Item 4ECITY OF
SOUTHLAK
MEMORANDUM
(November 24, 2009)
To: Shana K. Yelverton, City Manager
From: Alison Ortowski, Assistant to the City Manager
Subject: Resolution No. 09 -071, Authorizing the creation of a Sidewalk
Partnership Program
Action
Requested: City Council approval of Resolution No. 09 -071, Authorizing
the creation of a Sidewalk Partnership Program
Background
Information: On September 15, 2009, staff presented to the City Council
an outline of a program that would provide guidelines to
encourage residential and non - residential property owners to
donate the property required to implement the City of
Southlake's Pathway's Plan.
Program Details:
• Program Eligibility Property owners who voluntarily
convey easement(s) for the purpose of building pathway
segments identified in the City of Southlake's annual
pathway construction priority plan and Capital
Improvement Program (CIP) shall be eligible for the
recognition offered through the Sidewalk Partnership
Program. The City of Southlake will not pursue
easements for pathway segments for which there are no
immediate plans for construction or allocated funding.
Additionally, property owners who are re uired to convey
needed right -of -way or easements due to development
regulations are not eligible to participate in or receive the
benefits from the program.
• Property Owner Notification Once the pathway
construction priority plan is adopted by the City Council
and funds are allocated for construction, staff will identify
needed easements for the selected segments. A
standard packet of information will be mailed to each
property owner which will, at a minimum, include a
description of the Sidewalk Partnership Program and its
benefits, a description of the needed easement, the
paperwork to be completed for conveyance, and a
contact name at the City. Resolution No. 09 -071 -
Attachment A includes a representative sample of the
Resolution No. 09 -071, Authorizing the creation of a Sidewalk Partnership Program
November 24, 2009
items to be included in the notification packet. The
packet will also include a copy of the "Property Owners
Bill of Rights" (Resolution No. 09 -071 -Attachment B).
• Conveyance. The City of Southlake will cover the cost of
conveyance as described in Attachment A.
• Community Outreach If the City of Southlake does not
receive a response from the property owner within 30
days of the issuance of the notice, a copy of this
notification shall be provided to citizen volunteers who
wish to promote the construction of pathways in the City
of Southlake. These volunteers may then contact the
property owner to promote the program in conformance
with guidelines established within the program standard
operating procedure.
• Program Benefits. Property owners who donate
easements under this program shall be publicly
recognized for their contribution. The City Manager shall
develop a standard operating procedure outlining the
method for properly recognizing property owners.
Recognition levels and benefits are defined by the size of
the donated property, but may include "advertisement"
recognition as well as personalized recognition, such as
pavers embedded in the walkway built on the donated
easement, signage, or other recognition as may be
deemed appropriate by the City Manager.
Donations to the City of Southlake under the Sidewalk
Partnership Program are currently tax deductible. Upon
closing the transaction, the City will provide the donor
with a receipt for the gift and a letter opinion from the
Internal Revenue Service (Attachment C) as long as the
deduction remains in effect.
Program Procedure:
First, Council establishes sidewalk and trail segments to be
built during the fiscal year each December. These priorities
form the basis of the program because these are the areas
where easements will be needed and sidewalk construction
is eminent. Once priority segments are approved, needed
easements will be identified.
Information packets will be sent to property owners with a
description of the needed property, a description of the
Resolution No. 09 -071, Authorizing the creation of a Sidewalk Partnership Program
November 24, 2009
needed easement(s), required paperwork for conveyance
and contact information.
If the city does not receive a response from the property
owner after 30 days volunteers may follow -up with the
property owner to promote the program within policy
guidelines.
When the property owner agrees to convey, the City will
handle the paperwork and costs to effect the conveyance.
Once the conveyance is completed, the property owner will
be recognized per the terms of the program and provided
with the necessary paperwork for tax deduction purposes.
Financial
Considerations: The creation of a program to encourage the donation of
property will ultimately decrease the amount of funds
necessary to acquire land for sidewalk and pathway projects.
Strategic Link: This program is linked to the City's strategy through the
strategic corporate objectives of:
• C2 Provide travel convenience within city and region
• C3 Provide attractive and unique spaces for enjoyment of
personal interests
• B2 Collaborate with select partners to implement service
solutions
• B3 Pursue innovative service delivery options
• F4 Maximize return on investments
• L5 Actively promote opportunities for partnerships and
volunteer involvement (individual and group)
Citizen Input/
Board Review: N/A
Legal Review: The City Attorney's office has reviewed and approved the
proposed resolution.
Alternatives: Do not create program
Supporting
Documents: Resolution No. 09 -071 and related attachments
Staff
Recommendation: City Council approval of Resolution No. 09 -071, Authorizing
the creation of a Sidewalk Partnership Program
RESOLUTION NO. 09 -071
A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS, ESTABLISHING A
SIDEWALK PARTNERSHIP PROGRAM; PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City of Southlake has established "Partnerships and
Volunteerism" as a strategic focus area and the City of Southlake Strategy Map includes
initiative L5 to "Actively promote opportunities for partnerships and volunteer
involvement (individual and group) "; and
WHEREAS, the City of Southlake has also established "Mobility" as a strategic
focus area and the City of Southlake Strategy Map includes initiative C2 to "Provide
travel convenience within city and region "; and
WHEREAS, the program will assist in the implementation of the mobility goals
and objectives of the Southlake 2025 Plan by promoting an inter - connected system of
corridors for pedestrians; and
WHEREAS, the City Council of the City of Southlake, Texas is of the opinion that
establishing a partnership program to promote the donation of easements and right -of-
way for the purposes of building priority sidewalk and trail segments would advance the
implementation of the City's Pathways Plan thereby improving mobility throughout the
city; and
WHEREAS, the City of Southlake Council wishes to create a program to provide
private property owners with incentive to donate the land needed to construct sidewalks
and trails;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, TEXAS, THAT:
SECTION 1
The City does hereby establish a sidewalk partnership program to encourage
residential and non - residential property owners to donate the property required to
implement the City of Southlake's Pathways Plan.
SECTION 2
To encourage property owners to participate in the program, the City shall
establish and implement and education and marketing program designed to:
• emphasize the environmental benefits of "walkability" within a community,
• highlight the importance of connectivity between areas within the city:
• neighborhoods and schools
• neighborhoods and parks
• neighborhoods and other areas of interest in the city, and
• underscore the opportunity for being involved in the development of high quality
and desirable facilities in the city.
The ongoing education /marketing program may include (but is not limited to) the
following elements:
a. Print — informational brochures, flyers, newsletter articles and ads, etc.
b. Presentations — Council /board meetings, social clubs
c. Media — coordination with local media outlets, including print and
broadcast
d. Technology options — website, radio, etc.
e. Partnerships — coordinate with HOAs, and other partner groups
f. Sidewalk Partnership Program
SECTION 3
Sidewalk Partnership Program The city has designed a program to provide for
lasting and memorable recognition for donors. Using a variety of methods, the City of
Southlake will memorialize the participation of property owners in the program.
Program Eligibility Property owners who voluntarily convey easement(s) for the
purpose of building pathway segments identified in the City of Southlake's annual
pathway construction priority plan and Capital Improvement Program (CIP) shall be
eligible for the recognition offered through the Sidewalk Partnership Program. The City
of Southlake shall not pursue easements for pathway segments for which there are no
immediate plans for construction or allocated funding.
Property owners who are required to convey needed right -of -way or easements
due to development regulations are not eligible to participate in the program or receive
the benefits thereof.
Property Owner Notification Once the pathway construction priority plan is
adopted by the City Council and funds are allocated for construction, staff shall identify
needed easements for the selected segments. A standard packet of information shall
be mailed to each property owner which shall, at a minimum, include a description of
the Sidewalk Partnership Program and its benefits, a description of the needed
easement, the paperwork to be completed for conveyance, and a contact name at the
City. Attachment A includes a representative sample of the items to be included in the
notification packet.
The packet shall also include a copy of the "Property Owners Bill of Rights" (Attachment
B).
Conveyance. The City of Southlake will cover the cost of conveyance as
appropriate.
Program Benefits. Property owners who donate easements under this program
shall be publicly recognized for their contribution. The City Manager shall develop a
standard operating procedure outlining the method for properly recognizing property
owners. Recognition levels and benefits are defined by the size of the donated
property, but may include "advertisement" recognition as well as personalized
recognition, such as pavers embedded in the walkway built on the donated easement,
signage, or other recognition as may be deemed appropriate by the City Manager.
SECTION 4
Donations to the City of Southlake under the Sidewalk Partnership Program are
currently tax deductible. Upon closing the transaction, the City shall provide the donor
with a receipt for the gift and a letter opinion from the Internal Revenue Service
(Attachment C) as long as the deduction remains in effect.
SECTION 5
If the City of Southlake does not receive a response from the property owner within 30
days of the issuance of the notice, a copy of this notification shall be provided to citizen
volunteers who wish to promote the construction of pathways in the City of Southlake.
These volunteers may then contact the property owner to promote the program in
conformance with guidelines established for the volunteer's activities within the program
standard operating procedure.
SECTION 6
The City Manager shall be responsible for the planning and implementation of
this program and the activities supporting it; however, the City Council shall have final
authority on program benefits.
SECTION 7
This Resolution shall become effective from and after its passage.
PASSED AND APPROVED this the 1 St day of December, 2009.
John Terrell, Mayor
ATTEST:
City Secretary
Resolution No. 09 -071
Attachment A
Standard Notification Packet - Sample
CITY O
SOUTHLAKE
La
Dear Friend,
As the city of Southlake has grown and developed we have emphasized quality of life by working to
create abundant opportunities for learning, shopping, working, and recreating.
But there is still much to do — and the construction of sidewalks is one of our top priorities to improve
the quality of life for our citizens.
Sidewalks provide many benefits to the community such as providing children a safe means to walk to
school and parks, encouraging exercise and providing the benefits of a healthy lifestyle, and providing
citizens an alternative to the automobile to travel to destination points.
The City Council has adopted a sidewalk priority plan, which identifies sidewalk segments to be built
in the short -term. As a property owner along one of the segments, you are in a unique position to
help us get these highly desired sidewalks constructed.
Your donation of an easement for this purpose is tax deductible. We'll provide you with the paperwork
you need to realize this benefit with your donation, and we'll cover the cost of conveying the easement
as well.
Property owners who donate easements will be recognized publicly, and we will "mark" your donation
on the walk, as well so that you can take pride in your donation for years to come.
Additional information is included in this packet for your consideration. We hope you will take the time
to look it over and to consider how meaningful the contribution of an easement for the construction of
a sidewalk segment will be to this city and its residents.
If you want to be a part of the City of Southlake's Sidewalk Partnership Program, simply complete and
return the enclosed form in the envelope provided for your convenience. Or if you have questions,
give Bob Price, Director of Public Works, a call at (817) 748 -8098.
Sincerely,
John Terrell
Mayor
Virginia Muzyka
Mayor Pro Tern
Laura K. Hill
Deputy Mayor Pro Tern
Carolyn Morris Brandon Bledsoe Gregory Jones
Place 2 Place 3 Place 4
Pamela A. Muller
Place 6
CITY OF SOUTHLAKE
RIGHT -OF -WAY DEDICATION INSTRUMENT
STATE OF TEXAS §
COUNTY OF §
For and in consideration of the sum of ($ ) of which
none will be paid in hand by the City of Southlake, Texas, and a land dedication credit of of
($ ) will be given by the City of Southlake. The land
dedication credit will reflect the value of land donated by GRANTOR to the City of Southlake,
for which GRANTOR will not receive any financial compensation. The receipt and sufficiency
of which is hereby acknowledged, and other good and valuable consideration, including the
benefits that will accrue to my property, I, ( "GRANTOR "), of
County, Texas, as the owner of that certain tract of land in
County, Texas depicted by metes and bounds description in Exhibit "A ", attached hereto and
incorporated herein for all purposes of this dedication, and as more particularly described by
drawing as set forth in the "Drawing of Exhibit A ", attached hereto and incorporated herein for
all purposes of this dedication, hereafter the "Subject Surface Tract ", do hereby dedicate the
surface of same to the City of Southlake, Tarrant County, Texas for the use and benefit of the
public as a perpetual right -of -way and easement for the passage and accommodation of
motorized city maintenance and law enforcement vehicles, pedestrian traffic, and the
construction, operation, use, maintenance, inspection, repair, alteration, and replacement of a
paved multi -use pedestrian trail within the boundaries of the right -of -way and easement area.
TO HAVE AND TO HOLD said right -of -way and easement unto the City of Southlake,
its successors and assigns, and GRANTOR hereby binds itself, its successors and assigns to
warrant and forever defend, all and singular, said premises unto the City of Southlake, its
successor and assigns, against every person whomsoever lawfully claiming or attempting to
claim the same or any part thereof.
GRANTOR covenants and agrees that GRANTOR and GRANTOR'S heirs,
representatives, successors and assigns shall at no time erect, place or construct, or cause to be
erected, placed or constructed in, into, upon, over, across or under any easements granted herein
any temporary or permanent structures, and it is further agreed that the City of Southlake shall
have the right to excavate and fill upon said permanent easement, any fences, buildings or other
obstructions as may now be found upon said permanent easement.
It is further intended that the permanent right -of -way and easement on the Subject
Surface Tract herein granted to the City of Southlake shall run with the land and forever be a
right in and to the land belonging to GRANTOR, and GRANTOR'S successors and assigns, and
said grant is expressly excepted from any right of reversion of said premises under any prior
deeds in GRANTOR'S chain of title. The permanent right —of -way and easement rights and
privileges granted therein are exclusive, and GRANTOR covenants that it will not convey any
other easement or conflicting rights within the area covered by the grant to any other person.
ATTACHMENT 1:
Mineral Rights. The City of Southlake covenants and agrees that GRANTOR'S dedication is
limited and restricted to the surface of the Subject Surface Tract and is requested and intended
solely and exclusively for the use and benefit of the public as a perpetual right -of -way and
easement for use as a pedestrian trail and for no other use or purpose, provided, however that
bicycles, city motorized vehicles for maintenance and law enforcement purposes may be
permitted. The City of Southlake covenants and agrees that this instrument does not constitute a
conveyance of any right, title or interest in any oil, gas or other minerals that may now or
hereafter lie under the surface of the Subject Surface Tract and the City of Southlake hereby
disclaims any such right, title or interest.
Removal, Repair or Replacement of Sprinkler Heads and/or Irrigation Lines. The City of
Southlake covenants and agrees that it shall move, repair or replace, as needed, six (6) irrigation
sprinkler heads and corresponding irrigation lines that currently lie within the proposed multi -use
trail such that GRANTOR enjoys and maintains the existing irrigation coverage on
GRANTOR'S remaining property.
Preservation of Trees. In constructing the multi -use pedestrian trail, the City of Southlake agrees
and covenants to reduce the loss of trees and to avoid damage to or destruction of trees to the
greatest extent practicable while GRANTOR acknowledges that root damage may be
unavoidable or unhealthy trees may be encountered. If a healthy tree must be destroyed, the City
of Southlake covenants and agrees to compensate GRANTOR based on the species, age and size
of the damaged or destroyed tree. If the destroyed healthy tree has a trunk caliper diameter
greater than 14 inches, the City of Southlake shall compensate GRANTOR a sum of one
thousand two hundred dollars ($1,200) in hand. Otherwise, the City of Southlake agrees to
compensate GRANTOR a sum of one hundred fifty dollars ($150) in hand for a damaged or
destroyed healthy tree.
Removal of Soil and Sod. GRANTOR agrees that the City of Southlake may utilize a rock
retaining wall to reduce the amount of soil that must be removed. The City of Southlake
covenants and agrees to set aside any removed soil to GRANTOR in a mutually agreeable
location.
IN WITNESS WHEREOF, this dedication instrument is executed this day of
, 2009.
IC
GRANTOR
IC
GRANTOR
ACKNOWLEDGEMENT
THE STATE OF TEXAS,
COUNTY OF
BEFORE ME, the undersigned authority in and for
County, Texas, on this day
personally appeared known to me or proved to
me through (description of identity card or other document)
to be the same person whose name is subscribed to the foregoing instrument and acknowledged
to me that he /she executed the same for the purposes and consideration therein expressed and in
the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of
2009.
NOTARY SEAL
Notary Public, State of Texas
Notary's Name (Printed)
Notary's Commission Expires
CERTIFICATE OF ACCEPTANCE
This is to certify that the interest and real property conveyed by this dedication
instrument the day of , 2009, from
to the CITY OF SOUTHLAKE, has been duly
accepted subject to all terms and conditions contained therein, and the City Council has
consented to recordation of such dedication instrument by its duly authorized officer.
Dated
SEAL Mayor, CITY OF SOUTHLAKE
ATTEST:
City Secretary
AFTER EXECUTION BY
GRANTOR, PLEASE RETURN
ORIGINAL TO:
CITY OF SOUTHLAKE
c/o City Engineer
1400 Main Street, Suite 320
Southlake, TX 76092
Phone: 817 - 748 -8098
Fax: 817- 748 -8077
AFTER RECORDING, PLEASE
RETURN ORIGINAL TO:
CITY OF SOUTHLAKE
c/o City Secretary
1400 Main Street, Suite 270
Southlake, TX 76092
Phone: 817 - 748 -8016
Resolution No. 09 -071
Attachment B
Property Owners Bill of Rights
TEXAS LANDOWNER'S BILL OF RIGHTS
This Bill of Rights applies to any attempt by the government or a private entity to take your
property. The contents of this Bill of Rights are prescribed by the Texas Legislature in Texas
Government Code Sec. 402.031 and Chapter 21 of the Texas Property Code.
You are entitled to receive adequate compensation if your property is taken for a public
use.
2. Your property can only be taken for a public use.
Your property can only be taken by a governmental entity or private entity authorized by
law to do so.
4. The entity that wants to take your property must notify you about its interest in taking
your property.
5. The entity proposing to take your property must provide you with an assessment of the
adequate compensation for your property.
6. The entity proposing to take your property must make a good faith offer to buy the
property before it files a lawsuit to condemn the property.
7. You may hire an appraiser or other professional to determine the value of your property
or to assist you in any condemnation proceeding.
8. You may hire an attorney to negotiate with the condemning entity and to represent you in
any legal proceedings involving the condemnation.
9. Before your property is condemned, you are entitled to a hearing before a court-
appointed panel that includes three special commissioners. This specialized hearing panel
must determine the amount of compensation the condemning entity owes for the taking
of your property. The commissioners must also determine what compensation, if any,
you are entitled to receive for any reduction in value of your remaining property.
10. If you are unsatisfied with the compensation awarded by the special commissioners, or if
you question whether the taking of your property was proper, you have the right to a trial
by a judge or jury. If you are dissatisfied with the trial court's judgment, you may appeal
that decision.
January 31, 2008 Page 1.
CONDEMNATION PROCEDURE
Eminent Domain is the ability of certain entities to take private property for a public use.
Private property can include land and certain improvements that are on that property.
Private property may only be taken by a governmental entity or private entity authorized
by law to do so.
Your property may be taken only for a public use. Eminent domain cannot be used to
take your property for economic development purposes, except for limited exceptions provided
by law.
Your property cannot be taken without adequate compensation. Adequate compensation
includes the market value of the property being taken. It may also include certain damages, if
any, to your remaining property caused by the acquisition itself or by the way the condemning
entity will use the property.
How the Takin,- Process Bezins
The taking of private property by eminent domain must follow certain procedures. First,
the entity that wants to condemn your property must notify you about its interest in acquiring
your property. Second, before a condemning entity begins negotiating with you to acquire your
property, it must send this Landowner's Bill of Rights statement to the last known address of the
person in whose name the property is listed on the most recent tax roll.
Third, the condemning entity must make a good faith offer to purchase the property. The
condemning entity's offer must be based on an investigation and an assessment of adequate
compensation for the property. At the time the offer is made, the governmental condemning
entity must disclose any appraisal reports it used to determine the value of its offer to acquire the
property. You have the right to either accept or rej ect the offer made by the condemning entity.
Condemnation Proceedin ,-s
If you and the condemning entity do not agree on the value of the property being taken,
the entity may begin condemnation proceedings. Condemnation is the legal process for the
taking of private property. It begins with a condemning entity filing a claim for your property in
court. If you live in a county where part of the property being condemned is located, the claim
Januan 31, 2008 Page 2.
must be filed in that county. Otherwise, the claim can be filed in any county where at least part
of the property being condemned is located. The claim must describe the property being
condemned, the intended public use, the name of the landowner, a statement that the landowner
and the condemning entity were unable to agree on the value of the property, and that the
condemning entity provided the landowner with the Landowner's Bill of Rights statement.
Special Commissioners' Hearinm
After the condemning entity files a claim in court, the judge will appoint three
landowners to serve as special commissioners. These special commissioners must live in the
county where the condemnation proceeding is filed, and they must take an oath to assess the
amount of adequate compensation fairly, impartially, and according to the law. The special
commissioners are not authorized to decide whether the condemnation is necessary or if the
public use is proper. After being appointed, the special commissioners must schedule a hearing
at the earliest practical time and place and provide you written notice of that hearing.
You are required to disclose to the governmental condemning entity, at least ten days
before the special commissioners' hearing, any appraisal reports used to determine your opinion
about adequate compensation for the property. You may hire an appraiser or real estate
professional to help your determine the value of your private property. You may also hire an
attorney regarding these proceedings.
At the hearing, the special commissioners will consider evidence on the value of the
property, the damages to remaining property, any value added to the remaining property as a
result of the project, and the uses to be made of the property being taken.
Special Commissioners' Award
After hearing evidence from all interested parties, the special commissioners will
determine the amount of money to be awarded as adequate compensation. You may be
responsible for the costs if the Award is less than or equal to the amount the condemning entity
offered before the condemnation proceeding began. Otherwise, the condemning entity will be
responsible for the costs. The special commissioners will give a written decision to the court
that appointed them. That decision is called the "Award." The Award must be filed with the
court and the court must send written notice of the Award to all parties.
January 31, 2008 Page 3.
After the Award is filed, the condemning entity may take possession of the property
being condemned, even if either party appeals the Award of the special commissioners. To take
possession of the property, the condemning entity must either pay you the amount of the Award
or deposit the amount of the Award into the registry of the court. You have the right to withdraw
the deposited funds from the registry of the court.
Obiection to the Special Commissioners' Award
If either you or the condemning entity is dissatisfied with the amount of the Award, either
party can object to the Award by filing a written statement of objection with the court. If neither
party timely objects to the Award, the court will adopt the Award as the final judgment of the
court. If a party timely objects to the special commissioners' Award, the court will hear the case
in the same manner as other civil cases.
If you object to the Award and ask the court to hear the matter, you have the right to a
trial by judge or jury. The allocation of costs is handled in the same manner as with the special
commissioners' Award. After that trial, either party may appeal any judgment entered by the
court.
Dismissal of the Condemnation Action
A condemning entity may file a motion to dismiss the condemnation proceeding if it
decides it no longer needs your property. If the court grants the motion to dismiss, the case is
over and you are entitled to recover reasonable and necessary fees for attorneys, appraisers,
photographers, and for other expenses incurred to the date of the hearing on the motion to
dismiss.
You may also file a motion to dismiss the condemnation proceeding on the ground that
the condemning entity did not have the right to condemn the property, including a challenge as
to whether the property is being taken for a public use. If the court grants your motion, the court
may award you reasonable and necessary fees for attorneys, appraisers, photographers, and for
other expenses incurred to the date of the hearing or judgment.
January 31, 2008 Page 4
Relocation Costs
If you are displaced from a residence or place of business, you may be entitled to
reimbursement for reasonable expenses incurred while moving personal property from the
residence or relocating the business to a new site. You are not entitled to these relocation costs if
they are recoverable under another law. If you are entitled to these costs, they cannot exceed the
market value of the property being moved and can only be reimbursed for moving distances
within 50 miles.
Reclamation Options
If private property was condemned by a governmental entity, and the purpose for which
the property was acquired is canceled before the 10 anniversary of the date of the acquisition,
you may have the right to seek to repurchase the property for the fair market value of the
property at the time the public use was canceled. This provision does not apply to property
acquired by a county, a municipality, or the Texas Department of Transportation.
Disclaimer
The information in this statement is intended to be a summary of the applicable portions
of Texas state law as required by BB 1495, enacted by the 80 Texas Legislature, Regular
Session. This statement is not legal advice and is not a substitute for legal counsel.
Additional Resources
Further information regarding the procedures, timelines and requirements outlined in this
document can be found in Chapter 21 of the Texas Property Code.
January 31, 2008 Page 5.
Resolution No. 09 -071
Attachment C
Internal Revenue Service Opinion Letter
t Dapwtnent of the Treasury
r" IR
internal Revenue Service
'P.O. Box 2508
Cincinnati OH 45201
Fassss
In reply refer to: 0248667585
July 15, 2009 LTR 4076C EO
75- 1251142 000000 00
00011288
BODC: TE
CITY OF SOUTHLAKE TEX
ACCOUNTS PAYABLE
1400 MAIN ST STE 260
SOUTHLAKE TX 76092 -7642
Federal Identification Number: 75- 1251142
Person to Contact: Pam Skiles
Toll Free Telephone Number: 1- 877 -829 -5500
Dear Taxpayer:
R
JUL 2 0 2009
This responds to your request for information about your federal tax
status. Our records do not specify your federal tax status. However,
the following general information about the tax treatment of state
and local governments and affiliated organizations may be of interest
to you.
GOVERNMENTAL UNITS
Governmental units, such as States and their political subdivisions,
are not generally subject to federal income tax. Political
subdivisions of a State are entities with one or more of the
sovereign powers of the State such as the power to tax. Typically
they include counties or municipalities and their agencies or
departments. Charitable contributions to governmental units are
tax - deductible under section 170(c)(1) of the Internal Revenue Code
if made for a public purpose.
ENTITIES MEETING THE REQUIREMENTS OF SECTION 115(1)
An entity that is not a governmental unit but that performs.an
essential government function may not be subject to federal income
tax, pursuant to Code section 115(1). The income of such entities is
excluded from the definition of gross income as long as the income
(1) is derived from a public utility or the exercise of an essential
government function, and (2) accrues to a State, a political
subdivision of a State, or the District of Columbia. Contributions
made to entities whose income is excluded income under section 115
may not be tax deductible to contributors.
TAX - EXEMPT CHARITABLE ORGANIZATIONS
An organization affiliated with a State, county, or municipal
government may qualify for exemption from federal income tax under
section 501(c)(3) of the Code, if (1) it is not an integral part of
the government, and (2) it does not have governmental powers
inconsistent with exemption (such as the power to tax or to exercise
enforcement or regulatory powers). Note that entities may meet the
requirements of both sections 501(c)(3) and 115 under certain
circumstances. See Revenue Procedure 2003 -12, 2003 -1 C.B. 316.
0248667585
July 15, 2009 LTR 40760 EO
75--1251142 000000 00
00011289
CITY OF SOUTHLAKE TEX
Y.-ACCOUNTS PAYABLE
14 MAIN ST STE -2:60
SOUTHLAKE TX 76092 -7642
Most entities must file a Form 1023, Application for Recognition
of Exemption Under Section 501(c))(3) of the Internal Revenue Code,
to request a determination that the organization is exempt from
federal income tax under 501(c)(3) of the Code and that charitable
contributions are tax deductible to contributors under section
170(c)(2). In addition, private foundations and other persons
sometimes want assurance that their grants or contributions are made
to a governmental unit or a public charity. Generally, grantors and
contributors may rely on the status of governmental units based on
State or local law. Form 1023 and Publication 4220, Applying for
501(c)(3) Tax - Exempt Status, are available online at www.irs.gov /eo.
We hope this general information will be of assistance to you. This
letter, however, does not determine that you have any particular
tax status. If you are unsure of your status as a governmental unit
or state institution whose income is excluded under section 115(1)
you may seek a private letter ruling by following the procedures
specified in Revenue Procedure 2007 -1, 2007 -1 I.R.B. 1 (updated
annually).
If you have any questions, please call us at the telephone number
shown in the heading of this letter.
Sincerely yours,
Michele M. Sullivan, Oper. Mgr.
Accounts Management Operations I,..
E
ra) II S Department of the Treasury
1 Internal Revenue Service
P.O. Box 2508
Cincinnati ON 45201
025156.5B3226.0127.003 1 AB 0.360 532
CITY OF SOUTHLAKE TEX
1-01 X ACCOUNTS PAYABLE
1400 MAIN ST STE 260
SOUTHLAKE TX 76092 -7642
025156
CUT OUT AND RETURN THE VOUCHER AT THE BOTTOM OF THIS PAGE IF YOU ARE MAKING A PAYMENT,
EVEN IF YOU ALSO HAVE AN INQUIRY.
IRS address must appear in the window.
0248667585
BODCD -TE
INTERNAL REVENUE SERVICE
P.O. Box 2508
Cincinnati OH 45201
IJ„IiIJiiiiiiiiiiiilillielilI
Use for payments
Letter Number: LTR4076C
Letter Date 2009 -07 -15
Tax Period 000000
IIIl1111111illflllllllllllllllllllllllllllllll
*751251142*
CITY OF SOUTHLAKE TEX
X ACCOUNTS PAYABLE
1400 MAIN ST STE 260
SOUTHLAKE TX 76092 -7642
751251142 BX CITY 00 2 000000 670 00000000000