october 1, 2013 agenda packet

City Council Agenda of 5 October 1, 2013

NOTICE OF A PUBLIC MEETING

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

9:00 A.M. - Tuesday, October 1, 2013 McNease Convention Center, South Meeting Room

500 Rio Concho Drive San Angelo, TX 76903

THE MCNEASE CONVENTION CENTER IS ACCESSIBLE TO PERSONS WITH DISABILITIES. ACCESSIBLE ENTRIES AND SPECIALLY MARKED PARKING SPACES ARE AVAILABLE AT BOTH MAIN ENTRANCES AT SURBER DRIVE AND RIO CONCHO DRIVE. IF ADDITIONAL ASSISTANCE IS NEEDED TO OBSERVE OR COMMENT, PLEASE NOTIFY THE OFFICE OF THE CITY CLERK, ROOM 208, CITY HALL, 657-4405, AT LEAST 24 HOURS PRIOR TO THE MEETING. City Council meetings are broadcast on Channel 17-Government Access at 10:30 A.M. and 7:00 P.M. every day for two weeks beginning on the Thursday after each meeting.

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

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

A. Call to Order

B. Prayer and Pledge

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

C. Proclamations

“Fire Prevention Week”, October 6-12, 2013, to be accepted by Thomas Truett, Arson Investigator/Fire Inspector, Fire Marshal's Office City of San Angelo

“Energy Industry Appreciation Month”, October 2013, to be accepted by Rene Peckham President Desk and Derrick Club of San Angelo

D. Public Comment

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

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

II. CONSENT AGENDA

1. Consideration of approving the September 17, 2013 City Council Regular meeting minutes


2. Consideration of awarding HGAC quote VM-04-13 for two ambulance box remounts service in the amount of $72,900.00, and authorizing the City Manager to execute any necessary related documents (submitted by Assistant Operations Director Patrick Frerich)

3. Consideration of jointly awarding RFB WU-18-13a LAS (Liquid Ammonium Sulfate) bid to Chameleon Industries, Inc. (Mesquite, Tx) and to Pencco, Inc. in the total annual combined amount of $41,172.00 for LAS for use in the Water Treatment Plant (submitted by Water Utilities Director Ricky Dickson)

4. Consideration of awarding RFB WU-18-13b Ferric Chloride bid to Pencco, Inc. (San Filipe, Tx) in the amount of $387,200.00 annually for ferric chloride coagulant for use in the Water Treatment Plant (submitted by Water Utilities Director Ricky Dickson)

5. Consideration of accepting the FY2013 Emergency Management Performance Grant (EMPG) in the amount of $58,278.98 and authorizing the Mayor or City Manager to execute related documents (submitted by Interim Emergency Management Coordinator Teresa Covey)

6. Consideration of authorizing the City Manager to execute the Second Amendment to the Interlocal Agreement and all related documents with the Concho Valley Transit District (CVTD), in substantially the attached form, to provide transit services on behalf of the City of San Angelo (submitted by Finance Director Tina Bunnell)

7. Consideration of adopting a Resolution of the City of San Angelo, Texas, authorizing the City Manager to execute an Interlocal Agreement with the Concho Valley Transit District (CVTD) providing for reimbursement to the City of eighty percent of costs incurred by City for construction of pedestrian transit access infrastructure improvements pursuant to the Downtown Pedestrian Improvement Plan from New Freedom Project Grant funds in the amount of $573,471, with a local match of $143,368, under project grant agreement # 51107f7084 between the Texas Department of Transportation and CVTD (submitted by Interim Economic Development Director Bob Schneeman)

8. Consideration of adopting a Resolution of the City of San Angelo, Texas, authorizing the City Manager to execute the First Amended Fire and Security Equipment and Service Agreement to amend the term of the original agreement dated October 5, 2010, said amended term being for five (5) years, commencing October 5, 2010 and ending October 4, 2015, and certain other related provisions (submitted by Construction & Facilities Manager Ron Lewis)

9. Consideration of adopting a Resolution accepting a WIC grant for the six months from October 1, 2013 through March 31, 2014, including that the City of San Angelo provide certain services for the WIC program; authorization for the City Manager to execute a contract in substantially the attached form therefore with the Texas Department of State Health Services, for an award of $409,472.00, for the first six months of the fiscal year; authorizing the City Manager to negotiate and execute such other contracts or addendums for grant funding for the balance of the fiscal year, and any related documents (submitted by Neighborhood and Family Services Director Bob Salas)

III. REGULAR AGENDA:

F. EXECUTIVE/CLOSED SESSION

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

• Section 551.074(1) to deliberate the evaluation and duties of the City Manager; to deliberate the discipline of a public officer, being a City Council member, for Code of Conduct and Code of Ethics violations; and to hear a complaint or charge against an officer, being a City Council member, or employee


• Section 551.072 to deliberate the purchase, exchange, lease, or value of real property regarding Red Arroyo Hills

G. PUBLIC HEARING AND COMMENT

10. Presentation on Crisis of the Concho: Towards a Conservation Plan by Aqua Squad 2013 Students (Accompanied by Christy Youker, UCRA Education Director)

11. First Public Hearing and consideration of introduction of an Ordinance amending Chapter 12, Exhibit “A” (Zoning Ordinance) of the Code of Ordinances, City of San Angelo Z13-27: Greg Huling AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: An unaddressed 17.91 acre tract, located at the southeast corner of the intersection of South Chadbourne Street and Christoval Road. This property specifically occupies the C Potter Survey 160, Abstract 7278, in southeast San Angelo, changing the zoning classification from Light Manufacturing (ML), Ranch & Estate (R&E) and Heavy Commercial (CH) to Light Manufacturing (ML) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY (Presentation by Interim Senior Planner Jeff Hintz)

12. First Public Hearing and consideration of introduction of an Ordinance amending Chapter 12, Exhibit “A” (Zoning Ordinance) of the Code of Ordinances, City of San Angelo Z13-28: Greg Huling AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: An unaddressed 5 acre tract, located approximately 280 feet south of the intersection of Southland Boulevard and Green Meadow Drive. This property specifically occupies the Community of Faith subdivision, Block 1, Section 1, Lots 1 & 2, in western San Angelo, changing the zoning classification from Single-Family Residential (RS-1) to High-Rise Multi-Family Residential (RM-2) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY (Presentation by Interim Senior Planner Jeff Hintz)

13. Consideration of an appeal of Planning Commission's decision to deny case numbers Z13-29 & CU 13-19, requesting approval of a zone change from Single-Family Residential (RS-1) to General Commercial (CG) -and- a conditional use to specifically allow for vehicle repair as defined in Section 315.i of the Zoning Ordinance, subject to the approval of the zoning change, specifically at 2588 Armstrong Street, located on the east side of Armstrong Street, approximately 800 feet south from the intersection of Armstrong Street and east 28th Street. this property specifically occupies 6 acres from tract 39 in the RS Longbotham Survey 0027, abstract 5735 in north-central San Angelo (Presentation by Interim Senior Planner Jeff Hintz)

14. First Public Hearing and consideration of introduction of an Ordinance amending Chapter 12, Exhibit “A” (Zoning Ordinance) of the Code of Ordinances, City of San Angelo Z13-31: Baptist Memorials Ministries AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS


ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 902, 904, 916 Holcomb Street and 426 and 428 East 8th Street, specifically occupying the proposed subdivision approved August 19, 2013 by the Planning Commission, entitled, Baptist Retirement Community AL-MC Houses, Section 1, Block 1, Lot 1, being a replat of of Cornick's Addition, Block 2, Lots 8-11 and 0.8 acres of the Michael Himmer Survey 321, Abstract 355, in northern San Angelo, changing the zoning classification from Two-Family Residential (RS-2) to Multi-Family Residential (RM-1) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY (Presentation by Interim Senior Planner Jeff Hintz)

15. First Public Hearing and consideration of introduction of an Ordinance amending Chapter 12, Exhibit “A” (Zoning Ordinance) of the Code of Ordinances, City of San Angelo Z 13-32: Fleet Equipment Leasing, LLP. AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: An unaddressed tract occupying a 25.822 acres tract located south of Red Bluff Road and Hillside Drive; more specifically being 25.822 acres out of 96.314 acres of the Christoph Voight Survey 181, Abstract 3931 and Carl Dammann Survey 180, Abstract 141 in far southwest San Angelo. This property is described on a Preliminary Plat titled “The Canals at Lake Nasworthy” and occupies all of Blocks 6 and 7, changing the zoning classification from a Ranch & Estate (R&E) to a Single-Family Residential (RS-1) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY (Presentation by Interim Senior Planner Jeff Hintz)

16. First Public Hearing and consideration of introduction of an Ordinance amending Chapter 12, Exhibit “A” (Zoning Ordinance) of the Code of Ordinances, City of San Angelo Z 13-33: COSA Planning Commission AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 5237 South Bryant Boulevard, located approximately 700 feet south from the intersection of South Bryant Boulevard Frontage Road and Kimrey Lane. This property specifically occupies the Parkview Acres Addition, portions of Blocks 9 & 10 being 3.0966 acres in southern San Angelo, changing the zoning classification from Ranch & Estate (R&E) to Office Commercial (CO) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY (Presentation by Interim Senior Planner Jeff Hintz)

17. First Public Hearing and consideration of introduction of an Ordinance authorizing abandonment of a public right-of-way for "County Road" extending approximately 400’ northeast off of Link Road, immediately west of the Concho River Estates, Block 34, in southern San Angelo AN ORDINANCE PROVIDING FOR THE ABANDONMENT AND CLOSING OF THE FOLLOWING STREET SEGMENT, TO WIT: An approximately 400 foot x 60 foot street segment situated approximately 2,600 feet northwest of the intersection of Link Road and Christoval Road along Link Road, immediately west of the Concho River Estates, Block 34, in southern San Angelo; AUTHORIZING THE CONVEYANCE THEREOF TO THE ABUTTING PROPERTY OWNERS; PROVIDING FOR THE TERMS AND CONDITIONS OF ABANDONMENT AND


CONVEYANCE; AND PROVIDING FOR THE MAYOR TO EXECUTE AND DELIVER A QUIT CLAIM DEED TO THE ABUTTING PROPERTY OWNERS (Presentation by Interim Senior Planner Jeff Hintz)

H. FOLLOW UP AND ADMINISTRATIVE ISSUES

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

a. Ft. Concho Museum Board: Joe Spano (SMD6) to an unexpired term January 2014 20. Announcements and consideration of Future Agenda Items

The Regular City Council meeting on Tuesday, October 15, 2013, will be held at 5:30 P.M. 21. Adjournment

The City Council reserves the right to consider business out of the posted order, and at any time during the meeting, reserves the right to adjourn into executive session on any of the above posted agenda items which are not listed as executive session items and which qualify to be discussed in closed session under Chapter 551 of the Texas Government Code. Given by order of the City Council and posted in accordance with Title 5, Texas Government Code, Chapter 551, Friday, September 27, 2013, at 5:00 P.M.

/s/________________________ Alicia Ramirez, City Clerk

P R O C L A M A T I O N WHEREAS, Fire is a serious public safety concern both locally and nationally, and

homes are the locations where people are at the greatest risk from fire; and

WHEREAS, Fire departments in the United States responded to nearly 400,000

home fires in a single year; and WHEREAS, San Angelo residents are responsive to public education measures

and are able to take personal steps to increase their safety from fire, especially in their homes; and

WHEREAS, The fire service of San Angelo is dedicated to the safety of life and

property from the devastating effects of fire, and they are joined by other emergency service providers, businesses, safety advocates, schools, and service clubs,

NOW, THEREFORE, I, Dwain Morrison, Mayor of the City of San Angelo, Texas, on behalf of the City Council, do hereby proclaim the week of October 6-12, 2013 as FIRE PREVENTION WEEK and call upon the people of San Angelo to participate in fire prevention activities at home, work, and school, and practice home fire safety especially this week which commemorates the great Chicago Fire of 1871 which killed 250 persons, left 100,000 homeless, and destroyed 17,400 buildings.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City to be affixed this 1st day of October, 2013.

THE CITY OF SAN ANGELO

_________________________________

DWAIN MORRISON, MAYOR

P R O C L A M A T I O N

WHEREAS, the Concho Valley has an ever-growing community

of energy industries that support the local economy; and

WHEREAS, these companies provide essential employment

opportunities for the citizens of this area; and WHEREAS, the contributions of these companies improve the

quality of our everyday lives; and WHEREAS, we recognize and sincerely appreciate these energy

industry companies; NOW, THEREFORE, I, Dwain Morrison, Mayor of the City of San Angelo, Texas, on behalf of the City Council, do hereby proclaim the month of October 2013 as

“Energy Industry Appreciation Month” in San Angelo, Texas, and urge all citizens to support and recognize our energy industry companies.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City to be affixed this 1st day of October, 2013. THE CITY OF SAN ANGELO _______________________________ DWAIN MORRISON, MAYOR

CITY COUNCIL MINUTE RECORD The City of San Angelo Page 1 Tuesday, September 17, 2013 Vol. 104

OPEN SESSION BE IT REMEMBERED City Council convened in a regular meeting at 9:05 A.M., Tuesday, September 17, 2013, in the San Angelo McNease Convention Center, 500 Rio Concho Drive, San Angelo, Texas. All duly authorized members of the Council, to-wit:

Mayor, Dwain Morrison Councilmember Rodney Fleming Councilmember Marty Self Councilmember Johnny Silvas Councilmember Don Vardeman Councilmember Kendall Hirschfeld Councilmember Charlotte Farmer

were present and acting, with the exception of , thus constituting a quorum. Whereupon, the following business was transacted:

An invocation was given by Citizen Harry Thomas and pledge was led by Candi Pool of the San Angelo Association of Realtors.

PROCLAMATIONS AND RECOGNITIONS

Darlene Luna, Purchasing Specialist with the City of San Angelo, for receiving the State of Texas Procurement Certification “Lakeview Homecoming Day, Beat the Snyder Tigers”, Friday, September 27, 2013, was accepted by Sadie Reddy, Student Cheerleader, Cheerleader Squad, and Lake View High School Football Team PUBLIC COMMENT

Public comments were made by Citizen JB Hall regarding support for the 19th Street sidewalk project. Mayor Morrison directed staff to speak with Mr. Hall regarding the project and for staff to post the necessary information regarding the project on the City’s website.

Public comment and presentation was made by Citizen Bill Cullins and September Summers of Shannon Medical Center and Stephanie Riley of HEB regarding the Get Healthy San Angelo and H-E-B Challenge initiative.

Councilmember Silvas commented on an email received from Gary Goetz regarding debris and unsanitary conditions at the 7th and Pecan intersection.

CONSENT AGENDA

APPROVAL OF THE SEPTEMBER 3, 2013 CITY COUNCIL REGULAR MEETING MINUTES

CONSIDERATION OF AWARDING RFB WU-13-13 CHLORINE BID TO DPC INDUSTRIES INC. (SWEETWATER, TX) IN THE AMOUNT OF $69,300.00 FOR LIQUID CHLORINE FOR USE IN THE WATER TREATMENT PLANT (SUBMITTED BY WATER UTILITIES DIRECTOR RICKY DICKSON)

Minutes Vol. 104 September 17, 2013 APPROVAL OF A NEW LAKE LOT RESIDENTIAL LEASE FOR FINANCING PURPOSES WITH THE FOLLOWING LESSEE AND AUTHORIZING THE MAYOR, CITY MANAGER, OR WATER UTILITIES DIRECTOR TO EXECUTE THE SAME (Discussed in Regular Agenda)

Lot 17, Group 9, 1906 South Concho Drive (Sims) Lot 20, Group 15, 2378 Fishermans Road (Jonas)

AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE A CONCESSION AGREEMENT AND ALL RELATED DOCUMENTS BETWEEN THE CITY AND AVIS CAR RENTAL GROUP, LLC, IN SUBSTANTIALLY THE ATTACHED FORM, FOR A NON-EXCLUSIVE LICENSE TO OPERATE AN AUTOMOBILE RENTAL SERVICE AT THE SAN ANGELO REGIONAL AIRPORT-MATHIS FIELD

AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE A CONCESSION AGREEMENT AND ALL RELATED DOCUMENTS WITH BUDGET RENT A CAR SYSTEM, INC., IN SUBSTANTIALLY THE ATTACHED FORM, FOR A NON-EXCLUSIVE LICENSE TO OPERATE AN AUTOMOBILE RENTAL SERVICE AT THE SAN ANGELO REGIONAL AIRPORT-MATHIS FIELD

APPROVAL OF THE CONTINUATION OF A CITY POLICY PROVIDING FOR PAID TIME OFF FOR CITY EMPLOYEES WHO CONTRIBUTE A “CARE SHARE”, A “DOUBLE CARE SHARE”, OR GREATER TO THE 2013-2014 UNITED WAY CAMPAIGN

AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT FOR E9-1-1 PUBLIC SAFETY ANSWERING POINT SERVICES WITH THE CONCHO VALLEY COUNCIL OF GOVERNMENTS FOR THE OPERATION OF 9-1-1 SERVICES IN TOM GREEN COUNTY PURSUANT TO THE REGIONAL PLANNING COMMISSION (RPC) STRATEGIC PLAN

ADOPTION OF A RESOLUTION ACCEPTING THE U.S. DEPARTMENT OF JUSTICE FY 2013 JUSTICE ASSISTANCE GRANT IN THE SUM OF TWENTY-TWO THOUSAND SEVEN HUNDRED FORTY-ONE AND NO/100 DOLLARS ($22,741.00), AND AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE SUCH GRANT AWARD AND RELATED DOCUMENTS AS MAY BE NECESSARY OR CONVENIENT FOR ACCEPTANCE OF THE GRANT

ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO APPLY TO ACCESS THE RESERVATION SYSTEM FOR 2014-2015 AMY YOUNG BARRIER REMOVAL PROGRAM FUNDS AND APPLY ON BEHALF OF THE SAN ANGELO HOUSING SUPPORT DIVISION FOR SUCH GRANT FUNDS; AND APPROVING ACCEPTANCE OF GRANT FUNDS AWARDED

SECOND HEARING AND ADOPTION OF AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” (ZONING ORDINANCE) OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO

Z13-25: Efraim and Lupe Puente

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 801 Fisher Street, located at the northwest corner of the intersection of Townview Lane and Fisher Street. This property specifically occupies the Porter Highland Acres, Block 2, Except N 350' of W 122.9' and S 25' of Lot 30, in western San Angelo, changing the zoning classification from Ranch & Estate (R&E) to Single-Family Residential (RS-1) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

Minutes Page 353 September 17, 2013 Vol. 104 SECOND HEARING AND ADOPTION OF AN ORDINANCE AUTHORIZING ABANDONMENT OF PUBLIC RIGHT-OF-WAY BETWEEN CORNICK'S ADDITION, BLOCK 2 AND IMMEDIATELY NORTH OF LOTS 8-11 AND SOUTH OF THE BAPTIST MEMORIALS GERIATRIC ADDITION, SECTION 2, BLOCK 2, LOT 1 IN NORTH-CENTRAL SAN ANGELO

AN ORDINANCE PROVIDING FOR THE ABANDONMENT AND CLOSING OF THE FOLLOWING STREET SEGMENT, TO WIT: An approximately 20 foot wide x 450 foot long portion of alley running east to west, perpendicular to Holcomb Street located between Cornick's Addition, Block 2 and immediately north of Lots 8-11 and south of the Baptist Memorials Geriatric Addition, Section 2, Block 2, Lot 1 in north-central San Angelo; AUTHORIZING THE CONVEYANCE THEREOF TO THE ABUTTING PROPERTY OWNERS; PROVIDING FOR THE TERMS AND CONDITIONS OF ABANDONMENT AND CONVEYANCE; AND PROVIDING FOR THE MAYOR TO EXECUTE AND DELIVER A QUIT CLAIM DEED TO THE ABUTTING PROPERTY OWNERS

SECOND HEARING AND ADOPTION OF AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” (ZONING ORDINANCE) OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO

Z 13-26: Mills Development, Inc.

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: An unaddressed tract occupying a 24.484 tract extending northwest from Mills Pass Drive and located directly west of an 8.995 acre tract annexed to the City Limits on March 5, 2013 that comprises the Prestonwood Addition, Section Two, in southwest San Angelo, changing the zoning classification from a Ranch & Estate (R&E) to a Single-Family Residential (RS-1) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

Motion, to approve the Consent Agenda, with the exception of RFB WU-13-13, as presented, was made by Councilmember Silvas and seconded by Councilmember Self. Motion carried unanimously.

REGULAR AGENDA: PUBLIC HEARING AND COMMENT

AWARD OF RFB WU-13-13 CHLORINE BID TO DPC INDUSTRIES INC. (SWEETWATER, TX) IN THE AMOUNT OF $69,300.00 FOR LIQUID CHLORINE FOR USE IN THE WATER TREATMENT PLANT Water Utilities Director Ricky Dickson presented background information. Motion, to award, as presented, was made by Councilmember Farmer and seconded by Councilmember Self. Motion carried unanimously. AUTHORIZATION FOR FUNDING AND PAYMENT FOR THE CITY’S PROPORTIONATE SHARE OF COSTS INCURRED FOR SERVICES PURSUANT TO THE INTERLOCAL AGREEMENT BETWEEN CITIES OF ABILENE, MIDLAND AND SAN ANGELO, EFFECTIVE APRIL 9, 2011 (WEST TEXAS WATER PARTNERSHIP), AND RATIFYICATION OF ALL ACTIONS ALREADY TAKEN AND PAYMENTS MADE PURSUANT TO SAID INTERLOCAL AGREEMENT SINCE ITS EFFECTIVE DATE Requested by Mayor Morrison, he informed once the issue was discovered, management staff was directed to investigate the issue. He noted a meeting was held with the attorneys involved with the project. Mayor Morrison explained the City Council met in Executive Session, noting Councilmember Farmer was not available for the second session of Executive Session. As a consensus of the City Council, it was determined the issue would be handled on the September 17, 2013. He noted on September 11, 2013, Councilmember Farmer prematurely released information regarding the matter to the media.

Minutes Vol. 104 September 17, 2013 City Manager Daniel Valenzuela provided a history of the TriCity Partnership consisting of Cities of Midland, Abilene, and San Angelo. He read a statement into the record:

Joint statement on West Texas Water Partnership from City Manager Daniel Valenzuela, Mayor Dwain Morrison The following statement is offered jointly to our City Council, to the public and to the media from myself and from Mayor Morrison. These are the facts: On March 22, 2011, following a presentation by the prior City Manager and his Water Utilities Director, the City Council authorized the City Manager to negotiate and execute a contract with the cities of Abilene and Midland. The resulting agreement calls for the cities to work together to develop strategies that will result in all three communities supplementing their existing water supplies with long-term solutions. This effort is now known as the West Texas Water Partnership. In approving the agreement, the Council required that the contract include a provision under which the negotiated cost to the City of San Angelo would not exceed $100,000. The Council approved the motion unanimously. On May 20, 2011, the City Managers of all three cities, including my predecessor, signed and executed the agreement. The contract was also signed by the City Attorneys of Abilene and of Midland, but not by San Angelo’s City Attorney. The contract was drafted and reviewed by the Austin law firm of Lloyd Gosselink, which is representing the West Texas Water Partnership. The agreement was never submitted to the San Angelo City Attorney for her review and signature. In approving the contract, the City Councils of Abilene and Midland did not stipulate to a maximum expense. The executed contract does not include the $100,000 expense limit mandated by the San Angelo City Council. As a result, per the contract, the purchase orders issued by our Purchasing Division did not include a cap on how much the City of San Angelo could expend under the agreement. On Dec. 15, 2011, the City of San Angelo’s Water Utilities Director at the time received the first invoice from the City of Abilene, which is acting as the Partnership’s fiscal agent. The invoice was for services rendered by Lloyd Gosselink and by two engineering firms whose specialties include water supply evaluation, planning, development and design – those being Enprotec / Hibbs & Todd, and HDR. (It should be noted that Lloyd Gosselink and Enprotect / Hibbs & Todd had previously been assisting Abilene in the development of a new reservoir. Midland and San Angelo agreed to utilize the firms under their existing contracts with Abilene.) San Angelo’s share of the first invoice amounted to $43,259.72. The $100,000 limit mandated by the City Council was surpassed on May 25, 2012. The City of San Angelo has honored the signed and binding interlocal agreement. To date, the City of San Angelo has paid a total of $185,334.38. Another $62,527.38 is pending payment. That brings the total amount paid and owed to $247,861.76. The professional services rendered to date involve engineering, environmental, legal and political evaluation of a myriad of options for future regional water supplies. Details of these evaluations are protected by a confidentiality clause in the interlocal agreement. This clause ensures that sensitive information that could compromise the three cities’ ability to develop future water supplies is protected. What we can say is the work of the partnership’s attorneys and engineers have sharply focused efforts on the options most likely to prove successful in developing long-term water sources. Among the factors considered in evaluating possible water supplies are reliability, renewability, cost, feasibility, sustainability, and legal and permitting issues.

Minutes Page 355 September 17, 2013 Vol. 104

In recent discussions with current and former City of San Angelo employees and elected officials, many have said they did not and could not recall the City Council stipulation that expenditures be capped at $100,000. They have said their belief and understanding were that the costs would and should be shared equally among the three cities, which has been the case. One former Council member said had he been aware of the $100,000 limit, he would have sought more funding from the City Council. This Council member said he expected the total cost would well exceed $100,000. And in fact, in approving the agreement, Council members expressed an expectation that the cost would exceed $100,000 and their approval of a budget amendment would be required at that point. I concur with the assessment that this effort will not be inexpensive. This will be a long and involved process that will involve much technical study and analysis by attorneys and engineers with an expertise in water matters. There is no doubt the interlocal agreement and the expenditures were not in keeping with the City Council’s expressly stated instructions. The City of San Angelo has procedures in place to prevent such mistakes. First and foremost, all contracts approved by Council should undergo a legal review by the City Attorney’s office and should require an attorney’s signature. Part of that legal review ensures the contract reflects the expressed and approved desires of the City Council. Again, that did not happen in this case. Because the two staff members who spearheaded the City’s initial involvement in the partnership and the interlocal agreement no longer work for the City, we cannot explain why this procedure was not followed. Had the required legal review occurred, there would have been at least one other level of protection. The purchase orders sought to remit payment under the contract would have reflected the expense cap, per the agreement. Any payment sought above that ceiling would have been red-flagged and rejected. Additionally, it is not unusual for a special account to be established for a project such as this. The authorized amount is then placed into this account, from which all invoices are paid. Payments would be rejected once the account is exhausted. At that point, the City Council could consider increasing or eliminating the cap on expenditures via a budget amendment. Because the interlocal agreement did not include a limit on expenditures, none of these accounting safeguards were in place. During this time span, the City was between City Managers, San Angelo’s involvement in the West Texas Water Partnership was limited to a handful of officials, and the City Council was strongly pressing the need to address the community’s short- and long-term water supply. As a result, I am convinced the failure of the interlocal agreement to reflect the Council’s authorization of the contract was an oversight rather than willful negligence on the part of any former or current employee. I have reached this conclusion after thorough investigations by myself and by the City’s internal auditor. Most of the City Council members, including Mayor Morrison, have concurred with this assessment. Moving forward, I will require the following:

• First, all Council-approved contracts will be reviewed by and will include the signature of one of our City attorneys.

• Second, our Purchasing Division will continue to ensure that all purchase orders reflect the contract upon which they are based.

• Third, separate expenditure accounts will be established for special projects to ensure that spending does not exceed the authorized expense.

• Lastly, failure by any employee to adhere to these procedures will result in disciplinary action.

Additionally, in this particular instance, more information about the West Texas Water Partnership’s work will be shared with the City Council. That change has already been

Minutes Vol. 104 September 17, 2013

instituted. I plan to update the Council about the activities of the West Texas Water Partnership in executive session on a quarterly basis. We want each of the seven elected Council members to be knowledgeable of and comfortable with the Partnership’s efforts. In conclusion, it is vital for the City Council, the public and our partners in Abilene and Midland to unquestionably know Mayor Morrison and I remain fully supportive of and committed to the West Texas Water Partnership. The impetus that sparked this cooperative regional effort remains as real today as it was when our three communities came together two-plus years ago. That is, we share a common, dire need … to develop water sources that will allow our communities to thrive for generations to come. And we share the sincere belief that we can accomplish more good for each of our communities – and for the whole of West Texas and its smaller municipalities – by working in concert with one another rather than in conflict against one another. This is true politically; we need the voices of all of West Texas’ state representatives and state senators speaking in unison if we are to be heard above the chorus of elected officials from more populous areas east of I-35. This is true financially; combining resources is the wisest use of taxpayers’ dollars. It ensures we don’t duplicate the need for items such as engineering services or infrastructure, and it allows us to stretch our dollars further in reaching even farther out to the most reliable water sources. And this is true regionally. We are neighbors; what’s good for San Angelo, Abilene and Midland is good for Ballinger, Robert Lee, Big Spring, Coleman and a whole host of small towns throughout West Texas. Frankly, Abilene and Midland need San Angelo to make this quest for more water work. Likewise, San Angelo needs them. Mayor Morrison and I urge this Council and our citizens to continue to support this regional effort. It may well be the engine for ensuring that San Angelo and our neighbors have continued access to the most essential and the most precious natural resource a community and its people need.

Daniel Valenzuela, City Manager City of San Angelo

Mayor Morrison further clarified when the project was presented in April 2011, Council Members were aware there would be several phases in this process, specifically noting the confidentiality of the project research. He expressed had the expenditure issue been presented to Council, the expenditure would have been approved due to the nature and dire straits of the City’s need for water. Mayor Morrison noted Councilmember Farmer was also in support of the partnership, as written in her letter released to the public. He apologized for the oversight and noted the item has been presented on the agenda providing full transparency to the public. Councilmember Wardlaw requested clarification regarding the caption as listed on the draft agenda and final agenda noting he considered the caption to be too broad and general. Referencing Councilmember Farmer’s letter, Councilmember Wardlaw stated she alleged there were recent modifications made to 2012 minutes noting tampering with a government documents is a felony offense. He suggested the City Clerk provide clarity as to whether the minutes were modified, and if modified, present those modifications whether grammatical or substantiated. City Clerk Alicia Ramirez explained administrative changes to the minutes are common; however, substantial changes made to a set of minutes previously approved by the City Council are not made without submitting such changes to the City Council for final review and approval.

Responding to the question regarding the caption wording, Mr. Valenzuela informed it is common for numerous changes between the draft agenda document to the final published form. He noted the individuals involved included the City Attorney and Assistant City Manager/Chief Financial Officer Michael Dane. Mr. Valenzuela noted the caption, as written, was to ensure staff received specific instruction and approval to proceed with the payment of expenditure associated with Phase I on the interlocal agreement as well as providing further direction to proceed with future expenditures.

Minutes Page 357 September 17, 2013 Vol. 104 Mr. Valenzuela further explained the comment regarding previous unauthorized expenditures for furniture noting the unauthorized expenditure for the partnership happened prior to the furniture issue. He remarked City procedures were not followed on the partnership contract; stating these were two totally different issues.

General discussion was held on Councilmember Farmer’s access to various documents pertaining to the Phase I expenditures, related dates the information was available, and Ms. Farmer’s complaints addressed in her letter regarding accessibility to the documents.

Councilmember Fleming commented on Councilmember Farmer’s statement regarding Council conducting an illegal executive session meeting on September 3, 2013 noting and clarifying Ms. Farmer was aware of the second executive session but chose not to attend. He spoke in support of the partnership between Midland and Abilene. He acknowledged staff’s oversight of the expenditures; however, Mr. Valenzuela explained the oversight in executive session, which Ms. Farmer chose not to attend. Councilmember Fleming questioned Ms. Farmer’s press release noting questionable ethical behavior. He further commented staff did apprise Council of the $3M project costs during the last executive session.

Motion, to authorize funding and payment for City’s proportionate share of costs incurred for services pursuant to the interlocal agreement between cities of Abilene, Midland and San Angelo, effective April 9, 2011 (West Texas Water Partnership), and ratification of all actions already taken and payments made pursuant to said interlocal agreement since its effective date, direction to staff to present quarterly reports, to include Phase I $262,540.00 only, and with the stipulation any future expenditures, including Phase II, will be presented to City Council for review and approval, was made by Councilmember Silvas and seconded by Councilmember Fleming.

Mr. Dane explained the various cost associated with Phase I in the amount of $262,540 and Phase II at an estimated cost of $1,016,783 of the project. He further noted the documents should remain confidential as outlined in the agreement, staff will seek reimbursement of funds from City of San Angelo Development Corporation, as well as provide quarterly updates.

Responding to a question from Councilmember Farmer, Mayor Morrison expressly requested Ms. Farmer maintain the confidentiality of the interlocal agreement as it pertains to subject matters explicitly discussed in Executive Session.

Councilmember Farmer left the meeting at 10:44 a.m. and returned at 10:48 a.m.

Public Comments were made by Citizens Jim Turner, JB Hall, Steve Salmon, Gloria Dewitt, and Gary Cortese,

Mayor Morrison further clarified and as a policy any future contracts will not be signed by the City Manager unless the contract has been reviewed and approved by the City Attorney. He also clarified the motion on the floor was explicitly to resolve and take action on Phase I expenditures.

A vote was taken on the motion on the floor. AYE: Morrison, Fleming, Self, Silvas, Vardeman, and Farmer. NAY: Wardlaw. Motion carried 6-1.

Motion, to approve future funding for Phase II at an estimated cost of $1,016,783, and to continue to be a partner in the West Texas Water Partnership, and with the understanding any future payments will be presented to City Council for discussion and approval, was made by Councilmember Fleming and seconded by Councilmember Silvas.

Responding to a question from Councilmember Vardeman, Mayor Morrison suggested handling further discussion, not only in retrospect but as to the future of the matter, in executive session. Mr. Vardeman concurred.

Mr. Valenzuela suggested the project engineer present the information to Council.

After further discussion and in conclusion, Councilmember Silvas withdrew his motion, and Councilmember

Minutes Vol. 104 September 17, 2013 Fleming his second based on the impending executive session discussion.

City Attorney Lysia H. Bowling clarified the item will remain open until the second part of the item, Phase II, is discussed and approved. Council concurred.

RECESS

At 11:06 A.M., Mayor Morrison called a recess.

RECONVENE

At 11:24 A.M., Council reconvened, and the following business was transacted:

DISCUSSION OF NATURALLY OCCURRING RADIOACTIVE MATERIAL AS IT RELATES TO THE HICKORY GROUNDWATER SUPPLY PROJECT

Water Utilities Director Ricky Dickson presented background information. A copy of the presentation is part of the Permanent Supplemental Record. He introduced Dr. Ian Hamilton and Mr. Rick Jacoby. They provided samples of various materials containing radioactive materials and readings.

General discussion was held on the number of such type of treatment plants in Texas; piping becoming radioactive due to the scale build up within the pipes, which would be scoured or scaled which will contain trace amounts of radioactive material; radium in water heaters, if water is not treated, no regulatory conditions exist regarding; DISCUSSION AND POSSIBLE ACTION ON MATTERS RELATED TO THE 19TH STREET SIDEWALK PROJECT Requested by Councilmember Farmer, Survey Supervisor Ryan Ward presented background information. A copy of the presentation is part of the Permanent Supplemental Record. Mr. Ward provided two options and requested direction on which side to place the sidewalk – north or south side of 19th Street. Public comments were made by Citizens Jerry Sea and Tim Davenport-Herbst, Motion, to add the 19th street project to the CIP, to direct staff to design and present final costs, with the understanding the sidewalk will be installed on the southside of 19th street, was made by Councilmember Self and seconded by Councilmember Vardeman. Responding to a question from Councilmember Farmer, Assistant City Manager/Chief Financial Officer Michael Dane stated funding will be allocated from the $1.7M capital improvement plan budget, minus fire truck and cemetery allocation. He noted the cost will vary based on acquiring ROW and constructions materials. A vote was taken on the motion on the floor. Motion carried unanimously. Councilmember Self left the meeting at 12:10 p.m. and did not return. RECESS At 12:14 P.M., Mayor Morrison called a recess. RECONVENE At 12:43 A.M., Council reconvened, and the following business was transacted: EXECUTIVE/CLOSED SESSION At 12:43 P.M., Council convened in Executive Session under the provision of Government Code, Title 5. Open Government; Ethics, Subtitle A. Open Government, Chapter 551. Open Meetings, Subchapter D. Exceptions to Requirement that Meetings be Open, Section 551.071(2) to consult with attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter regarding the West Texas Water Partnership; Section

Minutes Page 359 September 17, 2013 Vol. 104 551.072 to deliberate the purchase, exchange, lease, or value of real property related to 1) proposed Fire Station, 2) Lake Nasworthy area, and 3) West Texas Water Partnership; and, Section 551.074(1) to deliberate the evaluation of the City Manager.

RECESS

At 1:58 P.M., Mayor Morrison called a recess.

RECONVENE At 2:09 P.M., Council reconvened, and the following business was transacted: PRESENTATION OF AND POSSIBLE ACTION REGARDING FINAL DRAFT OF PLANNING DOCUMENT FOR LAKE NASWORTHY SUBDISTRICT, AS PREPARED BY GATEWAY PLANNING Interim Director of Development Services AJ Fawver, Gateway Planning Principal Scott Polikov, and Dan Martin presented background information. Staff will present final draft at a future meeting setting the planning document for final City Council review and approval. A copy of the presentation is part of the Permanent Supplemental Record. Mayor Morrison suggested Council consider action at a future meeting. Council concurred. POSTPONEMENT OF POSSIBLE ACTION TO AMEND THE 2009 SAN ANGELO COMPREHENSIVE PLAN, BY INCORPORATING THE LAKE NASWORTHY SUBDISTRICT PLANNING DOCUMENT, AS PREPARED BY GATEWAY PLANNING Mayor Morrison suggested postponing the item to a future meeting. Council concurred. SECOND PUBLIC HEARING AND ADOPTION OF AN ORDINANCE LEVYING PROPERTY TAXES FOR THE CITY OF SAN ANGELO FOR THE 2013 TAX YEAR AN ORDINANCE FIXING AND LEVYING AD VALOREM TAXES FOR THE CURRENT TAX YEAR FOR THE USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT OF THE CITY OF SAN ANGELO, TEXAS, FOR THE 2013-2014 BUDGET YEAR; PROVIDING FOR THE ASSESSMENT AND COLLECTION THEREOF; PROVIDING WHEN THE TAX SHALL BECOME DUE; PROVIDING WHEN THE TAX SHALL BECOME DELINQUENT; PROVIDING FOR EXEMPTIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR PUBLICATION ON THE CITY OPERATED WEB SITE; AND, PROVIDING FOR AN EFFECTIVE DATE. THE PROPERTY TAX RATE WILL BE INCREASED BY THE ADOPTION OF A TAX RATE OF 0.776/$100, WHICH IS EFFECTIVELY A 4.75% PERCENT INCREASE IN THE TAX RATE Budget Manager Morgan Chegwidden presented background information and explained the benchmark rate language as required by state law. Mayor Morrison opened the floor for public input. No public comment was made. Mayor Morrison closed the public comment period. Motion, to adopt the Ordinance, as presented, was made by Councilmember Farmer and seconded by Councilmember Vardeman. Motion carried unanimously. POSTPONEMENT OF APPROVAL OF AN AMENDMENT TO VISION PLAN COMPONENT OF THE SAN ANGELO COMPREHENSIVE PLAN UPDATE ADOPTED IN 2009, SPECIFICALLY PROPERTIES LOCATED WITHIN AN APPROXIMATELY 1,800 FOOT RADIUS OF THE INTERSECTION OF ARMSTRONG STREET AND 28TH STREET IN NORTH-CENTRAL SAN ANGELO Mayor Morrison suggested postponing the item to a future meeting. Council concurred. DISCUSSION AND POSSIBLE ACTION ON MATTERS RELATED TO THE FISCAL YEAR 2013-2014 BUDGET TO INCLUDE:

Minutes Vol. 104 September 17, 2013 Budget Manager Morgan Chegwidden presented background information. A copy of the presentation is part of the Permanent Supplemental Record.

• Development Corporation Funds Ms. Chegwidden informed the corporation has two funds: 72% for community project ballot funds and 28% for other projects. General discussion was held on the advertising budget, the increased overhead for administration, possible funding for project maintenance, analyzing the director’s liability insurance, lobbyist fees, e.g. wind energy, Chamber of commerce, Economic Development duplication of efforts, Downtown San Angelo, Inc. allocation, training/workshops, and the Standard Times 40 and under allocation. Mr. Schneeman commented on the targeted industries and noted staff concentrates on other industries, thereby keeping a diversified economic development. Mayor Morrison suggested the Development Corporation review the recommendations and possibly suggest some reductions.

• Stormwater Fund • Wastewater transfers

Assistant City Manager/Chief Financial Officer Michael Dane explained the fee structure noting the fee should be referred to as a transfer versus a PILOT fee. Mr. Chegwidden provided a brief explanation, as provided through the Texas State Comptroller, regarding changes made to the budget. Mayor Morrison requested the item be brought back in the form of an ordinance with various options to reduce the fee line item.

• General capital projects • Other items as needed

RECESS

At 3:19 P.M., Mayor Morrison called a recess.

RECONVENE

At 3:35 P.M., Council reconvened, and the following business was transacted:

DISCUSSION AND SEEKING DIRECTION AND APPROVAL OF CITY COUNCIL RELATED TO THE ALLOCATION OF THE $812,953 CONTINGENCY FUNDS IDENTIFIED IN THE PROPOSED FY 2013/14 BUDGET Human Resources Director Lisa Marley presented background information. A copy of the presentation is part of the Permanent Supplemental Record. Mayor Morrison scenario 1 Councilmember Vardeman ; what happens to the monies when a position is vacated to hiring an individual; as well as assist with the employees pay off, and excess balance which eventually goes to fund balance. Scenario 1 Councilmember Farmer scenario 1; using the rainy day fund to pay insurance Mayor Morrison insurance will be determined later Motion, to approve Scenario 1, as presented, was made by Councilmember Silvas and seconded by Councilmember Vardeman. Police Chief Tim Vasquez expressed his concern regarding the increased insurance premiums and whether the pay increase would be comparable to the insurance increase.

Minutes Page 361 September 17, 2013 Vol. 104 Marley, as we continue our Wellness plan, then the City may experience lower premiums as we, as an organization, become healthier. A vote was taken on the motion on the floor. Motion carried unanimously. APPROVAL OF THE FY 2013/14 EMPLOYEE HOLIDAY SCHEDULE AND ANY ACTION IN CONNECTION THERETO Human Resources Director Lisa Marley presented background information. Motion, to approve the schedule and utilize fiscal year versus calendar year, as presented, was made by Councilmember Silvas and seconded by Councilmember Vardeman. Motion carried unanimously. DISCUSSION AND SEEKING DIRECTION OF CITY COUNCIL RELATED TO THE WATERING OF CITY PARKS, SPORTS FIELDS, SANTA FE GOLF COURSE, AND FAIRMOUNT CEMETERY Horticulturist Roger Havlak presented background information. A copy of the presentation is part of the Permanent Supplemental Record. General discussion was held on continuing to irrigate City sites that are currently receiving supplemental irrigation; increasing or decreasing the overall number of irrigated sites; and should the city enter into Drought Level III, whether to continue irrigating park systems, sports fields, Santa Fe Golf Course, or Fairmount Cemetery. Council suggested approval for a 12 month period, provide further notice by City Council, or designate other areas as City Council feels appropriate. Further discussion was held on the various sites, dead tree removal, maintaining trees, and specified watering areas. City Manager Daniel Valenzuela suggested staff present options to City Council on possible solutions. Responding to a question from Council, Water Utilities Director Ricky Dickson stated the City’s current water supply is at 15-month water supply level. ADOPTION OF A RESOLUTION NOMINATING CANDIDATE(S) ELIGIBLE FOR A POSITION ON THE BOARD OF DIRECTORS OF THE TOM GREEN COUNTY APPRAISAL DISTRICT FOR THE 2014 - 2015 TERM OF OFFICE City Clerk Alicia Ramirez presented background information. Mayor Morrison suggested nominating the existing members: John Begnaud, John Conn, Russell DeVore, Louis Gomez, and Bob Reeves. Council concurred. Motion, to adopt the Resolution, as presented, was made by Councilmember Vardeman and seconded by Councilmember Farmer. Motion carried unanimously. POSTPONEMENT OF APPROVAL OF AN AMENDMENT TO VISION PLAN COMPONENT OF THE SAN ANGELO COMPREHENSIVE PLAN UPDATE ADOPTED IN 2009, SPECIFICALLY PROPERTIES LOCATED SOUTH FROM THE INTERSECTION OF GRAND CANAL ROAD AND US HIGHWAY 277, SOUTH TO THE CITY LIMIT LINE, AND PROPERTIES LOCATED JUST EAST OF THE CITY LIMITS LINE, BUT OUTSIDE THE CITY LIMITS IN SOUTHERN SAN ANGELO Mayor Morrison suggested postponing the item to a future meeting. Council concurred. PRESENTATION OF THE CITY OF SAN ANGELO DEVELOPMENT CORPORATION (COSADC) CALENDAR YEAR 2012 ANNUAL REPORT AND DISCUSSION AND POSSIBLE ACTION REGARDING GOALS, OBJECTIVES, AND PROCEDURES FOR COSADC Mayor Morrison suggested postponing the item to a future meeting. Council concurred. POSTPONEMENT OF A FIRST PUBLIC HEARING AND INTRODUCTION OF AN ORDINANCE AMENDING CHAPTER 12 PERTAINING TO MOBILE HOME REGULATIONS OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO

Minutes Vol. 104 September 17, 2013 AN ORDINANCE AMENDING CHAPTER 12 “PLANNING & DEVELOPMENT”, ARTICLE 12.500 “MOBILE HOME REGULATIONS”, OF THE SAN ANGELO CODE OF ORDINANCES BY AMENDING THE TITLE OF ARTICLE 12.500 TO READ, “MANUFACTURED HOME AND MOBILE HOME REGULATIONS”; RESTATING SECTION 12.503 “SKIRTING” BY ADDING MANUFACTURED HOMES AND PROVIDING AN EXCEPTION FOR LICENSED DEALERSHIPS AND RETAILERS; AMENDING SECTION 12.504 “TEMPORARY MOBILE HOME INSTALLATION” BY AMENDING THE SECTION TITLE TO “TEMPORARY MANUFACTURED HOME, MOBILE HOME OR BUILDING INSTALLATION”, AND RESTATING SUBPARAGRAPHS (a) AND (c) OF SAID SECTION TO REFERENCE MANUFACTURED HOME; PROVIDING FOR SEVERABILITY, PROVIDING FOR A PENALTY AND PROVIDING FOR AN EFFECTIVE DATE Mayor Morrison suggested postponing the item to a future meeting. Council concurred.

FOLLOW UP AND ADMINISTRATIVE ISSUES

CONSIDERATION OF MATTERS DISCUSSED IN EXECUTIVE/CLOSED SESSION

Mayor Morrison referred to West Texas Water Partnership noting Council has acted on Phase I and Council will determine further negotiation with the group based on their meeting tomorrow; specifically if San Angelo is to remain in the partnership and to make sure San Angelo is receiving and contributing their one third.

APPROVAL OF VARIOUS BOARD NOMINATIONS BY COUNCIL AND DESIGNATED COUNCILMEMBERS:

Public Art Commission: Lori Francks (SMD4) to a 1st full term April 2015 Zoning Board of Adjustment: Louis Rork (SMD5) to an unexpired term January 2014

Motion, to approve various board nominations by Council and designated Councilmembers, was made by Councilmember Farmer and seconded by Councilmember Silvas. Motion carried unanimously.

APPROVAL OF MAYOR MORRISON’S NOMINATION AND APPOINTMENT TO SERVE ON THE PORTS-TO-PLAINS TRADE CORRIDOR COALITION

Mayor Morrison informed of the quarterly meeting held in October 2013. Offering Councilmember Farmer the opportunity to step down, Ms. Farmer chose not to step down and wished to complete her two year term. Motion, to remove Councilmember Farmer and nominate and appoint Mayor Morrison as the Board of Director representative, was made by Councilmember Silvas and seconded by Councilmember Fleming. AYE: Morrison, Fleming, Self, Silvas, and Vardeman. NAY: Wardlaw, and Farmer. Motion carried 4-2.

ANNOUNCEMENTS AND CONSIDERATION OF FUTURE AGENDA ITEMS

City Manager Daniel Valenzuela distributed the proposed Date, 2013 Agenda and solicited Council comments and suggestions.

Councilmember Wardlaw requested an update on the following budget items: Worker’s comp, vehicle allowance, and art council increase.

Councilmember Fleming requested an update on the October 1 meeting regarding the Red Arroyo Project, including all presenters.

Mayor Morrison requested an Executive Session item regarding the policy of the City Council pertaining to performing duties, including the Code of Conduct and discussion regarding breach of conduct and ethics.

Mayor Morrison suggested conducting a Special Meeting next Tuesday, September 24, 2013, to discuss and approve the postponed items from today’s meeting. Council concurred.

The Regular City Council meeting on Tuesday, October 15, 2013, will be held at 5:30 P.M.

ADJOURNMENT

Minutes Page 363 September 17, 2013 Vol. 104 Motion, to adjourn, was made by Councilmember Vardeman and seconded by Councilmember Silvas. Motion carried unanimously.

The meeting adjourned at 4:41 P.M.

THE CITY OF SAN ANGELO ___________________________________ Alvin New, Mayor

ATTEST: _______________________________ Alicia Ramirez, City Clerk In accordance with Chapter 2, Article 2.300, of the Official Code of the City of San Angelo, the minutes of this meeting consist of the preceding Minute Record and the Supplemental Minute Record. Details on Council meetings may be obtained from the City Clerk’s Office or a video of the entire meeting may be purchased from the Public Information Officer at 481-2727. (Portions of the Supplemental Minute Record video tape recording may be distorted due to equipment malfunction or other uncontrollable factors.)

Minutes Vol. 104 September 17, 2013

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Background Memo VM-04-13 Ambulance Remounts

Memo

Date: September 9, 2013 To: Councilmembers From: Ryan Kramer, Vehicle Maintenance Subject: Agenda Item for October 1, 2013 Contact: Ryan Kramer, Vehicle Maintenance - 657-4329 Caption: Consent

Consideration of awarding HGAC quote VM-04-13 for two ambulance box remounts service ($72,900), and authorizing the City Manager or designee to execute any necessary related documents.

Summary: A quote was sought and received from Frazer, LTD through the Houston-Galveston Council of Governments (HGAC) contract number AM-10-12 for the removal, refurbishing, and remounting of existing ambulance boxes already used by the San Angelo Fire Department. The Houston-Galveston Council of Governments is a state-wide, competitively bid purchasing cooperative. Vendors submit pricing based on a set of published specifications, and are awarded contracts based on their submissions and their applicability to award guidelines. This process is very similar to the City’s Request for Bid process, but saves the City money associated with the logistics of the formal bid process. As members of HGAC, the City of San Angelo can purchase off these competitively bid contracts as allowed by state law.

History: The City has established a replacement cycle for ambulance chassis of two per year. This cycle replaces each ambulance chassis and the refurbishing of the patient boxes at approximately five year intervals to ensure the department continues to operate reliable emergency transportation vehicles. Existing City-owned ambulance boxes are removed, cleaned, updated, and remounted on the new chassis. Two replacement ambulance chassis were previously approved by council on March 5, 2013, have been purchased, and are waiting to be fitted. Financial Impact: The City will purchase the remount service from Frazer ($72,900) off HGAC contract #AM-10-12 from capital account 501-9000-800-07-42. Total budget for the project is $156,263, which includes the refurbishing of ambulance boxes and replacement of equipment used in the operation of ambulance services. Related Vision Item: NA

City of San Angelo

Background Memo VM-04-13 Ambulance Remounts

Other information/Recommendation: Staff recommends awarding the bid to Frazer, LTD (Houston, TX) through HGAC contract # AM 10-12. Attachments: None Reviewed by: Brian Dunn, Fire Chief

Adopted: 5/30/03 Revised: 6/21/10

Click here for instructions. City of San Angelo

Memo Date: September 18, 2013

To: Mayor and Councilmembers

From: Ricky Dickson, Water Utilities Director

Subject: Agenda Item for October 1, 2013 Council Meeting

Contact: Ricky Dickson; 657-4209

Caption: Consent Item

Consideration of awarding RFB WU-18-13b Ferric Chloride bid to Pencco, Inc. (San Filipe, Tx) in the amount of $387,200.00 annually for ferric chloride coagulant for use in the Water Treatment Plant.

Summary: Bids have been received from 3 suppliers for the purchase of ferric chloride for use at the water treatment plant. The low bid was submitted by Pencco, Inc. of San Filipe, Texas. Bids were also received from Kemira of Lawrence, KS and PVS Technologies, Inc. of Detroit, MI.

History: Ferric Chloride is the primary coagulant used in the treatment of drinking water at the City’s Water Treatment Plant. This chemical causes suspended solids to clump together and settle out during the treatment process.

Financial Impact: Total estimated annual expenditure of $387,200.00. Budgeted within the Water Treatment Plant Operating Budget.

Related Vision Item

(if applicable):

na

Other Information/ Recommendation:

Staff recommends the bids be accepted and the City Manager be authorized to execute the contract documents.

Attachments: Bid Tabulation

Presentation: None.

Publication: None.

Reviewed by Director:

Ricky Dickson, Water Utilities Director; 657-4209

Approved by Legal:


Click here for instructions. City of San Angelo



From: Ricky Dickson, Water Utilities Director


Contact: Ricky Dickson; 657-4209

Caption: Consent Item

Consideration of jointly awarding RFB WU-18-13a LAS (Liquid Ammonium Sulfate) bid to Chameleon Industries, Inc. (Mesquite, Tx) and to Pencco, Inc. in the total annual combined amount of $41,172.00 for LAS for use in the Water Treatment Plant.

Summary: Bids have been received from 3 suppliers for the purchase of LAS for use at the water treatment plant. The same low bid was submitted by both Chameleon Industries, Inc. and Pencco, Inc. Chameleion quoted a 48 hour delivery time and Pencco quoted 3+ days delivery with a 1.5% discount if the invoice is paid within 10days. In order to provide the city with the ability to take advantage of the discount but to also provide the city with an additional vendor, it is recommended that the bid be awarded to both vendors. By awarding to both vendors, the 48 hour delivery time quoted by Chameleon can be used if delivery time becomes an issue with Pencco.

History: Liquid Ammonium Sulfate (LAS) is combined with chlorine to disinfect drinking water at the city’s water treatment plant. When combined, these chemicals are used to provide both the initial disinfection of the water and residual disinfection throughout the distribution system.

Financial Impact: Total estimated annual expenditure of $41,172.00. Budgeted within the Water Treatment Plant Operating Budget.

Related Vision Item

(if applicable):

na


Staff recommends that both bids be accepted and the City Manager be authorized to execute the contract documents.

Attachments: Bid Tabulation

Presentation: None.

Publication: None.


Ricky Dickson, Water Utilities Director; 657-4209

Approved by Legal:

Description Approx Qty (Pounds)Unit Price / per Pound Extended Price

Unit Price / per Pound Extended Price




Liquid Ammonium Sulfate 438,000.00 $ 0.102 $ 44,676.00 $ 0.094 $ 41,172.00 $ NO Bid $ 0.094 $ 41,172.00 $ NO Bid

(Time is of the Essense) Delivery Days2-3 days

ARO 48 hrs 3+ days

Ferric Chloride Coagulant 3,200,000.00 $ NO Bid $ NO Bid $ 0.159 $ 508,800.00 $ 0.121 $ 387,200.00 $ 0.129 $ 412,800.00

(Time is of the Essense) Delivery Days NA 2-3 days 3+ days 3 daysPiggy Back Option No NA No NA No

Payment Terms 0% N30 N30 N30 1.5% 10/N30 0% N30

Procurement Card No NA Yes NA No

Procurement Co-Op No NA No No No

DescriptionUnit Price / per Pound Extended Price

$ 0.0926 $ 40,554.42 $ 0.1192 $ 381,392.00

Bidder's List:Brenntag Southwest, Inc. Houston, TXChameleon Mesquite, TXDPC Industries Sweetwater, TxEagle Labs DeSoto, TxGeneral Chemical Syracuse, NYGulbrandsen Technologies Phillipsburg, NJHarcros Chemical, Inc. Dallas, TxPencco Inc. San Filipe TxSouthern Ionics West Point, MSSouthern Water Consultants Decatur, ALTexas Water Treatment Services Bridgeport, TXUnivar USA Redmond, Wa

PVS Technologies, Inc.KemiraBrenntag Chameleon

Price @ 1.5% discount

Liquid Ammonium SulfateFerric Chloride Coagulant

Pencco, Inc

CITY OF SAN ANGELOBID TAB

WU-18-13 Water Treatment Chemicals/September 4, 2013; 2:00pm

Pencco, Inc


City of San Angelo


To: Mayor and Council Members

From: Teresa Covey, Interim Emergency Management Coordinator


Contact: Teresa Covey, Emergency Management, 325-657-4230

Caption: Consent

Consideration of accepting the FY2013 Emergency Management Performance Grant (EMPG) in the amount of $58,278.98 and authorizing the Mayor or City Manager to execute related documents.

Summary: The Emergency Management Department has received this annual grant from FEMA through the Texas Division of Emergency Management (TDEM) for our efforts in maintaining our advanced preparedness level.

History: The Emergency Management Department has received this grant annually to assist with the funding of the Emergency Management Department.

Financial Impact: The grant for $58,278.98 funds a portion of the Emergency Management Department.

Related Vision Item

(if applicable):

Acceptance of this grant award enables the Emergency Management Department to continue the review and maintenance process of the Emergency Operations Plan (EOP) in the event(s) of catastrophic failures of services.


Staff recommends approval for the Mayor or City Manager to sign the FY2013Emergency Management Performance Grant (EMPG) Notice of Subrecipient Grant Award.

Attachments: Notice of Sub-Recipient Grant Award Terms and Conditions

Presentation: N/A

Publication: N/A

Reviewed by Service Area Director:

Approved by Legal: City Attorney Lysia H. Bowling

City of San Angelo

Memo Date: September 18, 2013 To: Mayor and Council members From: Tina Bunnell, Finance Director Subject: Consent agenda item for October 1, 2013 Council meeting Contact: Tina Bunnell, Finance Director Caption: Approval of the Second Amendment to the Interlocal Agreement with the CVTD to

provide transit services on behalf of the City of San Angelo and authorization for the City Manager to execute all necessary documents

Summary: On September 1, 2006 the Concho Valley Transit District (CVTD) and the City of San Angelo, Texas (City) created and entered into an Interlocal Cooperation Agreement regarding the consolidation of transit services. This agenda item is a request to approve a Second Amendment to the Interlocal Agreement approved by City Council on October 20, 2009. History: City Council minutes from the previous meetings are dated May 2, 2006, October 16, 2007, August 19, 2008, October 20, 2009, and February 16, 2010, and which include prior discussion over the consolidation and interlocal agreement. Discussions regarding the benefits to be gained from the consolidation of the San Angelo Transit System and the Concho Valley Rural Transit District (CVRTD) have centered on the financial/funding, operational, technical, and legal chapters that will be involved. The Goodman Corporation (TGC) had been retained by the CVCOG through funding provided by the Texas Department of Transportation (TxDOT) to gather the necessary data and information to facilitate a smooth transition from two separate transit systems to one consolidated system that will serve the City of San Angelo and the 13 counties within the CVCOG’s planning region. The following benefits were to be derived thru the consolidation:

Better connectivity between the rural transit program and the Concho Valley 12 County Area and the San Angelo urban system; Elimination of inefficiencies in para-transit trip scheduling which currently exist in the San Angelo area;

A reduction of the City of San Angelo general fund contribution to transit services; The provision of more cost- and service-effective transit services within the City of San Angelo; and An increase in the ability to leverage both state and federal financial resources to support transit for the City of San Angelo and the Concho Valley Rural Transit District.

The CVTD has been operating the transit system since September of 2006. The local contributions were $153,280 in 2006, $198,304.68 in 2007 and $212,996.16 in 2008. The funding amount requested for 2009 was $212,996.16. On February 16, 2010, an amendment to the Interlocal Agreement increased the local contributions for 2009 to $302,996.16. The additional $90,000.00 allowed the CVTD to undertake special projects in fiscal year 2010 and since to include, but not be limited to: transit oriented development projects related to the multimodal terminal or other transit infrastructure projects, planning projects to identify needs and gaps in services in the City, and operational projects that target meeting the identified unserved or underserved areas in the incorporated area of the City. Special projects evaluation and selection will be reviewed through the City’s budget review process. The Amendment also allows the CVTD and the City to enter into an agreement for use of City space for parking of CVTD vehicles and use of available City services by CVTD. Compensation for this use will be made by the CVTD to the City in the amount of $120,000.00. This Second Amendment to the Interlocal Agreement extends the term one additional year, commencing September 1, 2013, and ending August 31, 2014. Both parties are allowed to terminate the renewal with a 90 day written notification to the other party. Financial Impact: $302,996.16 $120,000.00 in revenue for the use of City space and services

Related Vision Item:

Recommendation: Staff recommends approval of the Second Amendment to the Interlocal Agreement with the CVTD and authorization for the City Manager to execute all necessary documents. Attachments: Interlocal Agreement Amendment to the Interlocal Agreement

Second Amendment to the Interlocal Agreement October 20, 2009 Council Minutes February 16, 2010 Council Minutes

Presentation: Not applicable

Publication: Not applicable Reviewed by: Michael Dane, Assistant City Manager/CFO

City of San Angelo

Memo Date:


From: Robert Schneeman, Interim Director of Economic Development

Subject: Agenda Item for 10/3/13 Council Meeting

Contact: Robert Schneeman, Economic Development, 657-4210

Caption: REGULAR Agenda

Consideration of adopting a Resolution of the City of San Angelo, Texas, authorizing the city manager to execute an interlocal agreement with the Concho Valley Transit District (CVTD) providing for reimbursement to the City of eighty percent of costs incurred by City for construction of pedestrian transit access infrastructure improvements pursuant to the Downtown Pedestrian Improvement Plan from New Freedom Project Grant funds in the amount of $573,471, with a local match of $143,368, under project grant agreement # 51107f7084 between the Texas Department of Transportation and CVTD

Summary: The City of San Angelo in conjunction with the Concho Valley Transit District applied for and was awarded a grant in the amount of $573,471 for the construction of pedestrian improvements in the downtown San Angelo area. Construction is being performed as a part of the Downtown Pedestrian Improvement Plan project with additional funding provided by the Tax Increment Reinvestment Zone (TIRZ), which is subdivided into the North and South TIRZ, both of which are contributing to the project. The subject interlocal agreement is a one time agreement to facilitate the reimbursement of funds to the City of San Angelo by the Transit District.

History: N/A

Financial Impact: $1,198,000 of which $573,471 is grant funded and $624,529.00 is TIRZ funded

Related Vision Item

(if applicable):

N/A


Staff recommends of the agreement

Attachments: Resolution, Interlocal Agreement; and Interlocal CVTD & TXDOT Exh A

Presentation: Robert Schneeman, Interim Director of Economic Development

Publication: N/A


Robert A. Schneeman, Economic Development

Approved by Legal:

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INTERLOCAL AGREEMENT

THIS INTERLOCAL AGREEMENT, entered into this _____ day of ___________, 2013, is made

pursuant to the Texas Interlocal Cooperation Act, Chapter 791 of the Texas Government Code (the

"Act"), by and between THE CITY OF SAN ANGELO (COSA), a political subdivision of the State of Texas,

created pursuant to the Texas Local Government Code and the CONCHO VALLEY TRANSIT DISTRICT

(CVTD), an urban and rural transit district created pursuant to Chapter 458 of the Texas Transportation

Code and a political subdivision of The State of Texas, for the purpose of coordinating transit services for

the thirteen counties in the Concho Valley Council of Governments region.

RECITALS

WHEREAS, Pursuant to the Act, the COSA and CVTD are authorized to contract with eligible entities to perform governmental functions and services, including governmental functions in which the contracting parties are mutually interested;

WHEREAS, The COSA has created a North and South Tax Increment Reinvestment Zone (TIRZ) for the purpose of making infrastructure improvements;

WHEREAS, The CVTD has been awarded a Texas Department of Transportation New Freedom Grant for $573,471 to complete transit-pedestrian infrastructure improvements within the TIRZ and as described in Exhibit A, Project Grant Agreement #51107F7084;

WHEREAS, The COSA has committed funding to provide the local match for the TxDOT New

Freedom Grant in the amount of $143,368; WHEREAS, The CVTD desires to reimburse the COSA up to the grant amount of $573,471

representing 80% of local expenditures related to New Freedom pedestrian-transit access infrastructure improvements, as reflected in Exhibit A, based on the CVTD’s review of invoices, bills, and other such documentation reflecting the COSA’s adherence to all applicable federal and state certifications and assurances.

NOW THEREFORE, in consideration of the mutual covenants and conditions contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the CVTD and the COSA agree to the following terms, covenants, and conditions:

ARTICLE 1 – GENERAL CONDITIONS

STATE OF T E X A S §

§ COUNTY OF TOM GREEN §

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Section 1.01 – Documentation of Eligible Expenditures. The COSA shall compile, provide, and maintain documentation which supports the federal and state funding eligibility and the request for reimbursement for completed pedestrian-transit infrastructure improvements.

Section 1.02 – Reimbursement. The CVTD shall reimburse the COSA for eligible pedestrian-

transit infrastructure expenditures made in accordance with Exhibit A and upon presentation of documentation of eligible expenditures. The CVTD shall reimburse the COSA for its services, as delineated herein, within 15 days of the availability of New Freedom funds.

ARTICLE 2 – TERM OF AGREEMENT

Section 2.01 – Commencement and Termination Date. This Agreement will terminate twelve

(12) months from the Effective date unless terminated pursuant to the provisions of this Agreement.

ARTICLE 3 - INSURANCE AND INDEMNIFICATION

Section 3.01 - Waiver of Subrogation. The CVTD agrees to waive any and all rights of recovery, claims, actions or causes of action against the COSA, its employees, agents, elected officials and officers, for any injury, death, loss or damage that may occur to persons, property or to the Vehicles, or any personal property of such party on the Vehicles, by reason of fire, windstorm, earthquake, flood or any other risks, or any other cause that is insured under the insurance policy or policies that CVTD is required to provide or maintain under this Agreement, to the extent and only to the extent of any proceeds actually received by the CVTD, with respect thereto, regardless of cause or origin, including negligence of COSA, its employees, agents, elected officials and officers and CVTD covenants that no insurer will hold any right of subrogation against the COSA.

Section 3.02 - Waiver of Subrogation. The COSA agrees to waive any and all rights of recovery, claims, actions or causes of action against the CVTD, its employees, agents, elected officials and officers for any injury, death, loss or damage that may occur to persons or to the Vehicles, or any personal property of such party on the Vehicles, by reason of fire, windstorm, earthquake, flood or any other risks, or any other cause that is insured under the self-insurance plan or the insurance policy or policies of the COSA, to the extent and only to the extent of any proceeds actually received by the COSA, with respect thereto, regardless of cause or origin, including negligence of CVTD, its respective employees, agents, elected officials and officers, and COSA covenants that no insurer will hold any right of subrogation against the CVTD.

Section 3.03 - Insurance Requirements. The phrase "Required Policy" means each policy of insurance required to be maintained by the CVTD under the terms of this Agreement. Each Required Policy shall be written by a company satisfactory to the COSA, but in all events by a company with an A.M. Best Company financial rating of not less than A and be licensed to do business in Texas or, if the aforesaid is not available, by a company qualified to do business as a non-admitted insurer in Texas under current Texas surplus lines requirements. Notwithstanding the foregoing, the CVTD may secure insurance coverage with the Texas Municipal League. All Required Policies may contain a deductible of not more than $5,000. Such policies shall be endorsed so as to require 30 days prior written notice to the COSA in the event of cancellation, material change or intent not to renew. The CVTD shall deliver to the COSA a certificate of insurance for any Required Policy no later than the Effective Date. The required evidence of coverage shall always be deposited with the COSA. If the CVTD fails to do so, such failure may be treated as a default. In addition to any other remedy under this Agreement, COSA may purchase

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and maintain such Required Policy and the CVTD shall immediately reimburse COSA for any premiums paid or costs incurred by COSA in providing such insurance.

Section 3.04 - Indemnity Requirements for CVTD. FOR CONSIDERATION RECEIVED and to the extent permitted by law, the CVTD agrees to indemnify, save, and hold harmless the COSA, its employees, agents, elected officials, and officers from any and all claims, actions, damages, lawsuits, proceedings, judgments, or liabilities, for personal injury; death, or property damage resulting from the acts or omissions of the CVTD or acts or omissions of others under CVTD’s supervision or control arising out of the use of the Vehicles and the shuttle system. In the event of any cause of action or claim asserted by any third party, the COSA will provide the CVTD timely notice of such claim, dispute or notice. Thereafter, to the extent allowed by law, the CVTD shall at its own expense, faithfully and completely defend and protect the COSA against any and all liabilities arising from this claim, cause of action or notice. If the CVTD should fail to so successfully defend, the COSA may defend, pay or settle the claim or other cause of action with full rights of recourse against the CVTD for any and all fees, costs, expenses, and payments, including but not limited to attorney’s fees and settlement payments, made or agreed to be paid in order to discharge the claim, cause of action, dispute or litigation, to the extent allowed by law.

Section 3.05 - Indemnity Requirements for COSA. FOR CONSIDERATION RECEIVED and to the extent permitted by law, the COSA agrees to indemnify, save, and hold harmless the CVTD, its employees, agents, elected officials, and officers from any and all claims, actions, damages, lawsuits, proceedings, judgments, or liabilities, for personal injury, death, or property damage resulting from the acts or omissions of the COSA or acts or omissions of others under the COSA's supervision or control arising out of the operation of the Vehicles and the shuttle system. In the event of any cause of action or claim asserted by any third party, the CVTD will provide the COSA timely notice of such claim, dispute or notice. Thereafter, to the extent allowed by law, the COSA shall at its own expense, faithfully and completely defend and protect the CVTD against any and all liabilities arising from this claim, cause of action or notice. If the COSA should fail to so successfully defend, the CVTD may defend, pay or settle the claim or other cause of action with full rights of recourse against the COSA for any and all fees, costs, expenses, and payments, including but not limited to attorney’s fees and settlement payments, made or agreed to be paid, in order to discharge the claim, cause of action, dispute or litigation, to the extent allowed by law.

ARTICLE 4 - DEFAULT AND REMEDIES

Section 4.01 - Event of Default. Each party reserves the right, at its option, to terminate this

Agreement for cause, in the event of a default or breach of this Agreement (an "Event of Default") by the other party, by giving the other party twenty (20) days written notice of such default or breach provided the other party has not cured such default or breach within the twenty (20) day period.

Section 4.02 - Mitigation. The non-defaulting party has a duty to mitigate damages upon the occurrence of an Event of Default.

Section 4.03 - Payment by the Defaulting Party. Upon any Event of Default, the defaulting party shall pay to the non-defaulting party all costs incurred by the non-defaulting party (including court costs and reasonable attorneys' fees and expenses) in performing the defaulting party's obligations that

4

the defaulting party failed to perform, and enforcing, or advising of its rights, remedies, and recourses arising out of the Event of Default.

Section 4.04 - Other Remedies. All rights, options, and remedies of each party contained in this Agreement shall be construed and held to be cumulative, and no one of them shall be exclusive of the other, and non-defaulting party shall have the right to pursue any one or all of such remedies or any other remedy or relief which may be provided by law or in equity, whether or not stated in this Agreement.

ARTICLE 5 – LIABILITY

Section 5.01 - No Personal Liability of the CVTD. To the extent allowed by law, CVTD’s officers, elected officials, agents and employees and the Board members of the CVTD, either singularly or collectively, are not personally liable on this Agreement or for any breach thereof.

Section 5.02 - No Personal Liability of the COSA. To the extent allowed by law, the COSA's officers, elected officials, agents and employees, either singularly or collectively, are not personally liable on this Agreement or for any breach thereof.

ARTICLE 6 - MISCELLANEOUS

Section 6.01 - Right of Entry and Inspection. The CVTD will permit the COSA or the

COSA’s agents, representatives, or employees to enter and inspect the Vehicles at reasonable times and upon having given the CVTD reasonable notice of the inspection.

Section 6.02 - Force Majeure. Except for the COSA’s obligation to provide a local contribution to the CVTD, and the CVTD’s obligation to obtain insurance as required in this Agreement, the CVTD and the COSA are excused from performing any of their respective duties, obligations or undertakings under this Agreement in the event and so long as the performance of such duty, obligation or undertaking is prevented, delayed, retarded or hindered by an Act of God, epidemic, fire, hurricane, earthquake, flood, explosion, action of civil commotion, sabotage, malicious mischief, strike, lockout, action of labor unions, condemnation, governmental restriction, order of civil or military or naval authorities, embargo, impossibility of obtaining materials, or any other cause, whether similar or dissimilar to the foregoing, not within the reasonable control of the party in question. Either party entitled to such extension hereunder will give prompt written notice to the other party as soon as possible after the occurrence causing such delay asserting its claim of right to such extension and the reasons therefore.

Section 6.03 - No Waiver. No waiver by either party of any default or breach of any covenant, condition, or stipulation contained in this Agreement is a waiver of any subsequent default or breach of the same or any other covenant, condition, or stipulation of this Agreement.

Section 6.04 - Laws. The parties hereto agree to abide with all applicable laws, rules, regulations, and grant provisions of the United States, the State of Texas, and any other lawful authorities having jurisdiction.

Section 6.05 - Notices. All notices, demands, or requests from one party to another shall be in writing and shall be personally delivered, sent by mail, certified, registered, express or overnight,

5

postage prepaid, or sent by facsimile transmission, to the addresses stated in this Section, or to such other address as the party may request in writing, and are deemed to have been given at the time of delivery.

The CVTD’s address is 2801 West Loop 306, Suite A, San Angelo, Texas 76904 (for U. S. Mail) or (325) 947-8286 (for facsimile transmissions), in any case to the attention of the Director of Transportation.

The COSA's address is 72 West College, San Angelo, Texas 76903 (for U. S. Mail, express or overnight mail), or (325) 657-4335 (for facsimile transmissions), in any case to the attention of the COSA City Manager.

Section 6.06 - Parties Bound. This Agreement is binding upon and inures to the benefit

of the parties hereto and their respective legal representatives, successors, and permitted assigns.

Section 6.07 - Texas Law to Apply and Venue. This Agreement shall be construed under and, in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder, are performable in Tom Green County, Texas.

Section 6.08 - Legal Construction. In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability does not affect any other provision hereof and this Agreement will be construed as if such invalid, illegal, or unenforceable provision had never been contained herein, if consistent with the overall intent of this Agreement.

Section 6.09 - Prior Agreements Superseded. This Agreement constitutes the sole and only Agreement of the parties hereto with respect to the subject matter hereof and supersedes any prior understandings or written or oral Agreements between the parties with respect thereto.

Section 6.10 - Amendment. No amendment, modification, or alteration of the terms of this Agreement is binding unless in writing, dated subsequent to the Effective Date and executed by the CVTD and the COSA or their successors and permitted assigns.

Section 6.11 - Exhibits. All Exhibits attached to this Agreement are incorporated by reference.

Section 6.12 - Counterparts. This Agreement may be executed in any number of counterparts, and each counterpart is deemed to be an original instrument, but all such counterparts together constitute but one Agreement. A photocopy or facsimile reproduction of an original signature of a party on this Agreement binds that party to the terms, covenants and conditions of this Agreement.

Section 6.13 - Time is of the Essence. Time is of the essence in this Agreement.

Section 6.14 - Headings. The headings, captions, and arrangements used in this Agreement are for convenience only and do not affect the interpretation of this Agreement.

Section 6.15 – Discrimination. In connection with its use of the Vehicles and the operation of the transit system, neither party shall discriminate against any person, employee, or applicant for employment because of race, religion, color, or national origin.

6

Section 6.16 – Entire Agreements. The COSA and CVTD recognize that continued cooperation

and agreement regarding jointly developed passenger amenities, facilities, and programs, will require the COSA and CVTD to enter into agreements mutually beneficial to both parties. Accordingly, the COSA Manager and Director of Transportation of CVTD are authorized to enter into agreements which meet the objectives identified above, and to the extent of the budgetary resources identified herein. THIS Agreement has been executed by the parties on the date and year first above written.

APPROVED: APPROVED:

__________________________ _____________________________ Concho Valley Transit District Daniel Valenzuela, City Clerk ATTEST: ATTEST: ______________________________ __________________________ Alicia Ramirez, City Clerk

Project Grant Agreement #. 51107F7084

Concho Valley Rural Transit District State Project # NF 1101 (07) 23 Fed 5317 NF Page 1 of 7 Rev 7-27-2010

SUBRECIPIENT: Concho Valley Rural Transit District NEW FREEDOM (NF)AGREEMENT-Federal CFDA #: 20.521 http://www.cfda.gov FTA GRANT AGREEMENT #:TX-57-X023-01 PROJECT GRANT.AGREEMENT #. 51107F7084 STATE PROJECT # NF 1101 (07) 23 MASTER GRANT AGREEMENT # 517XXF7015 THE STATE OF TEXAS §

THE COUNTY OF TRAVIS §

PUBLIC TRANSPORTATION FISCAL YEAR 2011

NEW FREEDOM PROJECT GRANT AGREEMENT THIS PROJECT GRANT AGREEMENT (PGA) is made by and between the State of Texas, acting through the Texas Department of Transportation, hereinafter called the "State," and Concho Valley Rural Transit District, hereinafter called the "Subrecipient."

W I T N E S S E T H WHEREAS, Transportation Code, Chapter 455, authorizes the State to assist the Subrecipient in procuring aid for the purpose of establishing and maintaining public and mass transportation projects and to administer funds appropriated for public transportation under Transportation Code, Chapter 456; and,

WHEREAS, the Subrecipient, as a 49 U.S.C. Section 5317 New Freedom provider, submitted a Project Proposal for financial assistance to be used to provide transportation services; and,

WHEREAS, the Texas Transportation Commission has approved Minute Order Number 112258; and,

WHEREAS, the Subrecipient must execute a Fiscal Year 10 Grant Application, Part II (GA Part II) at the start of each fiscal year grant period for consideration for state and/or federal grants; and,

WHEREAS, a Master Grant Agreement (MGA) between the Subrecipient, and the State has been adopted and states the general terms and conditions for grant projects developed through this PGA.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants hereinafter set forth, the State and the Subrecipient hereto agree as follows:

A G R E E M E N T ARTICLE 1. GRANT TIME PERIOD This PGA becomes effective when fully executed by both parties, but in no event before September 1, 2010. This PGA shall remain in effect until May 31, 2013, unless terminated or otherwise modified in an Amendment. This PGA will not be considered fully executed until both parties have executed a MGA, and the Subrecipient has submitted the GA Part II (federal funds only) to the State. The time period of this PGA cannot be extended past the



MGA without exception. Any cost incurred before or after the contract period shall be ineligible for reimbursement.

ARTICLE 2. PROJECT DESCRIPTION The Subrecipient shall commence, carry out and complete the public transportation project described in the Attachment A, Approved Project Description (Attachment A) with all practicable dispatch, in a sound, economical and efficient manner.

The Subrecipient shall carryout the public transportation project described in the Attachment A in accordance with all of the documents associated with the MGA, and with all applicable federal and state laws and/or regulations.

If applicable, the Subrecipient shall begin competitive procurement procedures by issuing an invitation for bids or a request for proposals no later than sixty (60) days after the effective date of this grant agreement for the purchase of the approved line item(s) referenced in Attachment B, Master Budget Page (Attachment B) and the Attachment C, Approved Project Budget (Attachment C). No later than sixty (60) days after the issuance of public notification, the Subrecipient shall publicly open all bids or privately review proposals. The Subrecipient shall enter into a binding agreement with a supplier no later than thirty (30) days after the opening of an acceptable bid or proposal. The Subrecipient shall notify the department in writing when it is necessary to exceed these deadlines.

ARTICLE 3. COMPENSATION The maximum amount payable under this PGA without modification is $573,471.00 in New Freedom small urban funds provided that expenditures are made in accordance with the amounts and for the purposes authorized in the Attachment A, Attachment B, and the Attachment C. The original and one copy of the invoice is to be submitted to the following address:

Delma Childress, Public Transportation Assistant Texas Department of Transportation 4502 Knickerbocker Road San Angelo, Texas 76904

ARTICLE 4. AMENDMENTS Except as noted in the MGA, changes in the scope, objectives, cost or duration of the project authorized herein shall be enacted by written amendment approved by the parties hereto before additional work may be performed or additional costs incurred. Any amendment so approved must be executed by both parties within the grant period specified in the MGA Article 1, Grant Time Period.

ARTICLE 5. SUCCESSORS AND ASSIGNS The Subrecipient binds themselves, their successors, assigns, executors and administrators in respect to all covenants of this agreement. The Subrecipient shall not sign, sublet or transfer their interest in this agreement without the written consent of the State.



ARTICLE 6. LEGAL CONSTRUCTION In case any one or more of the provisions contained in this agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision thereof and this agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

ARTICLE 7. PRIOR AGREEMENTS This agreement constitutes the sole and only agreement of the parties hereto and supersedes any prior understandings or written or oral agreements between the parties respecting the public transportation grant specifically authorized and funded under this agreement.

ARTICLE 8. INCORPORATION OF PROVISIONS Attachments are attached hereto and incorporated into this contract as if fully set forth herein. ARTICLE 9. SIGNATORY WARRANTY The undersigned signatory for the Subrecipient hereby represents and warrants that he or she is an officer of the organization for which he or she has executed this agreement and that he or she has full and complete authority to enter into this agreement on behalf of the organization. ARTICLE 10. AUDIT The state auditor may conduct an audit or investigation of any entity receiving funds from the state directly under the contract or indirectly through a subcontract under the contract. Acceptance of funds directly under the contract or indirectly through a subcontract under this contract acts as acceptance of the authority of the state auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit.

ARTICLE 11. NEPOTISM DISCLOSURE A. In this section the term “relative” means:

(1) a person's great grandparent, grandparent, parent, aunt or uncle, sibling, niece or nephew, spouse, child, grandchild, or great grandchild, or

(2) the grandparent, parent, sibling, child, or grandchild of the person’s spouse. B. A notification required by this section shall be submitted in writing to the person designated to receive official notices under this contract and by first-class mail addressed to Contract Services Section, General Services Division, Texas Department of Transportation, 125 East 11th Street, Austin Texas 78701. The notice shall specify the Subrecipient's firm name, the name of the person who submitted the notification, the contract number, the district, division, or office of TxDOT that is principally responsible for the contract, the name of the relevant Subrecipient employee, the expected role of the Subrecipient employee on the project, the name of the TxDOT employee who is a relative of the Subrecipient employee, the title of the TxDOT employee, the work location of the TxDOT employee, and the nature of the relationship. C. By executing this contract, the Subrecipient is certifying that the Subrecipient does not have any knowledge that any of its employees or of any employees of a subcontractor who are expected to



work under this contract have a relative that is employed by TxDOT unless the Subrecipient has notified TxDOT of each instance as required by subsection (b). D. If the Subrecipient learns at any time that any of its employees or that any of the employees of a subcontractor who are performing work under this contract have a relative who is employed by TxDOT, the Subrecipient shall notify TxDOT under subsection (b) of each instance within thirty days of obtaining that knowledge. E. If the Subrecipient violates this section, TxDOT may terminate the contract immediately for cause, may impose any sanction permitted by law, and may pursue any other remedy permitted by law.

IN TESTIMONY WHEREOF, the parties hereto have caused these presents to be executed in duplicate counterparts.

THE STATE OF TEXAS

Executed for the Executive Director and approved for the Texas Transportation Commission for the purpose and effect of activating and/or carrying out the orders, established policies or work programs heretofore approved and authorized by the Texas Transportation Commission. By: ___________________________________

Delma Childress, Public Transportation Coordinator

Public Transportation Division Date: _________________________________

CONCHO VALLEY RURAL TRANSIT DISTRICT

By: ______________________________ Signature of Authorized Officer

_______________________________

Typed, Printed or Stamped Name

Title: ____________________________ Date: ____________________________

List of Attachments A - Approved Project Description B - Master Budget Page C - Approved Project Budget



ATTACHMENT A

APPROVED PROJECT DESCRIPTION

Pedestrian/Transit Access Improvement Plan – a capital improvement project to remove barriers and make accessibility improvements to greater enhance connectivity for persons with disabilities to San Angelo Central Business District (CBD) bus stops and the CTVD Multimodal Terminal. This project can be found in it’s entirety in the Concho Valley Rural Transit District’s response to the FY10 Coordinated Call for Projects.



ATTACHMENT B

MASTER BUDGET PAGE

[Insert Electronic Budget Page]

Attachment E RFP Project Budget Worksheet - Cumulative Budget (FY 2011 thru 2013)

Input information in Yellow Cells

Proposer Name Concho Valley Transit District

Mark below each applicable Program Project Name:PLN

RTAPICBRD

JARC SU - Small UrbanJARC NU - Non Urban NF SU - Small Urban X Pedestrian/Tra NF NU - Non Urban

A. CAPITAL COSTS

ALI Code TDC’s Fuel Program Description if known Total Federal Fed % State State % Local Local % Other Other % TDCs TDCs % Yes /No TypeNF SU Construction Ped Access 11.93.05 $648,439.00 $518,751.00 80.0% $129,688.00 20.0% YesNF SU Contingency 11.73.04 $68 400.00 $54 720.00 80.0% $13 680.00 20.0%

Capital Subtotal $716,839.00 $573,471.00 80.0% $143,368.00 20.0%

Program Description Total Federal Fed % State State % Local Local % Other Other %

Program Description Total Federal Fed % State State % Local Local % Other Other %

Budget Total Federal Fed % State State % Local Local % Other Other % TDCs Total %Totals: $716,839.00 $573,471.00 80.0% $143,368.00 20.0% 100.00%

Summary of Local Funds

Summary of Matching Funds Note: Include all state and local funds that will be used to match the federal funds.

Source of Funds AmountsCity of San Angelo_In Kind $90,240.00City of San Angelo Cash $53 128.00

$143,368.00$143,368.00

Difference Agency has enough local funds.

$573,471.00 100.00%

$573,471.00 100.00%Total

Operating Cost

Total of Above Local FundsTotal of Local Budget Totals

Capital Cost Percentage of Budget - Federal Funds Only

B. ADMINISTRATIVE/OFFICE COSTS

C. OPERATING COSTS

Net Operating Subtotal

Gross Operating SubtotaFare Box Revenue

Administration Cost

Administrative Subtota

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7-20

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INTERLOCAL AGREEMENT

THIS INTERLOCAL AGREEMENT, entered into and effective the _____ day of ___________,

2013, pursuant to the Texas Interlocal Cooperation Act, Chapter 791 of the Texas Government Code (the

"Act"), by and between THE CITY OF SAN ANGELO (COSA), a political subdivision of the State of Texas

and the CONCHO VALLEY TRANSIT DISTRICT (CVTD), an urban and rural transit district created pursuant

to Chapter 458 of the Texas Transportation Code, for the purpose of providing for reimbursement to

COSA of a portion of funds expended for pedestrian‐transit access improvements out of New Freedom

Project Grant Funds.

RECITALS

WHEREAS, Pursuant to the Act, COSA and CVTD are authorized to contract with eligible entities to perform governmental functions in which the contracting parties are mutually interested;

WHEREAS, COSA has created a North and South Tax Increment Reinvestment Zone (TIRZ) for the purpose of making infrastructure improvements;

WHEREAS, CVTD has been awarded a Texas Department of Transportation New Freedom Grant for $573,471 to complete transit‐pedestrian infrastructure improvements within the TIRZ and as further delineated in Exhibit “A”, Project Grant Agreement #51107F7084;

WHEREAS, COSA has committed funding to provide the local match for the Texas Department of

Transportation (TxDOT) New Freedom Grant in the amount of $143,368; WHEREAS, CVTD desires to reimburse COSA up to the grant amount of $573,471 representing

80% of local expenditures related to New Freedom pedestrian‐transit access infrastructure improvements, as deliniated in Exhibit “A”, based on CVTD’s review of invoices, bills, and other such documentation reflecting COSA’s adherence to applicable federal and state certifications and assurances.

NOW THEREFORE, in consideration of the mutual covenants and conditions contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, CVTD and COSA agree as follows:

STATE OF T E X A S § §COUNTY OF TOM GREEN §

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ARTICLE 1 – GENERAL CONDITIONS

Section 1.01 – Documentation of Eligible Expenditures. COSA shall compile, provide to CVTD, and maintain documentation which supports federal and state funding eligibility and the request for reimbursement for completed pedestrian‐transit infrastructure improvements.

Section 1.02 – Reimbursement. CVTD shall reimburse COSA for eligible pedestrian‐transit

infrastructure expenditures made in accordance with Exhibit “A” upon presentation to CVTD of documentation for reimbursement. CVTD shall reimburse COSA for its eligible expenditures, as delineated herein, within 15 days of the availability of New Freedom funds.

ARTICLE 2 – TERM OF AGREEMENT

Section 2.01 – Commencement and Termination Date. This Agreement will commence on the

effective date first hereinabove written, and terminate twelve (12) months from the effective date unless earlier terminated as herein provided.

ARTICLE 3 ‐ DEFAULT AND REMEDIES

Section 3.01 ‐ Event of Default. Each party reserves the right, at its option, to terminate this Agreement for cause, in the event of a default or breach of this Agreement (an "Event of Default") by the other party, by giving the other party twenty (20) days written notice of such default or breach, provided the other party has not cured such default or breach within the twenty (20) day notice period.

Section 3.02 –Specific Performance and Mitigation of Damages. The non‐defaulting party shall have a right to specific performance; and shall mitigate damages upon the occurrence of an Event of Default.

Section 3.03 ‐ Other Remedies. All rights, options, and remedies of each party under this Agreement shall be construed and held to be cumulative, and no one of them shall be exclusive of the other, and non‐defaulting party shall have the right to pursue any one or all of such remedies or any other remedy or relief which may be provided by law or in equity, whether or not stated in this Agreement.

ARTICLE 4 – LIABILITY

Section 4.01 ‐ No Personal Liability of the CVTD. To the extent allowed by law, CVTD’s officers, elected officials, agents and employees and the Board members of the CVTD, either singularly or collectively, are not personally liable on this Agreement or for any breach thereof.

Section 4.02 ‐ No Personal Liability of the COSA. To the extent allowed by law, the COSA's officers, elected officials, agents and employees, either singularly or collectively, are not personally liable on this Agreement or for any breach thereof.

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ARTICLE 5 ‐ MISCELLANEOUS

Section 5.01 ‐ No Waiver. No waiver by either party of any default or breach of any covenant, condition, or stipulation contained in this Agreement is a waiver of any subsequent default or breach of the same or any other covenant, condition, or stipulation of this Agreement.

Section 5.02 ‐ Laws. The parties hereto agree to comply with all applicable laws, rules, regulations, and grant provisions of the United States, the State of Texas, and any other lawful authorities having jurisdiction.

Section 5.03 ‐ Notices. All notices, demands, or requests from one party to another shall be in writing and shall be personally delivered or sent by certified United States mail, postage prepaid, to the address of the party to be served stated in this Section, or to such other address as the party may designate for notice in writing, and are deemed given at the time of personal delivery or on the third day after deposit in the United States Mail.

The CVTD’s address is 2801 West Loop 306, Suite A, San Angelo, Texas 76904 (for U. S. Mail) or (325) 947‐8286 (for facsimile transmissions), in any case to the attention of the Director of Transportation.

The COSA's address is 72 West College, San Angelo, Texas 76903 (for U. S. Mail, express or overnight mail), or (325) 657‐4335 (for facsimile transmissions), in any case to the attention of the COSA City Manager.

Section 5.04 ‐ Parties Bound. This Agreement is binding upon and inures to the benefit of the

parties hereto and their respective legal representatives, successors, and permitted assigns.

Section 5.05 ‐ Texas Law to Apply and Venue. This Agreement shall be construed under and, in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder, are performable in Tom Green County, Texas.

Section 5.06 ‐ Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties hereto shall be enforceable to the fullest extent permitted by law.

Section 5.07 ‐ Prior Agreements Superseded. This Agreement constitutes the sole and only Agreement of the parties hereto with respect to the subject matter hereof and supersedes any prior understandings or written or oral Agreements between the parties with respect thereto.

Section 5.08 ‐ Amendment. No amendment, modification, or alteration of the terms of this Agreement is binding unless in writing, dated subsequent to the Effective Date and executed by the CVTD and the COSA or their successors and permitted assigns.

Section 5.09 ‐ Exhibits. All Exhibits attached to this Agreement are incorporated by reference for all purposes.

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Section 5.10 ‐ Counterparts. This Agreement may be executed in any number of

counterparts, and each counterpart is deemed to be an original, but all such counterparts together constitute but one Agreement.

Section 5.11 ‐ Time is of the Essence. Time is of the essence in this Agreement.

Section 5.12 ‐ Headings. The headings and captions herein are for convenience only and do not affect the substantive provisions of this Agreement. Section 5.13. City’s Obligations Payable out of Current Funds: Notwithstanding anything to the contrary in this Agreement, the City’s obligations under this Agreement shall be payable from current revenues available to the City. THIS Agreement has been executed by the parties on the date and year first above written. CONCHO VALLEY TRANSIT DISTRICT: CITY OF SAN ANGELO: By: _____________________________ By:_________________________________ Jeffery Sutton, Executive Daniel Valenzuela, City Manager Director, Concho Valley Council of Governments ATTEST: ATTEST: ______________________________ __________________________ Alicia Ramirez, City Clerk Date: Date: APPROVED AS TO CONTENT APPROVED AS TO FORM Michael Dane, Asst. City Manager Dan T. Saluri, Sr. Asst. City Atty.

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A RESOLUTION OF THE CITY OF SAN ANGELO, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE CONCHO VALLEY TRANSIT DISTRICT (CVTD) PROVIDING FOR REIMBURSEMENT TO THE CITY OF EIGHTY PERCENT OF COSTS INCURRED BY CITY FOR CONSTRUCTION OF PEDESTRIAN TRANSIT ACCESS INFRASTRUCTURE IMPROVEMENTS PURSUANT TO THE DOWNTOWN PEDESTRIAN IMPROVEMENT PLAN FROM NEW FREEDOM PROJECT GRANT FUNDS IN THE AMOUNT OF $573,471, WITH A LOCAL MATCH OF $143,368, UNDER PROJECT GRANT AGREEMENT # 51107F7084 BETWEEN THE TEXAS DEPARTMENT OF TRANSPORTATION AND CVTD

WHEREAS, CVTD has been awarded a Texas Department of Transportation New

Freedom Grant for $573,471 to complete transit-pedestrian access infrastructure improvements

within the City of San Angelo TIRZ and as further delineated in Exhibit “A”, Project Grant

Agreement #51107F7084;

WHEREAS, COSA has committed funding to provide the local match for the Texas

Department of Transportation (TxDOT) New Freedom Grant in the amount of $143,368;

WHEREAS, CVTD desires to reimburse COSA up to the grant amount of $573,471

representing 80% of local expenditures related to New Freedom pedestrian-transit access

infrastructure improvements

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

OF SAN ANGELO, TEXAS THAT:

The City Manager is hereby authorized to execute the Interlocal Agreement between the

City of San Angelo and the Concho Valley Transit District(CVTD) providing for reimbursement

to the City of eighty percent of costs incurred by the City for construction of pedestrian transit

infrastructure access improvements pursuant to the Downtown Pedestrian Improvement Plan

from New Freedom Project Grant Funds in the amount of $573,471, with a local match of

$143,368, under Project Grant Agreement #51107F7084 between the Texas Department of

Transportation and CVTD.

PASSED and APPROVED THIS DAY OF , 2013. CITY OF SAN ANGELO, TEXAS ATTEST: Daniel Valenzuela, City Manager Alicia Ramirez, City Clerk APPROVED AS TO CONTENT APPROVED AS TO FORM Robert Schneeman, Director of Lysia H. Bowling, City Attorney Economic Development

City of San Angelo


To: Mayor and Council Members

From: Ron Lewis, Construction and Facilities Maintenance Manager

Subject: Agenda Item for October 1, 2013, Council Meeting

Contact: Ron Lewis, Construction and Facilities Maintenance Manager, 481.2773

Caption: CONSENT Item

Consideration of adopting a Resolution of the City of San Angelo, Texas, authorizing the City Manager to execute the First Amended Fire and Security Equipment and Service Agreement to amend the term of the original agreement dated October 5, 2010, said amended term being for five (5) years, commencing October 5, 2010 and ending October 4, 2015, and certain other related provisions

Summary: RFB: CFM-08-10 currently provides a single point of contact for the City of San Angelo to meet our fire and security needs. These needs include equipment, installation, repair, monitoring and inspection services for fire alarms, security alarms, and fire sprinkler / suppression systems. This RFB provides for eventual integration of all access and security systems throughout COSA Facilities, allow Fire and Police building access with electronic entry points, and provide uniform equipment to meet our needs. History: On Wednesday, March 10. 2010, 10 am several City of San Angelo departments met at Ft. Concho Warehouse to discuss the need for a comprehensive Fire and Security equipment, installation, monitoring and inspection service. (Construction and Facilities Maintenance, Purchasing, Fire Marshall, Public Safety Department, Ft. Concho) Many items were discussed including equipment age, reliability, specifications, maintenance, repairs, inspections and monitoring throughout our many facilities. Subsequent discussions were held between various members of the same departments as required to compile the specifications and itemized lists that were provided to all bidders. Municipal Court Judge Allan Gilbert provided specifications for all security equipment and itemized lists that were provided to all bidders. All specifications and itemized lists were combined by Construction and Facilities Maintenance and Purchasing and provided to all bidders.

Financial Impact: Cost savings will be realized by reduction in monitoring costs from $20 per month or more for each facility to $10 per month for each of our facilities. Cost control will be realized for all inspections and repairs. Costs of equipment and installation for new construction has been included in the construction project funding for City Hall and the Community Development Renovations, and grant funds for improvements at the Animal Shelter. Costs for repairs, new installation or additional equipment for existing facilities is funded by the requesting department.

The initial contract is a 3-year term with two 1-year options to renew. We are recommending that the City amend the contract to provide for two additional years of service. The contract provides for an annual increase of up to 2% on materials and labor if requested by the vendor. Vendor must provide all documentation to justify an increase to COSA staff for review and approval. The Vendor has not requested any increase in labor or materials during the term of the contract. Cost reduction through staff time savings to prepare specifications, advertisement and requests bids as opposed to a case-by-case basis. Quicker response times can be realized for immediate installation needs of the many departments. Related Vision Item (if applicable): Associated with the 2007 Vision Work plan for: Financial Vision - Construction and Facilities Maintenance Staff will work with all COSA Departments ”…to ensure the highest and best use of public funds.”

Other Information/Recommendation: Staff recommends the First Amendment of RFB: CFM-08-10. Attachments: Resolution

Original Agreement RFB: CFM-08-10 First Amended Agreement RFB: CFM-08-10

Presentation: NA Publication: Public notices associated with this item were advertised in the San Angelo

Standard Times on July 30, 2010 and August 6, 2010. Reviewed by Service Area Director: Rick Weise, City Manager, September 26, 2013.

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FIRST AMENDED FIRE AND SECURITY EQUIPMENT AND SERVICE AGREEMENT

This First Amended Fire and Security Equipment and Service Agreement is made and

entered into this ____ day of __________, 2013, (but effective October 1, 2013), between the City

of San Angelo, Texas, a home-rule municipality of the State of Texas (“City”) and ASG Security, a

Texas licensed security services contractor (“Provider”).

WHEREAS, City and Texana Security, LLC, d/b/a San Angelo Security Service (“Texana”)

entered into a Fire and Security Equipment and Service Agreement on October 5, 2010, a copy of

which is set forth in Exhibit “A” hereto entitled “Fire and Security Equipment and Service

Agreement dated October 5, 2010” (“Agreement”); and,

WHEREAS, Texana has merged with ASG Security and ASG Security has assumed the

obligations of Texana under assignment of Agreement and City has consented to same by

acceptance of performance of Texana’s obligations under said Agreement by ASG Security as

Provider (“Provider”);

WHEREAS, City and Provider now desire to amend the term under Agreement by entering

into this First Amended Fire and Security Equipment and Service Agreement to amend the term to

end October 4, 2015 and certain other related provisions as agreed herein; and

WHEREAS, on _____________, 2013, the City Council of City of San Angelo authorized

the City Manager to execute this First Amended Fire and Security Equipment and Service

Agreement with Provider under the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the premises and of the mutual promises,

covenants and agreements of the parties hereinafter set forth, the parties to the provisions set forth

as follows:

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

this Agreement.

SECOND. Amendment to paragraph 1. TERM: Fire and Security Equipment and Service

Agreement dated October 5, 2010 shall be and the same is amended by striking therefrom paragraph

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1. TERM:, and by substituting in lieu thereof a new paragraph 1. TERM: to read in its entirety as

follows, to-wit:

1. TERM. The term of this Agreement shall be for five (5) years, commencing on the 5th

day of October, 2010, and ending on the 4th day of October, 2015.

THIRD. Amendment to paragraph 19. NOTICES: Fire and Security Equipment and Service

Agreement dated October 5, 2010 shall be and the same is amended by striking therefrom paragraph

19. NOTICES:, and by substituting in lieu thereof a new paragraph 19. NOTICES: to read in its

entirety as follows, to-wit:

19. NOTICES: All notices or other communications required under this Agreement

shall be in writing and shall be given by hand-delivery or by registered or certified U.S. Mail,

return receipt requested, addressed to the other party at the address indicated herein or to

such other address as a party may designate by notice given as herein provided. Notice shall

be deemed given on the day on which personally delivered; or, if by mail, on the fifth day

after being posted or the date of actual receipt, whichever is earlier.

CITY PROVIDER City of San Angelo ASG Security Attn: Ron Lewis Attn: Shane LaBarge Construction and Facilities Maintenance Mgr Director of West Texas Operations 72 West College Ave. 3501 Arden Road San Angelo, Texas 76903 San Angelo, Texas 76901 Phone: (325) 481-2773 Phone: (325) 655-3280

FOURTH. Provider shall indemnify, defend and hold harmless city and its officials,

employees and agents (collectively referred to as “indemnitees”) and each of them from and

against all loss, costs, penalties, fines, damages, claims, expenses (including attorney’s fees) or

liabilities (collectively referred to as “liabilities”) asserted by Texana Security, LLC, d/b/a San

Angelo Security Service or any of its owners arising directly or indirectly out of the Fire and Security

Equipment and Service Agreement dated October 5, 2010 or the assignment of said Agreement.

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FIFTH. All other provisions of the Fire and Security Equipment and Service Agreement

dated October 5, 2010, not specifically amended hereby, remain in full force and effect throughout

the term, commencing the 5th day of October, 2010, and ending on the 4th day of October, 2015.

(Signature Page to follow)

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THIS FIRST AMENDED FIRE AND SECURITY EQUIPMENT AND SERVICE AGREEMENT IS A FIRST AMENDMENT TO THAT ORIGINAL FIRE AND SECURITY EQUIPMENT AND SERVICE AGREEMENT BETWEEN CITY OF SAN ANGELO AND TEXANA SECURITY, LLC, d/b/a SAN ANGELO SECURITY SERVICE DATED OCTOBER 5, 2010, AND IS HEREBY MADE AND ENTERED INTO BY AND BETWEEN THE PARTIES THIS ________ DAY OF ________________, 2013.

______________________ By: Shane LaBarge Director of West Texas Operations ASG Security _________________________ By: Daniel Valenzuela City Manager City of San Angelo Approved by Resolution of City Council Dated: Attest: Alicia Ramirez City Clerk APPROVED AS TO CONTENT:

______________________________ Ron Lewis, Construction and Facilities Maintenance Manager APPROVED AS TO INSURANCE REQUIREMENTS:

______________________________ John Seaton, Risk Manager

APPROVED AS TO FORM:

______________________________ Lysia H. Bowling, City Attorney

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Attachment “A” Fire and Security Equipment and Service Agreement

between City of San Angelo and Texana Security, LLC, d/b/a San Angelo Security Services

Dated October 5, 2010

A RESOLUTION OF THE CITY OF SAN ANGELO (“CITY”) APPROVING FIRST AMENDED FIRE AND SECURITY EQUIPMENT AND SERVICE AGREEMENT TO AMEND THE TERM OF THE ORIGINAL AGREEMENT DATED OCTOBER 5, 2010, SAID AMENDED TERM BEING FOR FIVE (5) YEARS, COMMENCING OCTOBER 5, 2010 AND ENDING OCTOBER 4, 2015, AND CERTAIN OTHER RELATED PROVISIONS; AUTHORIZING THE CITY MANAGER TO EXECUTE SAID FIRST AMENDED FIRE AND SECURITY EQUIPMENT AND SERVICE AGREEMENT

WHEREAS, City and Texana Security, LLC, d/b/a San Angelo Security Service (“Texana”)

entered into a Fire and Security Equipment and Service Agreement on October 5, 2010,

(“Agreement”); and,

WHEREAS, ASG Security has assumed the obligations of Texana under the Agreement as

Provider;

WHEREAS, City and Provider now desire and mutually agree to amend the term under

Agreement to end October 4, 2015 and certain other related provisions, by entering into this First

Amended Fire and Security Equipment and Service Agreement (“First Amended Agreement”),

under the same terms and conditions as the Agreement; and

NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN ANGELO:

THAT, the City Council approves First Amended Agreement and hereby authorizes City

Manager to execute the First Amended Agreement on behalf of the City, amending the term to end

October 4, 2015 and certain other related provisions.

PASSED, APPROVED and ADOPTED on this the day of ________, 2013.

CITY OF SAN ANGELO

ATTEST: By: Daniel Valenzuela, City Manager By:

Alicia Ramirez, City Clerk

RESOLUTION FIRST AMENDED FIRE AND SECURITY EQUIPMENT AND SERVICE AGREEMENT Approved as to Content: Approved as to Form: Ron Lewis Lysia H. Bowling, Construction and Facilities Manager City Attorney

City of San Angelo


To: Mayor and Council members

From: Gloria Hale, WIC Manager

Subject: Agenda Item for 10-01-2013 Council Meeting

Contact: Gloria Hale WIC Division Manager

Caption: Consent

CONSIDERATION OF ADOPTION OF A RESOLUTION ACCEPTING A WIC GRANT FOR THE SIX MONTHS FROM OCTOBER 1, 2013 THROUGH MARCH 31, 2014, INCLUDING THAT THE CITY OF SAN ANGELO PROVIDE CERTAIN SERVICES FOR THE WIC PROGRAM; AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE A CONTRACT IN SUBSTANTIALLY THE ATTACHED FORM THEREFORE WITH THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES, FOR AN AWARD OF $409,472.00, FOR THE FIRST SIX MONTHS OF THE FISCAL YEAR; AUTHORIZATION FOR THE CITY MANAGER TO NEGOTIATE AND EXECUTE SUCH OTHER CONTRACTS OR ADDENDUMS FOR GRANT FUNDING FOR THE BALANCE OF THE FISCAL YEAR, AND ANY RELATED DOCUMENTS.

Summary:

Texas Department of State Health Services funds Texas local agency WICagencies and other grants in two separate allotments due to discretionary funding considerations in Congress.

History: For past three decades, WIC Local Agency 56 has contracted with City of San Angelo to provide nutrition education and supplemental nutrition to qualifying women and infants and children less than five years of age who are at nutritional risk.

Financial Impact: WIC is a federally funded program and uses no local tax revenues. It is not an entitlement program but a discretionary grant voted in each year by congress. First bi-annual WIC Contract allotment for FY 2014 covering October 1, 2013 through March 31, 2014: $409,472. Funding total for FY 2014: $818,944.

Related Vision Item N/A

Other Information/

Recommendation:

Staff recommends approval of accepting discretionary grant funding in WIC FY 2014 Contract.

Attachments: Resolution and WIC Contract FY 2014

Presentation: None

Publication: None

Reviewed by Robert Salas: Director Neighborhood and Family Services

Director:

Approved by Legal: Dan Saluri, 9/26/13

A RESOLUTION OF THE SAN ANGELO CITY COUNCIL ACCEPTING A WIC GRANT FOR THE PERIOD FROM OCTOBER 1, 2013 AND ENDING MARCH 31, 2014; INCLUDING THAT THE CITY OF SAN ANGELO PROVIDE CERTAIN SERVICES FOR THE WIC PROGRAM; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A CONTRACT THEREFORE WITH THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES, FOR AN AWARD OF $409,472.00, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO NEGOTIATE AND EXECUTE SUCH OTHER CONTRACTS OR ADDENDUMS FOR GRANT FUNDING FOR THE BALANCE OF THE FISCAL YEAR, AND ANY RELATED DOCUMENTS.

WHEREAS, the City Council has adopted the Budget Ordinance for the City of San Angelo, for fiscal year 2013/2014, which authorized the application for annual Women, Infant, and Children Grant (WIC) funds; and, WHEREAS, the Texas Department of State Health Service has awarded Four Hundred Nine Thousand Four Hundred Seventy-Two Dollars ($409,472.00) in funding for the time period beginning October 1, 2013 and ending March 31, 2014, payable on a reimbursement basis pursuant to terms and conditions as set forth in Contract No. 2014-045049, that includes provision for services relating to operation of the WIC program; and, WHEREAS, the WIC program is administered by the City of San Angelo, WIC Division of the Neighborhood & Family Services Department;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF SAN ANGELO, TEXAS THAT: The City Council hereby accepts the WIC grant from the Texas Department of State Health Services for time period beginning October 1, 2013 and ending March 31, 2014, including that the City of San Angelo provide certain services for the Special Supplemental Nutrition Program for Women, Infant, and Children (WIC), the grant being in the sum of Four Hundred Nine Thousand Four Hundred Seventy-Two Dollars ($409,472.00) for the time period beginning October 1, 2013 and ending March 31, 2014. The City Manager or his designee is hereby authorized to execute on behalf of the City of San Angelo Contract No. 2014-045049, with the Texas Department of State Health Service for the acceptance of said grant funds. The City Manager or his designee is further authorized to negotiate and execute such other contracts or addendums for grant funding for the balance of the fiscal year, and

any related documents.

PASSED and APPROVED THIS DAY OF , 2013.

CITY OF SAN ANGELO, TEXAS

ATTEST: Alvin New, Mayor Alicia Ramirez, City Clerk

APPROVED AS TO CONTENT APPROVED AS TO FORM Robert Salas, Mgr. Community Dev. Div. Lysia H. Bowling, City Attorney

92648-1

DEPARTMENT OF STATE HEALTH SERVICES

This contract, number 2014-045049 (Contract), is entered into by and between the Department of State Health Services (DSHS or the Department), an agency of the State of Texas, and CITY OF SAN ANGELO (Contractor), a Government Entity, (collectively, the Parties). 1. Purpose of the Contract. DSHS agrees to purchase, and Contractor agrees to provide, services or goods to the eligible populations as described in the Program Attachments. 2. Total Amount of the Contract and Payment Method(s). The total amount of this Contract is $409,472.00, and the payment method(s) shall be as specified in the Program Attachments. 3. Funding Obligation. This Contract is contingent upon the continued availability of funding. If funds become unavailable through lack of appropriations, budget cuts, transfer of funds between programs or health and human services agencies, amendment to the Appropriations Act, health and human services agency consolidation, or any other disruptions of current appropriated funding for this Contract, DSHS may restrict, reduce, or terminate funding under this Contract. 4. Term of the Contract. This Contract begins on 10/01/2013 and ends on 03/31/2014. DSHS has the option, in its sole discretion, to renew the Contract as provided in each Program Attachment. DSHS is not responsible for payment under this Contract before both parties have signed the Contract or before the start date of the Contract, whichever is later. 5. Authority. DSHS enters into this Contract under the authority of Health and Safety Code, Chapter 1001. 6. Documents Forming Contract. The Contract consists of the following: a. Core Contract (this document) b. Program Attachments: 2014-045049-001 NSS/WIC LOCAL AGENCY c. General Provisions (Sub-recipient) d. Solicitation Document(s), and e. Contractor’s response(s) to the Solicitation Document(s). f. Exhibits Any changes made to the Contract, whether by edit or attachment, do not form part of the Contract unless expressly agreed to in writing by DSHS and Contractor and incorporated herein.

92648-1

7. Conflicting Terms. In the event of conflicting terms among the documents forming this Contract, the order of control is first the Core Contract, then the Program Attachment(s), then the General Provisions, then the Solicitation Document, if any, and then Contractor’s response to the Solicitation Document, if any. 8. Payee. The Parties agree that the following payee is entitled to receive payment for services rendered by Contractor or goods received under this Contract: Name: CITY OF SAN ANGELO Address: 72 W COLLEGE AVE SAN ANGELO, TX 76903-5814 Vendor Identification Number: 17560006599013 9. Entire Agreement. The Parties acknowledge that this Contract is the entire agreement of the Parties and that there are no agreements or understandings, written or oral, between them with respect to the subject matter of this Contract, other than as set forth in this Contract. By signing below, the Parties acknowledge that they have read the Contract and agree to its terms, and that the persons whose signatures appear below have the requisite authority to execute this Contract on behalf of the named party. DEPARTMENT OF STATE HEALTH SERVICES CITY OF SAN ANGELO

By:__________________________ Signature of Authorized Official

By:___________________________ Signature

____________________________ Date

_____________________________ Date

Evelyn Delgado

______________________________ Printed Name and Title

Assistant Commissioner for Family and Community Health Services

______________________________ Address

1100 WEST 49TH STREET AUSTIN, TEXAS 78756

______________________________ City, State, Zip

512.776.7321

______________________________ Telephone Number

[email protected]

______________________________ E-mail Address for Official Correspondence

Fiscal Federal Funding Accountability and Transparency Act

(FFATA) CERTIFICATION

For Fiscal Year (FY14)

- 1 - Department of State Health Services Form 4734 – June 2012

The certifications enumerated below represent material facts upon which DSHS relies when reporting

information to the federal government required under federal law. If the Department later determines

that the Contractor knowingly rendered an erroneous certification, DSHS may pursue all available

remedies in accordance with Texas and U.S. law. Signor further agrees that it will provide immediate

written notice to DSHS if at any time Signor learns that any of the certifications provided for below were

erroneous when submitted or have since become erroneous by reason of changed circumstances. If the

Signor cannot certify all of the statements contained in this section, Signor must provide written

notice to DSHS detailing which of the below statements it cannot certify and why.

Legal Name of Contractor:

FFATA Contact # 1 Name, Email and Phone Number:

Primary Address of Contractor:

FFATA Contact #2 Name, Email and Phone Number:

ZIP Code: 9-digits Required www.usps.com

-

DUNS Number: 9-digits Required www.ccr.gov

State of Texas Comptroller Vendor Identification Number (VIN) 14 Digits

Printed Name of Authorized Representative

Signature of Authorized Representative

Title of Authorized Representative

Date

Fiscal Federal Funding Accountability and Transparency Act

(FFATA) CERTIFICATION

For Fiscal Year (FY14)

- 2 - Department of State Health Services Form 4734 – June 2012

As the duly authorized representative (Signor) of the Contractor, I hereby certify that

the statements made by me in this certification form are true, complete and correct to

the best of my knowledge.

Did your organization have a gross income, from all sources, of less than $300,000 in

your previous tax year? Yes No

If your answer is "Yes", skip questions "A", "B", and "C" and finish the certification.

If your answer is "No", answer questions "A" and "B".

________________________________________________________________________

A. Certification Regarding % of Annual Gross from Federal Awards.

Did your organization receive 80% or more of its annual gross revenue from federal

awards during the preceding fiscal year? Yes No

B. Certification Regarding Amount of Annual Gross from Federal Awards.

Did your organization receive $25 million or more in annual gross revenues from federal

awards in the preceding fiscal year? Yes No

If your answer is "Yes" to both question "A" and "B", you must answer question "C".

If your answer is "No" to either question "A" or "B", skip question "C" and finish the

certification.

________________________________________________________________________

C. Certification Regarding Public Access to Compensation Information.

Does the public have access to information about the compensation of the senior

executives in your business or organization (including parent organization, all branches,

and all affiliates worldwide) through periodic reports filed under section 13(a) or 15(d)

of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the

Internal Revenue Code of 1986? Yes No

If your answer is “Yes” to this question, where can this information be accessed?

________________________________________________________________________

If your answer is “No” to this question, you must provide the names and total

compensation of the top five highly compensated officers below.

For example:

John Blum:500000;Mary Redd:50000;Eric Gant:400000;Todd Platt:300000;

Sally Tom:300000

Provide compensation information here:

PROGRAM ATTACHMENT – Page 1

CONTRACT NO.2014-045049 PROGRAM ATTACHMENT NO. 001 PURCHASE ORDER NO. 0000399055

CONTRACTOR: CITY OF SAN ANGELO DSHS PROGRAM: NSS/WIC LOCAL AGENCY TERM: 10/01/2013 THRU: 03/31/2014 SECTION I. STATEMENT OF WORK: Contractor shall administer the Department of State Health Services (DSHS) Special Supplemental Nutrition Program for Women, Infant, and Children (WIC) to provide supplemental food instruments, nutrition education, and counseling to enhance good health care at no cost to low-income pregnant and postpartum women, infants and children identified to be at nutritional risk. Contractor shall:

A. Perform professional, administrative and clerical services necessary to determine eligibility, provide food instruments, and provide appropriate nutrition education and counseling to qualified women, infants and children in a specified geographic area. Contractor shall ensure adequate staff coverage and uninterrupted delivery of services. Services shall be performed according to the statutes, rules, policies, and directives of DSHS Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) and/or as directed by the United States Department of Agriculture (USDA) as referenced in this Program Attachment. During the term of this Program Attachment, USDA may issue regulations, instructions, policies and/or directives, which may be incorporated into the DSHS WIC Program Policy and Procedures Manual and program rules.

B. Provide services within the state boundaries of Texas and in the approved clinic locations

described in Contractor’s application.

C. Assist DSHS or USDA in the collection of data that will identify benefits of this nutrition intervention program and furnish financial, health, nutrition education and any other special reports in a timely manner as required by DSHS WIC Program’s written rules and policies for the compilation of such data.

D. Determine eligibility of applicants through assessment of their categorical income,

residence and nutritional status, and provide nutrition education and counseling to eligible participants.

E. Appoint a Contractor WIC Director/Supervisor. F. Train Contractor’s Local Agency staff.


G. Submit the following reports/plans by the due date:

1. Monthly Incentive Funding Summary Report by the 15th day of the following month; and

2. WIC Local Agency Performance Measure Report by the 15th day of the following month.

H. Conduct outreach to potential participants. I. Complete surveys as requested. J. Within five days of receiving a DSHS request for a Vendor Evaluation, Contractor shall

contact vendor applicant to set up an appointment to conduct the evaluation. Contractor shall conduct on-site evaluation, completing WIC Vendor Evaluation Forms and fax/return forms to the DSHS no later than one business day after the on-site evaluation.

K. Determine participants’ access to health care, medical care and other human services, and

make appropriate referrals. Contractor shall have a system in place to provide participants with appropriate health services or make appropriate referrals to health care providers under written agreements that ensure confidentiality of participants’ personal information.

L. Issue pre-numbered food instruments furnished by DSHS to qualified participants who

shall use such instruments to obtain specified food items from participating vendors; maintain complete accountability and security of all food instruments received from DSHS. Contractor shall be held financially responsible for all unaccounted for food instruments and/or for the redeemed value of those issued to ineligible participants. In addition, Contractor shall be held financially liable for issuance of infant formula instruments that are not authorized or prescribed according to the WIC Policy and Procedures Manual.

M. Permit DSHS or its agent to install a Very Small Aperture Terminal (VSAT) or

equivalent telecommunications equipment at all Contractor WIC clinics and administrative offices using Texas-WIN software on a network or stand alone personal computer. Installation at all Contractor permanent WIC sites is required. VSAT or other telecommunications equipment installations for new sites or sites moving from one location to another requires a minimum of 45 days notice.

N. Connect portable computers (notebook or laptop) that use Texas-WIN software daily to a

(VSAT) or other DSHS provided-telecommunications access point to transfer data to and receive updates from DSHS. Daily is defined as Monday – Friday and Saturday if WIC services are provided. Portable computers may go to any of the Contractor’s permanent WIC sites for data transfer.


O. Review the immunization records of WIC Program applicants/participants to ensure that immunizations are current. Make appropriate referrals to health care providers for necessary immunizations.

P. Offer services during extended hours of operation outside the traditional times of 8:00

a.m. to 5:00 p.m., Monday through Friday, according to the Contractor’s Annual Plan of Operations as approved by DSHS and incorporated by reference in this Program Attachment.

Q. Implement or expand Contractor’s Breastfeeding Peer Counseling program to provide

training and salary of peer counselors who assist pregnant and breastfeeding WIC participants in normal breastfeeding situations. Funding for this activity will be contingent on availability and written approval by DSHS.

R. Implement special projects according to DSHS-approved plan related to nutrition

education, outreach or breastfeeding if project is requested by Contractor and approved by DSHS. Funding for special projects is contingent upon availability and approval in writing by DSHS of the Contractor's plan for the special project.

S. Implement lactation services for WIC participants who have breastfeeding problems that

are beyond the expertise of Contractor’s local WIC staff and/or peer counselors using International Board Certified Lactation Consultants or the most qualified equivalent. Lactation services may also include Contractor’s Local WIC Agency staff training and the provision of lactation equipment. DSHS will provide written approval of Contractor’s plan to use lactation funding. Contractor’s plan shall include qualifications of any non-board certified lactation consultant, which is included in the proposal.

T. Ensure adequate staff coverage and uninterrupted delivery of WIC services if any member of Contractor’s staff is approved in writing by DSHS to participate in the DSHS Dietetic Internship program. This internship will consist of no less than 1200 hours of supervised learning experiences in a variety of nutrition-related facilities and will prepare Contractor’s selected staff member to better meet the needs of WIC participants. U. Stock DSHS- provided manual pumps, single-user electric breast pumps and multi-user

electric breast pumps, collection kits, and purchase additional sized flanges. Distribute the appropriate pumps, kits, and/or additional sized flanges to eligible WIC participants. During the term of this Program Attachment, DSHS reserves the right to withhold payment if Contractor fails to accurately complete and submit breast pump receiving reports within three (3) business days of receiving a DSHS breast pump delivery.

V. Implement or expand Contractor’s use of a Registered Dietitian (RD) who is registered

with the Commission on Dietetic Registration to provide for Contractor that includes, but not limited to: assistance with quality assurance, staff training, assistance with the Annual Nutrition Education and Breastfeeding plan, individual counseling for high-risk participants, and facilitated discussion classes.


Contractor shall comply with all applicable federal and state laws, rules, regulations, standards, and guidelines in effect on the beginning date of this Attachment as amended, including, but not limited to:

1. Uniform Federal Assistance Regulations, 7 CFR Parts 15, 15a, 15b, 246, 248, 3016, 3017 and 3018;

2. WIC Program and Farmers’ Market Nutrition Program Rules, 25 Texas Administrative Code, §§ 31.11-31.37; and

3. Child Nutrition Act of 1966, as amended, 42 USC 1786. The following documents are incorporated by reference and made a part of this Program Attachment:

1. DSHS Standards for Public Health Clinic Services, revised August 2004, or latest

revision; 2. USDA Food and Nutrition Service (FNS) Guidelines; 3. USDA FNS Instructions issued under the FNS Directives Management System; and 4. Current WIC Policy and Procedures Manual.

Within thirty (30) days of receipt of an amended standard(s) or guideline(s), Contractor shall inform DSHS, in writing, if it shall not continue performance under this Program Attachment in compliance with the amended standard(s) or guideline(s). DSHS may terminate the Program Attachment immediately or within a reasonable period of time as determined by DSHS. All activities related to WIC, including timeframes, budget, and any revisions shall be approved by DSHS. SECTION II. PERFORMANCE MEASURES The following performance measures will be used to assess, in part, Contractor’s effectiveness in providing the services described in this Program Attachment, without waiving the enforceability of any of the other terms of the contract. Contractor shall ensure:

1) An average of 95% of families a quarter who participate in DSHS WIC Program by receiving food instruments shall also receive nutrition education classes or individual counseling services to coincide with food instrument issuance;

2) Of all pregnant women who enter DSHS WIC Program, an average of 20% a quarter

shall be certified as eligible during the period of the first trimester of their pregnancy;

3) An average of 85.5% of clients a quarter who are enrolled in the DSHS WIC Program, excluding dual participants, transfer locked and/or migrant clients, shall participate as food instrument recipients each month (breast-feeding infants are also included in the client count); and


4) 98% of participants who indicate during the enrollment process for the DSHS WIC

Program that they have no source of health care shall be referred to at least one (1) source of health care at certification of eligibility.

Contractor shall submit the WIC Local Agency Performance Measure Report which describes Contractor’s efforts towards meeting performance measures. The report shall be in an approved format as provided by DSHS, and shall be completed and submitted to DSHS within fifteen (15) calendar days after the end of each month. SECTION III. SOLICITATION DOCUMENT: N/A SECTION IV. RENEWALS: DSHS may renew this contract for one renewal period if funds are available. SECTION V. PAYMENT METHOD: Cost reimbursement SECTION VI. BILLING INSTRUCTIONS: Contractor shall request payment using the State of Texas Purchase Voucher (Form B-13) and Financial Status Reports (FSR) and submit by electronic mail to DSHS Contract Development and Support Branch at [email protected] SECTION.VII. BUDGET: SOURCE OF FUNDS: CFDA # 10.557.001 DUNS NUMBER: 078547502 All categories of costs billed to DSHS WIC Program, and allocation of such costs, shall be in accordance with the “Plan to Allocate Direct Costs” (PADC) submitted by Contractor and approved by the DSHS WIC Program. This document is incorporated herein by reference and made a part of this Program Attachment. Total reimbursements will not exceed: $409,472.00. SECTION VIII. SPECIAL PROVISIONS: General Provisions, Compliance and Reporting Article I, Section 1.07, Statutes and

Standards of General Applicability, is hereby amended to include the following:

Contractor shall comply with all provisions required by implementing the regulations of the Department of Agriculture, 7 CFR Part 246, 248; Department of Justice Guidelines for Enforcement of Title VI, Civil Rights Act of 1964; 28 CFR § 50.3 and 28 CFR Part 42; and Food & Nutrition Service (FNS) directives and guidelines, to the effect that no person will, on the grounds of race, color, national origin, sex, age, or disability be


excluded from participation under any program or activity for which Contractor receives federal financial assistance from FNS; and hereby gives assurance that it shall immediately take measures necessary to implement this Program Attachment. Contractor shall compile data, maintain records and submit reports, as required, to permit effective enforcement of the nondiscrimination laws and permit authorized USDA and State of Texas personnel, during normal working hours, to review such records, books, and accounts as needed to ascertain compliance with the nondiscrimination laws. The Department of Agriculture, Food and Nutrition Service (USDA), has the right to seek judicial enforcement if Contractor violates any nondiscrimination laws. This Assurance is binding on Contractor, its successors, transferees, and assignees, as long as they receive assistance or retain possession of any assistance from the Department of Agriculture. The person or persons whose signatures appear on the Core Contract are authorized to sign this Assurance on behalf of Contractor. Contractor shall comply with all of the requirements of the current WIC Policy and Procedures Manual and Program rules as well as state and federal laws and amendments governing or regulating the WIC Program. A copy of the current WIC Policy and Procedures Manual has been made available to Contractor. The WIC Policy and Procedures Manual, and all revisions made to the WIC Policy and Procedures Manual are incorporated into this Agreement by reference. Contractor has a duty to remain familiar with the contents within the WIC Policy and Procedures Manual.

Contractor is responsible for ensuring that employees or agents acting on behalf of Contractor comply with all of the requirements of the WIC Policy and Procedures Manual, Program rules and all state and federal laws and amendments governing and regulating the WIC Program.

General Provisions, Payment Methods and Restrictions Article IV, Section 4.01, Payment

Methods, is hereby modified to include the following paragraphs:

The participant caseload will be assigned by DSHS by giving written notice to Contractor. The participant caseload is subject to change upon written notice to Contractor from DSHS with Contractor’s concurrence. Contractor assumes liability for all food costs resulting from Contractor exceeding its assigned caseload. The number of individuals served in excess of assigned caseload are not to be included in the calculation of earned administrative funds as described below. DSHS will reimburse Contractor for administrative costs incurred when determining eligibility, providing appropriate nutrition education and counseling, issuing food instruments, making participant referrals, vendor evaluation, outreach, start-up costs and general administrative support. Administrative costs will be reimbursed based on actual costs, but not to exceed the “maximum reimbursement” set out below, based upon the sum of the participants who actually receive food instruments each month plus infants who do not receive any food


instruments whose breastfeeding mothers were participants to the extent that the total so derived does not exceed Contractor’s total assigned caseload within any given month. Surplus funds (the amount by which maximum reimbursements exceed actual costs) can be accumulated and carried forward within the Program Attachment term. Surplus encumbered by September 30 shall be billed and vouchers received by DSHS no later than sixty (60) calendar days following the term of the Program Attachment. PARTICIPANTS SERVED PER MONTH MAXIMUM REIMBURSEMENT: During the term of the Program Attachment, Contractor shall earn administrative funds at the rate of $14.69 for each participant served as defined above. DSHS may pay for additional goods or services as specified in this Attachment if provided by Contractor during the term of this Attachment (but not otherwise paid during the term of this Attachment) if it is in the best interest of DSHS to do so, and funds are available. The Contractor will be notified if a change in funding occurs and will have thirty (30) days to provide written notice to the DSHS if it intends to terminate this Program Attachment. Contractor agrees that: (1) Contractor shall identify and document separately not less than 19% of total

administrative costs as expenditures directly related to nutrition education and counseling. Nutrition education and counseling expenditures shall be supported by documentation of participant attendance or non-attendance within the DSHS WIC Program.

(2) DSHS will reimburse Contractor for administrative expenses at a rate not greater

than 5.26 times the amount of properly documented expenditures for nutrition education and counseling, but not more than is earned based on actual participation not to exceed Contractor’s assigned participant caseload, plus any incentive funds allocated to Contractor by DSHS.

(3) DSHS will limit (cap) reimbursement of Contractor’s indirect costs at twenty (20)

percent applied to Contractor’s total direct salaries plus benefits reimbursed by DSHS.

(4) DSHS will identify annually to Contractor an amount of funds that shall be spent

for breastfeeding promotion. The allocation of breastfeeding funds to Contractor will be based on Contractor’s proportional share of the statewide combined total of pregnant and breastfeeding participants as reported to DSHS WIC Program.

(5) DSHS WIC Program also reserves the right to withhold a proportionate amount of

earned administrative funds when evidence exists that nutrition education and/or


breastfeeding promotion is not being provided by Contractor, or Contractor is not complying with the provisions of USDA and/or DSHS directives.

(6) DSHS reserves the right to utilize a competitive offering for the award of any

future contracts at the end of the term of this Program Attachment. (7) DSHS may amend or terminate this Program Attachment if available funds

become reduced, depleted, or unavailable during the term of the Program Attachment to the extent that the WIC Program is unable to provide administrative funding at the rate(s) stated in this Program Attachment. DSHS will provide written notification to Contractor of such fact.

(8) DSHS may pay for additional services as specified in this Program Attachment if

provided by Contractor during the term of this Program Attachment (but not otherwise paid during the term of this Program Attachment) if it is in the best interest of DSHS and DSHS WIC Program to do so. If Contractor exceeds the amount of earned administrative funds as stated above, Contractor shall continue to bill DSHS for the services provided. If additional funds become available at a later date for the provision of these services, DSHS WIC Program may pay Contractor a share of these funds.

(9) DSHS may provide incentives to Contractor’s Local WIC Agencies for

participants who are provided WIC services outside the normal traditional hours to the extent that federal funding is available.

(10) During the term of this Program Attachment, DSHS may adjust the base

reimbursement rate as defined in this Program Attachment if it is in the best interest of DSHS and the DSHS WIC Program and if administrative WIC Grant funds change.

Contractor shall indicate separately on the face of the claim for reimbursement (State of Texas Purchase Voucher, Form B-13) the costs associated with nutrition education, breast-feeding, and other administrative costs.

General Provisions, Payment Methods and Restrictions Article IV, Section 4.02, Billing

Submission is amended to include the following: Contractors shall bill the Department in accordance with the Program Attachment(s) in the form and format prescribed by DSHS. Unless otherwise specified in the Program Attachment(s) or permitted under the Third Party Payors section of this Article, Contractor shall submit requests for reimbursement or payment monthly by the last business day of the month following the end of the month covered by the bill. Contractor shall maintain all documentation that substantiates billing submissions and make the documentation available to DSHS upon request.

Contractor shall submit quarterly Financial Status Reports (FSRs) to DSHS by the last business day of the month following the end of each quarter of the Program Attachment term for Department review and financial assessment. Contractor shall submit the final FSR no later than sixty (60) calendar days following the end of the applicable term.


General Provisions, Payment Methods and Restrictions Article IV, Section 4.04, Working

Capital Advance, is not applicable to this Program Attachment. However, Contractor will be allowed the option of receiving a two (2) month cash advance in accordance with WIC Program Policy and Procedures. General Provisions, Records Retention Article VIII, Section 8.01, Retention shall be replaced with the following:

Recordkeeping requirements. Contractor shall maintain full and complete records concerning Program operations. Such records shall comply with 7 CFR Part 3016 and the following requirements:

(1) Records shall include, but not be limited to, information pertaining to financial operations, food delivery systems, food instrument issuance and redemption, equipment purchases and inventory, certification, nutrition education, civil rights and fair hearing procedures.

(2) All records shall be retained for a minimum of three years following the date of submission of the final expenditure report for the period to which the report pertains. If any litigation, claim, negotiation, audit or other action involving the records has been started before the end of the three-year period, the records shall be kept until all issues are resolved, or until the end of the regular three-year period, whichever is later. If USDA deems any of the WIC program records to be of historical interest, it may require DSHS or the Contractor to forward such records to the USDA whenever either entity is disposing of them.

(3) Records for nonexpendable property acquired in whole or in part with WIC program funds shall be retained for three years after its final disposition.

(4) All records shall be available during normal business hours for representatives of the USDA, DSHS and the Comptroller General of the United States to inspect, audit, and copy. Any reports or other documents resulting from the examination of such records that are publicly released may not include confidential applicant or participant information.

General Provisions, Notice Requirements Article X, Section 10.01, Child Abuse Reporting

Requirement, is hereby amended to include the following:

If Contractor chooses to interview a client to determine if an affirmative defense to prosecution exists, as defined by DSHS, which would allow them under the DSHS policy to not make a report of child abuse, the Contractor shall conduct these interviews in the following manner:

• For ineligible clients, the interview shall be conducted after the entire WIC visit is done. For eligible clients, the interview may occur at the point in time when all WIC activities, including communication of eligibility and individual counseling, are completed with the exception of food instrument issuance.

• The interview shall be conducted only by a competent authority or a supervisor and in a confidential setting.


• Prior to asking the client any questions, the interviewer shall inform the client that the questions have no bearing on the client’s WIC eligibility and receipt of services.

General Provisions, General Business Operations of Contactor Article XII, Section 12.02, Management and Control Systems, Item a is not applicable to this program attachment; Item c is replaced with the following:

c) effective internal and budgetary controls; determination of reasonableness, allowableness, and allocability of costs; timely and appropriate audits and resolution of any findings.

General Provisions, General Business Operations of Contractor Article XII, Section 12.06, Overtime Compensation, is not applicable to this Program Attachment. General Provisions, General Business Operations of Contractor Article XII, the last three sentences of Section 12.20, Equipment, are not applicable to this Program Attachment. General Provisions, General Business Operations of Contractor Article XII, Section 12.23, Property Inventory and Protection of Assets, is amended to include the following: Contractor shall maintain an inventory of reportable capital assets placed in the custody of the Contractor by DSHS. Contractor shall conduct an annual inventory for each administrative and

clinic site and submit to DSHS Property Management in a format and upon a delivery date designated by DSHS. Contractor shall administer a program of maintenance, repair and protection of assets under this Contract so as to assure their full availability and usefulness. In the event Contractor is indemnified, reimbursed, or otherwise compensated for any loss of, destruction of, or damage to the assess provided under this Contract, it shall use the proceeds to repair or replace said assets. General Provisions, General Business Operations of Contractor Article XII, Section 12.26, Property Acquisitions, is not applicable to this Program Attachment. General Provisions, General Terms Article XIII, Section 13.15, Amendment, is replaced with the following:

The Parties agree that the Department may unilaterally reduce funds pursuant to the terms of this Contract. Parties agree that this attachment may be amended during its term by Letters of Amendment to reflect funds awarded for special projects and to more accurately align the total Not To Exceed amount with funds the contractor may earn by contract performance. All other amendments to this Contract must be in writing and agreed to by both Parties, except as otherwise specified in the Contractor’s Notification of Change to Certain Contract Provisions section or the Contractor’s Request for Revision to Certain Contract Provisions section of this Article. Contractor’s request for certain budget revisions or other amendments must be submitted in writing, including a justification for the request, to the contract manager assigned to the Program Attachment; and if a budget revision or amendment is requested during the last quarter of the Contract or Program Attachment term, as applicable, Contractor’s written justification must include a reason for the delay in making the request. Revision or other amendment requests may be granted at the discretion of DSHS. Except as


otherwise provided in this Article, Contractor shall not perform or produce, and DSHS will not pay for the performance or production of, different or additional goods, services, work or products except pursuant to an amendment of this Contract that is executed in compliance with this section; and DSHS will not waive any term, covenant, or condition of this Contract unless by amendment or otherwise in compliance with this Article.

Fiscal Year 2014 Department of State Health Services Contract

General Provisions (Core/Subrecipient)

General Provisions (Core Subrecipient) 2014 (June 28, 2013) 1

ARTICLE I COMPLIANCE AND REPORTING ............................................................................................... 5

Section 1.01 Compliance with Statutes and Rules. ......................................................................................... 5

Section 1.02 Compliance with Requirements of Solicitation Document. ..................................................... 5

Section 1.03 Reporting. ..................................................................................................................................... 5

Section 1.04 Client Financial Eligibility. ......................................................................................................... 5

Section 1.05 Applicable Contracts Law and Venue for Disputes. ................................................................. 5

Section 1.06 Applicable Laws and Regulations Regarding Funding Sources. ............................................. 5

Section 1.07 Statutes and Standards of General Applicability. .................................................................... 6

Section 1.08 Applicability of General Provisions to Interagency and Interlocal Contracts. ........................ 7

Section 1.09 Civil Rights Policies and Complaints. ........................................................................................ 8

Section 1.10 Licenses, Certifications, Permits, Registrations and Approvals. ............................................. 8

Section 1.11 Funding Obligation. .................................................................................................................... 9

ARTICLE II SERVICES .......................................................................................................................................... 9

Section 2.01 Education to Persons in Residential Facilities. ......................................................................... 9

Section 2.02 Disaster Services. ......................................................................................................................... 9

Section 2.03 Consent to Medical Care of a Minor. ......................................................................................... 9

Section 2.04 Telemedicine Medical Services. .................................................................................................. 9

Section 2.05 Fees for Personal Health Services.. ............................................................................................ 10

Section 2.06 Cost Effective Purchasing of Medications. .............................................................................. 10

Section 2.07 Services and Information for Persons with Limited English Proficiency. .............................. 10

ARTICLE III FUNDING ......................................................................................................................................... 10

Section 3.01 Debt to State and Corporate Status. ........................................................................................ 10

Section 3.02 Application of Payment Due. .................................................................................................... 10

Section 3.03 Use of Funds. .............................................................................................................................. 11

Section 3.04 Use for Match Prohibited. ......................................................................................................... 11

Section 3.05 Program Income. ....................................................................................................................... 11

Section 3.06 Nonsupplanting. ......................................................................................................................... 11

ARTICLE IV PAYMENT METHODS AND RESTRICTIONS .......................................................................... 11

Section 4.01 Payment Methods. ..................................................................................................................... 11

Section 4.02 Billing Submission. .................................................................................................................... 11

Section 4.03 Final Billing Submission. .......................................................................................................... 11

Section 4.04 Working Capital Advance. ....................................................................................................... 12

Section 4.05 Third Party Payors. . .................................................................................................................. 12

ARTICLE V TERMS AND CONDITIONS OF PAYMENT .............................................................................. 12

Section 5.01 Prompt Payment. ....................................................................................................................... 12

Section 5.02 Withholding Payments. ............................................................................................................. 12

Section 5.03 Condition Precedent to Requesting Payment. ......................................................................... 13

Section 5.04 Acceptance as Payment in Full. ................................................................................................ 13

ARTICLE VI ALLOWABLE COSTS AND AUDIT REQUIREMENTS ........................................................... 13

Section 6.01 Allowable Costs. ......................................................................................................................... 13

Section 6.02 Independent Single or Program-Specific Audit. ..................................................................... 14

Section 6.03 Submission of Audit. ................................................................................................................ 14

ARTICLE VII CONFIDENTIALITY ................................................................................................................. 14

Section 7.01 Maintenance of Confidentiality. ............................................................................................... 14

Section 7.02 Department Access to PHI and Other Confidential Information…………………………….15




Section 7.03 Exchange of Client-Identifying Information. ............................................................................ 15

Section 7.04 Security of Patient or Client Records. ..................................................................................... 15

Section 7.05 HIV/AIDS Model Workplace Guidelines. ............................................................................... 15

ARTICLE VIII RECORDS RETENTION ........................................................................................................... 15

Section 8.01 Retention. ................................................................................................................................... 15

ARTICLE IX ACCESS AND INSPECTION ......................................................................................................... 16

Section 9.01 Access. ......................................................................................................................................... 16

Section 9.02 State Auditor’s Office. ............................................................................................................... 16

Section 9.03 Responding to Deficiencies. ...................................................................................................... 16

ARTICLE X NOTICE REQUIREMENTS .......................................................................................................... 17

Section 10.01 Child Abuse Reporting Requirement. ..................................................................................... 17

Section 10.02 Significant Incidents. ................................................................................................................. 17

Section 10.03 Litigation. ................................................................................................................................... 17

Section 10.04 Action Against the Contractor. ................................................................................................ 17

Section 10.05 Insolvency. . ................................................................................................................................. 17

Section 10.06 Misuse of Funds and Performance Malfeasance. .................................................................... 17

Section 10.07 Criminal Activity and Disciplinary Action. ............................................................................. 18

Section 10.08 Retaliation Prohibited. .............................................................................................................. 18

Section 10.09 Documentation. .......................................................................................................................... 18

ARTICLE XI ASSURANCES AND CERTIFICATIONS .................................................................................... 18

Section 11.01 Certification. .............................................................................................................................. 18

Section 11.02 Child Support Delinquencies. ................................................................................................... 19

Section 11.03 Authorization. ............................................................................................................................ 19

Section 11.04 Gifts and Benefits Prohibited. in connection with this Contract. ........................................... 19

Section 11.05 Ineligibility to Receive the Contract. ....................................................................................... 19

Section 11.06 Antitrust. .................................................................................................................................... 20

Section 11.07 Initiation and Completion of Work. ......................................................................................... 20

ARTICLE XII GENERAL BUSINESS OPERATIONS OF CONTRACTOR ................................................ 20

Section 12.01 Responsibilities and Restrictions Concerning Governing Body, Officers and Employees. . 20

Section 12.02 Management and Control Systems. ......................................................................................... 20

Section 12.03 Insurance. ................................................................................................................................... 21

Section 12.04 Fidelity Bond. ............................................................................................................................. 21

Section 12.05 Liability Coverage. .................................................................................................................... 21

Section 12.06 Overtime Compensation. .......................................................................................................... 21

Section 12.07 Program Site. . ............................................................................................................................ 22

Section 12.08 Cost Allocation Plan. ................................................................................................................. 22

Section 12.09 No Endorsement. ......................................................................................................................... 22

Section 12.10 Historically Underutilized Businesses (HUBs). ......................................................................... 22

Section 12.11 Buy Texas. .................................................................................................................................. 22

Section 12.12 Contracts with Subrecipient and Vendor Subcontractors. .................................................... 22

Section 12.13 Status of Subcontractors. .......................................................................................................... 23

Section 12.14 Incorporation of Terms in Subrecipient Subcontracts. .......................................................... 23

Section 12.15 Independent Contractor. ........................................................................................................... 23

Section 12.16 Authority to Bind. ...................................................................................................................... 24

Section 12.17 Tax Liability. .............................................................................................................................. 24

Section 12.18 Notice of Organizational Change. ............................................................................................ 24

Section 12.19 Quality Management. ................................................................................................................ 24

Section 12.20 Equipment (Including Controlled Assets). .............................................................................. 24

Section 12.21 Supplies. . ..................................................................................................................................... 24




Section 12.22 Changes to Equipment List. ..................................................................................................... 24

Section 12.23 Property Inventory and Protection of Assets. ......................................................................... 25

Section 12.24 Bankruptcy. ................................................................................................................................ 25

Section 12.25 Title to Property. ....................................................................................................................... 25

Section 12.26 Property Acquisitions. ............................................................................................................... 25

Section 12.27 Disposition of Property. ............................................................................................................ 25

Section 12.28 Closeout of Equipment. ............................................................................................................. 25

Section 12.29 Assets as Collateral Prohibited. ................................................................................................ 26

ARTICLE XIII GENERAL TERMS .................................................................................................................... 26

Section 13.01 Assignment. .................................................................................................................................. 26

Section 13.02 Lobbying. .................................................................................................................................... 26

Section 13.03 Conflict of Interest. .................................................................................................................... 26

Section 13.04 Transactions Between Related Parties. .................................................................................... 27

Section 13.05 Intellectual Property. ................................................................................................................. 27

Section 13.06 Other Intangible Property. ....................................................................................................... 28

Section 13.07 Severability and Ambiguity. ..................................................................................................... 28

Section 13.08 Legal Notice. ............................................................................................................................... 28

Section 13.09 Successors. .................................................................................................................................. 28

Section 13.10 Headings. .................................................................................................................................... 28

Section 13.11 Parties. ........................................................................................................................................ 28

Section 13.12 Survivability of Terms. .............................................................................................................. 28

Section 13.13 Direct Operation. ....................................................................................................................... 28

Section 13.14 Customer Service Information. ................................................................................................ 28

Section 13.15 Amendment. ............................................................................................................................... 29

Section 13.16 Contractor’s Notification of Change to Certain Contract Provisions. .................................. 29

Section 13.17 Contractor’s Request for Revision of Certain Contract Provisions. ..................................... 29

Section 13.18 Immunity Not Waived. . ............................................................................................................. 30

Section 13.19 Hold Harmless and Indemnification. ....................................................................................... 30

Section 13.20 Waiver. ....................................................................................................................................... 30

Section 13.21 Electronic and Information Resources Accessibility and Security Standards. ................... 30

Section 13.22 Force Majeure. ........................................................................................................................... 30

Section 13.23 Interim Contracts. ..................................................................................................................... 31

Section 13.24 Cooperation and Communication. ........................................................................................... 31

ARTICLE XIV BREACH OF CONTRACT AND REMEDIES FOR NON-COMPLIANCE ........................ 31

Section 14.01 Actions Constituting Breach of Contract. ............................................................................... 31

Section 14.02 General Remedies and Sanctions. ............................................................................................ 31

Section 14.03 Notice of Remedies or Sanctions. ............................................................................................. 33

Section 14.04 Emergency Action. .................................................................................................................... 33

ARTICLE XV CLAIMS AGAINST THE DEPARTMENT ............................................................................. 34

Section 15.01 Breach of Contract Claim. ........................................................................................................ 34

Section 15.02 Notice. . ........................................................................................................................................ 34

Section 15.03 Sole Remedy. . ............................................................................................................................. 34

Section 15.04 Condition Precedent to Suit. ..................................................................................................... 34

Section 15.05 Performance Not Suspended. ................................................................................................... 34

ARTICLE XVI TERMINATION AND TEMPORARY SUSPENSION ........................................................... 34

Section 16.01 Expiration of Contract or Program Attachment(s). ............................................................... 34

Section 16.02 Effect of Termination. Contract. ............................................................................................. 34

Section 16.03 Acts Not Constituting Termination. ......................................................................................... 35

Section 16.04 Termination or Temporary Suspension Without Cause. ......................................................... 35

Section 16.05 Termination For Cause. ............................................................................................................ 35




Section 16.06 Notice of Termination. .............................................................................................................. 37

ARTICLE XVII VOID, SUSPENDED, AND TERMINATED CONTRACTS .................................................. 37

Section 17.01 Void Contracts. .......................................................................................................................... 37

Section 17.02 Effect of Void, Suspended, or Involuntarily Terminated Contract. ...................................... 37

Section 17.03 Appeals Rights. .......................................................................................................................... 37

ARTICLE XVIII CLOSEOUT ............................................................................................................................... 37

Section 18.01 Cessation of Services At Closeout. ........................................................................................... 37

Section 18.02 Administrative Offset. . .............................................................................................................. 37

Section 18.03 Deadline for Closeout. ............................................................................................................... 37

Section 18.04 Payment of Refunds. ................................................................................................................. 37

Section 18.05 Disallowances and Adjustments. .............................................................................................. 38


ARTICLE I COMPLIANCE AND REPORTING

Section 1.01 Compliance with Statutes and Rules. Contractor shall comply, and shall require its

subcontractor(s) to comply, with the requirements of the Department’s rules of general applicability and other

applicable state and federal statutes, regulations, rules, and executive orders, as such statutes, regulations,

rules, and executive orders currently exist and as they may be lawfully amended. The Department rules are

located in the Texas Administrative Code, Title 25 (Rules). To the extent this Contract imposes a higher

standard, or additional requirements beyond those required by applicable statutes, regulations, rules or

executive orders, the terms of this Contract will control. Contractor further agrees that, upon notification from

DSHS, Contractor shall comply with the terms of any contract provisions DSHS is required to include in its

contracts under legislation effective at the time of the effective date of this Contract or during the term of this

Contract.

Section 1.02 Compliance with Requirements of Solicitation Document. Except as specified in these

General Provisions or the Program Attachment(s), Contractor shall comply with the requirements, eligibility

conditions, assurances, certifications and program requirements of the Solicitation Document, if any,

(including any revised or additional terms agreed to in writing by Contractor and DSHS prior to execution of

this Contract) for the duration of this Contract or any subsequent renewals. The Parties agree that the

Department has relied upon Contractor’s response to the Solicitation Document. The Parties agree that any

misrepresentation contained in Contractor’s response to the Solicitation Document constitutes a breach of this

Contract.

Section 1.03 Reporting. Contractor shall submit reports in accordance with the reporting requirements

established by the Department and shall provide any other information requested by the Department in the

format required by DSHS. Failure to submit any required report or additional requested information by the due

date specified in the Program Attachment(s) or upon request constitutes a breach of contract, may result in

delayed payment and/or the imposition of sanctions and remedies, and, if appropriate, emergency action; and

may adversely affect evaluation of Contractor’s future contracting opportunities with the Department.

Section 1.04 Client Financial Eligibility. Where applicable, Contractor shall use financial eligibility

criteria, financial assessment procedures and standards developed by the Department to determine client

eligibility.

Section 1.05 Applicable Contracts Law and Venue for Disputes. Regarding all issues related to contract

formation, performance, interpretation, and any issues that may arise in any dispute between the Parties, this

Contract will be governed by, and construed in accordance with, the laws of the State of Texas. In the event of

a dispute between the Parties, venue for any suit will be Travis County, Texas.

Section 1.06 Applicable Laws and Regulations Regarding Funding Sources. Where applicable, federal

statutes and regulations, including federal grant requirements applicable to funding sources, will apply to this

Contract. Contractor agrees to comply with applicable laws, executive orders, regulations and policies, as well

as Office of Management and Budget (OMB) Circulars (as codified in Title 2 of the Code of Federal

Regulations), the Uniform Grant and Contract Management Act of 1981 (UGMA), Tex. Gov. Code Chapter

783, and Uniform Grant Management Standards (UGMS), as revised by federal circulars and incorporated in

UGMS by the Comptroller of Public Accounts, Texas Procurement and Support Services Division. UGMA

and UGMS can be located through web links on the DSHS website at

http://www.dshs.state.tx.us/contracts/links.shtm. Contractor also shall comply with all applicable federal and

state assurances contained in UGMS, Part III, State Uniform Administrative Requirements for Grants and

Cooperative Agreements §__.14. If applicable, Contractor shall comply with the Federal awarding agency’s

Common Rule, and the U.S. Health and Human Services Grants Policy Statement, both of which may be

http://www.dshs.state.tx.us/contracts/links.shtm


located through web links on the DSHS website at http://www.dshs.state.tx.us/contracts/links.shtm. For

contracts funded by block grants, Contractor shall comply with Tex. Gov. Code Chapter 2105.

Section 1.07 Statutes and Standards of General Applicability. Contractor is responsible for reviewing

and complying with all applicable statutes, rules, regulations, executive orders and policies. To the extent

applicable to Contractor, Contractor shall comply with the following:

a) the following statutes, rules, regulations, and DSHS policy (and any of their subsequent amendments)

that collectively prohibit discrimination, exclusion from or limitation of participation in

programs, benefits or activities or denial of any aid, care, service or other benefit on the basis

of race, color, national origin, limited English proficiency, sex, sexual orientation (where applicable),

disabilities, age, substance abuse, political belief or religion: 1) Title VI of the Civil Rights Act of

1964, 42 USC §§2000d et seq.; 2) Title IX of the Education Amendments of 1972, 20 USC §§ 1681-

1683, and 1685-1686; 3) Section 504 of the Rehabilitation Act of 1973, 29 USC § 794(a); 4) the

Americans with Disabilities Act of 1990, 42 USC §§12101 et seq.; 5) Age Discrimination Act of

1975, 42 USC §§ 6101-6107; 6) Comprehensive Alcohol Abuse and Alcoholism Prevention,

Treatment and Rehabilitation Act of 1970, 42 USC § 290dd (b)(1); 7) 45 CFR Parts 80, 84, 86 and 91;

8) U.S. Department of Labor, Equal Employment Opportunity E.O. 11246; 9) Tex. Lab. Code Chapter

21; 10) Food Stamp Act of 1977 (7 USC § 200 et seq.; 11) Executive Order 13279, 45 CFR Part 87 or

7 CFR Part 16 regarding equal treatment and opportunity for religious organizations; 12) Drug Abuse

Office and Treatment Act of 1972, 21 USC §§ 1101 et seq., relating to drug abuse; 13) Public Health

Service Act of 1912, §§523 and 527, 42 USC § 290dd-2, and 42 CFR Part 2, relating to confidentiality

of alcohol and drug abuse patient records; 14) Title VIII of the Civil Rights Act of 1968, 42 USC §§

3601 et seq., relating to nondiscrimination in housing; and 15) DSHS Policy AA-5018, Non-

discrimination Policy for DSHS Programs;

b) Immigration Reform and Control Act of 1986, 8 USC § 1324a, and Immigration Act of 1990, 8 USC

1101 et seq., regarding employment verification; and Illegal Immigration Reform and Immigrant

Responsibility Act of 1996;

c) Pro-Children Act of 1994, 20 USC §§ 6081-6084, and the Pro-Children Act of 2001, 20 USC § 7183,

regarding the non-use of all tobacco products;

d) National Research Service Award Act of 1971, 42 USC §§ 289a-1 et seq., and 6601 (PL 93-348 and

PL 103-43), regarding human subjects involved in research;

e) Hatch Political Activity Act, 5 USC §§1501-1508 and 7324-28, which limits the political activity of

employees whose employment is funded with federal funds;

f) Fair Labor Standards Act, 29 USC §§ 201 et seq., and the Intergovernmental Personnel Act of 1970,

42 USC §§ 4701 et seq., as applicable, concerning minimum wage and maximum hours;

g) Tex. Gov. Code Chapter 469, pertaining to eliminating architectural barriers for persons with

disabilities;

h) Texas Workers’ Compensation Act, Tex. Lab. Code Chapters 401-406 and 28 Tex. Admin. Code Part

2, regarding compensation for employees’ injuries;

i) The Clinical Laboratory Improvement Amendments of 1988, 42 USC § 263a, regarding the regulation

and certification of clinical laboratories;

j) The Occupational Safety and Health Administration Regulations on Blood Borne Pathogens, 29 CFR

§ 1910.1030, or Title 25 Tex. Admin. Code Chapter 96 regarding safety standards for handling blood

borne pathogens;

k) Laboratory Animal Welfare Act of 1966, 7 USC §§ 2131 et seq., pertaining to the treatment of

laboratory animals;

l) environmental standards pursuant to the following: 1) Institution of environmental quality control

measures under the National Environmental Policy Act of 1969, 42 USC §§ 4321-4347 and Executive

Order 11514 (35 Fed. Reg. 4247), “Protection and Enhancement of Environmental Quality;” 2)



Notification of violating facilities pursuant to Executive Order 11738 (40 CFR Part 32), “Providing for

Administration of the Clean Air Act and the Federal Water Pollution Control Act with respect to

Federal Contracts, Grants, or Loans;” 3) Protection of wetlands pursuant to Executive Order 11990, 42

Fed. Reg. 26961; 4) Evaluation of flood hazards in floodplains in accordance with Executive Order

11988, 42 Fed. Reg. 26951 and, if applicable, flood insurance purchase requirements of Section 102(a)

of the Flood Disaster Protection Act of 1973 (PL 93-234); 5) Assurance of project consistency with

the approved State Management program developed under the Coastal Zone Management Act of 1972,

16 USC §§ 1451 et seq.; 6) Federal Water Pollution Control Act, 33 USC §1251 et seq.; 7) Protection

of underground sources of drinking water under the Safe Drinking Water Act of 1974, 42 USC §§

300f-300j; 8) Protection of endangered species under the Endangered Species Act of 1973, 16 USC §§

1531 et seq.; 9) Conformity of federal actions to state clean air implementation plans under the Clean

Air Act of 1955, 42 USC §§7401 et seq.; 10) Wild and Scenic Rivers Act of 1968 (16 USC §§ 1271 et

seq.) related to protecting certain rivers system; and 11) Lead-Based Paint Poisoning Prevention Act

(42 USC §§ 4801 et seq.) prohibiting the use of lead-based paint in residential construction or

rehabilitation;

m) Intergovernmental Personnel Act of 1970 (42 USC §§4278-4763) regarding personnel merit systems

for programs specified in Appendix A of the federal Office of Program Management’s Standards for a

Merit System of Personnel Administration (5 CFR Part 900, Subpart F);

n) Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of

1970 (PL 91-646), relating to fair treatment of persons displaced or whose property is acquired as a

result of Federal or federally-assisted programs;

o) Davis-Bacon Act (40 USC §§ 276a to 276a-7), the Copeland Act (40 U.S.C. § 276c and 18 USC §

874), and the Contract Work Hours and Safety Standards Act (40 USC §§ 327-333), regarding labor

standards for federally-assisted construction subagreements;

p) National Historic Preservation Act of 1966, §106 (16 USC § 470), Executive Order 11593, and the

Archaeological and Historic Preservation Act of 1974 (16 USC §§ 469a-1 et seq.) regarding historic

property to the extent necessary to assist DSHS in complying with the Acts;

q) financial and compliance audits in accordance with Single Audit Act Amendments of 1996 and OMB

Circular No. A-133, “Audits of States, Local Governments, and Non-Profit Organizations;”

r) Trafficking Victims Protection Act of 2000, Section 106(g) (22 USC § 7104);

s) Executive Order, Federal Leadership on Reducing Text Messaging While Driving, October 1, 2009, if

required by a federal funding source of the Contract; and

t) requirements of any other applicable state and federal statutes, executive orders, regulations, rules and

policies.

If this Contract is funded by a federal grant or cooperative agreement, additional state or federal requirements

found in the Notice of Grant Award are imposed on Contractor and incorporated herein by reference.

Contractor may obtain a copy of any applicable Notice of Grant Award from the contract manager assigned to

the Program Attachment.

Section 1.08 Applicability of General Provisions to Interagency and Interlocal Contracts. Certain

sections or portions of sections of these General Provisions will not apply to Contractors that are State

agencies or units of local government; and certain additional provisions will apply to such Contractors.

a) The following sections or portions of sections of these General Provisions will not apply to

interagency or interlocal contracts:

1) Hold Harmless and Indemnification, Section 13.19;

2) Independent Contractor, Section 12.15 (delete the third sentence in its entirety; delete the word

“employees” in the fourth sentence; the remainder of the section applies);

3) Insurance, Section 12.03;

4) Liability Coverage, Section 12.05;

5) Fidelity Bond, Section 12.04;


6) Historically Underutilized Businesses, Section 12.10 (Contractor, however, shall comply with

HUB requirements of other statutes and rules specifically applicable to that entity);

7) Debt to State and Corporate Status, Section 3.01;

8) Application of Payment Due, Section 3.02; and

9) Article XV Claims against the Department (This Article is inapplicable to interagency contracts

only).

b) The following additional provisions will apply to interagency contracts:

1) This Contract is entered into pursuant to the authority granted and in compliance with the

provisions of the Interagency Cooperation Act, Tex. Gov. Code Chapter 771;

2) The Parties hereby certify that (1) the services specified are necessary and essential for the

activities that are properly within the statutory functions and programs of the affected agencies of

State government; (2) the proposed arrangements serve the interest of efficient and economical

administration of the State government; and (3) the services, supplies or materials contracted for

are not required by Section 21 of Article 16 of the Constitution of the State of Texas to be supplied

under contract given to the lowest responsible bidder; and

3) DSHS certifies that it has the authority to enter into this Contract granted in Tex. Health & Safety

Code Chapter 1001, and Contractor certifies that it has specific statutory authority to enter into

and perform this Contract.

c) The following additional provisions will apply to interlocal contracts:

1) This Contract is entered into pursuant to the authority granted and in compliance with the

provisions of the Interlocal Cooperation Act, Tex. Gov. Code Chapter 791;

2) Payments made by DSHS to Contractor will be from current revenues available to DSHS; and

3) Each Party represents that it has been authorized to enter into this Contract.

d) Contractor agrees that Contract Revision Requests (pursuant to the Contractor’s Request for Revision

to Certain Contract Provisions section), when signed by a duly authorized representative of

Contractor, will be effective as of the effective date specified by the Department, whether that date is

prior to or after the date of any ratification by Contractor’s governing body.

Section 1.09 Civil Rights Policies and Complaints. Upon request, Contactor shall provide the Health and

Human Services Commission (HHSC) Civil Rights Office with copies of all Contractor’s civil rights policies

and procedures. Contractor shall notify HHSC’s Office of Civil Rights of any civil rights complaints received

relating to performance under this Contract no more than ten (10) calendar days after Contractor’s receipt of

the claim. Notice must be directed to –

Civil Rights Office

Health and Human Services Commission

701 W. 51st St., Mail Code W206

Austin, Texas 78751

(888) 388-6332 or (512) 438-4313

TTY Toll-free (877) 432-7232

[email protected]

Section 1.10 Licenses, Certifications, Permits, Registrations and Approvals. Contractor shall obtain

and maintain all applicable licenses, certifications, permits, registrations and approvals to conduct its business

and to perform the services under this Contract. Failure to obtain or any revocation, surrender, expiration,

non-renewal, inactivation or suspension of any such license, certification, permit, registration or approval

constitutes grounds for termination of this Contract or other remedies the Department deems appropriate.

Contractor shall ensure that all its employees, staff and volunteers obtain and maintain in active status all

licenses, certifications, permits, registrations and approvals required to perform their duties under this Contract


and shall prohibit any person who does not hold a current, active required license, certification, permit,

registration or approval from performing services under this Contract.

Section 1.11 Funding Obligation. This Contract is contingent upon the availability of funding. If funds

become unavailable through lack of appropriations, budget cuts, transfer of funds between programs or health

and human services agencies, amendment of the Appropriations Act, health and human services agency

consolidation, or any other disruptions of current appropriated funding for this Contract, DSHS may restrict,

reduce or terminate funding under this Contract. Notice of any restriction or reduction will include

instructions and detailed information on how DSHS will fund the services and/or goods to be procured with

the restricted or reduced funds.

ARTICLE II SERVICES

Section 2.01 Education to Persons in Residential Facilities. If applicable, Contractor shall ensure that all

persons, who are housed in Department-licensed and/or -funded residential facilities and who are twenty-two

(22) years of age or younger, have access to educational services as required by Tex. Educ. Code § 29.012.

Contractor shall notify the local education agency or local early intervention program as prescribed by Tex.

Educ. Code § 29.012 not later than the third calendar day after the date a person who is twenty-two (22) years

of age or younger is placed in Contractor’s residential facility.

Section 2.02 Disaster Services. In the event of a local, state, or federal emergency, including natural, man-

made, criminal, terrorist, and/or bioterrorism events, declared as a state disaster by the Governor, or as a

federal disaster by the appropriate federal official, Contractor may be called upon to assist DSHS in providing

services, as appropriate, in the following areas: community evacuation; health and medical assistance;

assessment of health and medical needs; health surveillance; medical care personnel; health and medical

equipment and supplies; patient evacuation; in-hospital care and hospital facility status; food, drug, and

medical device safety; worker health and safety; mental health and substance abuse; public health information;

vector control and veterinary services; and victim identification and mortuary services. Contractor shall carry

out disaster services in the manner most responsive to the needs of the emergency, be cost-effective, and be

least intrusive on Contractor’s primary services.

Section 2.03 Consent to Medical Care of a Minor. If Contractor provides medical, dental, psychological

or surgical treatment to a minor under this Contract, either directly or through contracts with subcontractors,

Contractor shall not provide treatment of a minor unless informed consent to treatment is obtained pursuant to

Tex. Fam. Code Chapter 32, relating to consent to treatment of a child by a non-parent or child or pursuant to

other state law. If requirements of federal law relating to consent directly conflict with Tex. Fam. Code

Chapter 32, federal law supersedes state law.

Section 2.04 Telemedicine Medical Services. Contractor shall ensure that if Contractor or its

subcontractor uses telemedicine/telepsychiatry that the services are implemented in accordance with written

procedures and using a protocol approved by Contractor’s medical director and using equipment that complies

with the equipment standards as required by the Department. Procedures for providing telemedicine service

must include the following requirements:

a) clinical oversight by Contractor’s medical director or designated physician responsible for medical

leadership;

b) contraindication considerations for telemedicine use;

c) qualified staff members to ensure the safety of the individual being served by telemedicine at the

remote site;

d) safeguards to ensure confidentiality and privacy in accordance with state and federal laws;

e) use by credentialed licensed providers providing clinical care within the scope of their licenses;


f) demonstrated competency in the operations of the system by all staff members who are involved in the

operation of the system and provision of the services prior to initiating the protocol;

g) priority in scheduling the system for clinical care of individuals;

h) quality oversight and monitoring of satisfaction of the individuals served; and

i) management of information and documentation for telemedicine services that ensures timely access to

accurate information between the two sites.

Telemedicine Medical Services does not include chemical dependency treatment services provided by

electronic means under Rule § 448.911.

Section 2.05 Fees for Personal Health Services. Contractor may develop a system and schedule of fees

for personal health services in accordance with the provisions of Tex. Health & Safety Code § 12.032, DSHS

Rule §1.91 covering Fees for Personal Health Services, and other applicable laws or grant requirements. The

amount of a fee must not exceed the actual cost of providing the services. No client may be denied a service

due to inability to pay. Any charges assessed to individuals for screenings must be accounted for as Program

Income in accordance with the DSHS Contractor’s Financial Procedure Manual. The Contractor shall not

charge for screening if an individual becomes a DSHS client.

Section 2.06 Cost Effective Purchasing of Medications. If medications are funded under this Contract,

Contractor shall make needed medications available to clients at the lowest possible prices and use the most

cost effective medications purchasing arrangement possible.

Section 2.07 Services and Information for Persons with Limited English Proficiency. Contractor shall

take reasonable steps to provide services and information, both orally and in writing, in appropriate languages

other than English, to ensure that persons with limited English proficiency are effectively informed and can

have meaningful access to programs, benefits, and activities. Contractor shall identify and document on the

client records the primary language/dialect of a client who has limited English proficiency and the need for

translation or interpretation services and shall not require a client to provide or pay for the services of a

translator or interpreter. Contractor shall make every effort to avoid use of any persons under the age of

eighteen (18) or any family member or friend of the client as an interpreter for essential communications with

a client with limited English proficiency, unless the client has requested that person and using the person

would not compromise the effectiveness of services or violate the client’s confidentiality and the client is

advised that a free interpreter is available.

ARTICLE III FUNDING

Section 3.01 Debt to State and Corporate Status. Pursuant to Tex. Gov. Code § 403.055, the Department

will not approve and the State Comptroller will not issue payment to Contractor if Contractor is indebted to the

State for any reason, including a tax delinquency. Contractor, if a corporation, certifies by execution of this

Contract that it is current and will remain current in its payment of franchise taxes to the State of Texas or that

it is exempt from payment of franchise taxes under Texas law (Tex. Tax Code §§ 171.001 et seq.). Contractor,

if a corporation, further certifies that it is and will remain in good standing with the Secretary of State’s office.

A false statement regarding franchise tax or corporate status is a material breach of this Contract. If franchise

tax payments become delinquent during the Contract term, all or part of the payments under this Contract may

be withheld until Contractor’s delinquent franchise tax is paid in full.

Section 3.02 Application of Payment Due. Contractor agrees that any payments due under this Contract

will be applied towards any debt of Contractor, including but not limited to delinquent taxes and child support

that is owed to the State of Texas.


Section 3.03 Use of Funds. Contractor shall expend Department funds only for the provision of approved

services and for reasonable and allowable expenses directly related to those services.

Section 3.04 Use for Match Prohibited. Contractor shall not use funds provided through this Contract for

matching purposes in securing other funding unless directed or approved by the Department in writing.

Section 3.05 Program Income. Gross income directly generated from Department funds through a project

or activity performed under a Program Attachment and/or earned only as a result of a Program Attachment

during the term of the Program Attachment are considered program income. Unless otherwise required under

the terms of the grant funding this Contract, Contractor shall use the addition alternative, as provided in

UGMS § __.25(g)(2), for the use of program income to further the program objectives of the state or federal

statute under which the Program Attachment was made, and Contractor shall spend the program income on the

same Program Attachment project in which it was generated. Contractor shall identify and report this income

in accordance with the Compliance and Reporting Article of these General Provisions, the Contractor’s

Financial Procedures Manual located at http://www.dshs.state.tx.us/contracts/cfpm.shtm and the provisions of

the Program Attachment(s). Contractor shall expend program income during the Program Attachment term

and may not carry forward to any succeeding term. Contractor shall refund program income not expended in

the term in which it is earned to DSHS. DSHS may base future funding levels, in part, upon Contractor’s

proficiency in identifying, billing, collecting, and reporting program income, and in using it for the purposes

and under the conditions specified in this Contract.

Section 3.06 Nonsupplanting. Contractor shall not supplant (i.e., use funds from this Contract to replace

or substitute existing funding from other sources that also supports the activities that are the subject of this

Contract) but rather shall use funds from this Contract to supplement existing state or local funds currently

available for a particular activity. Contractor shall make a good faith effort to maintain its current level of

support. Contractor may be required to submit documentation substantiating that a reduction in state or local

funding, if any, resulted for reasons other than receipt or expected receipt of funding under this Contract.

ARTICLE IV PAYMENT METHODS AND RESTRICTIONS

Section 4.01 Payment Methods. Except as otherwise provided by the provisions of the Program

Attachment(s), the payment method for each Program Attachment will be one of the following methods:

a) cost reimbursement. This payment method is based on an approved budget in the Program

Attachment(s) and acceptable submission of a request for reimbursement; or

b) unit rate/fee-for-service. This payment method is based on a fixed price or a specified rate(s) or fee(s)

for delivery of a specified unit(s) of service, as stated in the Program Attachment(s) and acceptable

submission of all required documentation, forms and/or reports.

Section 4.02 Billing Submission. Contractors shall bill the Department in accordance with the Program

Attachment(s) in the form and format prescribed by DSHS. Unless otherwise specified in the Program

Attachment(s) or permitted under the Third Party Payors section of this Article, Contractor shall submit

requests for reimbursement or payment monthly by the last business day of the month following the end of the

month covered by the bill. Contractor shall maintain all documentation that substantiates billing submissions

and make the documentation available to DSHS upon request.

Section 4.03 Final Billing Submission. Unless otherwise provided by the Department, Contractor shall

submit a reimbursement or payment request as a final close-out bill not later than sixty (60) calendar days

following the end of the term of the Program Attachment for goods received and services rendered during the

term. If necessary to meet this deadline, Contractor may submit reimbursement or payment requests by

facsimile transmission. Reimbursement or payment requests received in DSHS’s offices more than sixty (60)

http://www.dshs.state.tx.us/contracts/cfpm.shtm


calendar days following the end of the applicable term will not be paid. Consideration of requests for an

exception will be made on a case-by-case basis, subject to the availability of funding, and only for an

extenuating circumstance, such as a catastrophic event, natural disaster, or criminal activity that substantially

interferes with normal business operations or causes damage or destruction of a place of business and/or

records. A written statement describing the extenuating circumstance and the last request for reimbursement

must be submitted for review and approval to the DSHS Accounting Section.

Section 4.04 Working Capital Advance. If allowed under this Contract, a single one-time working capital

advance per term of the Program Attachment may be granted at the Department’s discretion. Contractor must

submit documentation to the contract manager assigned to the Program Attachment to justify the need for a

working capital advance. Contractor shall liquidate the working capital advance as directed by the

Department. The requirements for the documentation justifying the need for an advance and the directions for

liquidating the advance are found in the Contractor’s Financial Procedures Manual located at

http://www.dshs.state.tx.us/contracts/cfpm.shtm.

Section 4.05 Third Party Payors. A third party payor is any person or entity who has the legal

responsibility for paying for all or part of the services provided. Third party payors include, but are not limited

to, commercial health or liability insurance carriers, Medicaid, or other federal, state, local, and private

funding sources. Except as provided in this Contract, Contractor shall screen all clients and shall not bill the

Department for services eligible for reimbursement from third party payors. Contractor shall (a) enroll as a

provider in Children’s Health Insurance Program and Medicaid if providing approved services authorized

under this Contract that may be covered by those programs, and bill those programs for the covered services;

(b) provide assistance to individuals to enroll in such programs when the screening process indicates possible

eligibility for such programs; (c) allow clients who are otherwise eligible for Department services, but cannot

pay a deductible required by a third party payor, to receive services up to the amount of the deductible and to

bill the Department for the deductible; (d) not bill the Department for any services eligible for third party

reimbursement until all appeals to third party payors have been exhausted, in which case the thirty (30)-day

requirement in the Billing Submission section will be extended until all such appeals have been exhausted; (e)

maintain appropriate documentation from the third party payor reflecting attempts to obtain reimbursement; (f)

bill all third party payors for services provided under this Contract before submitting any request for

reimbursement to Department; and (g) provide third party billing functions at no cost to the client.

ARTICLE V TERMS AND CONDITIONS OF PAYMENT

Section 5.01 Prompt Payment. Upon receipt of a timely, undisputed invoice pursuant to this Contract,

Department will pay Contractor. Payments and reimbursements are contingent upon a signed Contract and

will not exceed the total amount of authorized funds under this Contract. Contractor is entitled to payment or

reimbursement only if the service, work, and/or product has been authorized by the Department and performed

or provided pursuant to this Contract. If those conditions are met, Department will make payment in

accordance with the Texas prompt payment law (Tex. Gov. Code Chapter 2251). Contractor shall comply

with Tex. Gov. Code Chapter 2251 regarding its prompt payment obligations to subcontractors. Payment of

invoices by the Department will not constitute acceptance or approval of Contractor’s performance, and all

invoices and Contractor’s performance are subject to audit or review by the Department.

Section 5.02 Withholding Payments. Department may withhold all or part of any payments to Contractor

to offset reimbursement for any ineligible expenditures, disallowed costs, or overpayments that Contractor has

not refunded to Department, or if financial status report(s) required by the Department are not submitted by the

date(s) due. Department may take repayment (recoup) from funds available under this Contract in amounts

necessary to fulfill Contractor’s repayment obligations.

http://www.dshs.state.tx.us/contracts


Section 5.03 Condition Precedent to Requesting Payment. Contractor shall disburse program income,

rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds before requesting

cash payments including any advance payments from Department.

Section 5.04 Acceptance as Payment in Full. Except as permitted in the Fees for Personal Health

Services section of the Services Article of these General Provisions or under 25 Tex. Admin. Code § 444.413,

Contractor shall accept reimbursement or payment from DSHS as payment in full for services or goods

provided to clients or participants, and Contractor shall not seek additional reimbursement or payment for

services or goods from clients or participants or charge a fee or make a profit with respect to the Contract. A

fee or profit is considered to be an amount in excess of actual allowable costs that are incurred in conducting

an assistance program.

ARTICLE VI ALLOWABLE COSTS AND AUDIT REQUIREMENTS

Section 6.01 Allowable Costs. For services satisfactorily performed, and sufficiently documented,

pursuant to this Contract, DSHS will reimburse Contractor for allowable costs. Contractor must have incurred

a cost prior to claiming reimbursement and within the applicable term to be eligible for reimbursement under

this Contract. DSHS will determine whether costs submitted by Contractor are allowable and eligible for

reimbursement. If DSHS has paid funds to Contractor for unallowable or ineligible costs, DSHS will notify

Contractor in writing, and Contractor shall return the funds to DSHS within thirty (30) calendar days of the

date of this written notice. DSHS may withhold all or part of any payments to Contractor to offset

reimbursement for any unallowable or ineligible expenditures that Contractor has not refunded to DSHS, or if

financial status report(s) required under the Financial Status Reports section are not submitted by the due

date(s). DSHS may take repayment (recoup) from funds available under this Contract in amounts necessary to

fulfill Contractor’s repayment obligations. Applicable cost principles, audit requirements, and administrative

requirements include-

Applicable Entity Applicable Cost

Principles

Audit Requirements Administrative

Requirements

State, Local and Tribal

Governments

OMB Circular A-87

(2 CFR, Part 225)

OMB Circular

A-133 and UGMS

UGMS, OMB Circular

A-102, and applicable

Federal awarding

agency common rule

Educational Institutions OMB Circular A-21

(2 CFR, Part 220)

OMB Circular

A-133

OMB Circular A-110 (2

CFR, Part 215) and

applicable Federal

awarding agency

common rule; and

UGMS, as applicable

Non-Profit

Organizations

OMB Circular

A-122 (2 CFR, Part

230)

OMB Circular

A-133 and UGMS

UGMS; OMB Circular

A-110 (2 CFR, Part

215) and applicable

Federal awarding

agency common rule

For-profit Organization

other than a hospital and

an organization named

in OMB Circular A-122

(2 CFR Part, 230) as not

subject to that circular.

48 CFR Part 31,

Contract Cost

Principles

Procedures, or

uniform cost

accounting standards

OMB Circular A-

133 and UGMS

UGMS and applicable

Federal awarding

agency common rule


that comply with

cost principles

acceptable to the

federal or state

awarding agency

A chart of applicable Federal awarding agency common rules is located through a weblink on the DSHS

website at http://www.dshs.state.tx.us/contracts/links.shtm. OMB Circulars will be applied with the

modifications prescribed by UGMS with effect given to whichever provision imposes the more stringent

requirement in the event of a conflict.

Section 6.02 Independent Single or Program-Specific Audit. If Contractor within Contractor’s fiscal

year expends a total amount of at least $500,000 in federal funds awarded, Contractor shall have a single audit

or program-specific audit in accordance with the Office of Management and Budget (OMB) Circ. No. A-133,

the Single Audit Act of 1984, P L 98-502, 98 Stat. 2327, and the Single Audit Act Amendments of 1996, P L

104-156, 110 Stat. 1396. The $500,000 federal threshold amount includes federal funds passed through by

way of state agency awards. If Contractor within Contractor’s fiscal year expends a total amount of at least

$500,000 in state funds awarded, Contractor must have a single audit or program-specific audit in accordance

with UGMS, State of Texas Single Audit Circular. For-profit Contractors whose expenditures meet or exceed

the federal and/or state expenditure thresholds stated above shall follow the guidelines in OMB Circular A-133

or UGMS, as applicable, for their program-specific audits. The HHSC Office of Inspector General (OIG) will

notify Contractor to complete the Single Audit Status Registration Form. If Contractor fails to complete the

Single Audit Status Form within thirty (30) calendar days after notification by OIG to do so, Contractor shall

be subject to DSHS sanctions and remedies for non-compliance with this Contract. The audit must be

conducted by an independent certified public accountant and in accordance with applicable OMB Circulars,

Government Auditing Standards, and UGMS, which is accessible through a web link on the DSHS website at

http://www.dshs.state.tx.us/contracts/links.shtm. Contractor shall procure audit services in compliance with

this section, state procurement procedures, as well as with the provisions of UGMS. Contractor, unless

Contractor is a state governmental entity, shall competitively re-procure independent single audit services at

least every six (6) years.

Section 6.03 Submission of Audit. Within thirty (30) calendar days of receipt of the audit reports

required by the Independent Single or Program-Specific Audit section, Contractor shall submit one copy to the

Department’s Contract Oversight and Support Section, and one copy to the OIG, at the following addresses:

Department of State Health Services

Contract Oversight and Support, Mail Code 1326

P.O. Box 149347

Austin, Texas 78714-9347

Health and Human Services Commission

Office of Inspector General

Compliance/Audit, Mail Code 1326

P.O. Box 85200

Austin, Texas 78708-5200

If Contractor fails to submit the audit report as required by the Independent Single or Program-Specific Audit

section within thirty (30) calendar days of receipt by Contractor of an audit report, Contractor shall be subject

to DSHS sanctions and remedies for non-compliance with this Contract.

ARTICLE VII CONFIDENTIALITY

Section 7.01 Maintenance of Confidentiality. Contractor must maintain the privacy and confidentiality of

information and records received during or related to the performance of this Contract, including patient and




client records that contain protected health information (PHI), and any other information that discloses

confidential personal information or identifies any client served by DSHS, in accordance with applicable

federal and state laws, rules and regulations, including but not limited to 7 CFR Part 246; 42 CFR Part 2; 45

CFR Parts 160 and 164 (Health Insurance Portability and Accountability Act [HIPAA]); Tex. Health & Safety

Code Chapters 12, 47, 81, 82, 85, 88, 92, 161, 181, 241, 245, 251, 534, 576, 577, 596, 611, and 773; and Tex.

Occ. Code Chapters 56 and 159 and all applicable rules and regulations.

Section 7.02 Department Access to PHI and Other Confidential Information. Contractor shall

cooperate with Department to allow Department to request, collect and receive PHI and other confidential

information under this Contract, without the consent of the individual to whom the PHI relates, for funding,

payment and administration of the grant program, and for purposes permitted under applicable state and

federal confidentiality and privacy laws.

Section 7.03 Exchange of Client-Identifying Information. Except as prohibited by other law, Contractor

and DSHS shall exchange PHI without the consent of clients in accordance with 45 CFR §

164.504(e)(3)(i)(B), Tex. Health & Safety Code § 533.009 and Rule Chapter 414, Subchapter A or other

applicable laws or rules. Contractor shall disclose information described in Tex. Health & Safety Code §

614.017(a)(2) relating to special needs offenders, to an agency described in Tex. Health & Safety Code §

614.017(c) upon request of that agency, unless Contractor documents that the information is not allowed to be

disclosed under 45 CFR Part 164 or other applicable law.

Section 7.04 Security of Patient or Client Records. Contractor shall maintain patient and client records

in compliance with state and federal law relating to security and retention of medical or mental health and

substance abuse patient and client records. Department may require Contractor to transfer original or copies of

patient and client records to Department, without the consent or authorization of the patient or client, upon

termination of this Contract or a Program Attachment to this Contract, as applicable, or if the care and

treatment of the individual patient or client is transferred to another entity. Prior to providing services funded

under this Contract to a patient or client, Contractor shall attempt to obtain consent from the patient or client to

transfer copies of patient or client records to another entity funded by DSHS upon termination of this Contract

or a Program Attachment to this Contract, as applicable, or if care or treatment is transferred to another DSHS-

funded contractor.

Section 7.05 HIV/AIDS Model Workplace Guidelines. If providing direct client care, services, or

programs, Contractor shall implement Department’s policies based on the HIV/AIDS (human

immunodeficiency virus/acquired immunodeficiency syndrome) Model Workplace Guidelines for Businesses,

State Agencies, and State Contractors, Policy No. 090.021, and Contractor shall educate employees and clients

concerning HIV and its related conditions, including AIDS, in accordance with the Tex. Health & Safety Code

§ 85.112-114. A link to the Model Workplace Guidelines can be found at

http://www.dshs.state.tx.us/hivstd/policy/policies.shtm.

ARTICLE VIII RECORDS RETENTION

Section 8.01 Retention. Contractor shall retain records in accordance with applicable state and federal

statutes, rules and regulations. At a minimum, Contractor shall retain and preserve all other records, including

financial records that are generated or collected by Contractor under the provisions of this Contract, for a

period of four (4) years after the termination of this Contract. If services are funded through Medicaid, the

federal retention period, if more than four (4) years, will apply. Contractor shall retain all records pertaining to

this Contract that are the subject of litigation or an audit until the litigation has ended or all questions

pertaining to the audit are resolved. Legal requirements for Contractor may extend beyond the retention

schedules established in this section. Contractor shall retain medical records in accordance with Tex. Admin.

http://www.dshs.state.tx.us/hivstd/policy/policies.shtm


Code Title 22, Part 9, § 165.1(b) and (c) or other applicable statutes, rules and regulations governing medical

information. Contractor shall include this provision concerning records retention in any subcontract it awards.

If Contractor ceases business operations, it shall ensure that records relating to this Contract are securely

stored and are accessible by the Department upon Department's request for at least four (4) years from the date

Contractor ceases business or from the date this Contract terminates, whichever is sooner. Contractor shall

provide, and update as necessary, the name and address of the party responsible for storage of records to the

contract manager assigned to the Program Attachment.

ARTICLE IX ACCESS AND INSPECTION

Section 9.01 Access. In addition to any right of access arising by operation of law, Contractor, and any of

Contractor’s affiliate or subsidiary organizations or subcontractors shall permit the Department or any of its

duly authorized representatives, as well as duly authorized federal, state or local authorities, including the

Comptroller General of the United States, OIG, and the State Auditor’s Office (SAO), unrestricted access to

and the right to examine any site where business is conducted or client services are performed, and all records

(including financial records, client and patient records, if any, and Contractor’s personnel records and

governing body personnel records), books, papers or documents related to this Contract; and the right to

interview members of Contractor’s governing body, staff, volunteers, participants and clients concerning the

Contract, Contractor’s business and client services. If deemed necessary by the Department or the OIG, for

the purpose of investigation or hearing, Contractor shall produce original documents related to this Contract.

The Department and HHSC will have the right to audit billings both before and after payment, and all

documentation that substantiates the billings. Payments will not foreclose the right of Department and HHSC

to recover excessive or illegal payments. Contractor shall make available to the Department information

collected, assembled or maintained by Contractor relative to this Contract for the Department to respond to

requests that it receives under the Public Information Act. Contractor shall include this provision concerning

the right of access to, and examination of, sites and information related to this Contract in any subcontract it

awards.

Section 9.02 State Auditor’s Office. Contractor shall, upon request, make all records, books, papers,

documents, or recordings related to this Contract available for inspection, audit, or reproduction during normal

business hours to any authorized representative of the SAO. Contractor understands that the acceptance of

funds under this Contract acts as acceptance of the authority of the SAO, or any successor agency, to conduct

an audit or investigation in connection with those funds. Contractor shall cooperate fully with the SAO or its

successor in the conduct of the audit or investigation, including providing all records requested, and providing

access to any information the SAO considers relevant to the investigation or audit. The SAO’s authority to

audit funds will apply to Contract funds disbursed by Contractor to its subcontractors, and Contractor shall

include this provision concerning the SAO’s authority to audit and the requirement to cooperate, in any

subcontract Contractor awards.

Section 9.03 Responding to Deficiencies. Any deficiencies identified by DSHS or HHSC upon

examination of Contractor’s records or during an inspection of Contractor’s site(s) will be conveyed in writing

to Contractor. Contractor shall submit, by the date prescribed by DSHS, a resolution to the deficiency

identified in a site inspection, program or management review or financial audit to the satisfaction of DSHS

or, if directed by DSHS, a corrective action plan to resolve the deficiency. A DSHS or HHSC determination

of either an inadequate or inappropriate resolution of the findings may result in contract remedies or sanctions

under the Breach of Contract and Remedies for Non-Compliance Article of these General Provisions.


ARTICLE X NOTICE REQUIREMENTS

Section 10.01 Child Abuse Reporting Requirement. This section applies to mental health and substance

abuse contractors and contractors for the following public health programs: Human Immunodeficiency

Virus/Sexually Transmitted Diseases (HIV/STD); Family Planning (Titles V, X and XX); Primary Health

Care; Maternal and Child Health; and Women, Infants and Children (WIC) Nutrition Services. Contractor

shall make a good faith effort to comply with child abuse reporting guidelines and requirements in Tex. Fam.

Code Chapter 261 relating to investigations of reports of child abuse and neglect. Contractor shall develop,

implement and enforce a written policy that includes at a minimum the Department’s Child Abuse Screening,

Documenting, and Reporting Policy for Contractors/Providers and train all staff on reporting requirements.

Contractor shall use the DSHS Child Abuse Reporting Form as required by the Department located at

www.dshs.state.tx.us/childabusereporting. Contractor shall retain reporting documentation on site and make it

available for inspection by DSHS.

Section 10.02 Significant Incidents. In addition to notifying the appropriate authorities, Contractor shall

report to the contract manager assigned to the Program Attachment significant incidents involving substantial

disruption of Contractor’s program operation, or affecting or potentially affecting the health, safety or welfare

of Department-funded clients or participants within seventy-two (72) hours of discovery.

Section 10.03 Litigation. Contractor shall notify the contract manager assigned to the Program Attachment

of litigation related to or affecting this Contract and to which Contractor is a party within seven (7) calendar

days of becoming aware of such a proceeding. This includes, but is not limited to an action, suit or proceeding

before any court or governmental body, including environmental and civil rights matters, professional liability,

and employee litigation. Notification must include the names of the parties, nature of the litigation and

remedy sought, including amount of damages, if any.

Section 10.04 Action Against the Contractor. Contractor shall notify the contract manager assigned to the

Program Attachment if Contractor has had a contract suspended or terminated for cause by any local, state or

federal department or agency or nonprofit entity within three (3) working days of the suspension or

termination. Such notification must include the reason for such action; the name and contact information of

the local, state or federal department or agency or entity; the date of the contract; and the contract or case

reference number. If Contractor, as an organization, has surrendered its license or has had its license

suspended or revoked by any local, state or federal department or agency or non-profit entity, it shall disclose

this information within three (3) working days of the surrender, suspension or revocation to the contract

manager assigned to the Program Attachment by submitting a one-page description that includes the reason(s)

for such action; the name and contact information of the local, state or federal department or agency or entity;

the date of the license action; and a license or case reference number.

Section 10.05 Insolvency. Contractor shall notify in writing the contract manager assigned to the Program

Attachment of Contractor’s insolvency, incapacity, or outstanding unpaid obligations to the Internal Revenue

Service (IRS) or Texas Workforce Commission (TWC) within three (3) working days of the date of

determination that Contractor is insolvent or incapacitated, or the date Contractor discovered an unpaid

obligation to the IRS or TWC. Contractor shall notify in writing the contract manager assigned to the Program

Attachment of its plan to seek bankruptcy protection within three (3) working days of such action by

Contractor’s governing body.

Section 10.06 Misuse of Funds and Performance Malfeasance. Contractor shall report to the contract

manager assigned to the Program Attachment, any knowledge of debarment, suspected fraud, program abuse,

possible illegal expenditures, unlawful activity, or violation of financial laws, rules, policies, and procedures

http://www.dshs.state.tx.us/childabusereporting


related to performance under this Contract. Contractor shall make such report no later than three (3) working

days from the date that Contractor has knowledge or reason to believe such activity has taken place.

Additionally, if this Contract is federally funded by the Department of Health and Human Services (HHS),

Contractor shall report any credible evidence that a principal, employee, subcontractor or agent of Contractor,

or any other person, has submitted a false claim under the False Claims Act or has committed a criminal or

civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct

involving those funds. Contractor shall make this report to the SAO at http://sao.fraud.state.tx.us, and to the

HHS Office of Inspector General at http://www.oig.hhs.gov/fraud/hotline/ no later than three (3) working days

from the date that Contractor has knowledge or reason to believe such activity has taken place.

Section 10.07 Criminal Activity and Disciplinary Action. Contractor affirms that no person who has an

ownership or controlling interest in the organization or who is an agent or managing employee of the

organization has been placed on community supervision, received deferred adjudication, is presently indicted

for or has been convicted of a criminal offense related to any financial matter, federal or state program or

felony sex crime. Contractor shall notify in writing the contract manager assigned to the Program Attachment

if it has reason to believe Contractor, or a person with ownership or controlling interest in the organization or

who is an agent or managing employee of the organization, an employee or volunteer of Contractor, or a

subcontractor providing services under this Contract has engaged in any activity that would constitute a

criminal offense equal to or greater than a Class A misdemeanor or if such activity would reasonably

constitute grounds for disciplinary action by a state or federal regulatory authority, or has been placed on

community supervision, received deferred adjudication, or been indicted for or convicted of a criminal offense

relating to involvement in any financial matter, federal or state program or felony sex crime. Contractor shall

make the reports required by this section no later than three (3) working days from the date that Contractor has

knowledge or reason to believe such activity has taken place. Contractor shall not permit any person who

engaged, or was alleged to have engaged, in an activity subject to reporting under this section to perform direct

client services or have direct contact with clients, unless otherwise directed by DSHS.

Section 10.08 Retaliation Prohibited. Contractor shall not retaliate against any person who reports a

violation of, or cooperates with an investigation regarding, any applicable law, rule, regulation or standard to

the Department, another state agency, or any federal, state or local law enforcement official.

Section 10.09 Documentation. Contractor shall maintain appropriate documentation of all notices required

under these General Provisions.

ARTICLE XI ASSURANCES AND CERTIFICATIONS

Section 11.01 Certification. Contractor certifies by execution of this Contract to the following:

a) it is not disqualified under 2 CFR §376.935 or ineligible for participation in federal or state assistance

programs;

b) neither it, nor its principals, are presently debarred, suspended, proposed for debarment, declared

ineligible, or voluntarily excluded from participation in this transaction by any federal or state

department or agency in accordance with 2 CFR Parts 376 and 180 (parts A-I), 45 CFR Part 76 (or

comparable federal regulations);

c) it has not knowingly failed to pay a single substantial debt or a number of outstanding debts to a

federal or state agency;

d) it is not subject to an outstanding judgment in a suit against Contractor for collection of the balance of

a debt;

e) it is in good standing with all state and/or federal agencies that have a contracting or regulatory

relationship with Contractor;

http://sao.fraud.state.tx.us/

http://www.oig.hhs.gov/fraud/hotline/


f) that no person who has an ownership or controlling interest in Contractor or who is an agent or

managing employee of Contractor has been convicted of a criminal offense related to involvement in

any program established under Medicare, Medicaid, or a federal block grant;

g) neither it, nor its principals have within the three(3)-year period preceding this Contract, has been

convicted of or had a civil judgment rendered against them for commission of fraud or a criminal

offense in connection with obtaining, attempting to obtain, or performing a private or public (federal,

state or local) transaction or contract under a private or public transaction, violation of federal or state

antitrust statutes (including those proscribing price-fixing between competitors, allocation of

customers between competitors and bid-rigging), or commission of embezzlement, theft, forgery,

bribery, falsification or destruction of records, making false statements or false claims, tax evasion,

obstruction of justice, receiving stolen property or any other offense indicating a lack of business

integrity or business honesty that seriously and directly affects the present responsibility of Contactor

or its principals;

h) neither it, nor its principals is presently indicted or otherwise criminally or civilly charged by a

governmental entity (federal, state or local) with the commission of any of the offenses enumerated in

subsection g) of this section; and

i) neither it, nor its principals within a three(3)-year period preceding this Contract has had one or more

public transaction (federal, state or local) terminated for cause or default.

Contractor shall include the certifications in this Article, without modification (except as required to make

applicable to the subcontractor), in all subcontracts and solicitations for subcontracts. Where Contractor is

unable to certify to any of the statements in this Article, Contractor shall submit an explanation to the contract

manager assigned to the Program Attachment. If Contractor’s status with respect to the items certified in this

Article changes during the term of this Contract, Contractor shall immediately notify the contract manager

assigned to the Program Attachment.

Section 11.02 Child Support Delinquencies. As required by Tex. Fam. Code § 231.006, a child support

obligor who is more than thirty (30) calendar days delinquent in paying child support and a business entity in

which the obligor is a sole proprietor, partner, shareholder, or owner with an ownership interest of at least

twenty-five percent (25%) is not eligible to receive payments from state funds under a contract to provide

property, materials, or services or receive a state-funded grant or loan. If applicable, Contractor shall maintain

its eligibility to receive payments under this Contract, certifies that it is not ineligible to receive the payments

specified in this Contract, and acknowledges that this Contract may be terminated and payment may be

withheld if this certification is inaccurate.

Section 11.03 Authorization. Contractor certifies that it possesses legal authority to contract for the

services described in this Contract and that a resolution, motion or similar action has been duly adopted or

passed as an official act of Contractor’s governing body, authorizing the binding of the organization under this

Contract including all understandings and assurances contained in this Contract, and directing and authorizing

the person identified as the authorized representative of Contractor to act in connection with this Contract and

to provide such additional information as may be required.

Section 11.04 Gifts and Benefits Prohibited. Contractor certifies that it has not given, offered to give, nor

intends to give at any time hereafter, any economic opportunity, present or future employment, gift, loan,

gratuity, special discount, trip, favor, service or anything of monetary value to a DSHS or HHSC official or

employee in connection with this Contract.

Section 11.05 Ineligibility to Receive the Contract. (a) Pursuant to Tex. Gov. Code § 2155.004 and federal

law, Contractor is ineligible to receive this Contract if this Contract includes financial participation by a person

who received compensation from DSHS to participate in developing, drafting or preparing the specifications,


requirements, statement(s) of work or Solicitation Document on which this Contract is based. Contractor

certifies that neither Contractor, nor its employees, nor anyone acting for Contractor has received

compensation from DSHS for participation in the development, drafting or preparation of specifications,

requirements or statement(s) of work for this Contract or in the Solicitation Document on which this Contract

is based; (b) pursuant to Tex. Gov. Code §§ 2155.006 and 2261.053, Contractor is ineligible to receive this

Contract, if Contractor or any person who would have financial participation in this Contract has been

convicted of violating federal law, or been assessed a federal civil or administrative penalty, in connection

with a contract awarded by the federal government for relief, recovery or reconstruction efforts as a result of

Hurricanes Rita or Katrina or any other disaster occurring after September 24, 2005; (c) Contractor certifies

that the individual or business entity named in this Contract is not ineligible to receive the specified Contract

under Tex. Gov. Code §§ 2155.004, 2155.006 or 2261.053, and acknowledges that this Contract may be

terminated and payment withheld if these certifications are inaccurate.

Section 11.06 Antitrust. Pursuant to 15 USC § 1, et seq. and Tex. Bus. & Comm. Code § 15.01, et seq.

Contractor certifies that neither Contractor, nor anyone acting for Contractor has violated the antitrust laws of

this state or federal antitrust laws, nor communicated directly or indirectly regarding a bid with any competitor

or any other person engaged in Contractor’s line of business for the purpose of substantially lessening

competition in such line of business.

Section 11.07 Initiation and Completion of Work. Contractor certifies that it shall initiate and complete

the work under this Contract within the applicable time frame prescribed in this Contract.

ARTICLE XII GENERAL BUSINESS OPERATIONS OF CONTRACTOR

Section 12.01 Responsibilities and Restrictions Concerning Governing Body, Officers and Employees.

Contractor and its governing body shall bear full responsibility for the integrity of the fiscal and programmatic

management of the organization. This provision applies to all organizations, including Section 501(c)(3)

organizations as defined in the Internal Revenue Service Code as not-for-profit organizations. Each member

of Contractor’s governing body shall be accountable for all funds and materials received from Department.

The responsibility of Contractor’s governing body shall also include accountability for compliance with

Department Rules, policies, procedures, and applicable federal and state laws and regulations; and correction

of fiscal and program deficiencies identified through self-evaluation and Department’s monitoring processes.

Further, Contractor’s governing body shall ensure separation of powers, duties, and functions of governing

body members and staff. Staff members, including the executive director, shall not serve as voting members

of Contractor’s governing body. No member of Contractor’s governing body, or officer or employee of

Contractor shall vote for, confirm or act to influence the employment, compensation or change in status of any

person related within the second degree of affinity or the third degree of consanguinity (as defined in Tex.

Gov. Code Chapter 573) to the member of the governing body or the officer or any employee authorized to

employ or supervise such person. This prohibition does not prohibit the continued employment of a person

who has been continuously employed for a period of two (2) years prior to the election, appointment or

employment of the officer, employee, or governing body member related to such person in the prohibited

degree. These restrictions also apply to the governing body, officers and employees of Contractor’s

subcontractors. Ignorance of any Contract provisions or other requirements contained or referred to in this

Contract will not constitute a defense or basis for waiving or appealing such provisions or requirements.

Section 12.02 Management and Control Systems. Contractor shall comply with all the requirements of the

Department’s Contractor's Financial Procedures Manual, and any of its subsequent amendments, which is

available at the Department’s web site: http://www.dshs.state.tx.us/contracts/cfpm.shtm. Contractor shall

maintain an appropriate contract administration system to ensure that all terms, conditions, and specifications

http://www.dshs.state.tx.us/contracts


are met during the term of the contract through the completion of the closeout procedures. Contractor shall

develop, implement, and maintain financial management and control systems that meet or exceed the

requirements of UGMS and adhere to procedures detailed in Department’s Contractor’s Financial Procedures

Manual. Those requirements and procedures include, at a minimum, the following:

a) financial planning, including the development of budgets that adequately reflect all functions and

resources necessary to carry out authorized activities and the adequate determination of costs;

b) financial management systems that include accurate accounting records that are accessible and identify

the source and application of funds provided under each Program Attachment of this Contract, and

original source documentation substantiating that costs are specifically and solely allocable to the

Program Attachment and are traceable from the transaction to the general ledger; and

c) effective internal and budgetary controls; comparison of actual costs to budget; determination of

reasonableness, allowableness, and allocability of costs; timely and appropriate audits and resolution

of any findings; billing and collection policies; and a mechanism capable of billing and making

reasonable efforts to collect from clients and third parties.

Section 12.03 Insurance. Contractor shall maintain insurance or other means of repairing or replacing

assets purchased with Department funds. Contractor shall repair or replace with comparable equipment any

such equipment not covered by insurance that is lost, stolen, damaged or destroyed. If any insured equipment

purchased with DSHS funds is lost, stolen, damaged or destroyed, Contractor shall notify the contract manager

assigned to the Program Attachment to obtain instructions whether to submit and pursue an insurance claim.

Contractor shall use any insurance proceeds to repair the equipment or replace the equipment with comparable

equipment or remit the insurance proceeds to DSHS.

Section 12.04 Fidelity Bond. For the benefit of DSHS, Contractor is required to carry a fidelity bond or

insurance coverage equal to the amount of funding provided under this Contract up to $100,000 that covers

each employee of Contractor handling funds under this Contract, including person(s) authorizing payment of

such funds. The fidelity bond or insurance must provide for indemnification of losses occasioned by (1) any

fraudulent or dishonest act or acts committed by any of Contractor’s employees, either individually or in

concert with others, and/or (2) failure of Contractor or any of its employees to perform faithfully his/her duties

or to account properly for all monies and property received by virtue of his/her position or employment. The

bond or insurance acquired under this section must include coverage for third party property. Contractor shall

notify, and obtain prior approval from, the DSHS Contract Oversight and Support Section before settling a

claim on the fidelity bond or insurance.

Section 12.05 Liability Coverage. For the benefit of DSHS, Contractor shall at all times maintain liability

insurance coverage, referred to in Tex. Gov. Code § 2261.102, as “director and officer liability coverage” or

similar coverage for all persons in management or governing positions within Contractor’s organization or

with management or governing authority over Contractor’s organization (collectively “responsible persons”).

Contractor shall maintain copies of liability policies on site for inspection by DSHS and shall submit copies of

policies to DSHS upon request. This section applies to entities that are organized as non-profit corporations

under the Texas Non-Profit Corporation Act; for-profit corporations organized under the Texas Business

Corporations Act; and any other legal entity. Contractor shall maintain liability insurance coverage in an

amount not less than the total value of this Contract and that is sufficient to protect the interests of Department

in the event an actionable act or omission by a responsible person damages Department’s interests. Contractor

shall notify, and obtain prior approval from, the DSHS Contract Oversight and Support Section before settling

a claim on the insurance.

Section 12.06 Overtime Compensation. Except as provided in this section, Contractor shall be responsible

for any obligations of premium overtime pay due employees. Premium overtime pay is defined as any


compensation paid to an individual in addition to the employee’s normal rate of pay for hours worked in

excess of normal working hours. Funds provided under this Contract may be used to pay the premium portion

of overtime only under the following conditions: 1) with the prior written approval of DSHS; 2) temporarily,

in the case of an emergency or an occasional operational bottleneck; 3) when employees are performing

indirect functions, such as administration, maintenance, or accounting; 4) in performance of tests, laboratory

procedures, or similar operations that are continuous in nature and cannot reasonably be interrupted or

otherwise completed; or 5) when lower overall cost to DSHS will result.

Section 12.07 Program Site. Contractor shall provide services only in locations that are in compliance with

all applicable local, state and federal zoning, building, health, fire, and safety standards.

Section 12.08 Cost Allocation Plan. Contractor shall submit a Cost Allocation Plan in the format provided

in the Department’s Contractor’s Financial Procedures Manual to the Department’s Contract Oversight and

Support Section, at Mail Code 1326, P.O. Box 149347, Austin, Texas 78714-9347, or by email to

mailto:[email protected] no later than the 60th calendar day after the effective date of the Contract,

except when a Contractor has a current Cost Allocation Plan on file with the Department. Contractor shall

implement and follow the applicable Cost Allocation Plan. If Contractor’s plan is the same as the plan

previously submitted to DSHS, by signing this Contract, Contractor certifies that its current Cost Allocation

Plan for the current year is the same as the plan previously submitted. If the Cost Allocation Plan changes

during the Contract term, Contractor shall submit a new Cost Allocation Plan to the Contract Oversight and

Support Section within thirty (30) calendar days after the effective date of the change. Cost Allocation Plans

must comply with the guidelines provided in the Department’s Contractor’s Financial Procedures Manual

located at http://www.dshs.state.tx.us/contracts/cfpm.shtm.

Section 12.09 No Endorsement. Other than stating the fact that Contractor has a contract with DSHS,

Contractor and its subcontractors are prohibited from publicizing the contractual relationship between

Contractor and DSHS, and from using the Department’s name, logo or website link in any manner that is

intended, or that could be perceived, as an endorsement or sponsorship by DSHS or the State of Texas of

Contractor’s organization, program, services or product, without the express written consent of DSHS.

Section 12.10 Historically Underutilized Businesses (HUBs). If Contractor was not required to submit a

HUB subcontracting plan and if subcontracting is permitted under this Program Attachment, Contractor is

encouraged to make a good faith effort to consider subcontracting with HUBs in accordance with Tex. Gov.

Code Chapter 2161 and 34 Tex. Admin. Code § 20.10 et seq. Contractors may obtain a list of HUBs at

http://www.window.state.tx.us/procurement/prog/hub. If Contractor has filed a HUB subcontracting plan, the

plan is incorporated by reference in this Contract. If Contractor desires to make a change in the plan,

Contractor must obtain prior approval from the Department’s HUB Coordinator of the revised plan before

proposed changes will be effective under this Contract. Contractor shall make a good faith effort to

subcontract with HUBs during the performance of this Contract and shall report HUB subcontract activity to

the Department’s HUB Coordinator by the 15th day of each month for the prior month’s activity, if there was

any such activity, in accordance with 34 Tex. Admin. Code § 20.16(b).

Section 12.11 Buy Texas. Contractor shall purchase products and materials produced in Texas when the

products and materials are available at a price and time comparable to products and materials produced outside

of Texas as required by Tex. Gov. Code § 2155.4441.

Section 12.12 Contracts with Subrecipient and Vendor Subcontractors. Contractor may enter into

contracts with subrecipient subcontractors unless restricted or otherwise prohibited in a specific Program

Attachment(s). Prior to entering into a subrecipient agreement equaling or exceeding $100,000, Contractor

shall obtain written approval from DSHS. Contractor shall establish written policies and procedures for

competitive procurement and monitoring of subcontracts and shall produce a subcontracting monitoring plan.

mailto:[email protected]

http://www.dshs.state.tx.us/contracts.

http://www.window.state.tx.us/procurement/prog/hub


Contractor shall monitor subrecipient subcontractors for both financial and programmatic performance and

shall maintain pertinent records that must be available for inspection by DSHS. Contractor shall ensure that

subcontractors are fully aware of the requirements placed upon them by state/federal statutes, rules, and

regulations and by the provisions of this Contract.

Contracts with all subcontractors, whether vendor or subrecipient, must be in writing and include the

following:

a) name and address of all parties and the subcontractor’s Vendor Identification Number (VIN) or

Employee Identification Number (EIN);

b) a detailed description of the services to be provided;

c) measurable method and rate of payment and total not-to-exceed amount of the contract;

d) clearly defined and executable termination clause; and

e) beginning and ending dates that coincide with the dates of the applicable Program Attachment(s) or

that cover a term within the beginning and ending dates of the applicable Program Attachment(s).

Contractor is responsible to DSHS for the performance of any subcontractor. Contractor shall not contract

with a subcontractor, at any tier, that is debarred, suspended, or excluded from or ineligible for participation in

federal assistance programs; or if the subcontractor would be ineligible under the following sections of these

General Provisions: Ineligibility to Receive the Contract section (Assurances and Certifications Article); or the

Conflict of Interest or Transactions Between Related Parties sections (General Terms Article).

Section 12.13 Status of Subcontractors. Contractor shall require all subcontractors to certify that they are

not delinquent on any repayment agreements; have not had a required license or certification revoked; and

have not had a contract terminated by the Department. Contractors shall further require that subcontractors

certify that they have not voluntarily surrendered within the past three (3) years any license issued by the

Department.

Section 12.14 Incorporation of Terms in Subrecipient Subcontracts. Contractor shall include in all its

contracts with subrecipient subcontractors and solicitations for subrecipient subcontracts, without modification

(except as required to make applicable to the subcontractor), (1) the certifications stated in the Assurances and

Certifications Article; (2) the requirements in the Conflicts of Interest section and the Transaction Between

Related Parties section of the General Terms Article; and (3) a provision granting to DSHS, SAO, OIG, and

the Comptroller General of the United States, and any of their representatives, the right of access to inspect

the work and the premises on which any work is performed, and the right to audit the subcontractor in

accordance with the Access and Inspection Article in these General Provisions. Each subrecipient subcontract

contract must also include a copy of these General Provisions and a copy of the Statement of Work and any

other provisions in the Program Attachment(s) applicable to the subcontract. Contractor shall ensure that all

written agreements with subrecipient subcontractors incorporate the terms of this Contract so that all terms,

conditions, provisions, requirements, duties and liabilities under this Contract applicable to the services

provided or activities conducted by a subcontractor are passed down to that subcontractor. No provision of this

Contract creates privity of contract between DSHS and any subcontractor of Contractor. If a subcontractor is

unable to certify to any of the statements in Section 12.13 or any of the certifications stated in the Assurances

and Certifications Article, Contractor shall submit an explanation to the contract manager assigned to the

Program Attachment. If the subcontractor’s status with respect to the items certified in Section 12.13 or the

assurances stated in the Assurances and Certifications Article changes during the term of this Contract,

Contractor shall immediately notify the contract manager assigned to the Program Attachment.

Section 12.15 Independent Contractor. Contractor is an independent contractor. Contractor shall direct

and be responsible for the performance of its employees, subcontractors, joint venture participants or agents.

Contractor is not an agent or employee of the Department or the State of Texas for any purpose whatsoever.

For purposes of this Contract, Contractor acknowledges that its employees, subcontractors, joint venture


participants or agents will not be eligible for unemployment compensation from the Department or the State of

Texas.

Section 12.16 Authority to Bind. The person or persons signing this Contract on behalf of Contractor, or

representing themselves as signing this Contract on behalf of Contractor, warrant and guarantee that they have

been duly authorized by Contractor to execute this Contract for Contractor and to validly and legally bind

Contractor to all of its terms.

Section 12.17 Tax Liability. Contractor shall comply with all state and federal tax laws and is solely

responsible for filing all required state and federal tax forms and making all tax payments. If the Department

discovers that Contractor has failed to remain current on a liability to the IRS, this Contract will be subject to

remedies and sanctions under this Contract, including immediate termination at the Department’s discretion.

If the Contract is terminated under this section, the Department will not enter into a contract with Contractor

for three (3) years from the date of termination.

Section 12.18 Notice of Organizational Change. Contractor shall submit written notice to the contract

manager assigned to the Program Attachment within ten (10) business days of any change to the Contractor's

name; contact information; key personnel, officer, director or partner; organizational structure, such as merger,

acquisition or change in form of business; legal standing; or authority to do business in Texas. A change in

Contractor’s name and certain changes in organizational structure require an amendment to this Contract in

accordance with the Amendments section of these General Provisions.

Section 12.19 Quality Management. Contractor shall comply with quality management requirements as

directed by the Department.

Section 12.20 Equipment. Equipment means an article of nonexpendable, tangible personal property

having a useful lifetime of more than one year and an acquisition cost of $5,000 or more. Contractors shall

inventory all equipment, and report the inventory on the Contractors Property Inventory Form or Form GC-11

as required under Section 12.23. Contractor shall initiate the purchase of all equipment approved in writing by

DSHS, in the first quarter of the Contract or Program Attachment term, as applicable. Failure to timely initiate

the purchase of equipment may result in the loss of availability of funds for the purchase of equipment.

Requests to purchase previously approved equipment after the first quarter of the Program Attachment must be

submitted to the contract manager assigned to the Program Attachment.

Section 12.21 Supplies. Supplies are defined as consumable items necessary to carry out the services under

this Contract including medical supplies, drugs, janitorial supplies, office supplies, patient educational

supplies, software, and any items of tangible personal property other than those defined as equipment above.

Tangible personal property includes controlled assets, including firearms, regardless of the acquisition cost,

and the following assets with an acquisition cost of $500 or more, but less than $5,000: desktop and laptop

computers (including notebooks, tablets and similar devices), non-portable printers and copiers, emergency

management equipment, communication devices and systems, medical and laboratory equipment, and media

equipment are also considered Supplies. Prior approval by DSHS of the purchase of controlled assets is not

required, but such purchases must be reported on the Contractors Property Inventory Form or Form GC-11 as

detailed under Section 12.23.

Section 12.22 Changes to Equipment List. All items of equipment to be purchased with funds under this

Contract must be itemized in Contractor’s equipment list as finally approved by the Department in the

executed Contract. Any changes to the approved equipment list in the executed Contract must be approved in

writing by Department prior to the purchase of equipment. Contractor shall submit to the contract manager

assigned to the Program Attachment, a written description including complete product specifications and need

justification prior to purchasing any item of unapproved equipment. If approved, Department will


acknowledge its approval by means of a written amendment or by written acceptance of Contractor’s Contract

Revision Request, as appropriate; or, in the case of minor changes to Contractor’s approved equipment list, by

email in accordance with the Contractor’s Financial Procedures Manual.

Section 12.23 Property Inventory and Protection of Assets. Contractor shall maintain an inventory of

equipment,supplies defined as controlled assets, and property described in the Other Intangible Property

section of Article XIII and submit an annual cumulative report of the equipment and other property on Form

GC-11 (Contractor’s Property Inventory Report) to the Department’s Contract Oversight and Support Section,

Mail Code 1326, P.O. Box 149347, Austin, Texas 78714-9347, no later than October 15th of each year. The

report is located on the DSHS website at http://www.dshs.state.tx.us/contracts/forms.shtm. Contractor shall

maintain, repair, and protect assets under this Contract to assure their full availability and usefulness. If

Contractor is indemnified, reimbursed, or otherwise compensated for any loss of, destruction of, or damage to

the assets provided or obtained under this Contract, Contractor shall use the proceeds to repair or replace those

assets.

Section 12.24 Bankruptcy. In the event of bankruptcy, Contractor shall sever Department property,

equipment, and supplies in possession of Contractor from the bankruptcy, and title must revert to Department.

If directed by DSHS, Contractor shall return all such property, equipment and supplies to DSHS. Contractor

shall ensure that its subcontracts, if any, contain a specific provision requiring that in the event the

subcontractor’s bankruptcy, the subcontractor must sever Department property, equipment, and supplies in

possession of the subcontractor from the bankruptcy, and title must revert to Department, who may require that

the property, equipment and supplies be returned to DSHS.

Section 12.25 Title to Property. At the conclusion of the contractual relationship between the Department

and Contractor, for any reason, title to any remaining equipment and supplies purchased with funds under this

Contract reverts to Department. Title may be transferred to any other party designated by Department. The

Department may, at its option and to the extent allowed by law, transfer the reversionary interest to such

property to Contractor.

Section 12.26 Property Acquisitions. Department funds must not be used to purchase buildings or real

property. Any costs related to the initial acquisition of the buildings or real property are not allowable.

Section 12.27 Disposition of Property. Contractor shall follow the procedures in the American Hospital

Association’s (AHA’s) “Estimated Useful Lives of Depreciable Hospital Assets” in disposing, at any time

during or after the Contract term, of equipment purchased with the Department funds, except when federal or

state statutory requirements supersede or when the equipment requires licensure or registration by the state, or

when the acquisition price of the equipment is equal to or greater than $5,000. All other equipment not listed

in the AHA reference (other than equipment that requires licensure or registration or that has an acquisition

cost equal to or greater than $5,000) will be controlled by the requirements of UGMS. If, prior to the end of

the useful life, any item of equipment is no longer needed to perform services under this Contract, or becomes

inoperable, or if the equipment requires licensure or registration or had an acquisition price equal to or greater

than $5,000, Contractor shall request disposition approval and instructions in writing from the contract

manager assigned to the Program Attachment. After an item reaches the end of its useful life, Contractor shall

ensure that disposition of any equipment is in accordance with Generally Accepted Accounting Principles, and

any applicable federal guidance.

Section 12.28 Closeout of Equipment. At the end of the term of a Program Attachment that has no

additional renewals or that will not be renewed (Closeout) or when a Program Attachment is otherwise

terminated, Contractor shall submit to the contract manager assigned to the Program Attachment, an inventory

of equipment purchased with Department funds and request disposition instructions for such equipment. All

equipment purchased with Department funds must be secured by Contractor at the time of Closeout or

http://www.dshs.state.tx.us/contracts/forms.shtm


termination of the Program Attachment and must be disposed of according to the Department’s disposition

instructions, which may include return of the equipment to DSHS or transfer of possession to another DSHS

contractor, at Contractor’s expense.

Section 12.29 Assets as Collateral Prohibited. Contractors on a cost reimbursement payment method shall

not encumber equipment purchased with Department funds without prior written approval from the

Department.

ARTICLE XIII GENERAL TERMS

Section 13.01 Assignment. Contractor shall not transfer, assign, or sell its interest, in whole or in part, in

this Contract, or in any equipment purchased with funds from this Contract, without the prior written consent

of the Department.

Section 13.02 Lobbying. Contractor shall comply with Tex. Gov. Code § 556.0055, which prohibits

contractors who receive state funds from using those funds to pay lobbying expenses. Further, Contractor

shall not use funds paid under this Contract, either directly or indirectly, to support the enactment, repeal,

modification, or adoption of any law, regulation or policy at any level of government, or to pay the salary or

expenses of any person related to any activity designed to influence legislation, regulation, policy or

appropriations pending before Congress or the state legislature, or for influencing or attempting to influence an

officer or employee of any federal or state agency, a member of Congress, an officer or employee of Congress,

or an employee of a member of Congress in connection with the awarding of any contract or the extension,

continuation, renewal, amendment, or modification of any contract (31 USC § 1352 and UGMS). If at any

time this Contract exceeds $100,000 of federal funds, Contractor shall file with the contract manager assigned

to the Program Attachment a declaration containing the name of any registrant under the Lobbying Disclosure

Act of 1995 who has made lobbying contacts on behalf of Contractor in connection with this Contract, a

certification that none of the funds provided by Department have been or will be used for payment to

lobbyists, and disclosure of the names of any and all registered lobbyists with whom Contractor has an

agreement. Contractor shall file the declaration, certification, and disclosure at the time of application for this

Contract; upon execution of this Contract unless Contractor previously filed a declaration, certification, or

disclosure form in connection with the award; and at the end of each calendar quarter in which any event

occurs that materially affects the accuracy of the information contained in any declaration, certification, or

disclosure previously filed. Contractor shall require any person who requests or receives a subcontract to file

the same declaration, certification, and disclosure with the contract manager assigned to the Program

Attachment. Contractor shall also comply, as applicable, with the lobbying restrictions and requirements in 2

CFR Part 230 (OMB Circulars A-122), Appendix B paragraph 25; 2 CFR Part 225 (A-87) Appendix B section

24; 2 CFR §215.27 (A-110) and 2 CFR Part 220 (A-21) Appendix A, subsection J.17 and J.28. Contractor

shall include this provision in any subcontracts.

Section 13.03 Conflict of Interest. Contractor represents to the Department that it and its -subcontractors, if

any, do not have nor shall Contractor or its subcontractors knowingly acquire or retain, any financial or other

interest that would conflict in any manner with the performance of their obligations under this Contract.

Potential conflicts of interest include, but are not limited to, an existing or potential business or personal

relationship between Contractor (or subcontractor), its principal (or a member of the principal’s immediate

family), or any affiliate or subcontractor and the Department or HHSC, their commissioners or employees, or

any other entity or person involved in any way in any project that is the subject of this Contract. Contractor

shall establish safeguards to prohibit employees and subcontractors and their employees from using their

positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of

interest or personal gain. If, at any time during the term of this Contract, Contractor or any of its

subcontractors has a conflict of interest or potential conflict of interest, Contractor shall disclose the actual or


potential conflict of interest to the contract manager assigned to the Program Attachment within ten (10) days

of when Contractor becomes aware of the existence of the actual or potential conflict of interest. Contractor

shall require each of its subcontractors to report to Contractor any conflict of interest or potential conflict of

interest the subcontractor has or may have within ten (10) days of when the subcontractor becomes aware of

the actual or potential conflict of interest.

Section 13.04 Transactions Between Related Parties. Contractor shall identify and report to DSHS any

transactions between Contractor and a related party that is part of the work that the Department is purchasing

under this Contract before entering into the transaction or immediately upon discovery. Contractor shall

submit to the contract manager assigned to the Program Attachment the name, address and telephone number

of the related party, how the party is related to Contractor and the work the related party will perform under

this Contract. A related party is a person or entity related to Contractor by blood or marriage, common

ownership or any association that permits either to significantly influence or direct the actions or policies of

the other. Contractor, for purposes of reporting transactions between related parties, includes the entity

contracting with the Department under this Contract as well as the chief executive officer, chief financial

officer and program director of Contractor. Contractor shall comply with Tex. Gov. Code Chapter 573.

Contractor shall maintain records and supply any additional information requested by the Department,

regarding a transaction between related parties, needed to enable the Department to determine the

appropriateness of the transaction pursuant to applicable state or federal law, regulations or circulars, which

may include 45 CFR part 74, OMB Circ. No. A-110, 2 CFR § 215.42, and UGMS.

Section 13.05 Intellectual Property. Tex. Health & Safety Code § 12.020 authorizes DSHS to protect

intellectual property developed as a result of this Contract.

a) “Intellectual property” means created property that may be protected under copyright, patent, or

trademark/service mark law.

b) For purposes of this Contract intellectual property prepared for DSHS use, or a work specially ordered

or commissioned through a contract for DSHS use is “work made for hire.” DSHS owns works made

for hire unless it agrees otherwise by contract. To the extent that title and interest to any such work

may not, by operation of law, vest in DSHS, or such work may not be considered a work made for

hire, Contractor irrevocably assigns the rights, title and interest therein to DSHS. DSHS has the right

to obtain and hold in its name any and all patents, copyrights, registrations or other such protections as

may be appropriate to the subject matter, and any extensions and renewals thereof. Contractor shall

give DSHS and the State of Texas, as well as any person designated by DSHS and the State of Texas,

all assistance required to perfect the rights defined herein without charge or expense beyond those

amounts payable to Contractor for goods provided or services rendered under this Contract.

c) If federal funds are used to finance activities supported by this Contract that result in the production of

intellectual property, the federal awarding agency reserves a royalty-free, nonexclusive, and

irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use, for federal

government purposes (1) the copyright in any intellectual property developed under this Contract,

including any subcontract; and (2) any rights of copyright to which a Contractor purchases ownership

with contract funds. Contractor shall place an acknowledgment of federal awarding agency grant

support and a disclaimer, as appropriate, on any publication written or published with such support

and, if feasible, on any publication reporting the results of or describing a grant-supported activity. An

acknowledgment must be to the effect that “This publication was made possible by grant number

_____ from (federal awarding agency)” or “The project described was supported by grant number

______ from (federal awarding agency)” and “Its contents are solely the responsibility of the authors

and do not necessarily represent the official views of the (federal awarding agency).”

d) If the terms of a federal grant award the copyright to Contractor, DSHS reserves a royalty-free,

nonexclusive, worldwide and irrevocable license to reproduce, publish or otherwise use, and to

authorize others to use, for DSHS, public health, and state governmental noncommercial purposes (1)


the copyright, trademark, service mark, and/or patent on an invention, discovery, or improvement to

any process, machine, manufacture, or composition of matter; products; technology; scientific

information; trade secrets; and computer software, in any work developed under a grant, subgrant, or

contract under a grant or subgrant; and (2) any rights of copyright, service or trade marks or patents to

which a grantee, subgrantee or a Contractor purchases ownership with contract funds.

e) If the results of the contract performance are subject to copyright law, Contractor cannot publish those

results without prior review and approval of DSHS. Contractor shall submit requests for review and

approval to the contract manager assigned to the Program Attachment.

Section 13.06 Other Intangible Property. At the conclusion of the contractual relationship between

Department and Contractor, for any reason, Department shall have the sole ownership rights and interest in all

non-copyrightable intangible property that was developed, produced or obtained by Contractor as a specific

requirement under this Contract or under any grant that funds this Contract, such as domain names, URLs,

software licenses with a value of $500 or more, etc. Contractor shall inventory all such non-copyrightable

intangible property. Contractor shall cooperate with Department and perform all actions necessary to transfer

ownership of such property to the Department or its designee, or otherwise affirm Department’s ownership

rights and interest in such property. This provision will survive the termination or expiration of this Contract.

Section 13.07 Severability and Ambiguity. If any provision of this Contract is construed to be illegal or

invalid, the illegal or invalid provision will be deemed stricken and deleted to the same extent and effect as if

never incorporated, but all other provisions will continue. The Parties represent and agree that the language

contained in this Contract is to be construed as jointly drafted, proposed and accepted.

Section 13.08 Legal Notice. Any notice required or permitted to be given by the provisions of this Contract

will be deemed to have been received by a Party on the third business day after the date on which it was

mailed to the Party at the address specified by the Party to the other Party in writing or, if sent by certified

mail, on the date of receipt.

Section 13.09 Successors. This Contract will be binding upon the Parties and their successors and

assignees, except as expressly provided in this Contract.

Section 13.10 Headings. The articles and section headings used in this Contract are for convenience of

reference only and will not be construed in any way to define, limit or describe the scope or intent of any

provisions.

Section 13.11 Parties. The Parties represent to each other that they are entities fully familiar with

transactions of the kind reflected by the contract documents, and are capable of understanding the terminology

and meaning of their terms and conditions and of obtaining independent legal advice pertaining to this

Contract.

Section 13.12 Survivability of Terms. Termination or expiration of this Contract or a Program Attachment

for any reason will not release either Party from any liabilities or obligations in this Contract that (a) the

Parties have expressly agreed will survive any such termination or expiration, or (b) remain to be performed or

(c) by their nature would be intended to be applicable following any such termination or expiration.

Section 13.13 Direct Operation. At the Department’s discretion, the Department may temporarily assume

operations of a Contractor’s program or programs funded under this Contract when the continued operation of

the program by Contractor puts at risk the health or safety of clients and/or participants served by Contractor.

Section 13.14 Customer Service Information. If requested, Contractor shall supply such information as

required by the Department to comply with the provisions of Tex. Gov. Code Chapter 2114 regarding


Customer Service surveys.

Section 13.15 Amendment. The Parties agree that the Department may unilaterally reduce funds pursuant

to the terms of this Contract without the written agreement of Contractor. All other amendments to this

Contract must be in writing and agreed to by both Parties, except as otherwise specified in the Contractor’s

Notification of Change to Certain Contract Provisions section or the Contractor’s Request for Revision to

Certain Contract Provisions section of this Article. Contractor’s request for certain budget revisions or other

amendments must be submitted in writing, including a justification for the request, to the contract manager

assigned to the Program Attachment; and if a budget revision or amendment is requested during the last

quarter of the Contract or Program Attachment term, as applicable, Contractor’s written justification must

include a reason for the delay in making the request. Revision or other amendment requests may be granted at

the discretion of DSHS. Except as otherwise provided in this Article, Contractor shall not perform or produce,

and DSHS will not pay for the performance or production of, different or additional goods, services, work or

products except pursuant to an amendment of this Contract that is executed in compliance with this section;

and DSHS will not waive any term, covenant, or condition of this Contract unless by amendment or otherwise

in compliance with this Article.

Section 13.16 Contractor’s Notification of Change to Certain Contract Provisions. The following

changes may be made to this Contract without a written amendment or the Department’s prior approval:

a) contractor’s contact person and contact information;

b) contact information for key personnel, as stated in Contractor’s response to the Solicitation Document,

if any;

c) cumulative budget transfers that exceed 25% among direct cost categories, other than the equipment

category, of cost reimbursement contract Program Attachments of less than $100,000, provided that

the total budget amount is unchanged (This subsection does not apply to contracts funded by funding

sources that have different percentage requirements);

d) minor corrections or clarifications to the Contract language that in no way alter the scope of work,

objectives or performance measures; and

e) a change in Contractor’s share of the budget concerning non-DSHS funding other than program

income and match, regardless of the amount of the change, provided that in changing the budget,

Contractor is not supplanting DSHS funds.

Contractor within ten (10) calendar days shall notify in writing the contract manager assigned to the Program

Attachment of any change enumerated in this section, but the contract will not be amended. The notification

may be by letter, fax or email. Except for contracts funded by funding sources that have different percentage

requirements, cumulative budget line item transfers of 25% or less among direct cost categories, other than

equipment, of cost reimbursement contracts of any amount do not require written amendment or prior approval

or notification.

Section 13.17 Contractor’s Request for Revision of Certain Contract Provisions. A Contractor’s

Revision Request is an alternative method for amending certain specified provisions of this Contract that is

initiated by Contractor, but must be approved by DSHS. The following amendments to this Contract may be

made through a Contractor’s Revision Request, rather than through the amendment process described in the

Amendment section of this Article:

a) cumulative budget transfers among direct cost categories, other than the equipment category, that

exceed 25% of Program Attachments of $100,000 or more, provided that the total budget amount is

unchanged (This subsection does not apply to contracts funded by funding sources that have different

percentage requirements);

b) budget transfer to other categories of funds for direct payment to trainees for training allowances;

c) change in clinic hours or location;


d) change in the equipment list substituting an item of equipment equivalent to an item of equipment on

the approved budget;

e) changes in the equipment category of a previously approved equipment budget;

f) changes specified in applicable OMB Circular cost principles as requiring prior approval, regardless of

dollar threshold (e.g., foreign travel expenses, overtime premiums, membership fees; and

g) cumulative budget transfers into or out of the equipment category that do not exceed 10% of any

Program Attachment, provided that the total budget amount is unchanged (cumulative transfers from

or to the equipment category that equal or exceed 10% of any Program Attachment require an

amendment to this Contract as described in the Amendment section of this Article).

In order to request a revision of any of the enumerated provisions, Contractor shall request the change in

writing from their assigned contract manager. A separate Contractor Revision Request is required for each

Program Attachment to be revised. Circumstances of a requested contract revision may indicate the need for

an amendment described in the Amendment section of this Article rather than a contract revision amendment

under this section.

Section 13.18 Immunity Not Waived. THE PARTIES EXPRESSLY AGREE THAT NO

PROVISION OF THIS CONTRACT IS IN ANY WAY INTENDED TO CONSTITUTE A

WAIVER BY DEPARTMENT OR THE STATE OF TEXAS OF ANY IMMUNITIES FROM SUIT

OR FROM LIABILITY THAT DEPARTMENT OR THE STATE OF TEXAS MAY HAVE BY

OPERATION OF LAW.

Section 13.19 Hold Harmless and Indemnification. Contractor, as an independent contractor, agrees to

hold Department, the State of Texas, individual state employees and officers, and the federal government

harmless and to indemnify them from any and all liability, suits, claims, losses, damages and judgments; and

to pay all costs, fees, and damages to the extent that such costs, fees, and damages arise from performance or

nonperformance of Contractor, its employees, subcontractors, joint venture participants or agents under this

Contract.

Section 13.20 Waiver. Acceptance by either Party of partial performance or failure to complain of any

action, non-action or default under this Contract will not constitute a waiver of either Party’s rights under this

Contract.

Section 13.21 Electronic and Information Resources Accessibility and Security Standards. As required

by 1 Tex. Admin. Code Chapters 213 and 206, as a state agency, DSHS must procure products that comply

with the State of Texas Accessibility requirements for Electronic and Information Resources specified in 1

Tex. Admin. Code Chapter 213 and Website Accessibility Standards/Specifications specified in 1 Tex. Admin.

Code Chapter 206 (collectively EIR Standards) when such products are available in the commercial

marketplace or when such products are developed in response to a procurement solicitation. If performance

under this Contract includes the development, modification or maintenance of a website or other electronic and

information resources for DSHS or for the public on behalf of DSHS, Contractor certifies that the website or

other electronic and information resources comply with the EIR Standards. Contractor further certifies that any

network hardware or software purchased or provided under this Contract has undergone independent

certification testing for known and relevant vulnerabilities, in accordance with rules adopted by Department of

Information Resources.

Section 13.22 Force Majeure. Neither Party will be liable for any failure or delay in performing all or some

of its obligations, as applicable, under this Contract if such failure or delay is due to any cause beyond the

reasonable control of such Party, including, but not limited to, extraordinarily severe weather, strikes, natural

disasters, fire, civil disturbance, epidemic, war, court order, or acts of God. The existence of any such cause of

delay or failure will extend the period of performance in the exercise of reasonable diligence until after the


cause of the delay or failure no longer exists and, if applicable, for any reasonable period of time thereafter

required to resume performance. A Party, within a period of time reasonable under the circumstances, must

inform the other by any reasonable method (phone, email, etc.) and, as soon as practicable, must submit

written notice with proof of receipt, of the existence of a force majeure event or otherwise waive the right as a

defense to non-performance.

Section 13.23 Interim Contracts. The Parties agree that the Contract and/or any of its Program

Attachments will automatically continue as an “Interim Contract” beyond the expiration date of the term of the

Contract or Program Attachment(s), as applicable, under the following circumstances: (1) on or shortly prior to

the expiration date of the Contract or Program Attachment, there is a state of disaster declared by the Governor

that affects the ability or resources of the DSHS contract or program staff managing the Contract to complete

in a timely manner the extension, renewal, or other standard contract process for the Contract or Program

Attachment; and (2) DSHS makes the determination in its sole discretion that an Interim Contract is

appropriate under the circumstances. DSHS will notify Contractor promptly in writing if such a determination

is made. The notice will specify whether DSHS is extending the Contract or Program Attachment for

additional time for Contractor to perform or complete the previously contracted goods and services (with no

new or additional funding) or is purchasing additional goods and services as described in the Program

Attachment for the term of the Interim Contract, or both. The notice will include billing instructions and

detailed information on how DSHS will fund the goods or services to be procured during the Interim Contract

term. The Interim Contract will terminate thirty (30) days after the disaster declaration is terminated unless the

Parties agree to a shorter period of time.

Section 13.24 Cooperation and Communication. Contractor shall cooperate with Department staff and, as

applicable, other DSHS contractors, and shall promptly comply with requests from DSHS for information or

responses to DSHS inquiries concerning Contractor’s duties or responsibilities under this Contract.

ARTICLE XIV BREACH OF CONTRACT AND REMEDIES FOR NON-COMPLIANCE

Section 14.01 Actions Constituting Breach of Contract. Actions or inactions that constitute breach of

contract include, but are not limited to, the following:

a) failure to properly provide the services and/or goods purchased under this Contract;

b) failure to comply with any provision of this Contract, including failure to comply with all applicable

statutes, rules or regulations;

c) failure to pay refunds or penalties owed to the Department;

d) failure to comply with a repayment agreement with the DSHS or agreed order issued by DSHS;

e) failure by Contractor to provide a full accounting of funds expended under this Contract;

f) discovery of a material misrepresentation in any aspect of Contractor’s application or response to the

Solicitation Document;

g) any misrepresentation in the assurances and certifications in Contractor’s application or response to

the Solicitation Document or in this Contract; or

h) Contractor is on or is added to the Excluded Parties List System (EPLS).

Section 14.02 General Remedies and Sanctions. The Department will monitor Contractor for both

programmatic and financial compliance. The remedies and sanctions in this section are available to the

Department against Contractor and any entity that subcontracts with Contractor for provision of services or

goods. HHSC OIG may investigate, audit and impose or recommend imposition of remedies or sanctions to

Department for any breach of this Contract and may monitor Contractor for financial compliance. The

Department may impose one or more remedies or sanctions for each item of noncompliance and will


determine remedies or sanctions on a case-by-case basis. Contractor is responsible for complying with all of

the terms of this Contract. The listing of or use of one or more of the remedies or sanctions in this section does

not relieve Contractor of any obligations under this Contract. A state or federal statute, rule or regulation, or

federal guideline will prevail over the provisions of this Article unless the statute, rule, regulation, or guideline

can be read together with the provision(s) of this Article to give effect to both. If Contractor breaches this

Contract by failing to comply with one or more of the terms of this Contract, including but not limited to

compliance with applicable statutes, rules or regulations, the Department may take one or more of the

following actions:

a) terminate this Contract or a Program Attachment of this Contract as it relates to a specific program

type. In the case of termination, the Department will inform Contractor of the termination no less than

thirty (30) calendar days before the effective date of the termination in a notice of termination, except

for circumstances that require immediate termination as described in the Emergency Action section of

this Article. The notice of termination will state the effective date of the termination, the reasons for

the termination, and, if applicable, alert Contractor of the opportunity to request a hearing on the

termination pursuant to Tex. Gov. Code Chapter 2105 regarding administration of Block Grants.

Contractor shall not make any claim for payment or reimbursement for services provided from the

effective date of termination;

b) suspend all or part of this Contract. Suspension is an action taken by the Department in which the

Contractor is notified to temporarily (1) discontinue performance of all or part of the Contract, and/or

(2) discontinue incurring expenses otherwise allowable under the Contract as of the effective date of

the suspension, pending DSHS’s determination to terminate or amend the Contract or permit the

Contractor to resume performance and/or incur allowable expenses. Contractor shall not bill DSHS for

services performed during suspension, and Contractor’s costs resulting from obligations incurred by

Contractor during a suspension are not allowable unless expressly authorized by the notice of

suspension;

c) deny additional or future contracts with Contractor;

d) reduce the funding amount for failure to 1) provide goods and services as described in this Contract or

consistent with Contract performance expectations, 2) achieve or maintain the proposed level of

service, 3) expend funds appropriately and at a rate that will make full use of the award, or 4) achieve

local match, if required;

e) disallow costs and credit for matching funds, if any, for all or part of the activities or action not in

compliance;

f) temporarily withhold cash payments. Temporarily withholding cash payments means the temporary

withholding of a working capital advance, if applicable, or reimbursements or payments to Contractor

for proper charges or obligations incurred, pending resolution of issues of noncompliance with

conditions of this Contract or indebtedness to the United States or to the State of Texas;

g) permanently withhold cash payments. Permanent withholding of cash payment means that

Department retains funds billed by Contractor for (1) unallowable, undocumented, disputed,

inaccurate, improper, or erroneous billings; (2) material failure to comply with Contract provisions; or

(3) indebtedness to the United States or to the State of Texas;

h) declare this Contract void upon the Department’s determination that this Contract was obtained

fraudulently or upon the Department’s determination that this Contract was illegal or invalid from this

Contract’s inception and demand repayment of any funds paid under this Contract;

i) request that Contractor be removed from the Centralized Master Bidders List (CMBL) or any other

state bid list, and barred from participating in future contracting opportunities with the State of Texas;

j) delay execution of a new contract or contract renewal with Contractor while other imposed or

proposed sanctions are pending resolution;

k) place Contractor on probation. Probation means that Contractor will be placed on accelerated

monitoring for a period not to exceed six (6) months at which time items of noncompliance must be

resolved or substantial improvement shown by Contractor. Accelerated monitoring means more


frequent or more extensive monitoring will be performed by Department than would routinely be

conducted;

l) require Contractor to obtain technical or managerial assistance;

m) establish additional prior approvals for expenditure of funds by Contractor;

n) require additional or more detailed, financial and/or programmatic reports to be submitted by

Contractor;

o) demand repayment from Contractor when it is verified that Contractor has been overpaid, e.g., because

of disallowed costs, payments not supported by proper documentation, improper billing or accounting

practices, or failure to comply with Contract terms;

p) pursue a claim for damages as a result of breach of contract;

q) require Contractor to prohibit any employee or volunteer of Contractor from performing under this

Contract or having direct contact with DSHS-funded clients or participants, or require removal of any

employee, volunteer, officer or governing body member, if the employee, volunteer, officer or

member of the governing body has been indicted or convicted of the misuse of state or federal funds,

fraud or illegal acts that are in contraindication to continued obligations under this Contract, as

reasonably determined by DSHS;

r) withhold any payments to Contractor to satisfy any recoupment, liquidated damages, match

insufficiency, or any penalty (if the penalty is permitted by statute) imposed by DSHS, and take

repayment from funds available under this Contract in amounts necessary to fulfill Contractor’s

payment or repayment obligations;

s) reduce the Contract term;

t) recoup improper payments when it is verified that Contractor has been overpaid, e.g., because of

disallowed costs, payments not supported by proper documentation, improper billing or accounting

practices or failure to comply with Contract terms;

u) assess liquidated damages;

v) demand repayment of an amount equal to the amount of any match Contractor failed to provide, as

determined by DSHS;

w) impose other remedies, sanctions or penalties permitted by statute.

Section 14.03 Notice of Remedies or Sanctions. Department will formally notify Contractor in writing

when a remedy or sanction is imposed (with the exception of accelerated monitoring, which may be

unannounced), stating the nature of the remedies and sanction(s), the reasons for imposing them, the corrective

actions, if any, that must be taken before the actions will be removed and the time allowed for completing the

corrective actions, and the method, if any, of requesting reconsideration of the remedies and sanctions

imposed. Other than in the case of repayment or recoupment, Contractor is required to file, within fifteen (15)

calendar days of receipt of notice, a written response to Department acknowledging receipt of such notice. If

requested by the Department, the written response must state how Contractor shall correct the noncompliance

(corrective action plan) or demonstrate in writing that the findings on which the remedies or sanction(s) are

based are either invalid or do not warrant the remedies or sanction(s). If Department determines that a remedy

or sanction is warranted, unless the remedy or sanction is subject to review under a federal or state statute,

regulation, rule, or guideline, Department’s decision is final. Department will provide written notice to

Contractor of Department’s decision. If required by the Department, Contractor shall submit a corrective

action plan for DSHS approval and take corrective action as stated in the approved corrective action plan. If

DSHS determines that repayment is warranted, DSHS will issue a demand letter to Contractor for repayment.

If full repayment is not received within the time limit stated in the demand letter, and if recoupment is

available, DSHS will recoup the amount due to DSHS from funds otherwise due to Contractor under this

Contract.

Section 14.04 Emergency Action. In an emergency, Department may immediately terminate or suspend all

or part of this Contract, temporarily or permanently withhold cash payments, deny future contract awards, or


delay contract execution by delivering written notice to Contractor, by any verifiable method, stating the

reason for the emergency action. An “emergency” is defined as the following:

a) Contractor is noncompliant and the noncompliance has a direct adverse effect on the public or client

health, welfare or safety. The direct adverse effect may be programmatic or financial and may include

failing to provide services, providing inadequate services, providing unnecessary services, or using

resources so that the public or clients do not receive the benefits contemplated by the scope of work or

performance measures; or

b) Contractor is expending funds inappropriately.

Whether Contractor’s conduct or noncompliance is an emergency will be determined by Department on a

case-by-case basis and will be based upon the nature of the noncompliance or conduct.

ARTICLE XV CLAIMS AGAINST THE DEPARTMENT

Section 15.01 Breach of Contract Claim. The process for a breach of contract claim against the

Department provided for in Tex. Gov. Code Chapter 2260 and implemented in Department Rules §§ 4.11-

4.24 will be used by DSHS and Contractor to attempt to resolve any breach of contract claim against DSHS.

Section 15.02 Notice. Contractor’s claims for breach of this Contract that the Parties cannot resolve in the

ordinary course of business must be submitted to the negotiation process provided in Tex. Gov Code Chapter

2260, subchapter B. To initiate the process, Contractor shall submit written notice, as required by subchapter

B, to DSHS’s Office of General Counsel. The notice must specifically state that the provisions of Chapter

2260, subchapter B, are being invoked. A copy of the notice must also be given to all other representatives of

DSHS and Contractor. Subchapter B is a condition precedent to the filing of a contested case proceeding under

Tex. Gov. Code Chapter 2260, subchapter C.

Section 15.03 Sole Remedy. The contested case process provided in Tex. Gov. Code Chapter 2260,

subchapter C, is Contractor’s sole and exclusive process for seeking a remedy for any and all alleged breaches

of contract by DSHS if the Parties are unable to resolve their disputes under this Article.

Section 15.04 Condition Precedent to Suit. Compliance with the contested case process provided in Tex.

Gov. Code Chapter 2260, subchapter C, is a condition precedent to seeking consent to sue from the Legislature

under Tex. Civ. Prac. & Rem. Code Chapter 107. Neither the execution of this Contract by DSHS nor any

other conduct of any representative of DSHS relating to this Contract will be considered a waiver of sovereign

immunity to suit.

Section 15.05 Performance Not Suspended. Neither the occurrence of an event nor the pendency of a

claim constitutes grounds for the suspension of performance by Contractor, in whole or in part.

ARTICLE XVI TERMINATION AND TEMPORARY SUSPENSION

Section 16.01 Expiration of Contract or Program Attachment(s). Except as provided in the Survivability

of Terms section of the General Terms Article, Contractor’s service obligations stated in each Program

Attachment will end upon the expiration date of that Program Attachment unless extended or renewed by

written amendment. Prior to completion of the term of all Program Attachments, all or a part of this Contract

may be terminated with or without cause under this Article.

Section 16.02 Effect of Termination. Termination is the permanent withdrawal of Contractor’s authority to

obligate previously awarded funds before that authority would otherwise expire or the voluntary

relinquishment by Contractor of the authority to obligate previously awarded funds. Contractor’s costs


resulting from obligations incurred by Contractor after termination of an award are not allowable unless

expressly authorized by the notice of termination. Upon termination of this Contract or Program Attachment,

as applicable, Contractor shall cooperate with DSHS to the fullest extent possible to ensure the orderly and

safe transfer of responsibilities under this Contract or Program Attachment, as applicable, to DSHS or another

entity designated by DSHS. Upon termination of all or part of this Contract, Department and Contractor will

be discharged from any further obligation created under the applicable terms of this Contract or the Program

Attachment, as applicable, except for the equitable settlement of the respective accrued interests or obligations

incurred prior to termination and for Contractor’s duty to cooperate with DSHS, and except as provided in the

Survivability of Terms section of the General Terms Article. Termination does not, however, constitute a

waiver of any remedies for breach of this Contract. In addition, Contractor’s obligations to retain records and

maintain confidentiality of information will survive this Contract.

Section 16.03 Acts Not Constituting Termination. Termination does not include the Department’s (1)

withdrawal of funds awarded on the basis of Contractor’s underestimate of the unobligated balance in a prior

period; (2) withdrawal of the unobligated balance at the expiration of the term of a program attachment; (3)

refusal to extend a program attachment or award additional funds to make a competing or noncompeting

continuation, renewal, extension, or supplemental award; (4) non-renewal of a contract or program attachment

at Department’s sole discretion; or (5) voiding of a contract upon determination that the award was obtained

fraudulently, or was otherwise illegal or invalid from inception.

Section 16.04 Termination or Temporary Suspension Without Cause.

a) Either Party may terminate this Contract or a Program Attachment, as applicable, with at least thirty

(30) calendar days prior written notice to the other Party, except that if Contractor seeks to terminate a

Contract or Program Attachment that involves residential client services, Contractor shall give the

Department at least ninety (90) calendar days prior written notice and shall submit a transition plan to

ensure client services are not disrupted.

b) The Parties may terminate this Contract or a Program Attachment by mutual agreement.

c) DSHS may temporarily suspend or terminate this Contract or a Program Attachment if funds become

unavailable through lack of appropriations, budget cuts, transfer of funds between programs or health

and human services agencies, amendments to the Appropriations Act, health and human services

consolidations, or any disruption of current appropriated funding for this Contract or Program

Attachment. Contractor will be notified in writing of any termination or temporary suspension or of

any cessation of temporary suspension. Upon notification of temporary suspension, Contractor shall

discontinue performance under the Contract as of the effective date of the suspension, for the duration

of the suspension.

d) Department may terminate this Contract or a Program Attachment immediately when, in the sole

determination of Department, termination is in the best interest of the State of Texas.

Section 16.05 Termination For Cause. Either Party may terminate for material breach of this Contract with

at least thirty (30) calendar days written notice to the other Party. Department may terminate this Contract, in

whole or in part, for breach of contract or for any other conduct that jeopardizes the Contract objectives, by

giving at least thirty (30) calendar days written notice to Contractor. Such conduct may include one or more of

the following:

a) Contractor has failed to adhere to any laws, ordinances, rules, regulations or orders of any public

authority having jurisdiction;

b) Contractor fails to communicate with Department or fails to allow its employees or those of its

subcontractor to communicate with Department as necessary for the performance or oversight of this

Contract;

c) Contractor breaches a standard of confidentiality with respect to the services provided under this

Contract;


d) Department determines that Contractor is without sufficient personnel or resources to perform under

this Contract or that Contractor is otherwise unable or unwilling to fulfill any of its requirements under

this Contract or exercise adequate control over expenditures or assets;

e) Department determines that Contractor, its agent or another representative offered or gave a gratuity

(e.g., entertainment or gift) to an official or employee of DSHS or HHSC for the purpose of obtaining

a contract or favorable treatment;

f) Department determines that this Contract includes financial participation by a person who received

compensation from DSHS to participate in developing, drafting or preparing the specifications,

requirements or statement(s) of work or Solicitation Document on which this Contract is based in

violation of Tex. Gov. Code § 2155.004; or Department determines that Contractor was ineligible to

receive this Contract under Tex. Gov. Code §§ 2155.006 or 2261.053 related to certain disaster

response contracts;

g) Contractor appears to be financially unstable. Indicators of financial instability may include one or

more of the following:

1) Contractor fails to make payments for debts;

2) Contractor makes an assignment for the benefit of its creditors;

3) Contractor admits in writing its inability to pay its debts generally as they become due;

4) if judgment for the payment of money in excess of $50,000 (that is not covered by insurance) is

rendered by any court or governmental body against Contractor, and Contractor does not (a)

discharge the judgment, or (b) provide for its discharge in accordance with its terms, or (c) procure

a stay of execution within thirty (30) calendar days from the date of entry of the judgment, or (d) if

the execution is stayed, within the thirty (30)-day period or a longer period during which

execution of the judgment has been stayed, appeal from the judgment and cause the execution to

be stayed during such appeal while providing such reserves for the judgment as may be required

under Generally Accepted Accounting Principles;

5) a writ or warrant of attachment or any similar process is issued by any court against all or any

material portion of the property of Contractor, and such writ or warrant of attachment or any

similar process is not released or bonded within thirty (30) calendar days after its issuance;

6) Contractor is adjudicated bankrupt or insolvent;

7) Contractor files a case under the Federal Bankruptcy Code or seeks relief under any provision of

any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution,

receivership or liquidation law of any jurisdiction then in effect, or consents to the filing of any

case or petition against it under any such law;

8) any property or portion of the property of Contractor is sequestered by court order and the order

remains in effect for more than thirty (30) calendar days after Contractor obtains knowledge of the

sequestration;

9) a petition is filed against Contractor under any state reorganization, arrangement, insolvency,

readjustment of debt, dissolution, receivership or liquidation law of any jurisdiction then in effect,

and the petition is not dismissed within thirty (30) calendar days; or

10) Contractor consents to the appointment of a receiver, trustee, or liquidator of Contractor or of all

or any part of its property;

h) Contractor’s management system does not meet the UGMS management standards; or

i) Any required license, certification, permit, registration or approval required to conduct Contractor’s

business or to perform services under this Contract is not obtained or is revoked, is surrendered,

expires, is not renewed, is inactivated or is suspended.


Section 16.06 Notice of Termination. Either Party may deliver written notice of intent to terminate by any

verifiable method. If either Party gives notice of its intent to terminate all or a part of this Contract,

Department and Contractor shall attempt to resolve any issues related to the anticipated termination in good

faith during the notice period.

ARTICLE XVII VOID, SUSPENDED, AND TERMINATED CONTRACTS

Section 17.01 Void Contracts. Department may void this Contract upon determination that the award was

obtained fraudulently or was otherwise illegal or invalid from its inception.

Section 17.02 Effect of Void, Suspended, or Involuntarily Terminated Contract. A Contractor who has

been a party to a contract with DSHS that has been found to be void, or is suspended, or is terminated for

cause is not eligible for expansion of current contracts, if any, or new contracts or renewals until, in the case of

suspension or termination, the Department has determined that Contractor has satisfactorily resolved the issues

underlying the suspension or termination. Additionally, if this Contract is found to be void, any amount paid

is subject to repayment.

Section 17.03 Appeals Rights. Pursuant to Tex. Gov. Code § 2105.302, after receiving notice from the

Department of termination of a contract with DSHS funded by block grant funds, Contractor may request an

administrative hearing under Tex. Gov. Code Chapter 2001.

ARTICLE XVIII CLOSEOUT

Section 18.01 Cessation of Services At Closeout. Upon expiration of this Contract or Program Attachment,

as applicable, (and any renewals of this Contract or Program Attachment) on its own terms, Contractor shall

cease services under this Contract or Program Attachment; and shall cooperate with DSHS to the fullest extent

possible upon expiration or prior to expiration, as necessary, to ensure the orderly and safe transfer of

responsibilities under this Contract to DSHS or another entity designated by DSHS. Upon receiving notice of

Contract or Program Attachment termination or non-renewal, Contractor shall immediately begin to effect an

orderly and safe transition of recipients of services to alternative service providers, as needed. Contractor also

shall completely cease providing services under this Contract or Program Attachment by the date specified in

the termination or non-renewal notice. Contractor shall not bill DSHS for services performed after termination

or expiration of this Contract or Program Attachment, or incur any additional expenses once this Contract or

Program Attachment is terminated or has expired. Upon termination, expiration (with no renewal) or non-

renewal of this Contract or a Program Attachment, Contractor shall immediately initiate Closeout activities

described in this Article.

Section 18.02 Administrative Offset. The Department has the right to administratively offset amounts

owed by Contractor against billings.

Section 18.03 Deadline for Closeout. Contractor shall submit all financial, performance, and other

Closeout reports required under this Contract within sixty (60) calendar days after the Contract or Program

Attachment end date. Unless otherwise provided under the Final Billing Submission section of the Payment

Methods and Restrictions Article, the Department is not liable for any claims that are not received within sixty

(60) calendar days after the Contract or Program Attachment end date.

Section 18.04 Payment of Refunds. Any funds paid to Contractor in excess of the amount to which

Contractor is finally determined to be entitled under the terms of this Contract constitute a debt to the

Department and will result in a refund due, which Contractor shall pay within the time period established by

the Department.


Section 18.05 Disallowances and Adjustments. The Closeout of this Contract or Program Attachment does

not affect the Department’s right to disallow costs and recover funds on the basis of a later audit or other

review or Contractor’s obligation to return any funds due as a result of later refunds, corrections, or other

transactions.

City of San Angelo

Memo

Meeting Date: October 1, 2013

To: City Council members

From: Kevin Boyd, Planner

Subject: OK Holdings, LLC: "County Road" Street Abandonment, a request for

approval of a street abandonment of County Road which extends approximately 400 feet northeast from Link Road where it terminates.

Location: An approximately 400 foot x 60 foot street segment situated

approximately 2,600 feet northwest of the intersection of Link Road and Christoval Road along Link Road, immediately west of the Concho River Estates, Block 34 in southern San Angelo.

Contacts: OK Holdings, LLC., Owner 940-393-6502

Kevin Boyd, Planner 325-657-4210

Caption: First Public Hearing and consideration of introduction of an

Ordinance authorizing abandonment of public right-of-way for "County Road" extending approximately 400’ northeast of Link Road, immediately west of the Concho River Estates, Block 34, in southern San Angelo

AN ORDINANCE PROVIDING FOR THE ABANDONMENT AND

CLOSING OF THE FOLLOWING STREET SEGMENT, TO WIT: An approximately 400 foot x 60 foot street segment situated approximately 2,600 feet northwest of the intersection of Link Road and Christoval Road along Link Road, immediately west of the Concho River Estates, Block 34, in southern San Angelo; AUTHORIZING THE CONVEYANCE THEREOF TO THE ABUTTING PROPERTY OWNERS; PROVIDING FOR THE TERMS AND CONDITIONS OF ABANDONMENT AND CONVEYANCE; AND PROVIDING FOR THE MAYOR TO EXECUTE AND DELIVER A QUIT CLAIM DEED TO THE ABUTTING PROPERTY OWNERS

Summary: The City Council may:

(1) Approve the proposed abandonment; or

(2) Modify the proposed abandonment subject to conditions; or

(3) Deny the proposed abandonment.

Recommendation: City staff recommends approving, subject to conditions

as listed below, the proposed street abandonment for the reasons mentioned in this report. Planning Commission recommended approval of this request by a vote of 7-0 on September 16, 2013.

History and Background:

Earlier last month, the proponent made a request to formally abandon "County Road" that extends northeast of Link Road. Currently, the unnamed street measures roughly 60 feet wide and has a dead-end after 400 feet (towards the northeast of the site). Although the street segment that adjoins Link Road and is virtually aligned with Jackrabbit Trail, staff found no evidence that the two streets were ever connected at any time. The proponent, OK Holdings, LLC., initiated this request to abandon the street segment, and owns several large tracts south of the property. Whenever streets or alleyways are abandoned the subject area is evenly divided in half and offered to the adjacent property owner (the owner would have to purchase that portion of the land).

General Information

Existing Zoning: Heavy Commercial (CH) Existing Land Use: N/A Surrounding Zoning/Land Use:

North: Heavy Commercial (CH) and Ranch & Estate (R&E)

Open Space and Warren CAT (Contractor Equipment & Supplies)

West: Heavy Commercial (CH) and Ranch & Estate (R&E)

S US Highway 87 and W Loop 306 Interchange

South: Heavy Commercial (CH), Office Warehouse (OW) and Heavy Manufacturing

Open space, oil field related services

East: Heavy Commercial (CH) and Heavy Manufacturing (MH)

Open space, oil field related services

Storm Water/Drainage: Abandoning the street segment is not expected to

create any storm water or drainage issues. Topography: Abandoning the street segment is not expected to

change the topography of the area. Water/Sewer Utilities: Abandoning the street segment is not expected to

create any water / sewer issues. Fire Protection: Abandoning the street segment is not expected to

create any fire protection issues. Access Management: Abandoning the street segment is not expected to

create any access management issues. However a

survey of the area to be abandoned does need to be provided.

Notification required: Yes Notifications Sent: 4 Received In favor 0 Received in opposition 0

Special Information

Private Utilities: An easement will be necessary to access AEP

poles that exists along the northern portion of the street segment.

Basis for Recommendation

After an internal review of the site, staff believes that it is not in the city's interest to continue to maintain the unimproved street. Although the history of street is unclear, it appears to be a remnant of a longer street - now it serves as a segment that terminates roughly 400 feet northeast of Link Road and does not provide necessary access to any lot in particular. In examining the city’s Thoroughfare Plan, there is no plan for future street expansion in the immediate area. More, no utility lines lie within the proposed area - there is, however, an AEP line (also consisting of elevated poles) that run along the northern portion of the segment; based on input from AEP, staff recommends that the proponent receives written confirmation establishing that those transmission lines will not adversely be affected by the proposed street abandonment and be accessible to the company via an easement for general maintenance and improvements to their facilities (see conditions).

Elimination of the street will be beneficial to surrounding properties. The street

projects literately from Link Road and does not connect or provide access to any other street. Given the fact that the orientation of segment seems to align with Jackrabbit Trail, a local street - it separates from the segment by roughly 1,130 feet to 2,290 feet and varies depending on where Jackrabbit Trail is measured - consideration had to be given to any possible connections with future development. Much of Jackrabbit Trail is unimproved south of Jody Lane and not improved at all south of Strawn Road. Still, several properties and topographic features make future connections unlikely. To fully improve the entire street will require dedication of approximately 1,150 feet of land and require more than a 4,100 feet stretch of pavement. In addition, the paved areas of Jackrabbit Trail do not meet the sufficient paving width for a local street - some paved areas only measure 24 - 27 feet across. Even so, given that the area remains somewhat

undeveloped, alternative routes can be established to reconnect Link Road with Jackrabbit Trail further to the north. Staff is confident that the street would be better served as private property, even if adjacent properties have a different ownership.

Proposed Conditions

1. Provide a survey of the property to be abandoned, performed under the

direction of a registered professional land surveyor.

2. Written confirmation from AEP establishing that transmission lines will not adversely be affected by the proposed street abandonment and be accessible to the company via an easement for general maintenance and improvements to their facilities.

Attachments: "Exhibit A", site plan showing the area of the

proposed street abandonment; Excerpt from zoning map, showing the general

location within the City of San Angelo; Excerpt from zoning map, highlighting subject

property; Aerial photo, highlighting subject property; Excerpt from the comprehensive plan vision map

highlighting the subject property; Excerpt of the favor/opposition notification map; Draft minutes from 09/16/13 Planning Commission

Meeting; and Draft Ordinance.

Presentation: Jeff Hintz, Interim Senior Planner

Reviewed by: Jeff Hintz, Interim Senior Planner (09/06/13)

IV. Consent Agenda:

The Commission may request for a Consent Agenda item to be moved to the Regular Agenda for presentation and public comment. Otherwise the consent agenda will be considered in one vote. 1. Consideration of approving the August 19, 2013 Planning Commission meeting

minutes.

2. Requests, to approve with conditions, the subdivisions of land inside the City of San Angelo. [Planning Commission has authority for final approval; appeals may be directed to City Council.]

a. The Palms, Section One Proponents: Fleet Equipment Leasing LLP Representative; SKG Engineering

Size and location: An unaddressed tract of land located south of Red Bluff Road and North of Hillside Drive; more specifically being 6.641 acres out of Christoph Voight Survey181, Abstract No.3931 and being out of that certain 96.314 acre tract described and recorded as Instrument No. 654475 recorded with Tom Green County, Texas, in far southwest San Angelo

3. Requests for Right-of-Way Abandonment. [Planning Commission makes

recommendation; City Council has final authority for approval.]

A. County Road (within City Limits) projecting northeast from Link Road in the Concho River Estates Subdivision, Block 34

A request to abandon a segment of right-of-way on the following property: An approximately 400 foot x 60 foot street segment situated approximately 2,600 feet northwest of the intersection of Link Road and Christoval Road along Link Road, immediately west of the Concho River Estates, Block 34 in southern San Angelo. Motion to approve striking item two was made by Valerie Priess and seconded by Teri Jackson and passed 7-0.

AN ORDINANCE PROVIDING FOR THE ABANDONMENT AND CLOSING OF THE FOLLOWING STREET SEGMENT, TO WIT: An approximately 400 foot x 60 foot street segment situated approximately 2,600 feet northwest of the intersection of Link Road and Christoval Road along Link Road, immediately west of the Concho River Estates, Block 34, in southern San Angelo; AUTHORIZING THE CONVEYANCE THEREOF TO THE ABUTTING PROPERTY OWNERS; PROVIDING FOR THE TERMS AND CONDITIONS OF ABANDONMENT AND CONVEYANCE; AND PROVIDING FOR THE MAYOR TO EXECUTE AND DELIVER A QUIT CLAIM DEED TO THE ABUTTING PROPERTY OWNERS

RE: abandonment of public right-of-way for "County Road" extending approximately 400’ northeast of Link Road, immediately west of the Concho River Estates, Block 34, in southern San Angelo.

WHEREAS, the City Council of the City of San Angelo, acting pursuant to law, deems it advisable to abandon and convey the herein described tract of land to the abutting property owner(s) and is of the opinion that said land is not needed for public use, and that same should be abandoned and quit claimed to the abutting property owners as hereinafter provided; and WHEREAS, the City Council of the City of San Angelo is of the opinion that the best interest and welfare of the public will be served by abandoning and conveying same to the abutting property owner(s), subject to the conditions and restrictions contained herein; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF SAN ANGELO: 1. That the following described tract in the City of San Angelo, Tom Green County,

Texas be and the same is hereby abandoned, vacated and closed insofar as the right, title and easement of the public are concerned; subject, however, to the conditions and restrictions hereinafter more fully set out:

BEING the entire 21,352 square feet of publicly dedicated right-of-way shown

graphically in "Exhibit A" of the attachments section in the report. 2. That the abandonment and conveyance provided for herein is made and accepted

subject to all present zoning and deed restrictions, if the latter exist, and all existing easements, if any, whether apparent or non-apparent, aerial, surface, underground or otherwise.

3. That the abandonment and conveyance provided for herein shall extend only to the

public right, title, easement and interest and shall be construed to extend only to the interest which the governing body for the City of San Angelo may legally and lawfully abandon and vacate.

4. That the Mayor of the City of San Angelo is hereby authorized to execute and deliver

a quit claim deed conveying the above-described tract to the abutting property owner.

5. That the terms and conditions contained in this ordinance shall be binding upon

Grantees and assigns. 6. That the Grantees shall pay all reasonable costs associated with procedures

necessitated by the request to abandon this public right-of-way. 7. That the Grantees meet all conditions set below, identified as A and B before the

Quit Claim Deed is recorded with the County Clerk of Tom Green County, Texas. A. Provide a survey of the property to be abandoned, performed under the direction

of a registered professional land surveyor. B. Written confirmation from AEP establishing that transmission lines will not

adversely be affected by the proposed street abandonment and be accessible to the company via an easement for general maintenance and improvements to their facilities.

INTRODUCED on the 1st day of October, 2013 and finally PASSED, APPROVED AND ADOPTED on this the 15th day of October, 2013. CITY OF SAN ANGELO, TEXAS ATTEST: by: ______________________________ by: ______________________________

Dwain Morrison, Mayor Alicia Ramirez, City Clerk

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

City of San Angelo

Memo




Subject: Z13-27: Greg Huling, a request for approval of a zone change from

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

Location: An unaddressed 17.91 acre tract, located at the southeast corner of

the intersection of South Chadbourne Street and Christoval Road; more specifically occupying the C Potter Survey 160, Abstract 7278, in southeast San Angelo.

Purpose: Approval of this request would zone the property Light

Manufacturing (ML)

Contacts: Greg Huling, Owner 325-374-8000


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

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

Z13-27: Greg Huling

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: An unaddressed 17.91 acre tract, located at the southeast corner of the intersection of South Chadbourne Street and Christoval Road. This property specifically occupies

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the C Potter Survey 160, Abstract 7278, in southeast San Angelo, changing the zoning classification from Light Manufacturing (ML), Ranch & Estate (R&E) and Heavy Commercial (CH) to Light Manufacturing (ML) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY


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

more appropriate; or

(3) Deny the proposed zone change, altogether.

Recommendation: Planning staff recommends approving the proposed zone

change request from Light Manufacturing (ML), Ranch & Estate (R&E) and Heavy Commercial (CH) to Light Manufacturing (ML).

Planning Commission recommended approval of this request by a vote of 7-0 on September 16, 2013.

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General Information

Existing Zoning: Light Manufacturing (ML), Ranch & Estate (R&E)

and Heavy Commercial (CH) Existing Land Use: Mostly vacant and open space Surrounding Zoning/Land Use:

North: Light Manufacturing (ML) and Manufacturing Housing Park (MHP)

Christoval Estates (manufactured park), Stripes gas station, Verizon and West Texas Gas, Inc.

West: Light Manufacturing (ML), General Commercial / Heavy Commercial (CG/CH), Heavy Commercial (CH)

Open space, Rocks, etc., Cresent Sevices, LLC

South: Heavy Commercial (CH) and Heavy Manufacturing (MH)

Rafter C Construction, Concho Valley Acoustics, Inc., Pierce Metals, LLC, Rough Country Accessories and Home Motors, Inc.

East: Light Manufacturing (ML) and Heavy Commercial (CH)

Walkers & Company, Yokohama, Angelo Tire & Adjustment (Tokyo Tires), outdoor storage, Dayspring, Patterson-UTI, Winger Machine and Tool, AAA Self-Storage, Fleet Pride (heavy duty truck and trailer parts), open space and Goodfellow Air Force Base

Thoroughfares/Streets: South Chadbourne Street and Christoval Road

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

Dan Hanks Lane is defined as a “collector street”

which provides direct access to residential, commercial and other land uses.

Zoning History: The property was annexed within the city-limits

before 1949.

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Around 1954, the tract was M-1 and R&E, the same classification as the current ML and R&E zoning.

Applicable Regulations: Non-residential development standards are

outlined in Section 502 of the Zoning Ordinance.

Development Standards: All required off-street parking and the

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

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

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

“Require a buffer separating commercial,

industrial, or agricultural zoned lands from neighborhoods.”

“Establish transition areas between

commercial areas and nearby neighborhoods.”

Special Information

Traffic Concerns: Rezoning the entire property ML has the potential to generate additional traffic than if the property remained as-is. ML zoning allows for more intensive uses than the portioned sections of CH and R&E, to include 'Warehouse and Freight Movement'. Currently the lot remains vacant and no traffic is generated by the site.

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

Section 511 of the Zoning Ordinance. Parking Provided: No parking exists on the property; once

development occurs on the site parking will be required.

Density: Fairly large tracts of developed and undeveloped

lands, south of the intersection of South

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Chadbourne Street and Christoval Road. Uses vary from medium to high intensity, commercial and industrial development. Medium density residential uses exist to the north of the intersection. The Vision Plan calls for 'Industrial' type development in the area.

Notification Required: Yes Notifications Sent: 13

Responses in Favor: 1 Responses in Opposition: 0

Analysis:

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

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

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

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

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

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

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

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

The staff recommendation is based upon the statements listed below. Situated near the intersection of two major streets in southern San Angelo, the 17.9 acre tract has split zoning and is comprised of three zoning districts – Light Manufacturing (ML), Ranch & Estate (R&E) and Heavy Commercial (CH). The proponent initiated a request to rezone the parcel to Light Manufacturing (ML) which will enable the entire property to benefit from a variety of industrial opportunities allowed in the district. The Vision Plan of the Comprehensive Plan envisions industrial development for the affected area – to include much of the outlining areas southeast of the intersection of South Chadbourne Street and Christoval Road. The Vision Plan’s “Industrial” designation is compatible with Office Warehouse (OW), Light Manufacturing (ML) and Heavy Manufacturing (MH) zoning. If this zone change request is approved, no changes will be needed to amend the current Vision Plan Map of the Comprehensive Plan. This request is consistent with aspects of the Zoning Ordinance. The zone change seeks to consolidate the fragmented tract, mostly consisting of ML zoning but also R&E and CH, into a tract that is entirely zoned for ML. This will enable greater flexibilities in future industrial development – for example, while CH and ML both allow for uses in the categories, “Industrial Service” – firms servicing industrial, business or consumer machinery equipment, products or by-products and “Vehicle Repair”, ML also permits more intensive uses such as those allowed by-right in a CH zone including: “Light Manufacturing and Production”, “Office” and “Telecommunication Facilities”, and conditional uses that include “Agriculture” and “Mining”. R&E restricts industrial development altogether, the district is intended to provide opportunities for low density, detached single-family residential development. The use category “Light Manufacturing and Production” allows for some of the most intensive uses in the district - such uses are not permitted in CH zoning. ML fits within Type 3: General Outdoor Storage which allows for unlimited outdoor storage and does not have a screening requirement, it offers the greatest range of the 3 storage types (Section 504, Zoning Ordinance). Screening may be required if the area in question abuts properties that have a residential zoning or use. The Floor Area Ratio, FAR, or maximum buildable space in a ML zone is 2 or twice the total size of the lot. The minimum lot area is 6,000 square feet, and width and depth is 50 feet and 80 feet, respectively (Section 502, Zoning Ordinance). The area is fairly developed, particularly north of South Chadbourne Street (north of the intersection is a medium density manufactured home park and several residential neighborhoods) – to the south, the size of the parcels is much larger and land-uses trend increasingly industrial in nature. Similar to the lot in question – other tracts along

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the southern stretch of Christoval Road are relatively large and less developed. Several types of zoning exist in the area. Much of the area, a block north of the major intersection, is zoned Single-Family Residential (RS-1), which includes Goodfellow Air Force Base and surrounding neighborhoods to north and west. Directly northeast of the site, south of Tracie Trail, is zoned Mobile Home Park, MHP, and consists of a mobile home park on two tracts totaling 14 acres. General Commercial (CG) exists further east along South Chadbourne Street and Heavy Commercial (CH) to the south along Christoval Road. ML is dominant in the immediate area – the zoning extends along South Chadbourne Street from Jackrabbit Trail (from the west) to roughly 620 feet east of the intersection with Edgewood Drive. The area also includes R&E zoning. The site consists of mainly low-lying to high shrubs and a grassy surface – remnants of past development is evident from the most recent aerials. Based on the aerials and recent observations to the site, tract that measures 17.91 acres appears to have remained untouched for some time. Changed conditions for the property vary based on split-zoning of the lot. A rezoning of the fragmented CH portion represents a far less intensive transition, than R&E to ML. While some uses of the more intensive industrial uses are not allowed in CH, many of general district standards will remain unchanged. ML and CH have a FAR of 2, being twice the total size of the lot. Similarly, the lot area, width and depth remain the same (refer to the information in the paragraph above). Both districts allow for Type 3: General Outdoor Storage. R&E is the least intensive district in the city, a change to ML (nearly the most intensive zoning) will represent one of greatest transitions allowed in the Zoning Ordinance. R&E require a minimum lot size of an acre to develop – in relative terms, the district requires a minimum lot size 7 times greater than ML zoning. Given that this area is calling for industrial development within the Comprehensive Plan, the proposed change falls in line with the goals of this document and no amendment is needed to the document to accomplish this proposal.

Impacts on the natural environment will largely depend on the nature of the proposed use. ML allows for a variety of industrial uses – mainly medium to high intensity. The main water source in the area is the South Concho River which extends from a series of reservoirs and Lake Nasworthy from the south and flows northward – it measures slightly more than half a mile (roughly 3,600 feet) west of the site. There are also several dry creeks and other nearby low-lying areas that allow for water to be stored and flow closer to the site (2,400 feet, west). This request will rezone the entire tract ML and has the potential to introduce more intensive development throughout the confines of the property – some of these uses have measures in place to mitigate nuisances and noxious activity into the surrounding environment. The use category “Light Manufacturing and Production”, for example, allows for some of the most intensive development in the district but limits the spread of vibrations, noises, and airborne particles. Beyond the boundaries of the property – adjacent properties along South Chadbourne Street and Christoval Road are comprised of mainly caliche, compacted dirt surfaces where much of the vegetation has been removed – vegetation is more

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prevalent along the undeveloped tracts near the Concho River and southeast of the site, at the edge of the city-limits. The request is compatible with the city’s plans and policies and will result in logical and orderly development. One of the key aspects of the Vision Plan’s “Industrial” designation is to cluster intensive uses into limited, isolated areas within the city-limits. ML is the most dominant zoning in the area – the segments of Christoval Road and South Chadbourne Street boarding the property has become more established as an industrial corridor, especially points south and east of the site. Christoval Road, the segment that stretches nearly 2 ½ miles from South US Highway 87 to South Chadbourne Street has experienced some of greatest changes in the city in recent years as a result of increased demand of oil-related services in the region. The R&E zoned portion of the lot is currently underutilized and is not accessible from any street. The area is situated roughly 285 feet within the interior of the tract and not suitable given the nature of the area. The area boasts close proximity to other major streets in the area to include S US Highway 277, Bryant Boulevard and W Loop 306 – the site also measures about a 1/3 of a mile from the edge of the city-limits – will allow for quick access for transporting goods, an important factor in the manufacturing and production field. Rezoning the tract will ensure consistently in land development and is the most suitable zoning for the area.

Proposed Conditions

N/A

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

the City of San Angelo; Excerpt from zoning map, highlighting subject property; Aerial photo, highlighting subject property; Excerpt from the comprehensive plan vision map highlighting

the subject property; Excerpt of the favor/opposition notification map; Citizen Response; Draft minutes from 09/16/13 Planning Commission Meeting;

and Draft Ordinance.



D. Z 13-27 Greg Huling A request for approval of a zone change from Light Manufacturing (ML), Ranch &

Estate (R&E) and Heavy Commercial (CH) to Light Manufacturing to allow for industrial uses as allowed in Section 310 of the Zoning Ordinance, on the following property:

An unaddressed 17.91 acre tract, located at the southeast corner of the

intersection of South Chadbourne Street and Christoval Road; more specially occupying the C Potter Survey 160, Abstract 7278, in southeast San Angelo.

Kevin Boyd, Planner came forward to present the case consistent with staff’s recommendation of approval. 13 notices were sent, and one was returned in favor of the request. Mr. Boyd used photos and maps of the area to orient the commission with the property and surrounding area. There are several industrial uses in the area, specifically Light Manufacturing (ML). The vision plan is calling for industrial development on the area with some commercial development nearby. This request will combine 3 zoning designations into one and make development on the property a bit easier for the applicant. This area is a growing industrial corridor and is isolated from residential development making the proposal a better location in the community for industrial development. There were no questions from the Commission. Motion to approve as presented was made by Valerie Priess and seconded by Bill Wynne and passed 7-0.

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: An unaddressed 17.91 acre tract, located at the southeast corner of the intersection of South Chadbourne Street and Christoval Road. This property specifically occupies the C Potter Survey 160, Abstract 7278, in southeast San Angelo, changing the zoning classification from Light Manufacturing (ML), Ranch & Estate (R&E) and Heavy Commercial (CH) to Light Manufacturing (ML) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

RE: Z 13-27: Greg Huling

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

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

BE IT ORDAINED BY THE CITY OF SAN ANGELO:

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

by the governing body for the City of San Angelo on January 4, 2000 and included within Chapter 12 of the Code of Ordinances for the City of San Angelo, be and the same is hereby amended insofar as the property hereinafter set forth, and said ordinance generally and the zoning map shall be amended insofar as the property hereinafter described: An unaddressed 17.91 acre tract, located at the southeast corner of the intersection of South Chadbourne Street and Christoval Road. This property specifically occupies the C Potter Survey 160, Abstract 7278, in southeast San Angelo, shall henceforth be permanently zoned as follows: Light Manufacturing (ML) District.

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

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

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

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

The terms and provisions of this Ordinance shall be deemed to be severable in that, if any portion of this Ordinance shall be declared to be invalid, the same shall not affect the validity of the other provisions of this Ordinance.

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

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

INTRODUCED on the 1st day of October, 2013 and finally PASSED, APPROVED AND ADOPTED on this the 15th day of October, 2013.


____________________________________

Dwain Morrison, Mayor

ATTEST:

________________________________ Alicia Ramirez, City Clerk


City of San Angelo

Memo




Subject: Z13-28: Greg Huling, a request for approval of a zone change from

Single-Family Residential (RS-1) to High-Rise Multi-Family Residential (RM-2) to allow for multifamily dwellings, on the following property:

Location: An unaddressed 5 acre tract, located approximately 280 feet south

of the intersection of Southland Boulevard and Green Meadow Drive; more specifically occupying the Community of Faith subdivision, Block 1, Section 1, Lots 1 & 2, in western San Angelo.

Purpose: Approval of this request would zone the property High-Rise Multi-

Family Residential (RM-2)

Contacts: Greg Huling, Owner 325-374-8000




Z13-28: Greg Huling

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: An unaddressed 5 acre tract, located approximately 280 feet south of the intersection of Southland Boulevard and Green Meadow Drive. This property specifically occupies the Community of Faith subdivision, Block 1, Section 1, Lots 1 & 2, in western San Angelo,

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changing the zoning classification from Single-Family Residential (RS-1) to High-Rise Multi-Family Residential (RM-2) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY





Recommendation: Planning staff recommends modifying the proposed zone

change request from Single-Family Residential (RS-1) to Low-Rise Multi-Family Residential (RM-1). Planning Commission recommended approval of this request by a vote of 5-2 on September 16, 2013.

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General Information

Existing Zoning: Single-Family Residential (RS-1) Existing Land Use: Vacant, undeveloped land Surrounding Zoning/Land Use:

North: General Commercial (CG) Sam's Club, Willow Ridge (residential community), Auto Paradise Car Wash, Affordable Self-Storage and open space

West: Single-Family Residential (RS-1) and Ranch & Estate (R&E)

Open space

South: Single-Family Residential (RS-1) and Zero lot line, Twinhome and Townhouse Residential (RS-3)

Open space and Prestonwood Addition (residential community)

East: Single-Family Residential (RS-1), Zero lot line, Twinhome and Townhouse Residential (RS-3) and Low-Rise Multifamily Residential (RM-1)

San Angelo Fire Station No. 2, James Bonham Elementary and a telecommunications facility

Thoroughfares/Streets: Southland Boulevard and Green Meadow Drive

are identified as a “collector streets”, which are designed to connect local traffic to arterials and generally carries traffic at a moderate rate of speed.

Mills Pass Drive is identified as a "local street",

designed to carry light neighborhood traffic at lower speeds and generally connects to collector streets.


and zoned R-1 (the same classification as the current RS-1 zoning) in September 1991.

Applicable Regulations: Residential development standards are outlined in

Section 501 of the Zoning Ordinance. Development Standards: All required off-street parking and the


Vision Plan Map: Neighborhood

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Related Comp Plan Excerpts: “Promote better transition between nearby

commercial and residential use of land and buildings.”

"Require a buffer separating commercial, industrial, or agricultural zoned lands from neighborhoods."

"Promote neighborhood diversity and security by encouraging a mix of age, income, and housing choices within San Angelo's neighborhoods."

"...encourage appropriate and supportive infill development at Neighborhood Centers."

"Promote a mix of various uses...to encourage the necessary infill...for Neighborhood Centers."

"Establish transition areas to better "scale-down" intensity of use from commercial centers to neighborhoods." "...this [access to Neighborhood Centers] is best achieved through clustered commercial centers, but also through increased access and connectivity between the neighborhoods and their associated Neighborhood Centers."

"...slowly reorganize commercial corridors into clusters..."

"Create new physical connections to neighborhoods lined with transitional and intermediate uses."

"Variety of residential product types - multifamily, townhomes, courtyard homes, patio homes, etc."

Special Information

Traffic Concerns: Changing to a more intensive zoning has the potential to generate additional traffic than if the property remained as-is. The lot remains vacant and little to no traffic is generated by the site.

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

Parking Provided: No parking exists on-site, once development

occurs, parking will be required. Density: Mainly large tracts of undeveloped land surround

the property. Some tracts have be subdivided and developed into smaller lots for single-family housing. The Vision Plan calls for 'Neighborhood' type development in the area.



Analysis:







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The staff recommendation is based upon the statements listed below. The subject property measures roughly 5 acres and only has frontage along Southland Boulevard. Currently it is zoned Single-Family Residential (RS-1), the proponent seeks to rezone the property to allow opportunities for multifamily residences. Although the requested RM-2 reflects aspects of the Comprehensive Plan, staff finds that RM-1 is a more suitable zoning for area given aspects of the surrounding environment. RM-1 is compatible with the long-range Plan which envisions neighborhood development in the area. If RM-1 or the requested RM-2 is approved, no changes will be needed to amend the current Vision Plan Map of the Comprehensive Plan. While the requested zoning will be consistent with aspects of the Zoning Ordinance, several aspects of RM-2 is concerning given the general characteristics of the area, thus staff's recommendation of RM-1. The current, RS-1 zoning does not allow for multifamily residential development. RM-2 is the most intensive residential zoning in the city and the district will explicitly allow for the development of multifamily dwellings and group living structures. RM-1 allows for the greatest range of housing options of the residential zoning districts - single-family detached structures, accessory apartments, two-family dwellings, zero lot line dwellings, twin homes, townhouses, multifamily dwelling and group living structures are allowed in the district. Conditional uses for both districts include religious institutions, safety services and schools – these uses are exceptions to Ordinance and require approval by Planning Commission. Issues of scale also factored in staff’s recommendation. RM-2 allows for development of multifamily dwellings – with a maximum density of 35 units per acre, RM-1 allows for 25 units per acre – the reduced amount in units translates into the potential for less vehicle trips generated by the site (assuming that the site is built to the maximum level of units allowed and each household unit had more than one vehicle). Much of the surrounding structures measure less than 2 ½ stories in height, RM-2 does not have a height requirement and allows for high-rise development that measure 3 or more stories. RM-1 limits multifamily dwellings to low-rise, two-story or walk-up apartments (each at which cannot exceed 2 ½ stories). The Floor Area Ratio, FAR, or maximum buildable space in a RS-1 zone is 0.40 or 40 percent; it is 0.75 or 75 percent in a RM-1 zone and increases to 1.00 or equal to the total square footage of the lot, in a RM-2 zone. Much of the surrounding development in the area is residential, which varies from medium to high density residential. The patio homes are most common housing type in the area, placed on zero lots, other housing types in the area include single-family detached housing and apartments. There are several large undeveloped tracts in the

7

area, some have been recently subdivided into smaller lots for development of homes and commercial uses. Commercial tracts exist north of the site along Southland Boulevard and points west - some of which have been developed into business establishments. Two residential tracts to the west were recently annexed into the city within the past couple of years, the most recently approved Final Plat in the area (on the adjacent lot) seeks to subdivide the tract into much smaller lots for single-family development. Immediately south of the site is an undeveloped, 4 acre tract that is unincorporated and not annexed into the city. Bonham Elementary School is situated immediately east of the site, approval of this request will provide new students with a walkable experience back and forth to school. Given the fact that the street segment that adjoins the street is within a school zone reduces the designated speed limit of 30 mph to 20 mph when the school zone sign is flashing.

Given the intensity of the proposed zoning, this transition may have some effects on the natural environment. RM-1 and RM-2 allow for multifamily residential uses - affects on the natural environment will depend largely on the intensity of the use. Unlike RM-2, RM-1 also allows for a wider range of housing options to include low intensity developments such as single-family detached dwellings and twin homes. These developments, on the micro-level, place less strain on the environment than multifamily and group living structures. Multifamily residences generally have significantly larger footprints that result in a higher percentage of impervious surfaces. Contrastingly, on a much larger scale, higher intensive, compact developments are usually a better use of the land. This is the case since living units tend to be smaller and are able fit more household units in a confined space and usually results in greater green space (huge variables exist with the property’s location and scale of the project). RM-1 is more suitable for an environmental perspective, it offers flexibilities in land development and does not merely limit development to multifamily dwellings, which carries substantially larger footprints. Uses allowed in the district are unlikely to pose major environmental risks to the area, in terms of leakages and contaminations that heavy commercial and industrial uses may pose. An internal site review will be conducted by staff before a permit is issued to ensure that the project is structurally compatible to applicable building standards and has proper drainage. The requested zoning represents a community need. There is a need for more housing in the city. RM-1 and RM-2 zoning will allow for higher intensity development. Both districts are currently underutilized in the city, but this is more-so the case with RM-2. Given the uncertainties in the level of the traffic generated from the site with RM-2 zoning, RM-1 is the most suitable zoning for the area. The RM-1 zoned area will provide opportunities for medium to high density development with easy access to the street and a diversity of housing options in the area. The recommended request seeks to add more density in an area which is somewhat established. There is already existing water and sewer line connections and there will not be a need to extend public services to the site.

8

The site has close proximity and access to major roadways - it measures roughly 2,120 feet south of Sherwood Way, identified as a major arterial in the city's Thoroughfare Plan. In terms of RM-2 zoning, the proposed zoning poses heightened concerns with increased traffic along Southland Boulevard and a potential choke point within a designated school zone (then again, we cannot assume that most of the traffic generated by the site will occur during periods in which students enter and leave the nearby school). The property has over 400 feet of frontage along the street, no other street is accessible from the property. The 2008 Traffic Counts for Southland Boulevard reveal that nearly 6,000 motorists travel on the street on a daily basis - it is clearly one of the busiest collector streets in the city. While the street meets the minimum paving width requirement for a collector street (which is 50 feet), the roadway is currently limited to two-way lanes. The acceptable volume of traffic along a two-way lane roadway is greatly reduced from that of a four-way lane road. Increased traffic generated by site will contribute to traffic congestions in the area. The recommended, RM-1 zoning already exists in the area. Higher intensive, RS-3 and RM-1 zoning exist further along Southland Boulevard and allow for a variety of housing opportunities - zero lot line, twin homes and townhomes and apartment development, respectively. RM-2 exists a third of mile away (around 1,500 feet) west of the subject property, laterally extending from an area along Sherwood Way – which staff has determined better accommodates increased traffic loads than Southland Boulevard. Compact development, in this case, is a more responsible pattern of development for the area - it will supply the growing demand for additional housing, while developing on the least amount of land possible and preserve needed green space. The property is situated immediately south of a large commercial node that includes retail giants - Walmart, Sam's Club and Lowe's Home Improvement - as well as Chick-fil-a, Wendy's and Dairy Queen. Given the infrastructure in place at this time, the area is conducive for walking (however, the area streets lack sidewalks) - certainly alternative modes such as biking is an option for nearby residents in area with numerous commercial activities within a relatively short distance.

Proposed Conditions

N/A

9

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






E. Z 13-28 Greg Huling A request for approval of a zone change from Single-Family Residential (RS-1) to

High-Rise Multi-Family Residential (RM-2) to allow for multi-family dwellings, on the following property:

An unaddressed 5 acre tract, located approximately 280 feet south of the

intersection of Southland Boulevard and Green Meadow Drive; more specifically occupying the Community of Faith subdivision, Block 1, Section 1, Lots 1 & 2, in western San Angelo.

Kevin Boyd, Planner came forward to present the case, consistent with staff’s

recommendation of modification RM-1 zoning. 5 notices were sent and one was received in favor and one in opposition. Mr. Boyd used photos and maps to orient the commission with the area and subject property. At this time the property is vacant and nearby an elementary school, fire station and a commercial hub of the community adjacent to Sherwood Way. There are also planned residential subdivisions and existing residential subdivisions in the vicinity of this property.

RM-1 zoning will seek to reduce traffic on the site and reduce the scale of the

development on the property. RM-1 more closely matches the development of the surrounding property and the area. RM-1 allows lower units per acre ratio and would limit the scale of development on the property. RM-1 is a way to keep the traffic down as well; conceivably all the units could have a driver and automobile or more, the RM-1 will also provide more flexibility on the property allowing for townhomes, single-family residential, accessory apartments, as well as multi-family dwellings.

Ms. Priess asked about the zoning on the property and why staff recommended

the RM-1 zoning. Greg Huling came forward to speak in favor of the request and wanted to ask the

commission to consider RM-2 zoning given the commercial development in the area. The playground and parking lot are the school properties that are directly across from the subject tract. Mr. Huling did not believe that additional traffic in the area would be an issue. Mr. Huling asked the commission to consider RM-2 on the property instead of staff’s recommendation of RM-1.

Ms. Jackson asked about the project and the intent behind the request and Mr.

Huling indicated that the project would be 3 stories. Mark Crisp had a concern over the traffic, in 2008 there were 6,000 cars per day

travelling on the street given the neighborhood and the school in close proximity. Rocky Templin came forward to speak in opposition of the request based upon

the height and density requirements allowed for in RM-2 zoning districts.

Ms. Jones asked if Mr. Templin if he had done a traffic study of the area, Mr. Templin indicated he had not.

Sammy Farmer asked the applicant if he would consider RM-1, the applicant

indicated that he would be ok with RM-1 in contrast to RS-1 which is what the property is zoned right now.

Ms. Fawver came forward to consider the fact of what it would take to introduce

and commission a traffic study of the area. Ms. Priess asked the applicant if he would be able to live with an RM-1 zoning

designation. Mr. Huling asked if the commission would consider RM-2 or table the request to allow him to work with staff, do a traffic study, and talk to commission members, and Mr. Templin.

Ms. Fawver addressed the concern over a traffic study and that funding would be

required and may in all likelihood not be available at this time given the budget for the next fiscal year has recently been approved.

Ms. Jones commented that tabling the request may not achieve what the

applicant desires in the end. Mr. Wynne expressed that the economics for RM-1 would work in his estimation.

Mr. Wynne also expressed a concern over traffic near the school and discussed the traffic circulation in the area

Mr. Huling mentioned he had a feasibility study done on the property and some

preliminary drawings for the proposed structures as well. Sammy Farmer mentioned that people pulling out from a driveway would be

more ideal than people backing out from traditional RS-1 homes. Mr. Huling brought up the driveway at the school and that the pickup area was

further south from the subject property. The intent of Mr. Huling is to have his exit to Southland as far north as possible in addition to a secondary access that might be required.

Lynsey Flage came forward to clarify that the teacher parking zone is also used

for pickup of 2nd

and 3rd

graders. She had some concerns about the traffic in the area as well and from parking in front of the proposed development.

Ms. Jackson stated that there is a need for housing development in the

community and that apartments could alleviate this concern; this appeared to be a good location for them.

Sammy Farmer asked Mr. Templin if he would be opposed to RM-1 on the

property. Mr. Templin stated that he would be in agreement with RM-1 as a compromise.

Bill Wynne asked about the development on the property and Mr. Huling explained his project a little bit further.

John Young asked about future development to the west of the property which

was clarified by staff. Motion to zone the property RM-2 was made by Bill Wynne and was seconded

by Teri Jackson. The motion passed 5-2 with Valerie Priess and Mark Crisp voting in opposition.

A ten minute recess was called at 10:25 AM The meeting resumed at 10:38 AM, a quorum of 7 members was present.

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: An unaddressed 5 acre tract, located approximately 280 feet south of the intersection of Southland Boulevard and Green Meadow Drive. This property specifically occupies the Community of Faith subdivision, Block 1, Section 1, Lots 1 & 2, in western San Angelo, changing the zoning classification from Single-Family Residential (RS-1) to High-rise Multi-Family Residential (RM-2) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

RE: Z 13-28: Greg Huling





by the governing body for the City of San Angelo on January 4, 2000 and included within Chapter 12 of the Code of Ordinances for the City of San Angelo, be and the same is hereby amended insofar as the property hereinafter set forth, and said ordinance generally and the zoning map shall be amended insofar as the property hereinafter described: An unaddressed 5 acre tract, located approximately 280 feet south of the intersection of Southland Boulevard and Green Meadow Drive. This property specifically occupies the Community of Faith subdivision, Block 1, Section 1, Lots 1 & 2, in western San Angelo, shall henceforth be permanently zoned as follows: High-Rise Multi-Family Residential (RM-2) District.




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

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

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





____________________________________


ATTEST:



City of San

Angelo

Memo



From: Jeff Hintz, Interim Senior Planner

Subject: Z 13-29 & CU 13-19 Arthur DeLaPena, A request for

approval of a zone change from Single-Family Residential (RS-1) to General Commercial (CG) -AND- a Conditional Use to specifically allow for Vehicle Repair as defined in Section 315.I of the Zoning Ordinance, subject to the approval of the zoning change on the following property:

Location: 2588 Armstrong Street, located on the east side of Armstrong

Street, approximately 800 feet south from the intersection of Armstrong street and East 28th Street. This property specifically occupies 6 acres from Tract 39 in the RS Longbotham Survey 0027, Abstract 5735 in north-central San Angelo.

Purpose: Approval or modification of this zoning request by the

Planning Commission would forward that recommendation to City Council for a final decision on the matter. Approval of the Conditional Use would allow Vehicle Repair on the subject property (pending approval of the zone change by City Council).

Contacts: Arthur DeLa Pena, property owner 307-922-3288

Jeff Hintz, Interim Senior Planner 325-657-4210

Caption: AN APPEAL OF PLANNING COMMISSION'S DECISION

TO DENY CASE NUMBERS Z13-29 & CU 13-19, REQUESTING APPROVAL OF A ZONE CHANGE FROM SINGLE-FAMILY RESIDENTIAL (RS-1) TO GENERAL COMMERCIAL (CG) -AND- A CONDITIONAL USE TO SPECIFICALLY ALLOW FOR VEHICLE REPAIR AS DEFINED IN SECTION 315.I OF THE ZONING ORDINANCE, SUBJECT TO THE APPROVAL OF THE

ZONING CHANGE, SPECIFICALLY AT 2588 ARMSTRONG STREET, LOCATED ON THE EAST SIDE OF ARMSTRONG STREET, APPROXIMATELY 800 FEET SOUTH FROM THE INTERSECTION OF ARMSTRONG STREET AND EAST 28TH STREET. THIS PROPERTY SPECIFICALLY OCCUPIES 6 ACRES FROM TRACT 39 IN THE RS LONGBOTHAM SURVEY 0027, ABSTRACT 5735 IN NORTH-CENTRAL SAN ANGELO.

Summary: The City Council may (in reference to the Zone Change):

(1) Recommend approving the proposed zone change; or

(2) Deny the proposed zone change; or

(3) Remand the application to the Planning Commission, for consideration of

some alternative zoning classification believed to be more appropriate, in which case another public hearing will need to be scheduled.

Section 212.E.4 of the Zoning Ordinance states that, "Where the Planning Commission has recommended denial of the proposed amendment, or written protest against such amendment is made and signed by (a) the owners of 20 percent or more of the area subject to the zone change or (b) the owners of 20 percent or more of the area within 200 feet of the affected area, then the proposed amendment shall require a favorable vote of at least three-fourths of all the members of the City Council to become effective. The area of rights-of-way and streets shall be included in any computation of land area under this subsection."

Summary: The City Council may (in reference to the Conditional Use,

assuming the zone change to CG passes):

(1) approve a Conditional Use allowing the placement of a vehicle repair facility on this subject property, as requested; or

(2) approve a Conditional Use allowing the placement of a vehicle repair facility on this subject property, subject to additional conditions believed necessary and appropriate to mitigate any adverse effects of such use; or

(3) deny the requested Conditional Use allowing the placement of a vehicle repair facility on this subject property, altogether.

Recommendation: Planning staff recommends denying the proposed zone

change. Planning staff recommends denying the proposed conditional use subject to conditions.

Planning Commission recommended denial of the Zone Change by a vote of 6-1 on September 16, 2013 Planning Commission recommended denial of the Conditional Use by a vote of 7-0 on September 16, 2013.

The initial staff recommendation for both requests was based upon the amended Vision Plan that was approved by Planning Commission in August of 2013. At a meeting on September 24, 2013 this proposed amendment was denied in its entirety by the City Council. As a result, staff must legally recommend that you deny both requests as they are inconsistent with the Vision Plan portion of the City's Comprehensive Plan. Local Government Code Section 211.004 requires that "Zoning Regulations must be adopted in compliance with a Comprehensive Plan."


In 2010, this area begun to develop more rapidly in what had otherwise been a slow transformation into more commercial development since the late 1970's. On the west side of Armstrong Street (where Vision Oil Tools is now under construction) a rezoning from RS-1 to Heavy Commercial (CH) took place in 1998. Prior to that, the television stations KLST and KSAN also had been in place for roughly two decades (mid to late 1970's). Even prior to that, the TXDot shop/yard and office had been in place since the summer of 1954, approved as a Special Permit. Moving forward in time, the Colorado River Municipal Water District Office and yard area has been in place since about 2010. Just north of Vision Oil Tools in 2012, a Zone Change to General Commercial and a Conditional Use to allow for "Vehicle Repair" took place and that project is currently under construction at this time. The area is still primarily residential, with significant acreage available for infill development, as such the utmost concern and care must be made when evaluating zoning decisions in this area.

General Information

Existing Zoning: Single-Family Residential (RS-1) Existing Land Use: Vacant, undeveloped property Surrounding Zoning/Land Use:

North: RS-1 Residence

West: CH Office and warehouse buildings

South: RS-1 Residence

East: RS-1 Residence

Thoroughfares/Streets: Armstrong Street is designed as a collector

street and is designed to collect local street

traffic carrying it to arterial streets at a moderate speed.

Zoning History: This property has been zoned RS-1 since

1954. Applicable Regulations: Allowed uses for this property can be

found in Section 310 (Use Table) of the Zoning Ordinance.

315.I.4 of the zoning ordinance states that,

“Repair and service of industrial vehicles and equipment and of heavy trucks; towing and vehicle storage; and vehicle wrecking and salvage are classified as Industrial Service.”

In CG districts, “Type 2 Limited Outdoor

Storage shall not exceed 1,000 square feet or 10 percent of the total site area (whichever is greater).”

509.A of the Zoning Ordinance requires a

privacy fence be placed along the southern, northern and eastern edges of this property if an equivalent fence does not exist already.

Vision Plan Map: Commercial & Transitional under the

proposed amendment approved in August of 2013 by the Planning Commission; changed from Commercial and Neighborhood under the previous Vision Plan Map.

Comp Plan Excerpts: Within the Comprehensive Plan, Goal 3 of

“Neighborhoods” is to “improve the relationship between adjacent commercial and residential properties”.

“Commercial properties tend to be

organized in a single use, isolated pattern of development. This form generates little synergy between businesses and land uses and often results in incompatibility.”

“All residents within each neighborhood

boundary should be able to meet their daily needs within a reasonable and accessible distance from their home.”

“Promote better transition between nearby commercial and residential use of land and buildings.”

“Establish transition areas between

commercial areas and nearby neighborhoods.”

“Organize commercial uses in nodes to

avoid deteriorating corridors.”

Special Information

Traffic Concerns: Changing the zoning from a low density residential zone to a zoning classification that allows for commercial activity, could have traffic impacts on the area. However, the access to a collector street will adequately handle this increased traffic capability.

Parking Requirements: Section 511 of the Zoning Ordinance

covers parking improvement standards and amounts. Repair shops require 1 parking space per 200 square feet of shop area. (The bays may also be counted as spaces)

Parking Provided: No parking is currently provided. Density: This area consists of low intensity

residential development and higher intensity commercial development.



Analysis (Zone Change):

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

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

2. Consistent with Zoning Ordinance. Whether and the extent to which the

proposed amendment would conflict with any portion of this Zoning Ordinance.






The staff recommendation is based upon the statements listed below. Staff has studied and reviewed this area extensively as a result of Mr. DeLa Pena's application to amend the Vision Plan Map in this area. This area has changed somewhat since the Comprehensive Plan and Vision Map were updated in 2009. In 4 years some infill development of a higher intensity has taken place and as a result of that development, several amendments were proposed and approved by the Planning Commission. The proposed amendment opened the door to legally consider some type of commercial development on this property. The updated Vision Plan map has this property envisioned as commercial and transitional for its highest and best use. Given the location of the property near an important node in this area where a collector (Armstrong Street) and arterial street (East 28th Street) meet, some type of commercial development was inevitable. That being said, the commercial development needs to be sensitive and compatible to the existing residential development in the area. As this area develops and infill of both commercial and more residential continues, there will certainly be a need for some general retailing needs. Given this property's location within the area in close proximity to a General Commercial/Heavy Commercial (CG/CH) zoning district and directly across the street from a Heavy Commercial (CH) zoning district, this property will allow uses less intensive than either of the existing zoning districts in the area; at the same

time, this is a tract adjacent to several other tracts that are more sprawling in terms of size, but this won't necessarily be the case forever. Tracts adjacent to this property will be subjected to less noxious effects due to the high intensive industrial type uses not being allowed in this zoning district, so it is much more compatible as a buffering zone when compared to CH and CG/CH districts. The more intensive activities allowed within a CG zone are much more appropriate adjacent to residential development and as such, this request is consistent with the zoning ordinance. When looking at the surrounding area and development patterns, there is an existing CG zone to the northwest that is under construction that is about to be home to a very similar land use. There are also warehouses/outdoor storage yards, and television studios in the area. CG zoning is a good fit next to a neighborhood due to the outdoor storage requirement being limited to 10% of the site or 1000 square feet (the greater of the two). This coupled with a privacy fence, limited uses that are at a scale appropriate near residential leads staff to find this is request is consistent and compatible with that of the surrounding area and development patterns. In terms of the residential development nearby, the more intensive and noxious land uses such as unlimited outdoor storage, industrial services, and warehousing/freight movement are not allowed by right. In some cases secondary approval subject to conditions make them compatible next to residential, but there is not the option for these intensive land uses to open up quickly, with no say from the residents of this area. Staff finds that uses allowed by right in CG zoned areas would be a good fit in this particular parcel at this time and in the future as the neighborhood surrounding this key node develops. Changed conditions have certainly occurred in this area that did merit an amendment to the Comprehensive Plan's Vision Plan Map. The amendment has been approved by the Planning Commission and if approved by the City Council, this request would be consistent with it. If the amendment is denied by the Council on this particular property, CG zoning is not consistent with what the majority of this property would be envisioned for, which was neighborhood. The recent amendment envisioned the highest and best use of this property as commercial and transitional. In the exact set of circumstances on this property and area at this time, CG zoning fits both of these land use categories. The commercial designation is somewhat obvious, but the transitional is also present as well. As mentioned before, the CG will transition the CG/CH and CH zoning in the area and step down the land use adjacent to the neighborhood. This is consistent with the terms and provisions of the Comprehensive Plan should the proposed Vision Amendment be adopted. Some effect will be seen on the natural environment as this property is currently undeveloped. This area is home to many intensive uses and this property will see a bit less of an intensity when compared to that of some neighboring properties. The development of this property is not anticipated to lead to any detrimental effects on the functioning of the natural environment in the immediate area nor

the community in general. Through the permitting process, any adverse effects on the natural environment regarding storm water runoff and air quality will be addressed. This area is not home to any significant populations of wildlife or natural features that are protected in any way either. As this area develops, a community need for commercial development that is appropriately scaled and in close proximity to the neighborhoods will certainly be more obvious. There is still room for infill here, but as the area develops, more and more of a need for commercial uses, that serve the population in the area will develop with time. The highest and best use of this property may not end up being Vehicle Service, but in time some other type of use allowed in CG may become more practical and more lucrative as the population density increases.

Analysis (Conditional Use):

In order to approve this request, the City Council members are first required to find that:

1. Impacts Minimized. Whether and the extent to which the proposed Conditional Use creates adverse effects, including adverse visual impacts, on adjacent properties.


3. Compatible with Surrounding Area. Whether and the extent to which

the proposed conditional use is compatible with existing and anticipated uses surrounding the subject property.

4. Effect on Natural Environment. Whether and the extent to which the

proposed Conditional Use would result in significant adverse impacts on the natural environment, including but not limited to, adverse impacts on water and air quality, noise, storm water management, wildlife, vegetation, wetlands and the practical functioning of the natural environment.

5. Community Need. Whether and the extent to which the proposed

Conditional Use addresses a demonstrated community need.

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

The staff recommendation is based upon the statements listed below. With reference to Vehicle Repair specifically, many of the discussion points listed above also hold true, but the brief discussion points here are intended to address this particular land use in particular. Vehicle Repair is the type of work that is

generally done where a customer will not be waiting for the vehicle. Some examples of this would include perhaps, transmission repair and flushing, engine removal, body work, installation of other products which enhance the performance of the engine or mechanical components of the vehicle. Some of the activities listed above could perhaps occur while a person was waiting, but generally speaking, many of these activities are very close to an industrial service. The conditions listed below are intended to keep the impact on the neighboring properties to a minimum while still allowing the proponent to service the neighborhood near this property. This Conditional Use does not allow the repair or heavy commercial trucks, industrial vehicles, or equipment; rather, a CG zoning district with the Conditional Use is allowing the repair of vehicles that the general public would drive on an everyday basis for personal use. This type of repair is consistent with the zoning ordinance and will have minimal impact on the area, given the conditions listed below are approved. Industrial Services are allowed in CH zones and Industrial zones and would not be consistent with this property or the surrounding area whatsoever. The proposed usage to fix personal automobiles and cars which is consistent with the surrounding area also will help to serve a community need in this area. As a side note, CG zoning allows product repair as defined in Section 315.G.3.d of the zoning ordinance and would cover smaller products on this site without a Conditional Use at all. Certainly automobiles are a step up from small appliances and blacksmithing, and tailoring; all fit in with a residential area in the correct place. This area is somewhat isolated from residential uses now and in the future this could change. The proposed conditions below will ensure development is compatible with the scale and intensity around this area. Given the shops, warehouses and outdoor storage already allowed through more intensive zoning in the area, this is a step down. To effectively act as a buffering area to provide a transition into less dense and less intensive development, the intensity and appearance of this operation will have a large impact. The Conditions listed just below are in place to ensure that a transition from more intensive to less intensive does occur and so that the development may be consistent with the Comprehensive Plan's Goals and the intent of the Zoning Ordinance. Without the conditions below, the development may certainly have some unintended consequences on development patterns and impact the surrounding properties in a negative way. The conditions have been carefully thought out in a way that allows the proposed use of the property to function, without giving the illusion to the neighboring properties that this is intended as an industrial area. This CG zone is intended as a transition from CH and CG/CH into an area that is predominately RS-1; these conditions below ensure the transition happens, which is also the intent of approximately half of this property in the proposed Vision Plan Map Amendment recently approved by the Planning Commission.

Proposed Conditions (if approved)

1. All storage of automobiles and components/materials shall be completely screened from view of any public right-of-way, either in a fenced in, screened yard -or- within a workshop facility.

2. Any fencing shall adhere to Section 509 of the Zoning Ordinance. 3. The property obtain a General Commercial (CG) Zoning - Vehicle Repair

is not allowed in Single-Family (RS-1) Zoning Districts under any circumstance.

4. Any repair work occur inside a shop building only and not in an outdoor

yard or screened area. 5. Any engine testing -or- work requiring pounding, sanding, grinding, or

similar activities generating noise discernible outside the repair shop occur after 8AM and cease prior to 7PM each day of the week.

Attachments: excerpt from zoning map, showing the general

location within the City of San Angelo; excerpt from zoning map, highlighting subject

property; aerial photo, highlighting subject property; excerpt from the Comprehensive Plan Vision

Map highlighting the subject property; Proposed Vision Plan map of area approved by

Planning Commission on August 19, 2013; Conditional Use Application submitted by

applicant; Draft minutes from September 16, 2013

Planning Commission; Citizen responses to request; and Draft Ordinance for Zone Change should the

Planning Commission's decision be overturned.


G. Z 13-29 Arthur DeLa Pena A request for approval of a zone change from Single-Family Residential (RS-1) to

General Commercial (CG) to specifically allow for Vehicle Repair as defined in Section 315.I of the Zoning Ordinance -and- A request for approval of a Conditional Use to specifically allow for Vehicle Repair as defined in Section 315.I of the Zoning Ordinance, subject to the approval of the zoning change on the following property:

2588 Armstrong Street, located on the east side of Armstrong Street,

approximately 800 feet south from the intersection of Armstrong street and East 28th Street. This property specifically occupies 6 acres from Tract 39 in the RS Longbotham Survey 0027, Abstract 5735 in north-central San Angelo.

This presentation includes the request for CU 13-19. Mr. Hintz, Interim Senior

Planner, comes forward to present both requests. Eleven notices were sent for this request and 2 were received in opposition and five were received in favor of the request. Mr. Hintz used photos and maps to orient the commission with the property and surrounding properties and discussed the criteria mandated for approval and options for the commission regarding the case regarding the zone change and conditional use requests. The property currently serves as a vacant lot. Staff recommends approval of the zone change and the conditional use, subject to conditions as outlined in the report. The property has been zoned Single-Family Residential since 1954. Mr. Hintz goes over the Criteria of Application for the Conditional Use request. CG/CH zoning to the north, the property across the street was zoned CH, demonstrates like zoning the in area. CG zoning allows for some outdoor storage – 10 percent of the lot. CG will allow for a transition of zoning to the residential zoning to the east. He mentions the CN zoning is also compatible with the area. The request will result in predictable and consistent development patterns given the context of the surrounding area and many of the other intense zoning districts and uses already in place. This proposal will establish a buffer and transition into the residential uses from the higher intensity uses. Conditions cannot be placed on zone changes but is subject to Conditional Uses. There are strict controls on hours, activities and outdoor storage. Mr. Hintz goes over the proposed conditions for the Conditional Use request.

Mark Crisp asks what is calculation involved in the 10 percent allowable for

outdoor storage in a CG zone. He asks what would be the intensive use allowed in the district. Mr. Hintz mentioned that the Vehicle Repair would be most intensive use allowed and is eligible only with approval of a Conditional Use, but mentioned that conditions will mitigate potential incompatibilities for some of the uses and that CN zoning would drastically reduce the outdoor storage potential.

Darlene Jones asks about the nature of the recently rezoned commercial

property in the area south of 28th Street on the west side of Armstrong Street. Mr. Hintz mentions that the approved zoning only allow for limited vehicle service, and that the conditional use was also granted to allow for full service repair, after some lengthy discussion in November or December of 2011 regarding engine and transmission removal and work of that type.

Mark Crisp mentioned issues of enforcement. Mr. Hintz mentions the review

process of all approved conditional uses and that code will insure that the approved conditions are met, and general enforcement is overseen by the code enforcement officers.

John Young asks to review an aerial of the property. Mr. Hintz mentions that the

property is currently vacant, the proponent can come up to further explain the details of what is being proposed.

Mark Crisp asks about access to the property and required screening for the

property. Mr. Hintz mentions that where the property abuts residential requires a privacy fence.

John Young asks more about the conditions in place. Mr. Hintz mentions that the

proposed conditions will only apply to the proposed use of Vehicle Repair and no other uses on the property. A hotel, gas station, restaurant, or store could be built and the conditions would not apply to the property. The privacy fence along the east, south and north of the property would be required with any commercial zoning designation.

Art De La Pena, comes forward to speak in favor of the request. He intends to

use the property primarily for auto repair services. He was first contacted by code who stated to him that the current zoning does not allow for the use and a zone change will be required. He mentions that he has the tools required to fix up the property. He mentioned that he contacted his neighbors and they were fine with it. He mentioned that some have issues with traffic, his site will not generate much traffic. His site will be will kept.

Mark Crisp asks whether the vehicles will be similar to what he has on a nearby

property that he owns. Mr. Del Pena states, no – he has other places to park his vehicles. He does not intend to have a big business and wants to participate in improving and restoring old, classic vehicles (it is a hobby of his).

Teri Jackson asked if it was more of hobby, not a business. Mr. De La Pena

mentioned that it will be a business but not a large one. He wants to pass the tradition onto his grandchildren.

Clay Hubbard comes up to speak in opposition of the request. He has concerns

over the lack of a notification sign for the property. He mentions that Mr. De La Pena's other property serves as a junk yard for vehicles and buses. He and the other on the petition he submitted are opposed to the request.

Mr. Hintz mentions that the notification sign is not required by law, the signage is

placed as a convenience and is done so whenever it is legally possible, outside of the right-of-way.

Teri Jackson asks whether a conditional use is not allowed in the CN zoning for

this particular usage. Mr. Hintz mentions that full service auto repair is not allowed under any circumstance in CN zoning.

Motion to deny the zone change request is made by Valerie Priess and seconded

by Mark Crisp and passes 6-1, with Bill Wynne opposed. Motion to deny the conditional use is made by Mark Crisp and seconded by Teri

Jackson and passed 7-0.

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

PROPERTY, TO WIT: 2588 Armstrong Street, located on the east side of Armstrong Street, approximately 800 feet south from the intersection of Armstrong street and East 28th Street. This property specifically occupies 6 acres from Tract 39 in the RS Longbotham Survey 0027, Abstract 5735 in north-central San Angelo, changing the zoning classification from Single-Family Residential (RS-1) to General Commercial (CG) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

RE: Z 13-29: Arthur De La Pena WHEREAS, the Planning Commission for the City of San Angelo and the governing




by the governing body for the City of San Angelo on January 4, 2000 and included within Chapter 12 of the Code of Ordinances for the City of San Angelo, be and the same is hereby amended insofar as the property hereinafter set forth, and said ordinance generally and the zoning map shall be amended insofar as the property hereinafter described: 2588 Armstrong Street, located on the east side of Armstrong Street, approximately 800 feet south from the intersection of Armstrong street and East 28th Street. This property specifically occupies 6 acres from Tract 39 in the RS Longbotham Survey 0027, Abstract 5735 in north-central San Angelo, shall henceforth be permanently zoned as follows: General Commercial (CG) District.











____________________________________


ATTEST:



City of San Angelo

Memo




Subject: Z13-31: Baptist Memorials Ministries, a request for approval of a

zone change from Two-Family Residential (RS-2) to Low-Rise Multi-Family Residential (RM-1) to allow for a group living facility as defined in Section 313.A of the Zoning Ordinance, on the following property:

Location: 902, 904, 916 Holcomb Street and 426 and 428 East 8th Street,

specifically occupying the proposed subdivision approved August 19, 2013 by the Planning Commission, entitled, Baptist Retirement Community AL-MC Houses, Section 1, Block 1, Lot 1, being a replat of of Cornick's Addition, Block 2, Lots 8-11 and 0.8 acres of the Michael Himmer Survey 321, Abstract 355, in northern San Angelo.

Purpose: Approval of this request would zone the property Low-Rise Multi-

Family Residential (RM-1)

Contacts: Baptist Memorials Ministries, Owner 325-655-7391




Z13-31: Baptist Memorials Ministries

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 902,

2

904, 916 Holcomb Street and 426 and 428 East 8th Street, specifically occupying the proposed subdivision approved August 19, 2013 by the Planning Commission, entitled, Baptist Retirement Community AL-MC Houses, Section 1, Block 1, Lot 1, being a replat of of Cornick's Addition, Block 2, Lots 8-11 and 0.8 acres of the Michael Himmer Survey 321, Abstract 355, in northern San Angelo, changing the zoning classification from Two-Family Residential (RS-2) to Multi-Family Residential (RM-1) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY





Recommendation: Planning staff recommends approving the proposed zone

change request from Two-Family Residential (RS-2) to Low-Rise Multi-Family Residential (RM-1). Planning Commission recommended approval of this request by a vote of 7-0 on September 16, 2013.


The subject property is situated in north-central San Angelo, a few blocks north of downtown. The area consists of eight lots – Lots 8 - 11 of the Cornick Addition and four surveyed parcels, which have never been platted – recently, a request has been made to combine the lots into a single lot which was granted final approval by Planning Commission on August 19, 2013 (see the approved plat below). Although the approved, Baptist Retirement Community AL-MC Houses, Section One passed the board by a unanimous 6-0 vote, it is not official until all conditions are met and the document is recorded with the County Clerk’s office. A variance was also granted which waives the requirement for street improvements of Holcomb Street, which only measures roughly 30 feet across – the Ordinance requires a minimum, 40 feet pavement width, or, alternatively, a

3

36 foot pavement width plus 4 feet of sidewalk for local streets (Ordinarily requests of a subdivision require adjoining streets to meet the minimum pavement requirements).

General Information

Existing Zoning: Two-Family Residential (RS-2) Existing Land Use: Mostly vacant lots; a residential dwelling once

occupied the lots. Surrounding Zoning/Land Use:

North: Two-Family Residential (RS-2) and Single-Family Residential (RS-1)

Baptist Memorials Ministries facilities

(Village High Rise Northgate and single-family residences)

West: Low-Rise Multi-Family Residential (RM-1), Two-Family Residential (RS-2) and Office Commercial (CO)


(Alzheimer's Care Center) and single-family residences

South: Office Commercial (CO), Two-Family Residential (RS-2) and General Commercial (CG)

Shell gas station, Main Street Animal Clinic, residence, open space - vacant properties, Dollar General, Advance Auto Parts, Allsup / Alon gas station

East: Two-Family Residential (RS-2) and General Commercial (CG)


(Nursing Facility Home Health Pharmacy), Church of Christ and AutoZone

Thoroughfares/Streets: Holcomb Street, East 10th and 8th Streets are

identified as a "local streets", designed to carry light neighborhood traffic at lower speeds and generally connects to collector streets.


before 1949. Around 1954, the properties were R-2, the same

classification as the current RS-2 zoning. Applicable Regulations: Residential development standards are outlined in

Section 501 of the Zoning Ordinance. Development Standards: All required off-street parking and the


4

Vision Plan Map: Campus/Institutional Related Comp Plan Excerpts: “Promote better transition between nearby


"Require a buffer separating commercial, industrial, or agricultural zoned lands from neighborhoods."

"Promote neighborhood diversity and security by encouraging a mix of age, income, and housing choices within San Angelo's neighborhoods."

"...encourage appropriate and supportive infill development at Neighborhood Centers."

"Promote a mix of various uses...to encourage the necessary infill...for Neighborhood Centers."

"Establish transition areas to better "scale-down" intensity of use from commercial centers to neighborhoods."

"...this [access to Neighborhood Centers] is best achieved through clustered commercial centers, but also through increased access and connectivity between the neighborhoods and their associated Neighborhood Centers."

"...slowly reorganize commercial corridors into clusters..."

"Create new physical connections to neighborhoods lined with transitional and intermediate uses."

"Variety of residential product types - multi-family, townhomes, courtyard homes, patio homes, etc."

Special Information

Traffic Concerns: Changing to a more intensive zoning has the potential to generate additional traffic than if the

5

property remained as-is. Most of the lots remain vacant and little traffic is generated by the site.

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

Section 511 of the Zoning Ordinance. Parking Provided: Limited parking exists on-site, once development

occurs, additional parking will be required. Density: Small to fairly large tracts of mostly developed

land. Primarily residential with uses varying from medium to high intensity. The Vision Plan calls for 'Campus / Institutional' type development in the area.



Analysis:






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

6

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



The staff recommendation is based upon the statements listed below. The site in question is situated a block north of East Houston Harte Expressway, approximately half a mile north of the downtown area. The area consists of eight adjacent lots that form a city block and measure roughly 1.6 acres (69,968 square feet). Baptist Memorials Ministries, the proponent and property owner, seeks to expand and build a group living facility on the subject lots. This request is reflective of the Comprehensive Plan which promotes the physical diversity of neighborhoods by encouraging a mix of housing choices and better transitions between commercial and residential uses. Based on the Vision Plan’s “Neighborhood” designation of the area, the long-range plan encourages future residential development. The proposed request to rezone the lots to RM-1 is consistent with that Plan, similarly other zoning districts – RS-1, RS-2, RS-3 and RM-2 – also ‘fits’ within this category. As such, this request will not require an amendment to the Ordinance. This request is consistent with aspects of the Zoning Ordinance. The current RS-2 zoning does not allow for multifamily housing development. RM-1 will provide greater housing opportunities as it essentially permits all the allowed uses in RS-1, RS-2, and RS-3, in addition to multifamily and group living structures. RM-1 is one of most intensive residential zoning in the city, only RM-2 zoning exceeds the district in overall intensity. More, it offers opportunities for more intensive, compact development which is generally needed in the area, given the characteristics of the surrounding environment. Approval of this request will diversify housing the area’s housing stock and supply the increasing demand for more housing (refer to the paragraph on community need). RM-1 allows for the greatest range of housing options of the residential zoning districts - single-family detached structures, accessory apartments, two-family dwellings, zero lot line dwellings, twin homes, townhouses, multifamily dwelling and group living structures are all allowed in the district. Conditional uses allowed in the district include day care facilities, religious institutions, safety services and schools, which are added exceptions approved by Planning Commission. The maximum density for multifamily dwellings in a RM-1 zone is 25 units per acre (Section 501, Zoning Ordinance). While RM-1 zoning is more intensive in nature, more land is required to meet the minimum lot size as outlined in the Ordinance, relative to

7

the current zoning - in RM-1, the minimum lot area (and dimensions) and setbacks varies depending on the housing type (refer to the chart on Section 501.A of the Zoning Ordinance). The minimum lot area for a multifamily project or group home is 7,000 square feet; the minimum dimension is 60' x 100'. The setbacks in RM-1 also vary depending upon the structure type that is being built - for example, the front yard is 25 feet for single-family residences, multifamily dwellings and group living structures, and 15 feet for zero lot line, twin home townhome units (again, refer to Section 501.A of the Ordinance for additional regulations). The Floor Area Ratio, FAR, or maximum buildable space increases from 0.50 or 50 percent to 0.75 or 75 percent of the lot. While both RM-1 and RM-2 provide opportunities for multifamily dwellings, RM-1 limits development to low-rise, two-story or walk-up apartments (with each having a maximum height of 2 ½ stories or 35 feet), RM-2 allows for high-rise development that measure 3 or more stories (with no height restrictions). RS-2 is the most dominant residential zoning in the area – it extends several blocks west and northwest of the subject area. Although many of the properties are only occupied by a single residential dwelling unit, RS-2 zoning allows for a maximum of two household units – including twin homes and up to two single-family residences – on a single lot. In fact, the area boasts one of the highest concentrations of RS-2 zoning in the city. RM-1 also exists in the area, directly west of the site in question – the area measures slightly more than 2 acres and covers nearly a city block. The proponent, Baptist Memorials Ministries, owns much of the properties in the immediate area – the subject area is bounded by Holcomb Street to the east, East 10th Street to the north, and Akin Street to the west. A change to RM-1 represents logical development since higher density residential development is present in the area. Commercial zoning exist in the area – Office Commercial (CO) and General Commercial (CG) directly south of the property, while a large swath of CG zoning exists west of North Main Street. In observing the area, the RS-2 zoned areas generally have only one residence per lot, even though the zoning allows for a maximum of two housing units - this may be the case given the small size of the lot. There are small incidences of twin homes in the area – which is also allowed in the district. More, there are signs of distress properties – several boarded homes and vacant lots where homes once stood, approval of this request would further diversify and provide a source of needed infill of compact residential development within this section of the community.

Given the fact that proposed zoning allows for a variety residential uses, the degree at which natural environment is affected will largely depend on the intensity of the proposed use. Multi-family residences, unlike contemporary detached single-family residences, are more impactful to the environment, considering that such structures have significantly larger footprints which can result in a higher percentage of impervious surfaces. In contrast, higher intensive, compact development is usually a better use of the land – since the living units tend to be smaller and are able fit more household units within a confined space. Often, these types of developments consist of several multi-

8

unit buildings and preserves areas of green space which has the potential to benefit the surrounding environment. This form of development is less likely to pose environmental risks to area, in terms of leakages and contaminations that heavy commercial and industrial uses often pose. An internal site review will be conducted by staff before a permit is issued to ensure that the project is structurally compatible to applicable building standards and has proper drainage. Staff finds that the zoning represents a community need. There is a demand and need for more housing in the city. RM-1 zoning will allow multifamily development, which includes the group living facilities and apartments. Approval of this request will be source of needed infill. RM-1 is an underutilized district and would further diversify the housing opportunities in the area. The area shows signs of the distress, allowing the zoning change can be a potential catalyst for further development in the area. Higher density residential development already exists in the area. RS-2 is the dominant residential zoning in the area and is intended to provide opportunities for development of single and two-family residences at medium densities. Baptist Memorials Ministries owns much of the immediate areas north and east of the site – there two high-rise buildings within two blocks of the site that act more like RM-2 zoning, one in particular, is Baptist Memorials Ministries Village High Rise Northgate – contains a mid-rise building with 5 floors. Higher density development is conducive to the area given the site’s close proximity to Houston Harte Expressway, which is located a block to the south. North Main Street, just 230 feet east of the site, is identified as an arterial street in the city's Thoroughfare Plan (although the street does not meet the minimum pavement width for an arterial street and measures roughly 39 feet across). Higher density development already exists in the area. Compact development is a responsible pattern of development in the area – it will supply the growing demand for additional housing, while developing on the least amount of land possible. More, the area has established water and sewer connections, basic infrastructure is already in place. The property is also ideally situated near a commercial node – although the area is not fully established as a commercial area at this time. While much of the area west of North Main Street is zoned CG, this area has developed more residential in nature. Presently, only a few commercial establishments exist near the site (many commercially zoned properties are occupied by residential development) – notable establishments include the Stripes gas station and Autozone north of the intersection of North Main Street and East 7th Street, where the Vision Plan envisions "Neighborhood Center" for the area separating the properties in question and Houston Harte Expressway. Introducing RM-1 in the area further establishes the area as a walkable community where nearby residents can live, shop and work in a localized, pedestrian friendly environment. It will also provide a suitable buffer to the existing commercial zoning and major freeway to the south and the predominantly RS-2 zoned properties to the north.

9

Proposed Conditions

N/A

Attachments: Final Plat of Baptist Retirement Community AL-MC Houses,

Section One; subdivision approved by Planning Commission on August 19, 2013.

Excerpt from zoning map, showing the general location within






C. Z 13-31 Baptist Memorials Ministries A request for approval of a zone change from Two-Family Residential (RS-2) to

Low-Rise Multi-Family Residential (RM-1) to allow for a group living facility as defined in Section 313.A of the Zoning Ordinance, on the following property:

902, 904, 916 Holcomb Street and 426 and 428 East 8th Street, specifically

occupying the proposed subdivision approved August 19, 2013 by the Planning Commission, entitled, Baptist Retirement Community AL-MC Houses, Section 1, Block 1, Lot 1, being a replat of of Cornick's Addition, Block 2, Lots 8-11 and 0.8 acres of the Michael Himmer Survey 321, Abstract 355, in northern San Angelo.

Kevin Boyd came forward to present this case consistent with staff’s

recommendation of approval of the request. Ten notices were sent and one was returned in favor of the request. Mr. Boyd used photos and maps to orient the commission with the property and surrounding properties as well. RS-2, RM-1 and some lower intensity commercial zoning does surround the property at this time. This project is for a proposed expansion of the Baptist Memorials Retirement Community and is consistent with the intent and goals of the comprehensive plan. The criteria mandated for approval and options for the commission were presented to the commission. Staff does find this request consistent with the area, comprehensive plan, and could be a future catalyst for the area to develop.

There were no questions for Mr. Boyd from the Commission. No one came forward to speak in favor or in opposition

Motion to approve as presented was made by Teri Jackson and seconded by Bill Wynne and passed 7-0.

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 902, 904, 916 Holcomb Street and 426 and 428 East 8th Street, specifically occupying the proposed subdivision approved August 19, 2013 by the Planning Commission, entitled, Baptist Retirement Community AL-MC Houses, Section 1, Block 1, Lot 1, being a replat of of Cornick's Addition, Block 2, Lots 8-11 and 0.8 acres of the Michael Himmer Survey 321, Abstract 355, in northern San Angelo, changing the zoning classification from Two-Family Residential (RS-2) to Low-Rise Multi-Family Residential (RM-1) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

RE: Z 13-31: Baptist Memorials Ministries





by the governing body for the City of San Angelo on January 4, 2000 and included within Chapter 12 of the Code of Ordinances for the City of San Angelo, be and the same is hereby amended insofar as the property hereinafter set forth, and said ordinance generally and the zoning map shall be amended insofar as the property hereinafter described: 902, 904, 916 Holcomb Street and 426 and 428 East 8th Street, specifically occupying the proposed subdivision approved August 19, 2013 by the Planning Commission, entitled, Baptist Retirement Community AL-MC Houses, Section 1, Block 1, Lot 1, being a replat of of Cornick's Addition, Block 2, Lots 8-11 and 0.8 acres of the Michael Himmer Survey 321, Abstract 355, in northern San Angelo, shall henceforth be permanently zoned as follows: Low-Rise Multi-Family Residential (RM-1) District.


SECTION 2: That in all other respects, the use of the hereinabove described property shall be subject to all applicable regulations contained in Chapter 12 of the Code of Ordinances for the City of San Angelo, as amended.

SECTION 3: That the following severability clause is adopted with this amendment: SEVERABILITY: The terms and provisions of this Ordinance shall be deemed to be severable in that,






____________________________________


ATTEST:



City of San

Angelo

Memo



From: Roxanne Johnston, Planner

Subject: Z13-32: Fleet Equipment Leasing, LLP. A request for

approval of a zone change from Ranch & Estate (R&E) to Single-Family Residential (RS-1) to specifically allow for “Household Living” as defined in Section 313.B of the Zoning Ordinance on the following property:

Location: An unaddressed tract occupying a 25.822 acres tract located

south of Red Bluff Road and Hillside Drive; more specifically being 25.822 acres out of 96.314 acres of the Christoph Voight Survey 181, Abstract 3931 and Carl Dammann Survey 180, Abstract 141 in far southwest San Angelo. This property is described on a Preliminary Plat titled “The Canals at Lake Nasworthy” and occupies all of Blocks 6 and 7.

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

zone property as a Single-Family Residential (RS-1) Zoning District.

Contacts: Russell Gully, SKG Engineering 325-655-1288

Fleet Equipment Leasing, Owner 254-629-1718 Roxanne Johnston, Planner 325-657-4210


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

Z 13-32: Fleet Equipment Leasing, LLC.

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

ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: An unaddressed tract occupying a 25.822 acres tract located south of Red Bluff Road and Hillside Drive; more specifically being 25.822 acres out of 96.314 acres of the Christoph Voight Survey 181, Abstract 3931 and Carl Dammann Survey 180, Abstract 141 in far southwest San Angelo. This property is described on a Preliminary Plat titled “The Canals at Lake Nasworthy” and occupies all of Blocks 6 and 7, changing the zoning classification from a Ranch & Estate (R&E) to a Single-Family Residential (RS-1) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY


(1) Approve the proposed zone change;

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

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

Recommendation: Planning staff recommends approving the proposed

zoning classification to Single-Family Residential (RS-1). Planning Commission unanimously recommended approval of this request by a vote of 5-0 on August 19, 2013.


This property was annexed into the City limits on June 28, 2011 and lies west of a former power plant and also south and southeast of City property known either as Lincoln Park and/or Hot Water Slough Park. The property is heavily populated by foliage and is undeveloped. A canal bisects the property, running east and west, respectively.

At the applicant’s request, both a proposed preliminary plat named “The Canals at Lake Nasworthy” and the first section of this preliminary plat named “The Palms, Section One” which is to contain a portion of the subdivision planned for this proposed zone change, was tabled in the September 16, 2013 Planning Commission meeting. These plats were tabled in order to allow more time to resolve technical challenges.

General Information

Existing Zoning: Ranch & Estate (R&E) Existing Land Use: Vacant, undeveloped property Surrounding Zoning/Land Use:

North: Un-annexed property

Undeveloped property

West: RS-1 City Park

South: RS-1 Undeveloped property

East: R&E Former power plant location

Thoroughfares/Streets: Red Bluff Road is defined as a “collector

street” and is designed to provide direct access to residential, commercial and other land uses.

Hillside Drive is defined as a "local street"

and is designed to carry light neighborhood traffic at lower speeds and generally connect to collector streets.

Zoning History: Newly annexed property is zoned Ranch &

Estate (R&E) by default as called for in Section 303.A of the Zoning Ordinance. This property has no previous zoning history.

Applicable Regulations: Allowed uses for this property can be


Development Standards: Section 501 of the Zoning Ordinance

covers general development standards for the property.

Minimum Lot Area – 5,000 sq ft Minimum Lot Dimensions – 50x100 Minimum Front Yard – 25 ft Minimum Side Yard – 5 ft Minimum Rear Yard – 20 ft

Maximum Floor Area Ratio – 0.4 (40%) Maximum Height – 35 ft Vision Plan Map: Transitional Comp Plan Excerpts: “Create new physical connections to

neighborhoods lined with transitional and intermediate uses."

"Promote neighborhood diversity and security by encouraging a mix of age, income, and housing choices within San Angelo's neighborhoods.”

“All residents within each neighborhood boundary should be able to meet their daily needs within a reasonable and accessible distance from their home.” "Variety of residential product types -multi-family, townhomes, courtyard homes, patio homes, etc." "Coordinate with San Angelo Independent School District (SAISD) to improve walkability and connections between neighborhoods and nearby schools."

Special Information

Traffic Concerns: Changing the zoning from a very low density residential zone requiring one acre lots to a zoning classification that allows for lots that are 5,000 square feet will most likely increase density and traffic impacts on the area. However, the access to collector and arterial streets will adequately handle this increased density.


covers parking improvement standards and amounts. One and two family dwellings require 2 off-street parking spaces per dwelling unit.

Parking Provided: The property is undeveloped at this time.

Parking spaces will be required to be provided as housing units are constructed.

Density: This general area is of low density residential and vast acreages of undeveloped property.



Analysis:

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








The staff recommendation is based upon the statements listed below.

A recent concept plan for the subject property and surround area was submitted to the Planning Division by Gateway Planning, who is a private planning consultant group under contract by the City since 2012 in order to provide a plan for the Lake Nasworthy area. Their recommendation for the subject property calls for pocket parks to be interspersed with lots that would contain single-family residences, thus allowing for a more aesthetic pedestrian experience and the intent for the subject property to be residential is clear. This same plan provides a broader vision on how development could take place in order to make the best use of the land. Although the above plan is a concept plan and not the exact vision the developer may have in mind, staff finds this zone change request to be both consistent with plans and policies adopted by the City, the Zoning Ordinance and also this concept plan which calls for subject property to be residential with more dense residential to the northeast and commercial even farther east as the property abuts Knickerbocker Road. In order to provide smooth transitions in land use between each segment of the overall area as illustrated in the plan provided by Gateway Planning, staff recommends that no additional RS-1 zoning be allowed within the contiguous ownership tract; thereby preventing RS-1 zoning from abutting a possible commercial use along Knickerbocker Road; some of which already exists at the corner of Knickerbocker Road and Red Bluff Road. Since the goal of the Comprehensive Plan is to guide community growth in a sustainable way providing opportunities for growth both now and in the future, and since the Zoning Ordinance seeks to prevent conflicts in future and existing land use, staff is confident that this zone change and the recommendation stated above is in line with these. This proposal seeks to buffer the open space and neighborhoods to the west, from the highly trafficked Knickerbocker Road and the former power plant site. Although development of low density, single-family detached neighborhoods is not ideal along major thoroughfares such as Knickerbocker Road which is located approximately 2,300 feet to the east of the subject property, quick access to them is. This area is sheltered away from the highly trafficked Knickerbocker Road yet offers potential residents quick access to a main thoroughfare from the south end of the city as well as Loop 306, respectively. Additionally, this area is located near recreational areas surrounding Lake Nasworthy as well as commercial areas located along Knickerbocker Road, both which are practical and optimal features for this residential development. Another way this zone change request is consistent to the Comprehensive Plan for this area of the community is because it is located away from zones that could be incompatible. The adjacent park to the northwest, which would be impacted by any development, would be more compatible with RS-1 zoning than if a commercial zoning, for example, were approved at the subject property, which is not the request here. Therefore, RS-1 zoning would provide a transition between

the park and possible future commercial development to the east of the park. This serves to illustrate one of the central intentions of the Zoning Ordinance, which is in place to ensure consistent predictable growth across all segments of the community, both now and in the future. Additionally, with regard to compatibility, staff found this request to be compatible with not only the area, but the Vision Plan. The current trend and envisioned growth through the Vision Plan for this area calls for "Transitional" development and would require no amendment should this request be approved. The proposed zoning would also compliment the nearby Vision Plan for the area south of the subject property known as “Gun Club Hill” bounded by Hillside Drive, which calls for “Rural” development. Gun Club Hill is frequently used for recreational exercise as well as providing a transportation route to and from lakeside properties. Thus, RS-1 development would be more compatible and less demanding on the environment than a commercial zoning here. The canal that runs from east to west through the subject property serves to ensure that future RS-1 lots would not be as dense as traditional subdivisions. As an extension of Lake Nasworthy to the west, this canal serves as a natural buffer which also serves as a recreational and visual attraction as well as a pedestrian destination. As a result, this lends not only to the attractiveness of the area but would most likely create less vehicular traffic opportunities (via roads and bridges) than a traditional subdivision thereby having a softer impact on the environment than the latter development would. Along with compatibly zoned areas, safe, pedestrian-oriented neighborhoods are another goal of the City’s Comprehensive Plan which further illustrates that this request for RS-1 zoning is certainly favorable to the Comprehensive Plan. Staff anticipates environmental changes as development takes place, given the current undeveloped status of the site now and notes that any future development will have some impact on the environment. Although R&E zoning typically incurs the least amount of impact on a property, RS-1 is also a very low impact type of zoning when compared to other more dense residential zoning categories and commercial designations. This isolated location from Knickerbocker Road would most likely provide a relatively quiet area for the future development of home sites. Therefore, staff does not anticipate any adverse environmental impacts from this zone change and subsequent proposed development. As discussed in recent zone change request reports, the community has been growing in a steady fashion for the past decade. With recent technological advancements in the extraction of natural resources in the area, there is a demand for more housing opportunities to house area individuals and families. One component of this demand for housing options is single-family residences, however, it should also be noted townhomes, duplexes, patio homes, and apartments are also choices that are viable within a transitional envisioned area of the Vision Plan and also have the ability to fill this demand. Given the current

development patterns of this area, staff finds that RS-1 zoning is appropriate here and will serve to fill a community need while ensuring that development patterns remain compatible. Had the applicant requested an RM-1 zone change on the same tract, staff is confident that that request would have been appropriate as well, and actually would have provided the applicant with more housing options. Regardless, this area has access to thoroughfares capable of carrying future residents to and from home and is located near to numerous natural amenities and commercial opportunities that will help future residents meet their daily needs within a reasonable distance from home. The transitional intent of the site it still being met through having some lower density single-family residential zoning on this location only. Any other single-family requests on the site will not necessarily meet the intent of the Comprehensive Plan on this site as a transitional site. Some increased density moving east into mixed use closer to Knickerbocker with some commercial zoning has been discussed with a representative of the applicant. In order to truly meet this transitional intent, the density on the site needs to be increased. To provide a buffer or transition from the mixed use intended for the site as a whole, RS-1 zoning works here for Blocks 6 & 7 (located to the far west and southwest) on the preliminary plat not yet presented to Planning Commission titled “The Canals at Lake Nasworthy,” but this is really the only spot on the site where this type of zoning meets the intent of the Comprehensive Plan. Staff finds this request to be consistent with all seven criteria mandated of the request and therefore recommends approval of this zoning change for all the reasons mentioned within this report.

Proposed Conditions

N/A

Attachments: excerpt from zoning map, showing the general location

within the City of San Angelo; excerpt from zoning map, highlighting subject

property; aerial photo, highlighting subject property; excerpt from the Comprehensive Plan’s Vision Map

highlighting the subject property; excerpt of the favor/opposition notification map; citizen response letters;

conceptual plan of the entire property excerpt from Gateway Planning;

draft minutes from the 09/16/13 Planning Commission

Meeting; and draft ordinance.



MINUTE RECORD OF THE CITY OF SAN ANGELO PLANNING COMMISSION MEETING HELD ON MONDAY, SEPTEMBER 16, 2013 AT 9:00 AM IN THE SOUTH MEETING ROOM OF THE SAN ANGELO CONVENTION CENTER, 500 RIO CONCHO DRIVE, SAN ANGELO, TEXAS PRESENT: Teri Jackson, Mark Crisp, Valerie Priess, Darlene Jones, Bill Wynne,

Sammy Farmer, John Young ABSENT: STAFF: AJ Fawver, Interim Director of Development Services Jeff Hintz, Interim Senior Planner Kevin Boyd, Planner Roxanne Johnston, Planner

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

A. Z 13-32 Fleet Equipment Leasing LLP A request for approval of a zone change from Ranch & Estate (R&E) to Single-

Family Residential (RS-1) to specifically allow for “Household Living” as defined in Section 313.B of the Zoning Ordinance on the following property:

An unaddressed tract occupying a 25.822 acres tract located south of Red Bluff

Road and Hillside Drive; more specifically being 25.822 acres out of 96.314 acres of the Christoph Voight Survey 181, Abstract 3931 and Carl Dammann Survey 180, Abstract 141 in far southwest San Angelo. This property is described on a Preliminary Plat titled “The Canals at Lake Nasworthy” and occupies all of Block 6 and 7.

Roxanne Johnston, Planner came forward to present the case consistent with

staff’s recommendation of approval. Four notifications were sent for this request and one was returned in favor of the request. Ms. Johnston used photos and maps to orient the commission with the area. The property is currently zoned Ranch & Estate (R&E) by default upon annexation. A graphic concept drawn by Lake Consultant Gateway Planning of Dallas was also presented to the commission; a brief overview of the property and concept through the master plan was presented to the commission as well.

The criteria of approval for this request were covered by Ms. Johnston and the

options available to the commission were also discussed. This property is adjacent to a park and will act as a low density buffer between a mixed use site and the park. This area is calling for transitional development within the comprehensive plan and this proposal will create isolated residential development off from Knickerbocker Road.

Herb Hooker came forward to speak in favor of the request and offered to answer

any questions.

No one else came forward to speak in favor or in opposition. Motion to approve as presented was made by Sammy Farmer and seconded by

John Young and passed 7-0.


PROPERTY, TO WIT: An unaddressed tract occupying a 25.822 acres tract located south of Red Bluff Road and Hillside Drive; more specifically being 25.822 acres out of 96.314 acres of the Christoph Voight Survey 181, Abstract 3931 and Carl Dammann Survey 180, Abstract 141 in far southwest San Angelo. This property is described on a Preliminary Plat titled “The Canals at Lake Nasworthy” and occupies all of Blocks 6 and 7,

changing the zoning classification from Ranch & Estate (R&E) to Single- Family Residential (RS-1) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

RE: Z 13-32: Fleet Equipment Leasing, LLP. WHEREAS, the Planning Commission for the City of San Angelo and the governing




by the governing body for the City of San Angelo on January 4, 2000 and included within Chapter 12 of the Code of Ordinances for the City of San Angelo, be and the same is hereby amended insofar as the property hereinafter set forth, and said ordinance generally and the zoning map shall be amended insofar as the property hereinafter described: An unaddressed tract occupying a 25.822 acres tract located south of Red Bluff Road and Hillside Drive; more specifically being 25.822 acres out of 96.314 acres of the Christoph Voight Survey 181, Abstract 3931 and Carl Dammann Survey 180, Abstract 141 in far southwest San Angelo. This property is described on a Preliminary Plat titled “The Canals at Lake Nasworthy” and occupies all of Blocks 6 and 7 shall henceforth be permanently zoned as follows: Single-Family Residential (RS-1).


SECTION 2: That in all other respects, the use of the hereinabove described property shall be subject to all applicable regulations contained in Chapter 12 of the Code of Ordinances for the City of San Angelo, as amended.








____________________________________


ATTEST:


Approved As To Content: Approved As To Form:

_________________________ ________________________ AJ Fawver, Planning Manager Lysia H. Bowling, City Attorney

City of San

Angelo

Memo



From: Jeff Hintz, Interim Senior Planner

Subject: Z 13-33 COSA Planning Commission: A request for approval

of a zone change from Ranch & Estate (R&E) to Office Commercial (CO) to specifically allow for a "Religious Institution" as defined in Section 314.G of the Zoning Ordinance on the following property:

Location: 5237 South Bryant Boulevard, located approximately 700 feet

south from the intersection of South Bryant Boulevard Frontage Road and Kimrey Lane. This property specifically occupies the Parkview Acres Addition, portions of Blocks 9 & 10 being 3.0966 acres in southern San Angelo.

Purpose: Approval or modification of this request by the Planning

Commission would forward that recommendation to City Council for a final decision on the matter.

Contacts: Jeff Hintz, Interim Senior Planner 325-657-4210


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

Z 13-33: COSA Planning Commission AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF

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

AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 5237 South Bryant Boulevard, located approximately 700 feet south from the intersection of South Bryant Boulevard Frontage Road and Kimrey Lane. This property specifically occupies the Parkview Acres Addition, portions of Blocks 9 & 10 being 3.0966 acres in southern San Angelo, changing the zoning classification from Ranch & Estate (R&E) to Office Commercial (CO) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY


(1) Approve the proposed zone change; or

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

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

Recommendation: Planning staff recommends approving the proposed

zone change. On September 16, 2013 the Planning Commission recommended approval of this request 7-0.


In July of this year the Planning Commission heard a request for sign variance on this property and had tabled that request until the August meeting so that more information could be gathered. At the August Planning Commission meeting, the variance request was denied, but the Planning Commission recommended a zone change to commercial on the property by the authority allowed in Section 212.A.2.c of the Zoning Ordinance (an authority also shared by the City Council and Historic Preservation Commission, now the DHRC but limited to Historic Overlays only). A suggestion to zone the property Office Commercial was made and a representative of the Church confirmed to staff this would be acceptable to them as well. A similar process took place at the Southgate Church of Christ in 2011; a variance from signage regulations was applied for, but a zone change was deemed by the Planning Commission as a solution for the initial problem.

General Information

Existing Zoning: Ranch & Estate (R&E) Existing Land Use: Religious Institution, parking lot, and

undeveloped natural area. Surrounding Zoning/Land Use:

North: RS-3 & RM-1 Drainage area and single-family houses

West: R&E - CH AEP Easement & vehicle storage

South: R&E Cemetery

East: R&E & CH Highway 87

Thoroughfares/Streets: The South Bryant Boulevard Frontage

Road is defined as a "Local Street" and is designed to carry light neighborhood traffic at lower speeds and generally connects to collector streets.

Zoning History: This property was annexed into the city

limits in November of 1989 Applicable Regulations: Allowed uses for this property can be


Vision Plan Map: Commercial Comp Plan Excerpts: Within the Comprehensive Plan, Goal 3 of

“Neighborhoods” is to “improve the relationship between adjacent commercial and residential properties”.

“Commercial properties tend to be

organized in a single use, isolated pattern of development. This form generates little synergy between businesses and land uses and often results in incompatibility.”

“All residents within each neighborhood

boundary should be able to meet their daily needs within a reasonable and accessible distance from their home.”

“Promote better transition between nearby


“Organize commercial uses in nodes to avoid deteriorating corridors.”

Special Information

Traffic Concerns: Changing the zoning from a low density residential zone to a zoning classification that allows for commercial activity, could have traffic impacts on the area. However, the access to Loop 306 is more than capable of this traffic flow. In addition, CO zones do not allow for retail sales which will keep traffic counts down should the use change in the future.


covers parking improvement standards and amounts. Religious facilities require 1 space per 400 square feet or 1 space per 10 seats of patron use (greater of the two).

Parking Provided: The facility currently has a paved lot that

adequately addresses the needs at this time. Future construction or expansion may require additional parking spaces.

Density: This area sees very low density

development, but is generally sparsely developed and remains in a natural state.



Analysis:

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



3. Compatible with Surrounding Area. Whether and the extent to which the

proposed amendment is compatible with existing and proposed uses surrounding the subject land and is the appropriate zoning district for the land.





The staff recommendation is based upon the statements listed below. Office Commercial (CO) Zoning is in line and compatible with all the Plans and Policies adopted by the City of San Angelo. This amendment will immediately be beneficial to the existing religious institution when the time to expand comes. Religious Institutions are allowed by right in CO zoning districts and are integral part of a neighborhood. Given the proximity to the newly developed Subdivisions nearby (Windwood & Pecan Ridge Estates), a church is certainly a land use that is compatible with that of the land uses present in this region. The Comprehensive Plan speaks to residents of the community meeting their daily needs within a reasonable distance from their home. The road network in this area certainly will allow this to happen. Hopefully the church will continue well into the future, but in the event plans change, uses allowed in CO zoning will also be at a scale and intensity that is complimentary to that of the surrounding properties. This proposal is consistent with the terms and provisions of the Zoning Ordinance. This area is very tranquil and roadway noise from the highway is somewhat muffled on the subject property. There is a property zoned Heavy Commercial (CH) nearby doing some industrial services, but this development is certainly the anomaly, or outlier of the area. This area is home to several neighborhoods, undeveloped natural area near a creek, and cemetery (adjacent to the Church). Commercial activities allowed within CO zones are low intensity and will not disturb this somewhat serene area. Retail Sales & Service is not allowed without the approval of a Conditional Use in this zoning district, so the

most intensive commercial uses are somewhat limited. CO zones are compatible next to lower intensity land uses (neighborhoods, residential, schools to name a few) and this area fits in that mold. Zoning districts with unlimited outdoor storage of goods, materials, and display are not appropriate next to a cemetery or along a main gateway into and out of town. This zoning district is highly consistent with the Zoning Ordinance and the intent to protect both current and future development patterns. Staff has found this proposal to be compatible with the surrounding area; as previously mentioned more intensive commercial districts with outdoor storage, retail sales, and industrial services would not be appropriate or compatible with this area. The overwhelming development pattern of this general area is residential. Yes, there are other more intensive land uses present across US Highway 87 to the east, but this particular area has been residential in nature and the commercial zoning is certainly warranted here due to the visibility on the property; however the right commercial zoning needs to be picked to preserve this quiet low intensity development pattern. The lack of traffic generating activities and activities allowed within a CO district will preserve this area both now and into the future. This proposal is consistent with the Comprehensive Plan's designation for "Commercial" development. As such, an amendment to the Comprehensive Plan is not required for this request to move forward and the proposal falls in line with state law which requires communities to zone in accordance with a Comprehensive Plan when one is in adopted. The effect on the natural environment is anticipated to be minimal given the current development of the property. Additional signage is anticipated to be placed but the environmental impact is expected to be negligible as a result; in addition, as the church or some other business expands on this property the low intensity of uses allowed will not detract from the environment or surrounding area. This section of the community is in need of commercial opportunities at a scale and intensity compatible with that of the surrounding area. This proposal presents exactly that to the region; the Religious Institution is a land use that serves the community in a variety of ways through worship, programs, and other charitable contributions that directly impact the community as a whole and this localized area specifically. More so, offices, clinics, and community services are also appropriate should the use change in the future and could also bring jobs to the area. The development patterns of the area are expected to remain unchanged as a result of this proposed amendment to the Zoning Map. The area is home to low intensity land uses with one exception; this proposal will not intensify the land uses in the area in any way that will detract from existing or future development. For all of these reasons, staff recommends approval of the Zone Change on this property.

Proposed Conditions

N/A

Attachments: excerpt from zoning map, showing the general

location within the City of San Angelo; excerpt from zoning map, highlighting subject

property; aerial photo, highlighting subject property; excerpt from the Comprehensive Plan Vision

Map highlighting the subject property; August 19, Planning Commission Minutes. Draft September 16, 2013 Planning

Commission Minutes; and Draft Ordinance.


VI. Second hearing on request for approval of variance from Sign Regulations, tabled at July 15, 2013 meeting. [Planning Commission makes final decision; appeals may be directed to City Council.] A. SV 13-02: Unity Church of Christianity, San Angelo

A request for a variance from the maximum 64 square foot variance allowable for sign area as allowed under Section 12.604.2.A. of the Sign Ordinance for nonresidential uses in residential zoning districts, to permit an increase in 11ft2 to total 75ft2; AND A request for a variance from the maximum 8-foot limitation on the height of freestanding sign(s) allowed under Section 12.604.2.B. of the Sign Ordinance for nonresidential uses in residential zoning districts, to permit the installation of a 25-foot high freestanding sign on the following property:

5237 South Bryant Boulevard, located approximately 1640 feet northeast of the intersection of Ben Ficklin Road and West Loop 306 Frontage Road/South Bryant Boulevard Frontage Road; more specifically Park View Acres, 3.0966 acres, Blocks 9 & 10 in far south central San Angelo.

Roxanne Johnston, Planner came forward to re-iterate this was presented last month and to read what the particular request was in this case. Ms. Johnston offered to answer any questions on this matter and clarified that this property did receive a variance in 2006 and it was also suggested at this time a zone change would serve the needs of this request. This was also brought up recently as of a few months ago that a zoning change would accomplish what the applicant desires and also allow for future expansion of the institution if that was desired. Catherine Taylor came forward to speak in favor of this request. There was some discussion of the landmark of a Ben Ficklin Cemetery and their meeting of the criteria of the variance. They own the adjacent property to the north and the vegetation on site, in their opinion, is not something they should change. There is an adjacent church which would not meet the criteria for variance today, but who has a sign that is higher. Sammy Farmer asked Ms. Taylor why the church was opposed to the zoning change suggested by staff, which would not only enhance their ability to expand, but would also give them different signage regulations to follow. Ms. Taylor explained that the sign had been donated to the church and the church wishes to not have the cost and the timeline imposed which would be necessary for a zone change. There was no other public comment. Ms. Johnston reminded the Commission that they had tabled the item at the previous meeting because of a concern about the tax status of the facility. Mark Crisp asked the staff if the cemetery could be zoned commercially and asked what the process was for the Commission to initiate a zone change for other properties. The bylaws for the Planning Commission do provide the ability for the Planning Commission to initiate the rezoning of any property within the city - this simply means that the City of San Angelo incurs 100% of the calls. Mr. Hintz also explained to the Commission members that the current sign on the

property was allowed as part of a variance in previous years and - at that time - was the minimum action necessary. Anything additional to that initial approval would no longer be the minimum action necessary. Motion, to deny the variance as presented, was made by Mark Crisp and seconded by Teri Jackson. Bill Wynne made some comments about the rezoning request and sign variances in general. The motion passed by a vote of 5-1, with Bill Wynne voting in opposition. Motion, to instruct to initiate a zone change on this property, was made by Mark Crisp and seconded by Darlene Jones. The motion passed unanimously, 6-0.

B. Z 13-33: COSA Planning Commission A request for approval of a zone change from Ranch & Estate (R&E) to Office

Commercial (CO) to specifically allow for a "Religious Institution" as defined in Section 314.G of the Zoning Ordinance on the following property:

5237 South Bryant Boulevard, located approximately 700 feet south from the

intersection of South Bryant Boulevard Frontage Road and Kimrey Lane. This property specifically occupies the Parkview Acres Addition, portions of Blocks 9 & 10 being 3.0966 acres in southern San Angelo.

Jeff Hintz, Interim Senior Planner came forward to present this case consistent

with staff’s recommendation of approval. Five notices were sent out for this request, and none were received back. Mr. Hintz used photos and maps to orient the commission with the property and surrounding properties and discussed the criteria mandated for approval and options for the commission regarding the case. Retail Sales and service will help keep the area quiet and intimate as it remains today. In addition, this request will allow the church to expand without coming back to the Planning Commission. Mr. Hintz also remineded the commission of a previous case where a zone change was persued by the commission in lieu of granting a variance from signage regulations.

Mr. Hintz offered to answer any questions the commission had. There were

none. No one came forward to speak in favor or in opposition of the request. Motion to approve as presented was made by Mark Crisp and seconded by

Valerie Priess and passed 7-0.


PROPERTY, TO WIT: 5237 South Bryant Boulevard, located approximately 700 feet south from the intersection of South Bryant Boulevard Frontage Road and Kimrey Lane. This property specifically occupies the Parkview Acres Addition, portions of Blocks 9 & 10 being 3.0966 acres in southern San Angelo, changing the zoning classification from Ranch & Estate (R&E) to Office Commercial (CO) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

RE: Z 13-33: COSA Planning Commission WHEREAS, the Planning Commission for the City of San Angelo and the governing




by the governing body for the City of San Angelo on January 4, 2000 and included within Chapter 12 of the Code of Ordinances for the City of San Angelo, be and the same is hereby amended insofar as the property hereinafter set forth, and said ordinance generally and the zoning map shall be amended insofar as the property hereinafter described: 5237 South Bryant Boulevard, located approximately 700 feet south from the intersection of South Bryant Boulevard Frontage Road and Kimrey Lane. This property specifically occupies the Parkview Acres Addition, portions of Blocks 9 & 10 being 3.0966 acres in southern San Angelo. shall henceforth be permanently zoned as follows: Office Commercial (CO) District.











____________________________________


ATTEST:



APPLICATION FORBOARDS and COMMISSIONS

Name: Joe Spano

Address:

City: San Angelo (unless otherwise noted) Zip: _7_6_9o_1 _

Phone (Home): (Office): _

Resident of San Angelo since: 12-25-11 SMD:

Are you a registered voter of San Angelo? Yes:~Occupation I Business Affiliation: -- 5~1~ t.~~Occupation I Business Address: --&to't-6fiir:lQ CGyrt Reae! GaR Ai 19&10 'fX 1e!set

Position: -ElteSl:ltive Bil ecm {CJ e (oNcb C2 S}Email: j~paQO.~iollife~tyle.eo"i j~e..3~Y)cJl:r('oJtjYnllH, C"",\By executing this document, the applicant does hereby certify an d affirm thetruth and a ccur~c¥' f the information contained herein. T he a pplicant furtherauthorizes thejt;ity CouncjJ,..-o~ designee, to verify any information. Theapplicant agre.es to r~aseand I),6Id harmless the City from all claims incidentto the v rifi7lion informat n.

X fJ{ /Sign?tu;e= c

, ~~6/~NOTE: This apPIiC~tion i:yn~ation of public record. * Public Service opportunities are offeredby the City of San Angelo without regard to race, color, national origin, religion, sex or disability.

RETURN TO: City of San Angelo, c/o City Clerk, POBox 1751,San Angelo, Texas 76902-1751

Applying for: JAN 2 5 2012

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Civic Events Board

Civil Service Commission

Development Corporation

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Construction Board

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Keep SA Beautiful

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Senior Service Adv Board

TIRZ Board ·additionalmembership requirements apply-See

8of Ordinance, Article 2.4300

.f Water Advisory Board

Zoning Board of Adjustment

Recommended by: fl~ ,,-- llA ,,-,,,

Tell us about yourself Feel free to use the back for more space.Education andJor Professional Licenses:

Mcmurry UniversityI certified Assisted LMng AdministratorCurrent Municipal and Civic Organization Memberships (Positions & Dates):

Previous Municipal Experience (Positions, Dates, Where):

What personal qualifications can you bring to this board?I bring In open minded approaoh to the prooue 01 debat., lind the ability to make dealelone baud on the betterment 01 thlllutur. 01 our oommunlty,

What is your personal vision for the City?To ffilllmAin tho ~roalltlivg nalYrn thai ~AI tCUIfI iMlillllg lho Plat Yl!lIfll: WB~' ililUOI haw boon And WUlllwilYli rOffiilin tin !IIUIII itt Ulillll@lf\lTIlJflit'/, 8M I wm h8\1D aft €lU!8:ao viow M MOW 10 mlW@fofWilKfAnlfk6QJ} 1M Ilnijelo lcaktfl§ b@ell:JlilYlAnd groon Al ,"0 IArno Umo aoftlinuinglo oor.lmv@ this ~ft801lftl9,Mu vllian m!hill flity 18 OM of PfOD'IOii, I hDVD tHHlfl R@m jj 6non limo ana GQm9l1om II gily IiIl !Iimllaf lin will'llftll! iamu inuOI, find I ilm \lory imprgllll~ wilh ol:lmmunlly IOilfUlflihip iUI~ UUl Bnoompliiihmofl!§ In ffillflV Bf@llll,

Why do you want to serve on this board?Water preservation, and infrastructure are two of the most important issues we face in communities of this size and this geographical location. 1feel I bring an approach to this board of being openminded to new ideas as well mature enough to know that change is inevitable to sustaIn this resource.

Anything else you would like for us to know?

·The City Council adopted the Code of Ethics for members of the City Council and for the City's boards and commissions to assurepublic confidence in the integrity of local government and its effective and fair operation. Therefore, all Members shall comply withthe I aws of t he nat ion, the State of Texas, and the City of San Angelo in the performance of their public duties. If you beenconvicted of a MISDEMEANOR or FELONY. and/or pi aced on pr obation, fined or given a suspended sentence such as pretrialdiversion or deferred adjudication in court within the last ten years, disclosure of such should be forwarded under separate cover.For a complete copy of the Code of Ethics, contact the City Clerk at 657-4405.

For Office Use Only:Appointed by: CiCo AppUReappt Date. Term Dales: To From

ReVised: 2/11