Council and Employee mutually agree to abide by the provisions of applicable law. Section 8 -Work Hours It is recognized that Employee must devote a great deal of time outside the normal office hours to the business of the Employer, and to that end, Employee will be allowed to take time off as he shall deem appropriate during said normal office hours. Section 9 -Outside Activities Employee shall not spend more than 10 hours per week in teaching, consulting or other non Employer connected business without the prior approval of the City Council. Employee's outside activities shall not interfere or conflict with any duties or responsibilities required under this agreement including the number of hours. Section 10 -Automobile and Cell Phone Expenses Employee's duties will require that he uses his personally owned vehicle for Employer business. Employer has recognized this by agreeing to pay to Employee $500.00 per month to reimburse Employee for the business use of his vehicle. Employee shall be responsible for paying for liability, property damage, comprehensive insurance and for the purchase, operation, maintenance, repair and regular replacement of said automobile. Employer will also reimburse Employee for business use of his personal cell phone by paying $50.00 per month to Employee. Section 11- Vacation, Sick and Military Leave A. Employee shall accrue and have credited to his personal account, vacation and sick leave at the same rate as other general employees of the Employer. Said vacation and sick leave shall be subject to provisions as outlined in Section 3 of this agreement, upon termination of Employee. In addition, if Employee voluntarily resigns as described in Section 4 of this agreement, Employer agrees to compensate Employee for all accrued vacation and sick leave up to and including the final date of employment. Employer agrees to credit Employee with 60 hours of vacation leave at time of employment. B. Employee shall be entitled to military reserve pursuant to Federal or State law and City of Sanger policies. Section 12 -Health and Life Insurance Employer agrees to provide hospitalization, surgical and comprehensive medical insurance and life insurance for the Employee equal to that provided to all other employees of the City and to pay the premiums thereon on the same basis as for other employees of the Employer. Section 13 -Retirement Employer shall provide and pay for Employee's participation in the retirement plan of the Texas Municipal Retirement System in a manner and rate consistent with all other employees of the City of Sanger. In addition, Employer shall agree to execute all necessary agreements provided by ICMA for Employer's continued participation in said ICMA deferred compensation plan and to transfer ownership to succeeding employers upon Employee's resignation or termination. Section 14 -Dues and Subscriptions Employer agrees to budget and pay for professional dues and subscriptions of Employee necessary for his continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for his continued professional participation, growth and advancement and for the good of the Employer. Said dues and subscriptions shall include but not be limited to, Texas City Management Association, International City/County Management Association and their regional and local affiliate organizations. Section 15 -Professional Development A. Employer hereby agrees to budget for and to pay for travel and subsistence expenses of Employee for professional and official travel, meetings and occasions adequate to continue professional development of Employee and to adequately pursue necessary official functions for Employer, including but not limited to the TCMA annual conference, the National League of Cities, the Texas Municipal League and such other national, regional, state and local government groups and committees thereof which the Employee serves as a member. Participation in said professional development activities shall be considered a part of the Employee's work related duties and Employee shall not be required to use accrued leave for such participation. B. Employer also agrees to budget for and to pay for travel and subsistence expenses of Employee for short courses, institutes and seminars that are necessary for his professional development and for the good of the Employer. Section 16 -Civic IV Employer recognizes the desirability of representation in and before local civic and other organizations, and Employee is authorized to become a member of a local civic club of his choice, for which Employer shall pay all expenses. Employee shall report to the Employer on each membership that he has taken out at an Employer's expense. Section 1'7 -Indemnification To the extent permitted by law, Employer shall defend, save harmless and indemnify Employee against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise arising out of an alleged act or omission occurring in the good faith performance of Employee's duties as Employee, unless arising from Employee's willful misconduct or intentional tort. Employer will compromise and settle any claim or suit and pay the amount of any settlement or judgement rendered thereon, provided however, that any settlement shall be subject to the review and approval by Employee. Section 18 -Bonding Employer shall bear the full cost of any fidelity or other bonds required of the Employee under law or ordinance by virtue of his employment. Section 19 -Residency Employee will be expected to relocate to a place of residence within the corporate limits of Sanger within a reasonable period of time after employment and should continue to reside in the City during his employment with the City. In consideration of the expense associated with this relocation, the City will pay the Employee the amount of $3,000.00 for the costs of moving the Employee's family and personal possessions to Sanger. Section 20 -Other Terms and Conditions of Employment A. The City Council, in consultation with the Employee, shall fix any such other terms and conditions of employment as it may determine from time to time, relating to the performance of Employee, provided such terms and conditions are not inconsistent or in conflict with the provision of this agreement, the Charter, Texas Local Government Code or other applicable law. B. All provisions of the City of Sanger Code of Ordinances, and regulations and rules of the Employer relating to vacation and sick leaves and retirement and pension system contributions, holidays, and other benefits and working conditions as they now exist or hereafter may be amended, shall also apply to Employee as they would to other employees of Employer, in addition to said benefits enumerated specifically for the benefit of Employee except as provided herein. Section 21- Notices Notices pursuant to this agreement shall be given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows: (1) EMPLOYER: (2) EMPLOYEE: Joe Higgs Mayor City of Sanger P.O. Box 1729 Sanger, Texas 76266 Michael Brice 814 N. Tej as Drive Sanger, Texas 76266 Alternatively, notices required pursuant to this agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service. Section 22 -General Provisions A. The text herein shall constitute the entire agreement between the parties and shall supercede all prior written or oral agreements between the parties with respect to the subject matter hereof. B. This agreement shall be binding upon and inure to the benefit of heirs at law and executors of Employee. This agreement is not assignable. C. This agreement shall become effective commencing August 4, 2008. D. If any provision, or any portion thereof, contained in this agreement is held unconstitutional, invalid or unenforceable, the remainder of this agreement, or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect. E. This agreement may only be amended by a written instrument by both parties IN WITNESS WHEREOF, the City of Sanger, Texas, has caused this agreement to be signed and executed in its behalf by it's Mayor, Joe Higgs, and duly attested by it's City Secretary and the Employee has signed and executed this agreement, both in duplicate, the day and year first written above. ATTEST: Rosalie Chavez, City Secretary Joe Higgs, Mayor Michael Brice, Employee AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SANGER AND MICHAEL BRICE FOR THE POSITION OF CITY MANAGER STATE OF TEXAS COUNTY OF DENTON THIS AMENDMENT is made and entered into this 4t'' day February 2008, by and between the City of Sanger, Texas, a home rule municipal corporation, hereinafter called "Employer," and Michael Brice, hereinafter called "Employee," both of whom understand as follows: WITNESSETH: WHEREAS, following an Executive Session held on February 4, 2008, the City Council agreed to amend onl�Section 3 Al as follows: In the event Employee is terminated by the City Council during the term of this agreement and during such time that Employee is willing and able to perform the duties under this agreement, then in that event Employer agrees to pay Employee a lump sum cash payment equal to 180 days of his then aggregate salary and benefits as compensation for the expenses of his relocation, described as follows: Employee shall also be compensated for earned sick leave, vacation, holidays, and other accrued benefits to date, pursuant to the City of Sanger employee manual. In the event Employee is terminated because of conviction of a felony or crime of moral turpitude, then, in that event, Employer shall only be obligated to pay salary up to and including the date of termination. No other amendments have been made to the original contract. This amendment shall become effective on February 4, 2008. 0 Rosalie Chavez City Secretary .. c:i ..,�",t ��°v o' f; l �'y oy � � �{, t. f � Y�`C yi �tr. ,- r � !� � Joe Higgs, M���� Michael Brice EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SANGER AND MICHAEL BRICE FOR THE POSITION OF CITY MANAGER STATE OF TEXAS COUNTY OF DENTON CITY OF BANGER KNOW ALL PERSONS BY THESE PRESENTS: ii j THIS AGREEMENT is made and entered into thi day of V G� / ,�007, by and between the City of Sanger Texas, a home rule municipal corporation, hereinalled "Employer," and Michael Brice, hereinafter called "Employee", both of whom understand as follows: WiTNESSETH: WHEREAS, Employer desires to employ the services of said Michael Brice as City Manager, of $ie City of Sanger, as provided by Article IV Section 4.01 of the City Charter; and WHEREAS, it is the desire of the governing body, hereinafter called "City Council," to provide certain benefits, to establish certain conditions of employment, and to set working conditions of said Employee; and WHEREAS, Employee desires employment as City Manager of said City of Sanger; and WHEREAS, the parties aclmowledge that Employee is, or will become, a member of the International City/County Management Association (ICMA), and the Texas City Management Association (TCMA) and that Employee is subject to the Codes of Ethics of these organizations; NOW TI�REFORE, inconsideration of the mutual covenants herein contained, the parties agree as follows: Section 1: Duties Employer hereby agrees to employ said Michael Brice as Employee of said Employer to perform the fmctions and duties specified in said Article IV Section 4.01 for City Manager of the Sanger City Charter and applicable provisions of the City Code and to perform other legallypermissible and proper duties and functions as the City Council shall from time to time assign. 17919 Section 2: Term A. Employee agrees to remain in the exclusive employ of Employer during the term of this agreement, and agrees not to become employed by any other employer until said termination as hereinafter provided, except as provided in Section 9 of this agreement B. In the event written notice is not given by either party to this agreement to the other thirty (30) days prior to the termination as hereinafter provided, this agreement shall be extended on the same terms and conditions as herein provided, annually, without further action. C. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the City Council to terminate the services of Employee at any time, subject only to the provisions set forth in Section 3 of this agreement. D. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the Employee to resign at any time from this position with Employer, subject only to the provisions set forth in Section 4 of this agreement Section 3: Termination and Relocation Expense A. In the event Employee is terminated by the City Council during the term of this agreement and during such time that Employee is willing and able to perform the duties under this agreement, t; then in that event Employer agrees to pay Employee a lump sum cash payment equal toX days of his then aggregate salary and benefits as compensation for the expense of his relocation, described as follows: Employee shall also be compensated for earned sick leave, vacation, holidays, and other accrued benefits to date, pursuant to the City of Sanger employee manual. In the event Employee is temvnated because of conviction of a felony or crime of moral turpitude, then, in that event, Employer shall only be obligated to pay for all accrued benefits hereinabove described, but shall only be obligated to pay salary up to and including the date of termination. B. In the event Employer at any time during the term of this agreement reduces the salary, compensation, or other financial benefits of Employee in a greater percentage than an applicable across-the-board reduction of all employees of Employer, or in the event Employer refuses, fMowing written notice, to comply with any other provisions benefiting Employee herein, or the Employee resigns following a suggestion, whether formal or informal, by the City Council that he resign, or the employer declines to renew the employees contract then, in that event Employee may, at his option, be deemed to be "terminated" at the date of such reduction or such refusal to comply within the meaning and context of the herein relocation expense provision. Section 4: Resignation In the event Employee voluntarily resigns his position with Employer during the term of this agreement, then Employee shall give Employer 30 days notice in advance, unless the parties agree otherwise in writing. In this event, the relocation expense provisions of Section 3 will not apply. 1'7919 2 Section 5: Disability If Employee is permanently disabled or is otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity or health for a period of four successive weeks beyond any accrued sick leave and leave available under the Family Medical Leave Act, if any, Employer shall have the option to terminate this agreement, subject to the relocation expense requirements of Section 3, Paragraph A Section 6: Salary Employer agrees to pay Employee for his services rendered pursuant hereto, an annual base salary of$9&( payable in installments at the same time as other managerial employees of the Employer are paid. In addition, Employer agrees to increase said base salary and/or benefits of Employee in such amounts and to such extent as the City Council may determine that is desirable to do so on the basis of annual salary review as a part of the annual performance evaluation process and at any other time the City Council deems appropriate. Section 7: Performance Evaluation A. The City Council shall review and evaluate the performance of the Employee following the sixth month of employment and at least once annually thereafter. Such review and evaluation shall be in accordance with specific criteria developed jointly by Employer and Employee, and in accordance to the provisions of the Sanger City Code and Personnel Policies. Said criteria may be added to or deleted from as the City Council may from time to time determine, in consultation with the Employee. Further, the Mayor of the City of Sanger shall provide the employee with a summary written statement of the findings of the City Council and provide an adequate opportunity for the Employee to discuss his evaluation with the City Council. B. Annually, the City Council and Employee shall define such goals and performance objectives that they determine necessary for the proper operation of the City of Sanger and in the attainment of the City Council's policy objectives and shall further establish a relative priority among those various goals and objectives, said goals and objectives to be reduced to writing. They shall generally be attainable within the time limitations as specified and the annual operating and capital budgets and appropriations provided. C. In effecting the provisions of this Section, the City Council and Employee mutually agree to abide by the provisions of applicable law. Section S: Work Hours It is recognized that Employee must devote a great deal of time outside the normal office hours to the business of the Employer, and to that end Employee will be allowed to take time off as he shall deem appropriate during said normal office hours. 17919 3 Deleted: Section 9: Outside Activities Employee shall not spend more than 10 hours per week in teaching, consulting or other non Employer -connected business without the prior approval of the City Council. Employee's outside activities shall not interfere or conflict with any duties or responsibilities required under this agreement including the number of hours. Section 10: Automobile and Cell Phone Expenses 5. � C Employee's dories will require that he use his personally owned vehicle for Employer business. Employer has recognized this by agreeing to pay to Employee $406 per month to reimburse Employee for the business use of his vehicle. Employee shall be responsible for paying for liability, property damage, and comprehensive insurance, and for the purchase, operation, maintenance, repair, and regular replacement of said automobile. Employer will also reimburse Employee for business use of his personal cell phone by paying $,3Sper month to Employee. Section 11: Vacation, Sick, and Military Leave Q A Employee shall accrue and have credited to his personal account, vacation and sick leave at the same rate as other general employees of the Employer. Said vacation and sick leave shall be subject to provisions as outlined in Section 3 of this agreement, upon termination of Employee. In addition, if Employee voluntarily resigns as described in Section 4 of this agreement, Employer agrees to compensate employee for all accrued vacation and sick leave up to and including the final date of employment. Employer agrees to credit Employee with 60 hours of vacation leave at time of employment. B. Employee shall be entitled to military reserve leave pursuant to Federal or State law and City of Sanger policies. Section 12: Health, and Life Insurance Employer agrees to provide hospitalization, surgical, and comprehensive medical insurance and life insurance for Employee equal to that provided all other employees of the City, and to pay the premiums thereon on the same basis as for other employees of Employer. Section 13: Retirement Employer shall provide and pay for Employee's participation in the retirement plan of the Texas Municipal Retirement System in a manner and rate consistent with all other employees of the City of Sanger. In addition, Employer shall agree to execute all necessary agreements provided by ICMA for Employer's continued participation in said ICMA deferred compensation plan and to transfer ownership to succeeding employers upon Employee's resignation or termination, 17919 4 Section 14: Dues and Subscriptions Employer agrees w budget and to pay for professional dues and subscriptions of Employee necessary for his continuation and full participation in national, regional, state, and local associations and organizations necessary and desirable for his continued professional participation, growth, and advancement, and for the good of the Employer. Said dues and subscriptions shall include, but not be limited to, Texas City Management Association, International City/County Management Association, and their regional and local affiliate organizations. Section 15: Professional Development A. Employer hereby agree to budget for and to pay for travel and subsistence expenses of Employee for professional and official travel, meetings, and occasions adequate to continue professional development of Employee and to adequately pursue necessary official functions for Employer, including but not limited to the TCMA Annual Conference, the National League of Cities, the Texas Municipal League, and such other national, regional, state, and local government groups and committees thereof which the Employee serves as a member. Participation in said professional development activities shall be considered a part of the Employee's work related duties and Employee shall not be required to use accrued leave for such participation B. Employer also agrees to budget for and to pay for travel and subsistence expenses of Employee for short courses, institutes, and seminars that are necessary for his professional development and for the good of the Employer. Section 16: Civic Club Membership Employer recognizes the desirability of representation in and before local civic and other organizations, and Employee is authorized to become a member of a local civic club of his choice, for which Employer shall pay all expenses. Employee shall report to the Employer on each membership that he has taken out at Employer's expense. Section 17: Indemnification To the ea -tent permitted by law, Employer shall defend, save harniless, and indemnify Employee against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the good faith performance of Employee's duties as Employee, unless arising from Employee's willful misconduct or intentional tort. Employer will compromise and settle any claim or suit and pay the amount of any settlement or judgement rendered thereon, provided however, that any settlement shall be subject to the review and approval by Employee. Section 18: Bonding Employer shall bear the full cost of any fidelity or other bonds required of the Employee under law or ordinance by virtue of his employment. 17919 Section 19: Residency Employee will be expected to relocate to a place of residence within the corporate limits of Sanger within a reasonable period of time after employment and should continue to reside in the City during his employment with the City. In consideration of the expense associated with this relocation, the City will pay the Employeelhe amount of $3000.00 for theposts of moving the Employee's family and personal possessions to Sanger. Section 20: Other Terms and Conditions of Employment Deleted: up b Deleted: direct Deleted: Employee will provide detailed receipts to document this reimbursement. A. The City Council, in consultation with.the Employee, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of Employee, provided such terms and conditions are not inconsistent or in conflict with the provision of this agreement, the Charter, the Texas Local Government Code or other applicable (Deleted:, the law. B. All provisions of the City of Sanger Code of Ordinances, and regulations and rules of the Employer relating to vacation and sick leave, retirement and pension system contributions, holidays, and other benefits and working conditions as they now exist or hereafter may be amended, shall also apply to Employee as they would to other employees of Employer, in addition to said benefits enumerated specifically for the benefit of Employee except as provided herein. Section 21: Notices Notices pursuant to this agreement shall be given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows: (1) EMPLOYER: Joe Higgs Mayor City of Sanger 201 Bolivar St. Sanger, Texas 76266 (2) EMPLOYEE: Michael Brice Home address (Employee will notify the Mayor � I q � in writing of official address) Alternatively, notices required pursuant to this agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service, Section 22: General Provisions A. The text herein shall constitute the entire agreement between the parties and shall supersede ali prior written or oral agreements between the parties with respect to the subject matter hereof. 17919 6 B. This agreement shall be binding upon and inure to the benefit of heirs at law and executors of Employee. This agreement is not assignable. C. This agreement all become effective commencing u st 6.2007. Deleted: D. If any provision, or any portion thereof, contained in this agreement is held unconstitutional, invalid or unenforceable, the remainder of this agreement, or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect. E. This agreement may only be amended by a written instrument executed by both parties. N WITNESS WHEREOF, the City of Sanger, Texas, has caused this agreement to be signed and executed in its behalf by its Mayor, Joe Higgs, and duly attested to by its City Secretary, and the Employee has signed and executed this agreement, both in duplicate, the day and year first written above. i e -- Vlayor n Michael Brice - Employee 17919 7 7-14-2008 04:55 PM 001-GENERAL FUND REVENUE SUMMARY C ITY OF SANGER FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 CURRENT BUDGET CURRENT PERIOD ACTUAL BUDGET CHARGES FOR SERVICES 33,600.00 3,345.00 25,647.13 76.33 SOLID WASTE 0.00 0.00 0.00 0.00 SWIMMING POOL 7,500.00 51285.96 51238.98 69.85 TAXES, PENALTIES & INTERE 2,150,000.00 261233.20 2,104,555.60 97.89 HOTEL TAX 141000.00 0.00 10,518.29 75.13 STATE SALES TAX 510,000.00 38,677.46 370r253.95 72.60 MIXED DRINK TAX 21000.00 0.00 2,940.24 147.01 BUILDING PERMITS 100,000000 81720.00 561521.00 56.52 HEALTH PERMITS 22,575.00 0.00 14,790.00 65.51 LICENSES 3,000.00 400.00 21195.00 73.17 MUNICIPAL COURT 152,570.00 21,303.58 122,984.82 80.61 FRANCHISE FEES 299,000.00 92,662.07 257,110.70 85.99 LIBRARY 251869.00 504.63 38,989.45 150.72 FIRE 435,000.00 33,610.40 216,283988 49.72 INTEREST 38,000.00 13,442.91 119,651.28 314.87 SANITATION TRANSFERS 4981000.00 48,043.71 418,271.93 83.99 CARRY OVER BOND FUNDS 3,988,333.00 0.00 552,438.61 13.85 MISCELLANEOUS 1381800.00 41683.78 140,165.83 100.98 BUr �T TRANSFER 274,557.00 0.00 175,307.00 63.85 *** TOTAL REVENUES *** 8,692,804.00 296,912.70 4,633,863.69 53.31 EXPENDITURE SUMMARY 00-GRANT & SAVINGS EXP. 0.00 19,030.00 23,663.34 0.00 Ol-CIP BOND EXPENSES 3,988,333.00 23,002.82 553,245.80 13.87 10-MAYOR AND COUNCIL 53,149.00 109.89 61,899.20 116.46 15-ADMINISTRATION 222,383.00 131786.31 145,333.17 65.42 18-ENGINEERING 97,780.00 71395.05 69,673.80 72.22 20-POLICE 8591712.00 102,951.78 702,984.72 81.93 22-ANIMAL CONTROL 681192.00 4,256.03 42,557.30 62.41 24-FIRE 334,426.00 21,125.57 262,927.43 79.84 25-AMBULANCE 222,045.00 18,676.83 2011197.60 90.63 26-MUNICIPAL COURT 142,906.00 14,226.78 107,089.96 75.32 27-CUSTODIAL 16,543.00 11389.87 11,356.46 68.65 28-ENFORCEMENT/INSPECTION 185,835.00 11,587.76 123,655.36 66.60 30-STREETS 2781703.00 24,574.73 1801609.19 66.75 32-PARKS 442,496.00 37,277.92 294,489.07 67.17 34-POOL 491311.00 10,150.41 16,822.52 34.52 36-FLEET SERVICES 871172.00 16,085.95 63,101.08 75.29 40-SULLIVAN CENTER 81350.00 145.47 6,553.72 78.49 42-T,IBRARY 161,728.00 11,151.39 112,090.23 70.51 7-14-2008 04455 PM 001-GENERAL FUND ----------------------- 44-COMMUNITY CENTER 48-MAIN STREET 46-ECONOMIC DEVELOPMENT 60-TAX SERVICES 62-HEALTH SERVICES 64-AMBULANCE SERVICES 66-SOLID WASTE 70-DEBT SERVICE C ITY OF SANGER FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 CURRENT BUDGET ---------------------------------- 6, 900.00 0.00 183,276.00 21,580.00 81 400. 00 0.00 440,000.00 813,584.00 *** TOTAL EXPENDITURES *** 8,692,804.00 ** REVENUES OVER(UNDER) EXPENDITURES ** 0.00 274,557.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CURRENT Y-T-D o OF PERIOD ACTUAL BUDGET ------------------------------------- 143.21 21223.91 32.23 0.00 0.00 0.00 22.90 68,906.24 37.60 5,092.87 17,732.28 82.17 0.00 8,275.00 98.51 0.00 0.00 0.00 41,115.12 357,156.38 81.17 3,888.11 196,864911 24.20 387,186.77 3,630,407.87 41.99 90,274.07) 1,003,455.82 0.00 0.00 175,307.00 63.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL OTHER FINANCING SOURCES (USES) ( 274,557.00) 0.00 ( 175,307.00) 63.85 7-14-2008 04:55 PM 001-GENERAL FUND RE 7ES ! REVENUES C ITY OF SANGER FINANCIAL STATEMENT AS OF: DUNE 30TH, 2008 CURRENT CURRENT BUDGET --------------------------------------------------- PERIOD ACTUAL BUDGET CHARGES FOR SERVICES 00-4120 COMMUNITY CTR. FEES 6,000.00 00-4130 VARIANCES & PLATS 22,500.00 00-4140 COMMUNITY CENTER DEPOSITS 1/000000 00-4150 DOG POUND FEES 4,100.00 TOTAL CHARGES FOR SERVICES 33,600.00 '' SOLID WASTE 00-4190 SOLID WASTE COLLECTIONS (TRFS) TOTAL SOLID WASTE SWIMMING POOL 00-4210 SWIMMING POOL INCOME rp ''AL SWIMMING POOL TAXES, PENALTIES & INTERE 00-4310 PROPERTY TAX 00-4321 PENALTY & INTEREST TOTAL TAXES, PENALTIES & INTERE HOTEL TAX 00-4410 HOTEL MOTEL TAX TOTAL HOTEL TAX STATE SALES TAX 00-4425 STATE SALES TAX TOTAL STATE SALES TAX 0.00 0.00 7,500.00 7,500.00 2,130,000.00 20,000.00 2,150,000.00 14,000.00 14,000.00 510,000.00 510,000.00 350.00 3,360.00 3,000.00 18,379.63 ( 400.00) 957.50 395.00 2,950.00 3,345.00 25,647.13 0.00 0.00 0.00 0.00 5,285.96 5,238.98 5,285.96 5,238.98 22,390.10 2,078,814.82 3,843.10 25,740.78 26,233.20 2,104,555.60 0.00 0.00 38,677.46 38,677.46 10,518.29 10,518.29 370,253.95 370,253.95 56.00 81.69 95.75 aG 69.85 69.85 97.60 128.70 97.89 72.60 72.60 7-14-2008 04:55 PM 001-GENERAL FUND RE; JES ------------------------------------- MIXED DRINK TAX 00-4450 MIXED DRINK TAX TOTAL MIXED DRINK TAX BUILDING PERMITS 00-4510 BUILDING PERMITS TOTAL BUILDING PERMITS HEALTH PERMITS 00-4520 HEALTH PERMITS TOTAL HEALTH PERMITS LICENSES 00-4530 ELECTRICAL LICENSES 00-4540 PLUMBING LICENSE FEES 00-4545 FIRE ALARM/FIRE SPRINKLER 00- 50 AC & MECHANICAL LICENSE FEES 00 "55 IRRIGATION & BACKFLOW LICENSE TOTAL LICENSES MUNICIPAL COURT 00-4600 DEFAULT/COURT 00-4601 RESTITUTION FEE-LOCAL-RSTL 00-4602 RESTITUTION FEE-STATE-RSTS 00-4603 JUDICIAL FEE-COUNTY-JFCT 00-4604 JUDICIAL FEE -CITY 00-4605 TEEN COURT 00-4606 EXPUNCTION FEE-EXPUNG 00-4607 STATE TRAFFIC FEE 00-4608 CONSOLIDATED COURT COST04 00-4609 STATE JURY FEE-SJRF 00-4610 CONSOLIDATED COURT COSTS 00-4611 CJP - POLICE 00-4612 LEMI COURT COST 00-4613 LEOA COURT COSTS 00-4614 JUVENIL CRIME & DELINQUENCY 00-4615 CHILD SAFETY COURT COST 00-4616 SECURITY FEES 00-4617 INSURANCE & DISMISSAL FEES 00-4619 JCPT 00-d620 DAP DEFERRED ADJUDICATION C ITY OF SANGER FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 CURRENT CURRENT Y-T-D BUDGET PERIOD ACTUAL ------------------------------------------------ 2,000.00 2,000.00 100,000.00 100,000.00 22,575.00 221575.00 0.00 0.00 8,720.00 8,720.00 0.00 0.00 2,940.24 2,940.24 56,521.00 56,5 21.00 14,790.00 14,790.00 1,000.00 100.00 640.00 1,000.00 100.00 810.00 0.00 0.00 100.00 1,000.00 50.00 395.00 0.00 150.00 250.00 3,000.00 400.00 2,195.00 OF BUDGET 147.01 56.52 56.52 h5.51 b5.51 64.00 81.00 0.00 39.50 0.00 73.17 10,000.00 230.00 7,822.00 78.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 587.29 1,224.21 0.00 0.00 66.71 710.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,000.00 2,175.27 2/290994 114.55 4,000.00 41567.97 31458.73 86.47 1/000600 444.79 537.79 53.78 0.00 34.00 ( 34.20) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 68.80 75.78 0.00 1/000900 0.00 71043.74 704.37 11200.00 277.00 11575.32 131.28 2,000.00 80.00 540.00 27.00 0.00 4.00 ( 4.02) 0.00 34,500.00 3,099.00 24,267.91 70.34 7-14-2008 04*55 PM 001-GENERAL FUND RE JES 00-4624 TECHNOLOGY FEE COURT 00-4625 FINES 00-4626 IMPOUND FEES 00-4627 WARRANT FEES - FTA 00-4628 ARREST FEES 00-4630 LEOSE-POLICE 00-4631 FUGITIVE APPRENHENSION 00-4632 TIME PAYMENT FEES 00-4633 CTVOC - POLICE 00-4636 CORR.MANGT.INSTIT.CJCF 00-4637 TRAFFIC CODE 00-4640 DEF.DRIVING. DDC (COURT) 00-4642 CASH BONDS COURT 00-4643 TIME PAYMENT LOCAL 00-4644 SEATBELT SAFETY 00-4645 MUNICIPAL SERVICE BUREAU 00-4646 TIME PAYMENT STATE 00-4647 BEER & WINE PERMIT FEES 00-4648 INDIGENT DEFENSIVE FD. TOTAL MUNICIPAL COURT FFL RISE FEES 00-4650 FRANCHISE 00-4660 FRANCHISE 00-4670 FRANCHISE 00-4680 FRANCHISE 00-4685 FRANCHISE 00-4690 FRANCHISE TOTAL FRANCHISE FEES-ATMOS ENERGY FEES/EMBARG FEES-COSERVE DCEC FEES-CEBRIDGE FEES EF FEE/IESI DUMPSTERS FEES C ITY OF SANGER FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 CURRENT BUDGET CURRENT PERIOD ACTUAL ------------------------------ OF BUDGET 1,500.00 459.73 2,856.50 190.43 73/000000 61511.00 51,256.98 70.22 550.00 0.00 0.00 0.00 71500.00 589.70 81843.80 117.92 61820.00 574.67 41086.87 59.92 0.00 0.00 0.50 0.00 0.00 10.00 ( 10.05) 0.00 0.00 0.00 0.00 0.00 0.00 30.00 ( 30.18) 0.00 0.00 1.00 ( 1.51) 0.00 21600.00 217.80 11391.10 53.50 21000.00 180.00 930.00 46.50 1,200.00 0.00 303.00 25.25 1,700.00 234.08 1,874.61 110.27 0.00 0.00 ( 100.00) 0.00 0.00 417.48 1,146.68 0.00 0.00 234.10 ( 294974) 0.00 0.00 0.00 430.00 0.00 0.00 209.19 793.00 0.00 152,570.00 40,000.00 17,000.00 80,000.00 121000.00 150/000400 0.00 299,000.00 21,303.58 4,616.48 0.00 0.00 0.00 87,090.14 955.45 92,662.07 122,984.82 45,126.95 11,157.97 59,259.94 11,498.42 127,090914 2,977.28 257,110.70 112.82 65.64 74.07 95.82 84.73 O.00 tSS. yy 00-4710 LIBRARY - DENTON CO. INT/LOCAL 17,369.00 0.00 16,000.00 92.12 00-4715 LIBRARY GRANT 0.00 0.00 0.00 0.00 00-4720 MISC. INCOME LIBRARY 8,500.00 504.63 22,989.45 270.46 TOTAL LIBRARY 25,869.00 504.63 38,989.45 150.72 FIRE 00-4740 FIRE-DENTON CO. INT/LOCAL 10,000000 0.00 10,000.00 100.00 00-4750 FIRE RUNS/ REIMB.AMB. DENTON 175,000.00 12,870.00 144,306.54 82.46 00-4760 F.I.R.E. INSURANCE BILLING 0.00 0.00 0.00 0.00 00-4765 FIRE - GRANT FUNDING 0.00 10,500.00 10,500600 0.00 00-4770 INTERMEDIX REVENUE(AMB) 250,000.0O 10,240940 51,477.34 20.59 00-4780 TDHCA STATE GRANT FUNDS" 0.00 0.00 0.00 0.00 TOTAL FIRE 435,000.00 33,610.40 216,283.88 49.72 299,000.00 21,303.58 4,616.48 0.00 0.00 0.00 87,090.14 955.45 92,662.07 122,984.82 45,126.95 11,157.97 59,259.94 11,498.42 127,090914 2,977.28 257,110.70 112.82 65.64 74.07 95.82 84.73 O.00 tSS. yy 00-4710 LIBRARY - DENTON CO. INT/LOCAL 17,369.00 0.00 16,000.00 92.12 00-4715 LIBRARY GRANT 0.00 0.00 0.00 0.00 00-4720 MISC. INCOME LIBRARY 8,500.00 504.63 22,989.45 270.46 TOTAL LIBRARY 25,869.00 504.63 38,989.45 150.72 FIRE 00-4740 FIRE-DENTON CO. INT/LOCAL 10,000000 0.00 10,000.00 100.00 00-4750 FIRE RUNS/ REIMB.AMB. DENTON 175,000.00 12,870.00 144,306.54 82.46 00-4760 F.I.R.E. INSURANCE BILLING 0.00 0.00 0.00 0.00 00-4765 FIRE - GRANT FUNDING 0.00 10,500.00 10,500600 0.00 00-4770 INTERMEDIX REVENUE(AMB) 250,000.0O 10,240940 51,477.34 20.59 00-4780 TDHCA STATE GRANT FUNDS" 0.00 0.00 0.00 0.00 TOTAL FIRE 435,000.00 33,610.40 216,283.88 49.72 7-14-2008 04*55 PM 001-GENERAL FUND RE 'i JES C ITY OF SANGER FINANCIAL STATEMENT AS OF: JUNE 30TH, CURRENT BUDGET CURRENT PERIOD 2008 Y-T-D o OF ACTUAL BUDGET INTEREST 00-4800 INTEREST INC. G.F. 28,000.00 12,685.46 113,934.59 406.91 00-4801 INT. INCOME DEBT SERVICE 10,000.00 757.45 51716.69 57.17 TOTAL INTEREST 38,000.00 13,442.91 119,651.28 314.87 SANITATION TRANSFERS 00-4891 SANITATION TRANSFER FR ENT.FDS 498,000.00 48,043.71 418,271993 83.99 TOTAL SANITATION TRANSFERS 498,000.00 48,043.71 418,271.93 83.99 CARRY OVER BOND FUNDS 00-4901 2006 CARRY OVER BOND FDS 3,500,000.00 0.00 272,994.70 7.80 00-4902 07 CARRY OVER BOND FD. PWKS 488,333.00 0.00 279,443.91 57.22 TOTAL CARRY OVER BOND FUNDS 31988,333.00 0.00 552,438.61 13.85 MISCELLANEOUS 00-4910 MISC. INC. G.F. 20,000.00 31683.78 83,120.69 415.60 00-0111 BEAUTIFICATION BOARD 61800.00 0.00 790.50 11.63 0012 OVER AND UNDER 0.00 0.00 0.00 0.00 00-4913 FEMA DISATER FUNDS 0.00 0.00 9,218.35 0.00 00-4914 TDHCA GRANT FUNDS 0.00 0.00 0.00 0.00 00-4915 TDCA SECTION VII HOUSING ASST. 2,000.00 0.00 11080.00 54.00 00-4920 SANGER ISD/RESOURCE OFFICER 30,000.00 0.00 32,456.29 108.19 00-4930 RETURN CHECK FEES 0.00 0.00 0.00 0.00 00-4940 PARK DONATIONS/GRANT FDS 0.00 1,000.00 1/000000 0.00 00-4950 LOAN PROCEEDS FOR POLICE BLDG 0.00 0.00 0.00 0.00 00-4960 BOND PROCEEDS 0.00 0.00 0.00 0.00 00-4980 DUE FROM ENT. FD PAYROLL 0.00 0.00 0.00 0.00 00-4985 TRANSFERS FROM 4A/4B 80,000900 0.00 12,500.00 15.63 TOTAL MISCELLANEOUS 138,800.00 41683.78 140,165.83 100.98 BUDGET TRANSFER 00-4990 BUDGET TRANSFER FROM ENT FUND 274,557.00 0.00 174,557.00 63.58 00-4991 TRANSFERS FROM MM, SGS. 0.00 0.00 750.00 0.00 TOTAL BUDGET TRANSFER 274,557.00 0.00 175,307.00 63.85 *** TOTAL REVENUES *** 8,692,804.00 2961912.70 41633,863.69 53.31 7-14-2008 04655 PM 001-GENERAL FUND 00-F=RANT & SAVINGS EXP. DE, rMENT EXPENDITURES 50-CHECK CHARGES 00-5000 CHECK CHARGES TOTAL 50-CHECK CHARGES 74-NON DEPARMENTAL 00-7445 SANGER HISTORICAL EXP. 00-7460 GRANT WORKS- (SAFE ROUTE) TOTAL 74-NON DEPARMENTAL 75-GRANT AND SVGS EXPENSE 00-7520 TX DEPT OF TRANSPORTATION 00-7530 PROPERTY PURCHASE/CARLAW 00-7535 AMBULANCE & FIRE TRK EXPENSE 00-7540 GRANT EXPENDITURES 00-7545 EVA BRUCE PROP. TAXES 00-7550 HOME GRANT EXPENDITURES 00- 60 G.F.EQUIP. REPL SVGS EXP. 00 of MISC EXP. TECHONOGY FD 00-7562 HOTEL MOTEL SVGS. ACCT. EXP 00-7565 LIBRARY MM EXPENSES 00-7570 PARK EXPENSES & (GRANT EXP) 00-7585 BEAUTIFICATION BOARD SVGS EXP TOTAL 75-GRANT AND SVGS EXPENSE C I T Y O F S A N G E R FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 CURRENT BUDGET 0.00 0.00 0.00 0.00 0.00 CURRENT PERIOD 0.00 0.00 0.00 0.00 0.00 ACTUAL BUDGET 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 149.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 31733.60 0.00 0.00 0.00 750.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 41633.34 0.00 *** DEPARTMENT TOTAL *** 0.00 0.00 4,633.34 0.00 7-14-2008 04:55 PM 001-GENERAL FUND O1-rIP BOND EXPENSES DE f( PMENT EXPENDITURES C ITY OF SANGER FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 CURRENT CURRENT Y-T-D o OF BUDGET PERIOD ACTUAL BUDGET i 74-NON DEPARMENTAL 01-7460 2006 CIP BOND EXPENSE 01-7470 2007 BOND EXP PWKS FACILITY TOTAL 74-NON DEPARMENTAL *** DEPARTMENT TOTAL *** 3,500,000.00 488,333.00 3,988,333.00 3,988,333.00 0.00 23,002.82 23,002.82 23,002.82 -------------- -------------- 335,949.70 9.60 217,296.10 44.50 553,245.80 13.87 553,245.80 13.87 ---------- ------ ---------- ------ 7-14-2008 04:55 PM C ITY OF SANGER FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 41 -4A CORPORATION i CURRENT CURRENT Y-T-D % OF BUDGET PERIOD ACTUAL BUDGET REVENUE SUMMARY i i 4A REVENUES *** TOTAL REVENUES *** EXPENDITURE SUMMARY 75-4A EXPENSES *** TOTAL EXPENDITURES *** 186.200.00 186,200.00 121,500.00 121,500.00 ** REVENUES OVER(UNDER) EXPENDITURES ** 64,700.00 TOTAL OTHER FINANCING SOURCES (USES) 0.00 0.00 0.00 20,582.71 193,107.52 20,582.71 193,107.52 103.71 10,000409 90,036.49 74.10 10,000.09 90,036.49 74.10 10,582.62 103,071.03 159.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7-14-2008 04:55 PM 41 -4A CORPORATION RE JES C ITY OF SANGER FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 CURRENT CURRENT Y-T-D % OF BUDGET PERIOD ACTUAL BUDGET REVENUES 4A REVENUES 00-4000 LOAN PROCEEDS 0.00 0.00 0.00 0.00 00-4425 STATE SALES TAX 2221000.0O 19,475.99 184,760918 83.23 00-4800 INTEREST INCOME 4,200.00 1,106.72 8,347.34 198.75 00-4940 DONATIONS 0.00 0.00 0.00 0.00 00-4950 PRIOR YEAR INCOME 0.00 0.00 0.00 0.00 00-4985 TRANSFERS OUT FR 4A TO GF ( 40,000.0O) 0.00 0.00 0.00 TOTAL 4A REVENUES 186,200.00 20,582.71 193,107.52 103.71 ' *** TOTAL REVENUES *** 186,200.00 20,582.71 193,107.52 103.71 7-14-2008 04:55 PM C ITY OF SANGER FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 41 -4A CORPORATION 75-4A EXPENSES DE TMENT EXPENDITURES CURRENT CURRENT BUDGET PERIOD ------------------------------------------------------------------------------ 52-SUPPLIES AND MATERIALS 75-5200 CHECK CHARGES 75-5205 FOOD 75-5210 OFFICE SUPPLIES 75-5215 TRAVEL & REGISTRATIONS 75-5220 DUES 75-5225 PUBLICATIONS/SUBSCRIPTIONS 75-5235 DUES & REGISTRATION 75-5240 TRAVEL TOTAL 52-SUPPLIES AND MATERIALS 0.00 0.00 200.00 750.00 250.00 200.00 0.00 0.00 1,400.00 0.00 0.00 0.09 0.00 0.00 0.00 0.00 0.00 0.09 ACTUAL BUDGET ----------------- 0.00 0.00 31.49 0.00 5.00 0.00 0.00 0.00 36.49 0.00 0.00 15.75 0.00 2.00 0.00 0.00 n nn ram 54-CONTRACT SERVICES 75-5410 INSURANCE 100.00 0.00 0.00 0.00 75-5420 CONTRACTUAL SERVICES 0.00 0.00 0.00 0.00 75-5425 LEGAL FEES 0.00 0.00 0.00 0.00 TOTAL 54-CONTRACT SERVICES 100.00 0.00 0.00 0.00 65'JJECTS 75-6500 PROJECTS 0.00 0.00 0.00 0.00 75-6505 LOAN PAYMENTS/20066800 120,000.00 10,000.00 90,000.00 75.00 TOTAL 65-PROJECTS 120,000.00 10,000.00 90,000000 75.00 *** DEPARTMENT TOTAL *** 121,500.00 10,000609 90,036.49 74.10 *** TOTAL EXPENDITURES *** 121,500.00 10,000009 90,036.49 74.10 OTHER FINANCING SOURCES (USES) ------------------------------ TOTAL OTHER FINANCING SOURCES (USES) 0.00 0.00 0.00 0.00 *** END OF REPORT *** 7-14-2008 04455 PM C ITY OF SANGER FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 42 -4B CORPORATION CURRENT CURRENT Y-T-D % OF BUDGET PERIOD ACTUAL BUDGET '' REVENUE SUMMARY 4B REVENUES *** TOTAL REVENUES *** '' EXPENDITURE SUMMARY 76-4B EXPENSES *** TOTAL EXPENDITURES *** 439,399.00 22,592.04 361,418.64 82.25 439,399.00 22,592.04 ---------------------------- 226, 649. 00 226,649.00 -------------- -------------- ** REVENUES OVER(UNDER) EXPENDITURES ** 212,750.00 "! TOTAL OTHER FINANCING SOURCES (USES) 225,399.00 0.00 225,399.00) 29,977.89 29,977.89 ( 7,385.85) 0.00 0.00 0.00 361,418.64 82.25 ---------- ------ ---------- ------ 2151490.58 95.08 215,490.58 95.08 ---------- ------ ---------- ------ 145,928.06 68.59 157,876.84 70.04 0.00 0.00 ( 157,876.84) 70.04 7-14-2008 04:55 PM 42 -4B CORPORATION RE I JES REVENUES 4B REVENUES C ITY OF SANGER FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 CURRENT CURRENT Y-T-D % OF BUDGET --------------------------------------------------------------------------- PERIOD ACTUAL BUDGET 00-4425 STATE SALES TAX 222,000.00 19,338.74 184,622.93 83.16 00-4800 INTEREST INCOME 32,000.00 3,253.30 28,918.87 90.37 00-4940 DONATIONS 0.00 0.00 0.00 0.00 00-4950 TRANSFER PRIOR YEAR INCOME 0.00 0.00 0.00 0.00 00-4985 TRANFERS OUT TO 4B/PARK EXP ( 40,000.00) 0.00 ( 10,000000) 25.00 00-4990 TRANSFERS FROM RESERVES 225,399.00 0.00 157,876.84 70.04 TOTAL 4B REVENUES 439,399.00 22,592.04 361,418.64 82.25 *** TOTAL REVENUES *** 439,399.00 22,592.04 361,418.64 82.25 7-14-2008 04:55 PM 42 -4B CORPORATION 76-49 EXPENSES DE TMENT EXPENDITURES C I T Y O F S A N G E R FINANCIAL STATEMENT AS OF: JUNE 30TH, 2008 CURRENT CURRENT Y-T-D % OF BUDGET -------------------------------------------------------------------------------------------------- PERIOD ACTUAL BUDGET 52-SUPPLIES AND MATERIALS 76-5200 CHECK CHARGES 76-5210 OFFICE SUPPLIES 76-5215 TRAVEL & REGISTRATIONS 76-5220 DUES 76-5225 PUBLICATIONS/SUBSCRIPTIONS 76-5235 DUES & REGISTRATION 76-5240 TRAVEL TOTAL 52-SUPPLIES AND MATERIALS 54-CONTRACT SERVICES 76-5410 INSURANCE 76-5420 CONTRACTUAL SERVICES 76-5450 ENGINEERING FEES TOTAL 54-CONTRACT SERVICES 65- ""OJECTS 76'' JO PROJECTS TOTAL 65-PROJECTS *** DEPARTMENT TOTAL *** *** TOTAL EXPENDITURES *** OTHER FINANCING SOURCES (USES) ------------------------------ 00-4990 TRANSFERS FROM RESERVES TOTAL OTHER FINANCING SOURCES (USES) *** END OF REPORT *** 0.00 0.00 0.00 200.00 0.00 62.80 500.00 0.00 0.00 250.00 0.00 5.00 200.00 0.00 723.49 0.00 0.00 0.00 0.00 0.00 0.00 1,150.00 0.00 791.29 0.00 31.40 0.00 2.00 361.75 0.00 0.00 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100.00 225,399.00 29,977.89 214,699.29 95.25 225,399.00 29,977.89 214,699.29 95.25 226,649.00 29,977.89 215,490.58 95.08 226,649.00 29,977.89 215,490.58 95.08 225,399.00 0.00 157,876.84 70.04 ( 225,399.00) 0.00 ( 157,876.84) 70.04 �zoTDmmnO000mWmomm000OnoDCO _JMMM0M Vczoo0 �N W Vm:�='o oo C�0 zoC�ZC:: XCl) 0 c�-fZpz°- �����0>Z0�iiZ�N) N)N) G�mmmo(oo ;o OV N" �NOzvW7v��W0 rr�ZNZoG)C/) :goRoZ4n,WnOK;rSW�4Z 00KN i-<< Z 0 N W 9 W 0 N N O WJ (0K W 0 co �� v NP N W V W N� N W W 00 oW v N O W -� W 01 OD J 1 W J O J OV W M ( C031 00 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o y 0 000000 0 0000 0 000000000 O O O O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PIL A (P W m A .A W W W W W N N N N- �� � t -� N O N O W W O V O O V CT W M V 0 .A O O O O co O O o O o OvW::Eo 00 ::E 00 �. v CTi of a 01 Cn M Cn m O of V O M M of of N O O M O N 0 O O �4 `< =1�6 4 0 0 0 Co O A .P .A Ch (Jl 0 -P WP al or A O O N .< \° \ \° \' \ \ \ \ \ \ \ \ \ \ CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a /09 69 v 69 tog '69 69 O EH Efl IV 6o E69 v � 469 69 Efl N Efl w OWO v0vW othk WWNNVWNW W 000 OD � W CD (o Co (b W O .A Z6 O N Co to Co E N O W O O 04L W W W 00 UO of V W O 00 O m W N W V 00 0 J W 69 00 W W O -� J�L 0 O J 0 0 0 0 N A V M W N A W W J ' j O -P IN Co O N O (A) .P 00 W 00 CO C)t W 01 CD N rt CD C. 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S -� �. �. c� c� c 0 � as cl Q.(Da as room a w a s o- (D (n Cr -Q a 0 a a- n o v 6 0 0 o (D _ m m °�WN Q' 0 0 Co o 00 Cu n o CO > > O N 3O�� °j No <<:3;uaN<(D3"° C D (D v r M a a(D n cwi n 0 0 n o c 0� � a� cyi ,, 0 0 0 0 o a= o �. w �c� 0mp0o�0°ma,w05< ��aa (a-c ,< � << a 3 a' << 3 (D 0) (D•< co c O -* w Q ,Q a c a m.0 v m a a w 3 a a a C) o� CL �c m m-aam0 `< mm�'��'�moa < N (D (D (n D (D (D (o v m to 0 0 d a 3 3 0 o CF 3 (0n o o D m o N r« 3 3(D 0 3 n n (D (ten (D m 3 N 0 N N N N N N N O O O O 0 W 00 co D w m En D o U1 Ul N �• UNi O CNJI � 0 0 0 �D Q. Efl OD q69 CO CJ1 O) C1 O O W O �I O W O O W -P -v W OD m 0 n m C. � N N N O O v O OD O W SANGER PUBLIC LIBRARY MONTHLY REPORT JUNE 2008 Submitted by Victoria Elieson HIGHLIGHTS: Thirteen teenagers participated in the first ever Gaming Tournament at the library. Super Mario Smash Brothers Melee (on the Game Cube) was the game. Most people seemed to enjoy it, but they also gave suggestions for improvement. Some of those who attended were experienced tournament entrants, and they helped the Library Director with some basic setup. Several adults and kids expressed interest in a tournament for their age -group. ADMINISTRATION: Learned to post pictures on the website. There are no collection numbers for last June on the statistics page of this report. At that time we were still struggling with new library automation software and had not yet learned how to force it to deliver the numbers we needed. It is still a tedious process. New population figures out from NTCOG caused a revision of the funding proposal to Denton County. Sanger will probably receive $17,800 from the county next year, compared to $18,000 this year. Meeting attended: Denton County Library Advisory Board, 6/19, Justin COLLECTION: Began putting new barcodes on the entire collection in anticipation of joining a shared automation system with other libraries. PROGRAMS: Adult programs included two Knitting/Crochet classes on Saturday and a Scrapbooking class on Sunday. An Art Class for elementary school students was held every Monday. The Summer Reading Club theme is "Jubilee" to celebrate 50 years of state sponsored summer reading programs. Storytimes were held regularly on Tuesday for Elementary children and on Wednesday for Preschoolers. In addition three Tuesday programs were presented for the ESL students from the School District. Cora Hamer is presenting the Summer Programs this year. During the week that the theme was "Cowboys" she invited a Cowboy singer and asked Pam Stephens to bring her horse. Three special programs were held. At the first Wednesday Storytime, the Reading Club kicked off with Dinomania, a program with puppets, songs and stories. At another special Storytime program, Lilly of Lilly's Purple Plastic Purse visited. The best attended program was presented by the clowns from Ringling Brothers, Barnum & Bailey Circus. They encouraged kids to earn a circus ticket by reading this summer. In addition to the Circus Ticket, kids can earn an ice cream cone, a donut, two hamburgers, an apple (or orange), a kite and a free book in the Summer Reading Club. Adults and teens can earn a book, a key chain and an insulated food carrier in their own Reading Club. JUNE 2008 STATISTICS 2007 2008 BORROWER CARDS Last Month 3538 3707 New Cards 110 95 Cards reactivated 18 23 TOTAL 3666 3825 • _ • ►'. Nonfiction 558 440 Fiction 1135 .. 811 Junior Fiction 368 333 Children's Books 1069 938 Leased Books 223 236 Interlibrary Loan 15 25 Spanish Materials 27 24 Audio Books 116 130 Music CDs 35 39 Video Materials 1007 845 Equipment 0 4 TOTAL CIRCULATION 4553 3825 INTERNET USERS 858 851 PROGRAMS Children's Programs 20 17 Children Attending 344 392 Adults Attending 106 119 Other Programs 2 4 Number Attending 10 34 VOLUNTEERS Number of Adults 7 8 Number of Juniors 1 4 Number of Hours 50 77 C�Z�I>l���lrL�L Books 15355 Leased Books data not available 182 Paperback Fiction ,due to change in 2438 Audio Books software 609 Music CDs 408 CD-ROM 200 Videocassettes 906 DVD 478 Microfilm 75 Equipment 4 TOTAL COLLECTION 20655 REVENUE Fines $215.75 $277.65 Copies $108.65 $101.55 ILL Postage $28.56 $31.86 New Cards $3.00 Lost Materials $2.80 TOTAL $355.96 $413.86 First Ever Gaming Tournament ,,-r . Think you're good at Super Mario Smash Brothers? Think you're `;he;best at Super Mario Smash Brothers? Find out if you're right at 'the'FIRST EVER Gamitig Tournament at the Library on Saturday, -.June 7.. Starting at 11:00 a.m., a double elimination tournament will . detemune the victor. Plus it will just be a lot of fun (not to mention there will be pizza). This tournament is only open to people age 12 to age 17. An- other tournament wIlt be held on July S, and the season tlnale will be on August 2. Put on your game face and come on out. Sanger Public Library. Saturday, June 7. U.F.O.'s are now gathering at the Sanger Public Library By Lynne S. Smiland U.F.O: s are now gathering at Sanger Public Library, SO1 Bolivar, on the 2nd and 4th Saturdays of each month, from 2-S p.m. Unidentified Flying Objects? No, UnFinished craft Objects ---you know, the afghan or cross- stitchsampler, maybe started during that last pregnancy in an optimistic burst of enthusiasm, that is now somewhere in the back of a closet. Or maybe somebody showed you how to get started knitting acorner-to-corner dish- cloth, like the knitting class at the library recently learned, but you got stuck somehow and need help to get unstuck. Throughout the summer, crafters may bring any unfinished craft projects to the library, whether crochet, knitting, quilting, cross-stitch, and work on them in the company and expertise of other crafters. By sharing knowledge and skills, participants can enrich others and themselves, as well as get some of those pesky unfinished projects completed. Crafters with no incomplete projects, if any such people exist, or with no desire to finish up something started way back when, are welcome to bring something new to begin. Upcoming meetings to work on those UnFinsshed craft Objects include June 28th, July 12th, July 26th, August 9th and August 23rd, from 2-S p.m., in the Sanger Public Library meeting room. Feel free to bring snacks, fin- ished projects to be admired, and favorite patterns to share. Donations of leftover supplies are gratefully accepted, for either the craft group or for the library's Storytime activities. �t.�.ri.� zc� ah 1 criticism of the effective rate will be discussed further in a future edition of the TML Legislative Update. The various committees looking at property taxes will continue to meet over the summer. The TML staff will monitor each hearing. tTY TAX C01 (Editor's note: for many years, some state officials and various interest groups have been trying to convince Texans that property tax appraisals are increasing because local officials (including city officials) exert pressure on appraisal district boards and staffs to hike appraisals so that local tax revenue will increase. In reality, the opposite is true: ate officials pressure appraisal districts to increase apprai stsals so that state expenditures will be lower. The following column tells the story.) By Rick Casey, Houston Chronicle, June 21 Reprinted with permission of the Houston Chronicle It looks like another record year protesting their tax appraisals, sc for the number of Harris County property owners it's hardly surprising that conspiracy theories are The most popular one seems to be that our appraisals are going up because greedy local politicians are pressuring the Harris County Appraisal District to juice the figures. That lets those greedy politicians hold the current tax rate or even reduce it by a small amount while actually grabbing more cash from our checking accounts. As it happens, the conspiracists are right that the technocrats at the appraisal district are under pressure to raise the taxable value of your home or business property. But it's not coming from the local school board or county commission or city council. It's coming from State Comptroller Susan Combs. A jury-rigged system This should mess with the minds of conspiracy theorists. Combs isn't a socialist. She's a Republican. She professes to dislike taxes as much as any Republican. And her office doesn't even get any of the money that comes from her pressuring the appraisal districts. The reason she does it is that the law requires her to do so. 2 It's a necessary component of the jury-rigged system we have for funding our schools. If you own a home you are painfully aware of the fact that your school property tax is by far the biggest bite of local taxes. The Supreme Court of Texas, all also Republicans under their robes, has ruled that the state has to supplement a good chunk of school funding. Second-guessing guessers Otherwise children who chose to be born to parents who couldn't afford to move into wealthy school districts would have much less money applied to their schooling than children who were smart enough to be born to affluent parents. So the Supreme Court said the state has to give local school districts what they need to educate their children with some reasonable approximation of fair funding. Some of that help comes from state funds, some from taking from rich districts and giving to the poor (thus the "Robin Hood" nickname). Part of the formula for doing that is a determination of how much taxable wealth there is in a school district per pupil. The state's job is to make up the difference between districts that have a lot of property wealth and those that have very little. But if some of the districts are low balling their valuations of taxable property, then they'll get more than their fair share of help from the state. Or if they are rich districts, they'll give less than their fair share to help poorer districts. So the law requires Comptroller Combs to second-guess every appraisal district in the state. And if she find the appraisals to be too low in a district for several years in a row, that district can lose millions in state funding. Houston ISD finds itself in that position. Its board voted this week to sue Combs if her office doesn't revise its finding that the district's valuations have not been in compliance. Part of the problem is that every appraisal district in the state is itself guessing in regard to much of the property it is appraising. This is especially true with very expensive houses and with virtually all commercial property. The reason is that Texas is one of only five states that doesn't require that sales prices of real estate be reported to the state. 3 Appraisal gaps The government knows what you earn. It knows what you paid for your car and your clothes. But in Texas it doesn't know what you paid for your house or your business property. Because the middle class lives mainly in neighborhoods where all the houses are similar, appraisal districts are able to do a good job at guessing at the values. Studies show the houses tend to sell for close to their appraised values. But very expensive houses and commercial properties almost always sell for considerably more than the amount listed on the tax rolls. The gap was illustrated earlier this week when Dallas officials told a state Senate hearing they want to change the law to require price disclosure on real estate sales. Support for the change swelled in Dallas after the city found itself having to pay about $42 million for a piece of commercial property listed on the tax rolls asbeing worth $7.3 million. The change won't happen, though. The people who are paying more than their share are afraid to tell the state how much they paid for fear their appraisal will go from, say, $220,000 to $240,000. Meanwhile, the businesses and the very wealthy are underpaying in amounts that justify hiring the best lobbyists money can buy. H.B. 1656, passed during the 2007 legislative session, requires cities over 20,000 in population to regulate the installation of irrigation systems (such as yard sprinkler systems) through a city permitting program carried out in compliance with rules set out by the Texas Commission on Environmental Quality (TCEQ). The TCEQ adopted these rules on June 8, and they were published in the Texas Register on June 20. The TML staff is working with the TCEQ to create a model ordinance that cities may adopt to help implement this new program. The model ordinance should be available at the end of July. If you have any questions about this issue, please contact Lauren Crawford in the TML Legal Department at (512) 231-7400 or luren ,tml.org. m u CON On May 30, the Texas Water Development Board (TWDB) published newly adopted changes to its financial assistance rules, in compliance with the omnibus water bills passed during the 2007 legislative session. Starting in 2010, any city that receives fmancial assistance from the TWDB will be required to update the Board annually on progress made toward the city's water conservation plan as filed with the TWDB and the Texas Commission on Environmental Quality (TCEQ). These changes are part of the comprehensive modifications made to water conservation plan requirements and water conservation in general during the 2007 legislative session. If you have any questions about this issue, please contact Lauren Crawford in the T IL Legal Department at (512) 2314400 or lauren( kw,org. L TAX The City of San Antonio was recently successful in certifying a class action lawsuit against various Web -based hotel -booking companies. On May 28, the judge of the U.S. District Court in San Antonio issued an opinion in City of San Antonio vs. Hotels. com, et al, that Web -based hotel companies have been paying city hotel occupancy taxes on the "wholesale" price of rooms (the price at which the rooms are obtained from the hotel), but not paying taxes on the "retail" price of the room (the price paid by the customer). Doing so appears to be a violation of most municipal hotel occupancy tax ordinances. The court's opinion is not final on the merits of the lawsuit, but does hold that San Antonio has made enough of a showing to allow a class action comprising 175 similarly - situated cities to move forward. The class action suit is of the "opt -out" variety, meaning that each of the 175 cities is automatically a participant unless it acts to withdraw. Cities interested in the class action lawsuit will wish to have their city attorney consider the court's opinion, which can be read here: bft://www.tnl.orOcizal pdf/unsealed nqM2jgn!ji The opinion also lists the 175 cities currently in the class on pp. 23-24. City attorneys or other interested city officials may contact Steve Wolens, San ntonio' As attorney for the lawsuit, at (214) 389-5300. n ' S OFFICE In 2007, the Texas Legislature passed S.B. 74, a bill that created an "address confidentiality program" to be administered by the Texas attorney general. The bill is intended to protect the identity of victims of certain crimes. Victims of family violence, stalking, and sexual assault, if they are eligible for program, may register for an anonymous address that will appear on voter and school registration cards, driver's licenses, and most government records. 5 More information on the program, including recently adopted rulemaking by the attorney general, can be found at the attorney general's Web site: http://www.oap,.state.tx.us/victims/acp.shtml. E FRAM 1113E O: A recent federal court ruling upholds a federal agency rulemaking that was opposed by cities across the nation. But the decision is not likely to be detrimental to Texas cities. On March 5, 2007, the Federal Communications Commission (FCC) issued an order based on the premise that local franchising authorities (typically cities) are unreasonably refusing to grant cable franchises. The order preempted various franchising requirements of cities around the country. This first FCC order did not, as some had feared, affect the Texas cable -franchising statute enacted in 2005 (commonly referred to as Senate Bill 5). The order was directed primarily at municipal barriers to entry for new providers of video service, barriers that no longer exist in Texas. However, this first order noted that some of its conclusions "also appear germane to existing franchisees." Under Senate Bill 5, existing franchisees (generally incumbent cable providers) are bound to their existing agreements until those agreements expire. The FCC sought additional comments on the implementation of the order, and a second order was issued on November 6, 2007. The second order extends some of the findings from the first order to incumbent cable providers, and thus may affect cities with cable franchise agreements grandfathered under Senate Bill 5. The .National League of Cities (NLC) and other national local government groups brought suit to challenge the FCC's authority to issue the first order. The Decision On June 27, the federal Sixth Circuit Court of Appeals issued its opinion. The court held that the adoption of the federal Telecommunications Act (Act) and all the subsequent amendments to the Act created a system of "deliberately structured dualism" under which local governments and the FCC regulate cable service. Under the system, the FCC is authorized to regulate the technical provision of service and has explicit authority to issue the order. The conclusion is viewed as a defeat for most areas of the country but won't generally change the state of the law for cities operating under Senate Bill 5. In addition, the court upheld the FCC's conclusion that it cannot void existing franchises. Rather, a cable C� provider has the burden to prove, under the facts and circumstances of each situation, that the new rules should apply to its franchise agreement. This last conclusion is somewhat ambiguous, and only time will tell if or how cable providers in Texas will seek to enforce the orders. NLC has requested a rehearing of the second order at a That rehearing request is pending, and NLC is currently deciding how to proceed on both orders. The TML staff will continue to monitor the implementation of the orders and keep our members informed. ATTORNEY GENERAL ISSUES IMPACT FEE OPINION The Texas attorney general recently issued an opinion, GA-0637, regarding: (1) which fees constitute "impact fees;" and (2) whether a school district may agree to pay impact fees in light of several laws and a previous attorney general opinion. Chapter 395 of the Local Government Code, the impact fee statute, clearly defines what constitutes an "impact fee." The League, in its written comments on the opinion request, argued that whether any particular fee is an impact fee requires an examination of the fee and what it is used for. In other words, the answer to the question involves an examination of the facts, and the attorney general is prohibited from reviewing facts in the opinion process. The opinion noted that fact issues cannot be resolved in an opinion, and the attorney general refused to make any conclusions regarding that portion of the request. The request also asked for clarification of S.B. 883, a 2007 bill that exempts school districts from paying impact fees unless the school district's board of trustees agrees to do so. A prior law, Section 11.168 of the Education Code, provides that a school district "may not enter into an agreement authorizing the use of school district... resources for... improvements to real property not owned... by the district." A previous attorney general opinion, CIA -0496 (2006), construed Section 11.168 relative to Local Government Code Chapter 395. At the time the opinion was released, the law required a school district to pay impact fees. The issue in GA-0496 was whether a school district was prohibited under Section 11.168 from paying impact fees because the expenditure would indirectly involve the use of school resources to improve real property not owned by the district. GA-0496 concluded that cities imposed impact fees at that time, and there was no "agreement" to pay them. That opinion confirmed that cities at that time could continue to collect impact fees from school districts. The crux of the latest opinion request was this: Does the older provision prohibiting schools from agreeing to use their resources for offsite improvements trump the ability of a school district board of trustees to agree to pay under S.B. 883? 7 GA-0637 (the most recent opinion) concluded that such an interpretation would violate rules of statutory construction and that all of the statutory provisions can be harmonized. Essentially, the opinion concludes that a school district board of trustees may agree to pay municipal impact fees if it so desires. THE DEPARTMENT OF HOMELAND SECURITY ANNOUNCES NEW EMERGENCY MANAGEMENT GRANT The Governor's Division of Emergency Management (GDEM) recently notified cities of new Department of Homeland Security grants. The Department of Homeland Security (DHS) has just announced a new grant to improve emergency management and preparedness capabilities by supporting emergency operations centers (EOC). The EOC grant program allows for up to $1,000,000 for a construction project and up to $250,000 for renovation projects for EOCs. The grant has a 75-percent federal and 25-percent local cost share, cash or in -kind, match requirement. The grant guidance and application process may be obtained on the Internet using the following linke hiip://www.fema.g.ov/jzovemment/wrant/index.shbn. The application for this grant is not as simple as other grant applications, and the process outlined in the EOC Grant Guidance must be followed exactly. Th6 application for the grant must be sent electronically to the GDEM no later than July 21, 200$. LA POLL The Office of Rural Community Affairs (ORCA) has launched an online initiative to gather input from rural Texans across the state regarding policy recommendations and ideas to improve quality of life in rural communities. The agency is asking rural Texans to contribute ideas and suggestions online at: htI ://www.orca.state.tx,us/index.-phy/HQm.e/Poligy±Recommendation. )RCA is particularly interested in four key focus areas: economic development, community development, health care, and housing. ORCA will offer these comments to the Texas Legislature at the beginning of the upcoming legislative session. The agency is charged with the task of identifying and prioritizing policy issues and concerns affecting rural communities in the state in consultation with rural community leaders, locally elected officials, state elected and appointed officials, academic and industry experts, and an interagency work group. It is also charged with making recommendations to the legislature to address the concerns affecting rural communities. ORCA works to strengthen rural communities and assist them with community and economic development and health care by serving as the central source for rural programs, services, and activities so that governmental resources are delivered efficiently and with the best possible results for the state's rural residents. As the state agency dedicated solely to rural Texas, ORCA makes the broad resources of state government more accessible to rural communities. ORCA was created by the 77th Legislature to ensure a continuing focus on rural issues, monitor governmental actions affecting rural Texas, research problems and recommend solutions, and administer rural - focused state and federal resources. For more information, visit ORCA online at www.orca. state.tx.us. CONGRESS CONSIDERS IMPORT BOND RATING` BILL The U.S. House Financial Services Committee is considering an important bill, H.R. 6308, that would require bond rating agencies to use the same standards for rating municipal bonds as they do for other bonds. The current system of separate municipal bond ratings unfairly penalizes safe municipal bonds relative to more risky corporate bonds. Between 1970 and 2000, cities issued 14,800 general obligation bonds without a default. Yet many cities receive bond ratings that would inaccurately indicate a greater failure rate than similarly rated corporate bonds. These misleading ratings cost cities --and taxpayers --billions in increased borrowing costs. City officials may wish to contact their Texas representatives on the House Financial Services Committee to indicate their support for fair and equal municipal bond ratings. Rep. Ruben Hinojosa 2864 West Trenton Road Edinburg, TX 78539 Phone: (956) 682-5545 Fax: (956) 682-0141 Rep. Al Green 3003 South Loop West, Suite 460 Houston, TX 77054 Phone: (713) 383-9234 Fax: (713) 383-9202 Rep. Ron Paul 122 West Way, Suite 301 Lake Jackson, Texas 77566 107 South St. Marys Street Beeville, Texas 78102 Phone. (361) 3584400 Fax: (361) 3588407 601 25�' Street, Suite 216 Galveston, Texas 77550 Phone: (979) 285-0231 Rep. Jeb Hensarling 5510 Abrams Road, Suite 243 Dallas, Texas 75231 Phone: (214) 349-9996 Fax: (214) 349-0738 Rep. Randy Neugebauer 611 University Ave., Suite #220 Lubbock, Texas 79401 Phone: (806) 7634611 Fax: (806) 767-9168 Phone: (409) 766-7013 703 East Corsicana Street Athens, Texas 75751 Phone. (903) 6754288 Fax: (903) 6754351 500 Chestnut St., Suite #819 Abilene, Texas 79602 Phone: (325) 675-9779 Fax: (325) 675-5038 Rep. Kenny Marchant 9901 East Valley Ranch Parkway, Suite 3035 Irving, TX 75063 Phone: (972) 556-0162 Fax: (972) 409-9704 TML member cities may use the material herein for any purposes No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the Texas Municipal League. For further information contact the TML Legislative Services Department 1821 Rutherford Lane, Suite 400, Austin, Texos 78754-5128 512-231-7400, Fax 512-231-7490 www.tml.org