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2010-08-17 C E S O E OFFICIAL ECOD SOJJ THLAKE XA REGULAR CITY COUNCIL MEETING MINUTES: AUGUST 17, 2010 LOCATION: 1400 Main Street, Southlake, Texas 76092 City Council Chambers CITY COUNCIL PRESENT: Mayor John Terrell, Deputy Mayor Pro Tem Brandon Bledsoe, and Councilmembers Carolyn Morris, Pamela A. Muller, Jeff Wang and Al Zito. CITY COUNCIL ABSENT: Mayor Pro Tem Laura K. Hill. STAFF PRESENT: City Manager Shana Yelverton, Assistant City Manager / Director of Public Safety Jim Blagg, Assistant City Manager Ben Thatcher, Assistant to the City Manager Alison Ortowski, Community Relations Officer Pilar Schank, Director of Community Services Chris Tribble, Deputy Director of Community Services Kerry McGeath, Recreation Superintendent Steve Moore, Assistant to the Director Candice Sanders, Director of Economic Development Greg Last, Director of Finance Sharen Jackson, Assistant Director of Finance Sean Leonard, Director of Human Resources Stacey Black, Director of Information Technology Dale Dean, Information Technology Technician Eric Lusk, Director of Planning and Development Services Ken Baker, Planner II Clayton Comstock, Planner II Richard Schell, Chief of Fire Services Mike Starr, Chief of Police Services Robert Finn, Deputy Director of Public Works Gordon Mayer, Operations Manager Chuck Kendrick, Civil Engineer Steve Anderson, Civil Engineer Michelle McCullough, City Attorney Tim Sralla, and City Secretary Lori Payne. WORK SESSION: Agenda Item No. 1. Call to order. The Work Session was called to order by Mayor Terrell at 4:38 p.m. Agenda Item No. 2. Invocation. Clayton Reed gave the invocation. Mayor Terrell led the pledge of allegiance. Councilmember Morris thanked Pastor Reed and Southlake Baptist Church for organizing the August 28, 2010 clean up at Bob Jones Nature Center through a newly- organized group known as S.W.A.T. (Southlake Working As a Team). Agenda Item No. 3. Multipurpose Facility Feasibility Study Oversight Committee Workshop. Director Tribble introduced this item. Steve Blackburn and Ken Berendt of Barker Rinker Seacat Architecture presented the proposed plans for the existing Gateway Church site and a potential green field site and answered Council's questions. Council discussed the proposed plans and other options and asked questions of staff and the presenters. REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 1 of 15 Agenda Item No. 4. Discuss all items on tonight's meeting agenda. No action was taken during the Work Session and each item was considered during the Regular Session. Council reviewed the items on the Consent Agenda. REGULAR SESSION: Agenda Item No. 1. CaII to order. The Regular Session of the City Council was called to order by Mayor Terrell at 6:37 p.m. Agenda Item No. 2A. Executive Session. Mayor Terrell announced City Council would be going into Executive Session pursuant to the Texas Government Code, Section 551.071, consultation with attorney; Section 551.072, deliberation regarding real property; Section 551.074 deliberation regarding personnel matters; and Section 551.087, deliberation regarding economic development negotiations. City Council adjourned for Executive Session at 6:37 p.m. Executive Session began at 6:55 p.m. and ended at 7:20 p.m. Agenda Item No. 2B. Reconvene. Mayor Terrell reconvened the regular meeting at 7:35 p.m. and asked if any action was necessary from Executive Session. No action was necessary. Agenda Item No. 3A1. Mayor's Report - Update of upcoming meetinqs and events. Mayor Terrell announced upcoming meetings and events. Agenda Item No. 3B. City Manager's Report. A report was not given. CONSENT AGENDA: Consent Agenda items are considered to be routine by the City Council and are enacted with one motion. The Mayor read the Consent Agenda items. Agenda Item No. 4A. Approve minutes from the July 27, 2010 special City Council meeting; the August 2, 2010 Joint City Council, Parks and Recreation Board, and Southlake Parks Development Corporation meeting; the August 3, 2010 regular City Council meeting; and the August 4, 2010 Joint City Council and Planning and Zoning Commission work session. The minutes were approved as presented. Agenda Item No. 4B. Approve the 2010 Facilities Utilization Agreement with Dragon Youth Football Association. Director Tribble answered questions on this item during the Work Session. Agenda Item No. 4C. Resolution No. 10 -045, Name a successor trustee for the City of Southlake Insurance Trust. A presentation was not made on this item. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 2 of 15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, NAMING A SUCCESSOR TRUSTEE FOR THE CITY OF SOUTHLAKE INSURANCE TRUST. Agenda Item No. 4D. Approve agreement between the City of Southlake and Carroll Independent School District for www.MySouthlakeNews.com, a joint -use digital newsletter website. A presentation was not made on this item. Agenda Item No. 4E. Approve the contract with McCreary, Veselka, Bragg & Allen, P.C. to provide collection services for the City of Southlake Municipal Court. A presentation was not made on this item. Agenda Item No. 4F. ZA10 -044, Plat Revision for Lot 1, Block 1, Carroll Senior High School Addition, being a re -plat of property currently described as Lot 1R, Block 1R, Carroll High School Addition, and being located at 1501 West Southlake Boulevard. Current Zoning: S -P -1 Detailed Site Plan District. SPIN Neighborhood #10. A presentation was not made on this item. Agenda Item No. 4G. Consider SV10 -016, Variance to the Conditional Sign Permit for the Shops of Southlake for Mathnasium located at 1251 East Southlake Boulevard, Suite 305. A presentation was not made on this item. Agenda Item No. 4H. This item was intentionally left blank. Agenda Item No. 41. Approve an Interlocal Agreement with Carroll Independent School District for construction of westbound lanes of Kirkwood Boulevard adjacent to the new Carroll Middle School located at 1800 East Kirkwood Boulevard and authorizing city participation in the amount of $126,441. Deputy Director Mayer answered questions on this item during the work session. Agenda Item No. 4J. Approve a Commercial Developer Agreement with Gateway Church for construction of westbound lanes of Kirkwood Boulevard adjacent to the new Carroll Middle School located at 1800 East Kirkwood Boulevard. Deputy Director Mayer answered questions on this item during the work session. City Council added agenda items 8A and 8B to the Consent Agenda for approval. Agenda Item No. 8A. Resolution No. 10 -014, Approve the terms and conditions of a program to promote economic development and stimulate business and commercial activity in the City; authorize the Mayor to execute an agreement with Hines Southlake Land Limited Partnership, a Texas Limited Partnership, for such purposes; and provide an effective date. A presentation was not made on this item. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 3 of 15 A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS, APPROVING THE TERMS AND CONDITIONS OF A PROGRAM TO PROMOTE ECONOMIC DEVELOPMENT AND STIMULATE BUSINESS AND COMMERCIAL ACTIVITY IN THE CITY; AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH HINES SOUTHLAKE LAND LIMITED PARTNERSHIP, A TEXAS LIMITED PARTNERSHIP, FOR SUCH PURPOSES; AND PROVIDING AN EFFECTIVE DATE. Agenda Item No. 8B. Approve a residential developer's agreement for Carillon, Phase 1A, residential development located at the northeast corner of North White Chapel Boulevard and State Highway 114 with Hines Southlake Land, L.P. A presentation was not made on this item. Motion was made to approve consent agenda items 4A; 4B; 4C; 4D; 4E; 4F; 4G; 41; 4J; 8A directing staff to revise the agreement to include acceptance of 46.48 acres of park land including the associated reductions in area dedications for each park and to include a new obligation for Hines to maintain all medians on Kirkwood Boulevard; and 8B. Motion: Bledsoe Second: Morris Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito Nays: None Approved: 6 -0 REGULAR AGENDA: Agenda Item No. 5. Public Forum. Mayor Terrell opened the public forum. No one spoke. Mayor Terrell closed the public forum. Agenda Item No. 6A. ZA10 -045, Site Plan for shade structures at Carroll Elementary school on property being described as Tract 3A, Samuel H. Thompson Survey, Abstract No. 1504 and being located at 1705 West Continental Boulevard. Current Zoning: CS Community Service District. SPIN Neighborhood #10. Planner Schell presented this item to Council. Applicant Kay Gaskill, 1700 Elks Lane, Southlake, Texas with the PTO at Carroll Elementary School answered Council's questions. No one spoke during the public hearing. Motion was made to approve ZA10 -045, Site Plan for shade structures at Carroll Elementary School. Motion: Bledsoe Second: Morris Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito Nays: None Approved: 6 -0 REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 4 of 15 • Agenda Item No. 6B. Resolution No. 10 -046, (ZA10 -030), Specific Use Permit for Spanish Garden School being a request to allow a children's nursery, child day care center and kindergarten on property being described as Lot 1R1, Block 1, Lonesome Dove Baptist Church Addition and being located at 2380 Lonesome Dove Avenue. Current Zoning: CS Community Service District. SPIN Neighborhood #2. Planner Schell presented this item and answered Council's questions. Applicant Maryanne Ruiez, 2380 Lonesome Dove Avenue, Southlake, Texas introduced this item to Council and answered questions. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, GRANTING A SPECIFIC USE PERMIT TO ALLOW A CHILDREN'S NURSERY, CHILD DAY CARE CENTER AND KINDERGARTEN ON PROPERTY WITHIN THE CITY OF SOUTHLAKE, TEXAS, LOCATED AT 2380 LONESOME DOVE AVENUE, BEING LEGALLY DESCRIBED AS LOT 1R1, BLOCK 1, LONESOME DOVE BAPTIST CHURCH ADDITION, MORE FULLY AND COMPLETELY DESCRIBED IN EXHIBIT "A ", AND AS DEPICTED ON THE APPROVED SITE PLAN ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT "B" AND PROVIDING AN EFFECTIVE DATE. No one spoke during the public hearing. Motion was made to approve Resolution No. 10 -046, (ZA10 -030), Specific Use Permit for Spanish Garden School. Motion: Bledsoe Second: Muller Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito Nays: None Approved: 6 -0 Agenda Item No. 7A. Ordinance No. 480 -549b (ZA10 -041), 1 Reading, Zoning Change and Site Plan for "Tower Plaza" (fka "Invitation Park ") on property being described as Tracts 3B, 3B01 and a portion of Tract 3D01, Obediah W. Knight Survey, Abstract No. 899 and being located at 821, 829 and 835 East Southlake Boulevard. Current Zoning: S -P -1 Detailed Site Plan District. Requested Zoning: S -P -1 Detailed Site Plan District. SPIN Neighborhood #9. Planner Comstock presented this item and answered Council's questions. Applicant Curtis Young, 1130 North Carroll Avenue, Southlake, Texas made a presentation and answered Council's questions. Mayor Terrell allowed the public to speak. Ann Davis, 308 Foxborough, Southlake, Texas spoke in opposition to this item. Tom Matthews represented adjacent property owner, Zena Rucker, and commented on the proposed plan. REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 5 of 15 City Attorney Sralla commented on Council's authority pertaining to the funding comments made earlier. Mayor Terrell announced City Council would be going into Executive Session pursuant to the Texas Government Code, Section 551.071, consultation with attorney. City Council adjourned for Executive Session at 8:53 p.m. Executive Session began at 8:55 p.m. and ended at 9:12 p.m. Mayor Terrell reconvened the meeting at 9:19 p.m. City Attorney Sralla commented on Council's discretion in consideration of zoning matters. Council continued their discussion of this request. Motion was made to approve Ordinance No. 480 -549b (ZA10 -041), 1 Reading, Zoning Change and Site Plan for "Tower Plaza" (fka "Invitation Park ") approving the driveway stacking variances for Driveways `A,' `B,' and `C'; noting the applicant will complete the driveway on the west side of the property to the south of Building 3 for access to the adjacent parcel; noting there will not be a heliport related to the project for the hospital facility otherwise known as Building 2; as soon as the access to F.M. 1709 is relocated further to the east, the applicant will replace the landscaping similar to what will be in place in front of Buildings 1 and 3; before a Certificate of Occupancy will be issued for any buildings within the project, the applicant will complete all horizontal improvements noted on the site plan including but not limited to the linear park with the exception of specific landscaping areas around Buildings 1 and 3 which will be completed upon construction of those buildings; stipulating that the use of "TV, radio or recording studio" will not be a permitted use; requiring that any retail banking establishment not include any drive - through facility; noting that the dumpster shown to the south of Building 3 will be relocated similarly as to the dumpster position shown to the south of Building 1; regarding the developer's responsibility to complete their portion of Zena Rucker Road, the roadway will be completed in accordance to the City's design standards which may include a future median; and subject to Site Plan Review Summary No. 4, dated August 10, 2010. Motion: Bledsoe Second: The motion died due to lack of a second. Motion was made to deny Ordinance No. 480 -549b (ZA10 -041), 1 Reading, Zoning Change and Site Plan for "Tower Plaza" (fka "Invitation Park "). Motion: Zito Second: Morris Ayes: Morris, Muller, Wang, Zito Nays: Bledsoe, Terrell REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 6 of 15 Approved: 4 -2 (to deny) Agenda Item No. 7B. Ordinance No. 480 -598 (ZA10 -039), 1 Reading, Zoning Change and Concept Plan for Southlake Montessori on property being legally described as Lot 4, Block 1, Pecan Creek Addition and being located at 731 Zena Rucker Road. Current Zoning: 0-1 Office Zoning District. Requested Zoning: S -P -2 Generalized Site Plan Zoning District. SPIN Neighborhood #9. Planner Comstock presented this item to Council. Applicant's representative Skip Blake of Blake Architects, 1202 South White Chapel Boulevard, Southlake, Texas; owner of Southlake Montessori, Mazhar Zia, 3904 Oak Meadow, Plano, Texas; and property owner Cary Clarke, 1212 Province Lane, Southlake, Texas answered Council's questions. Motion was made to approve Ordinance No. 480 -598 (ZA10 -039), 1 Reading, Zoning Change and Concept Plan for Southlake Montessori approving the variance for driveway stacking depth; requiring a six -foot wrought iron fence around the detention pond; requiring an aeration feature or other type of water fountain located in the detention pond and requiring the applicant to maintain the pond to prevent silt build -up; noting applicant's willingness to work with Carroll ISD and city staff to relocate the existing western driveway easement to the Carroll ISD property known as Rockenbaugh Elementary to shorten that easement and provide access to the school property; noting Council's expectation that the right two buildings will be combined but that the overall square footage will not change; not approving any reduction in parking; and subject to Concept Plan Review Summary No. 3, dated August 9, 2010. Motion: Bledsoe Second: Muller Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito Nays: None Approved: 6 -0 Agenda Item No. 7C. Ordinance No. 480 -533a (ZA10 -042), 1 Reading, Zoning Change and Site Plan for School of Rock on property being described as Lot 14, J.G. Allen No. 18 Addition and being located at 3220 West Southlake Boulevard. Current Zoning: S -P- 1 Detailed Site Plan District. Requested Zoning: S -P -1 Detailed Site Plan District. SPIN Neighborhood #11. Planner Schell presented this item to Council. Applicant Dean Tarpley, 6921 Delrose Drive, Dallas, Texas and property owner Taran Nandha, 1100 Taylor Street, Southlake, Texas answered Council's questions. Mayor Terrell allowed the public to speak on this item. Connor Musch, 235 Chesapeake Lane, Southlake, Texas spoke in opposition. Fred Rayner, 2807 Tyler Street, Southlake, Texas spoke in opposition. Michael Mroz, 124 Weston Lane, Southlake, Texas spoke in opposition. REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 7 of 15 Mayor Terrell read through comment cards of those that wish to express their opposition but did not wish to speak: Niki and Alex Kennedy, 604 Bordeaux Drive, Southlake, Texas; Annie Ballew, 1107 Longford Circle, Southlake, Texas; Cory Helms, 985 North Carroll Avenue, Southlake, Texas; Darren A. Caperna, 985 North Carroll Avenue, Southlake, Texas; Maddy and Kim Rayner, 2807 Tyler Street, Southlake, Texas; and, Sonya Torti, 1207 Westmont Drive, Southlake, Texas. Kim Sahonne, 1734 Tuscan Ridge Circle, Southlake, Texas spoke in opposition. Nathaniel Johnson, 512 Cumberland Drive, Hurst, Texas, spoke in opposition. Council continued their discussion of this item. Motion was made to approve Ordinance No. 480 -533a (ZA10 -042), 1 Reading, Zoning Change and Site Plan for School of Rock noting the hours of operation to be until 9:00 p.m. at the latest, seven days a week; requiring the applicant's investigation of compliance with the existing sign ordinance for the monument sign that is existing on the eastern property boundary and complying with said sign ordinance going forward and /or removing the sign; restricting the use of the property to the current proposed use plus "0-1" uses; removing the parking in the front of the building while maintaining handicapped access standards pursuant to the State requirements; requiring a landscaping and irrigation plan in the front of the building in accordance with existing ordinances and showing the proposed future sidewalk along F.M. 1709 and how that will work with the existing site plan; requiring further clarification and alternatives of paint, colors and materials specific with the elevations of the building at second reading; requiring the applicant to comply with noise ordinance and requiring him to work with the neighbors to reduce any complaints regarding noise; and subject to Site Plan Review Summary No. 2, dated August 10, 2010. Motion: Bledsoe Second: Muller Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito Nays: None Approved: 6 -0 Mayor Terrell called for a break at 11:30 p.m. and reconvened the meeting at 11:42 p.m. Agenda Item No. 7D. Ordinance No. 979, 1 Reading, Southlake 2030 West Sector Land Use Plan. There was no staff presentation on this item. Motion was made to approve Ordinance No. 979, 1 Reading, Southlake 2030 West Sector Land Use Plan. Motion: Bledsoe REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 8 of 15 Second: Muller Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito Nays: None Approved: 6 -0 Mayor Terrell announced Council would consider the Board and Commission appointments at the end of the meeting. Agenda Item No. 9A. Consider SV10 -012, Variance to Sign Ordinance No. 704, as amended, for All -Star Orthopaedics and Therapy located at 910 East Southlake Boulevard, Suite 155. Planner Comstock presented this item to Council. Applicant John Pichler from Identitec answered Council's questions. Motion was made to approve SV10 -012, Variance to Sign Ordinance No. 704, as amended, for All -Star Orthopaedics and Therapy noting that the fonts will be the same as the western building. Motion: Bledsoe Second: Muller Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito Nays: None Approved: 6 -0 Agenda Item No. 10A. Discuss recommended Sign Ordinance revisions (electronic and manual readerboard). A presentation was not made on this item. Mayor Terrell stated that staff has a very good idea of Council's direction on this item and no further discussion is needed. No action was taken on this item. Agenda Item No. 10B. Discuss - FY2011 proposed budget overview. Council agreed that they need to have a dedicated meeting on the budget. No action was taken on this item. Mayor Terrell allowed a member of the public to speak and reopened the Public Forum. John Moore discussed a new Alzheimer's treatment facility that wants to come to Southlake and stated he would like to meet with City Council members to discuss it further. Mayor Terrell closed the public hearing. Mayor Terrell announced City Council would be going into Executive Session pursuant to the Texas Government Code, Section 551.074 deliberation regarding personnel matters. City Council adjourned for Executive Session at 12:09 a.m. Executive Session began at 12:15 a.m. and ended at 12:37 a.m. Agenda Item No. 8C. Resolution No. 10 -032, Appoint members to the Building Board of Appeals. Council appointed David Carpenter to Place 2 with a term ending May 2012; REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 9 of 15 Dustin Andrews to Place 3 with a term ending May 2011; Ken Horne to Place 4 with a term ending May 2012; Terrance Henderson to Place 5 with a term ending May 2011; and Wayne Luzius to Place 6 with a term ending May 2012. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, APPOINTING MEMBERS TO THE BUILDING BOARD OF APPEALS; PROVIDING FOR THE TERMS; PROVIDING FOR QUALIFICATIONS OF MEMBERS IN ACCORDANCE WITH ORDINANCE NO. 622; AND PROVIDING AN EFFECTIVE DATE. Motion was made to appoint the following members to the Building Board of Appeals: David Carpenter to Place 2 with a term ending May 2012; Dustin Andrews to Place 3 with a term ending May 2011; Ken Horne to Place 4 with a term ending May 2012; Terrance Henderson to Place 5 with a term ending May 2011; and Wayne Luzius to Place 6 with a term ending May 2012. Motion: Bledsoe Second: Muller Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito Nays: None Approved: 6 -0 Agenda Item No. 8D. Resolution No. 10 -033, Appoint members to the Joint Utilization Committee. Council appointed Frances Scharli to Place 4, City Council At -Large Appointee with a term ending May 2012; Pamela A. Muller to Place 5, City Council Representative with a term ending May 2011; and Laura K. Hill to Place 6, City Council Representative with a term ending May 2012. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, APPOINTING MEMBERS TO THE JOINT UTILIZATION COMMITTEE; AND PROVIDING AN EFFECTIVE DATE. Motion was made to appoint the following members to the Joint Utilization Committee: Frances Scharli to Place 4, City Council At -Large Appointee with a term ending May 2012; Pamela A. Muller to Place 5, City Council Representative with a term ending May 2011; and Laura K. Hill to Place 6, City Council Representative with a term ending May 2012. Motion: Bledsoe Second: Morris Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito Nays: None REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 10 of 15 Approved: 6 -0 Agenda Item No. 8E. Resolution No. 10 -034, Appoint members to the Library Board. Council appointed Lori Burr to Place 1 with a term ending May 2012; Cheri Ross to Place 2 with a term ending May 2012; and Brenda Flores to Place 3 with a term ending May 2012. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, PROVIDING FOR THE APPOINTMENT OF MEMBERS TO SERVE ON THE LIBRARY BOARD AND PROVIDING AN EFFECTIVE DATE. Motion was made to appoint the following members to the Library Board: Lori Burr to Place 1 with a term ending May 2012; Cheri Ross to Place 2 with a term ending May 2012; and Brenda Flores to Place 3 with a term ending May 2012. Motion: Bledsoe Second: Morris Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito Nays: None Approved: 6 -0 Agenda Item No. 8F. Resolution No. 10 -037, Appoint members to the Senior Advisory Committee. Council appointed Jean Boland to Place 1 with a term ending May 2012; Patricia Burnett to Place 2 with a term ending May 2012; Charles Boyd to Place 3 with a term ending May 2012; Nancy Sporn to Place 5 with a term ending May 2012; Richard McCauley to Place 6 with a term ending May 2012; Jeanette Gossage to Place 8, Alternate 1 with a term ending May 2011; and Beverly Blake to Place 9, Alternate 2 with a term ending May 2012. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, APPOINTING MEMBERS TO THE SENIOR ADVISORY COMMISSION AND PROVIDING AN EFFECTIVE DATE. Motion was made to appoint the following members to the Senior Advisory Committee: Jean Boland to Place 1 with a term ending May 2012; Patricia Burnett to Place 2 with a term ending May 2012; Charles Boyd to Place 3 with a term ending May 2012; Nancy Sporn to Place 5 with a term ending May 2012; Richard McCauley to Place 6 with a term ending May 2012; Jeanette Gossage to Place 8, Alternate 1 with a term ending May 2011; and Beverly Blake to Place 9, Alternate 2 with a term ending May 2012. Motion: Bledsoe Second: Muller Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 11 of 15 Nays: None Approved: 6 -0 Agenda Item No. 8G. Resolution No. 10 -038, Appoint members to the Southlake Arts Council. Council appointed Merlene Ingraham to Place 2 with a term ending May 2012; Terri Messing to Place 4 with a term ending May 2012; Leslie Ann Walker to Place 8, Alternate 1 with a term ending May 2011; Carol Knox to Place 9, Alternate 2 with a term ending May 2012. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, APPOINTING MEMBERS TO THE SOUTHLAKE ARTS COUNCIL; AND PROVIDING AN EFFECTIVE DATE. Motion was made to appoint the following members to the Southlake Arts Council: Merlene Ingraham to Place 2 with a term ending May 2012; Terri Messing to Place 4 with a term ending May 2012; Leslie Ann Walker to Place 8, Alternate 1 with a term ending May 2011; and Carol Knox to Place 9, Alternate 2 with a term ending May 2012. Motion: Bledsoe Second: Morris Ayes: Bledsoe, Morris, Muller, Terrell, Wang, Zito Nays: None Approved: 6 -0 Agenda Item No. 8H. Resolution No. 10 -039, Appoint members to the Southlake Business Council. Council appointed Terrance Henderson (Place 1, Bank/Financial), Frank Bliss (Place 2, Commercial Developer), Chris Schrobilgen (Place 6, Marketing /Public Relations), Mack Zimmerman (Place 8, Professional Services), Tommy Pennington (Place 11, Realtor /Residential Developer), Tim Moorehead (Place 13, Retail /Franchise), Santhosh Gandhari (Place 14, Technology /Hi- Tech), Steve Barry (Place 15, Corporate /National), John Finlayson (Place 18, Restaurant/Local) with terms to expire in May 2012. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, APPOINTING MEMBERS TO THE SOUTHLAKE BUSINESS COUNCIL AND PROVIDING AN EFFECTIVE DATE. Motion was made to appoint the following members to the Southlake Business Council: Terrance Henderson (Place 1, Bank/Financial), Frank Bliss (Place 2, Commercial Developer), Chris Schrobilgen (Place 6, Marketing /Public Relations), Mack Zimmerman (Place 8, Professional Services), Tommy Pennington (Place 11, Realtor /Residential REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 12 of 15 • Developer), Tim Moorehead (Place 13, Retail /Franchise), Santhosh Gandhari (Place 14, Technology /Hi- Tech), Steve Barry (Place 15, Corporate /National), and John Finlayson (Place 18, Restaurant/Local) with terms to expire in May 2012. Motion: Bledsoe Second: Muller Ayes: Bledsoe, Morris, Muller, Wang, Zito, Terrell Nays: None Approved: 6 -0 Agenda Item No. 81. Resolution No. 10 -040, Appoint members to the Southlake Parks Development Corporation. Council appointed Al Zito as City Council Representative with a term ending May 2012; Pamela A. Muller as City Council Representative with a term ending May 2012; John Slocum as Parks Board Representative with a term ending May 2012; and Jeff Wang as City Council Representative with a term ending May 2011. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS, APPOINTING MEMBERS TO THE SOUTHLAKE PARKS DEVELOPMENT CORPORATION; AND PROVIDING AN EFFECTIVE DATE. Motion was made to appoint the following members to the Southlake Parks Development Corporation: Al Zito as City Council Representative with a term ending May 2012; Pamela A. Muller as City Council Representative with a term ending May 2012; John Slocum as Parks Board Representative with a term ending May 2012; and Jeff Wang as City Council Representative with a term ending May 2011. Motion: Bledsoe Second: Muller Ayes: Bledsoe, Morris, Muller, Wang, Zito, Terrell Nays: None Approved: 6 -0 Agenda Item No. 8J. Resolution No. 10 -041, Appoint representatives to the Standing Committee of the Southlake Program for the Involvement of Neighborhoods (SPIN). Council appointed David Alexander to SPIN #2 with a term ending May 2012; Lou Hillman to SPIN #4 with a term ending May 2012; Mike Terry to SPIN #6 with a term ending May 2012; Pattie Minder to SPIN #8 with a term ending May 2012; Ron Evans to SPIN #10 with a term ending May 2012; David Baltimore as the Senior Representative with a term ending May 2012; Carey Benson to SPIN #1 Alternate position with a term ending May 2011; and Michael Forman to SPIN #10 Alternate position with a term ending May 2012. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 13 of 15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, PROVIDING FOR THE APPOINTMENT OF REPRESENTATIVES TO THE STANDING COMMITTEE OF THE SOUTHLAKE PROGRAM FOR THE INVOLVEMENT OF NEIGHBORHOODS (SPIN); AND PROVIDING AN EFFECTIVE DATE. Motion was made to appoint the following members to the Standing Committee of the Southlake Program for the Involvement of Neighborhoods: David Alexander to SPIN #2 with a term ending May 2012; Lou Hillman to SPIN #4 with a term ending May 2012; Mike Terry to SPIN #6 with a term ending May 2012; Pattie Minder to SPIN #8 with a term ending May 2012; Ron Evans to SPIN #10 with a term ending May 2012; David Baltimore as the Senior Representative with a term ending May 2012; Carey Benson to SPIN #1 Alternate position with a term ending May 2011; and Michael Forman to SPIN #10 Alternate position with a term ending May 2012. Motion: Bledsoe Second: Muller Ayes: Bledsoe, Morris, Muller, Wang, Zito, Terrell Nays: None Approved: 6 -0 Agenda Item No. 8K. Resolution No. 10 -047, Appoint a member to the Zoning Board of Adjustment and appoint a Chairman and Vice - Chairman. Council appointed Lisa Amend to Place 6, Alternate 1 with a term ending May 2011 and Shawn McCaskill to Place 8, Alternate 3 with a term ending May 2011. City Council also named D. Todd Parrish as Chairman and Laird Fairchild as Vice - Chairman. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, APPOINTING A MEMBER TO FILL UNEXPIRED POSITION ON THE ZONING BOARD OF ADJUSTMENT; NAMING A CHAIRMAN AND A VICE - CHAIRMAN; AND PROVIDING AN EFFECTIVE DATE. Motion was made to appoint the following members to the Zoning Board of Adjustment: Lisa Amend to Place 6, Alternate 1 with a term ending May 2011 and Shawn McCaskill to Place 8, Alternate 3 with a term ending May 2011 and also naming D. Todd Parrish as Chairman and Laird Fairchild as Vice - Chairman. Motion: Bledsoe Second: Muller Ayes: Bledsoe, Morris, Muller, Wang, Zito, Terrell Nays: None Approved: 6 -0 REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 14 of 15 Agenda Item No. 11. Meeting adjourned. Mayor Terrell adjourned the meeting at 12:37 a.m. *An audio recording of this meeting will be permanently retained in the City Secretary's Office. a— dig te 11 612...... John Terre Mayor ATTEST: �p s I Y • • A 4 o + A ' • C Lori Payne ° v ^ �� � '' r. City Secretary s • ••` • ®....•0• ,� REGULAR CITY COUNCIL MEETING MINUTES, AUGUST 17, 2010 Page 15 of 15 lecewUeJ- I„ Davi s a- --fit' g-( 2-1 o p THE DAILY NEWSPAPER OF PUBLIC FINANCE exkl-r C-Lulict Pi" Debt Service Fund Vanishes in Texas Wednesday, August 11, 2010 By Richard Williamson DALLAS Bondholders are trying to find out what happened to a $200,000 debt service reserve fund discovered missing when a north Texas issuer defaulted on $4 million of bonds used to purchase three retirement facilities. The underwriter on the 2008 deal, J.P. Turner ft Co., claims that the Bank of Texas, which was the trustee, breached its fiduciary duty by failing to set up the debt service reserve fund for the Tarrant County Cultural Education Facilities Finance Corp.'s 2008B subordinate -lien bonds. The bank denied it was at fault through its parent company, BOK Financial Corp. Bank of Oklahoma. "Bank of Texas does not have the funds in question," said Jesse Boudiette, spokeswoman for BOK. "The bank handled the funds as directed by the issuer and underwriter and their respective counsel who, thus far, have declined to assume their respective responsibilities in the matter." Philadelphia -based J.P. Turner has written letters to the U.S. comptroller of the currency and others in an attempt to resolve the issue. "Investors relied on this reserve fund as a condition of their willingness to purchase the bonds," James Friar, J.P. Turner vice president for public finance, wrote in the April 22 letter. "The failure by the trustee to establish the DSRF is a material fact of which investors are now very aware of and very upset about." One bondholder, Bernard Miskiv of Kissimmee, Fla., described the missing reserve fund as "stolen." He said the problem came to his attention when the borrower failed to make a scheduled $8,000 interest payment in September 2009 on his $200,000 of bonds. Miskiv began contacting state and federal investigators in Texas and Oklahoma, including the attorneys general for the two states, the Securities and Exchange Commission, the Internal Revenue Service, and the comptroller of the currency. He has spent months writing letters and making phone calls. So far, Miskiv said, the attorneys general and state bank regulators have told him they do not regulate the Bank of Texas because it is federally chartered. And none of the federal agencies has acknowledged that the matter is under investigation. "As far as I'm concerned, it's a stolen $200,000," Miskiv said. "The bank made a mistake. The bank has to get the money back." The unrated Series B bonds were issued along with $23.9 million of Series A bonds with triple -A ratings insured by the U.S. Housing and Urban Development Department. The most recent default on Series B came in February with a missed interest payment. Trading at less than 35 cents on the dollar, the bonds bearing an 8% coupon maturing in 2028 had yields of 23.791 The borrower, WGH Heritage Inc., said revenues fell short because of changes in Texas policy for Medicare payments that reduced headcounts at the three assisted living facilities. Doug Sweeney, president of the nonprofit WGH Heritage in Fort Worth, said that Bank of Texas received the money at closing on the unrated bonds and forwarded it to mortgage lender Capmark Finance Inc., which is no longer in business. "I brought this to everyone's attention in March of '09, and so far nothing's been done," Sweeney said. The funds were forwarded from the Bank of Texas to the title company, but there wasn't enough left over afterward to establish the reserve fund, according to a Feb. 14 e-mail that Miskiv received from Frederick Dorwart, general counsel for the Bank of Texas. "The reserve funds may have funded the March 2009 payment on the Series B bonds leaving only approximately $60,000 available for payment of the September 2009 interest payment," Dorwart's e-mail said. "To the extent that Bank of Texas is responsible for your failure to receive interest on your bonds Bank of Texas will honor that responsibility. It is not at all clear at this point of the extent of that responsibility, if any, but our investigation is continuing." In a reply to Dorwart, underwriter's counsel Jorge Albala of Kutak Rock disputed that there were any instructions to forward money from the reserve fund to the tender. "At the closing in August 2008, I was unaware of any such instruction and personally would have objected to funds designated for use as a reserve for the B bonds to have been transferred to the loan servicer," Albala wrote. In an Aug. 4 letter to Friar, attorney C. Harold Brown, who was issuer's counsel at Brown Pruitt Peterson it Wambsganss PC, said: "We are aware of the controversy and are of the opinion that the issues need to be resolved by the trustee and the underwriter. Resolving those issues are not our responsibility." Copy of Letter 2010 The Bond Buyer and SourceMedia Inc., All rights reserved. Use, duplication, or sale of this service, or data contained herein, except as described in the subscription agreement, is strictly prohibited. Trademarks page. Client Services 1- 800 221 -1809, 8:30am 5:30pm, ET For information regarding Reprint Services please visit: http: /license.icopyright. net /3.7745 ?icx_id= 20090817FNNRUTWS Mayor Terrell I appreciate the opportunity that Marco I had to meet with you the other day regarding our Southlake project. As per your request, please find below a summary of the bond program which we will be using to fund the project. 1) Description of Bonds. The bonds are municipal revenue bonds issued by the county (as described below) and following a lengthy application qualification process, must be approved by a majority of the County Commissioners of Tarrant County. While they are specifically designed for use in Tarrant County, they can be used in other counties pending approval of BOTH counties. 2) Restrictions placed on bonds. These bonds are fully approved and are issued by Tarrant County under the Tarrant County Cultural Arts Corp for the funding of approved medical and cultural arts projects. 3) T pes of Obligors. Technically, the bonds can be issued to either "for profit" or "not for profit" companies. In today's challenging credit markets, "for profit" companies find a more strenuous and risky issuing environment; thus, the "not for profit" structure is able to offer a better return to the bondholders while receiving more favorable terms from the investors. Based on this current market information, our underwriter and bond counsel strongly suggested the "not for profit" approach as the best option for both the project and for the City of Southlake. 4) Structure of Bonds. The bonds for which this project has been approved are tax exempt municipal revenue bonds. They are not a specific obligation of the municipality, rather the operating company or "obligor" (specifically Visions Lifestyle of Southlake, Inc.) 5) Tax Exempt vs. Non Tax Exempt. Not all bonds issued through this program are "tax exempt. For the bond holders to receive their interest stream without a tax obligation on that income stream, the underlying collateral must qualify as a "Type A" property (as opposed to "Type B As per IRS guidelines, medical properties that typically qualify for "Type A" bonds are hospitals, senior living facilities, research facilities (schools), etc. Properties such as small clinics, doctors' offices, etc. generally qualify for "Type B" (taxable to the bond holders). A single project can consist of a hybrid of these types. The counsel that we have receives confirms that Phase I of our project qualifies as a "Type A" project under those IRS guidelines. 6) Tax Exempt Explanation. The "tax exempt" nature of the bonds as approved applies only to income tax normally owed by the bond holders to the IRS on the income stream generated by the bonds. Any normal and customary property taxes due the applicable taxing authorities remain in place. 7) Why did we choose the bond structure? Two primary reasons. In today's challenging financing environment, the bond structure offers much greater terms and likelihood of success than more conventional financing. Secondly, given the nature of the financial requirements of our tenants, particularly the UTA School of Nursing, the margins were so tight that it required a bond financing scenario to secure the school of nursing. 8) How were we able to obtain bond approval? We began the arduous process of applying for the bond, finally qualified and took advantage of the opportunity. I trust this is adequate for your needs. Again, we appreciate your willingness to meet with us regarding this and look forward to working together on this. Please don't hesitate to let me know should you have any questions or need anything else. Thank you Boyd Burton 817.721.7146 X 4 v s J t u'. 4 i 9 I ii tf.. li 1 w -r r 1 ..t.„,.,,:_..,:;,„:. g iii I r p 7t r I [d ti p, 1 i;', 7.,? i 1 111 I P R- 7 r: .w.� 4 o OM \y t .:a \y s, t ii,,,, r, ist r 1 i A j i 11 f 1 a c a