May 1, 2012 CIty Council Agenda Packet

City Council Agenda of 5 May 1, 2012

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, May 1, 2012 McNease Convention Center, South Meeting Room

500 Rio Concho Drive 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 202, 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

“National Fallen Firefighters Memorial”, May 2nd – 5th, 2012, to be accepted by Mike Robertson, President of the Military Firefighter Heritage Foundation

“National Preservation Month”, May 2012, to be accepted by Brenda Gunter, President of Downtown San Angelo, Inc., and Genora Young, Executive Director of Downtown San Angelo, Inc.

“Police Week”, May 13th - May 19th, 2012 and “Peace Officers Memorial Day” May 15, 2012, to be accepted by Tim Vasquez, Chief of Police,

“Bicycle Safety Awareness Month”, May 2012, to be accepted by Gene Potter of the San Angelo Bicycle Association

“Motorcycle Safety Awareness Month”, May 2012, to be accepted by Marshal Munce, Owner and Rider Coach of Southwest Motorcycle Training

D. Recognition

Best Practices Re-Certification Recognition, City of San Angelo Police Department, presented by Marlin Price, Program Coordinator, Texas Law Enforcement Recognition Program, to be accepted by Tim Vasquez, Chief of Police, Kevin Hollway, Assistant Chief of Police, and Dennis McGuire, Sergeant

E. Public Comment

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


II. CONSENT AGENDA

1. Consideration of approving the April 17, 2012 City Council Regular meeting minutes

2. Consideration of awarding bids and authorizing the City Manager or his designee to execute any necessary related documents:

a. WU-03-12: Soil Sampling, SKG Engineering (San Angelo, TX), $4,399.89 b. WU-06-12: Water Meters, HD Supply Waterworks (San Angelo, TX), $138,750.00

3. Consideration of awarding RFP VM-02-12 for Digger Derrick Dealers to Altec Nueco, authorizing staff to negotiate a contract not to exceed $100.000.00, and authorizing the Interim City Manager to execute said contract and any necessary related documents

4. Consideration of approving a recommendation from the Evaluation Team to award RFP: PI-01-11/Website Design contract to Vision Internet, in an amount not to exceed $40,000.00 for design of a new, custom website for the City of San Angelo, and authorizing the City Manager to negotiate and execute a contract with the recommended vendor

5. Consideration of authorizing the sale of 3253 Red Bluff West, 3253 Red Bluff Road West, Lot 111, Group Red Bluff (Lewis), for the appraised value of $71,700.00 and authorizing the Mayor, City Manager, or Water Utilities Director to execute all necessary legal documents pertaining to the sale of subject property, subject to completion of all curative requirements

6. Consideration of authorizing the Interim City Manager and Water Utilities Director to make an application, negotiate, and execute a contract with AEP Texas for the Electric Load Management Program, and to accept the funds upon approval of the application and award of the program

7. Consideration of authorizing the City of San Angelo to enter into an Interlocal Agreement with the Tom Green County Sheriff’s Office for the purpose of jointly applying for the Edward Byrne Memorial Justice Assistance Grant and authorize the Interim City Manager to execute any necessary related documents

8. Consideration of authorizing the Interim City Manager to execute the third amendment to the lease agreement between the City of San Angelo and Federal Express Corporation in the amount of $45,113.04 annually at the San Angelo Regional Airport

9. Consideration of approving bylaws drafted to govern the Downtown Development Commission

10. Consideration of approving a non exclusive license agreement between the City of San Angelo and Jeff Partusch, owner of 113 E. Concho Avenue, for placement of a concrete dumpster pad, dumpster, and screening fence on the southwest corner of the parking area in Bart DeWitt Park for use by businesses in the 100 block of Concho Avenue, for use as authorized in the agreement, and authorizing the Interim City Manager to execute said agreement

11. Second hearing and consideration of adoption of an Ordinance amending Chapter 9, Lakes, Parks and Recreation Areas, Article 9.200 of the City of San Angelo Code of Ordinances by adding Section 9.209 related to temporary variances from City ordinances for Special Events on City property

AN ORDINANCE AMENDING CHAPTER 9 ENTITLED “LAKES, PARKS AND RECREATION AREAS,” ARTICLE 9.200, ENTITLED “PARKS,” BY ADDING A NEW SUBSECTION 9.209, ENTITLED “SPECIAL EVENTS,” OF THE SAN ANGELO CODE OF ORDINANCES, PROVIDING FOR SEVERABILITY, PROVIDING FOR A PENALTY AND PROVIDING FOR AN EFFECTIVE DATE

12. Consideration of adopting a Resolution authorizing applicant, San Angelo Blues Society, to hold a special event downtown known as “Simply Texas Blues Festival” on May 12, 2012 and granting variances from city ordinances, including noise ordinance


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 Open, Section 551.072 to deliberate the purchase, exchange, lease, or value of real property

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 551.087 to discuss an offer of financial or other incentive to a company or companies with whom the City of San Angelo is conducting economic development negotiations and which the City of San Angelo seeks to have, locate, stay or expand in San Angelo

G. PUBLIC HEARING AND COMMENT

13. Presentation of Downtown San Angelo, Inc., 4th Quarter 2011 and 1st Quarter 2012 Reports

(Presentation by DSA Executive Director Genora C. Young)

14. Discussion and possible action related to the City of San Angelo’s participation in the National League of Cities (NLC) Service Line Warranty Program and authorizing the Interim City Manager to negotiate and execute an interlocal agreement with North Central Texas Council of Governments, pursuant to Master Contract with Utility Service Partners Private Label, Inc. (“USP”) for water and sewer line repair coverage to homeowners residing within the City as part of a protection program and any related documents

(Presentation by Assistant City Manager Elizabeth Grindstaff and Utility Service Partners, Inc., General Manager Brian Davis)

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 12-03: Daniel Anderson

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: 320 West 26th Street, approximately 650 feet east from the intersection of North Bryant Boulevard and West 26th Street, more specifically occupying H.O. Byrd Subdivision, the west 128 feet Lot 23 in northern San Angelo, changing the zoning classification from Single-Family Residential (RS-1) to Heavy Commercial (CH) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

(Presentation by Planning Manager AJ Fawver)

16. First Public Hearing and consideration of the Planning Commission’s recommendation modifying a request for a zone change from Single-Family Residential (RS-1) to Heavy Commercial (CH), alternatively recommending a zone change from Single-Family Residential (RS-1) to General Commercial (CG) with an introduction of an Ordinance amending Chapter 12, Exhibit “A” (Zoning Ordinance) of the Code of Ordinances, City of San Angelo

Z 12-04: Claudia Perez 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: 2687 & 2695 Armstrong Street, approximately 400 feet south


from the intersection of Armstrong Street and East 28th Street. More specifically occupying the Lewis Subdivision, Block 1, Lots 3 & 4 in northern San Angelo, changing the zoning classification from Single-Family Residential (RS-1) to General Commercial (CG) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY


17. 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 12-03: Howard College Campus

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 3501 North US Highway 67, encompassing the area known as the Howard College, more specifically, being 33.802 acres out of the J. Pointevent Survey 1113, Abstract 4873, and Paulann Park Addition, Section 3, Tract H, being 0.76 acre, and Paulann Park Addition, Section 3, Tract G, being the northwestern 0.145 acre, in northeast San Angelo, a zone change from a combination of General Commercial (CG) and Light Manufacturing (ML) to Planned Development (PD) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY


18. Discussion and possible action on authorizing the purchase of ball field netting at the Texas Bank Sports Complex

(Requested by Councilmember Morrison and presentation by Recreation Manager MaryAnn Vasquez)

19. Consideration of approving the creation of a sculpture garden at Sunken Garden Park

(Presentation by Parks and Recreation Director Carl White)

20. First public hearing and consideration of introduction of an Ordinance amending the 2011-2012 Budget for grants, new projects and incomplete projects

(Presentation by Budget Manager Morgan Trainer)

H. FOLLOW UP AND ADMINISTRATIVE ISSUES

21. Consideration of matters discussed in Executive/Session, if needed

22. Public hearing, consideration and possible action regarding a recommendation by the City of San Angelo Development Corporation (COSADC) Board of Directors to allocate $455,000.00 of half-cent sales tax funds for the construction of a 25 foot wide extension of Smith Blvd. to Paul Ann Blvd. for the purpose of facilitating access to the commercial property in the Chaparral Industrial Park, to include authorizing the COSADC Board to issue a Request for Bid for the project and to award a contract that represents the best value for the project, authorizing the COSADC Board President to negotiate a contract with the selected vendor, and to direct the publication of a 60-day notice of the proposed project for public comment period

23. Announcements and consideration of Future Agenda Items

Special City Council Meeting – May 22, 2012 – Canvass of May 12, 2012 General Election

24. Adjournment

Given by order of the City Council and posted in accordance with Title 5, Texas Government Code, Chapter 551, Wednesday, April 25, 2012, at 6:30 P.M.

________________________

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

Whereas, Dawn Siebel with the help of the National Fallen Firefighters Foundation

created the Better Angels: The Firefighters of 9/11 exhibit which is a collection of 343 individual oil paintings of the New York City Firefighters who died on 9/11; and

Whereas, the City of San Angelo will be 1 of 5 cities in the United States to host this

exhibit thanks to the Military Firefighters Heritage Foundation; and Whereas, this exhibit will be on display at the San Angelo Museum of Fine Arts from

May 2-5, 2012; and Whereas, the Military Firefighters Heritage Foundation will hold the 2012 Fallen

Firefighters Memorial Service and Firefighter Ball on May 4-5, 2012; and Whereas, firefighters and emergency services personnel play an essential role in the

protection of lives and property in our local community; Now therefore, I Alvin New, Mayor of the City of San Angelo, on behalf of the City Council, do hereby proclaim the week of May 2-5, 2012,

“Better Angels – Firefighters of 9/11 Remembered” in recognition of the patriotic service and dedicated efforts of our fire and emergency services personnel. I encourage all citizens to visit this exhibit and participate in the memorial events in respect for those who lost their lives in the travesty of September 11, 2001.

I further call upon citizens of the City of San Angelo to remember all fire and emergency personnel who have made the ultimate sacrifice in service to their community and to pay respect to the survivors of our fallen heroes.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City to be affixed this 1st day of May, 2012.

THE CITY OF SAN ANGELO ___________________________

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

WHEREAS, historic preservation is an effective tool for managing growth

and sustainable development, revitalizing neighborhoods, fostering local pride and maintaining community character while enhancing livability; and

WHEREAS, historic preservation is relevant for communities across the nation, both urban and rural, and for Americans of all ages, all walks of life and all ethnic backgrounds; and

WHEREAS, it is important to celebrate the role of history in our lives and the contributions made by dedicated individuals in helping to preserve the tangible aspects of the heritage that has shaped us as a people; and

WHEREAS, "Discover America's Hidden Gems" is the theme for National Preservation Month 2012, cosponsored by Downtown San Angelo, Inc., and the National Trust for Historic Preservation.

NOW, THEREFORE, I, Alvin New, Mayor of the City of San Angelo, Texas, on behalf of the City Council, do hereby proclaim May 2012 as

“National Preservation Month” and call upon the people of San Angelo to join their fellow citizens across the United States in recognizing and participating in this special observance.


THE CITY OF SAN ANGELO ___________________________

P R O C L A M A T I O N WHEREAS, In 1962, President John F. Kennedy signed a proclamation which designated May

15 as Peace Officers Memorial Day, and the week in which it falls as Police Week; and

WHEREAS, This week is dedicated to pay tribute to those officers who have died in the line of

duty and the San Angelo Police Department will have a number of planned events to honor those who have made the ultimate sacrifice; and

WHEREAS, The members of the law enforcement agencies of San Angelo and Tom Green County

unceasingly provide vital public services and play an essential role in safeguarding the rights and freedoms of the citizens of San Angelo and Tom Green County; and

WHEREAS, It is important all citizens know and understand the problems, duties, and

responsibilities of their law enforcement agencies, and that members of our law enforcement agencies recognize their duty to serve the people by safeguarding life and property, by protecting them against violence and disorder, and by protecting the innocent against deception and the weak against oppression or intimidation; and

NOW, THEREFORE, I, Alvin New, Mayor of the City of San Angelo, Texas, on behalf of the City Council, do hereby proclaim May 13 through May 19, 2012, as “POLICE WEEK” and call upon all citizens and organizations of San Angelo to observe this memorial occasion with appropriate ceremonies in which all of our people may join in commemorating law enforcement officers, past and present, who by their faithful and loyal devotion to their responsibilities have rendered a dedicated service to their communities. I FURTHER call upon all citizens of San Angelo to observe May 15, 2012, as “PEACE OFFICERS MEMORIAL DAY” in honor of those Peace Officers who, through their courageous deeds, have lost their lives or have become disabled in the performance of duty.


THE CITY OF SAN ANGELO

P R O C L A M A T I O N WHEREAS, In 2009, 630 pedalcyclists were killed and an additional 51,000 were injured in

motor vehicle traffic crashes and, pedacyclist deaths accounted for 2 percent of all motor vehicle traffic fatalities; and

WHEREAS, All bicyclists should wear properly fitted bicycle helmets every time they ride

which is the single most effective way to prevent head injury resulting from a bicycle crash; and

WHEREAS, Bicyclists are considered vehicle operators; they are required to obey the same

rules of the road as other vehicle operators, including obeying traffic signs, signals, and lane markings and must ride in the same direction as traffic; and

WHEREAS, Drivers of motor vehicles need to share the road with bicyclists and should be

courteous and allow at least three feet clearance when passing a bicyclist on the road, look for cyclists before opening a vehicle door or pulling out from a parking space, yield to cyclists at intersections, and be watchful for cyclists when making left or right turns; and

WHEREAS, Bicyclists should increase their visibility to drivers by wearing fluorescent or

brightly colored clothing during the day, dawn, and dusk and use a front light and a red reflector or flashing rear light, and use retro-reflective tape or markings on equipment or clothing.

NOW, THEREFORE, I Alvin New, Mayor of the City of San Angelo, Texas, on behalf of the City Council, do hereby proclaim the month of May, 2012 as

“BICYCLE SAFETY MONTH”

and encourage the San Angelo community to be mindful of motorcyclists on the road

IN WITNESS WHEREOF, I have hereunto, set my and caused the Seal of the City to be affixed this 1st day of May, 2012

THE CITY OF SAN ANGELO Alvin New, Mayor

P R O C L A M A T I O N WHEREAS, Motorcycle fatalities increased slightly in 2010 to 4,502 accounting for 14

percent of total fatalities for the year picking up the overall increasing trend over the last 13 years; and

WHEREAS, Motorcyclists have responsibilities such as obeying traffic rules, being alert to

other drivers, never riding while impaired or distracted, and always wearing a compliant helmet and other protective gear; and

WHEREAS, Motorists should always signal their intentions before changing lanes or

merging with traffic, which allows motorcyclist to anticipate traffic flow and find a safe lane position; and

WHEREAS, Road conditions that are minor annoyances to motorists can pose major hazards

to motorcyclists and, motorcycle riders may change speed or adjust position within a lane suddenly in reaction to road and traffic conditions such as potholes, gravel, wet or slippery surfaces, pavement seams, railroad crossings, and grooved pavement; and

WHEREAS, When following a motorcycle, motorist should keep a distance of three or four

seconds so the motorcycle rider has enough time to maneuver or stop in an emergency; and

WHEREAS, Motorcyclists have the same rights and privileges as any motor vehicle driver on

the roadway and drivers of all other vehicles, and all road users are reminded to safely “share the road” with motorcyclists.

NOW, THEREFORE, I Alvin New, Mayor of the City of San Angelo, Texas, on behalf of the City Council, do hereby proclaim the month of May 2012 as

“MOTORCYCLE SAFETY AWARENESS MONTH” and encourage the San Angelo community to be mindful of motorcyclists on the road.

IN WITNESS WHEREOF, I have hereunto, set my and caused the Seal of the City to be affixed this 1st day of May, 2012 THE CITY OF SAN ANGELO

CITY COUNCIL MINUTE RECORD The City of San Angelo Page 423 Tuesday, April 17, 2012 Vol. 103

OPEN SESSION BE IT REMEMBERED City Council convened in a regular meeting at 9:00 A.M., Tuesday, April 17, 2012, in the San Angelo McNease Convention Center, 500 Rio Concho Drive, San Angelo, Texas. All duly authorized members of the Council, to-wit:

Mayor, Alvin New Councilmember Paul Alexander Councilmember Dwain Morrison Councilmember Johnny Silvas Councilmember Fredd B. Adams, II Councilmember Kendall Hirschfeld Councilmember Charlotte Farmer

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

An invocation was given by John S. Pope, Pastor of Galilee Baptist Church and pledge was led by Christina Lewis, a 6th grade student at Texas Leadership/TLC Academy.

PROCLAMATION AND RECOGNITIONS

“Earth Day”, April 22, 2012, was accepted by Girl Scout Troop 5130 accompanied by Troop Leader Camille Yale.

Civic League Park designated as a Lone Star Legacy Park by the Texas Recreation and Park Society.

James Flores, Code Compliance Manager, for his tireless efforts towards the City of San Angelo's neighborhood revitalization programs by organizing and leading the monthly Keep San Angelo Beautiful trailer run for elderly and disabled citizens.

City of San Angelo for receiving the Texas Comptroller Silver Leadership Circle Award recognizing the City for its continued progress towards achieving financial transparency, to be accepted by Chief Accountant Bill Smith, Budget Manager Morgan Trainer, Senior Budget Analyst Laura Brooks, Senior Budget Analyst Steve Mahaffey, Public Information Officer Ty Meighan, and Multimedia Coordinator Brian Groves.

PUBLIC COMMENT

Councilmember Farmer recognized First Lady Anita Perry and the Texas Historical Commission for honoring San Angelo with a Texas Treasures Award on April 10, 2012.

Councilmember Silvas commented on the street reconstruction projects, the funding for the projects, the prioritization of the projects, and possible ballot initiative. Mayor New explained that if a ballot initiative is sought, the funds are not new sales tax funds but reallocated monies to the project. Interim City Manager Michael Dane also added staff will consider a maintenance component to commit funds to the maintenance and reconstruction of the streets.

Mr. Dane recognized fallen and former San Angelo Police Officer Jaime Padron, the Austin Police Department, and the support and compassion of the citizens.

Minutes Vol. 103 April 17, 2012

CONSENT AGENDA

APPROVAL OF THE APRIL 3, 2012 CITY COUNCIL REGULAR MEETING MINUTES

AWARD OF A HOUSTON-GALVESTON AREA COUNCIL (HGAC) PURCHASING CO-OPERATIVE BID (PD-02-12) FOR SPRINT FOR AIR CARD SERVICE IN THE AMOUNT OF $62,455.56 AND AUTHORIZATION FOR THE INTERIM CITY MANAGER OR HIS DESIGNEE TO EXECUTE ANY NECESSARY RELATED DOCUMENTS

ADOPTION OF RESOLUTIONS AUTHORIZING THE MAYOR TO EXECUTE TAX DEEDS FOR THE SALE OF TAX LOTS:

20 W 11th Street (Murillo), Lots 16 & 17, Block 53 Miles Addition, $2,500, Suit No. B-06-0064-T (ANNEX A, PAGE 429, RESOLUTION #2012-04-048R) 707 W 15th Street, (James), Lot 4, Block 4, Mineola Addition, Suit No. TAX89-0557B (ANNEX B, PAGE 431, RESOLUTION #2012-04-049R) Next to 612 E 42nd Street, (Gonzales), Lot 14, Block 47, Lake View Addition, $1,100, Suit No. B-06-0035-T (ANNEX C, PAGE 433, RESOLUTION #2012-04-050R)

APPROVAL OF AN AMENDMENT TO A CONTRACT BETWEEN THE CITY OF SAN ANGELO AND VARSITY CONTRACTORS FOR JANITORIAL SERVICES (PUR-04-09), AND AUTHORIZATION FOR THE INTERIM CITY MANAGER TO EXECUTE SAID CONTRACT AMENDMENT

CONFIRMATION OF THE INTERIM CITY MANAGER’S APPOINTMENT OF RHEA COOKE TO SERVE A 1ST TERM ON THE CIVIL SERVICE COMMISSION

SECOND HEARING AND INTRODUCTION OF AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” (ZONING ORDINANCE) OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO (ANNEX D, PAGE 435, ORDINANCE #2012-04-051)

PD 12-02: Shannon Medical Center Downtown

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: 120 East Harris Avenue encompassing the area known as the Shannon Medical Center Downtown, more specifically being Shannon Medical Center Downtown, Block 22A, Section 1, Lot A, Shannon Medical Center Downtown, Block 1, Section 2, Lot A, Shannon Medical Center Downtown, Block 15A, Section 1, Lot A, Frary Addition, Block 2, Lots 1 thru 4, San Angelo Addition, Block 5, Lots 16 thru 20, San Angelo Addition, Block 21, Lots 1, 2, 5, 9, 10, 15 thru 20, the west 26.4’ of Lot 3, and the west 25’ of Lot 6, San Angelo Addition, Block 21½, Lot 1, San Angelo Addition, Block 22½, Lots 3 thru 12, Upton Addition, Block 22½, Lots 20-24 and the west 75’ of Lot 19, Miles Acre Lots, 22½, Lots 31 and 32, in central San Angelo changing the zoning classification from Low-Rise Multifamily Residential (RM-1), General Commercial (CG), and General Commercial/Heavy Commercial (CG/CH) to Planned Development (PD) District PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

Councilmember Silvas requested the Hartford item be considered in the Regular Agenda. Council concurred.

Motion, to approve the Consent Agenda, as presented, with the exception of the Hartford item, was made by Councilmember Hirschfeld and seconded by Councilmember Adams. Motion carried unanimously.

Minutes Page 425 April 17, 2012 Vol. 103

REGULAR AGENDA: PUBLIC HEARING AND COMMENT

APPROVAL OF A RESOLUTION DECLARING THE INTENTION OF THE CITY TO CONTINUE THE HARTFORD VARIABLE ANNUITY LIFE INSURANCE COMPANY DEFERRED COMPENSATION PLAN; RESERVING THE RIGHT TO TERMINATE OR AMEND THE PLAN AT ANY TIME; AND, AUTHORIZATION FOR THE CITY MANAGER, OR INTERIM CITY MANAGER, OR HIS DESIGNEE TO EXECUTE SUCH DOCUMENTS AS HE MAY DEEM NECESSARY OR DESIRABLE TO CARRY OUT THE INTENT OF THIS RESOLUTION AND REQUIRED UNDER THE PLAN TO MAKE THE PLAN FULLY EFFECTIVE IN ACCORDANCE WITH ITS TERMS (ANNEX E, PAGE 447, RESOLUTION #2012-04-052R)

Human Resources Director Lisa Marley presented background information.

Motion, to approve, as presented, was made by Councilmember Silvas and seconded by Councilmember Hirschfeld. Motion carried unanimously.

APPROVAL OF A LICENSE AGREEMENT WITH THE SAN ANGELO HEALTH FOUNDATION FOR THE CONSTRUCTION OF A TRAIL ALONG THE SOUTH BANK OF THE NORTH CONCHO RIVER BETWEEN IRVING STREET AND CITY-OWNED PROPERTY EAST OF KOENIGHEIM STREET (U.S. HWY 87, NORTH) AS PART OF THE RIVER IMPROVEMENT PROJECT AND AUTHORIZATION FOR THE INTERIM CITY MANAGER OR DESIGNEE TO EXECUTE SAID AGREEMENT

Parks and Recreation Director Carl White presented background information. A copy of the presentation is part of the Permanent Supplemental Record.

Motion, to approve, as presented, was made by Councilmember Adams and seconded by Councilmember Hirschfeld. Motion carried unanimously.

DISCUSSION AND ADOPTION OF A RESOLUTION AUTHORIZING THE INTERIM CITY MANAGER OR HIS DESIGNEE TO NEGOTIATE AND EXECUTE A DEVELOPMENT AND OPERATING AGREEMENT FOR PERFORMING ARTS CAMPUS BY AND BETWEEN THE CITY OF SAN ANGELO AND THE SAN ANGELO PERFORMING ARTS COALITION (SAPAC) RELATING TO CREATION OF THE PERFORMING ARTS CENTER AND CAMPUS WHICH WILL INCLUDE THE CITY AUDITORIUM; PROVIDING FOR MANAGEMENT SERVICES BY SAPAC; PROVIDING FOR THE USE OF OFFICE SPACE BY SAPAC WITHIN CITY HALL BUILDING; PROVIDING FOR FUNDING RESPONSIBILITIES OF THE PARTIES; AND PROVIDING FOR RELATED MATTERS (ANNEX F, PAGE 449, RESOLUTION #2012-04-053R)

Interim City Manager Michael Dane presented background information. A copy of the revised contract was distributed and is part of the Permanent Supplemental Record.

General discussion was held on the museum allocation in relation to other cultural grant applications and allocations, Section 5.2 regarding adding a tiered distribution for their allocation related to their performance standards, broadening the Hotel/Occupancy allocation definition concept in relation to the allocation and incentive, performance measures, clearly defining the return on investment and having all players compete on the same standards, and the effective date of the agreement.

San Angelo Area Foundation Executive Director Matt Lewis further clarified the Hotel/Motel Occupancy Tax Revenue (HOT) allocation and the intention of the allocation.

RECESS

At 10:13 A.M., Mayor New called a recess.

RECONVENE

At 10:24 A.M., Council reconvened, and the following business was transacted:


General discussion continued on defining the performance measures under a separate HOT ordinance and a separate lease agreement, and coordinating completion of City Hall and construction of the west mezzanine for SAPAC.

Councilmember Farmer commented, for clarification purposes, the draft contract under consideration today, is not the document presented in the packet.

Motion, to adopt the Resolution, as presented, allowing staff to negotiate minor non-substantive changes, 5.2 section revisions, as stated, and to include a charitable intent clause, was made by Councilmember Hirschfeld and seconded by Councilmember Farmer.

Responding to a question from Councilmember Silvas, Mr. Lewis informed the foundation, to date, have raised $7.3M however the funds are not dedicated to either project (auditorium restoration or performing arts center). The total funding for both projects is $13.7M and the grantees and donors have expressly noted the donations are for the entire project. Mr. Lewis stated once all the funds are secured, the monies for the projects will be dedicated to commence construction on the projects.

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

DISCUSSION OF CITY PROCEDURES REGARDING VIOLATIONS PERTAINING TO CODE OF ORDINANCE CHAPTER 7, SECTION 7.303, ENTITLED “WEEDS AND VEGETATION”, SPECIFICALLY TALL GRASS AND WEEDS OVER 12 INCHES

Requested by Councilmember Adams and Code Compliance Manager James Flores presented background information.

General discussion was held on the timeline to comply once a citation or notice is received, number of complaint calls, courtesy notices and related costs, reducing the number of days to comply, rescinding the resolution establishing the procedure, related cost to the increased liens filed and lots mowed, and increasing the administrative fee and fines.

Council directed staff to research the resolution and present their recommendation at a future meeting as well as directed staff to conduct further research to increase the administrative fees and fines associated with the code violations.

FIRST PUBLIC HEARING AND INTRODUCTION OF AN ORDINANCE AMENDING CHAPTER 9, LAKES, PARKS AND RECREATION AREAS, ARTICLE 9.200 OF THE CITY OF SAN ANGELO CODE OF ORDINANCES BY ADDING SECTION 9.209 RELATED TO TEMPORARY VARIANCES FROM CITY ORDINANCES FOR SPECIAL EVENTS ON CITY PROPERTY

AN ORDINANCE AMENDING CHAPTER 9 ENTITLED “LAKES, PARKS AND RECREATION AREAS,” ARTICLE 9.200, ENTITLED “PARKS,” BY ADDING A NEW SUB-SECTION 9.209, ENTITLED “SPECIAL EVENTS,” OF THE SAN ANGELO CODE OF ORDINANCES, PROVIDING FOR SEVERABILITY, PROVIDING FOR A PENALTY AND PROVIDING FOR AN EFFECTIVE DATE

Civic Events Manager Anthony Wilson presented background information.

Motion, to introduce the Ordinance, as presented, was made by Councilmember Adams and seconded by Councilmember Hirschfeld. Motion carried unanimously.

TABLING OF DISCUSSION AND POSSIBLE ACTION ON AUTHORIZING THE PURCHASE OF BALL FIELD NETTING AT THE TEXAS BANK SPORTS COMPLEX

Due to Councilmember Morrison’s absence, Mayor New suggested tabling the item. Council concurred.

DISCUSSION AND CONSIDERATION OF THE POSSIBILITY OF ISSUING REBATES OF WATER FEES

Budget Manager Morgan Trainer presented background information and recommended no action at this time.

Minutes Page 427 April 17, 2012 Vol. 103

Council concurred. A copy of the presentation is part of the Permanent Supplemental Record.

PUBLIC HEARING AND APPROVAL AND ADOPTION OF A RESOLUTION AUTHORIZING THE ADOPTION OF THE 2012-2017 CAPITAL IMPROVEMENT PLAN FOR THE CITY OF SAN ANGELO (ANNEX G, PAGE 451, RESOLUTION #2012-04-054R)

Budget Manager Morgan Trainer presented background information. A copy of the presentation is part of the Permanent Supplemental Record.

General discussion was held on the length of time a project remained on the project list, the project’s relative value, and Council’s desire to schedule and completes the projects.

Mayor New opened the floor to hear public comments regarding the proposed plan.

Public comment was made by Citizen Jim Turner. Being no further comments, Mayor New closed the public comment hearing period.

Motion, to adopt the Resolution, as presented, was made by Councilmember Adams and seconded by Councilmember Farmer. Motion carried unanimously.

TABLING OF DISCUSSION AND POSSIBLE ACTION RELATED TO THE CITY OF SAN ANGELO’S PARTICIPATION IN THE NATIONAL LEAGUE OF CITIES (NLC) SERVICE LINE WARRANTY PROGRAM

Assistant City Manager Elizabeth Grindstaff stated the representative was not available to make his presentation and suggested tabling the item to the next meeting. Council concurred.

ADOPTION OF A RESOLUTION IMPLEMENTING DROUGHT LEVEL II OF THE CITY’S WATER CONSERVATION AND DROUGHT CONTINGENCY PLAN (ANNEX H, PAGE 453, RESOLUTION #2012-04-055R)

Director of Water Utilities Will Wilde presented background information.

General discussion was held on the City’s proactive practices and actions in the past years; clarified the effective date of May 1, 2012 for the June billing cycle; proactively advertise the specifics of the plan, specifically the fee schedule; and the marketing and educational efforts via the website and social networks.

Public Information Officer Ty Meighan stated staff will prepare a marketing plan similar to the Drought Stage Level I campaign.

Motion, to adopt the Resolution, as presented, was made by Councilmember Hirschfeld and seconded by Councilmember Farmer. Motion carried unanimously.

RECESS

At 12:06 P.M., Mayor New called a recess.

EXECUTIVE/CLOSED SESSION

At 12:37 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 551.072 to deliberate the purchase, exchange, lease, or value of real property; Section 555.071(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 on issues related to the Texas Open Meetings Act; and Section 551.087 to discuss an offer of financial or other incentive to a company or companies with whom the City of San Angelo is conducting economic development negotiations and which the City of San Angelo seeks to have, locate, stay or expand in San Angelo.


OPEN SESSION (continued)

At 1:11 P.M. City Council concluded the Executive/Closed Session whereupon the following business was transacted:

RECESS

At 1:11 P.M., Mayor New called a recess.

RECONVENE

At 1:18 P.M., Council reconvened, and the following business was transacted:

FOLLOW UP AND ADMINISTRATIVE ISSUES

CONSIDERATION OF MATTERS DISCUSSED IN EXECUTIVE/CLOSED SESSION

No action was taken on matters discussed in Executive/Closed Session.

CONSIDERATION OF FUTURE AGENDA ITEMS

Interim City Manager Michael Dane distributed the proposed May 1, 2012 Agenda and solicited Council comments and suggestions.

Update on the Hickory Aquifer well field capacity report and pipeline construction.

Update on Chadbourne Street “S” curve next to newly construction multi modal terminal and related issues.

Update on technology improvements and future plans for the organization.

Consideration of tabled items from today’s meeting.

ADJOURNMENT

Motion, to adjourn, was made by Councilmember Adams and seconded by Councilmember Silvas. Motion carried unanimously.

The meeting adjourned at 1:37 P.M.

THE CITY OF SAN ANGELO ___________________________________ Alvin New, Mayor

ATTEST: _______________________________ Alicia Ramirez, City Clerk Annexes A-H 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.)

City of San Angelo

Memo

Date: April 17, 2012

To: Councilmembers From: Patrick Frerich, Equipment Maintenance Superintendent - Vehicle Maintenance Subject: Agenda Item for October 4, 2011 Contact: Patrick Frerich, Vehicle Maintenance - 657-4329 x1651 Caption: Consent

Consideration of awarding RFP VM-02-12 for Digger Derrick Dealers to Altec Nueco, authorizing staff to negotiate a contract not to exceed $100,000, and authorizing the Interim City Manager to execute said contract and any necessary related documents.

Summary: The Vehicle Maintenance Department requested proposals for dealers to provide assistance in locating and facilitating the acquisition of a used and reconditioned or demo digger derrick for the Traffic Department to replace a current unit that has exceeded it operational life. Altec Nueco submitted a response to the Request for Proposal (RFP). History: Historically, the City has purchased new equipment to replace current fleet units or add to the fleet. New equipment is primarily preferred due to the extended life and lower overall lifetime costs associated with new units verses purchasing on the used market. Occasionally, factors such as budget constrains prohibit this practice and, therefore, alternatives must be sought. A Request for Bid (RFB) for a new digger derrick was distributed with an option to provide a used piece of equipment as an alternative in RFB VM-01-12. An acceptable used unit was located and bid during that time, but was sold and therefore was unavailable before the unit could be approved for purchase in accordance with the City’s Purchasing Policy. Due to the unpredictable availability of a used unit and coordination with the RFB process, staff determined a Request for Proposal (RFP) to allow negotiations to occur with a dealer when an acceptable unit becomes available would be more beneficial than the traditional bidding method.

Staff solicited for proposals from vendors familiar with this type of equipment for the location and potential purchase of a used digger derrick. Staff supplied in the proposal its list of preferences when seeking a piece of equipment for consideration. Proposals were evaluated and ranked by the selection committee using the following criteria:

1. Ability to meet budgetary constraints 2. Ability to provide unit(s) based on the City’s preferences 3. Experience of the vendor with this equipment 4. Services available both during and after the sale

X:\PF Documents\Bid Documents\2012 Equipment Bids\Agenda Background\Background Memo VM-02-12 - Digger Derrick Dealers.doc

X:\PF Documents\Bid Documents\2012 Equipment Bids\Agenda Background\Background Memo VM-02-12 - Digger Derrick Dealers.doc

The selection committee was comprised of Roger Banks, Purchasing Manager and Patrick Frerich, Equipment Maintenance Superintendent.

Financial Impact: Altec Nueco submitted a proposal based on the City’s RFP. Their submission garnered a ranking of 100 of 100 points, and no other proposals were received. This purchase is expected to remain within the $100,000 budget, and equipment will be sought and considered accordingly. Qualifying equipment will be presented to Council for approval to proceed with the purchase. Related Vision Item: NA Other information/Recommendation: Staff seeks approval to enter into negotiations with Altec Nueco (Birmingham, AL), the submitter of the most appealing proposal. Negotiations will include locating and evaluating candidates for purchase, selling prices, evaluating and choosing available options, and logistical considerations. Attachments: RFP VM-02-12 Ranking Justification Memo RFP VM-02-12 Acknowledgement Form Reviewed by: Ricky Dickson, Director – Operations

Y:\12-RFX\Vehicle Maintenance\VM0212 RFP-Rebid Digger\RFP Acknowledgement

City of San AngeloProposal Acknowledgment * RFP: VM-02-12 (Rebid)/Digger Derrick DealerDate: February 23, 2012/2:00 PM

Proposals Received City, State1 Altec San Antonio TX

Proposals sent to:Altec Kaufman TX

Terex San Antonio TX

NOTE: Include this form with your Agenda Memo

MEMORANDUM To: City Council From: Patrick Frerich / Vehicle Maintenance Date: April 17, 2012 Subject: VM-02-12 Digger Derrick Dealers Proposal Review __________________________________________________________________

The Vehicle Maintenance Department requested proposals for dealers familiar in the sale of used and reconditioned or demo digger derricks. RFP VM-02-12 was draft outlining criteria and stipulations interested vendors should take into consideration. Sought were proposals of vendors dealing with this equipment that were the most appealing and offered the most benefit to the City. Altec Nueco responded with proposals in accordance with the RFP. Proposals were then reviewed by the selection committee consisting of Patrick Frerich – Vehicle Maintenance, and Roger Banks - Purchasing. Committee members ranked the proposal on a cumulative scale of 100 points as follows: Ability to Meet Budgetary Constraints 40 Points Max Ability to Provide Unit(s) based on the City’s Preferences 30 Points Max Experience of the Vendor with this Equipment 20 Points Max Services Available both During and After the Sale 10 Points Max The resulting rankings are outlined below:

Vendor Budgetary Constraints (40 Points)

Preference Alignment (30 Points)

Experience (20 Points)

Services Available

(10 Points)

Total Points (100 Points)

Altec Nueco 40 30 20 10 100 Based on these rankings, the Selection Committee recommends selecting the proposal from Altec Nueces to enter into subsequent phases of the RFP process of negotiation, and acceptance.

City of San Angelo

Memo Date: April 23, 2012

To: Mayor and Councilmembers

From: Tom Kerr, Assistant Director of Water Utilities

Subject: Agenda Item for May 1, 2012 Council Meeting

Contact: Tom Kerr, 657-4209

Caption: Consent Item

Consideration of award of bid for WU-03-12 Soil Sampling to SKG Engineering in the amount of $4,399.89

Summary: Two (2) bids were received from local laboratories to provide soil sampling for the Water Reclamation Facility as is required under TCEQ permit. The laboratories being SKG Engineering and Talem Laboratories. SKG Engineering provided the lowest bid.

History: Soil sampling and analysis is required per the TCEQ permit for the City Water Reclamation Facility.

Financial Impact: Funded within the Water Reclamation Facility operation budget at $4,399.89.

Related Vision Item

N/A

Other Information/ Recommendation:

It is recommended that the bid be awarded to SKG Engineering of San Angelo.

Attachments: Bid Tab

Presentation: None

Publication: N/A

Reviewed by Service Area Director:

Will Wilde, Water Utilities Director, April 23, 2012.

Y:\12-RFX\Water Utilities\WU0312 Soil Sampling Services\Bid Tab

Ite

m

DescriptionEstimated

Qty Unit PriceExtended

Price Unit PriceExtended

Price

1 Soil Sampling 33 133.33$ $ 4,399.89 363.00$ $ 11,979.00

Requests for Bids were mailed to:

JEA/Hydrotech Engineering Fort Worth, TX

SKG Engineering San Angelo, TX

Talem San Angelo, TX

White Buffalo Environmental Services San Angelo, TX

X8Environmental, Inc. Lubbock, TX

Bid Tabulaltion/CITY OF SAN ANGELO

SKG Engineering Talem

RFB NO: WU-01312/Soil Sampling * March 8, 2013

City of San Angelo



From: Tom Kerr, Assistant Director of Water Utilities


Contact: Tom Kerr, 657-4209


Consideration of award of bid for WU-06-12 Water Meters to HD Supply Waterworks

Summary: Three (3) bids were received from vendors to supply 1 inch water meters as specified. The vendors being Aqua Metric Sales Co., HD Supply Waterworks, and Neptune Technology Group, Inc.. HD Supply Waterworks provided the lowest bid.

History: The meters are utilized in the on-going meter water replacement program. The meters in this bid are utilized primarily in residential and commercial applications.

Financial Impact: Funded within the Water Distribution operation budget at $138,750.00.

Related Vision Item

N/A


It is recommended that the bid be awarded to HD Supply Waterworks.

Attachments: Bid Tab

Presentation: None

Publication: N/A

Reviewed by Service Area Director:

Will Wilde, Water Utilities Director, April 16, 2012.

Y:\12-RFX\Water Utilities\WU0612 Water Meters\Bid Tab

C I T Y O F S A N A N G E L O BID TABULATION * RFB NO: WU-06-12/Water Meters * April 11, 2012

No. Item Unit Est Qty Unit Cost Total Price Unit Cost Total Price Unit Cost Total Price1 Metal Door Transition Ea 1,250 111.00$ 138,750.00$ 152.69$ 190,862.50$ 115.00$ 143,750.00$

$ 138,750.00 $ 190,862.50 $ 143,750.00

Delivery Days 21 30 30Piggy Back Availibility: No Yes No

Payment Discount: None None None

Bids Mailed To:

Aqua Metric Sales Co. Riverside CABig Country Brownwood TX

HD Supply Waterworks San Angelo TX

HD Supply Waterworks Pflugerville TX

Morrison Supply San Angelo TX

Municipal Water Works Royse City TX

Neptune Technology Group, Inc. Tallasee AL

Plastic Wholesale Abilene TX

Western Industrial Odessa TX

HD Supply Waterworks Aqua Metric Sales Co. Neptune Technology Group, Inc.

Total Bid

City of San Angelo



From: Ty Meighan, Public Information Officer

Subject: Agenda Item for 05-01-2012 Council Meeting

Contact: Ty Meighan or Elizabeth Grindstaff

Caption: Consent Agenda

Consideration of matters relating to Request for Proposal RFP: PI-01-11, and actions in connection thereto: a. Approving a recommendation from the Evaluation Team to award RFP: PI-01-11/Website Design contract to Vision Internet, in an amount not to exceed $40,000.00 for design of a new, custom website for the City of San Angelo, and authorizing the City Manager to negotiate and execute a contract with the recommended vendor b. Authorizing a budget amendment for the project funds in an amount not to exceed $40,000.00 to cover costs of designing the new website, training staff, and hosting the newly designed site

Summary: The Evaluation Team unanimously recommended awarding a contract designing a new, custom website for the City of San Angelo to Vision Internet and is now requesting approval of the vendor selection and budget amendment to the City Council. The contract will be in the amount of $40,000.00.

History: The City’s current website was originally designed in 2004, and is not capable of incorporating many of the recent advances in social media, online commerce, and mobile technologies. As a result, Public Information has utilized third-party sites to achieve the functionality needed to ensure the City of San Angelo has website capabilities that meet the needs of City staff, local businesses, and our constituents. The existing site is not user-friendly for our customers, and is cumbersome for staff to maintain. The City needs a Web presence that provides information and tools to all users and clearly communicates that we are a thriving, forward-looking, business-friendly community that understands the need to facilitate online transactions and eliminate waste and duplication caused by using antiquated systems.

On October 11, 2011, the City’s Purchasing Department issued a Request for Proposals for the project. Proposals were issued to six companies registered with the City to provide these services, one of which is in San Angelo. Purchasing received five proposals on October 28, 2011. The Evaluation Team has scored and ranked each proposal based on the criteria and project requirements outlined in the RFP. The Evaluation Team unanimously recommends the contract be awarded to Vision Internet as that company’s Proposal represents the best value for the project. See attached information for additional details.

Financial Impact: The costs for the website design, hosting, and training staff will be $40,000.00.


a. Staff requests City Council approve the recommendation from the Evaluation Team to award a contract to Vision Internet for RFP: PI-01-11, in an amount not to exceed $$ 40,000.00, for design of a new, custom website for the City of San Angelo, and authorize the City Manager to negotiate and execute a contract with the recommended vendor.

b. Staff requests City Council approve the budget amendment to fund the project budget in the amount of $$ 40,000.00.

Attachments: Proposal Acknowledgment, RFP: PI-01-11/Website Design Summary Proposal Evaluation Scores, RFP: PI-01-11/October 28, 2011 Recommendation Memo, RFP: PI-01-11/ Website Design

Presentation: Ty Meighan, Public Information Officer

Publication: N/A

Reviewed by Director:

Elizabeth Grindstaff, Assistant City Manager

Approved by Legal:

INTEROFFICE MEMORANDUM

To: Roger Banks, Purchasing Manager

From: Ty Meighan, Public Information Officer

Date: April, 19, 2012

RE: RFP: PI-01-11, Website Design

The above referenced RFP was issued on October 11, 2011, and proposals were sent to six companies, including one from San Angelo. Purchasing received five responses, which were opened on October 28, 2011. The eight-member Evaluation Team for the project included: Ty Meighan and Brian Groves, Public Information; Mary Cleveland, Finance Department; Maryann Vasquez, Parks and Recreation; AJ Fawver and Donna Osborne, Community and Economic Development; John Eades, Information Technology; and, Alicia Ramirez, City Clerk. The Team evaluated and ranked each proposal based on the criteria and project requirements outlined in the RFP. Each proposal could be awarded up to the maximum 800 available points. 1. Vision Internet, Santa Monica, CA: 700 points – This proposal represents the best value for the project and is

the unanimous recommendation of the Evaluation Team. The proposal outlined a project approach that seeks input from all City departments and site users; ensures universal browser capability; creates an updated, dynamic homepage; offers web-based training for an unlimited number of participants, and will insert actual screenshots from the new system into the training documentation. The features offered in this proposal will allow staff to send blanket updates through social media, establish mobile-ready web pages, create customized reports online, and accept electronic payments. The samples and references demonstrated an innovative look with the most current technology and greatest level of customization.

2. CivicPlus Sales, Manhattan, KS: 662 points – This proposal was based on customizing standard (plug-and-play type) templates; did not address all project requirements (specifically, transmitting construction plans and digital signatures); indicated limited hosting capacity and a preference for Windows-based browsers; reference sites appear similar in look and style (not unique to a particular customer); only on-site or phone training available for staff; indicated design, maintenance and hosting costs much higher than other proposals; and, did not provide a detailed timeline.

3. Intrafinity, Toronto, ON Canada: 508 points – This proposal did not demonstrate experience using many of the critical, more progressive features required (specifically, online payments); did not provide contact information or URLs for sample sites; requires a user-license for their software; and, an approach that would work to fit our needs into their stock modules rather than designing a custom site based on our needs and requirements.

4. GovOffice, Lincoln Park, NJ: 496 points – This company designed the City’s existing site; however, the proposal did not demonstrate the ability to implement required interactive tools or facilitate transmission of large electronic files; has no current mobile app or online registration and payment capability; lacked specifics relating to customizing the templates used to design sites; lacked specifics on schedules and social media; and had the wrong city name in the proposal, which indicates a lack of attention to the specific requirements outlined in the RFP.

5. BCT Consulting, Clovis, CA: 485 points – This proposal was based on customizing standard templates; did not demonstrate municipal experience; did not address all project requirements; and, did not provide a detailed timeline.

As a result of the rankings, the Team is recommending that the contract be awarded to Vision Internet of Santa Monica, California, and that the staff be authorized to negotiate a new contract for the design of a new, custom website for the City of San Angelo. If a satisfactory contract cannot be negotiated, staff will begin negotiations with the company with the proposal that was determined to be the next best value for the project.

xc: Elizabeth Grindstaff, Assistant City Manager

Attachments: Proposal Acknowledgment, RFP: PI-01-11/Website Design Summary Evaluation Scores, RFP: PI-01-11/Website Design

City of San Angelo



From: Will Wilde, Water Utilities Director


Contact: Will Wilde, Water Utilities Director, 657-4209


Consideration of authorizing the sale of the following residential property for the appraised value and authorizing the Mayor, City Manager, or Water Utilities Director to execute all necessary legal documents pertaining to the sale of subject property, subject to completion of all curative requirements.

Summary: Lewis 3253 Red Bluff Road West Lot 111, Group Red Bluff $71,700 History: None.

Financial Impact: Proceeds from the sale of lake lots go into the Lake Nasworthy Trust Fund. Related Vision Item (if applicable): None. Other Information/Recommendation: If the sale is approved at the appraised value, a title examination will be performed and legal staff will prepare a Real Estate Contract of Sale, Special Warranty Deed and Surrender of Lease, as previously approved by City Council. Staff recommends approval. Attachments: Appraisal Report (Lewis) Presentation: None. Publication: None. Reviewed by Service Area Director: Will Wilde, Water Utilities Director, April 18, 2012.

City of San Angelo



From: Will Wilde, Water Utilities Director


Contact: Will Wilde, Water Utilities Director, 657-4209

Caption: Consent

Consideration of authorizing the Interim City Manager and Water Utilities Director to make an application; and negotiate and execute a contract with AEP Texas for participation in the electric Load Management Program.

Summary: The electric load management program is an energy efficiency incentive program that is designed to reduce electrical loads during peak demand periods. By agreeing to reduce its electrical demand, the City would receive an incentive payment based on actual load reductions. History: The Water Treatment and Wastewater Treatment Plants have emergency generators that are used for backup power. These generators would be utilized to reduce the facilities demand on the electric system grid. Financial Impact: The City will receive payments of up to $15,000 for participating in the program. Other Information/Recommendation: Under the program provisions, the City could be requested for up to a maximum of four times to reduce its load for up to 4 hours between the hours of 1:00 – 7:00 p.m. The program runs from June 1 through September 30. It is recommended the City participate in the program and the Interim City Manager and Water Utilities Director be authorized to make application; and negotiate and execute the contract documents. Attachments: Draft AEP Load Management Agreement; AEP Load Management Application; AEP Load Management Manual Presentation: None. Publication: None. Reviewed by Service Area Director: Will Wilde, Water Utilities Director, April 18, 2012.

APPENDIX A

STANDARD OFFER PROGRAM AGREEMENT

LOAD MANAGEMENT STANDARD OFFER PROGRAM AGREEMENT

This Load Management Standard Offer Program Agreement (the “Agreement”) is made and entered into by and between AEP TEXAS NORTH COMPANY, a Texas corporation (hereinafter “TNC”), and _______________________, (hereinafter “Project Sponsor”). Project Sponsor and TNC are sometimes referred to in this Agreement individually as a “Party” and collectively as the “Parties.”

WHEREAS, TNC has developed a Load Management Standard Offer Program (the “SOP”); and

WHEREAS, the SOP seeks to procure peak demand reduction through the interruption of electric load; and

WHEREAS, Project Sponsor has developed a plan for participation in the SOP through a set of proposed curtailments of interruptible load to produce a controllable and predictable amount of peak demand reduction for the current year performance period.

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

DEFINITIONS

1.1 “Baseline Demand Usage” is the benchmark used for calculating the Demand Savings during a Scheduled or Unscheduled Interruption. The Baseline Demand Usage shall be calculated by averaging the corresponding 60 minute periods for the Interruption Demand Usage from the four previous weekdays (Monday through Friday), excluding federal holidays and any weekday time periods involving an Interruption.

1.2 “Agreement Documents” shall mean 1) Project Sponsor’s approved on-line application (“Application”) and Customer Agreement, attached hereto as Attachment A and incorporated by reference herein, 2) the SOP Manual (“SOP Manual”), which is incorporated by reference herein, and 3) this Agreement together with any and all other exhibits, addenda, or amendments referenced in the Agreement Documents or made a part thereof in accordance with this Agreement; as the same may be amended from time to time. To the extent of any conflict between this Agreement and other Agreement Documents, the terms of this Agreement shall prevail.

1.3 “Capacity Interruption Incentive Rate” shall mean $15/kW (Option A), $35/kW (Option B), $25.00/kW (Option C or Option D) or $20/kW (Option E) per demand (kW) Interrupted.

1.4 “Customer” shall mean a TNC distribution customer that owns or leases facilities at a Project Site.

1.5 “Demand Savings” shall mean the difference between Baseline Demand Usage and Interruption Demand Usage. For the purpose of this Agreement, the use of the term Demand Savings may refer to Unscheduled Interruption Demand Savings and/or Scheduled Interruption Demand Savings, as appropriate.

1.6 “Estimated Demand Savings” shall mean: 1) the amount of demand that Project Sponsor proposes in the Application to save in a one-hour period during Summer Peak Demand Period through Interruptions that are implemented pursuant to the SOP and that TNC approves after review of the Application and receipt of all Customer Agreements, or 2) the amount of approved Scheduled or Unscheduled Interruption Demand Savings from the Interruption, whichever is less.

1.7 “IDR” shall mean interval data recorder.

1.8 “Incentive Budget” shall mean the amount of money budgeted by TNC in each calendar year of the SOP.

1.9 “Interruptible Load” shall mean the equipment, material, or systems at a Project Site that is identified in the Application as electric load that will be interrupted by the Customer at the request of TNC pursuant to the SOP.

1.10 “Interruption” shall mean shutting down the electrical operation of Interruptible Load at the request of TNC pursuant to the SOP.

1.11 “Interruption Demand Usage” shall mean the average demand that occurs during any one-hour (four 15-minute interval) period of an Interruption.

1.12 “Option A” shall include up to four (4) 4-hour Unscheduled Interruptions per Performance Period.

1.13 “Option B” shall include up to twelve (12) 4-hour Unscheduled Interruptions per Performance Period.

1.14 “Option C” shall include up to twelve (12) 2-hour Unscheduled Interruptions per Performance Period.

1.15 “Option D” shall include up to eight (8) 4-hour Unscheduled Interruptions per Performance Period.

1.16 “Option E” shall include up to eight (8) 2-hour Unscheduled Interruptions per Performance Period.

1.17 “Performance Period” shall mean the period from June 1 through September 30 for Options A, B and C, and shall mean the period from August 1 through September 30 for Options D and E of each calendar year of the SOP.

1.18 “Performance Period Payment” shall mean the payment made by TNC to Project Sponsor for Demand Savings, as calculated pursuant to Article 7.3 of this Agreement.

1.19 “Program Manager” shall mean the TNC representative assigned as the point of contact for the SOP as identified in Article 13.1 of this Agreement.

1.20 “Project Site” shall mean the location of a Customer’s Interruptible Load, as identified in the Application. For the purposes of this Agreement, multiple facilities representing Interruptible Load may be combined into one Project Site as long as they are connected to a single IDR meter. The total Interruptible Load at a Project Site must have a recorded demand history pattern of 500 kW or more and when interrupted in operation must result in a measurable and verifiable reduction in peak demand of at least 50 kW or more.

1.21 “Project Sponsor’s Contact Telephone Number(s)” shall be the telephone number(s) identified in the Application as the telephone number(s) that TNC will call to notify Project Sponsor of a required Interruption.

1.22 “PUCT” shall mean the Public Utility Commission of Texas.

1.23 “Scheduled Interruption” shall mean an Interruption that is pre-scheduled by TNC to occur at the beginning of the Performance Period in every calendar year of the SOP as a test to determine the magnitude of interruptible load available at the Project Site. A Scheduled Interruption shall be for a maximum duration of one (1) hour.

1.24 “Scheduled Interruption Demand Savings” shall mean the difference between the Baseline Demand Usage for a Scheduled Interruption and the Interruption Demand Usage for the same Scheduled Interruption.

1.25 “Summer Peak Demand Period” shall mean 1 p.m. Central Daylight Time to 7 p.m. Central Daylight Time on Monday through Friday during the months of June through September for Options A, B and C, and shall mean the period from August 1 through September 30 for Options D and E, excluding federal holidays.

1.26 “Unscheduled Interruption” shall mean an Interruption that is requested by TNC. Such request shall include start and end times of the Unscheduled Interruption. An Unscheduled Interruption shall be for a minimum duration of one (1) hour and shall not exceed a maximum duration of four (4)

hours. There shall be no more than four (4) Unscheduled Interruptions during any one calendar month of the Performance Period.

1.27 “Unscheduled Interruption Demand Savings” shall mean the amount of peak demand reduction used to calculate the Performance Period Payment in every SOP calendar year. The Unscheduled Interruption Demand Savings for each SOP calendar year will be the difference between: 1) the Interruption Demand Usage from the Unscheduled Interruption with the highest amount of Interruption Demand Usage, and 2) the Baseline Demand Usage for that same Unscheduled Interruption. If no Unscheduled Interruption occurs during a SOP calendar year, then the Unscheduled Interruption Demand Savings for that SOP calendar year will mean the Estimated Demand Savings amount.

1.28 “Verification Process” shall mean the process described in Article VI of this Agreement wherein TNC calculates and verifies Baseline Demand Usage, Interruption Demand Usage, and Demand Savings.

ARTICLE II - TERM AND TERMINATION

2.1 The term of this Agreement shall commence on the date of execution by TNC (the “Effective Date”) and, unless otherwise terminated as set forth herein, shall continue in force and effect until September 30, 2012 or until payment by TNC of the Performance Period Payment due pursuant to Article VII of this Agreement, whichever is later; provided, however, that the provisions in this Agreement related to confidentiality, warranties, indemnity, audits and records, and intellectual property will survive termination.

2.2 Notwithstanding anything to the contrary, TNC reserves the right to terminate this Agreement and the SOP at any time, for any reason. Termination at will by TNC shall not relieve the parties of any obligations occurring prior to the date of termination.

ARTICLE III - WARRANTIES AND REPRESENTATIONS

3.1 By executing this Agreement, Project Sponsor warrants and represents that it is aware of, is in compliance with, and will continue to comply for the term of this Agreement with, all of the Agreement Documents and all applicable laws and regulations related to the SOP.

3.2 Project Sponsor warrants and represents that the Project meets all federal, state, and local regulatory requirements, including:

The Project will result in consistent and predictable peak demand savings over the contract term period;

The Application disclosed all potential adverse environmental or health effects associated with the Project, if any;

The Project will not result in negative environmental or health effects; and

The Project would not have been implemented in the absence of the SOP.

3.3 Project Sponsor acknowledges that it received a copy of the SOP Manual prior to submission of its Application. Project Sponsor warrants and represents that its participation in the SOP has at all times been in compliance with, and will continue to comply for the term of this Agreement with, the procedures and conditions set forth in the SOP Manual and that any failure to comply therewith may be treated as a breach of this Agreement notwithstanding the fact that such failure occurred prior to the execution of this Agreement. Project Sponsor also acknowledges that it meets or exceeds all of the qualifications required to participate in the SOP as described in the SOP Manual and that failure to meet the qualifications therein may be treated as a breach of this Agreement. Procedures or conditions set forth in the SOP Manual may only be waived or modified by written agreement of the parties. Any such Agreement shall be attached hereto and incorporated herein for all purposes.

3.4 Project Sponsor warrants and represents it may be limited to 20% of the Incentive Budget for any calendar year of the SOP.

3.5 Project Sponsor warrants and represents that any relevant Agreement(s) between a Customer and the Customer’s retail electric provider concerning electric service to Interruptible Load do not prohibit or inhibit Interruptions.

3.6 Project Sponsor agrees to verify that the Curtailable Load that is being used in this Application will not be used in any other Curtailable Load or demand response program during the Summer Peak Demand Period of the Customer Agreement. This can include, without limitation, any ERCOT, PUCT, or any other program that is currently available. Project Sponsor will notify TNC within 15 business days of any change in the status of the Curtailable Load or its inclusion in another demand response program. Failure to notify TNC of any changes in the contracted load can result in the termination of the Program participation. This does not prohibit a Project Sponsor from contracting their existing and/or future electric loads into other programs. TNC reserved the right to cancel any Program participation when that contracted load has been enrolled in any other competing Curtailable Load or demand response program.

ARTICLE IV - CUSTOMER AGREEMENT

4.1 The receipt by TNC of a Customer Agreement concerning every Customer associated with every Project Site is a condition precedent to the effectiveness of this Agreement. TNC will not award incentive payments related to an Interruption at a Project Site if every Customer associated with that Project Site did not sign a Customer Agreement prior to the Interruption.

ARTICLE V - PROJECT IMPLEMENTATION

5.1 Project Sponsor agrees on and after the Effective Date to use all reasonable efforts to implement the Project without undue delay and otherwise in accordance with the terms of the Agreement Documents. To the extent of any conflict between this Agreement and other Agreement Documents, the terms of this Agreement shall prevail.

5.2 The Project will be implemented in calendar year 2012 and may be continued or discontinued after that date.

5.3 One (1) Scheduled Interruption shall be required to be implemented by Project Sponsor at each Project Site at the beginning of the Performance Period in each calendar year of the SOP. The Scheduled Interruption shall be for a maximum duration of one (1) hour.

5.4 All Interruptions shall be implemented at the time and for the duration specified by TNC.

5.5 TNC will notify Project Sponsor at least one (1) hour prior to the required start-time of any Interruption by calling the Project Sponsor’s Contact Telephone Number(s). TNC may utilize a messaging system to provide the notice required by this Article 5.5. A representative of Project Sponsor must be available to personally answer calls made to the Project Sponsor’s Contact Telephone Number(s) during the Summer Peak Demand Period.

5.6 Project Sponsor may change the Project Sponsor’s Contact Telephone Number(s) by providing notice to the Program Manager of the new Project Sponsor’s Contact Telephone Number(s) a minimum of two business days prior to the date that the new Project Sponsor’s Contact Telephone Number(s) is to become effective. In order for notice of a new Project Sponsor’s Contact Telephone Number(s) to be valid, Project Sponsor must verify that Program Manager has actually received such notice by the above-mentioned deadline.

5.7 An Unscheduled Interruption shall be for a minimum duration of one hour to a maximum duration of either two hours (Option C or E) or four hours

(Option A, B or Option D). There shall be no more than four (4) Unscheduled Interruptions during any one calendar month of the applicable Performance Period.

ARTICLE VI - VERIFICATION PROCESS

6.1 TNC shall calculate and verify the Baseline Demand Usage, Interruption Demand Usage, and Demand Savings for each Interruption after the Program Manager receives the IDR data related to the Interruption.

6.2 The data used to calculate the Baseline Demand Usage, Interruption Demand Usage, and Demand Savings will be the data from IDR meters that are read, reviewed, and approved by TNC.

ARTICLE VII - INCENTIVE PAYMENTS

7.1 TNC agrees to make an incentive payment to the Project Sponsor based upon the Demand Savings derived from the Project, as further discussed in this Article.

7.2 The applicable incentive rates and cap on Demand Savings and the possible incentive cap are as follows:

Capacity Interruption Incentive Rate per kW ($/kW)

Option Performance Period Payment Incentive

Rate

Demand Savings Cap

Capacity Payment Cap

A $15.00/kW 2,667 kW $40,000 B $35.00/kW 1,143 kW $40,000 C $25.00/kW 1,660 kW $40,000 D $25.00/kW 1,660 KW $40,000 E $20.00/kW 2,000 kW $40,000

7.3 Unscheduled Interruptions - After the conclusion of the Performance Period and completion of the Verification Process for the SOP Year, TNC shall pay the Project Sponsor the Performance Period Payment. TNC will typically make the Performance Period Payment within thirty (30) days after the completion of the final Verification Process of the Performance Period. If the Unscheduled Interruption Demand Savings are equal to or less than the Estimated Demand Savings, then the Performance Period Payment will be calculated using the following equation:

Performance Period Payment = Performance Period Payment Incentive Rate x Unscheduled Interruption Demand Savings

If the Unscheduled Interruption Demand Savings are greater than the Estimated Demand Savings, then the Performance Period Payment will be calculated using the following equation:

Performance Period Payment = Performance Period Payment Incentive Rate x Estimated Demand Savings

7.4 Notwithstanding anything to the contrary, TNC may, in its sole discretion, revise the calculation of the Performance Period Payment to allow payment to Project Sponsor for an amount of Peak Demand Reduction that exceeds the amount of Estimated Demand Savings.

7.5 The Performance Period Payment in a SOP year may be limited to 20% of the Incentive Budget for that SOP year.

7.6 TNC’s Incentive Payment to the Project Sponsor is expressly and specifically conditioned upon TNC receiving all required notices, submittals and materials from Project Sponsor within the applicable period specified in this Agreement. Failure by Project Sponsor to deliver any required notice, submittal, or material within the applicable period specified in this Agreement shall be deemed a material breach of this Agreement.

ARTICLE VIII - INSURANCE

8.1 Project Sponsor represents and agrees that it and its subcontractors will carry all statutorily required insurance for the protection of its employees and that each of its subcontractors will carry such insurance for the protection of their respective employees.

ARTICLE IX - INDEMNITY

9.1 PROJECT SPONSOR AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS TNC, AND ANY INDIVIDUAL, CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, ASSOCIATION, TRUST, OR OTHER BUSINESS ORGANIZATION OF ANY KIND DIRECTLY OR INDIRECTLY CONTROLLING, CONTROLLED BY, OR UNDER COMMON CONTROL WITH TNC AND ITS AND THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, PARTNERS, OFFICERS, DIRECTORS, MANAGERS, TRUSTEES, INCORPORATORS, AGENTS, ATTORNEYS, CONSULTANTS, SERVANTS, REPRESENTATIVES, AND EMPLOYEES FROM AND AGAINST ANY CLAIMS, CAUSES OF ACTION, SUITS, JUDGMENTS, LOSSES, DAMAGES AND LIABILITIES OF ANY KIND INCLUDING ALL EXPENSES OF LITIGATION, COSTS OF COURT AND/OR ALTERNATIVE DISPUTE RESOLUTION, ATTORNEYS' FEES AND EXPERT WITNESS FEES (WHETHER THE SAME ARE BASED IN CONTRACT, TORT, INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE) FOR

INJURIES, DEATH OR PROPERTY DAMAGES OR LOSS (INCLUDING INJURIES, DEATH OR PROPERTY DAMAGES SUFFERED BY PROJECT SPONSOR OR ITS AGENTS, EMPLOYEES OR CONTRACTORS) WHICH OCCURRED, OR ARE ALLEGED TO HAVE OCCURRED DIRECTLY AS A RESULT OF (i) PROJECT SPONSOR'S OR ITS SUBCONTRACTOR'S PARTICIPATION IN ANY STAGE OF THE SOP; (ii) AN ACT OR OMISSION OF PROJECT SPONSOR IN OR COLLATERAL TO ITS PERFORMANCE OF WORK OR SERVICES UNDER OR IN CONNECTION WITH THIS AGREEMENT; OR (iii) ANY DEFECT (INCLUDING A DESIGN OR MANUFACTURING DEFECT OR THE FAILURE TO PROVIDE PROPER WARNING OR INSTRUCTIONS FOR USE) IN OR MALFUNCTION OF OR FINDING OF STRICT LIABILITY IN TORT ATTRIBUTABLE TO ANY MEASURE PROVIDED UNDER OR IN CONNECTION WITH THIS AGREEMENT. THIS INDEMNITY OBLIGATION SPECIFICALLY INCLUDES ANY CLAIMS, CAUSES OF ACTION, LAWSUITS, JUDGMENTS, LOSSES, DAMAGES AND LIABILITY OF EVERY KIND, INCLUDING ALL EXPENSES OF LITIGATION, COSTS OF COURT AND/OR ALTERNATIVE DISPUTE RESOLUTION, ATTORNEYS' FEES AND EXPERT WITNESS FEES (WHETHER THE SAME ARE BASED IN CONTRACT, TORT, INCLUDING NEGLIGENCE, OR STRICT LIABILITY OR OTHERWISE) ALLEGING TNC'S NEGLIGENCE, GROSS NEGLIGENCE OR STRICT LIABILITY REGARDLESS OF WHETHER SUCH NEGLIGENCE, GROSS NEGLIGENCE OR STRICT LIABILITY IS A JOINT AND CONCURRING CAUSE OF THE INJURIES, DEATH OR PROPERTY DAMAGE. THIS PROVISION SHALL NOT APPLY TO CLAIMS, CAUSES OF ACTION, SUITS, JUDGMENTS, LOSSES, DAMAGES AND LIABILITIES TO THE EXTENT CAUSED BY THE NEGLIGENCE OF TNC IN THE CONDUCT OF TNC’S ON-SITE INSPECTION OF THE PROJECT SITE PURSUANT TO THIS AGREEMENT.

9.2 IN ADDITION TO THE INDEMNITIES AND OTHER PROTECTIONS

PROVIDED UNDER THIS ARTICLE IX, PROJECT SPONSOR HEREBY AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS TNC, AND ANY INDIVIDUAL, CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, ASSOCIATION, TRUST, OR OTHER BUSINESS ORGANIZATION OF ANY KIND DIRECTLY OR INDIRECTLY CONTROLLING, CONTROLLED BY, OR UNDER COMMON CONTROL WITH TNC AND ITS AND THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, PARTNERS, OFFICERS, DIRECTORS, MANAGERS, TRUSTEES, INCORPORATORS, AGENTS, ATTORNEYS, CONSULTANTS, SERVANTS, REPRESENTATIVES, AND EMPLOYEES FROM AND AGAINST ANY CLAIMS, CAUSES OF ACTION, SUITS, JUDGMENTS, DAMAGES, LIABILITIES, EXPENSES, CONTRIBUTIONS, REMEDIATION OR CLEANUP COSTS, OR OTHER LOSSES OF ANY KIND INCLUDING ALL EXPENSES OF LITIGATION,

COSTS OF COURT AND/OR ALTERNATIVE DISPUTE RESOLUTION, ATTORNEYS' FEES AND EXPERT WITNESS FEES (WHETHER THE SAME ARE BASED IN CONTRACT, TORT, INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE) ARISING FROM, ASSOCIATED WITH, OR RELATING IN ANY WAY TO:

9.2.1 ANY BREACH OF ANY REPRESENTATION, WARRANTY, OR

COVENANT OF PROJECT SPONSOR CONTAINED IN THIS AGREEMENT;

9.2.2 ANY VIOLATION OR ALLEGED VIOLATION OF ANY

FEDERAL, STATE OR LOCAL LAW, REGULATION, OR POLICY RESPECTING PROTECTION OF THE ENVIRONMENT, HEALTH, AND/OR SAFETY (HEREINAFTER “EHS LAWS”) ASSOCIATED WITH OR RELATED IN ANY WAY TO THE PROJECT;

9.2.3 ANY PROPERTY DAMAGE OR IMPAIRMENT OR ANY

PERSONAL INJURY ALLEGED TO BE ASSOCIATED WITH ANY EXPOSURE TO MATERIALS REGULATED UNDER ANY EHS LAW RELATING IN ANY WAY TO THE PROJECT; OR

9.2.4 ANY RELEASE OR THREATENED RELEASE OF ANY

HAZARDOUS SUBSTANCE OR OTHER MATERIAL OR SUBSTANCE REGULATED UNDER ANY EHS LAW RELATING IN ANY WAY TO THE PROJECT.

9.3 THE ENVIRONMENTAL INDEMNITY PRESCRIBED BY THIS ARTICLE

X SHALL APPLY REGARDLESS OF WHETHER THE CLAIMS ARISE FROM THE JOINT OR CONCURRENT NEGLIGENCE, GROSS NEGLIGENCE, STRICT LIABILITY IN TORT OR WILLFUL MISCONDUCT OF OR BREACH OF CONTRACT BY TNC, OR ANY INDIVIDUAL, CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, ASSOCIATION, TRUST, OR OTHER BUSINESS ORGANIZATION OF ANY KIND DIRECTLY OR INDIRECTLY CONTROLLING, CONTROLLED BY, OR UNDER COMMON CONTROL WITH TNC AND ITS AND THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, PARTNERS, OFFICERS, DIRECTORS, MANAGERS, TRUSTEES, INCORPORATORS, AGENTS, ATTORNEYS, CONSULTANTS, SERVANTS, REPRESENTATIVES, AND EMPLOYEES.

9.4 The representations, warranties, covenants, indemnities, and other

obligations or protections provided by Project Sponsor pursuant to this Article IX shall not be limited by time and shall survive the completion of

the Project or any other completion, expiration or termination of this Agreement.

ARTICLE X - COMPLIANCE WITH LAWS

10.1 Project Sponsor represents and warrants that prior to commencing implementation of the Project, Project Sponsor will, at its own cost and expense, obtain any and all permits, licenses, and/or other authorizations from governmental authorities as then may be required to in order to perform its obligations under this Agreement. If requested by TNC, Project Sponsor shall furnish to TNC copies of each such permit, license or other approval promptly following receipt thereof. Project Sponsor shall maintain in full force and effect all such governmental permits, licenses and other authorizations as may be necessary for the implementation of the Project in accordance herewith. Failure to maintain licenses, permits and other authorizations required to perform the work detailed in this Agreement constitutes a material breach of Project Sponsor’s obligations under this Agreement

10.2 Project Sponsor shall be responsible for all royalties, fees, or claims for any licensed, copyrighted or similarly protected intellectual property, device, process or procedure used, installed, or provided by it. Project Sponsor shall defend any suit that may be brought against TNC and shall hold TNC harmless from any liability, damages and costs, including without limitation attorneys’ fees, incurred by TNC arising from or related to infringement or alleged infringement of any intellectual property used by Project Sponsor or a Customer in the implementation of the Project.

10.3 All work performed by Project Sponsor or a Customer in connection with the implementation of the Project shall conform to all applicable laws, statutes, ordinances, rules, regulations, and decrees of any governmental or administrative body having jurisdiction over the SOP or any portion of the Project.

ARTICLE XI - DEFAULT AND REMEDIES

11.1 Each of the following events will be deemed to be an Event of Default hereunder:

(a) failure of Project Sponsor to perform its responsibilities in a timely manner or implement the Project in compliance with the Agreement Documents;

(b) failure of a representative of Project Sponsor to be available during all Summer Peak Demand Hours to personally answer a call from TNC to the Project Sponsor Contact Telephone Number concerning notice of an Interruption.

(c) Project Sponsor’s submission to TNC of any false, misleading or inaccurate information or documentation with respect to the Application, this Agreement, or Project Sponsor’s implementation of the Project, when Project Sponsor knew or reasonably should have known that such information was false, misleading or inaccurate;

(d) Project Sponsor’s assignment or subcontracting of all or part of the duties required under the Agreement Documents without the prior written consent of TNC; or

(e) failure of either party in a material fashion to perform or observe any of the material terms, conditions or provisions of the Agreement Documents, which failure materially adversely affects the other party.

If an Event of Default occurs, the non-defaulting party shall be entitled to exercise any and all remedies provided for by law or in equity, including the right to terminate this Agreement upon written notice to the other party. Termination shall be effective upon the receipt of properly served notice. Termination of this Agreement will not relieve the defaulting party of any obligations accruing prior to the event of termination.

ARTICLE XII - LIMITATION OF LIABILITY

12.1 EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT,

NEITHER PARTY NOR ANY INDIVIDUAL, CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, ASSOCIATION, TRUST, OR OTHER BUSINESS ORGANIZATION OF ANY KIND DIRECTLY OR INDIRECTLY CONTROLLING, CONTROLLED BY, OR UNDER COMMON CONTROL WITH A PARTY AND ITS AND THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, PARTNERS, OFFICERS, DIRECTORS, MANAGERS, TRUSTEES, INCORPORATORS, AGENTS, ATTORNEYS, CONSULTANTS, SERVANTS, REPRESENTATIVES, AND EMPLOYEES SHALL NOT BE LIABLE TO THE OTHER PARTY OR ANY CUSTOMER FOR ANY LOSSES, COSTS, INJURIES, LIABILITIES, EXPENSES (INCLUDING ATTORNEY’S FEES), OR CLAIMS FOR INCIDENTAL, SPECIAL, INDIRECT, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY NATURE CONNECTED WITH OR RESULTING FROM

(i) NEGOTIATION, EXECUTION, OPERATION, OR

TERMINATION OF THIS AGREEMENT; (ii) PERFORMANCE OR NON-PERFORMANCE OF ANY

COMMITMENT; OR

(iii) ANY ACTS, OMISSIONS, OR REPRESENTATIONS MADE BY THE OTHER PARTY IN CONNECTION WITH PERFORMING ANY OBLIGATION UNDER THIS AGREEMENT,

INCLUDING WITHOUT LIMITATION, CLAIMS IN THE NATURE OF LOST REVENUES, INCOME OR PROFITS, IRRESPECTIVE OF WHETHER SUCH CLAIMS ARE BASED UPON WARRANTY, NEGLIGENCE, STRICT LIABILITY, CONTRACT, OPERATION OF LAW OR OTHERWISE AND EACH PARTY SHALL PROTECT, INDEMNIFY AND HOLD THE OTHER PARTY HARMLESS FROM SAME.

12.2 BOTH PARTIES AGREE THAT, IN THE EVENT OF (i) ANY DISPUTE THAT ARISES OUT OF THE NEGOTIATION, EXECUTION, OPERATION, OR TERMINATION OF THIS AGREEMENT AND ITS SUBJECT MATTER, WHETHER THE DISPUTE SOUNDS IN CONTRACT OR TORT, OR AS A RESULT OF A CLAIMED STATUTORY OR REGULATORY VIOLATION, OR (ii) ANY OTHER CLAIM THAT MAY ARISE OUT OF THE RELATIONSHIP OF THE PARTIES, THE PREVAILING PARTY SHALL BE ENTITLED TO RECOVER REASONABLE ATTORNEYS' FEES, EXPERT WITNESS FEES, LITIGATION EXPENSES, AND COSTS OF COURT AND/OR ALTERNATIVE DISPUTE RESOLUTION FROM THE LOSING PARTY.

ARTICLE XIII - NOTICES

13.1 All notices from one party to the other will be deemed to have been delivered on the date actually delivered if hand delivered or sent by United States certified mail, return receipt requested, postage prepaid or sent or delivered by such other method as will ensure evidence of its receipt to the following addresses:

AEP: Project Sponsor: AEP Texas North Company Attn: Gary J. Throckmorton Attn: 910 Energy Dr. Abilene, TX 79602

13.2 Either party may change its address by written notice to the other in accordance with this Article XIII.

ARTICLE XIV - AMENDMENT

14.1 No amendment or modification of this Agreement shall be binding on either party unless it is in writing and signed by both parties. Amendments to this Agreement will be attached hereto and made a part hereof for all purposes.

ARTICLE XV - ALTERNATIVE DISPUTE RESOLUTION

15.1 BOTH PARTIES AGREE TO RESOLVE ANY AND ALL DISPUTES THAT ARISE OUT OF THE NEGOTIATION, EXECUTION, OPERATION OR TERMINATION OF THIS AGREEMENT AND ITS SUBJECT MATTER, WHETHER THE DISPUTE SOUNDS IN CONTRACT OR TORT, OR AS A RESULT OF A CLAIMED STATUTORY OR REGULATORY VIOLATION, OR ANY OTHER CLAIM WHICH MAY ARISE OUT OF THE RELATIONSHIP OF THE PARTIES, THROUGH ALTERNATIVE DISPUTE RESOLUTION TECHNIQUES. BOTH PARTIES AGREE TO FIRST ATTEMPT TO RESOLVE DISPUTES THROUGH MEDIATION. IF, HOWEVER, SUCH DISPUTES CANNOT BE RESOLVED THROUGH MEDIATION, BOTH PARTIES AGREE TO SUBMIT SUCH DISPUTES FOR RESOLUTION THROUGH BINDING ARBITRATION, TO BE CONDUCTED BY ONE QUALIFIED INDEPENDENT ARBITRATOR THAT IS MUTUALLY SELECTED BY BOTH PARTIES, IN ACCORDANCE WITH THE COMMERCIAL ARBITRATION RULES (“RULES”) OF THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) THEN IN EFFECT. IF THE PARTIES CANNOT AGREE UPON THE SELECTION OF THE ARBITRATOR, THEN EITHER PARTY MAY FILE ITS DEMAND WITH THE AAA AND THE ARBITRATION SHALL BE ADMINISTERED IN ACCORDANCE WITH ITS RULES. VENUE OF THE ARBITRATION SHALL BE THE VENUE SET FORTH IN SECTION 19.5 UNLESS THE PARTIES AGREE OTHERWISE. THIS BINDING ARBITRATION PROVISION SHALL NOT PROHIBIT OR RESTRICT EITHER PARTY FROM SEEKING EMERGENCY INJUNCTIVE OR OTHER EQUITABLE RELIEF IN THE DISTRICT COURTS OF THE COUNTY OF VENUE TO PRESERVE THE STATUS QUO. IF ANY SUCH RELIEF IS SOUGHT AND OBTAINED, THE MATTER WILL THEN BE IMMEDIATELY REFERRED TO ARBITRATION IN ACCORDANCE WITH THE TERMS OF THIS PROVISION FOR A HEARING ON THE MERITS OF THE RELIEF SOUGHT.

15.2 BOTH PARTIES AGREE THAT THE TERMS OF ANY AGREEMENT, SETTLEMENT, JUDGMENT OR AWARD RESULTING FROM ANY MEDIATION OR ARBITRATION PROCEEDINGS DESCRIBED IN SECTION 15.1 SHALL BE CONFIDENTIAL, AND THE PARTIES AGREE NOT TO DISCLOSE SUCH TERMS, OR ANY DRAFTS OR COMMUNICATIONS CONCERNING SUCH TERMS, TO ANY THIRD-PARTY EXCEPT AS FOLLOWS:

15.2.1 THE TERMS MAY BE DISCLOSED, BUT ONLY TO THE EXTENT REASONABLY NECESSARY, TO A PARTY’S ATTORNEYS, INSURERS, AGENTS, EMPLOYEES, AND ACCOUNTANTS, PROVIDED THAT THOSE PERSONS HAVE

AGREED TO KEEP SUCH INFORMATION CONFIDENTIAL AND NOT DISCLOSE IT TO ANY OTHER PERSON OR ENTITY; OR

15.2.2 THE TERMS MAY BE DISCLOSED TO A COURT OR TRIBUNAL IN CONNECTION WITH AN ACTION TO ENFORCE ANY AGREEMENT, SETTLEMENT, JUDGMENT OR AWARD RESULTING FROM ANY MEDIATION OR ARBITRATION PROCEEDING DESCRIBED IN SECTION 16.1; OR

15.2.3 THE TERMS MAY BE DISCLOSED TO OTHERS (i) PURSUANT TO AN APPROPRIATE COURT ORDER ENTERED AFTER EVERY OTHER PARTY TO THE AGREEMENT HAS BEEN GIVEN REASONABLE NOTICE AND AN OPPORTUNITY TO BE HEARD, OR (ii) IF REQUIRED BY A GOVERNMENTAL AGENCY AFTER EVERY OTHER PARTY TO THE AGREEMENT HAS BEEN GIVEN REASONABLE NOTICE AND AN OPPORTUNITY TO BE HEARD, OR (iii) WITH THE PRIOR WRITTEN APPROVAL OF EVERY OTHER PARTY TO THE AGREEMENT.

ARTICLE XVI - FORCE MAJEURE

16.1 Should either Party be rendered unable, either wholly or in part, by an event of Force Majeure, to fulfill its obligations under this Agreement, the obligation of the Party so rendered, that is affected by the event of Force Majeure, will be suspended only during the continuance of that inability. The Party so affected will give written notice of the existence, extent and nature of the Force Majeure to the other Party within forty-eight (48) hours after the occurrence of the event. The Party so affected will use its best efforts to remedy its inability as soon as possible and will provide the other Party with prompt notice when it is able to resume the performance of its obligations. Failure to give notice will result in the continuance of the affected Party’s obligation regardless of the extent of any existing Force Majeure.

16.2 The term “Force Majeure” as used in this Agreement will mean acts of God (except as excluded herein), strikes, lockouts, or other industrial disturbances, acts of public enemies, wars, blockades, insurrections, riots, epidemics, earthquakes, fires, priority allocations of pipe or other materials or orders, restraints or prohibitions by any court, board, department, commission or agency of the United States or of any State, any arrests and restraints, civil disturbances, explosions, and inability despite reasonable diligence to obtain materials essential to this Agreement. Rain, snow, ice or other adverse weather conditions will not be considered events of Force Majeure.

16.3 The term “Force Majeure” does not include: events or circumstances that affect the Project but do not prevent performance, including, but not limited to, requirements, actions or failures to act on the part of governmental authorities (including the adoption or change in any rule or regulation or environmental constraints lawfully imposed by federal, state or local governmental bodies); changes in market conditions; and events or conditions attributable to normal wear and tear or flaws randomly experienced in materials and equipment and their assembly and operation, unless such events and conditions are caused by an occurrence which would fit the definition of Force Majeure set forth in Article 16.2 of this Agreement.

16.4 In no event will any Force Majeure extend this Agreement beyond its stated term.

16.5 If any Force Majeure causes a reduction in the Estimated Demand Savings, the Parties may mutually at any time agree to reduce the Estimated Demand Savings for the duration of the Force Majeure event.

ARTICLE XVII - ARTICLE XVIII – NONDISCLOSURE

17.1 If either Party hereto provides confidential information to the other in writing and identified as such, the receiving Party shall protect the confidential information from disclosure to third parties. Neither Party shall be required to hold confidential any information which (i) becomes publicly available other than through the recipient; (ii) is required to be disclosed by a governmental or judicial order, rule or regulation; (iii) is independently developed by the receiving Party as evidenced by written records; or (iv) becomes available to the receiving Party without restriction from a third party. These obligations shall survive expiration or termination of this Agreement.

17.2 Should any person or entity seek to legally compel a receiving Party (by

oral questions, interrogations, requests for information or documents, subpoena, civil investigative demands, regulation, statute or otherwise) to disclose any confidential information, the receiving Party will provide the disclosing Party prompt written notice so that the disclosing Party may seek a protective order or other appropriate remedy (including participating in any proceeding to which the receiving Party is a party, which receiving Party will use its reasonable business and legal efforts to permit). If, in the absence of a protective order, the receiving Party is, in the opinion of its legal counsel, compelled to disclose the confidential information, the receiving Party may disclose only such of the confidential information to the person or entity compelling disclosure as is required by applicable law, order, regulation or rule.

ARTICLE XVIII - INDEPENDENT CONTRACTOR

18.1 Project Sponsor will act as and be deemed to be an independent contractor. Project Sponsor will not act as, nor be deemed to be, an agent or employee of TNC. Project Sponsor will have the sole right to control and directly supervise the method, manner and details of the Project providing it is in accordance with the Agreement Documents.

ARTICLE XIX - MISCELLANEOUS

19.1 Project Sponsor will not assign, transfer or otherwise dispose of any of its obligations or duties without the prior written approval of TNC. Any assignment or transfer made without the express written approval of TNC will be null and void.

19.2 The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by either party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. No waiver by the parties hereto of any default or breach of any term, condition or covenant of this Agreement shall be deemed to be a waiver of any other breach of the same or any other term, condition or covenant contained herein.

19.3 The Agreement Documents constitute the entire Agreement between the parties with respect to the subject matter hereof and there are no express or implied warranties or representations upon which any party may rely beyond those set forth therein. The execution of this Agreement supersedes all previous agreements, discussions, communications and correspondence with respect to such subject matter.

19.4 In the event any provision of this Agreement is held to be void, unlawful, or otherwise unenforceable, that provision will be severed from the remainder of the Agreement and replaced automatically by a provision containing terms as nearly like the void, unlawful, or unenforceable provision as possible; and the Agreement, as so modified, will continue to be in full force and effect.

19.5 This Agreement will be governed by, construed and enforced in accordance with the laws of the State of Texas. Except for matters and disputes with respect to which the PUCT is the sole proper venue for dispute resolution pursuant to applicable law or this Agreement, the Parties agree that the proper venue and jurisdiction for any cause of action relating to the Agreement will be in Travis County, Texas and the Parties hereto submit to the exclusive jurisdiction of the federal and state courts located in such county with respect to such matters and disputes.

19.6 Project Sponsor shall not use TNC’s corporate name, trademark, trade name, logo, identity or any affiliation for any reason, including to solicit customers for participation in the Project, without TNC’s prior written consent. Notwithstanding anything to the contrary, Project Sponsor may use TNC’s corporate name in the Customer Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives.

(PROJECT SPONSOR)

AEP TEXAS NORTH COMPANY

By: By:

Name: Billy G. Berny Name:

Title: Manager, EE/DR Programs

Title:

Date: Date:

Load Management

Standard Offer Program

Manual 2012

2012 Load Management Standard Offer Program i

TABLE OF CONTENTS

1 INTRODUCTION ............................................................................................................ 1

1.1 BACKGROUND .............................................................................................................................. 2 1.2 PROGRAM GOALS ........................................................................................................................ 2 1.3 ELIGIBILITY .................................................................................................................................. 2

2 PARTICIPATION PROCESS .............................................................................................. 5

2.1 PARTICIPATION PHASES ............................................................................................................... 5 2.2 ADDITIONAL PROGRAM INFORMATION ........................................................................................... 5

3 APPLICATION .............................................................................................................. 7

3.1 PROJECT INFORMATION ................................................................................................................ 7 3.2 ELECTRONIC SUBMITTAL .............................................................................................................. 8 3.3 HARDCOPY SUBMITTAL ................................................................................................................ 9 3.4 CONFIDENTIALITY ....................................................................................................................... 10 3.5 SUBMISSION OF FALSE INFORMATION .......................................................................................... 10

4 STANDARD CONTRACT ................................................................................................ 11

5 INTERRUPTIONS ......................................................................................................... 12

5.1 SCHEDULED INTERRUPTION ........................................................................................................ 12 5.2 UNSCHEDULED INTERRUPTIONS .................................................................................................. 12

6 VERIFICATION PROCESS.............................................................................................. 13

6.1 STEPS OF THE VERIFICATION PROCESS ...................................................................................... 13

7 INCENTIVE BUDGETS & PAYMENTS .............................................................................. 16

7.1 AVAILABLE BUDGET ................................................................................................................... 16 7.2 INCENTIVES ............................................................................................................................... 17 7.3 INCENTIVE LIMITATIONS .............................................................................................................. 17 7.4 PAYMENTS ................................................................................................................................ 18

8 APPENDICES ............................................................................................................. 19

APPENDIX A STANDARD OFFER PROGRAM AGREEMENT ATTACHMENT A - CUSTOMER AGREEMENT

This manual summarizes the goals, pricing and application process of the American Electric Power (AEP) Texas North Company (TNC) Load Management Standard Offer Program (SOP). It includes information about eligibility requirements, incentive payments, the participation process, and descriptions and samples of enrollment materials developed by TNC for participants. The information included in this manual is subject to change. The latest information and application forms can be found on the AEP website at www.AEPefficiency.com by selecting the Load Management SOP link.

Chapter 1, Introduction

2012 Load Management Standard Offer Program 1

LM 1 Introduction

Introduction American Electric Power (AEP) owns more than 36,000 megawatts of generating capacity in the United States and is the nation's largest electricity generator. AEP is also one of the largest electric utilities in the United States, with more than 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.

The 2012 AEP Texas North Company (TNC) Load Management Standard Offer Program (the “SOP”) was developed to pay incentives to energy efficiency service providers (EESPs), (e.g., contractors, energy service companies, retail electric providers, or customers) for load interruptions of electric consumption on short notice during peak demand periods. Incentives are based on verified demand savings that occur at TNC distribution customer’s site as a result of an interruption.

To participate in the SOP, sponsoring participants (“Project Sponsors”) undergo an application process and then enter into an Agreement (the “Agreement”) with TNC. A sample Agreement is included as Appendix A of this manual. Under the Standard Agreement, the Project Sponsor agrees to deliver demand savings to TNC from a TNC distribution customer, using load that is subject to load management curtailment activities (“Interruptible Load”) at that customer’s site. TNC will verify actual demand savings from interruptions (the “Verification Process”) and payment will be submitted to the Project Sponsor based on the verified savings achieved by the interruptions.

Project Sponsors must commit Interruptible Load to the SOP. During the Summer Peak Demand Period of each year, the SOP requires one scheduled 1-hour test interruption and up to four (4) unscheduled interruptions during any one of the calendar months during the Performance Period for most Options. The Unscheduled Interruptions may have a duration of a minimum of one hour to a maximum of either two or four hours. The Incentive Payments for Unscheduled Interruptions are in Chapter 7.

This chapter provides a general introduction to the SOP, including an overview of SOP features and background information on TNC’s energy efficiency initiatives. All SOP information, including application materials, is available via the Internet at www.AEPefficiency.com. TNC will begin accepting applications starting March 19, 2012 at 10 a.m. Central Daylight Time.



1.1 Background

The SOP was developed to comply with state energy efficiency goals. The Texas Legislature passed Senate Bill 7 (SB7) in 1999, which restructured the state’s electric utility industry. The law calls for each investor-owned utility to meet certain goal reductions in its growth in system demand annually through savings achieved by energy efficiency programs.

1.2 Program Goals

The main goal of the SOP is to reduce summer peak demand in the TNC service territory in a cost-effective manner and to reach the demand savings goals established by SB7 and Public Utility Commission of Texas (PUCT) regulations. There are secondary program goals that are reflected in the SOP rules and procedures that include:

Encourage private sector delivery of energy demand savings during peak demand time on the Electric Reliability Council of Texas (ERCOT) transmission and distribution system of TNC.

Create a simple and streamlined program process to stimulate strong program participation from energy efficiency service providers.

Minimize the burden of measurement and verification requirements for the SOP by implementation of a simple Verification Process by TNC.

1.3 Eligibility

1.3.1 Project Sponsor Eligibility

Any entity meeting the participation requirements that identifies Interruptible Load at a facility that is served by TNC and that has a minimum demand of 500 kW or more is eligible to participate in the SOP as a Project Sponsor. Eligible Project Sponsors include:

National or local energy efficiency service providers (EESPs). Retail electricity providers (REPs). Individual customers that identify Interruptible Load in their own facilities. To ensure that the SOP incentive budget is allocated to projects that are likely to meet with success, all Project Sponsors will be required to demonstrate a commitment to fulfilling SOP objectives and competency in completing their proposed project. Project Sponsors may be required to submit information concerning their experience and competency as part of the application process. A more specific description of the application requirements is located in Section 3.1 - Project Sponsor Information.



1.3.2 Project Eligibility

A project site is defined in the SOP as having Interruptible Load with estimated demand savings during the Summer Peak Demand Period. Project Sponsors may include more than one project site in their applications. All projects must meet the following requirements:

Each project site must include total estimated demand savings of at least 50 kW during the Summer Peak Demand Period for most Options. TNC defines the Summer Peak Demand Period as the hours occurring between 1 p.m. and 7 p.m. Central Daylight Time on Monday through Friday during the months of June through September, excluding federal holidays.

A single project site may involve identifying Interruptible Load at more than one customer facility, so long as the demand savings from interruptions at the facilities are reported using a single Interval Data Recorder (IDR) that is monitored and/or approved by TNC. For example, Interruptible Load at a customer’s site may have multiple buildings, with each building individually metered for electricity consumption. However, if all buildings and meters are tied to one IDR, then they may be combined into a single project site.

1.3.3 Interruptible Load Eligibility

The SOP does not specify eligible Interruptible Load in order to provide Project Sponsors flexibility in packaging services. Project Sponsors may propose the inclusion of any Interruptible Load in a project, as long as it meets the following requirements:

Interruptible Load must produce demand savings through an interruption of electrical consumption during the Summer Peak Demand Period.

Project Sponsors must commit to making the Interruptible Load available during the Program Year.

Electric Service Agreements for service to Interruptible Load between customers and their Retail Electric Providers may not prevent or inhibit interruptions.

Project Sponsor agrees to verify that the Curtailable Load that is being used in this Application will not be used in any other Curtailable Load or demand response program during the duration of the Customer Agreement. This can include, without limitation, any ERCOT, PUCT, or any other program that is currently available. Project Sponsor will notify TNC within 15 business days of any change in the status of the Curtailable Load or its inclusion in another demand response program. Failure to notify TNC of any changes in the contracted load can result in the termination of the Program participation. This does not prohibit a Project Sponsor from contracting their existing and/or future electric loads into other programs. TNC reserved the right to cancel any Program participation when that contracted load has been enrolled in any other competing Curtailable Load or demand response program.

The following Interruptible Load is excluded from consideration for this SOP:

Interruptible Load that results in negative environmental or health effects.



Interruptible Load that receives an incentive through any other energy efficiency program offered by TNC.

Project incentives will be paid only for demand savings directly related to end-use equipment curtailed under the project.

Eligible Interruptible Load to be considered is load listed on the project application that will be available for curtailment. This could be building(s) and/or individual end-use equipment that consumes electric energy during the Summer Peak Demand Period. TNC will consider any and all Interruptible Load that consumes electrical energy for participation in the SOP.

Chapter 2, Participation Process


LM 2 Participation Process

2 Overview

This chapter provides information on participating in the SOP including the program process and required submittals. TNC will start accepting applications on March 19, 2012 at 10 a.m., North Daylight Time on a first-come, first-served basis. Applications will continue to be accepted for the SOP until all funds have been committed (see Chapter 7 - Incentive Payments). After this time, submitted applications will be placed on a waiting list. Projects on a waiting list will not be carried over into the next program year.

2.1 Participation Phases

Participation in the SOP involves five basic phases:

Project Sponsor submits an application (the “Application”) in order for TNC to review the proposed project for feasibility and to tentatively reserve incentive funding.

Project Sponsor enters into a Standard Agreement with TNC. Project Sponsor performs Scheduled and Unscheduled Interruptions when notified

by TNC. TNC verifies demand savings from Scheduled and Unscheduled Interruptions (the

“Verification Process”). TNC pays the Project Sponsor for Unscheduled Interruptions (the “Performance

Period Payment”).

2.2 Additional Program Information

2.2.1 Program Website

The SOP website at www.AEPefficiency.com will serve as the primary source for all updated SOP information and materials. The website will include:

Information describing the program design and requirements. Contact information for the program. Submittal forms. The SOP Manual.

Chapter 2, Participation Process


2.2.2 Program Promotion and Outreach

TNC will conduct outreach activities for this SOP by conducting a workshop as requested by Project Sponsors. Notices of the workshop will be sent to potential Project Sponsors if scheduled.

Chapter 3, Application


LM 3 Application

3Application Overview

A Project Sponsor’s first formal step in participating in the SOP is the submission of an Application to TNC through the on-line database. By submitting the Application, the Project Sponsor is requesting that TNC review the Application and, if approved, reserve funding for the Project Sponsor based on the proposed level of demand savings in the Application.

The Application will be available through the on-line database at the AEP website: www.AEPefficiency.com. Applications will be reviewed on a first-come, first-served basis until all incentive funding has been committed.

Project Sponsor Information

All Project Sponsors are required to provide TNC with specific business information including the following:

Description of the Project Sponsor firm. Basic description of the Project Sponsor employees who will be responsible for the

operation of the project. Evidence that Project Sponsor and its subcontractors possess all required

insurance. The Project Sponsor’s Taxpayer Identification Number so that TNC can properly

account for any incentive payments made to the Project Sponsor.

3.1 Project Information

Project Sponsors must provide information about the scope of their proposed project(s). The type of information requested includes the following:

1. Customer Information - Information about the customer(s) and associated load(s) the Project Sponsor proposes to include as Interruptible Load. If a Project Sponsor’s proposed project involves multiple customers, the Project Sponsor should submit separate information for each customer. The following information shall be submitted:

Customer name; Customer address; Site address; Customer business description; and Site contact name(s), phone number, fax number and e-mail address that will

allow TNC to contact customer during Summer Peak Demand Periods, if necessary.



2. TNC Texas Distribution Account Number (ESI ID) – This number can be identified on the customer’s electric bill as a 17 digit number, ex. ESI ID: 10032789400012345. In order to verify if a customer is an TNC customer, the Project Sponsor should look for the distinguishing number beginning with 100327894….., which represents TNC.

3. Site Profile(s) - A profile must be completed for each customer site and shall include estimated demand savings for the site, building type(s), operating schedules, and any additional site information that Project Sponsor believes is appropriate.

4. Management Plan - This information includes the design, implementation, operation, and management of the project.

5. Interruptible Load - A description of Interruptible Load and processes for curtailment at each customer site. The description must include the estimated kW reductions for each site during a one-hour peak demand period interruption.

6. Project Sponsor Contact Telephone Number - This is the telephone number at which TNC will call Project Sponsor to provide advance notification of a required interruption. A representative of Project Sponsor must be available at this number at all times during Summer Peak Demand Period. Should Project Sponsor need to change this contact telephone number during the term of the project, it must provide a new contact telephone number to TNC at least two business days prior to the date the new number will take effect.

7. Project Sponsor Contact Name(s) and Information - Identification and information related to one or more representative(s) of the Project Sponsor who are responsible for implementation of the project. Phone number(s), pager number(s), mobile phone number(s), fax number(s), and email address(es) should be provided if available to allow TNC to communicate with Project Sponsor concerning the SOP.

8. Customer Agreement - This agreement is required from customers contracting with a Project Sponsor and from customers who act as their own Project Sponsor. A Customer Agreement must be submitted within 15 calendar days after the date the electronic Application is submitted. A copy of the Customer Agreement is included in this manual as Appendix A, Attachment A.

9. Supporting Documentation - Project Sponsors may submit additional supporting documentation that they determine is relevant for any project.

As part of the Application review, TNC will review the feasibility of the proposed Interruptible Load and the accuracy of the demand savings estimates. TNC may request clarification of, or additional information about, any item in the Application. Project Sponsors must respond to such requests within the time period specified by TNC. If the clarification or additional information is not forthcoming in a timely manner, TNC may choose to discontinue its evaluation of the Application.

3.2 Electronic Submittal

Electronic submittal of the Application will be through the On-line Database.



For questions and other comments regarding this SOP you may contact the TNC Program Manager by email at [email protected] or by phone at 332-674-7341.

3.3 Hardcopy Submittal

TNC must receive hard copies of the Standard Offer Program Agreement and the Standard Offer Program Customer Agreement as described below.

Table 2.1: Addresses to obtain and submit program materials

Material Mechanism Address or location Obtain Enrollment Material Website/Data Base www.AEPefficiency.com

Submit Application and all required supporting documents that are amenable to electronic submittal

Data Base [email protected]

Standard Offer Program Agreement Mail

TNC – LM SOP Attn: Gary J. Throckmorton 910 Energy Dr. Abilene, TX 79602

Standard Offer Program Customer Agreement Mail

TNC – LM SOP Attn: Gary J. Throckmorton 910 Energy Dr. Abilene, TX 79602

Program Questions or Contact Program Manager

Email [email protected]

mailto:@aep.com



3.4 Confidentiality

The SOP is subject to oversight by the PUCT, which may request a copy of any program materials that TNC receives. Sensitive company and project information submitted by the Project Sponsor to TNC such as financial statements will be treated confidentially to the extent possible. However, TNC will have no liability to any Project Sponsor or other party as a result of public disclosure of any information submitted by the Project Sponsor.

3.5 Submission of False Information

TNC reserves the right to discontinue its evaluation of all submittals and terminate all Agreements of a Project Sponsor that submits false, misleading, or incorrect information.

Chapter 4, Standard Contract


LM 4 Standard Agreement

4Standard Contract Overview

Once an Application has been approved, the Project Sponsor shall print, execute and submit a Standard Agreement which will be similar to the sample attached as Appendix A to this manual. The terms of the Standard Agreement will be non-negotiable unless unique circumstances merit and require revision, in the sole discretion of TNC. In order to incorporate each Project Sponsor’s project information, the approved Application will be included as an attachment to the Standard Agreement and will become legally binding as part of the Standard Agreement.

Once the Standard Agreement is signed between the Project Sponsor and TNC, the Project Sponsor’s primary obligation will be to perform the following:

Perform interruption curtailments of Interruptible Loads when notified by TNC. Monitor projects during Scheduled Interruptions and maintain the minimum duration

for the event. Monitor projects during Unscheduled Interruptions and maintain the minimum

duration for the event. The signed Standard Agreement will obligate TNC to:

Perform the Verification Process. Verification Process activities will be conducted for each project to measure the demand savings after each interruption.

Make payment (the “Performance Period Payment”), based on Verified Demand Savings related to the Unscheduled Interruption(s). The Performance Period Payment will be made after the end of the Performance Period.

Chapter 5, Interruptions


LM 5 Interruptions

5Interruptions Overview

To achieve the goal of assisting the utility during peak demand periods, TNC has developed five (5) interruption options from which the Customer can choose (Option A, Option B, Option C, Option D or Option E) to participate in. Option A includes up to four (4) Unscheduled Interruptions per Performance Period, Option B and Option C include up to twelve (12) Unscheduled Interruptions per Performance Period and Option D and Option E include up to eight (8) Unscheduled Interruptions per Performance Period. In addition, a separate interruption “Scheduled Interruption” (for testing purposes) will be conducted prior to the Performance Period for one (1) hour maximum.

The TNC Program Manager will notify Project Sponsors in advance when curtailments will need to be executed. The interruption notice will specify the begin- and end-time for the interruption. Interruptible Load must be able to be curtailed within a minimum of one hour of notification. Unscheduled Interruptions will be required upon request by TNC.

5.1 Scheduled Interruption

The SOP will have one 1-hour Scheduled Interruption at the beginning of the Summer Peak Demand Period. TNC will determine the date and notify Project Sponsors with sufficient lead time for planning. The Scheduled Interruption is for testing program participation in the event of a request by TNC during the Summer Peak Demand Period.

5.2 Unscheduled Interruptions

The SOP requires program participants to participate in one of the five (5) available options: Option A, Option B, Option C, Option D or Option E. An Unscheduled Interruption may occur upon request by TNC. TNC will notify Project Sponsors of an Unscheduled Interruption with at least one-hour advance notice of the start-time for the interruption. Interruptions may begin 15 minutes after the hour, 30 minutes after the hour, 45 minutes after the hour or on the hour.

The duration of an Unscheduled Interruption will be a minimum of one hour and a maximum of either two hours (Option C, Option E) or four hours (Option A, Option B or Option D). Starting times will occur between 1:00 p.m. and 6:00 p.m. Central Daylight Time. Ending times will occur between 2:00 p.m. and 7:00 p.m. Central Daylight Time.

After completion of all Unscheduled Interruption(s) of Interruptible Load and approval of all IDR data, TNC will pay the Project Sponsor the Performance Period Payment in or before November of the Program Year.

Chapter 6, Verification Process


LM 6 Verification Process

6Verification Process Overview

In order for TNC to measure participation of Interruptible Load projects, TNC shall perform Verification Process activities after each month in which an interruption occurs. Demand savings amounts will be based on actual, verified Interruptible Load curtailments.

6.1 Steps of the Verification Process

After each executed interruption has been performed and completed, TNC shall review the IDR data to verify actual kW demand savings. This process will be performed when TNC retrieves the IDR data during the month following the interruption. The file will be in a text format and will show the month, day, time, and consumption in kW. The IDR data will show 96 15-minute intervals per day, with a 12-month history for each ESI ID.

1. TNC will review the file for the appropriate project using the customer ESI ID.

2. TNC will establish the baseline for each Interruption by taking the load recorded for the period of time that coincides with the Interruption and averaging the demand during the four preceding weekdays. The demand average for that period over the four Peak Demand days shall set the baseline for each Interruption.

As an example, if a two hour Interruption occurred on Thursday, July 19, 2012 starting at 2:00 p.m., TNC would set the baseline by reading the IDR data from 2:15 p.m. (14:15) to 4:00 p.m. (16:00) for the previous four weekdays (Wednesday, July 18 - Friday, July 13) and would average the kW demand of these four days to establish the baseline.

3. TNC will take the average demand recording during the Interruption to calculate the amount of demand savings of that Interruption. The average demand will be subtracted from the baseline demand to determine the verified Demand Savings amount for that Interruption.

4. If more than one Unscheduled Interruption occurs during the Performance Period, the demand savings used to calculate the Performance Period Payment will be the weighted average Verified Demand Savings of all of the Interruptions during during the Performance Period.

5. In the event no Unscheduled Interruptions occur, the Demand Savings used to calculate the Performance Period Payment will either be the smaller of the Verified Demand Savings from the Scheduled Interruption or the demand savings estimated in the Project Sponsor’s Application.



Shown below is an example of how the Demand Savings will be calculated. The demand usage information for the Baseline Demand, the Scheduled and/or Unscheduled Interruption Demand will be obtained from an IDR meter at each participating customer site.

Example:

See Section 6.1.2: A two hour Unscheduled Interruption has been implemented on July 19, 2012, from 2:00pm – 4:00pm.

Baseline Demand (kW) Usage Data

Time Period 7/18/2012 7/17/2012 7/16/2012 7/13/2012 14:15 12,097 12,179 11,110 11,008 14:30 11,604 12,263 11,175 11,046 14:45 11,180 12,280 11,220 10,975 15:00 11,405 12,307 11,277 10,963 15:15 10,994 12,275 11,379 10,905 15:30 10,983 12,269 11,392 10,879 15:45 10,995 12,243 11,379 10,880 16:00 10,991 12,288 11,321 10,854

Average kW 11,271 12,263 11,282 10,939

Interruption Demand (kW) Usage Data

Time Period 7/19/2012 14:15 8,180 14:30 8,244 14:45 8,160 15:00 8,121 15:15 8,134 15:30 8,078 15:45 8,089 16:00 8,032

Average kW 8,130



Baseline Demand (kW) Usage Calculation 11,271 kW (7/18/12) + 12,263 kW (7/17/12) + 11,282 kW (7/16/12) + 10,939 kW (7/13/12) =

45,755 kW / 4 = 11,439 kW

This same process shall be applied to each Scheduled and/or Unscheduled Interruption for determining the Baseline Demand Usage.

Interruption Demand (kW) Usage 8,130 kW (7/19/12)

This is the average demand that occurs during all one-hour (four 15-minute intervals) periods of an interruption.

Demand Savings (kW) Calculation Once the Verification Process has been performed, the following formula will be used to determine the amount of verified Demand Savings that will be used to calculate incentive payments (using the above example):

Demand Savings = 3,309 kW =

Baseline Demand – Interruption Demand 11,439 kW – 8,130 kW

Chapter 7, Incentive Budgets & Payments


LM 7 Incentive Payments

7Incentive Budgets & Payments Overview

TNC will pay Project Sponsors the Performance Period Payment in or before November of the Program Year. In the event a Project Sponsor does not produce the demand savings as proposed in its Application, TNC will pay the Project Sponsor based on the Verified Demand Savings during the Performance Period.

TNC’s Incentive Payment to the Project Sponsor is expressly and specifically conditioned upon TNC receiving all required notices, submittals and materials from Project Sponsor within the applicable period specified in the Agreement. Failure by Project Sponsor to deliver any required notice, submittal, or material within the applicable period specified in the Agreement shall be deemed a material breach of the Agreement.

If Verified Demand Savings differ from the Demand Savings estimated in the Application, the IDR data recordings by TNC will take precedence over any other information. If actual, Verified Demand Savings are lower than those estimated in the Application, the associated reserved incentives may be adjusted accordingly, and excess incentive funds returned to the SOP budget. If actual, Verified Demand Savings are higher than those estimated in the Application, the incentive payments will be based on the Demand Savings estimated in the Application unless TNC, in its sole discretion, allows a Project Sponsor to upwardly adjust its estimated Demand Savings.

7.1 Available Budget

The incentive budget for calendar year 2012 is $189,410.



7.2 Incentives

The applicable Incentive Rates and cap on Demand Savings are as follows.



Rate

Demand Savings Cap


A $15.00/kW 2,667 kW $40,000 B $35.00/kW 1,143 kW $40,000 C $25.00/kW 1,600 kW $40,000 D $25.00/kW 1,600 kW $40,000 E $20.00/kW 2,000 kW $40,000

7.3 Incentive Limitations

To ensure that incentives are available to multiple energy service providers, a Project Sponsor may be limited to approximately 20% of the SOP incentive budget in a given Program year. Project



7.4 Payments

All Verification Process activities must be completed before the Project Sponsor will receive the associated Unscheduled Interruption Payment. After completion of the Unscheduled Interruption of Interruptible Load, approval of the IDR data recording, and verification of the Demand Savings, TNC shall pay the Project Sponsor the applicable Performance Period Payment. TNC will typically make the Performance Period Payment in or before November at the conclusion of the Performance Period and after TNC’s approval of the IDR data for the Program Year. The amount of the Performance Period Payment shall be calculated using the following formula:

Equation 1.2:

Performance Period Payment ($) = Performance Period Payment Incentive Rate x Verified Demand kW Savings*

In the event no Unscheduled Interruptions are performed, the Performance Period Payment will be calculated by multiplying the verified kW savings of the Scheduled Interruption* by the applicable Performance Period Payment Incentive Rate.

*NOTE: TNC will not be obligated to pay a Project Sponsor for Verified Demand Savings that exceed the amount of Estimated Demand Savings proposed in the Project Sponsor’s Application. However; if allowed by the SOP budget, and in TNC’s sole discretion, TNC may allow a Project Sponsor to revise its estimate of proposed Demand Savings and then pay a Project Sponsor based on this revised estimate of Demand Savings.

Chapter 8, Appendices


LM 8 Appendix

8Appendices APPENDIX A STANDARD OFFER PROGRAM AGREEMENT

ATTACHMENT A – CUSTOMER AGREEMENT

Appendix B, Standard Offer Program Agreement

APPENDIX A

STANDARD OFFER PROGRAM AGREEMENT

Standard Offer Program Agreement


LOAD MANAGEMENT STANDARD OFFER PROGRAM AGREEMENT

This Load Management Standard Offer Program Agreement (the “Agreement”) is made and entered into by and between AEP TEXAS NORTH COMPANY, a Texas corporation (hereinafter “TNC”), and _______________________, (hereinafter “Project Sponsor”). Project Sponsor and TNC are sometimes referred to in this Agreement individually as a “Party” and collectively as the “Parties.”

WHEREAS, TNC has developed a Load Management Standard Offer Program (the “SOP”); and

WHEREAS, the SOP seeks to procure peak demand reduction through the interruption of electric load; and

WHEREAS, Project Sponsor has developed a plan for participation in the SOP through a set of proposed curtailments of interruptible load to produce a controllable and predictable amount of peak demand reduction for the current year performance period.

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

DEFINITIONS

1.1 “Baseline Demand Usage” is the benchmark used for calculating the Demand Savings during a Scheduled or Unscheduled Interruption. The Baseline Demand Usage shall be calculated by averaging the corresponding 60 minute periods for the Interruption Demand Usage from the four previous weekdays (Monday through Friday), excluding federal holidays and any weekday time periods involving an Interruption.

1.2 “Agreement Documents” shall mean 1) Project Sponsor’s approved on-line application (“Application”) and Customer Agreement, attached hereto as Attachment A and incorporated by reference herein, 2) the SOP Manual (“SOP Manual”), which is incorporated by reference herein, and 3) this Agreement together with any and all other exhibits, addenda, or amendments referenced in the Agreement Documents or made a part thereof in accordance with this Agreement; as the same may be amended from time to time. To the extent of any conflict between this Agreement and other Agreement Documents, the terms of this Agreement shall prevail.

1.3 “Capacity Interruption Incentive Rate” shall mean $15/kW (Option A), $35/kW (Option B), $25.00/kW (Option C or Option D) or $20/kW (Option E) per demand (kW) Interrupted.

1.4 “Customer” shall mean a TNC distribution customer that owns or leases facilities at a Project Site.



1.5 “Demand Savings” shall mean the difference between Baseline Demand Usage and Interruption Demand Usage. For the purpose of this Agreement, the use of the term Demand Savings may refer to Unscheduled Interruption Demand Savings and/or Scheduled Interruption Demand Savings, as appropriate.

1.6 “Estimated Demand Savings” shall mean: 1) the amount of demand that Project Sponsor proposes in the Application to save in a one-hour period during Summer Peak Demand Period through Interruptions that are implemented pursuant to the SOP and that TNC approves after review of the Application and receipt of all Customer Agreements, or 2) the amount of approved Scheduled or Unscheduled Interruption Demand Savings from the Interruption, whichever is less.

1.7 “IDR” shall mean interval data recorder.

1.8 “Incentive Budget” shall mean the amount of money budgeted by TNC in each calendar year of the SOP.

1.9 “Interruptible Load” shall mean the equipment, material, or systems at a Project Site that is identified in the Application as electric load that will be interrupted by the Customer at the request of TNC pursuant to the SOP.

1.10 “Interruption” shall mean shutting down the electrical operation of Interruptible Load at the request of TNC pursuant to the SOP.

1.11 “Interruption Demand Usage” shall mean the average demand that occurs during any one-hour (four 15-minute interval) period of an Interruption.

1.12 “Option A” shall include up to four (4) 4-hour Unscheduled Interruptions per Performance Period.

1.13 “Option B” shall include up to twelve (12) 4-hour Unscheduled Interruptions per Performance Period.

1.14 “Option C” shall include up to twelve (12) 2-hour Unscheduled Interruptions per Performance Period.

1.15 “Option D” shall include up to eight (8) 4-hour Unscheduled Interruptions per Performance Period.

1.16 “Option E” shall include up to eight (8) 2-hour Unscheduled Interruptions per Performance Period.

1.17 “Performance Period” shall mean the period from June 1 through September 30 for Options A, B and C, and shall mean the period from August 1 through September 30 for Options D and E of each calendar year of the SOP.

1.18 “Performance Period Payment” shall mean the payment made by TNC to Project Sponsor for Demand Savings, as calculated pursuant to Article 7.3 of this Agreement.



1.19 “Program Manager” shall mean the TNC representative assigned as the point of contact for the SOP as identified in Article 13.1 of this Agreement.

1.20 “Project Site” shall mean the location of a Customer’s Interruptible Load, as identified in the Application. For the purposes of this Agreement, multiple facilities representing Interruptible Load may be combined into one Project Site as long as they are connected to a single IDR meter. The total Interruptible Load at a Project Site must have a recorded demand history pattern of 500 kW or more and when interrupted in operation must result in a measurable and verifiable reduction in peak demand of at least 50 kW or more.

1.21 “Project Sponsor’s Contact Telephone Number(s)” shall be the telephone number(s) identified in the Application as the telephone number(s) that TNC will call to notify Project Sponsor of a required Interruption.

1.22 “PUCT” shall mean the Public Utility Commission of Texas.

1.23 “Scheduled Interruption” shall mean an Interruption that is pre-scheduled by TNC to occur at the beginning of the Performance Period in every calendar year of the SOP as a test to determine the magnitude of interruptible load available at the Project Site. A Scheduled Interruption shall be for a maximum duration of one (1) hour.

1.24 “Scheduled Interruption Demand Savings” shall mean the difference between the Baseline Demand Usage for a Scheduled Interruption and the Interruption Demand Usage for the same Scheduled Interruption.

1.25 “Summer Peak Demand Period” shall mean 1 p.m. Central Daylight Time to 7 p.m. Central Daylight Time on Monday through Friday during the months of June through September for Options A, B and C, and shall mean the period from August 1 through September 30 for Options D and E, excluding federal holidays.

1.26 “Unscheduled Interruption” shall mean an Interruption that is requested by TNC. Such request shall include start and end times of the Unscheduled Interruption. An Unscheduled Interruption shall be for a minimum duration of one (1) hour and shall not exceed a maximum duration of four (4) hours. There shall be no more than four (4) Unscheduled Interruptions during any one calendar month of the Performance Period.

1.27 “Unscheduled Interruption Demand Savings” shall mean the amount of peak demand reduction used to calculate the Performance Period Payment in every SOP calendar year. The Unscheduled Interruption Demand Savings for each SOP calendar year will be the difference between: 1) the Interruption Demand Usage from the Unscheduled Interruption with the highest amount of Interruption Demand Usage, and 2) the Baseline Demand Usage for that same Unscheduled Interruption. If no Unscheduled Interruption occurs during a SOP calendar year, then the Unscheduled Interruption Demand Savings for that SOP calendar year will mean the Estimated Demand Savings amount.



1.28 “Verification Process” shall mean the process described in Article VI of this Agreement wherein TNC calculates and verifies Baseline Demand Usage, Interruption Demand Usage, and Demand Savings.

ARTICLE II - TERM AND TERMINATION

2.1 The term of this Agreement shall commence on the date of execution by TNC (the “Effective Date”) and, unless otherwise terminated as set forth herein, shall continue in force and effect until September 30, 2012 or until payment by TNC of the Performance Period Payment due pursuant to Article VII of this Agreement, whichever is later; provided, however, that the provisions in this Agreement related to confidentiality, warranties, indemnity, audits and records, and intellectual property will survive termination.

2.2 Notwithstanding anything to the contrary, TNC reserves the right to terminate this Agreement and the SOP at any time, for any reason. Termination at will by TNC shall not relieve the parties of any obligations occurring prior to the date of termination.

ARTICLE III - WARRANTIES AND REPRESENTATIONS

3.1 By executing this Agreement, Project Sponsor warrants and represents that it is aware of, is in compliance with, and will continue to comply for the term of this Agreement with, all of the Agreement Documents and all applicable laws and regulations related to the SOP.

3.2 Project Sponsor warrants and represents that the Project meets all federal, state, and local regulatory requirements, including:

The Project will result in consistent and predictable peak demand savings over the contract term period;

The Application disclosed all potential adverse environmental or health effects associated with the Project, if any;

The Project will not result in negative environmental or health effects; and The Project would not have been implemented in the absence of the SOP.

3.3 Project Sponsor acknowledges that it received a copy of the SOP Manual prior to submission of its Application. Project Sponsor warrants and represents that its participation in the SOP has at all times been in compliance with, and will continue to comply for the term of this Agreement with, the procedures and conditions set forth in the SOP Manual and that any failure to comply therewith may be treated as a breach of this Agreement notwithstanding the fact that such failure occurred prior to the execution of this Agreement. Project Sponsor also acknowledges that it meets or exceeds all of the qualifications required to participate in the SOP as described in the SOP Manual and that failure to meet the qualifications therein may be treated as a breach of this Agreement. Procedures or conditions set forth in the SOP Manual may only be waived or modified by written agreement of the parties. Any such Agreement shall be attached hereto and incorporated herein for all purposes.



3.4 Project Sponsor warrants and represents it may be limited to 20% of the Incentive Budget for any calendar year of the SOP.

3.5 Project Sponsor warrants and represents that any relevant Agreement(s) between a Customer and the Customer’s retail electric provider concerning electric service to Interruptible Load do not prohibit or inhibit Interruptions.

3.6 Project Sponsor agrees to verify that the Curtailable Load that is being used in this Application will not be used in any other Curtailable Load or demand response program during the Summer Peak Demand Period of the Customer Agreement. This can include, without limitation, any ERCOT, PUCT, or any other program that is currently available. Project Sponsor will notify TNC within 15 business days of any change in the status of the Curtailable Load or its inclusion in another demand response program. Failure to notify TNC of any changes in the contracted load can result in the termination of the Program participation. This does not prohibit a Project Sponsor from contracting their existing and/or future electric loads into other programs. TNC reserved the right to cancel any Program participation when that contracted load has been enrolled in any other competing Curtailable Load or demand response program.

ARTICLE IV - CUSTOMER AGREEMENT

4.1 The receipt by TNC of a Customer Agreement concerning every Customer associated with every Project Site is a condition precedent to the effectiveness of this Agreement. TNC will not award incentive payments related to an Interruption at a Project Site if every Customer associated with that Project Site did not sign a Customer Agreement prior to the Interruption.

ARTICLE V - PROJECT IMPLEMENTATION

5.1 Project Sponsor agrees on and after the Effective Date to use all reasonable efforts to implement the Project without undue delay and otherwise in accordance with the terms of the Agreement Documents. To the extent of any conflict between this Agreement and other Agreement Documents, the terms of this Agreement shall prevail.

5.2 The Project will be implemented in calendar year 2012 and may be continued or discontinued after that date.

5.3 One (1) Scheduled Interruption shall be required to be implemented by Project Sponsor at each Project Site at the beginning of the Performance Period in each calendar year of the SOP. The Scheduled Interruption shall be for a maximum duration of one (1) hour.

5.4 All Interruptions shall be implemented at the time and for the duration specified by TNC.

5.5 TNC will notify Project Sponsor at least one (1) hour prior to the required start-time of any Interruption by calling the Project Sponsor’s Contact Telephone Number(s). TNC may utilize a messaging system to provide the notice required



by this Article 5.5. A representative of Project Sponsor must be available to personally answer calls made to the Project Sponsor’s Contact Telephone Number(s) during the Summer Peak Demand Period.

5.6 Project Sponsor may change the Project Sponsor’s Contact Telephone Number(s) by providing notice to the Program Manager of the new Project Sponsor’s Contact Telephone Number(s) a minimum of two business days prior to the date that the new Project Sponsor’s Contact Telephone Number(s) is to become effective. In order for notice of a new Project Sponsor’s Contact Telephone Number(s) to be valid, Project Sponsor must verify that Program Manager has actually received such notice by the above-mentioned deadline.

5.7 An Unscheduled Interruption shall be for a minimum duration of one hour to a maximum duration of either two hours (Option C or E) or four hours (Option A, B or Option D). There shall be no more than four (4) Unscheduled Interruptions during any one calendar month of the applicable Performance Period.

ARTICLE VI - VERIFICATION PROCESS

6.1 TNC shall calculate and verify the Baseline Demand Usage, Interruption Demand Usage, and Demand Savings for each Interruption after the Program Manager receives the IDR data related to the Interruption.

6.2 The data used to calculate the Baseline Demand Usage, Interruption Demand Usage, and Demand Savings will be the data from IDR meters that are read, reviewed, and approved by TNC.

ARTICLE VII - INCENTIVE PAYMENTS

7.1 TNC agrees to make an incentive payment to the Project Sponsor based upon the Demand Savings derived from the Project, as further discussed in this Article.

7.2 The applicable incentive rates and cap on Demand Savings and the possible incentive cap are as follows:



Rate

Demand Savings Cap


A $15.00/kW 2,667 kW $40,000 B $35.00/kW 1,143 kW $40,000 C $25.00/kW 1,660 kW $40,000 D $25.00/kW 1,660 KW $40,000 E $20.00/kW 2,000 kW $40,000

7.3 Unscheduled Interruptions - After the conclusion of the Performance Period and completion of the Verification Process for the SOP Year, TNC shall pay the Project Sponsor the Performance Period Payment. TNC will typically make the



Performance Period Payment within thirty (30) days after the completion of the final Verification Process of the Performance Period. If the Unscheduled Interruption Demand Savings are equal to or less than the Estimated Demand Savings, then the Performance Period Payment will be calculated using the following equation:

Performance Period Payment = Performance Period Payment Incentive Rate x Unscheduled Interruption Demand Savings

If the Unscheduled Interruption Demand Savings are greater than the Estimated Demand Savings, then the Performance Period Payment will be calculated using the following equation:

Performance Period Payment = Performance Period Payment Incentive Rate x Estimated Demand Savings

7.4 Notwithstanding anything to the contrary, TNC may, in its sole discretion, revise the calculation of the Performance Period Payment to allow payment to Project Sponsor for an amount of Peak Demand Reduction that exceeds the amount of Estimated Demand Savings.

7.5 The Performance Period Payment in a SOP year may be limited to 20% of the Incentive Budget for that SOP year.

7.6 TNC’s Incentive Payment to the Project Sponsor is expressly and specifically conditioned upon TNC receiving all required notices, submittals and materials from Project Sponsor within the applicable period specified in this Agreement. Failure by Project Sponsor to deliver any required notice, submittal, or material within the applicable period specified in this Agreement shall be deemed a material breach of this Agreement.

ARTICLE VIII - INSURANCE

8.1 Project Sponsor represents and agrees that it and its subcontractors will carry all statutorily required insurance for the protection of its employees and that each of its subcontractors will carry such insurance for the protection of their respective employees.

ARTICLE IX - INDEMNITY

9.1 PROJECT SPONSOR AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS TNC, AND ANY INDIVIDUAL, CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, ASSOCIATION, TRUST, OR OTHER BUSINESS ORGANIZATION OF ANY KIND DIRECTLY OR INDIRECTLY CONTROLLING, CONTROLLED BY, OR UNDER COMMON CONTROL WITH TNC AND ITS AND THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, PARTNERS, OFFICERS, DIRECTORS, MANAGERS, TRUSTEES, INCORPORATORS, AGENTS, ATTORNEYS, CONSULTANTS, SERVANTS, REPRESENTATIVES, AND EMPLOYEES FROM AND AGAINST ANY CLAIMS, CAUSES OF ACTION, SUITS, JUDGMENTS, LOSSES, DAMAGES



AND LIABILITIES OF ANY KIND INCLUDING ALL EXPENSES OF LITIGATION, COSTS OF COURT AND/OR ALTERNATIVE DISPUTE RESOLUTION, ATTORNEYS' FEES AND EXPERT WITNESS FEES (WHETHER THE SAME ARE BASED IN CONTRACT, TORT, INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE) FOR INJURIES, DEATH OR PROPERTY DAMAGES OR LOSS (INCLUDING INJURIES, DEATH OR PROPERTY DAMAGES SUFFERED BY PROJECT SPONSOR OR ITS AGENTS, EMPLOYEES OR CONTRACTORS) WHICH OCCURRED, OR ARE ALLEGED TO HAVE OCCURRED DIRECTLY AS A RESULT OF (i) PROJECT SPONSOR'S OR ITS SUBCONTRACTOR'S PARTICIPATION IN ANY STAGE OF THE SOP; (ii) AN ACT OR OMISSION OF PROJECT SPONSOR IN OR COLLATERAL TO ITS PERFORMANCE OF WORK OR SERVICES UNDER OR IN CONNECTION WITH THIS AGREEMENT; OR (iii) ANY DEFECT (INCLUDING A DESIGN OR MANUFACTURING DEFECT OR THE FAILURE TO PROVIDE PROPER WARNING OR INSTRUCTIONS FOR USE) IN OR MALFUNCTION OF OR FINDING OF STRICT LIABILITY IN TORT ATTRIBUTABLE TO ANY MEASURE PROVIDED UNDER OR IN CONNECTION WITH THIS AGREEMENT. THIS INDEMNITY OBLIGATION SPECIFICALLY INCLUDES ANY CLAIMS, CAUSES OF ACTION, LAWSUITS, JUDGMENTS, LOSSES, DAMAGES AND LIABILITY OF EVERY KIND, INCLUDING ALL EXPENSES OF LITIGATION, COSTS OF COURT AND/OR ALTERNATIVE DISPUTE RESOLUTION, ATTORNEYS' FEES AND EXPERT WITNESS FEES (WHETHER THE SAME ARE BASED IN CONTRACT, TORT, INCLUDING NEGLIGENCE, OR STRICT LIABILITY OR OTHERWISE) ALLEGING TNC'S NEGLIGENCE, GROSS NEGLIGENCE OR STRICT LIABILITY REGARDLESS OF WHETHER SUCH NEGLIGENCE, GROSS NEGLIGENCE OR STRICT LIABILITY IS A JOINT AND CONCURRING CAUSE OF THE INJURIES, DEATH OR PROPERTY DAMAGE. THIS PROVISION SHALL NOT APPLY TO CLAIMS, CAUSES OF ACTION, SUITS, JUDGMENTS, LOSSES, DAMAGES AND LIABILITIES TO THE EXTENT CAUSED BY THE NEGLIGENCE OF TNC IN THE CONDUCT OF TNC’S ON-SITE INSPECTION OF THE PROJECT SITE PURSUANT TO THIS AGREEMENT.

9.2 IN ADDITION TO THE INDEMNITIES AND OTHER PROTECTIONS

PROVIDED UNDER THIS ARTICLE IX, PROJECT SPONSOR HEREBY AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS TNC, AND ANY INDIVIDUAL, CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, ASSOCIATION, TRUST, OR OTHER BUSINESS ORGANIZATION OF ANY KIND DIRECTLY OR INDIRECTLY CONTROLLING, CONTROLLED BY, OR UNDER COMMON CONTROL WITH TNC AND ITS AND THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, PARTNERS, OFFICERS, DIRECTORS, MANAGERS, TRUSTEES, INCORPORATORS, AGENTS, ATTORNEYS, CONSULTANTS, SERVANTS, REPRESENTATIVES, AND EMPLOYEES FROM AND AGAINST ANY CLAIMS, CAUSES OF ACTION, SUITS, JUDGMENTS, DAMAGES, LIABILITIES, EXPENSES, CONTRIBUTIONS, REMEDIATION OR CLEANUP COSTS, OR OTHER LOSSES OF ANY KIND INCLUDING ALL EXPENSES OF LITIGATION, COSTS OF COURT AND/OR ALTERNATIVE DISPUTE RESOLUTION,



ATTORNEYS' FEES AND EXPERT WITNESS FEES (WHETHER THE SAME ARE BASED IN CONTRACT, TORT, INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE) ARISING FROM, ASSOCIATED WITH, OR RELATING IN ANY WAY TO:

9.2.1 ANY BREACH OF ANY REPRESENTATION, WARRANTY, OR COVENANT

OF PROJECT SPONSOR CONTAINED IN THIS AGREEMENT; 9.2.2 ANY VIOLATION OR ALLEGED VIOLATION OF ANY FEDERAL,

STATE OR LOCAL LAW, REGULATION, OR POLICY RESPECTING PROTECTION OF THE ENVIRONMENT, HEALTH, AND/OR SAFETY (HEREINAFTER “EHS LAWS”) ASSOCIATED WITH OR RELATED IN ANY WAY TO THE PROJECT;

9.2.3 ANY PROPERTY DAMAGE OR IMPAIRMENT OR ANY PERSONAL

INJURY ALLEGED TO BE ASSOCIATED WITH ANY EXPOSURE TO MATERIALS REGULATED UNDER ANY EHS LAW RELATING IN ANY WAY TO THE PROJECT; OR

9.2.4 ANY RELEASE OR THREATENED RELEASE OF ANY

HAZARDOUS SUBSTANCE OR OTHER MATERIAL OR SUBSTANCE REGULATED UNDER ANY EHS LAW RELATING IN ANY WAY TO THE PROJECT.

9.3 THE ENVIRONMENTAL INDEMNITY PRESCRIBED BY THIS ARTICLE X

SHALL APPLY REGARDLESS OF WHETHER THE CLAIMS ARISE FROM THE JOINT OR CONCURRENT NEGLIGENCE, GROSS NEGLIGENCE, STRICT LIABILITY IN TORT OR WILLFUL MISCONDUCT OF OR BREACH OF CONTRACT BY TNC, OR ANY INDIVIDUAL, CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, ASSOCIATION, TRUST, OR OTHER BUSINESS ORGANIZATION OF ANY KIND DIRECTLY OR INDIRECTLY CONTROLLING, CONTROLLED BY, OR UNDER COMMON CONTROL WITH TNC AND ITS AND THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, PARTNERS, OFFICERS, DIRECTORS, MANAGERS, TRUSTEES, INCORPORATORS, AGENTS, ATTORNEYS, CONSULTANTS, SERVANTS, REPRESENTATIVES, AND EMPLOYEES.

9.4 The representations, warranties, covenants, indemnities, and other obligations or

protections provided by Project Sponsor pursuant to this Article IX shall not be limited by time and shall survive the completion of the Project or any other completion, expiration or termination of this Agreement.

ARTICLE X - COMPLIANCE WITH LAWS

10.1 Project Sponsor represents and warrants that prior to commencing implementation of the Project, Project Sponsor will, at its own cost and expense, obtain any and all permits, licenses, and/or other authorizations from governmental authorities as then may be required to in order to perform its obligations under this Agreement. If requested by TNC, Project Sponsor shall



furnish to TNC copies of each such permit, license or other approval promptly following receipt thereof. Project Sponsor shall maintain in full force and effect all such governmental permits, licenses and other authorizations as may be necessary for the implementation of the Project in accordance herewith. Failure to maintain licenses, permits and other authorizations required to perform the work detailed in this Agreement constitutes a material breach of Project Sponsor’s obligations under this Agreement

10.2 Project Sponsor shall be responsible for all royalties, fees, or claims for any licensed, copyrighted or similarly protected intellectual property, device, process or procedure used, installed, or provided by it. Project Sponsor shall defend any suit that may be brought against TNC and shall hold TNC harmless from any liability, damages and costs, including without limitation attorneys’ fees, incurred by TNC arising from or related to infringement or alleged infringement of any intellectual property used by Project Sponsor or a Customer in the implementation of the Project.

10.3 All work performed by Project Sponsor or a Customer in connection with the implementation of the Project shall conform to all applicable laws, statutes, ordinances, rules, regulations, and decrees of any governmental or administrative body having jurisdiction over the SOP or any portion of the Project.

ARTICLE XI - DEFAULT AND REMEDIES

11.1 Each of the following events will be deemed to be an Event of Default hereunder:

(a) failure of Project Sponsor to perform its responsibilities in a timely manner or implement the Project in compliance with the Agreement Documents;

(b) failure of a representative of Project Sponsor to be available during all Summer Peak Demand Hours to personally answer a call from TNC to the Project Sponsor Contact Telephone Number concerning notice of an Interruption.

(c) Project Sponsor’s submission to TNC of any false, misleading or inaccurate information or documentation with respect to the Application, this Agreement, or Project Sponsor’s implementation of the Project, when Project Sponsor knew or reasonably should have known that such information was false, misleading or inaccurate;

(d) Project Sponsor’s assignment or subcontracting of all or part of the duties required under the Agreement Documents without the prior written consent of TNC; or

(e) failure of either party in a material fashion to perform or observe any of the material terms, conditions or provisions of the Agreement Documents, which failure materially adversely affects the other party.



If an Event of Default occurs, the non-defaulting party shall be entitled to exercise any and all remedies provided for by law or in equity, including the right to terminate this Agreement upon written notice to the other party. Termination shall be effective upon the receipt of properly served notice. Termination of this Agreement will not relieve the defaulting party of any obligations accruing prior to the event of termination.

ARTICLE XII - LIMITATION OF LIABILITY

12.1 EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER

PARTY NOR ANY INDIVIDUAL, CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, ASSOCIATION, TRUST, OR OTHER BUSINESS ORGANIZATION OF ANY KIND DIRECTLY OR INDIRECTLY CONTROLLING, CONTROLLED BY, OR UNDER COMMON CONTROL WITH A PARTY AND ITS AND THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, PARTNERS, OFFICERS, DIRECTORS, MANAGERS, TRUSTEES, INCORPORATORS, AGENTS, ATTORNEYS, CONSULTANTS, SERVANTS, REPRESENTATIVES, AND EMPLOYEES SHALL NOT BE LIABLE TO THE OTHER PARTY OR ANY CUSTOMER FOR ANY LOSSES, COSTS, INJURIES, LIABILITIES, EXPENSES (INCLUDING ATTORNEY’S FEES), OR CLAIMS FOR INCIDENTAL, SPECIAL, INDIRECT, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY NATURE CONNECTED WITH OR RESULTING FROM

(i) NEGOTIATION, EXECUTION, OPERATION, OR TERMINATION

OF THIS AGREEMENT; (ii) PERFORMANCE OR NON-PERFORMANCE OF ANY

COMMITMENT; OR (iii) ANY ACTS, OMISSIONS, OR REPRESENTATIONS MADE BY THE

OTHER PARTY IN CONNECTION WITH PERFORMING ANY OBLIGATION UNDER THIS AGREEMENT,

INCLUDING WITHOUT LIMITATION, CLAIMS IN THE NATURE OF LOST REVENUES, INCOME OR PROFITS, IRRESPECTIVE OF WHETHER SUCH CLAIMS ARE BASED UPON WARRANTY, NEGLIGENCE, STRICT LIABILITY, CONTRACT, OPERATION OF LAW OR OTHERWISE AND EACH PARTY SHALL PROTECT, INDEMNIFY AND HOLD THE OTHER PARTY HARMLESS FROM SAME.

12.2 BOTH PARTIES AGREE THAT, IN THE EVENT OF (i) ANY DISPUTE THAT ARISES OUT OF THE NEGOTIATION, EXECUTION, OPERATION, OR TERMINATION OF THIS AGREEMENT AND ITS SUBJECT MATTER, WHETHER THE DISPUTE SOUNDS IN CONTRACT OR TORT, OR AS A RESULT OF A CLAIMED STATUTORY OR REGULATORY VIOLATION, OR (ii) ANY OTHER CLAIM THAT MAY ARISE OUT OF THE RELATIONSHIP OF THE PARTIES, THE PREVAILING PARTY SHALL BE ENTITLED TO RECOVER REASONABLE ATTORNEYS' FEES, EXPERT WITNESS FEES,



LITIGATION EXPENSES, AND COSTS OF COURT AND/OR ALTERNATIVE DISPUTE RESOLUTION FROM THE LOSING PARTY.

ARTICLE XIII - NOTICES

13.1 All notices from one party to the other will be deemed to have been delivered on the date actually delivered if hand delivered or sent by United States certified mail, return receipt requested, postage prepaid or sent or delivered by such other method as will ensure evidence of its receipt to the following addresses:

AEP: Project Sponsor: AEP Texas North Company Attn: Gary J. Throckmorton Attn: 910 Energy Dr. Abilene, TX 79602

13.2 Either party may change its address by written notice to the other in accordance with this Article XIII.

ARTICLE XIV - AMENDMENT

14.1 No amendment or modification of this Agreement shall be binding on either party unless it is in writing and signed by both parties. Amendments to this Agreement will be attached hereto and made a part hereof for all purposes.

ARTICLE XV - ALTERNATIVE DISPUTE RESOLUTION

15.1 BOTH PARTIES AGREE TO RESOLVE ANY AND ALL DISPUTES THAT ARISE OUT OF THE NEGOTIATION, EXECUTION, OPERATION OR TERMINATION OF THIS AGREEMENT AND ITS SUBJECT MATTER, WHETHER THE DISPUTE SOUNDS IN CONTRACT OR TORT, OR AS A RESULT OF A CLAIMED STATUTORY OR REGULATORY VIOLATION, OR ANY OTHER CLAIM WHICH MAY ARISE OUT OF THE RELATIONSHIP OF THE PARTIES, THROUGH ALTERNATIVE DISPUTE RESOLUTION TECHNIQUES. BOTH PARTIES AGREE TO FIRST ATTEMPT TO RESOLVE DISPUTES THROUGH MEDIATION. IF, HOWEVER, SUCH DISPUTES CANNOT BE RESOLVED THROUGH MEDIATION, BOTH PARTIES AGREE TO SUBMIT SUCH DISPUTES FOR RESOLUTION THROUGH BINDING ARBITRATION, TO BE CONDUCTED BY ONE QUALIFIED INDEPENDENT ARBITRATOR THAT IS MUTUALLY SELECTED BY BOTH PARTIES, IN ACCORDANCE WITH THE COMMERCIAL ARBITRATION RULES (“RULES”) OF THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) THEN IN EFFECT. IF THE PARTIES CANNOT AGREE UPON THE SELECTION OF THE ARBITRATOR, THEN EITHER PARTY MAY FILE ITS DEMAND WITH THE AAA AND THE ARBITRATION SHALL BE ADMINISTERED IN ACCORDANCE WITH ITS RULES. VENUE OF THE ARBITRATION SHALL BE THE VENUE SET FORTH IN SECTION 19.5 UNLESS THE PARTIES AGREE OTHERWISE. THIS BINDING ARBITRATION PROVISION SHALL NOT PROHIBIT OR RESTRICT EITHER PARTY FROM SEEKING EMERGENCY



INJUNCTIVE OR OTHER EQUITABLE RELIEF IN THE DISTRICT COURTS OF THE COUNTY OF VENUE TO PRESERVE THE STATUS QUO. IF ANY SUCH RELIEF IS SOUGHT AND OBTAINED, THE MATTER WILL THEN BE IMMEDIATELY REFERRED TO ARBITRATION IN ACCORDANCE WITH THE TERMS OF THIS PROVISION FOR A HEARING ON THE MERITS OF THE RELIEF SOUGHT.

15.2 BOTH PARTIES AGREE THAT THE TERMS OF ANY AGREEMENT, SETTLEMENT, JUDGMENT OR AWARD RESULTING FROM ANY MEDIATION OR ARBITRATION PROCEEDINGS DESCRIBED IN SECTION 15.1 SHALL BE CONFIDENTIAL, AND THE PARTIES AGREE NOT TO DISCLOSE SUCH TERMS, OR ANY DRAFTS OR COMMUNICATIONS CONCERNING SUCH TERMS, TO ANY THIRD-PARTY EXCEPT AS FOLLOWS:

15.2.1 THE TERMS MAY BE DISCLOSED, BUT ONLY TO THE EXTENT REASONABLY NECESSARY, TO A PARTY’S ATTORNEYS, INSURERS, AGENTS, EMPLOYEES, AND ACCOUNTANTS, PROVIDED THAT THOSE PERSONS HAVE AGREED TO KEEP SUCH INFORMATION CONFIDENTIAL AND NOT DISCLOSE IT TO ANY OTHER PERSON OR ENTITY; OR

15.2.2 THE TERMS MAY BE DISCLOSED TO A COURT OR TRIBUNAL IN CONNECTION WITH AN ACTION TO ENFORCE ANY AGREEMENT, SETTLEMENT, JUDGMENT OR AWARD RESULTING FROM ANY MEDIATION OR ARBITRATION PROCEEDING DESCRIBED IN SECTION 16.1; OR

15.2.3 THE TERMS MAY BE DISCLOSED TO OTHERS (i) PURSUANT TO AN APPROPRIATE COURT ORDER ENTERED AFTER EVERY OTHER PARTY TO THE AGREEMENT HAS BEEN GIVEN REASONABLE NOTICE AND AN OPPORTUNITY TO BE HEARD, OR (ii) IF REQUIRED BY A GOVERNMENTAL AGENCY AFTER EVERY OTHER PARTY TO THE AGREEMENT HAS BEEN GIVEN REASONABLE NOTICE AND AN OPPORTUNITY TO BE HEARD, OR (iii) WITH THE PRIOR WRITTEN APPROVAL OF EVERY OTHER PARTY TO THE AGREEMENT.

ARTICLE XVI - FORCE MAJEURE

16.1 Should either Party be rendered unable, either wholly or in part, by an event of Force Majeure, to fulfill its obligations under this Agreement, the obligation of the Party so rendered, that is affected by the event of Force Majeure, will be suspended only during the continuance of that inability. The Party so affected will give written notice of the existence, extent and nature of the Force Majeure to the other Party within forty-eight (48) hours after the occurrence of the event. The Party so affected will use its best efforts to remedy its inability as soon as possible and will provide the other Party with prompt notice when it is able to resume the performance of its obligations. Failure to give notice will result in the



continuance of the affected Party’s obligation regardless of the extent of any existing Force Majeure.

16.2 The term “Force Majeure” as used in this Agreement will mean acts of God (except as excluded herein), strikes, lockouts, or other industrial disturbances, acts of public enemies, wars, blockades, insurrections, riots, epidemics, earthquakes, fires, priority allocations of pipe or other materials or orders, restraints or prohibitions by any court, board, department, commission or agency of the United States or of any State, any arrests and restraints, civil disturbances, explosions, and inability despite reasonable diligence to obtain materials essential to this Agreement. Rain, snow, ice or other adverse weather conditions will not be considered events of Force Majeure.

16.3 The term “Force Majeure” does not include: events or circumstances that affect the Project but do not prevent performance, including, but not limited to, requirements, actions or failures to act on the part of governmental authorities (including the adoption or change in any rule or regulation or environmental constraints lawfully imposed by federal, state or local governmental bodies); changes in market conditions; and events or conditions attributable to normal wear and tear or flaws randomly experienced in materials and equipment and their assembly and operation, unless such events and conditions are caused by an occurrence which would fit the definition of Force Majeure set forth in Article 16.2 of this Agreement.

16.4 In no event will any Force Majeure extend this Agreement beyond its stated term.

16.5 If any Force Majeure causes a reduction in the Estimated Demand Savings, the Parties may mutually at any time agree to reduce the Estimated Demand Savings for the duration of the Force Majeure event.

ARTICLE XVII - ARTICLE XVIII – NONDISCLOSURE

17.1 If either Party hereto provides confidential information to the other in writing and identified as such, the receiving Party shall protect the confidential information from disclosure to third parties. Neither Party shall be required to hold confidential any information which (i) becomes publicly available other than through the recipient; (ii) is required to be disclosed by a governmental or judicial order, rule or regulation; (iii) is independently developed by the receiving Party as evidenced by written records; or (iv) becomes available to the receiving Party without restriction from a third party. These obligations shall survive expiration or termination of this Agreement.

17.2 Should any person or entity seek to legally compel a receiving Party (by oral

questions, interrogations, requests for information or documents, subpoena, civil investigative demands, regulation, statute or otherwise) to disclose any confidential information, the receiving Party will provide the disclosing Party prompt written notice so that the disclosing Party may seek a protective order or other appropriate remedy (including participating in any proceeding to which the



receiving Party is a party, which receiving Party will use its reasonable business and legal efforts to permit). If, in the absence of a protective order, the receiving Party is, in the opinion of its legal counsel, compelled to disclose the confidential information, the receiving Party may disclose only such of the confidential information to the person or entity compelling disclosure as is required by applicable law, order, regulation or rule.

ARTICLE XVIII - INDEPENDENT CONTRACTOR

18.1 Project Sponsor will act as and be deemed to be an independent contractor. Project Sponsor will not act as, nor be deemed to be, an agent or employee of TNC. Project Sponsor will have the sole right to control and directly supervise the method, manner and details of the Project providing it is in accordance with the Agreement Documents.

ARTICLE XIX - MISCELLANEOUS

19.1 Project Sponsor will not assign, transfer or otherwise dispose of any of its obligations or duties without the prior written approval of TNC. Any assignment or transfer made without the express written approval of TNC will be null and void.

19.2 The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by either party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. No waiver by the parties hereto of any default or breach of any term, condition or covenant of this Agreement shall be deemed to be a waiver of any other breach of the same or any other term, condition or covenant contained herein.

19.3 The Agreement Documents constitute the entire Agreement between the parties with respect to the subject matter hereof and there are no express or implied warranties or representations upon which any party may rely beyond those set forth therein. The execution of this Agreement supersedes all previous agreements, discussions, communications and correspondence with respect to such subject matter.

19.4 In the event any provision of this Agreement is held to be void, unlawful, or otherwise unenforceable, that provision will be severed from the remainder of the Agreement and replaced automatically by a provision containing terms as nearly like the void, unlawful, or unenforceable provision as possible; and the Agreement, as so modified, will continue to be in full force and effect.

19.5 This Agreement will be governed by, construed and enforced in accordance with the laws of the State of Texas. Except for matters and disputes with respect to which the PUCT is the sole proper venue for dispute resolution pursuant to applicable law or this Agreement, the Parties agree that the proper venue and jurisdiction for any cause of action relating to the Agreement will be in Travis County, Texas and the Parties hereto submit to the exclusive jurisdiction of the



federal and state courts located in such county with respect to such matters and disputes.

19.6 Project Sponsor shall not use TNC’s corporate name, trademark, trade name, logo, identity or any affiliation for any reason, including to solicit customers for participation in the Project, without TNC’s prior written consent. Notwithstanding anything to the contrary, Project Sponsor may use TNC’s corporate name in the Customer Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives.



(PROJECT SPONSOR)


By: By:

Name: Billy G. Berny Name:

Title: Manager, EE/DR Programs

Title:

Date: Date:



ATTACHMENT A


LOAD MANAGEMENT STANDARD OFFER PROGRAM

CUSTOMER AGREEMENT

I. Customer Information

Customer Name

Project Site Name

Project Site Address

City, Zip Code

Customer ESI ID

(For multiple sites, attach separate list)

II. Customer Relationship with Project Sponsor

I, Customer, hereby acknowledge the following (check appropriate box):

I have entered into an Agreement with_____________________________ (the “Project Sponsor”) for interruption of interruptible load at the Project Site(s) identified above (the “Project”). The Project Sponsor is implementing the Project pursuant to the AEP TEXAS NORTH Company (“TNC”) Load Management Standard Offer Program.

I am acting as my own Project Sponsor and am participating in the TNC Load Management Standard Offer Program.

III. Program Option Selection

I, Customer, hereby acknowledge I have selected to participate in the following Program Option (check appropriate box):

OPTION A – includes up to four (4) Unscheduled Interruptions between one and four hours per Performance Period.

OPTION B - includes up to twelve (12) Unscheduled Interruptions between one and four hours per Performance Period.

OPTION C - includes up to twelve (12) Unscheduled Interruptions between one and two hours per Performance Period.



OPTION D - includes up to eight (8) Unscheduled Interruptions between one and four hours per Performance Period.

OPTION E - includes up to eight (8) Unscheduled Interruptions between one and two hours per Performance Period.

IV. Customer Agreement

CUSTOMER ACKNOWLEDGES THAT ANY REVIEW OR ACCEPTANCE BY TNC OF THE PROJECT IS SOLELY FOR THE INFORMATION OF TNC AND THAT, IN PERFORMING ANY SUCH REVIEW OR IN ACCEPTING THE PROJECT, TNC MAKES NO REPRESENTATIONS OR WARRANTY WHATSOEVER AS TO THE ECONOMIC OR TECHNICAL FEASIBILITY, CAPABILITY, SAFETY OR RELIABILITY OF THE PROJECT.

Customer acknowledges that the Project Sponsor is an independent contractor with respect to TNC and the SOP, and that the Project Sponsor is not authorized to make representations or incur obligations on behalf of TNC.

Customer acknowledges that TNC is not a party to this Customer Agreement or any other agreement (if any) between the Project Sponsor and the Customer and that the Project Sponsor is solely responsible for performance hereunder.

Customer agrees that TNC is an intended third-party beneficiary of this Customer Agreement and, as such, may rely on representations made herein by the Customer and enforce Customer’s obligations hereunder to the extent same are applicable to TNC.

Customer acknowledges that TNC makes no warranty or representation regarding the qualifications of the Project Sponsor and that the Customer is solely responsible for the selection of the Project Sponsor.

Customer acknowledges that it may file a complaint with the Public Utility Commission of Texas concerning the Project Sponsor, but that TNC will play no role in resolving any disputes that arise between the Customer and the Project Sponsor.

Customer agrees to provide TNC with access to and/or copies of Customer’s utility bills, Project documentation, and any other information related to the Project that is necessary for calculation and/or verification of demand savings associated with the Project.

CUSTOMER AGREES TO RELEASE TNC, ITS OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES, AND EACH OF TNC’S AFFILIATES AND EACH OF THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, AND EMPLOYEES (COLLECTIVELY REFERRED TO AS “TNC”), FROM ANY AND ALL CLAIMS, LOSSES, EXPENSES, ATTORNEYS’ FEES, DAMAGES, DEMANDS, JUDGMENTS, CAUSES OF ACTION, SUITS, AND LIABILITY IN TORT, AGREEMENT, OR ANY OTHER BASIS AND OF EVERY KIND AND CHARACTER WHATSOEVER



(COLLECTIVELY REFERRED TO AS “CLAIMS”), REGARDLESS OF ANY STRICT LIABILITY OR NEGLIGENCE OF TNC, WHETHER ACTIVE OR PASSIVE, EXCEPTING ONLY SUCH CLAIMS, DEMANDS, LOSSES, DAMAGES, COSTS, EXPENSES, LIABILITY, OR VIOLATION OF LAW OR REGULATION AS MAY BE CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF TNC.

IN WITNESS WHEREOF, Customer causes this Agreement to be executed by its duly authorized representative.

Signature:

Printed Name:

Title:

Company Name:

Date:




LOAD MANAGEMENT STANDARD OFFER PROGRAM

CUSTOMER AGREEMENT

I. Customer Information

Customer Name

Project Site Name

Project Site Address

City, Zip Code

Customer ESI ID

(For multiple sites, attach separate list)

II. Customer Relationship with Project Sponsor

I, Customer, hereby acknowledge the following (check appropriate box):

I have entered into an Agreement with_____________________________ (the “Project Sponsor”) for interruption of interruptible load at the Project Site(s) identified above (the “Project”). The Project Sponsor is implementing the Project pursuant to the AEP TEXAS NORTH Company (“TNC”) Load Management Standard Offer Program.

I am acting as my own Project Sponsor and am participating in the TNC Load Management Standard Offer Program.

III. Program Option Selection

I, Customer, hereby acknowledge I have selected to participate in the following Program Option (check appropriate box):

OPTION A – includes up to four (4) Unscheduled Interruptions between one and four hours per Performance Period.

OPTION B - includes up to twelve (12) Unscheduled Interruptions between one and four hours per Performance Period.

OPTION C - includes up to twelve (12) Unscheduled Interruptions between one and two hours per Performance Period.

OPTION D - includes up to eight (8) Unscheduled Interruptions between one and four hours per Performance Period.



OPTION E - includes up to eight (8) Unscheduled Interruptions between one and two hours per Performance Period.

IV. Customer Agreement

CUSTOMER ACKNOWLEDGES THAT ANY REVIEW OR ACCEPTANCE BY TNC OF THE PROJECT IS SOLELY FOR THE INFORMATION OF TNC AND THAT, IN PERFORMING ANY SUCH REVIEW OR IN ACCEPTING THE PROJECT, TNC MAKES NO REPRESENTATIONS OR WARRANTY WHATSOEVER AS TO THE ECONOMIC OR TECHNICAL FEASIBILITY, CAPABILITY, SAFETY OR RELIABILITY OF THE PROJECT.

Customer acknowledges that the Project Sponsor is an independent contractor with respect to TNC and the SOP, and that the Project Sponsor is not authorized to make representations or incur obligations on behalf of TNC.

Customer acknowledges that TNC is not a party to this Customer Agreement or any other agreement (if any) between the Project Sponsor and the Customer and that the Project Sponsor is solely responsible for performance hereunder.

Customer agrees that TNC is an intended third-party beneficiary of this Customer Agreement and, as such, may rely on representations made herein by the Customer and enforce Customer’s obligations hereunder to the extent same are applicable to TNC.

Customer acknowledges that TNC makes no warranty or representation regarding the qualifications of the Project Sponsor and that the Customer is solely responsible for the selection of the Project Sponsor.

Customer acknowledges that it may file a complaint with the Public Utility Commission of Texas concerning the Project Sponsor, but that TNC will play no role in resolving any disputes that arise between the Customer and the Project Sponsor.

Customer agrees to provide TNC with access to and/or copies of Customer’s utility bills, Project documentation, and any other information related to the Project that is necessary for calculation and/or verification of demand savings associated with the Project.

CUSTOMER AGREES TO RELEASE TNC, ITS OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES, AND EACH OF TNC’S AFFILIATES AND EACH OF THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, AND EMPLOYEES (COLLECTIVELY REFERRED TO AS “TNC”), FROM ANY AND ALL CLAIMS, LOSSES, EXPENSES, ATTORNEYS’ FEES, DAMAGES, DEMANDS, JUDGMENTS, CAUSES OF ACTION, SUITS, AND LIABILITY IN TORT, AGREEMENT, OR ANY OTHER BASIS AND OF EVERY KIND AND CHARACTER WHATSOEVER (COLLECTIVELY REFERRED TO AS “CLAIMS”), REGARDLESS OF ANY STRICT LIABILITY OR NEGLIGENCE OF TNC, WHETHER ACTIVE OR PASSIVE, EXCEPTING ONLY SUCH CLAIMS, DEMANDS, LOSSES, DAMAGES, COSTS,



EXPENSES, LIABILITY, OR VIOLATION OF LAW OR REGULATION AS MAY BE CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF TNC.

IN WITNESS WHEREOF, Customer causes this Agreement to be executed by its duly authorized representative.

Signature:

Printed Name:

Title:

Company Name:

Date:

City of San Angelo

Memo Date: 4/18/12


From: Tim Vasquez, Chief of Police


Contact: Chief Tim Vasquez, 657-4336

Caption: Consent Agenda Item

AUTHORIZATION FOR THE CITY OF SAN ANGELO POLICE DEPARTMENT TO ENTER INTO AN INTERLOCAL AGREEMENT WITH THE TOM GREEN COUNTY SHERIFF’S OFFICE FOR THE PURPOSE OF JOINTLY APPLYING FOR THE EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT AND AUTHORIZATION FOR THE INTERIM CITY MANAGER OR HIS DESIGNEE TO EXECUTE ANY NECESSARY RELATED DOCUMENTS

Summary: The U.S. Department of Justice announced that the City of San Angelo Police Department is eligible to apply for funds from the Edward Byrne Memorial Justice Assistance Grant. The grant is designed to help fund state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support. The City of San Angelo and Tom Green County are allocated $25,924 jointly from the grant. The funds are divided by the number of authorized positions per department. The Police Department will receive $19,181 and the Tom Green County Sheriff’s Office will receive $6,743. The San Angelo Police Department will purchase Child ID Kits, Radar guns for Patrol cars, and Laptops for the CID division. The Tom Green County Sheriff’s Office will purchase emergency light systems and flashlights for the Deputies.

History: The San Angelo Police Department is awarded funds each year to purchase

equipment to help prevent and control crime. Financial Impact: The allocated amount is $25,924. The City of San Angelo will receive $19,181

and Tom Green County will receive $6,743. This will increase the Police Department budget in the amount of $19,181.

Other Information/Recommendation: Staff recommends approval of the stated caption. The grant

application must be turned in by May 14, 2012 to be eligible for review. Attachments: Interlocal Agreement Presentation: none

Reviewed by Service Area Director: Chief Tim Vasquez, Police Department, 4/18/12

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GMS APPLICATION NUMBER _________________________

CITY SECRETARY CONTRACT NO. _______

THE STATE OF TEXAS KNOW ALL BY THESE PRESENT

COUNTY OF TOM GREEN

INTERLOCAL AGREEMENT BETWEEN THE CITY OF SAN ANGELO, TEXAS AND COUNTY OF TOM GREEN, TEXAS

2012 BYRNE JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD

LOCAL SOLICITATION

This Agreement is made and entered into this____day of________, 2012, by and between The COUNTY of TOM GREEN, acting by and through its governing body, the Commissioners Court, hereinafter referred to as COUNTY, and the CITY of SAN ANGELO, acting by and through its governing body, the City Council, hereinafter referred to as CITY, both of TOM GREEN County, State of TEXAS, witnesseth: WHEREAS, this Agreement is made under the authority of Chapter 791 of the Government Code: and WHEREAS, each governing body, in performing governmental functions or in paying for the performance of governmental functions hereunder, shall make that performance or those payments from current revenues legally available to that party: and WHEREAS, each governing body finds that the performance of this Agreement is in the best interests of both parties, that the undertaking will benefit the public, and that the division of costs fairly compensates the performing party for the services or functions under this agreement: and WHEREAS, the CITY agrees to provide the COUNTY $6,743 from the JAG award for Emergency light systems and flashlight program: and WHEREAS, the CITY and COUNTY believe it to be in their best interests to reallocate the JAG funds. NOW THEREFORE, the COUNTY and CITY agree as follows: Section 1. CITY agrees to pay COUNTY a total of $6,743 of JAG funds. Section 2. COUNTY agrees to use $6,743 for the Emergency light systems and flashlight program until September 30, 2014. Section 3. Nothing in the performance of this Agreement shall impose any liability for claims against COUNTY other than claims for which liability may be imposed by the Texas Tort Claims Act.

of 2

Section 4. Nothing in the performance of this Agreement shall impose any liability for claims against CITY other than claims for which liability may be imposed by the Texas Tort Claims Act. Section 5. Each party to this agreement will be responsible for its own actions in providing services under this agreement and shall not be liable for any civil liability that may arise from the furnishing of the services by the other party. Section 6. The parties to this Agreement do not intend for any third party to obtain a right by virtue of this Agreement. Section 7. By entering into this Agreement, the parties do not intend to create any obligations express or implied other than those set out herein; further, this Agreement shall not create any rights in any party not a signatory hereto. CITY OF SAN ANGELO, TEXAS COUNTY OF TOM GREEN, TEXAS ___________________________________ ________________________________ Interim City Manager County Judge Michael Dane Mike Brown ATTEST: APPROVED AS TO FORM: ___________________________________ ________________________________ City Clerk Assistant District Attorney Alicia Ramirez APPROVED AS TO FORM: APPROVED AS TO CONTENT: ___________________________________ ________________________________ City Attorney Police Chief Lysia H. Bowling Tim Vasquez *By law, the District Attorney’s Office may only advise or approve contracts or legal documents on behalf of its clients. It may not advise or approve a contracts or legal document on behalf of other parties. Our view of this document was conducted solely from the legal perspective of our client. Our approval of this document was offered solely for the benefit of our client. Other parties should not rely on this approval and should seek review and approval by their own respective attorney(s).

MEMORANDUM

Date: April 18, 2012 To: Mayor and Councilmembers From: Luis Elguezabal, A.A.E., Airport Director Subject: Consideration for May 1, 2012 meeting Contact: Luis Elguezabal, A.A.E., Airport, extension-1010 Caption: Consent Agenda:

CONSIDERATION OF AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE THIRD AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY OF SAN ANGELO AND FEDERAL EXPRESS CORPORATION IN THE AMOUNT OF $45,113.04 ANNUALLY AT THE SAN ANGELO REGIONAL AIRPORT.

History: Federal Express Corporation entered into a lease agreement with the City on May 1,

2002, and amended the lease twice extending the lease each time by five years to 2012. Federal Express would like to exercise its third option to renew for an additional five years.

Summary: The third amendment will be for a five year term, beginning May 1, 2012 and ending

April 30, 2017. All of the terms and conditions stated in the Lease Agreement and previous and current amendments shall remain in effect.

Financial Impact: Base rental fees of $3,759.42 per month minimum will result in $45,113.04 per

year. Rate adjustment will remain as stated in Second Amendment to Lease. Related Vision Item: Provide Adequate Amenities for the Airport. Other Information/Recommendation: Staff recommends approval. Attachments: Third Amendment to Lease Agreement Presentation: None Publication: None Reviewed by Director: Luis Elguezabal, A.A.E., Airport, 04-18-12

City of San Angelo

Memo Meeting Date: April 17, 2012

To: Mayor and City Council members

From: AJ Fawver, Planning Manager

Subject: Downtown Development Commission (DDC) bylaws

Contacts: A J Fawver, Planning Manager 657-4210 Michael Dane, Interim City Manager 657-4241 Caption: Consideration of approving bylaws drafted to govern the Downtown

Development Commission

Summary:

City Council created the Downtown Development Commission by approving Article 2.4400 on October 5, 2010. The inaugural members of this Commission were appointed by Council in February and March of 2011. The DDC began conducting regular meetings in July of 2011, with their most recent meeting in February of 2012. The DDC members unanimously approved the draft bylaws as attached and have forwarded these on to the City Council for their final review and approval.

Recommendation: City staff recommends approval of the bylaws as presented. Attachments: Bylaws as drafted and approved by DDC Reviewed by: AJ Fawver, Planning Manager (04/05/12)

BY-LAWS

OF THE

CITY OF SAN ANGELO

Downtown Development Commission

ADOPTED: ____________________

ARTICLE I

Purpose, Duties and Powers

Section 1. Purpose. The Downtown Development Commission is organized and created to advise the City Council of the City of San Angelo with respect to matters of policy regarding downtown development. Section 2. Duties. The Downtown Development Commission shall act as an advisory board to the City Council and City Manager on the redevelopment and revitalization of the downtown development district. Section 3. Powers. The Downtown Development Commission shall have the power to make rules, regulations and by-laws for its own governance in conformity with the laws of the State of Texas. All of said rules, regulations and by-laws shall be approved by the city council.

ARTICLE II

MEMBERS OF THE DOWNTOWN DEVELOPMENT COMMISSION Section 1. Members. The Downtown Development Commission shall consist of 7 members. One member shall represent the interests of the San Angelo Health Foundation. Section 2. Appointment. The Downtown Development Commission members shall be appointed by the City Council of the City of San Angelo under such procedures designated by the City Council. Section 3. Qualifications. All members shall be qualified voters of the city. No commercial or non-profit organization shall have more than one representative on the Downtown Development Commission. Members shall be 21 years of age or older and shall be residents of the City of San Angelo. Section 4. Terms of Office. Of the members first appointed by the City Council, four (4) appointments shall be for a term of two years and three (3) shall be appointed for a term of one (1) year. All additional appointments shall be for a term of two (2) years, except vacancies for unexpired terms which shall be filled for the remainder of the unexpired term. Members may serve three (3) consecutive two (2) year terms and then may be reappointed after one (1) year of non-service has passed. Upon the expiration of a term, a member may continue to serve until a successor is appointed by the City Council. No member shall be eligible to serve more than two full consecutive terms; providing however, that after any period of time off the board, a person shall then become eligible to serve two more consecutive terms without regard to the number of terms or amount of time service on the Board prior thereto. A member may be terminated by the City Council at any time. Members of the Downtown Development Commission shall serve without

compensation, but may be reimbursed for expenses for education or professional conferences as approved by the City Council. Section 5. Vacancies. Any vacancy occurring on the Downtown Development Commission shall be filled by the appointment of the City Council under such procedures as it prescribes and such appointment shall be for the unexpired term of the members whose position is vacated; provided however, that a person serving such unexpired appointment shall nevertheless be eligible to serve two full consecutive terms after the completion of his/her unexpired appointment.

ARTICLE III

MEETINGS Section 1. Regular Meeting. The Downtown Development Commission shall generally hold one regular meeting each calendar month. The regular meeting of the Downtown Development Commission shall be held on the 4th Tuesday each calendar month and held at the time and location selected by the Chair. An agenda of the Downtown Development Commission shall be posted in a public area and filed with the City of San Angelo City Clerk’s Office at least 72 hours in advance of the regular meeting. Section 2. Special Meetings. A special meeting of the Downtown Development Commission may be held upon the call of the Chair, or by the Chair at the request of three members of the Downtown Development Commission. An agenda of the special meeting shall be posted in a public area and filed with the City of San Angelo City Clerk’s Office at least 72 hours in advance of the regular meeting.

Section 3. Attendance. Any member missing 25% or ¼ of the regular meetings per calendar year that is unexcused will be considered to be a terminated member. An absence will be defined as excused in instances of family emergency, work-related commitments, medical necessity or vacation outside the City of San Angelo involving the commission member. An absence will be defined as "unexcused" when no prior notification is provided to the chair or staff liaison. An absence can also be deemed unexcused when notification is provided to the chair or staff liaison, but the reason for absence does not meet the requirements of an excused absence. An absence is unexcused when it is not related to the instances defined under an excused absence.

Section 4. Quorum and Vote. A quorum shall consist of four of the members. Provided said quorum is present, a simple majority voting in a like manner for or against an issue shall constitute the passing or rejection of the issue.

Section 5. Support Staff. The City Manager shall be designated as the Downtown Development Commission’s staff liaison and shall cause copies of the Downtown Development Commission’s agenda, minutes and notices to be filed with the City of San Angelo City Clerk. Said liaison may designate other City staff to facilitate matters of the Downtown Development Commission as he/she deems necessary.

ARTICLE IV

OFFICERS Section 1. Designation and Election of Officers. The Secretary shall be designated by the City Manager. The Chair or Co-Chairs shall appoint committees for any purpose deemed necessary by the commission in order to execute more effectively its duties and responsibilities. Section 2. Terms. (A) Of the members first appointed by the City Council, four appointments shall be for a term of two years and three shall be appointed for a term of one year. (B) All additional appointments shall be for a term of two years, except vacancies for unexpired terms which shall be filled for the remainder of the unexpired term. Members may serve three consecutive two year terms and then may be reappointed after one year has passed. Section 3. Duties and Authority of Officers. a. Chair/Co-Chairs: The Chair/Co-Chair shall be appointed by the City Council. They shall preside at all meetings of the Downtown Development Commission, have responsibility for the accomplishment of all directions of the City Council and be primarily responsible for the accomplishment of the purpose and discharge of the duties and responsibilities imposed on the Board by the City Council. He/She shall appoint members of all committees and shall appoint such committees as he/she deems necessary and appropriate to carry on the business of the Downtown Development Commission and shall designate the Chair of such committees. b. Vice-Chair: Shall, in the absence of or disability of the Chair, perform the duties and exercise the powers of the Chair and shall perform such other duties as the Downtown Development Commission may prescribe. c. Secretary: She/he shall keep the minutes of all meetings of the Downtown Development Commission, shall be custodian of all books and records of the Downtown Development Commission, prepare and send or deliver such notices as directed by the Downtown Development Commission and in general, perform all duties as may be required by the Downtown Development Commission.

ARTICLE V

AMENDMENTS

Changes in the By-Laws of the Downtown Development Commission shall require a two-thirds (2/3) vote of all members of the Downtown Development Commission. The proposed changes must be noticed at least 72 hours prior to the meeting at which such changes will be considered. Changes will not become effective until they are approved by the City Council.

City of San Angelo



From: Shawn Lewis, Director of Community & Economic Development


Contact: Shawn Lewis, 657-4210 or Carl White, 657-4450


Approval of a license agreement between the City of San Angelo and Jeff Partusch, owner of 113 E. Concho Avenue, for placement of a concrete dumpster pad, dumpster and screening fence on the southwest corner of the parking area in Bart DeWitt Park for use by businesses in the 100 block of Concho Avenue, City Parks crews and the general public

Summary:

A dumpster is needed for businesses at the Concho Crossing shopping center which is nearing 90% occupancy for the first time. The City is proposing the attached license agreement to allow placement of the dumpster on a concrete pad screened by an opaque wooden fence. The dumpster will be used by businesses in the area. Parks crews and the public.

History: With increased development in downtown, the shopping center at the corner of Concho and Oakes has recently surpassed an 85% occupancy rate. Two of the businesses in this shopping center (attached to the former Western Mattress Building) have very few options for dumpster placement and trash service to the center has become problematic with only one dumpster for most of the center. Since becoming almost fully occupied, the single dumpster is filling in as few as two days. The City owns all of the land immediately behind this shopping center which currently serves as a parking area for Bart DeWitt Park. The shopping center owner wishes to place a dumpster in the corner of the lot. The trash trucks associated with the dumpster will undoubtedly shorten the lifespan of the lot, particularly where the truck pulls up to the dumpster to empty it. As such, City staff is asking the proponent to build a concrete pad where the front wheels drive onto the pad and empty the container. In addition, both the Parks Department and Operations Department have requested a screening fence be added to contain trash that may blow out of the dumpster and to screen the fence from the river trail nearby.

The dumpster will serve up to two businesses--and depending upon what develops along the river-facing portion of the Western Mattress building—possibly up to two other businesses or residential units. The dumpster will also serve Parks crews who routinely have to exit the park to unload debris, but will now be able to unload debris in this dumpster per the attached agreement.

Financial Impact: N/A

Related Vision Item

(if applicable):

Revitalize downtown area


Staff recommends approval of the agreement.

Attachments: Draft contract as approved by City Legal Department and property owner

Presentation: N/A

Publication: N/A


Shawn Lewis

Approved by Legal: April 18, 2012

Parks and Recreation



From: Anthony Wilson, Civic Events Manager

Subject: Agenda Item for April 17, 2012 Council Meeting

Contact: Anthony Wilson, Civic Events Manager, 653-5328, 234-0014

Caption: Regular Item

Second hearing and consideration of introduction of an Ordinance amending Chapter 9, Lakes, Parks and Recreation Areas, Article 9.200 of the City of San Angelo Code of Ordinances by adding Section 9.209 related to temporary variances from City ordinances for Special Events on City property.

Summary:

In 2007, the City Council approved an ordinance allowing for temporary variances from City ordinances for special events specifically at Lake Nasworthy and Twin Buttes Reservoir. Staff believes a similar ordinance covering special events on other City properties is in order.

History: In June 2007, the City Council, in an effort to accommodate the annual Showdown in San Angelo drag boat races, approved an ordinance (Sec. 9.107(h)) that allowed for temporary variances from City ordinances for special events at Lake Nasworthy and Twin Buttes Reservoir specifically.

Since then, the City has adopted a special events application process to lend order to and ensure communication regarding special events on City properties. It has become apparent that the same sorts of variances granted the drag boat races and the annual Wake the Desert wakeboard tournament may be appropriate for other special events, such as parades, festivals, the July 3 Pops Concert, etc., that occur on other City properties.

The City Council unanimously approved the first reading of the proposed ordinance on April 17 by a 5-0 vote. (Councilmen Morrison and Alexander were absent from the meeting.)

Financial Impact: None.

Related Vision Item

(if applicable):

N/A


The proposed ordinance would mirror the language of Sec. 9.107(h). That ordinance has served the community well in accommodating special events at the lakes. However, its scope does not allow for temporary variances for the many special events that occur on other City properties. These might include downtown parades, festivals, fun runs, the July 3 Pops Concert, etc.

Staff proposes the new ordinance be added to Sec 9.200 related to Parks because the Parks and Recreation Department processes the applications for all special events that occur on City property. Staff recommends approval. Council approved the proposal on first reading.

Attachments: Proposed ordinance

Presentation: None.

Publication: N/A


Carl White, Parks and Recreation Director, ext. 1521, 234-1724, April 9, 2012

Approved by Legal: April 13, 2012

AN ORDINANCE AMENDING CHAPTER 9 ENTITLED “LAKES, PARKS AND RECREATION AREAS,” ARTICLE 9.200, ENTITLED “PARKS,” BY ADDING A NEW SUBSECTION 9.209, ENTITLED “SPECIAL EVENTS,” OF THE SAN ANGELO CODE OF ORDINANCES, PROVIDING FOR SEVERABILITY, PROVIDING FOR A PENALTY AND PROVIDING FOR AN EFFECTIVE DATE.

BE IT ORDAINED BY THE CITY OF SAN ANGELO:

1) THAT, Chapter 9, Article 9.200 of the Code of Ordinances of the City of San Angelo, Texas is hereby amended to add a new Sub-Section 9.209 to read as follows: ARTICLE 9.200 PARKS

Sec. 9.209 Special Events

Special Events. On certain occasions the City Council may authorize individuals or groups to hold special events for recreational purposes on City property. Additionally, the City Council may authorize temporary variances from the prohibitions and requirements of City ordinances for the events. In determining whether to authorize an event and grant one or more variances, the council shall take into account the following factors:

(1) Proximity of event to residential areas;

(2) Probability of event causing undue disturbance to users of the City property;

(3) Ability of organizers to ensure safety of participants and observers, including but not limited to acquiring appropriate insurance;

(4) Whether varying from the standard requirements and prohibitions of City ordinances would result in undue danger to participants under the circumstances (i.e., location, time, size, etc.) of the special event; and

(5) Any other unique circumstances relating to each particular event. 2) THAT, the following severability clause is adopted with this amendment:

SEVERABILITY: That 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.

3) 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 this Code. Each day of such violation shall constitute a separate offense. 4) THAT, this Ordinance shall be effective on, from and after the date of

adoption.

INTRODUCED on the day of , 2012, and finally PASSED,

APPROVED and ADOPTED on this the day of , 2012.

CITY OF SAN ANGELO, TEXAS

ATTEST: BY:

Alvin New, Mayor By: Alicia Ramirez, City Clerk Approved as to Content: Approved as to Form: Carl White Lysia H. Bowling Parks & Recreation Director City Attorney

City of San Angelo Parks & Recreation



From: Anthony Wilson, Civic Events Manager

Subject: Agenda Item for May 1, 2012, Council Meeting

Contact: Anthony Wilson, Civic Events Manager, 234-0014


Consideration of approving variances to the City Code for the downtown Simply Texas Blues Festival on May 12, 2012.

Summary:

The variances sought are related to permits for tents and signs, the placements of signs and banners, and to the City’s noise ordinance which prohibits loud or prolonged noises that disturb the public. The noise ordinance states that if such noise occurs after 10:30 p.m., that is clear proof the noise is disturbing the public. The 4th annual Simply Texas Blues Festival, hosted by the San Angelo Blues Society, will occur on Oakes Street between Concho and Twohig avenues. Live, amplified music is scheduled to be performed from 9 a.m. until midnight. The event is expected to draw 7,000-8,000 people.

History: The City Council on April 17 unanimously approved by a 5-0 vote a proposed ordinance allowing for temporary variances from City ordinances for special events held on City property other than Lake Nasworthy and Twin Buttes Reservoir. (Councilmen Morrison and Alexander were not at the meeting.) Staff anticipates the Council approving the ordinance as part of the consent agenda on the May 1 meeting.

This will be the fourth year the Blues Festival has occurred, but the first year it has sought variances.

The noise ordinance reads as follows:

Sec. 8.114 Noises Prohibited

(a) It shall be unlawful for any person to make, create, continue or cause to be made, created or continued any unnecessary, loud, unusual or prolonged noise which disturbs, or is calculated to disturb the persons in the immediate vicinity thereof.

(b) In determining whether any such noise is sufficient to constitute a disturbance hereunder, the Court shall consider whether such noise is of such character, intensity and duration as to disturb a person of ordinary sensibilities, taking into consideration

the nature of the neighborhood in which such noise occurs.

(c) Proof that any such noise occurred between the hours of ten thirty o’clock (10:30) P.M. and seven o’clock (7:00) A.M., or that such noise occurred three (3) or more times in any ten-day period shall be prima facie proof that persons in the immediate vicinity thereof were disturbed.

The area surrounding the Blues Fest is a mix of residential and commercial properties.

The remaining variances for tent and sign permits, and for the placement of signs and banners related to the event are identical in nature to variances granted the annual drag boat races and wakeboard tournament at Lake Nasworthy.

Financial Impact: None.

Related Vision Item

(if applicable):

N/A


Staff recommends approval.

Attachments: Special Event Application Supplement to the Special Event Application Resolution

Presentation: None.

Publication: N/A


Carl White, Parks and Recreation Director, April 18, 2012

Approved by Legal: Yes.

A RESOLUTION OF THE CITY OF SAN ANGELO AUTHORIZING APPLICANT, SAN ANGELO BLUES SOCIETY, TO HOLD A SPECIAL EVENT DOWNTOWN KNOWN AS “SIMPLY TEXAS BLUES FESTIVAL” AND GRANTING VARIANCES FROM CITY ORDINANCES, INCLUDING NOISE ORDINANCE

WHEREAS, the City Council for the City of San Angelo has approved a Special Event Application process through which individuals or groups may seek authorization to hold special events on public property; and, WHEREAS, Chapter 9, Article 9.200 of the Code of Ordinances for the City of San Angelo provides that the City Council may authorize temporary variances from the prohibitions and requirements of City ordinances for such events; and, WHEREAS, the “SIMPLY TEXAS BLUES FESTIVAL” has for three years been an annual entertainment event in downtown San Angelo; and, WHEREAS, the City Council has taken into account those factors as applicable pursuant to the ordinance providing for the granting of variances; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN ANGELO, TEXAS THAT: San Angelo Blues Society (hereinafter Applicant), is hereby authorized to hold a special event in downtown San Angelo, known as “Simply Texas Blues Festival” on May 12th, 2012, and set up for the event on May 11th, and clean up after the event on May 13th, 2012. The event may include those activities as described on that certain “City of San Angelo-Special Event Application” and attachments thereto (hereinafter collectively referred to as “Application”) submitted by Applicant, a copy of which is attached to this Resolution as Exhibit A, and made a part hereof for all purposes. The variances referred to in the Application relating to City ordinances, including the City Noise Ordinance, is hereby granted during those times when the said special event is in progress on May 12, 2012. PASSED and APPROVED THIS DAY OF , 2012. CITY OF SAN ANGELO, TEXAS ATTEST: Alicia Ramirez, City Clerk Alvin New, Mayor APPROVED AS TO CONTENT APPROVED AS TO FORM

Anthony Wilson, Civic Events Manager Lysia H, Bowling, City Attorney

1

EXHIBIT A SUPPLEMENT TO SPECIAL EVENTS PERMIT

Simply Texas Blues Festival May 12, 2012

Permit Holder: San Angelo Blues Society (hereinafter “SABS”), 2437 S. College Hills Blvd., San Angelo, TX 76904 Contact Person: Name Phone Larry Jolley (325) 944-0021 Location of Event: South Oakes Street between Concho and Twohig avenues;

downtown San Angelo Name of Event: Simply Texas Blues Festival (hereinafter “E vent”) Date of Event: May 12, 2012 Set up: May 11, 2012, noon through midnight Anticipated Attendance: 7,000-8,000 Hours of Operation: 9:00 am through midnight May 12 This supplement to the special event permit is issued to the San Angelo Blues Society by the City of San Angelo (hereinafter “City”) subject to the conditions and requirements set forth below. Permitted Activities

1. SABS may conduct a blues music festival during the date set out above.

2. SABS may close Oakes Street between Beauregard Street and Concho Avenue,

and Twohig Avenue between Chadbourne and Magdalen Streets during the

Event, its set-up and its clean-up.

3. SABS may set up tents and signs and allow vendors in the Area subject to any

regulations set out in this Permit.

2

Requirements for Permit Holder (“SABS”)

1. Sanitation. a. SABS shall provide a total of twenty (20) Port-A-Potties. b. SABS will clean up Area at the conclusion of the Event.

2. Insurance and Indemnification. a. SABS shall provide insurance as required by the City of San Angelo’s

Risk Manager and shall provide proof of such insurance.

3. Vendors. a. Vendors shall obtain all necessary health permits and shall have

appropriate liability insurance and an active Sales and Use Tax Permit. The Interim City Manager or his designee shall have authority to require SABS to comply with the above-listed requirements and to correct any deficiencies. In case of a threat to the public health or safety, the Interim City Manager or his designee may suspend operations of the Event until deficiencies are corrected. Variances: See Attachment 1 to this Exhibit. Authority of City to Regulate Event The Interim City Manager or his designee shall have the authority to interpret this Permit and/or adopt new rules during the Event to ensure public health and safety and proper use of all public rights-of-way. EVENT SPONSOR Name: Anthony Wilson Date Title: Civic Events Manager

3

Attachment 1 to Exhibit A TO THE 2012 SIMPLY TEXAS BLUES FESTIVAL

Exhibit 1 to Event Resolution

Variances 1) Conduct of this Event shall not constitute a violation of the City’s noise

ordinances. 2) Notwithstanding City ordinances to the contrary, event Sponsor shall not be

required to obtain permits for tents and signs. 3) Notwithstanding City ordinances to the contrary, flags, banners, and

information signs shall be allowed for the Event. Placement shall be coordinated with and approved by the Interim City Manager or his designee.

City of San Angelo



From: Elizabeth Grindstaff, Assistant City Manager


Contact: Elizabeth Grindstaff, 325.657.4241

Caption: Regular Agenda Item

Discussion and possible action related to the City of San Angelo’s participation in the National League of Cities (NLC) Service Line Warranty Program

Summary:

The NLC Service Line Warranty Program, administered by Utility Service Partners (“USP”), provides residential customers with affordable warranty protection for both water and sewer lines. This program is offered at no cost to the City and is an initiative of the National League of Cities.

Residents who have not set aside money to pay for an unexpected, expensive utility line repair have an opportunity to obtain a low cost warranty that will provide repairs for a low monthly fee, with no deductibles or service fees. The work will be performed by licensed, San Angelo-based plumbers who will call the customer within one hour of the filing of a claim. The repair is performed professionally and quickly, within 48 hours but often within 24 hours. USP provides a personally staffed 24/7 repair hotline for residents, 365 days a year. The warranty contracts are month-to-month and there is no cancellation fee for the resident should they decide they no longer wish to participate.

USP will provide coverage for the portion of the service line for which the homeowner is responsible for (unless the City would like to set it up differently). USP will cover the portion of the lateral water and sewer line that would be most helpful to the city and homeowner. Both products provide repair or replacement of broken or leaking lines including clean-outs. Specific repair coverage is as follows:

· The Water Line Warranty provides for the repair or replacement of a single, buried, outside water line that runs from the point of the utility connection or responsibility to the foundation of the home. This warranty provides coverage of up to $4,000 for each water line repair plus an additional $500 for public sidewalk cutting if needed.

· The Sewer Line Warranty provides for the repair or replacement of a

single buried, outside sewer line that runs from the foundation of the home to the main line. This warranty provides coverage of up to $4,000 for each sewer line repair.

History: The NLC Service Line Warranty Program has enjoyed very favorable results in participating cities with an average customer enrollment rate slightly over 12% for each warranty product. Typical residential participation rates range from 25% to 35% after several campaigns. The NLC USP program has been adopted by over 100 cities nationwide and over 150 cities will be enrolled by the fall of 2012. USP has partnered with cities such as Phoenix, Atlanta, and Milwaukee, as well as Odessa, Midland, Abilene, Bryan, and Plano. The North Central Texas Council of Governments (NCTCOG), which consists of cities in the Metro-plex, solicited a Request for Qualifications (RFQ) in 2010 from companies that offer water and sewer service line protection programs. After a thorough evaluation of these businesses, including their financial status, Utility Service Partners, Inc. was chosen as the preferred program for NCTCOG member cities. Since this evaluation has already taken place, the City of San Angelo is able to enter into an interlocal agreement with the NCTCOG, which would give the City the ability to work with USP without having to repeat the RFQ process.

Financial Impact: There is no cost to the City of San Angelo for participating in the program. Instead, there is the possibility of some revenue, a percentage “royalty” offered to the City by USP based on customer participation. It will ultimately be the Council’s decision whether or not to add the royalty in the program cost. However, the royalty could be used to offset other expenses associated with typical residential line repairs that are currently borne by the Water Utilities Department.

Related Vision Item

(if applicable):


Staff recommends the Council agree to participate in the program, and to use an Interlocal Agreement, drafted by the North Central Texas Council of Governments (NCTGOG), to expedite the program’s implementation locally.

Attachments: Interlocal Agreement

Presentation: A PowerPoint presentation will be given by Mr. Brian Davis of USP.

Publication: NA


NA

Approved by Legal: Dan Saluri, Senior Assistant City Attorney

Interlocal Agreement - 4/26/2012

INTERLOCAL AGREEMENT FOR A

COOPERATIVE PROGRAM FOR

SERVICE LINE PROTECTION PROGRAMS

THIS INTERLOCAL AGREEMENT (“Agreement”), made and entered into pursuant to the Texas Interlocal Cooperation Act, Chapter 791, Texas Government Code (the “Act”), by and between the North Central Texas Council of Governments, hereinafter referred to as “NCTCOG,” having its principal place of business at 616 Six Flags Drive, Arlington, Texas 76011, and the City of San Angelo, a local government, as defined in the Act (a county, a municipality, a special district, or other political subdivision of the State of Texas), hereinafter referred to as “Participant,” created and operated to provide one or more governmental functions and services, and having its principal place of business at 72 West College Street, San Angelo, Texas.

W I T N E S S E T H WHEREAS, NCTCOG is a regional planning commission and political subdivision of the State of Texas operating under Chapter 391, Texas Local Government Code; and WHEREAS, NCTCOG has performed the due diligence process for a Water Service Line Protection Program for local municipalities; and WHEREAS, pursuant to the Act, NCTCOG is authorized to contract with eligible entities to perform governmental functions and services; and WHEREAS, in reliance on such authority, NCTCOG has a cooperative program under which it contracts with eligible entities under the Act; and WHEREAS, Participant has represented that it is an eligible entity under the Act, that by Administrative Action has authorized this Agreement on April 3, 2012, and that it desires to contract with NCTCOG on the terms set forth below; and WHEREAS, NCTCOG’s Executive Board approved a resolution to provide these services through interlocal agreements at its January 27, 2011 board meeting; NOW, THEREFORE, NCTCOG and the PARTICIPANT do hereby agree as follows: ARTICLE 1: LEGAL AUTHORITY The Participant represents and warrants to NCTCOG that (1) it is eligible to contract with NCTCOG under the Act because it is one of the following: a local government, as defined in the Act (a county, a municipality, a special district, or other political subdivision of the State of Texas) or any other state, or a combination of two or more of those entities, a state agency (an agency of the State of Texas as defined in Section 771.002 of the Texas Government Code, or a similar agency of another state), or a non-profit corporation created and operated to provide one or more governmental functions and services, and (2) it possesses adequate legal authority to enter into this Contract. ARTICLE 2: APPLICABLE LAWS NCTCOG and the Participant agree that this Agreement shall be governed by and subject to all applicable state and federal laws, statutes, rules and regulations in effect or promulgated during the term of this Agreement, whether or not cited herein, including the Texas Interlocal Cooperation Act, Chapter 791 of the Texas Government Code... ARTICLE 3: WHOLE AGREEMENT This Agreement and any attachments, as provided herein, constitute the complete contract between the parties hereto regarding the subject matter herein described, and supersede any and all prior oral and written agreements between the parties relating to the matters set forth herein. ARTICLE 4: MASTER CONTRACT NCTCOG AND Utility Service Partners Private Label, Inc. (“USP”) have entered into a Master Contract calling for USP to provide line repair coverage to homeowners residing within the jurisdiction of the

Interlocal Agreement - 4/26/2012

Participant for water lines and sewer lines as part of a protection program. Furthermore it is anticipated that USP will enter into Letters of Engagement with subscribing Participants outlining the services to be provided to the citizens of Participant. The initial term of the Master Agreement is three (3) years with a maximum of three (3) one (1) year renewals for a total, maximum term of six (6) years. NCTCOG shall act as a facilitator only with regard to the program, it being understood that the direct contractual relationship between USP and the Participant shall control the nature and extent of services to be provided. NCTCOG shall have no direct contractual relationship with Participant regarding this service other than to facilitate the program. Participants will be entitled to receive a portion of the revenues received by USP from citizens within their jurisdiction as more fully described in the Master Contract and the Letters of Engagement. No payments will be made by NCTCOG to the Participant or from the Participant to NCTCOG. ARTICLE 5: ELECTION TO PARTICIPATE/TERMINATION. By electing to execute this Agreement Participant acknowledges that it is subscribing to this service with USP for the term and upon the conditions set out in the Letter of Agreement and the adjoining Master Contract. NCTCOG and Participant may terminate this Agreement for any reason upon thirty (30) days prior written notice to the other. ARTICLE 6: CHANGES AND AMENDMENTS This Agreement may be amended only by a written amendment executed by both parties, except that any alternations, additions, or deletions to the terms of this Agreement which are required by changes in Federal and State law or regulations are automatically incorporated into this Agreement without written amendment hereto and shall become effective on the date designated by such law or regulation. THIS INSTRUMENT HAS BEEN EXECUTED IN TWO ORIGINALS BY THE PARTIES HERETO AS FOLLOWS: *Denotes required fields

NOTE: Facsimile copies of this document will not be acceptable as ORIGINALS.

* Name of Participant (local government, agency, or non-profit corporation) * Mailing Address * City State ZIP Code *By: Signature of Authorized Official * Typed Name of Authorized Official * Typed Title of Authorized Official Date

North Central Texas Council of Governments 616 Six Flags Drive, Arlington, Texas 76011 *By: Signature of Authorized Official * Typed Name of Authorized Official * Typed Title of Authorized Official Date

City of San Angelo

Memo Meeting Date: May 1, 2012

To: City Council members

From: Jeff Hintz, Planner

Subject: Z 12-03, a request for approval of a zone change from Single-Family

Residential (RS-1) to Heavy Commercial (CH) on the following property:

Location: 320 West 26th Street, approximately 650 feet east from the intersection

of North Bryant Boulevard and West 26th Street, more specifically occupying H.O. Byrd Subdivision, the west 128 feet Lot 23 in northern San Angelo.

Purpose: Approval of this request will zone the west 128 feet of Lot 23 Heavy

Commercial (CH).

Contacts: Daniel Anderson 325-658-6539

Herb Hooker, SKG Engineering 325-655-1288 Jeff Hintz, Planner 325-657-4210

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

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

Z 12-03: Daniel Anderson 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: 320 West 26th Street, approximately 650 feet east from the intersection of North Bryant Boulevard and West 26th Street, more specifically occupying H.O. Byrd Subdivision, the west 128 feet Lot 23 in northern San Angelo, changing the zoning classification from Single-Family Residential (RS-1) to Heavy Commercial (CH) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

Summary: The City Council may:

(1) approve the proposed zone change;

(2) modify the application to some alternative zoning classification believed to be more

appropriate; or (3) deny the proposed zone change

Recommendation: Planning staff recommends modification of the request to include

the entirety of Lot 23. However based upon circumstances, this is one of the only times staff can see rationale where a partial lot rezoning may be appropriate due to circumstances listed within the recommendation section of the report. On April 16, 2012 the Planning Commission by a vote of 6-0, approved the request to zone the west 128 feet of Lot 23 in the H.O Byrd subdivision to Heavy Commercial (CH).

History and Background:

General Information

Existing Zoning: Single-Family Residential (RS-1) Existing Land Use: Storage and materials yard Surrounding Zoning/Land Use: North: ML & RS-1 Storage & materials yard West: CG/CH Auto parts store and future clinic South: CH & ML Residences & storage yard East: ML Telecommunications business

Thoroughfares/Streets: West 26th Street is defined as a “local street.”

“Local streets” are designed to carry light neighborhood traffic at slower speeds.

Bryant Boulevard is defined as a “major arterial” and is designed to connect freeways and other arterials. Access to these types of streets is deemed secondary while mobility is the primary function.

Zoning History: No previous zoning cases on the property

Vision Plan Map: Commercial Related Comp Plan Excerpts: “Within industrial areas, allow some land to

be designated for other compatible uses of commercial employment, to encourage stable employment base.”

Special Information

Traffic Concerns: Changing the zoning of this site is not expected to generate traffic that the site wouldn’t normally see.

Parking Requirements: Warehouses and storage yards require 1 parking

space for every 4 employees Parking Provided: it appears no paved spots are provided Related Specific Use Standards: Section 511.F.3 of the Zoning Ordinance

states that, “All areas used for required off- street parking shall be paved, unless specifically exempted by other provisions of this section.”

Density: low density, high intense uses in the area Notification Required: Yes Notifications Sent: 8

Responses in Favor: 0 Responses in Opposition: 0

Analysis:

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

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

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

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

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

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

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

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

The staff recommendation is based upon the statements listed below. Partial lot rezoning has been researched by staff at the request of the Planning Commission in July of 2011, and it was found that generally with a few exceptions that partial lot rezoning is not done by cities that were researched. Abilene and Lubbock occasionally will rezone portions of lots instead of the entire lot, but generally recommend against it unless special circumstances present themselves. Having a lot with 2 different zoning designations creates a lot with 2 different sets of regulations. Having said that, staff has worked with the proponent and it has been determined that special circumstances are present in this case. The proponent has federal contracts that mandate the business to be operated within a manufacturing zone; zoning only a portion of the lot seems to be the only scenario that will work with the goals of the proponent and the Comprehensive Plan for the city. Staff feels that in this instance, special circumstances apply that make sense in rezoning only a portion of the lot. The requested Heavy Commercial (CH) zone is consistent with the plans and policies of the city as well as with the Zoning Ordinance. The vision for the future of this area calls for “Commercial” and a CH zone fits this designation. The Zoning Ordinance seeks to buffer higher-intensity uses from lower-intensity uses and staff feels this particular property would be a location where a CH zoning designation would fit this vision. North Bryant is not appropriate for heavier intensity uses, but the side streets in close proximity make for appropriate locations for these types of activities. The subject property is used as a storage yard for materials used in conjunction with construction and communications services. While this type of facility seeks to have access to a major arterial such as Bryant, it is not the type of use that should necessarily front onto Bryant. Staff believes this location is a successful fit for a CH district. The development patterns of the area are not expected to be altered by this zone change. The area is already being used for heavily intensive uses and a zone change from RS-1 to a CH district is not expected to change the development of the area. Along similar lines, staff does not feel this zoning designation will change conditions that would necessitate any type of amendment to the zoning ordinance. This zone change is also

not expected to have any adverse effect on the natural environment as the property is currently in use. While staff does recognize that there are some residential uses to the south of the subject property, it is believed that reducing the intensity of the uses allowed in this area with a CH zoning designation will be a benefit to this lower-intensity, residential use. Staff does not recommend heavier-intensity uses and zoning districts in tandem with residential development in most cases, but in this case a lower-intensity zoning designation will be a benefit to the neighbors when compared to the Light Manufacturing (ML) zoning that is currently in place in this neighborhood. While a CH is not optimal for the residences in the area, it is deemed by staff to be a better alternative than the somewhat-present Light Manufacturing zoning district which currently encompasses the eastern portion of the lot. The residences to the south of the subject property are envisioned as “commercial”; in the future, this area should develop in this vision the Comprehensive Plan establishes. In the meantime, the applicant’s business will be allowed to continue and is allowed by right in CH zoning, and the neighboring residential uses will see potential future development that is less intrusive and less intense.

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

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

the subject property; excerpt from zoning map, highlighting subject property; aerial photo, highlighting subject property; draft minute excerpt from Planning Commission Meeting; and draft ordiance.

Presentation: Jeff Hintz, Planner

Reviewed by: AJ Fawver, Planning Manager (04/11/12)

A. Z 12-03: Daniel Anderson

A request for approval of a zone change from Single-Family Residential (RS-1) to Heavy Commercial (CH) on the following property:

320 West 26th Street, approximately 650 feet east from the intersection of North Bryant Boulevard and West 26th Street, more specifically occupying H.O. Byrd Subdivision, the west 128 feet of Lot 23 in northern San Angelo.

Planner Jeff Hintz presented the case consistent with the staff report which recommended approval of a zone change from RS-1 to CH on the entirety of Lot 23. Bill Lawrence asked if there was verification of the partial zoning Mr. Lewis and Mr. Hintz responded that they believed it would be necessary but the proponent could better answer that question. Sam Tambunga and Bill Wynne noted the appropriateness of the request based on the special circumstances. Joe Grimes asked what the taxing implications were and Mr. Hintz and Mr. Lewis responded they were not qualified to address this as the Tom Green County Appraisal District levies the taxes. Mr. Grimes asked if there were other lots had been partially zoned. Mr. Hintz responded that there are several that occur already within the city but it is not staff’s policy to create this if it can be avoided. Chairman Lawrence opened the public hearing. Herb Hooker came forward to speak in favor of the item. He noted staff’s work to avoid a change to the Vision Plan because the original ML request was in conflict. He noted his belief that the staff report doesn’t note strong opposition to partial lot zoning. He also gave background about Shannon Medical’s new clinic near the subject property. Joe Grimes asked if this was all to avoid a screening fence. Mr. Hintz noted that the fence was required, but it would still be good to have the property rezoned anyhow. Mr. Anderson noted that his contract doesn’t’ require manufactured zoning, but there is a product specification that requires manufacturing in a manufacturing area. Bill Wynne asked about variance from the fencing requirement and Mr. Lewis responded that would be the prerogative of the Zoning Board of Adjustment. It was also pointed out by Mr. Hintz and Mr. Lewis that this would accomplish a city goal of zoning property appropriately. Bill Wynne moved to approve the zone change request on the west portion of the lot. Sam Tambunga seconded the motion which passed unanimously 6-0.

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 320 West 26th Street, approximately 650 feet east from the intersection of North Bryant Boulevard and West 26th Street, more specifically occupying H.O. Byrd Subdivision, the west 128 feet Lot 23 in northern San Angelo, changing the zoning classification from Single-Family

Residential (RS-1) to Heavy Commercial (CH) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY

RE: Z 12-03: Daniel Anderson

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,


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: 320 West 26th Street, approximately 650 feet east from the intersection of North Bryant Boulevard and West 26th Street, more specifically occupying H.O. Byrd Subdivision, the west 128 feet Lot 23 in northern San Angelo shall henceforth be permanently zoned as follows: Heavy Commercial (CH) 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 May, 2012 and finally PASSED, APPROVED AND ADOPTED on this the 15th day of May, 2012.


by:____________________________________

Alvin New, Mayor

ATTEST:

by:________________________________ 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


To: Planning Commission members

From: Jeff Hintz, Planner

Subject: Z 12-04: Claudia Perez, a request for approval of a zone change from

Single Family Residential (RS-1) to Heavy Commercial (CH) to specifically allow “vehicle repair” as defined in Section 315.I of the Zoning Ordinance on the following property:

Location: 2687 & 2695 Armstrong Street, approximately 400 feet south from the

intersection of Armstrong Street and East 28th Street. More specifically occupying the Lewis Subdivision, Block 1, Lots 3 & 4 in northern San Angelo.

Purpose: Approval of this request would zone the property Heavy

Commercial (CH)

Contacts: Claudia Perez 325-763-4967

Jeff Hintz, Planner 325-657-4210

Caption: First Public Hearing and consideration of the Planning Commission’s

recommendation modifying a request for a zone change from Single-Family Residential (RS-1) to Heavy Commercial (CH), alternatively recommending a zone change from Single-Family Residential (RS-1) to General Commercial (CG) with an introduction of an Ordinance amending Chapter 12, Exhibit “A” (Zoning Ordinance) of the Code of Ordinances, City of San Angelo

Z 12-04: Claudia Perez 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: 2687 & 2695 Armstrong Street, approximately 400 feet south from the intersection of Armstrong Street and East 28th Street. More specifically

occupying the Lewis Subdivision, Block 1, Lots 3 & 4 in northern San Angelo, changing the zoning classification from Single-Family Residential (RS-1) to General Commercial (CG) District; PROVIDING FOR SEVERABILITY AND PROVIDING A PENALTY


(1) approve the proposed zone change;

(2) modify the application to some alternative zoning classification believed to be more

appropriate; or (3) deny the proposed zone change

Recommendation: Planning staff recommends modifying the Zoning Classification

to Neighborhood Commercial (CN). On April 16, 2012 the Planning Commission recommended a General Commercial (CG) zoning classification for the property by a unanimous vote of 6-0.

History and Background:

General Information

Existing Zoning: Single-Family Residential (RS-1) Existing Land Use: Undeveloped residential lots Surrounding Zoning/Land Use: North: RS-1 Residences and personal animal yards West: RS-1 Residences South: CH Repair and storage yard East: RS-1 & CG/CH Television station & residence

Thoroughfares/Streets: Armstrong Street south of E. 28th Street is defined

as a “collector street”, which is designed to connect local traffic to arterials and generally carries traffic at a moderate rate of speed.

Armstrong Street north of E. 28th Street is defined as an “arterial street”, which is designed to connect collector streets to freeways and carries large volumes of traffic at high speeds. Access is

secondary and mobility is the prime function of these streets.

Zoning History: No previous zoning cases on this property In 1984, ZC 1459, a request to change the zoning

from RS-1 to CG on the property immediately to the north was denied by the Planning Commission. The minute record reflects concerns by commissioners and neighbors over commercial encroachment into the neighborhood.

In 1998, ZC 98-01, a request to change the zoning

from RS-1 to CH on the property immediately to the south of this property was denied by the Planning Commission by a vote of 5-2. This decision was appealed to the City Council and was overturned and approved. At the time, it was cautioned by the Planning Director and City Attorney that approval of the request for CH could be constituted as spot zoning because the entire area was not being rezoned or re-envisioned at the time of the request. These same principles are still applicable to the situation today in this proposal for CH zoning. Spot zoning in the State of Texas is also anything that does not follow the vision set forth by the comprehensive plan, which in this case is Neighborhood Center. In addition, CH zoning also contradicts the comprehensive plan in an extreme way when compared to the intent of a Neighborhood Center which is intended for CN zoning.

Applicable Regulations: Any time a commercial use abuts a residential

district or use, an opaque privacy fence is required Development Standards: All required off-street parking and the

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

In CN districts, “Type 1 Outdoor Display shall be allowed adjacent to a principal building wall and extending to a distance no greater than 5 feet from the wall. Such storage shall not be permitted to block windows, entrances or exits, and shall not impair the ability of pedestrians to use the building.”

Vision Plan Map: Neighborhood Center Related Comp Plan Excerpts: “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.”

“Rezone or remove any CG/CH zoning from

adjacent to existing neighborhoods.” Adding a CH districts to this area would be a more intensive use than CG/CH and would be contrary to this goal.

“Require a buffer separating commercial,

industrial, or agricultural zoned lands from neighborhoods.”

“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 residential to commercial will certainly generate additional traffic than if the property remained as is. Armstrong Street is designed to accommodate appropriate commercial traffic.

Parking Requirements: Vary depending upon the use of the property.

Retail sales and repair shops require 1 space for every 200 square feet of floor area.

Parking Provided: no parking spots are currently provided on the lots Density: predominantly low-density residential

development in the surrounding areas to the west. The vision plan also calls for a continuation of the future development of this area as a neighborhood and node near Armstrong and 28th

Notification Required: Yes

Notifications Sent: 7


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








The staff recommendation is based upon the statements listed below. The original request for Heavy Commercial is inconsistent with the plans and policies the city has in place for the area. “Neighborhood Centers” are intended for smaller neighborhood-oriented businesses that blend in with the surrounding properties. Staff believes that CH zoning will be inconsistent with the surrounding area and will negatively affect the surrounding properties. A CH district has the potential to alter development patterns within this area. Armstrong Street is designed to carry additional traffic that a commercial activity will likely bring, however there is more to consider than just traffic. High-intensity uses such as pipe

yards, vehicle repair, aggregate material storage, warehousing and freight movement, and industrial services are a necessary use within any community; however, these types of businesses do not fit well directly adjacent to residential properties with no buffer. While it is currently proposed to be used for automotive repair, all of the aforementioned activities would also be allowed by right within a Heavy Commercial zone and future development of this property and neighboring properties must be considered. It is the belief of staff that such a high-intensity usage will have a detrimental effect on the surrounding areas in the future. The Comprehensive Plan utilizes this as a consistent theme throughout the document, and the city’s endorsement and acceptance of this Plan indicate a conscious choice to make decisions like this accordingly. The intent of the Comprehensive Plan and Zoning Ordinance is to buffer less intense uses such as residential neighborhoods from higher intensity uses (such as those allowed in a CH district). Currently, there is commercial envisioned for the east portion of Armstrong Street across from the subject property, while to the west of the subject property, neighborhood-type development is envisioned. In this case, the neighborhood center is the acting buffer between the neighborhood and the more intense commercial activities that could potentially be allowed on the eastern portion of Armstrong Street. It is the opinion of staff that this type of development is more sustainable and less damaging than what is proposed. While any type of development will have some effect on the natural environment, it is believed that the activities allowed within a Neighborhood Commercial (CN) zone create less adverse effects on surrounding properties than those allowed in a CH zoning designation. While there is presently a CH district to the south of the subject properties, staff believes an extension of this district would have detrimental effects on the development of the area and is inconsistent with the plans and policies currently in place. This CH district was created under a very controversial zone change request that both the city staff and Planning Commission argued against approving. A Neighborhood Commercial district will allow for limited vehicle repair and is much less intensive than a full vehicle service would be on the surrounding areas. Limited vehicle service in CN districts allows for two service bays and the replacement of minor vehicle parts, state inspections, tire sales and repair, along with brake repair and replacement of suspension components. Sales and installation of custom parts that do not enhance the performance of the engine or alter the stock components of a vehicle are allowed within CN zones as well. These types of automotive services fit well within a neighborhood and can certainly aid in the development of the neighborhood. Neighborhood Commercial zones allow for Type One outdoor display. A Heavy Commercial zone would not place any limitations on the amount of outdoor storage that could occur on site. This unlimited outdoor storage in conjunction with full service vehicle repair has the potential to seriously alter development patterns and the future development of the neighborhood. Staff believes that a CN zone allowing for limited automotive repair will fit in with the surrounding residential neighborhoods more appropriately than a Heavy Commercial zone would.

Proposed Conditions

N/A


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

the subject property; excerpt from zoning map, highlighting subject property; aerial photo, highlighting subject property; draft Planning Commission minutes; citizen responses; and draft ordinance.

Presentation: Jeff Hintz, Planner

Reviewed by: AJ Fawver, Planning Manager (04/05/12)

. Z 12-04: Claudia Perez

A request for approval of a zone change from Single Family Residential (RS-1) to Heavy Commercial (CH) to specifically allow “vehicle repair” as defined in Section 315.I of the Zoning Ordinance on the following property: 2687 & 2695 Armstrong Street, approximately 400 feet south from the intersection of Armstrong Street and East 28th Street. More specifically occupying the Lewis Subdivision, Block 1, Lots 3 & 4, in northern San Angelo.

Jeff Hintz presented the case consistent with the staff report which recommended modification of the request to Neighborhood Commercial (CN) Zoning. Bill Wynne asked if the applicant could do occasional full service auto repair such as changing an engine or transmission with CN zoning. Mr. Hintz responded that this would be a zoning violation. Sebastian Guerrero asked about homes in the vicinity. Mr. Tambunga asked why the zoning ordinance differentiates between serving a transmission vs. replacing a transmission. Mr. Hintz responded that the accumulation and intensity of the replacement tended to have a negative effect on neighboring properties and could also tend to have automobiles left overnight. Chairman Lawrence asked if commercial developments such as a strip mall could be in this area. Hintz responded yes. He noted car washes with a conditional use, restaurants, barber shop, animal clinics, offices, mini-warehouses with Conditional Use, and non-profits among other things would be allowed in this zoning classification Sebastian Guerrero noted that the driveway had already been built and looks nice. Joe Grimes recapped the discussion and asked if CG could be appropriate. Mr. Hintz noted that CG would provide for full service automotive repair with a conditional use. Mr. Lewis added that staff couldn’t recommend approval of a request for CG because of the intensity it allows for the area and that it would be in contrast to the comprehensive plan. Jose Guerrero came forward to speak in favor. He intends to have shop on front of the lots he owns to the west. Jose Guerrero noted that the lot was covered with junk, cleaned up lot extensively and just needs an opportunity to create the business. Bill Wynne asked if engines or other major repairs could take place. Applicant responded yes, occasionally. Joe Grimes asked if the business would be full service Proponent answered he is a general mechanic and that occasionally he may have to remove and switch a transmission and engine. Chairman Lawrence asked what would be allowed under CN. Mr. Hintz responded by reading the allowed auto usages in CN.

Mr. Tambunga asked if the allowed auto repair uses would allow him to have a viable business and the proponent responded yes. Grimes asked why he requested CH if a CN would seem to work with what he was looking to accomplish on the property. The proponent stated that he didn’t understand different levels of zoning that the ordinance defined as limited and full auto service. Mr. Grimes asked what 2-5 year plan for the business is and the proponent stated that he wishes to retain ownership and that San Angelo is growing and he wants to contribute to this growth. Sebastian Guerrero inquired about the next level of zoning up from CN. Mr. Hintz responded that Office Commercial followed by General Commercial, then Office Warehouse, and finally Heavy Commercial was the bass of hierarchy for commercial zoning designations. Mr. Lawrence asked if this would be considered spot zoning and Mr. Lewis stated that staff could look into a possible amendment to the vision plan for this area. Mr. Wynne stated that we have a history of slowing development in area. We shouldn’t restrict them. Darlene Jones mentioned that it sounded like the ordinance was really limiting what could take place at this particular location. Mr. Wynne stated that citizens need a place to get cars fixed in all parts of town. Mr. Grimes made a motion to zone the property General Commercial (CG) with a conditional use allowing for full service vehicle repair. A condition being a privacy fence is installed around the business to shield any outdoor parts or components from public view. Mr. Lewis stated that the ordinance already calls for type 2 storage in CG zones and that the storage is limited to 10% of the site area or 1000 square feet whichever is greater. It was also clarified that a privacy fence would be required along the north and west boundary of the property without any conditions being stipulated. Darlene Jones asked if there had been any shopping centers in this area. Mr. Hintz responded city staff was not aware of any proposals to have a shopping center to the south of the subject property. Mr. Hintz also responded that any plan to have a shopping center on CH property would require a conditional use or a zone change. An amended motion was made by Mr. Grimes and the motion was changed to a General Commercial Zone (CG) with a conditional use allowing for full service vehicle repair with no conditions stipulated. Sebastian Guerrero seconded that motion which passed unanimously 6-0.

AN ORDINANCE AMENDING CHAPTER 12, EXHIBIT “A” OF THE CODE OF ORDINANCES, CITY OF SAN ANGELO, TEXAS, WHICH SAID EXHIBIT “A” OF CHAPTER 12 ADOPTS ZONING REGULATIONS, USE DISTRICTS AND A ZONING MAP, IN ACCORDANCE WITH A COMPREHENSIVE PLAN, BY CHANGING THE ZONING AND CLASSIFICATION OF THE FOLLOWING PROPERTY, TO WIT: 2687 & 2695 Armstrong Street, approximately 400 feet south from the intersection of Armstrong Street and East 28th Street. More specifically occupying the Lewis Subdivision, Block 1, Lots 3 & 4 in northern 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 12-04: Claudia Perez

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,


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: 2687 & 2695 Armstrong Street, approximately 400 feet south from the intersection of Armstrong Street and East 28th Street. More specifically occupying the Lewis Subdivision, Block 1, Lots 3

& 4 in northern San Angelo shall henceforth be permanently zoned as follows: General Commercial (CG) 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 May, 2012 and finally PASSED, APPROVED AND ADOPTED on this the 15th day of May, 2012.


by:____________________________________

Alvin New, Mayor

ATTEST:

by:________________________________ 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


To: City Council members

From: Kari LeBoeuf, Planner

Subject: PD 12-03, a request for a zone change from a combination of Light

Manufacturing (ML) and General Commercial (CG) to Planned Development (PD) District to allow for the expansion of the Howard College Campus.

Location: 3501 North US Highway 67 encompassing the area known as the

Howard College, more specifically 2 tracts being 33.802 acres out of the J. Pointevent Survey 1113, Abstract 4873, and Paulann Park Addition, Section 3, Tract H, being 0.76 acre, and Paulann Park Addition, Section 3, Tract G, being the northwestern 0.145 acre, in northeast San Angelo.

Purpose: To allow for the expansion of the Howard College campus and

associated accessory uses.

Contacts: LeAnne Byrd 325-481-8300

Kari LeBoeuf, Planner 325-657-4210


(1) recommend approving the proposed planned development as presented; or

(2) recommend modifying the application to another zoning district believed to be

more appropriate; or

(3) recommend modifying the proposed planned development with changes believed to be more appropriate; or

(4) recommend denying the proposed planned development.

Recommendation: Planning Commission, by a unanimous 6-0 vote, and Planning staff recommends approving the proposed zone change to a Planned Development (PD). History and Background:

General Information

Existing Zoning: a combination of Light Manufacturing (ML) and

General Commercial (CG) Existing Land Use: Howard College/West Texas Training Center and

vacant land Surrounding Zoning/Land Use: North: ML, CH Wall & Stewart Trucking, AEP Substation West: RM-1, PD Residences, Mobile Homes South: RS-1, RM-1,CG Residences, County Facility, Vacant Land East: ML Highway 67

Thoroughfares/Streets: Highway 67 is a freeway designed to carry heavy

traffic at high speeds.

McGill Blvd is classified as a “collector” street which is designed to carry moderate traffic at moderate speeds.

Voight Blvd is classified as a “local” street which is

designed to carry light neighborhood traffic at lower speeds.

Smith Blvd is as yet unimproved in this area. The

Thoroughfare Plan for futures road improvements classifies Smith Blvd as a “collector” street. When it is completed it will carry moderate traffic at moderate speeds.

Zoning History: This property for the proposed campus was

annexed into the city and zoned in separate phases.

The property north of McGill Blvd between Voight Blvd and Smith Blvd was annexed into the city in 1984 and was temporarily zoned Single-Family Residential. In February 1985, case ZC1499 rezoned the lot Heavy Commercial. Then, in March 1985 case ZC1504 rezoned it again to

General Commercial and it has been zoned that way ever since. The property north of McGill Blvd between Smith Blvd and Hwy 67 that is home to the current Howard College/WTTC building was annexed into the city in December 1997 and was zoned Light Manufacturing (case ZC97-44). It has remained that way ever since.

Applicable Regulations: Zoning Ordinance Section 306.A.1. “The purposes of the Planned Development District

include…allow diversification of uses, structures, and open spaces and to promote flexibility of design in a manner compatible with existing and allowed uses of land on adjacent properties.”

Section 306.A.4. “The purposes of the Planned Development District

include…promote the efficient use of land to facilitate a more economic arrangement of buildings, uses of land and utilities.”

Section 306.A.5. “The purposes of the Planned Development District

include… promote the development of vacant property within the presently developed urban area.”

Section 306.B.1. Allowed uses include “Any use or combination of

uses otherwise authorized by these zoning regulations…if such use or uses is consistent with, and meets the standards for, the concept plan and PD District approved by the City Council. Allowable uses shall be listed in a use schedule in the specific ordinance establishing each PD District.”

Section 306.B.2. “It is intended that PD Districts conform as closely as

possible to established zoning and subdivision regulations while still allowing maximum flexibility of design to make planned developments as desirable as possible.”

Section 306.B.3. “Conditions specified for the development of a PD

District shall be construed as conditions precedent to the granting of a Certificate of Occupancy by the Building Official and compliance as required by the City of San Angelo.”

Section 505.A.1. “If a Planned Development District ordinance does

not establish specific guidelines for land uses, landscaping, facade treatment, screening, setbacks, signage, parking, etc., then the minimum standards of the most similar district shall apply, based on an interpretation by the Planning Director.”

Vision Plan Map: Campus/Institutional and Commercial Comp Plan Excerpts: Comprehensive Plan 2009 Update Discovery, The Place, Institutional Campuses “institutions in cities the size of San Angelo are

typically the sole identity driver for the districts and neighborhoods where they are located. As such, the area immediately in and around the anchor assumes that identity as their theme.”

Discovery, The Place, Institutional Campuses “institutions are largely ignoring the community

around them and effectively operating as islands. Significant opportunities exist to reach out and create districts with complementary and auxiliary uses that lend themselves to more attractive, pedestrian-friendly, walkable environments.”

Vision Plan, Vision Plan Summary,

Campus/Institutional, College/University Campus, Goal 1: Purpose: “To improve the standing of community centers and public facilities as pillars of their local neighborhoods and central features of the community as a whole.”

Vision Plan, Vision Plan Summary, Campus/Institutional, College/University Campus, Goal 1: “Increase the value of these facilities to their respective neighborhoods through public investment in street improvements, sidewalk construction, and similar infrastructure.”

Vision Plan, Vision Plan Summary, Campus/Institutional, College/University Campus, Goal 3: Purpose: “To better utilize existing parcels and provide increased services and amenities as growth occurs.” Vision Plan, Vision Plan Summary, Campus/Institutional, College/University Campus, Goal 3: “create and encourage public-private partnerships to drive appropriate development types.”

Vision Plan, Vision Plan Summary, Campus/Institutional, College/University Campus, Goal 3: “Increase communication and combine efforts to support redevelopment of [college]-purchased parcels to ensure compatibility with surrounding neighborhoods and the City’s plans for the area.” Visioning, Sub-District Concepts, Concept 3-Isolated Institutional Campuses:

“institutions, both academic and health care, have historically focused on, and master planned, entirely within their own boundaries…a select few cutting-edge institutions have re-oriented their consciousness, seeking out opportunities to be a “good neighbor,” to plan beyond their walls, and facilitate development of mixed-use environments within and adjacent to their boundaries.”

Visioning, Sub-District Concepts, Concept 3-

Isolated Institutional Campuses: “The City of San Angelo, together with…(key institutions), could plan…campus environments beyond the “institutional walls,” allowing for a seamless and essential transition to adjacent neighborhoods”

Special Information

Traffic Concerns: While there is likely to be an increase in traffic as the campus expands, this will be quite some time in coming. In the interim, Smith Blvd will be improved from Gordon Blvd to Paulann Blvd. The campus is surrounded by “collector” streets and a freeway, all of which are appropriate to handle traffic generated by a college campus.

Parking Requirements: Please see Section 8 of the draft ordinance Notification Required: Yes Notifications Sent: 29


Analysis:

In order to approve this request, the City Council members are first required to find that: 1. Compatible with Plans and Policies. Whether the proposed amendment is compatible








The staff recommendation is based upon the statements listed below.

Planning Commission and Planning staff are recommending approval of this Planned Development (PD) District for several reasons. This proposed PD is compatible with the plans and policies of the City of San Angelo, is consistent with the City’s Zoning Ordinance, and will be compatible with the surrounding residential area in that it provides a needed transition from major highway traffic to single- and two-family living. This proposed PD will also fit in well with the development patterns the city desires in this area as called for and illustrated in the Comprehensive Plan and the Vision Map. Section 306.A. of the Zoning Ordinance speaks to the several purposes of a Planned Development (PD) District, specifically stating that such districts should, “promote the efficient use of land to facilitate a more economic arrangement of buildings, uses of land, and utilities…promote the development of vacant property within the presently developed urban area…allow diversification of uses, structures, and open spaces and to promote flexibility of design in a manner compatible with existing and

allowed uses of land on adjacent properties.” This proposed PD will accomplish these purposes by providing consistent standards that offer the flexibility a campus needs to effectively and efficiently utilize its property, while ensuring that it is developed cohesively, thus creating a true sense of place. The campus will responsibly develop the large commercially zoned tract of vacant land nearest the residential neighborhood in a manner much more compatible than a large commercial development could be. It also provides known standards and a sense of security for the nearby residential development in knowing specifically what can occur on the property; alternatively, the ML zoning currently in place allows by right processing of building materials, metal fabrication, galvanizing and enameling, welding shops, heavy truck servicing, and paving contractors, among other things. Also, the CG zoning currently in place allows by right landscaping services, appliance repair, lube service facilities, vet clinics, and auto and boat dealers, in addition to other things. Creating a PD for the Howard College campus will ensure that standards are in place that will benefit not only Howard College but also the community as a whole. It significantly limits and dictates what activities can occur on the site. While it does specify material types for facades and signage, it does so in a way that allows changes and customization that will give enough flexibility to the college to accommodate branding changes, wayfinding plans, and the like. Zoning Ordinance section 306.B.1. states that allowed uses for a PD include, “Any use or combination of uses otherwise authorized by these zoning regulations…if such use or uses is consistent with, and meets the standards for, the concept plan and PD District approved by the City Council.” The Comprehensive Plan calls for facilities like Howard College to strive “to improve the standing of community centers and public facilities as pillars of their local neighborhoods and central features of the community as a whole.” One of the most prominent strategies outlined in the Comprehensive Plan to accomplish these goals is “Increase the value of these facilities to their respective neighborhoods through public investment in street improvements, sidewalk construction, and similar infrastructure.” Another very important strategy is to plan “campus environments beyond the “institutional walls,” which will, “Increase communication and combine efforts to support redevelopment of [college]-purchased parcels to ensure compatibility with surrounding neighborhoods and the City’s plans for the area” and “encourage public-private partnerships.” This proposed PD is an attempt to create a cohesive, distinctive, attractive campus environment that complements the adjacent residential area, while moving toward full utilization of the vacant commercial property that Howard College owns. The draft ordinance’s Section 5 lists several primary and accessory uses that Planning staff has determined are appropriate for a college campus near a residential neighborhood. The draft ordinance also includes standards for the building facades, signage, landscaping, parking and loading space, and other development standards that will transition well into the adjacent residential neighborhood and help to buffer that neighborhood from the highway as well as the heavier commercial and industrial types of uses to the north. This proposed PD will result in changed conditions that will benefit the community as Howard College provides quality educational experiences to not only the San Angelo

community but also the whole of Tom Green County. As Howard College expands so too do the educational opportunities for the community. The lots within the proposed PD boundaries currently have two different zoning classifications and, therefore, two different sets of regulations to follow which makes cohesive development of Howard College difficult. Additionally, the lot on which the current Howard facility is located is actually zoned Light Manufacturing (ML) which will prevent any expansion even on that one lot. A PD for the campus will benefit those who work at and attend Howard as well as those within the adjacent neighborhood as Howard College will provide an attractive buffer with many amenities. This proposed PD could also have a positive impact on the natural environment as extensive landscaping is proposed throughout the campus. It will also have a positive impact on the pedestrian environment as a walkable, easily navigable campus with landscaping and other pedestrian amenities will make for a pleasant pedestrian experience. For all of the reasons stated above, Planning Commission and Planning staff are recommending approval of the proposed Planned Development District for the Howard College Campus.

Proposed Conditions

Please see draft ordinance.


the City of San Angelo; excerpt from zoning map, highlighting subject property; aerial photo, highlighting subject property; draft ordinance;

Presentation: Kari LeBoeuf, Planner Reviewed by: AJ Fawver, Planning Manager (04/11/12)

City of San Angelo



From: Maryann R. Vasquez, Recreation Manager

Subject: Agenda Item for April 17, 2012 Council Meeting

Contact: Maryann R. Vasquez-325-657-4450


Discussion and possible action on authorizing the purchase of ball field netting at the Texas Bank Sports Complex

Summary: At the March 20, 2012 meeting of the City Council, it was requested that a means of addressing the issue of foul balls be provided.

Netting used for sports fields has been found which could alleviate much of this concern; however, foul balls are still an issue in any game and cannot be completely contained.

The sports complex could benefit from other improvements including:

- Picnic/shade structure near the playground, estimated cost of $75,000. This element was designed and included in the plans but was not constructed due to lack of funding.

- Restrooms/Concession at Quad 2 and/or Quad 4, estimated cost of $250,000 each. This was designed and included in the plans but was not constructed due to lack of funding.

History: N/A

Financial Impact: Covering the area behind home plate would cost approximately $10,000 per quad.

Quads in order of priority

Quad 3 $10,000 Quad 2 $10,000 Quad 4 $10,000 Quad 1 $ 5,000 _____________________

$35,000

There is currently no funding source available to cover this expense. Funding possibilities include general fund or half cent sales tax dedicated to sports facilities (future allocations).

Related Vision Item

(if applicable):

N/A


N/A

Attachments: N/A

Presentation: Power point

Publication: N/A


Carl White, Parks and Recreation Director x1521 (4/5/12)

Approved by Legal: N/A

City of San Angelo



From: Carl White, Parks & Recreation Director


Contact: Carl White, 234-1724, [email protected]


Consideration of approving the creation of a sculpture garden at Sunken Garden Park.

Summary:

Local businessman and artist, Mr. Richard Salmon, has joined together with Mr. Howard Taylor and the San Angelo Museum of Fine Arts (SAMFA) to propose the creation of an outdoor sculpture garden.

Their proposal is to add about seven to nine additional spots at Sunken Garden Park, to supplement the three spots the Public Art Commission created in 2008, for a total of ten or twelve spots where artists could temporarily place their sculptures.

Mr. Salmon would cover the expense for the placement of the additional slab stones on which the art would sit.

Artists would be selected through competition by a judging panel in the summer, headed by SAMFA. The art would be placed in October and remain until the following year’s selections. SAMFA would coordinate the placement and removal of the art. Prior to placing the art at Sunken Garden Park, the Public Art Commission would review the works.

The location at Sunken Garden Park was selected due to its visibility, proximity to the Visitors’ Center and central location.

The Public Art Commission considered this item at its meeting on April 4, 2012 and unanimously approved the concept.

History: There is no history on this item. The Public Art Commission initiated an “Art Spot” program in 2008 in that they created three outdoor sculpture pedestals on which to place temporary outdoor art.

Financial Impact: There is no cost to the City for this program. There would be some adjustment to mowing patterns and the existing sprinkler system might need to be modified to prevent spraying on the art work.

Related Vision Item

(if applicable):

N/A


Staff recommends approval.

Attachments: Proposal from Mr. Richard Salmon and map showing location for proposed sculpture garden.

Presentation: Verbal and PowerPoint

Publication: N/A


Rick Weise, Assistant City Manager, April 19, 2012.

Approved by Legal: N/A

Sculpture Garden Proposal (from Mr. Salmon)

RICHARD SALMON proposes to establish the Salmon Sculpture Competition in conjunction with the San Angelo Museum of Fine Arts. Entries would be solicited nationwide to compete for the privilege of displaying their work for sale for 10 months in the Sunken Gardens Park. Commissions from the sales would go to help fund future competitions and to the SAMFA. The competition would be held annually on the last weekend of October. A juror panel, selected by Howard Taylor, would choose the 8 to 10 pieces for display and a committee would be formed to oversee the competition. The competition would be privately funded and administered by the committee and the SAMFA. Prizes would be awarded to artists for Best in Show along with other awards. Artists would be required to meet standards for outdoor art display, insurance, and installation and removal of art. The primary goal of the competition is to create interest and enjoyment of outdoor sculpture and to enhance the beauty of our existing parks with a changing sculpture landscape. A secondary goal would be the establishment of a permanent sculpture garden to bring art to our city for the pleasure of our citizens and our visitors. Combining the competition, the vision of Howard Taylor and the reputation of the Museum could result in a major art event and art destination for our community for years to come.

City of San Angelo



From: Shawn Lewis, Director of Community & Economic Development


Contact: Shawn Lewis 657-4210


Public hearing, consideration and possible action regarding a recommendation by the City of San Angelo Development Corporation Board of Directors to allocate $455,000.00 of half-cent sales tax funds for the construction of a 25 foot wide extension of Smith Blvd. to Paul Ann Blvd. for the purpose of facilitating access to the commercial property in the Chaparral Industrial Park, to include authorizing the COSADC Board to issue a Request for Bid for the project and to award a contract that represents the best value for the project, authorizing the COSADC Board President to negotiate a contract with the selected vendor, and to direct the publication of a 60-day notice of the proposed project for public comment period.

Summary: COSADC has considered several requests to construct an extension of Smith Blvd as an alternate to Highway 67, the latest being from Harold Mueller and Earl Weber who are asking that the road be paved to facilitate the development of the Chaparral Commercial Center and other adjacent properties. This area was recently annexed by the City of San Angelo. As a result, COSADC is recommending City Council consider extending a half width street (26’) to the future extension of Paul Ann Blvd, thereby serving property currently zoned ML (light manufacturing) at an estimated cost of $455,000.00..

History: At its meeting of January 11, 2012 COSADC approved spending up to $378,000 to fund 60% of the extension of Smith Blvd (approx 2,700 linear feet) and directed the College to seek funding from other sources to complete the remainder. The City and TXDOT have both turned down requests from the College to fund this project. On March 7, 2012, COSADC approved providing additional funding. The City Attorney has researched the issue and found that expenditures linked to institutions of higher education that provide training for primary jobs is legal; however, the allowed expenditures appear to be limited to construction/expansion of facilities where the actual training takes place (i.e. a welding lab, classrooms, etc.). On April 9, 2012, we received a request from the owners of the Chaparral Commercial Center for the same extension of Smith Blvd. for the purpose of facilitating further development of the industrial area. The City Attorney concurs that this purpose is accordance with State laws regarding development

corporation expenditures on infrastructure. Specifically, the State allows extension of roadway/utilities into a industrial or manufacturing areas (such as Chaparral Industrial Park located just northeast of the Howard College campus). This extension will be for the purpose of opening land to development that creates primary jobs. Harold Mueller, owner of the Chaparral Center, has previously requested this extension. His request has been denied as the location was previously outside the City limits; with the recent annexation, the property is now inside the City limits. Mr. Mueller informed staff that a Canadian plastic pipe manufacturing company who toured the subject property subsequently located elsewhere “because of the inadequacy of roads and infrastructure” to the Chaparral Center property. It should be noted that Mr. Mueller has been successfully recruiting companies to Chaparral, and San Angelo, without City assistance. LeAnne Byrd at Howard College believes a 25 foot roadway will also serve their purposes, and has indicated the College intends to submit a formal request to the City to add road construction costs into the CIP project budget for the Fire Department’s safety training facility planned on campus. We understand, however, that this project will now be located other City-owned property due to other concerns. Clinton Bailey, the City Engineer prepared two new cost estimates, 1.) extension of Smith Blvd. to Tractor Trail, and 2.) extension of Smith to the proposed extension of Paul Ann Blvd. The attached map showing areas proposed for roadway extension. The COSADC Board approved and is recommending to City Council approval of the second option.

Financial Impact: $455,000.00 of half-cent sales tax revenues

Related Vision Item

(if applicable):


Staff supports approval of COSADC recommendation to fund the project as presented above.

Attachments: Letter from Chaparral Commercial Center owners dated April 9, 2012 Aerial photo of proposed project

Presentation: Shawn Lewis, Director of Community & Economic Development

Publication: This project will require a 60-day notice, per state law


Shawn Lewis

Approved by Legal: Legal Opinion previously submitted

CITY OF SAN ANGELO

OFFICE OF THE CITY ATTORNEY

MEMORANDUM

______________________________________________________________________________

TO: Shawn Lewis, Director of Community Planning and Development

FROM: Lysia H. Bowling, City Attorney

DATE: March 30, 2012

RE: Qualification of Proposed Roadway Construction as a 4B Sales Tax Project

______________________________________________________________________________

This document is excepted from required public disclosure as attorney-client privileged information.

You ask whether the construction of a public roadway that facilitates access to a college campus

which incorporates a job training facility can be financed with 4B Sales Tax revenues as an

authorized project under Section 501.101 of the Development Corporation Act. Section 501.101

provides that a Section 4B corporation may finance projects which encompass improvements for

creation or retention of primary jobs found by the board of directors to be required or suitable for

“primary job training facilities for use by institutions of higher education.”

In 2007, COSADC funded the college as an authorized project under the Section 2(11)A of

Development Corporation Act (“Act”), now codified as Section 501.101 for building improvements

for “primary job training facilities for use by institutions of higher education.” The funding was

used to complete construction of labs, a lecture hall and classrooms in a job training facility on the

college campus for “training and educating individuals in primary job positions in the field of

Information Management, Networking, Computer Support Technology, Web Design &

Management and Criminal Justice Certification.”

The basis for COSADC Board’s finding that the funding qualified under the Act was the

requirement that the college certify that the improvements resulted in enrollment of a threshold

number of students in qualified primary job categories.

With regard to present funding proposal, no factual basis has been demonstrated to support a

finding by the Board that the roadway improvements would be used in furtherance of the job

training facility and thus consistent with the purposes of the Act.

The expenditure may qualify as a Section 501.103 project if the Board has a factual basis to make a

finding that the contemplated roadway will service undeveloped commercially zoned property

necessary to promote development of new or expanded business enterprises.

May 1, 2012 CIty Council Agenda Packet

Documents

Transcript of May 1, 2012 CIty Council Agenda Packet