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Home My WebLink About03-25-19 TC Agenda PacketThe Regular Meeting of the Town of Westlake Town Council will begin immediately following the conclusion of the Town Council Work Session but not prior to the posted start time. Mission Statement Westlake is a unique community blending preservation of our natural environment and viewscapes, while serving our residents and businesses with superior municipal and academic services that are accessible, efficient, cost-effective, and transparent. Westlake, Texas – “One-of-a-kind community; natural oasis – providing an exceptional level of service.” Page 1 of 5 Vision Statement An oasis of natural beauty that maintains our open spaces in balance with distinctive development, trails, and quality of life amenities amidst an ever expanding urban landscape. TOWN COUNCIL MEETING AGENDA March 25, 2019 1500 Solana Boulevard Building 7, Suite 7100 1st Floor, Council Chamber Westlake, TX 76262 Work Session: 5:00 p.m. Regular Session: 6:30 p.m. Page 2 of 5 Work Session 1.CALL TO ORDER 2.PLEDGE OF ALLEGIANCE 3.REVIEW OF CONSENT AGENDA ITEMS FOR THE TOWN COUNCIL REGULAR MEETING AGENDA. 4.REPORTS Reports are prepared for informational purposes and will be accepted as presented. (There will no presentations associated with the report items) There will be no separate discussion unless a Council Member requests that report be removed and considered separately. a.Annual report from the Keller Police Department relative to police services and the racial profiling report for the Town of Westlake. 5.DISCUSSION ITEMS a.Presentation and discussion regarding the annual Comprehensive Annual Financial Report (CAFR) presented by Weaver and Tidwell, L.L.P., for the fiscal year ended September 30, 2018. b.Presentation and discussion providing an update regarding the status of the work to date of the Westlake Public Art Competition Committee and adding another member to the Committee. c.Presentation and discussion regarding Regular Agenda Item 5 - Proposed Rezoning from R5-Country Residential. d.Standing Item: Presentation and discussion of development projects per Staff report February 2019 including an Entrada report from the Developer and projects in Planned Development PD 3-5. 6.EXECUTIVE SESSION The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a.Section 551.071. Consultation with Attorney (1) when the governmental body seeks the advice of its attorney about: (A) pending or contemplated litigation: Builder Recovery Services, LLC vs. Town of Westlake b.Section 551.072 to deliberate the purchase, exchange, lease, or value of real property regarding the conservation area at The Knolls at Solana c.Section 551.071 (2) Consultation 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: Trophy Club Municipal District No. 1 d.Section 551.087 Deliberation Regarding Economic Development Negotiations (1) to discuss or deliberate regarding commercial or financial information that Page 3 of 5 the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1) for the following: - BRE Solana - Waterside Land Company LLC 7. RECONVENE MEETING 8. COUNCIL RECAP / STAFF DIRECTION 9. ADJOURNMENT Regular Session 1. CALL TO ORDER 2. ITEMS OF COMMUNITY INTEREST: Mayor and Council Reports on Items of Community Interest pursuant to Texas Government Code Section 551.0415 the Town Council may report on the following items: (1) expression of thanks, congratulations or condolences; (2) information about holiday schedules; (3) recognition of individuals; (4) reminders about upcoming Town Council events; (5) information about community events; and (6) announcements involving imminent threat to public health and safety. 3. CITIZEN COMMENTS: This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council cannot by law take action nor have any discussion or deliberations on any presentation made to the Council at this time concerning an item not listed on the agenda. The Council will receive the information, ask staff to review the matter, or an item may be noticed on a future agenda for deliberation or action. 4. CONSENT AGENDA: All items listed below are considered routine by the Town Council and will be enacted with one motion. There will be no separate discussion of items unless a Council Member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes from the meeting on February 25, 2018. b. Consider approval of Resolution 19-12, Appointing an additional member to the Public Art Competition Advisory Committee. c. Consider approval of Resolution 19-13, Amending the authorized signers on the Town of Westlake Trust Account with First Financial Bank d. Consider approval of Resolution 19-14, Accepting the annual Comprehensive Annual Financial Report (CAFR) presented by Weaver and Tidwell, L.L.P., for the fiscal year ended September 30, 2018. Page 4 of 5 e. Consider approval of Resolution 19-15, Authorizing the Town Manager to enter into a purchase agreement with Rush Bus Center to purchase a 71-passenger activity bus and authorize the Town Manager to make funding changes not to exceed $25,000 on this project. 5. CONTINUE THE PUBLIC HEARING AND CONSIDERATION OF ORDINANCE 881, APPROVING A ZONING CHANGE REQUEST FROM R-5 COUNTRY RESIDENTIAL TO PLANNED DEVELOPMENT DISTRICT NUMBER 7 (PD7) FOR AN APPROXIMATELY 37.8-ACRE PORTION OF LAND GENERALLY LOCATED EAST OF PEARSON LANE AND SOUTH OF ASPEN LANE, TO INCLUDE PRIMARILY SINGLE FAMILY RESIDENTIAL USES, INCLUDING A REQUEST FOR APPROVAL OF A CONCEPT PLAN AND DEVELOPMENT PLAN, AND A SPECIFIC USE PERMIT FOR PRIVATE STREETS. 6. DISCUSSION AND CONSIDERATION OF ORDINANCE 877, AMENDING CHAPTER 46, ARTICLE VI, TOBACCO PRODUCTS, SMOKING AND E-CIGARETTES, PROHIBITING SMOKING AND VAPING WITHIN THE TOWN OF WESTLAKE EXCEPT IN PRIVATE CLUBS. 7. EXECUTIVE SESSION The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: e. Section 551.071. Consultation with Attorney (1) when the governmental body seeks the advice of its attorney about: (A) pending or contemplated litigation: Builder Recovery Services, LLC vs. Town of Westlake f. Section 551.072 to deliberate the purchase, exchange, lease, or value of real property regarding the conservation area at The Knolls at Solana g. Section 551.071 (2) Consultation 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: Trophy Club Municipal District No. 1 h. Section 551.087 Deliberation Regarding Economic Development Negotiations (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1) for the following: - BRE Solana - Waterside Land Company LLC 8. RECONVENE MEETING 9. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS. Page 5 of 5 10.FUTURE AGENDA ITEMS: Any Council member may request at a workshop and / or Council meeting, under “Future Agenda Item Requests”, an agenda item for a future Council meeting. The Council Member making the request will contact the Town Manager with the requested item and the Town Manager will list it on the agenda. At the meeting, the requesting Council Member will explain the item, the need for Council discussion of the item, the item’s relationship to the Council’s strategic priorities, and the amount of estimated staff time necessary to prepare for Council discussion. If the requesting Council Member receives a second, the Town Manager will place the item on the Council agenda calendar allowing for adequate time for staff preparation on the agenda item. 11.ADJOURNMENT ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE. CERTIFICATION I certify that the above notice was posted at the Town Hall of the Town of Westlake, 1500 Solana Blvd., Building 7, Suite 7100, Westlake, TX 76262, March 21, 2019, by 5:00 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code. _____________________________________ Tanya Morris, Assistant to the Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made to assist you. Town Council Item # 2 – Pledge of Allegiance Texas Pledge: "Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God, one and indivisible." REVIEW OF CONSENT AGENDA ITEMS FOR THE TOWN COUNCIL REGULAR MEETING AGENDA. a. Consider approval of the minutes from the meeting on February 25, 2018. b. Consider approval of Resolution 19-12, Appointing an additional member to the Public Art Competition Advisory Committee. c. Consider approval of Resolution 19-13, Amending the authorized signers on the Town of Westlake Trust Account with First Financial Bank d. Consider approval of Resolution 19-14, Accepting the annual Comprehensive Annual Financial Report (CAFR) presented by Weaver and Tidwell, L.L.P., for the fiscal year ended September 30, 2018. e. Consider approval of Resolution 19-15, Authorizing the Town Manager to enter into a purchase agreement with Rush Bus Center to purchase a 71-passenger activity bus and authorize the Town Manager to make funding changes not to exceed $25,000 on this project. Town Council Item # 3 – Review of Consent Items REPORTS Reports are prepared for informational purposes and will be accepted as presented. (there will no presentations associated with the report items) There will be no separate discussion unless a Council Member requests that report be removed and considered separately. a. Annual report from the Keller Police Department relative to police services and the racial profiling report for the Town of Westlake Town Council Item # 4 – Reports Page 1 of 2 Westlake Town Council TYPE OF ACTION Workshop - Report Westlake Town Council Meeting Monday, March 25, 2019 TOPIC: Annual report from the Keller Police Department relative to police services and the racial profiling report for the Town of Westlake. STAFF CONTACT: Amanda DeGan, Town Manager Strategic Alignment Vision, Value, Mission Perspective Strategic Theme & Results Outcome Objective Transparent / Integrity- driven Government Municipal & Academic Operations Exemplary Service & Governance - We set the standard by delivering unparalleled municipal and educational services at the lowest cost. Increase Transparency, Accessibility & Communications Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: January 1, 2019 Completion Date: December 31, 2018 Funding Amount: N/A Status - Not Funded Source - N/A EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) Each year, the police department provides the Town Council with a report regarding the enforcement activities and levels of service for the community as well as the required racial profiling report. The racial profiling report has been updated to include the requirements of the Sandra Bland Act that was signed into law in 2017. The report now includes additional data, a more in depth analysis of the data, and new racial and ethnic designations. The submittal has been compiled by Chief Mike Wilson and contains the yearly information as well as a chart outlining the historical data for our contractual period with the agency. Page 2 of 2 RECOMMENDATION Review of the information contained within the reports. ATTACHMENTS Racial Profiling Report Annual Service Report P O L I C E D E P A R T M E N T 330 RUFE SNOW DR.  P.O. BOX 770  KELLER, TEXAS 76244  (817)743--4500 Fax (817)743-4594 Web: http://www.kellerpd.com  info@kellerpd.com February 8, 2018 Mayor Laura Wheat and members of the Westlake Town Council 1500 Solana Blvd. Bldg. 7, Suite #7200 Westlake, TX. 76262 Dear Mayor Wheat and Westlake Town Council, I am pleased to provide the Westlake Service Report for the calendar year ending 2018. As you view the data you can see that our officers were active delivering service to your community in 2018. We stopped over 8,300 vehicles, arrested 148 people for criminal violations, issued 5,134 traffic citations, and removed 50 intoxicated drivers from the roadways in Westlake. We investigated 333 motor vehicle collisions on the roadways within the Town of Westlake and regional animal services handled 81 calls for service. During our routine patrols we checked businesses and residences on the vacation watch list over 6,600 times. The Regional Communications Center (NETCOM), which Westlake is a member by virtue of the Police Services Agreement dispatched your Fire/EMS Department 493 times. The 31 Part 1 Crimes reported in 2018 was one more than our stated goal of no more than 30 for the year. A large driver for Part 1 Crimes in the Town of Westlake are Larceny/Theft. Throughout 2018, officers conducted building checks and foot patrols around the construction sites, conducted foot patrols at Westlake Academy and actively utilized the substation to complete reports and return calls. Keller Police Department’s presence at Westlake Acad emy increased 14% from 2017. Besides the statistical information in this report we continued to spend many hours working to enhance relationships with Homeowners Associations, Fidelity Investments, Deloitte University, and Westlake Academy. When you total the number of calls for service (18,078) and divide it by the price of the police services agreement ($944,518) it costs the Town of Westlake $52.25 per call for service. This continues to be a very efficient cost when you compare it to the $118.85 cost per call for service in Keller. As we close out 2018, we look back on a year that challenged the organization as we saw team members retire and welcomed many new officers to the department. During the period of transition, we witnessed first-hand the resiliency of our team members as everyone worked tirelessly to fill the gaps as they continued to provide a high level of police service to the community. As in previous years, our prevailing crime challenge was larceny/theft from construction sites and unsecured vehicles. This will continue to be our focus in 2019. In the coming months, we will be launching our new crime analysis system with predictive capabilities in hope to better focus our patrols to prevent and reduce these crimes. Even though we saw a decrease in investigated traffic collisions in 2018, we believe more can be done to reduce collisions in the Town of Westlake. In 2019, we will continue to be active with our Directed Traffic Enforcement Details focusing on high crash locations and the contributing driving behaviors. Our partnership has truly been a win -win for both communities. Keller receives additional patrol coverage in the north section of their city and an administrative charge for the program while the Town of Westlake receives the services of a 90.5 person nationally and state accredited law enforcement agency and public safety communication center staffed and equipped to handle all types of incidents for a fraction of the cost. We remain committed to delivering the highest quality of police services to the Town of Westlake. Our partnership continues to work extremely well for both cities and has been a model for the effectiveness of municipal partnerships. P O L I C E D E P A R T M E N T 330 RUFE SNOW DR.  P.O. BOX 770  KELLER, TEXAS 76244  (817)743--4500 Fax (817)743-4594 Web: http://www.kellerpd.com  info@kellerpd.com As always, I am here for your questions and concerns. Michael Wilson Chief of Police cc: Amanda DeGan, W estlake Town Manager 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Motor Vehicle Stops 9,249 9,763 9,829 12,221 9,993 9,579 10,432 11,109 10,718 8,339 Investigative Motor Vehicle Stops 1,110 1,320 1,456 1,483 1,331 1,348 1,248 1,265 1,374 930 Miscellaneous Service Calls 609 792 793 741 1,066 1,088 992 1,016 1,136 1,496 Traffic Accident Investigations 266 273 348 343 322 341 398 461 386 333 Building Checks 5,602 4,587 5,092 6,595 6,916 6,927 6,506 6,061 7,453 6,621 Alarm Responses 73 105 133 235 273 266 230 241 224 277 Animal Control Calls for Service 83 82 91 85 114 99 60 74 78 81 Citizen Initiated Calls for Service 1,984 1,965 2,748 2,959 3,125 2,528 2,693 2,567 2,474 2,458 Total Calls for Service 16,992 16,902 17,742 21,703 20,002 19,944 19,866 20,227 18,894 18,078 Part 1 Crimes 23 19 30 39 9 15 20 13 22 31 Traffic Violations on Citations 6,464 8,364 6,409 6,464 7,527 7,164 7,524 7,583 6,777 5,134 Westlake Prisoners Booked-In 238 252 252 248 262 254 211 202 194 148 DWI Arrests 24 32 80 50 69 55 62 66 70 50 Case Reports 71 65 140 108 116 113 118 122 133 134 Fire/EMS Calls Dispatched 315 316 459 445 529 495 463 493 503 493 2018 Keller Police Department ANNUAL REPORT February 21, 2019 Mayor Laura Wheat and members of the Westlake Town Council 1500 Solana Blvd. Bldg. 7, Suite #7200 Westlake, Texas 76262 Dear Distinguished Members of the Town Council, The Texas Legislature, with the intent of addressing the issue of racial profiling in policing, enacted in 2001, the Texas Racial Profiling Law. During the past year, the Keller Police Department, in accordance with the law, has collected and reported traffic and motor vehicle- related contact data for the purpose of identifying and addressing (if necessary) areas of concern regarding racial profiling practices. In the 2009 Texas legislative session, the Racial Profiling Law was modified and additional requirements were implemented. Moreover, in 2017, the Sandra Bland Act was passed and signed into law (along with HB 3051 which introduced new racial and ethnic designations). The Sandra Bland Law requires that law enforcement agencies in the state collect additional data and provide a more detailed analysis. All of these requirements have been met by the Keller Police Department and are included in this report. This particular report contains three sections with information on motor vehicle- related contact data. In addition, when appropriate, documentation is also a component of this report, aiming at demonstrating the manner in which the Keller Police Department has complied with the Texas Racial Profiling Law. In section 1, you will find the table of contents in addition to the Texas Senate Bill (SB1074); which later became the Texas Racial Profiling Law. Further, you will find the Texas HB 3389, which, in 2009, introduced new requirements relevant to racial profiling as well as the Sandra Bland Act. Also, in this section, a list of requirements relevant to the Racial Profiling Law as established by TCOLE (Texas Commission on Law Enforcement) is included. In addition, you will find, in sections 2 and 3 documentation which demonstrates compliance by the Keller Police Department relevant to the requirements as established in the Texas Racial Profiling Law. That is, you will find documents relevant to the implementation of an institutional policy banning racial profiling, the incorporation of a racial profiling complaint process and the training administered to all law enforcement personnel. The last section of this report includes statistical data relevant to contacts, made during the course of motor vehicle stops and in accordance with the law, between 1/1/18 and 12/31/18. In addition, this section contains the TCOLE Tier 2 form, which is required to be submitted to this particular organization by March 1st of each year. The data in this report has been analyzed and compared to data derived from the U.S. Census Bureau’s Fair Roads Standard. The final analysis and recommendations are also included in this report. The findings in this report serve as evidence of the Keller Police Department’s commitment to comply with the Texas Racial Profiling Law. Sincerely, Alex del Carmen, Ph.D. Del Carmen Consulting, LLC dcconsulting@sbcglobal.net www.texasracialprofiling.com Copyright  2019 Del Carmen Consulting, LLC Table of Contents (I) Introduction a) Letter to Council Members b) Table of Contents c) TCOLE Guidelines d) The Texas Law on Racial Profiling (S.B. 1074) e) Modifications to the Original Law (H.B. 3389) f) Designations for Racial and Ethnic Categories (H.B. 3051) g) The Sandra Bland Act (S.B. 1849) (II) Responding to the Texas Racial Profiling Law a) Institutional Policy on Racial Profiling b) Public Education on Filing Compliments and Complaints— Addressing Allegations of Racial Profiling Practices c) Racial Profiling Training of Law Enforcement Personnel d) Report on Compliments and Racial Profiling Complaints Filed on Officers (includes outcome of investigation) e) Tier 2 Tables, Known Ethnicity and Race and TCOLE Form f) Comprehensive Analysis and Interpretation of Data (III) Summary a) Checklist b) Contact Information TCOLE GUIDELINES Guidelines for Compiling and Reporting Data under Senate Bill 1074 Background Senate Bill 1074 of the 77th Legislature established requirements in the Texas Code of Criminal Procedure (TCCP) for law enforcement agencies. The Commission developed this document to assist agencies in complying with the statutory requirements. The guidelines are written in the form of standards using a style developed from accreditation organizations including the Commission on Accreditation for Law Enforcement Agencies (CALEA). The standards provide a description of what must be accomplished by an agency but allows wide latitude in determining how the agency will achieve compliance with each applicable standard. Each standard is composed of two parts: the standard statement and the commentary. The standard statement is a declarative sentence that places a clear-cut requirement, or multiple requirements, on an agency. The commentary supports the standard statement but is not binding. The commentary can serve as a prompt, as guidance to clarify the intent of the standard, or as an example of one possible way to comply with the standard. Standard 1 Each law enforcement agency has a detailed written directive that:  clearly defines acts that constitute racial profiling;  strictly prohibits peace officers employed by the agency from engaging in racial profiling;  implements a process by which an individual may file a complaint with the agency if the individual believes a peace officer employed by the agency has engaged in racial profiling with respect to the individual filing the complaint;  provides for public education relating to the complaint process;  requires appropriate corrective action to be taken against a peace officer employed by the agency who, after investigation, is shown to have engaged in racial profiling in violation of the agency’s written racial profiling policy; and  requires the collection of certain types of data for subsequent reporting. Commentary Article 2.131 of the TCCP prohibits officer s from engaging in racial profiling, and article 2.132 of the TCCP now requires a written policy that contains the elements listed in this standard. The article also specifically defines a law enforcement agency as it applies to this statute as an “ agency of the state, or of a county, municipality, or other political subdivision of the state, that employs peace officers who make traffic stops in the routine performance of the officers’ official duties.” The article further defines race or ethnicity as being of “a particular descent, including Caucasian, African, Hispanic, Asian, or Native American.” The statute does not limit the required policies to just these ethnic groups. This written policy is to be adopted and implemented no later than January 1, 2002. Standard 2 Each peace officer who stops a motor vehicle for an alleged violation of a law or ordinance regulating traffic, or who stops a pedestrian for any suspected offense reports to the employing law enforcement agency information relating to the stop, to include:  a physical description of each person detained, including gender and the person’s race or ethnicity, as stated by the person, or, if the person does not state a race or ethnicity, as determined by the officer’s best judgment;  the traffic law or ordinance alleged to have been violated or the suspected offense;  whether the officer conducted a search as a result of the stop and, if so, whether the person stopped consented to the search;  whether any contraband was discovered in the course of the search, and the type of contraband discovered;  whether probable cause to search existed, and the facts supporting the existence of that probable cause;  whether the officer made an arrest as a result of the stop or the search, including a statement of the offense charged;  the street address or approximate location of the stop; and  whether the officer issued a warning or citation as a result of the stop, including a description of the warning or a statement of the violation charged. Commentary The information required by 2.133 TCCP is used to complete the agency reporting requirements found in Article 2.134. A peace officer and an agency may be exempted from this requirement under Article 2.135 TCCP Exemption for Agencies Using Video and Audio Equipment. An agency may be exempt from this reporting requirement by applying for the funds from the Department of Public Safety for video and audio equipment and the State does not supply those funds. Section 2.135 (a)(2) states, “the governing body of the county or municipality served by the law enforcement agency, in conjunction with the law enforcement agency, certifies to the Department of Public Safety, not later than the date specified by rule by the department, that the law enforcement agency needs fu nds or video and audio equipment for the purpose of installing video and audio equipment as described by Subsection (a) (1) (A) and the agency does not receive from the state funds for video and audio equipment sufficient, as determined by the department, for the agency to accomplish that purpose.” Standard 3 The agency compiles the information collected under 2.132 and 2.133 and analyzes the information identified in 2.133. Commentary Senate Bill 1074 from the 77th Session of the Texas Legislature created requirements for law enforcement agencies to gather specific information and to report it to each county or municipality served. New sections of law were added to the Code of Criminal Procedure regarding the reporting of traffic and pedestrian stops. Detained is defined as when a person stopped is not free to leave. Article 2.134 TCCP requires the agency to compile and provide and analysis of the information collected by peace officer employed by the agency. T he report is provided to the governing body of the municipality or county no later than March 1 of each year and covers the previous calendar year. There is data collection and reporting required based on Article 2.132 CCP (tier one) and Article 2.133 CCP (tier two). The minimum requirements for “tier one” data for traffic stops in which a citation results are: 1) the race or ethnicity of individual detained (race and ethnicity as defined by the bill means of “a particular descent, including Caucasian, African, Hispanic, Asian, or Native American”); 2) whether a search was conducted, and if there was a search, whether it was a consent search or a probable cause search; and 3) whether there was a custody arrest. The minimum requirements for reporting on “tier two” reports include traffic and pedestrian stops. Tier two data include: 1) the detained person’s gender and race or ethnicity; 2) the type of law violation suspected, e.g., hazardous traffic, non-hazardous traffic, or other criminal investigation (the Texas Department of Public Safety publishes a categorization of traffic offenses into hazardous or non-hazardous); 3) whether a search was conducted, and if so whether it was based on consent or probable cause; 4) facts supporting probable cause; 5) the type, if any, of contraband that was collected; 6) disposition of the stop, e.g., arrest, ticket, warning, or release; 7) location of stop; and 8) statement of the charge, e.g., felony, misdemeanor, or traffic. Tier one reports are made to the governing body of each county or municipality served by the agency an annual report of information if the agency is an agency of a county, municipality, or other political subdivision of the state. Tier one and two reports are reported to the county or municipality not later than M arch 1 for the previous calendar year beginning March 1, 2003. Tier two reports include a comparative analysis between the race and ethnicity of persons detained to see if a differential pattern of treatment can be discerned based on the disposition of st ops including searches resulting from the stops. The reports also include information relating to each complaint filed with the agency alleging that a peace officer employed by the agency has engaged in racial profiling. An agency may be exempt from the tier two reporting requirement by applying for the funds from the Department of Public Safety for video and audio equipment and the State does not supply those funds [See 2.135 (a)(2) TCCP]. Reports should include both raw numbers and percentages for each group. Caution should be exercised in interpreting the data involving percentages because of statistical distortions caused by very small numbers in any particular category, for example, if only one American Indian is stopped and searched, that stop would not provide an accurate comparison with 200 stops among Caucasians with 100 searches. In the first case, a 100% search rate would be skewed data when compared to a 50% rate for Caucasians. Standard 4 If a law enforcement agency has video and audio capabilities in motor vehicles regularly used for traffic stops, or audio capabilities on motorcycles regularly used to make traffic stops, the agency:  adopts standards for reviewing and retaining audio and video documentation; and  promptly provides a copy of the recording to a peace officer who is the subject of a complaint on written request by the officer. Commentary The agency should have a specific review and retention policy. Article 2.13 2 TCCP specifically requires that the peace officer be promptly provided with a copy of the audio or video recordings if the officer is the subject of a complaint and the officer makes a written request. Standard 5 Agencies that do not currently have video or audio equipment must examine the feasibility of installing such equipment. Commentary None Standard 6 Agencies that have video and audio recording capabilities are exempt from the reporting requirements of Article 2.134 TCCP and officers are exempt from the reporting requirements of Article 2.133 TCCP provided that:  the equipment was in place and used during the proceeding calendar year; and  video and audio documentation is retained for at least 90 days. Commentary The audio and video equipment and policy must have been in place during the previous calendar year. Audio and video documentation must be kept for at least 90 days or longer if a complaint has been filed. The documentation must be retained until the complaint is resolved. Peace officers are not exempt from the requirements under Article 2.132 TCCP. Standard 7 Agencies have citation forms or other electronic media that comply with Section 543.202 of the Transportation Code. Commentary Senate Bill 1074 changed Section 543.202 of the Transportation Code requiring citations to include:  race or ethnicity, and  whether a search of the vehicle was conducted and whether consent for the search was obtained. The Texas Law on Racial Profiling S.B. No. 1074 AN ACT relating to the prevention of racial profiling by certain peace officers. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 2, Code of Criminal Procedure, is amended by adding Articles 2.131 through 2.138 to read as follows: Art. 2.131. RACIAL PROFILING PROHIBITED. A peace officer may not engage in racial profiling. Art. 2.132. LAW ENFORCEMENT POLICY ON RACIAL PROFILING. (a) In this article: (1) "Law enforcement agency" means an agency of the state, or of a county, municipality, or other political subdivision of the state, that employs peace officers who make traffic stops in the routine performance of the officers' official duties. (2) "Race or ethnicity" means of a particular descent, including Caucasian, African, Hispanic, Asian, or Native American descent. (b) Each law enforcement agency in this state shall adopt a detailed written policy on racial profiling. The policy must: (1) clearly define acts constituting racial profiling; (2) strictly prohibit peace officers employed by the agency from engaging in racial profiling; (3) implement a process by which an individual may file a complaint with the agency if the individual believes that a peace officer employed by the agency has engaged in racial profiling with respect to the individual; (4) provide public education relating to the agency's complaint process; (5) require appropriate corrective action to be taken against a peace officer employed by the agency who, after an investigation, is shown to have engaged in racial profiling in violation of the agency's policy adopted under this article; (6) require collection of information relating to traffic stops in which a citation is issued and to arrests resulting from those traffic stops, including information relating to: (A) the race or ethnicity of the individual detained; and (B) whether a search was conducted and, if so, whether the person detained consented to the search; and (7) require the agency to submit to the governing body of each county or municipality served by the agency an annual report of the information collected under Subdivision (6) if the agency is an agency of a county, municipality, or other political subdivision of the state. (c) The data collected as a result of the reporting requirements of this article shall not constitute prima facie evidence of racial profiling. (d) On adoption of a policy under Subsection (b), a law enforcement agency shall examine the feasibility of installing video camera and transmitter-activated equipment in each agency law enforcement motor vehicle regularly used to make traffic stops and transmitter-activated equipment in each agency law enforcement motorcycle regularly used to make traffic stops. If a law enforcement agency installs video or audio equipment as provided by this subsection, the policy adopted by the agency under Subsection (b) must include standards for reviewing video and audio documentation. (e) A report required under Subsection (b)(7) may not include identifying information about a peace officer who makes a traffic stop or about an individual who is stopped or arrested by a peace officer. This subsection does not affect the collection of information as required by a policy under Subsection (b)(6). (f) On the commencement of an investigation by a law enforcement agency of a complaint described by Subsection (b)(3) in which a video or audio recording of the occurrence on which the complaint is based was made, the agency shall promptly provide a copy of the recording to the peace officer who is the subject of the complaint on written request by the officer. Art. 2.133. REPORTS REQUIRED FOR TRAFFIC AND PEDESTRIAN STOPS. (a) In this article: (1) "Race or ethnicity" has the meaning assigned by Article 2.132(a). (2) "Pedestrian stop" means an interaction between a peace officer and an individual who is being detained for the purpose of a criminal investigation in which the individual is not under arrest. (b) A peace officer who stops a motor vehicle for an alleged violation of a law or ordinance regulating traffic or who stops a pedestrian for any suspected offense shall report to the law enforcement agency that employs the officer information relating to the stop, including: (1) a physical description of each person detained as a result of the stop, including: (A) the person's gender; and (B) the person's race or ethnicity, as stated by the person or, if the person does not state the person's race or ethnicity, as determined by the officer to the best of the officer's ability; (2) the traffic law or ordinance alleged to have been violated or the suspected offense; (3) whether the officer conducted a search as a result of the stop and, if so, whether the person detained consented to the search; (4) whether any contraband was discovered in the course of the search and the type of contraband discovered; (5) whether probable cause to search existed and the facts supporting the existence of that probable cause; (6) whether the officer made an arrest as a result of the stop or the search, including a statement of the offense charged; (7) the street address or approximate location of the stop; and (8) whether the officer issued a warning or a citation as a result of the stop, including a description of the warning or a statement of the violation charged. Art. 2.134. COMPILATION AND ANALYSIS OF INFORMATION COLLECTED. (a) In this article, "pedestrian stop" means an interaction between a peace officer and an individual who is being detained for the purpose of a criminal investigation in which the individual is not under arrest. (b) A law enforcement agency shall compile and analyze the information contained in each report received by the agency under Article 2.133. Not later than March 1 of each year, each local law enforcement agency shall submit a report containing the information compiled during the previous calendar year to the governing body of each county or municipality served by the agency in a manner approved by the agency. (c) A report required under Subsection (b) must include: (1) a comparative analysis of the information compiled under Article 2.133 to: (A) determine the prevalence of racial profiling by peace officers employed by the agency; and (B) examine the disposition of traffic and pedestrian stops made by officers employed by the agency, including searches resulting from the stops; and (2) information relating to each complaint filed with the agency alleging that a peace officer employed by the agency has engaged in racial profiling. (d) A report required under Subsection (b) may not include identifying information about a peace officer who makes a traffic or pedestrian stop or about an individual who is stopped or arrested by a peace officer. This subsection does not affect the reporting of information required under Article 2.133(b)(1). (e) The Commission on Law Enforcement Officer Standards and Education shall develop guidelines for compiling and reporting information as required by this article. (f) The data collected as a result of the reporting requirements of this article shall not constitute prima facie evidence of racial profiling. Art. 2.135. EXEMPTION FOR AGENCIES USING VIDEO AND AUDIO EQUIPMENT. (a) A peace officer is exempt from the reporting requirement under Article 2.133 and a law enforcement agency is exempt from the compilation, analysis, and reporting requirements under Article 2.134 if: (1) during the calendar year preceding the date that a report under Article 2.134 is required to be submitted: (A) each law enforcement motor vehicle regularly used by an officer employed by the agency to make traffic and pedestrian stops is equipped with video camera and transmitter-activated equipment and each law enforcement motorcycle regularly used to make traffic and pedestrian stops is equipped with transmitter-activated equipment; and (B) each traffic and pedestrian stop made by an officer employed by the agency that is capable of being recorded by video and audio or audio equipment, as appropriate, is recorded by using the equipment; or (2) the governing body of the county or municipality served by the law enforcement agency, in conjunction with the law enforcement agency, certifies to the Department of Public Safety, not later than the date specified by rule by the department, that the law enforcement agency needs funds or video and audio equipment for the purpose of installing video and audio equipment as described by Subsection (a)(1)(A) and the agency does not receive from the state funds or video and audio equipment sufficient, as determined by the department, for the agency to accomplish that purpose. (b) Except as otherwise provided by this subsection, a law enforcement agency that is exempt from the requirements under Article 2.134 shall retain the video and audio or audio documentation of each traffic and pedestrian stop for at least 90 days after the date of the stop. If a complaint is filed with the law enforcement agency alleging that a peace officer employed by the agency has engaged in racial profiling with respect to a traffic or pedestrian stop, the agency shall retain the video and audio or audio record of the stop until final disposition of the complaint. (c) This article does not affect the collection or reporting requirements under Article 2.132. Art. 2.136. LIABILITY. A peace officer is not liable for damages arising from an act relating to the collection or reporting of information as required by Article 2.133 or under a policy adopted under Article 2.132. Art. 2.137. PROVISION OF FUNDING OR EQUIPMENT. (a) The Department of Public Safety shall adopt rules for providing funds or video and audio equipment to law enforcement agencies for the purpose of installing video and audio equipment as described by Article 2.135(a)(1)(A), including specifying criteria to prioritize funding or equipment provided to law enforcement agencies. The criteria may include consideration of tax effort, financial hardship, available revenue, and budget surpluses. The criteria must give priority to: (1) law enforcement agencies that employ peace officers whose primary duty is traffic enforcement; (2) smaller jurisdictions; and (3) municipal and county law enforcement agencies. (b) The Department of Public Safety shall collaborate with an institution of higher education to identify law enforcement agencies that need funds or video and audio equipment for the purpose of installing video and audio equipment as described by Article 2.135(a)(1)(A). The collaboration may include the use of a survey to assist in developing criteria to prioritize funding or equipment provided to law enforcement agencies. (c) To receive funds or video and audio equipment from the state for the purpose of installing video and audio equipment as described by Article 2.135(a)(1)(A), the governing body of a county or municipality, in conjunction with the law enforcement agency serving the county or municipality, shall certify to the Department of Public Safety that the law enforcement agency needs funds or video and audio equipment for that purpose. (d) On receipt of funds or video and audio equipment from the state for the purpose of installing video and audio equipment as described by Article 2.135(a)(1)(A), the governing body of a county or municipality, in conjunction with the law enforcement agency serving the county or municipality, shall certify to the Department of Public Safety that the law enforcement agency has installed video and audio equipment as described by Article 2.135(a)(1)(A) and is using the equipment as required by Article 2.135(a)(1). Art. 2.138. RULES. The Department of Public Safety may adopt rules to implement Articles 2.131-2.137. SECTION 2. Chapter 3, Code of Criminal Procedure, is amended by adding Article 3.05 to read as follows: Art. 3.05. RACIAL PROFILING. In this code, "racial profiling" means a law enforcement-initiated action based on an individual's race, ethnicity, or national origin rather than on the individual's behavior or on information identifying the individual as having engaged in criminal activity. SECTION 3. Section 96.641, Education Code, is amended by adding Subsection (j) to read as follows: (j) As part of the initial training and continuing education for police chiefs required under this section, the institute shall establish a program on racial profiling. The program must include an examination of the best practices for: (1) monitoring peace officers' compliance with laws and internal agency policies relating to racial profiling; (2) implementing laws and internal agency policies relating to preventing racial profiling; and (3) analyzing and reporting collected information. SECTION 4. Section 1701.253, Occupations Code, is amended by adding Subsection (e) to read as follows: (e) As part of the minimum curriculum requirements, the commission shall establish a statewide comprehensive education and training program on racial profiling for officers licensed under this chapter. An officer shall complete a program established under this subsection not later than the second anniversary of the date the officer is licensed under this chapter or the date the officer applies for an intermediate proficiency certificate, whichever date is earlier. SECTION 5. Section 1701.402, Occupations Code, is amended by adding Subsection (d) to read as follows: (d) As a requirement for an intermediate proficiency certificate, an officer must complete an education and training program on racial profiling established by the commission under Section 1701.253(e). SECTION 6. Section 543.202, Transportation Code, is amended to read as follows: Sec. 543.202. FORM OF RECORD. (a) In this section, "race or ethnicity" means of a particular descent, including Caucasian, African, Hispanic, Asian, or Native American descent. (b) The record must be made on a form or by a data processing method acceptable to the department and must include: (1) the name, address, physical description, including race or ethnicity, date of birth, and driver's license number of the person charged; (2) the registration number of the vehicle involved; (3) whether the vehicle was a commercial motor vehicle as defined by Chapter 522 or was involved in transporting hazardous materials; (4) the person's social security number, if the person was operating a commercial motor vehicle or was the holder of a commercial driver's license or commercial driver learner's permit; (5) the date and nature of the offense, including whether the offense was a serious traffic violation as defined by Chapter 522; (6) whether a search of the vehicle was conducted and whether consent for the search was obtained; (7) the plea, the judgment, and whether bail was forfeited; (8) [(7)] the date of conviction; and (9) [(8)] the amount of the fine or forfeiture. SECTION 7. Not later than January 1, 2002, a law enforcement agency shall adopt and implement a policy and begin collecting information under the policy as required by Article 2.132, Code of Criminal Procedure, as added by this Act. A local law enforcement agency shall first submit information to the governing body of each county or municipality served by the agency as required by Article 2.132, Code of Criminal Procedure, as added by this Act, on March 1, 2003. The first submission of information shall consist of information compiled by the agency during the period beginning January 1, 2002, and ending December 31, 2002. SECTION 8. A local law enforcement agency shall first submit information to the governing body of each county or municipality served by the agency as required by Article 2.134, Code of Criminal Procedure, as added by this Act, on March 1, 2004. The first submission of information shall consist of information compiled by the agency during the period beginning January 1, 2003, and ending December 31, 2003. SECTION 9. Not later than January 1, 2002: (1) the Commission on Law Enforcement Officer Standards and Education shall establish an education and training program on racial profiling as required by Subsection (e), Section 1701.253, Occupations Code, as added by this Act; and (2) the Bill Blackwood Law Enforcement Management Institute of Texas shall establish a program on racial profiling as required by Subsection (j), Section 96.641, Education Code, as added by this Act. SECTION 10. A person who on the effective date of this Act holds an intermediate proficiency certificate issued by the Commission on Law Enforcement Officer Standards and Education or has held a peace officer license issued by the Commission on Law Enforcement Officer Standards and Education for at least two years shall complete an education and training program on racial profiling established under Subsection (e), Section 1701.253, Occupations Code, as added by this Act, not later than September 1, 2003. SECTION 11. An individual appointed or elected as a police chief before the effective date of this Act shall complete a program on racial profiling established under Subsection (j), Section 96.641, Education Code, as added by this Act, not later than September 1, 2003. SECTION 12. This Act takes effect September 1, 2000 _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1074 passed the Senate on April 4, 2001, by the following vote: Yeas 28, Nays 2; May 21, 2001, Senate refused to concur in House amendments and requested appointment of Conference Committee; May 22, 2001, House granted request of the Senate; May 24, 2001, Senate adopted Conference Committee Report by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1074 passed the House, with amendments, on May 15, 2001, by a non-record vote; May 22, 2001, House granted request of the Senate for appointment of Conference Committee; May 24, 2001, House adopted Conference Committee Report by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor Modifications to the Original Law (H.B. 3389) Amend CSHB 3389 (Senate committee report) as follows: (1) Strike the following SECTIONS of the bill: (A) SECTION 8, adding Section 1701.164, Occupations Code (page 4, lines 61-66); (B) SECTION 24, amending Article 2.132(b), Code of Criminal Procedure (page 8, lines 19-53); (C) SECTION 25, amending Article 2.134(b), Code of Criminal Procedure (page 8, lines 54-64); (D) SECTION 28, providing transition language for the amendments to Articles 2.132(b) and 2.134(b), Code of Criminal Procedure (page 9, lines 40-47). (2) Add the following appropriately numbered SECTIONS to the bill and renumber subsequent SECTIONS of the bill accordingly: SECTION ____. Article 2.132, Code of Criminal Procedure, is amended by amending Subsections (a), (b), (d), and (e) and adding Subsection (g) to read as follows: (a) In this article: (1) "Law enforcement agency" means an agency of the state, or of a county, municipality, or other political subdivision of the state, that employs peace officers who make motor vehicle [traffic] stops in the routine performance of the officers' official duties. (2) "Motor vehicle stop" means an occasion in which a peace officer stops a motor vehicle for an alleged violation of a law or ordinance. (3) "Race or ethnicity" means of a particular descent, including Caucasian, African, Hispanic, Asian, [or] Native American, or Middle Eastern descent. (b) Each law enforcement agency in this state shall adopt a detailed written policy on racial profiling. The policy must: (1) clearly define acts constituting racial profiling; (2) strictly prohibit peace officers employed by the agency from engaging in racial profiling; (3) implement a process by which an individual may file a complaint with the agency if the individual believes that a peace officer employed by the agency has engaged in racial profiling with respect to the individual; (4) provide public education relating to the agency's complaint process; (5) require appropriate corrective action to be taken against a peace officer employed by the agency who, after an investigation, is shown to have engaged in racial profiling in violation of the agency's policy adopted under this article; (6) require collection of information relating to motor vehicle [traffic] stops in which a citation is issued and to arrests made as a result of [resulting from] those [traffic] stops, including information relating to: (A) the race or ethnicity of the individual detained; and (B) whether a search was conducted and, if so, whether the individual [person] detained consented to the search; and (C) whether the peace officer knew the race or ethnicity of the individual detained before detaining that individual; and (7) require the chief administrator of the agency, regardless of whether the administrator is elected, employed, or appointed, to submit [to the governing body of each county or municipality served by the agency] an annual report of the information collected under Subdivision (6) to: (A) the Commission on Law Enforcement Officer Standards and Education; and (B) the governing body of each county or municipality served by the agency, if the agency is an agency of a county, municipality, or other political subdivision of the state. (d) On adoption of a policy under Subsection (b), a law enforcement agency shall examine the feasibility of installing video camera and transmitter-activated equipment in each agency law enforcement motor vehicle regularly used to make motor vehicle [traffic] stops and transmitter-activated equipment in each agency law enforcement motorcycle regularly used to make motor vehicle [traffic] stops. If a law enforcement agency installs video or audio equipment as provided by this subsection, the policy adopted by the agency under Subsection (b) must include standards for reviewing video and audio documentation. (e) A report required under Subsection (b)(7) may not include identifying information about a peace officer who makes a motor vehicle [traffic] stop or about an individual who is stopped or arrested by a peace officer. This subsection does not affect the collection of information as required by a policy under Subsection (b)(6). (g) On a finding by the Commission on Law Enforcement Officer Standards and Education that the chief administrator of a law enforcement agency intentionally failed to submit a report required under Subsection (b)(7), the commission shall begin disciplinary procedures against the chief administrator. SECTION ____. Article 2.133, Code of Criminal Procedure, is amended to read as follows: Art. 2.133. REPORTS REQUIRED FOR MOTOR VEHICLE [TRAFFIC AND PEDESTRIAN] STOPS. (a) In this article, "race[: [(1) "Race] or ethnicity" has the meaning assigned by Article 2.132(a). [(2) "Pedestrian stop" means an interaction between a peace officer and an individual who is being detained for the purpose of a criminal investigation in which the individual is not under arrest.] (b) A peace officer who stops a motor vehicle for an alleged violation of a law or ordinance [regulating traffic or who stops a pedestrian for any suspected offense] shall report to the law enforcement agency that employs the officer information relating to the stop, including: (1) a physical description of any [each] person operating the motor vehicle who is detained as a result of the stop, including: (A) the person's gender; and (B) the person's race or ethnicity, as stated by the person or, if the person does not state the person's race or ethnicity, as determined by the officer to the best of the officer's ability; (2) the initial reason for the stop [traffic law or ordinance alleged to have been violated or the suspected offense]; (3) whether the officer conducted a search as a result of the stop and, if so, whether the person detained consented to the search; (4) whether any contraband or other evidence was discovered in the course of the search and a description [the type] of the contraband or evidence [discovered]; (5) the reason for the search, including whether: (A) any contraband or other evidence was in plain view; (B) any probable cause or reasonable suspicion existed to perform the search; or (C) the search was performed as a result of the towing of the motor vehicle or the arrest of any person in the motor vehicle [existed and the facts supporting the existence of that probable cause]; (6) whether the officer made an arrest as a result of the stop or the search, including a statement of whether the arrest was based on a violation of the Penal Code, a violation of a traffic law or ordinance, or an outstanding warrant and a statement of the offense charged; (7) the street address or approximate location of the stop; and (8) whether the officer issued a written warning or a citation as a result of the stop[, including a description of the warning or a statement of the violation charged]. SECTION ____. Article 2.134, Code of Criminal Procedure, is amended by amending Subsections (a) through (e) and adding Subsection (g) to read as follows: (a) In this article: (1) "Motor vehicle[, "pedestrian] stop" has the meaning assigned by Article 2.132(a) [means an interaction between a peace officer and an individual who is being detained for the purpose of a criminal investigation in which the individual is not under arrest]. (2) "Race or ethnicity" has the meaning assigned by Article 2.132(a). (b) A law enforcement agency shall compile and analyze the information contained in each report received by the agency under Article 2.133. Not later than March 1 of each year, each [local] law enforcement agency shall submit a report containing the incident-based data [information] compiled during the previous calendar year to the Commission on Law Enforcement Officer Standards and Education and, if the law enforcement agency is a local law enforcement agency, to the governing body of each county or municipality served by the agency [in a manner approved by the agency]. (c) A report required under Subsection (b) must be submitted by the chief administrator of the law enforcement agency, regardless of whether the administrator is elected, employed, or appointed, and must include: (1) a comparative analysis of the information compiled under Article 2.133 to: (A) evaluate and compare the number of motor vehicle stops, within the applicable jurisdiction, of persons who are recognized as racial or ethnic minorities and persons who are not recognized as racial or ethnic minorities [determine the prevalence of racial profiling by peace officers employed by the agency]; and (B) examine the disposition of motor vehicle[traffic and pedestrian] stops made by officers employed by the agency, categorized according to the race or ethnicity of the affected persons, as appropriate, including any searches resulting from [the] stops within the applicable jurisdiction; and (2) information relating to each complaint filed with the agency alleging that a peace officer employed by the agency has engaged in racial profiling. (d) A report required under Subsection (b) may not include identifying information about a peace officer who makes a motor vehicle [traffic or pedestrian] stop or about an individual who is stopped or arrested by a peace officer. This subsection does not affect the reporting of information required under Article 2.133(b)(1). (e) The Commission on Law Enforcement Officer Standards and Education, in accordance with Section 1701.162, Occupations Code, shall develop guidelines for compiling and reporting information as required by this article. (g) On a finding by the Commission on Law Enforcement Officer Standards and Education that the chief administrator of a law enforcement agency intentionally failed to submit a report required under Subsection (b), the commission shall begin disciplinary procedures against the chief administrator. SECTION ____. Article 2.135, Code of Criminal Procedure, is amended to read as follows: Art. 2.135. PARTIAL EXEMPTION FOR AGENCIES USING VIDEO AND AUDIO EQUIPMENT. (a) A peace officer is exempt from the reporting requirement under Article 2.133 and the chief administrator of a law enforcement agency, regardless of whether the administrator is elected, employed, or appointed, is exempt from the compilation, analysis, and reporting requirements under Article 2.134 if: (1) during the calendar year preceding the date that a report under Article 2.134 is required to be submitted: (A) each law enforcement motor vehicle regularly used by an officer employed by the agency to make motor vehicle [traffic and pedestrian] stops is equipped with video camera and transmitter-activated equipment and each law enforcement motorcycle regularly used to make motor vehicle [traffic and pedestrian] stops is equipped with transmitter-activated equipment; and (B) each motor vehicle [traffic and pedestrian] stop made by an officer employed by the agency that is capable of being recorded by video and audio or audio equipment, as appropriate, is recorded by using the equipment; or (2) the governing body of the county or municipality served by the law enforcement agency, in conjunction with the law enforcement agency, certifies to the Department of Public Safety, not later than the date specified by rule by the department, that the law enforcement agency needs funds or video and audio equipment for the purpose of installing video and audio equipment as described by Subsection (a)(1)(A) and the agency does not receive from the state funds or video and audio equipment sufficient, as determined by the department, for the agency to accomplish that purpose. (b) Except as otherwise provided by this subsection, a law enforcement agency that is exempt from the requirements under Article 2.134 shall retain the video and audio or audio documentation of each motor vehicle [traffic and pedestrian] stop for at least 90 days after the date of the stop. If a complaint is filed with the law enforcement agency alleging that a peace officer employed by the agency has engaged in racial profiling with respect to a motor vehicle [traffic or pedestrian] stop, the agency shall retain the video and audio or audio record of the stop until final disposition of the complaint. (c) This article does not affect the collection or reporting requirements under Article 2.132. (d) In this article, "motor vehicle stop" has the meaning assigned by Article 2.132(a). SECTION ____. Chapter 2, Code of Criminal Procedure, is amended by adding Article 2.1385 to read as follows: Art. 2.1385. CIVIL PENALTY. (a) If the chief administrator of a local law enforcement agency intentionally fails to submit the incident-based data as required by Article 2.134, the agency is liable to the state for a civil penalty in the amount of $1,000 for each violation. The attorney general may sue to collect a civil penalty under this subsection. (b) From money appropriated to the agency for the administration of the agency, the executive director of a state law enforcement agency that intentionally fails to submit the incident-based data as required by Article 2.134 shall remit to the comptroller the amount of $1,000 for each violation. (c) Money collected under this article shall be deposited in the state treasury to the credit of the general revenue fund. SECTION ____. Subchapter A, Chapter 102, Code of Criminal Procedure, is amended by adding Article 102.022 to read as follows: Art. 102.022. COSTS ON CONVICTION TO FUND STATEWIDE REPOSITORY FOR DATA RELATED TO CIVIL JUSTICE. (a) In this article, "moving violation" means an offense that: (1) involves the operation of a motor vehicle; and (2) is classified as a moving violation by the Department of Public Safety under Section 708.052, Transportation Code. (b) A defendant convicted of a moving violation in a justice court, county court, county court at law, or municipal court shall pay a fee of 10 cents as a cost of court. (c) In this article, a person is considered convicted if: (1) a sentence is imposed on the person; (2) the person receives community supervision, including deferred adjudication; or (3) the court defers final disposition of the person's case. (d) The clerks of the respective courts shall collect the costs described by this article. The clerk shall keep separate records of the funds collected as costs under this article and shall deposit the funds in the county or municipal treasury, as appropriate. (e) The custodian of a county or municipal treasury shall: (1) keep records of the amount of funds on deposit collected under this article; and (2) send to the comptroller before the last day of the first month following each calendar quarter the funds collected under this article during the preceding quarter. (f) A county or municipality may retain 10 percent of the funds collected under this article by an officer of the county or municipality as a collection fee if the custodian of the county or municipal treasury complies with Subsection (e). (g) If no funds due as costs under this article are deposited in a county or municipal treasury in a calendar quarter, the custodian of the treasury shall file the report required for the quarter in the regular manner and must state that no funds were collected. (h) The comptroller shall deposit the funds received under this article to the credit of the Civil Justice Data Repository fund in the general revenue fund, to be used only by the Commission on Law Enforcement Officer Standards and Education to implement duties under Section 1701.162, Occupations Code. (i) Funds collected under this article are subject to audit by the comptroller. SECTION ____. (a) Section 102.061, Government Code, as reenacted and amended by Chapter 921 (H.B. 3167), Acts of the 80th Legislature, Regular Session, 2007, is amended to conform to the amendments made to Section 102.061, Government Code, by Chapter 1053 (H.B. 2151), Acts of the 80th Legislature, Regular Session, 2007, and is further amended to read as follows: Sec. 102.061. ADDITIONAL COURT COSTS ON CONVICTION IN STATUTORY COUNTY COURT: CODE OF CRIMINAL PROCEDURE. The clerk of a statutory county court shall collect fees and costs under the Code of Criminal Procedure on conviction of a defendant as follows: (1) a jury fee (Art. 102.004, Code of Criminal Procedure) . . . $20; (2) a fee for services of the clerk of the court (Art. 102.005, Code of Criminal Procedure) . . . $40; (3) a records management and preservation services fee (Art. 102.005, Code of Criminal Procedure) . . . $25; (4) a security fee on a misdemeanor offense (Art. 102.017, Code of Criminal Procedure) . . . $3; (5) a juvenile delinquency prevention and graffiti eradication fee (Art. 102.0171, Code of Criminal Procedure) . . . $50 [$5]; [and] (6) a juvenile case manager fee (Art. 102.0174, Code of Criminal Procedure) . . . not to exceed $5; and (7) a civil justice fee (Art. 102.022, Code of Criminal Procedure) . . . $0.10. (b) Section 102.061, Government Code, as amended by Chapter 1053 (H.B. 2151), Acts of the 80th Legislature, Regular Session, 2007, is repealed. Section 102.061, Government Code, as reenacted and amended by Chapter 921 (H.B. 3167), Acts of the 80th Legislature, Regular Session, 2007, to reorganize and renumber that section, continues in effect as further amended by this section. SECTION ____. (a) Section 102.081, Government Code, as amended by Chapter 921 (H.B. 3167), Acts of the 80th Legislature, Regular Session, 2007, is amended to conform to the amendments made to Section 102.081, Government Code, by Chapter 1053 (H.B. 2151), Acts of the 80th Legislature, Regular Session, 2007, and is further amended to read as follows: Sec. 102.081. ADDITIONAL COURT COSTS ON CONVICTION IN COUNTY COURT: CODE OF CRIMINAL PROCEDURE. The clerk of a county court shall collect fees and costs under the Code of Criminal Procedure on conviction of a defendant as follows: (1) a jury fee (Art. 102.004, Code of Criminal Procedure) . . . $20; (2) a fee for clerk of the court services (Art. 102.005, Code of Criminal Procedure) . . . $40; (3) a records management and preservation services fee (Art. 102.005, Code of Criminal Procedure) . . . $25; (4) a security fee on a misdemeanor offense (Art. 102.017, Code of Criminal Procedure) . . . $3; (5) a juvenile delinquency prevention and graffiti eradication fee (Art. 102.0171, Code of Criminal Procedure) . . . $50 [$5]; [and] (6) a juvenile case manager fee (Art. 102.0174, Code of Criminal Procedure) . . . not to exceed $5; and (7) a civil justice fee (Art. 102.022, Code of Criminal Procedure) . . . $0.10. (b) Section 102.081, Government Code, as amended by Chapter 1053 (H.B. 2151), Acts of the 80th Legislature, Regular Session, 2007, is repealed. Section 102.081, Government Code, as amended by Chapter 921 (H.B. 3167), Acts of the 80th Legislature, Regular Session, 2007, to reorganize and renumber that section, continues in effect as further amended by this section. SECTION ____. Section 102.101, Government Code, is amended to read as follows: Sec. 102.101. ADDITIONAL COURT COSTS ON CONVICTION IN JUSTICE COURT: CODE OF CRIMINAL PROCEDURE. A clerk of a justice court shall collect fees and costs under the Code of Criminal Procedure on conviction of a defendant as follows: (1) a jury fee (Art. 102.004, Code of Criminal Procedure) . . . $3; (2) a fee for withdrawing request for jury less than 24 hours before time of trial (Art. 102.004, Code of Criminal Procedure) . . . $3; (3) a jury fee for two or more defendants tried jointly (Art. 102.004, Code of Criminal Procedure) . . . one jury fee of $3; (4) a security fee on a misdemeanor offense (Art. 102.017, Code of Criminal Procedure) . . . $4; (5) a fee for technology fund on a misdemeanor offense (Art. 102.0173, Code of Criminal Procedure) . . . $4; (6) a juvenile case manager fee (Art. 102.0174, Code of Criminal Procedure) . . . not to exceed $5; (7) a fee on conviction of certain offenses involving issuing or passing a subsequently dishonored check (Art. 102.0071, Code of Criminal Procedure) . . . not to exceed $30; [and] (8) a court cost on conviction of a Class C misdemeanor in a county with a population of 3.3 million or more, if authorized by the county commissioners court (Art. 102.009, Code of Criminal Procedure) . . . not to exceed $7; and (9) a civil justice fee (Art. 102.022, Code of Criminal Procedure) . . . $0.10. SECTION ____. Section 102.121, Government Code, is amended to read as follows: Sec. 102.121. ADDITIONAL COURT COSTS ON CONVICTION IN MUNICIPAL COURT: CODE OF CRIMINAL PROCEDURE. The clerk of a municipal court shall collect fees and costs on conviction of a defendant as follows: (1) a jury fee (Art. 102.004, Code of Criminal Procedure) . . . $3; (2) a fee for withdrawing request for jury less than 24 hours before time of trial (Art. 102.004, Code of Criminal Procedure) . . . $3; (3) a jury fee for two or more defendants tried jointly (Art. 102.004, Code of Criminal Procedure) . . . one jury fee of $3; (4) a security fee on a misdemeanor offense (Art. 102.017, Code of Criminal Procedure) . . . $3; (5) a fee for technology fund on a misdemeanor offense (Art. 102.0172, Code of Criminal Procedure) . . . not to exceed $4; [and] (6) a juvenile case manager fee (Art. 102.0174, Code of Criminal Procedure) . . . not to exceed $5; and (7) a civil justice fee (Art. 102.022, Code of Criminal Procedure) . . . $0.10. SECTION ____. Subchapter D, Chapter 1701, Occupations Code, is amended by adding Section 1701.164 to read as follows: Sec. 1701.164. COLLECTION OF CERTAIN INCIDENT-BASED DATA SUBMITTED BY LAW ENFORCEMENT AGENCIES. The commission shall collect and maintain incident-based data submitted to the commission under Article 2.134, Code of Criminal Procedure, including incident-based data compiled by a law enforcement agency from reports received by the law enforcement agency under Article 2.133 of that code. The commission in consultation with the Department of Public Safety, the Bill Blackwood Law Enforcement Management Institute of Texas, the W. W. Caruth, Jr., Police Institute at Dallas, and the Texas Police Chiefs Association shall develop guidelines for submitting in a standard format the report containing incident-based data as required by Article 2.134, Code of Criminal Procedure. SECTION ____. Subsection (a), Section 1701.501, Occupations Code, is amended to read as follows: (a) Except as provided by Subsection (d), the commission shall revoke or suspend a license, place on probation a person whose license has been suspended, or reprimand a license holder for a violation of: (1) this chapter; (2) the reporting requirements provided by Articles 2.132 and 2.134, Code of Criminal Procedure; or (3) a commission rule. SECTION ____. (a) The requirements of Articles 2.132, 2.133, and 2.134, Code of Criminal Procedure, as amended by this Act, relating to the compilation, analysis, and submission of incident-based data apply only to information based on a motor vehicle stop occurring on or after January 1, 2010. (b) The imposition of a cost of court under Article 102.022, Code of Criminal Procedure, as added by this Act, applies only to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense occurred before that date. Racial and Ethnic Designations (H.B. 3051) H.B. No. 3051 AN ACT relating to the categories used to record the race or ethnicity of persons stopped for or convicted of traffic offenses. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Article 2.132(a)(3), Code of Criminal Procedure, is amended to read as follows: (3) "Race or ethnicity" means the following categories: (A) Alaska native or American Indian; (B) [of a particular descent, including Caucasian, African, Hispanic,] Asian or Pacific Islander; (C) black; (D) white; and (E) Hispanic or Latino [, Native American, or Middle Eastern descent]. SECTION 2. Section 543.202(a), Transportation Code, is amended to read as follows: (a) In this section, "race or ethnicity" means the following categories: (1) Alaska native or American Indian; (2) [of a particular descent, including Caucasian, African, Hispanic,] Asian or Pacific Islander; (3) black; (4) white; and (5) Hispanic or Latino [, or Native American descent]. SECTION 3. This Act takes effect September 1, 2017. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 3051 was passed by the House on May 4, 2017, by the following vote: Yeas 143, Nays 2, 2 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 3051 was passed by the Senate on May 19, 2017, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor The Sandra Bland Act (S.B. 1849) S.B. No. 1849 AN ACT relating to interactions between law enforcement and individuals detained or arrested on suspicion of the commission of criminal offenses, to the confinement, conviction, or release of those individuals, and to grants supporting populations that are more likely to interact frequently with law enforcement. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: ARTICLE 1. SHORT TITLE SECTION 1.01. SHORT TITLE. This Act shall be known as the Sandra Bland Act, in memory of Sandra Bland. ARTICLE 2. IDENTIFICATION AND DIVERSION OF AND SERVICES FOR PERSONS SUSPECTED OF HAVING A MENTAL ILLNESS, AN INTELLECTUAL DISABILITY, OR A SUBSTANCE ABUSE ISSUE SECTION 2.01. Article 16.22, Code of Criminal Procedure, is amended to read as follows: Art. 16.22. EARLY IDENTIFICATION OF DEFENDANT SUSPECTED OF HAVING MENTAL ILLNESS OR INTELLECTUAL DISABILITY [MENTAL RETARDATION]. (a) (1) Not later than 12 [72] hours after receiving credible information that may establish reasonable cause to believe that a defendant committed to the sheriff's custody has a mental illness or is a person with an intellectual disability [mental retardation], including observation of the defendant's behavior immediately before, during, and after the defendant's arrest and the results of any previous assessment of the defendant, the sheriff shall provide written or electronic notice of the information to the magistrate. On a determination that there is reasonable cause to believe that the defendant has a mental illness or is a person with an intellectual disability [mental retardation], the magistrate, except as provided by Subdivision (2), shall order the local mental health or intellectual and developmental disability [mental retardation] authority or another qualified mental health or intellectual disability [mental retardation] expert to: (A) collect information regarding whether the defendant has a mental illness as defined by Section 571.003, Health and Safety Code, or is a person with an intellectual disability [mental retardation] as defined by Section 591.003, Health and Safety Code, including information obtained from any previous assessment of the defendant; and (B) provide to the magistrate a written assessment of the information collected under Paragraph (A). (2) The magistrate is not required to order the collection of information under Subdivision (1) if the defendant in the year preceding the defendant's applicable date of arrest has been determined to have a mental illness or to be a person with an intellectual disability [mental retardation] by the local mental health or intellectual and developmental disability [mental retardation] authority or another mental health or intellectual disability [mental retardation] expert described by Subdivision (1). A court that elects to use the results of that previous determination may proceed under Subsection (c). (3) If the defendant fails or refuses to submit to the collection of information regarding the defendant as required under Subdivision (1), the magistrate may order the defendant to submit to an examination in a mental health facility determined to be appropriate by the local mental health or intellectual and developmental disability [mental retardation] authority for a reasonable period not to exceed 21 days. The magistrate may order a defendant to a facility operated by the Department of State Health Services or the Health and Human Services Commission [Department of Aging and Disability Services] for examination only on request of the local mental health or intellectual and developmental disability [mental retardation] authority and with the consent of the head of the facility. If a defendant who has been ordered to a facility operated by the Department of State Health Services or the Health and Human Services Commission [Department of Aging and Disability Services] for examination remains in the facility for a period exceeding 21 days, the head of that facility shall cause the defendant to be immediately transported to the committing court and placed in the custody of the sheriff of the county in which the committing court is located. That county shall reimburse the facility for the mileage and per diem expenses of the personnel required to transport the defendant calculated in accordance with the state travel regulations in effect at the time. (b) A written assessment of the information collected under Subsection (a)(1)(A) shall be provided to the magistrate not later than the 30th day after the date of any order issued under Subsection (a) in a felony case and not later than the 10th day after the date of any order issued under that subsection in a misdemeanor case, and the magistrate shall provide copies of the written assessment to the defense counsel, the prosecuting attorney, and the trial court. The written assessment must include a description of the procedures used in the collection of information under Subsection (a)(1)(A) and the applicable expert's observations and findings pertaining to: (1) whether the defendant is a person who has a mental illness or is a person with an intellectual disability [mental retardation]; (2) whether there is clinical evidence to support a belief that the defendant may be incompetent to stand trial and should undergo a complete competency examination under Subchapter B, Chapter 46B; and (3) recommended treatment. (c) After the trial court receives the applicable expert's written assessment relating to the defendant under Subsection (b) or elects to use the results of a previous determination as described by Subsection (a)(2), the trial court may, as applicable: (1) resume criminal proceedings against the defendant, including any appropriate proceedings related to the defendant's release on personal bond under Article 17.032; (2) resume or initiate competency proceedings, if required, as provided by Chapter 46B or other proceedings affecting the defendant's receipt of appropriate court-ordered mental health or intellectual disability [mental retardation] services, including proceedings related to the defendant's receipt of outpatient mental health services under Section 574.034, Health and Safety Code; or (3) Consider the written assessment during the punishment phase after a conviction of the offense for which the defendant was arrested, as part of a presentence investigation report, or in connection with the impositions of conditions following placement on community supervision, including deferred adjudication community supervision. (d) This article does not prevent the applicable court from, before, during, or after the collection of information regarding the defendant as described by this article: (1) releasing a defendant who has a mental illness [mentally ill] or is a person with an intellectual disability [mentally retarded defendant] from custody on personal or surety bond; or (2) ordering an examination regarding the defendant's competency to stand trial. SECTION 2.02. Chapter 16, Code of Criminal Procedure, is amended by adding Article 16.23 to read as follows: Art. 16.23. DIVERSION OF PERSONS SUFFERING MENTAL HEALTH CRISIS OR SUBSTANCE ABUSE ISSUE. (a) Each law enforcement agency shall make a good faith effort to divert a person suffering a mental health crisis or suffering from the effects of substance abuse to a proper treatment center in the agency's jurisdiction if: (1) there is an available and appropriate treatment center in the agency's jurisdiction to which the agency may divert the person; (2) it is reasonable to divert the person; (3) the offense that the person is accused of is a misdemeanor, other than a misdemeanor involving violence; and (4) the mental health crisis or substance abuse issue is suspected to be the reason the person committed the alleged offense. (b) Subsection (a) does not apply to a person who is accused of an offense under Section 49.04, 49.045, 49.05, 49.06, 49.065, 49.07, or 49.08, Penal Code. SECTION 2.03. Section 539.002, Government Code, is amended to read as follows: Sec. 539.002. GRANTS FOR ESTABLISHMENT AND EXPANSION OF COMMUNITY COLLABORATIVES. (a) To the extent funds are appropriated to the department for that purpose, the department shall make grants to entities, including local governmental entities, nonprofit community organizations, and faith-based community organizations, to establish or expand community collaboratives that bring the public and private sectors together to provide services to persons experiencing homelessness, substance abuse issues, or [and] mental illness. [The department may make a maximum of five grants, which must be made in the most populous municipalities in this state that are located in counties with a population of more than one million.] In awarding grants, the department shall give special consideration to entities: (1) establishing [a] new collaboratives; or (2) establishing or expanding collaborative that serve two or more counties, each with a population of less than 100,000 [collaborative]. (b) The department shall require each entity awarded a grant under this section to: (1) leverage additional funding from private sources in an amount that is at least equal to the amount of the grant awarded under this section; [and] (2) provide evidence of significant coordination and collaboration between the entity, local mental health authorities, municipalities, local law enforcement agencies, and other community stakeholders in establishing or expanding a community collaborative funded by a grant awarded under this section; and (3) provide evidence of a local law enforcement policy to divert appropriate persons from jails or other detention facilities to an entity affiliated with a community collaborative for the purpose of providing services to those persons. SECTION 2.04. Chapter 539, Government Code, is amended by adding Section 539.0051 to read as follows: Sec. 539.0051. PLAN REQUIRED FOR CERTAIN COMMUNITY COLLABORATIVES. (a) The governing body of a county shall develop and make public a plan detailing: (1) how local mental health authorities, municipalities, local law enforcement agencies, and other community stakeholders in the county could coordinate to establish or expand a community collaborative to accomplish the goals of Section 539.002; (2) how entities in the county may leverage funding from private sources to accomplish the goals of Section 539.002 through the formation or expansion of a community collaborative; and (3) how the formation or expansion of a community collaborative could establish or support resources or services to help local law enforcement agencies to divert persons who have been arrested to appropriate mental health care or substance abuse treatment. (b) The governing body of a county in which an entity that received a grant under Section 539.002 before September 1, 2017, is located is not required to develop a plan under Subsection (a). (c) Two or more counties, each with a population of less than 100,000, may form a joint plan under Subsection (a). ARTICLE 3. BAIL, PRETRIAL RELEASE, AND COUNTY JAIL STANDARDS SECTION 3.01. The heading to Article 17.032, Code of Criminal Procedure, is amended to read as follows: Art. 17.032. RELEASE ON PERSONAL BOND OF CERTAIN [MENTALLY ILL] DEFENDANTS WITH MENTAL ILLNESS OR INTELLECTUAL DISABILITY. SECTION 3.02. Articles 17.032(b) and (c), Code of Criminal Procedure, are amended to read as follows: (b) A magistrate shall release a defendant on personal bond unless good cause is shown otherwise if the: (1) defendant is not charged with and has not been previously convicted of a violent offense; (2) defendant is examined by the local mental health or intellectual and developmental disability [mental retardation] authority or another mental health expert under Article 16.22 [of this code]; (3) applicable expert, in a written assessment submitted to the magistrate under Article 16.22: (A) concludes that the defendant has a mental illness or is a person with an intellectual disability [mental retardation] and is nonetheless competent to stand trial; and (B) recommends mental health treatment or intellectual disability treatment for the defendant, as applicable; and (4) magistrate determines, in consultation with the local mental health or intellectual and developmental disability [mental retardation] authority, that appropriate community-based mental health or intellectual disability [mental retardation] services for the defendant are available through the [Texas] Department of State [Mental] Health Services [and Mental Retardation] under Section 534.053, Health and Safety Code, or through another mental health or intellectual disability [mental retardation] services provider. (c) The magistrate, unless good cause is shown for not requiring treatment, shall require as a condition of release on personal bond under this article that the defendant submit to outpatient or inpatient mental health or intellectual disability [mental retardation] treatment as recommended by the local mental health or intellectual and developmental disability [mental retardation] authority if the defendant's: (1) mental illness or intellectual disability [mental retardation] is chronic in nature; or (2) ability to function independently will continue to deteriorate if the defendant is not treated. SECTION 3.03. Article 25.03, Code of Criminal Procedure, is amended to read as follows: Art. 25.03. IF ON BAIL IN FELONY. When the accused, in case of felony, is on bail at the time the indictment is presented, [it is not necessary to serve him with a copy, but] the clerk shall [on request] deliver a copy of the indictment [same] to the accused or the accused's [his] counsel[,] at the earliest possible time. SECTION 3.04. Article 25.04, Code of Criminal Procedure, is amended to read as follows: Art. 25.04. IN MISDEMEANOR. In misdemeanors, the clerk shall deliver a copy of the indictment or information to the accused or the accused's counsel at the earliest possible time before trial [it shall not be necessary before trial to furnish the accused with a copy of the indictment or information; but he or his counsel may demand a copy, which shall be given as early as possible SECTION 3.05. Section 511.009(a), Government Code, as amended by Chapters 281 (H.B. 875), 648 (H.B. 549), and 688 (H.B. 634), Acts of the 84th Legislature, Regular Session, 2015, is reenacted and amended to read as follows: (a) The commission shall: (1) adopt reasonable rules and procedures establishing minimum standards for the construction, equipment, maintenance, and operation of county jails; (2) adopt reasonable rules and procedures establishing minimum standards for the custody, care, and treatment of prisoners; (3) adopt reasonable rules establishing minimum standards for the number of jail supervisory personnel and for programs and services to meet the needs of prisoners; (4) adopt reasonable rules and procedures establishing minimum requirements for programs of rehabilitation, education, and recreation in county jails; (5) revise, amend, or change rules and procedures if necessary; (6) provide to local government officials consultation on and technical assistance for county jails; (7) review and comment on plans for the construction and major modification or renovation of county jails; (8) require that the sheriff and commissioners of each county submit to the commission, on a form prescribed by the commission, an annual report on the conditions in each county jail within their jurisdiction, including all information necessary to determine compliance with state law, commission orders, and the rules adopted under this chapter; (9) review the reports submitted under Subdivision (8) and require commission employees to inspect county jails regularly to ensure compliance with state law, commission orders, and rules and procedures adopted under this chapter; (10) adopt a classification system to assist sheriffs and judges in determining which defendants are low-risk and consequently suitable participants in a county jail work release program under Article 42.034, Code of Criminal Procedure; (11) adopt rules relating to requirements for segregation of classes of inmates and to capacities for county jails; (12) require that the chief jailer of each municipal lockup submit to the commission, on a form prescribed by the commission, an annual report of persons under 17 years of age securely detained in the lockup, including all information necessary to determine compliance with state law concerning secure confinement of children in municipal lockups; (13) at least annually determine whether each county jail is in compliance with the rules and procedures adopted under this chapter; (14) require that the sheriff and commissioners court of each county submit to the commission, on a form prescribed by the commission, an annual report of persons under 17 years of age securely detained in the county jail, including all information necessary to determine compliance with state law concerning secure confinement of children in county jails; (15) schedule announced and unannounced inspections of jails under the commission's jurisdiction using the risk assessment plan established under Section 511.0085 to guide the inspections process; (16) adopt a policy for gathering and distributing to jails under the commission's jurisdiction information regarding: (A) common issues concerning jail administration; (B) examples of successful strategies for maintaining compliance with state law and the rules, standards, and procedures of the commission; and (C) solutions to operational challenges for jails; (17) report to the Texas Correctional Office on Offenders with Medical or Mental Impairments on a jail's compliance with Article 16.22, Code of Criminal Procedure; (18) adopt reasonable rules and procedures establishing minimum requirements for jails to: (A) determine if a prisoner is pregnant; and (B) ensure that the jail's health services plan addresses medical and mental health care, including nutritional requirements, and any special housing or work assignment needs for persons who are confined in the jail and are known or determined to be pregnant; (19) provide guidelines to sheriffs regarding contracts between a sheriff and another entity for the provision of food services to or the operation of a commissary in a jail under the commission's jurisdiction, including specific provisions regarding conflicts of interest and avoiding the appearance of impropriety; [and] (20) adopt reasonable rules and procedures establishing minimum standards for prisoner visitation that provide each prisoner at a county jail with a minimum of two in-person, noncontact visitation periods per week of at least 20 minutes duration each; (21) [(20)] require the sheriff of each county to: (A) investigate and verify the veteran status of each prisoner by using data made available from the Veterans Reentry Search Service (VRSS) operated by the United States Department of Veterans Affairs or a similar service; and (B) use the data described by Paragraph (A) to assist prisoners who are veterans in applying for federal benefits or compensation for which the prisoners may be eligible under a program administered by the United States Department of Veterans Affairs; (22) [(20)] adopt reasonable rules and procedures regarding visitation of a prisoner at a county jail by a guardian, as defined by Section 1002.012, Estates Code, that: (A) allow visitation by a guardian to the same extent as the prisoner's next of kin, including placing the guardian on the prisoner's approved visitors list on the guardian's request and providing the guardian access to the prisoner during a facility's standard visitation hours if the prisoner is otherwise eligible to receive visitors; and (B) require the guardian to provide the sheriff with letters of guardianship issued as provided by Section 1106.001, Estates Code, before being allowed to visit the prisoner; and (23) adopt reasonable rules and procedures to ensure the safety of prisoners, including rules and procedures that require a county jail to: (A) give prisoners the ability to access a mental health professional at the jail through a telemental health service 24 hours a day; (B) give prisoners the ability to access a health professional at the jail or through a telehealth service 24 hours a day or, if a health professional is unavailable at the jail or through a telehealth service, provide for a prisoner to be transported to access a health professional; and (C) if funding is available under Section 511.019, install automated electronic sensors or cameras to ensure accurate and timely in-person checks of cells or groups of cells confining at-risk individuals. SECTION 3.06. Section 511.009, Government Code, is amended by adding Subsection (d) to read as follows: (d) The commission shall adopt reasonable rules and procedures establishing minimum standards regarding the continuity of prescription medications for the care and treatment of prisoners. The rules and procedures shall require that a qualified medical professional shall review as soon as possible any prescription medication a prisoner is taking when the prisoner is taken into custody. SECTION 3.07. Chapter 511, Government Code, is amended by adding Sections 511.019, 511.020, and 511.021 to read as follows: Sec. 511.019. PRISONER SAFETY FUND. (a) The prisoner safety fund is a dedicated account in the general revenue fund. (b) The prisoner safety fund consists of: (1) appropriations of money to the fund by the legislature; and (2) gifts, grants, including grants from the federal government, and other donations received for the fund. (c) Money in the fund may be appropriated only to the commission to pay for capital improvements that are required under Section 511.009(a)(23). (d) The commission by rule may establish a grant program to provide grants to counties to fund capital improvements described by Subsection (c). The commission may only provide a grant to a county for capital improvements to a county jail with a capacity of not more than 96 prisoners. Sec. 511.020. SERIOUS INCIDENTS REPORT. (a) On or before the fifth day of each month, the sheriff of each county shall report to the commission regarding the occurrence during the preceding month of any of the following incidents involving a prisoner in the county jail: (1) a suicide; (2) an attempted suicide; (3) a death; (4) a serious bodily injury, as that term is defined by Section 1.07, Penal Code; (5) an assault; (6) an escape; (7) a sexual assault; and (8) any use of force resulting in bodily injury, as that term is defined by Section 1.07, Penal Code. (b) The commission shall prescribe a form for the report required by Subsection (a). (c) The information required to be reported under Subsection (a)(8) may not include the name or other identifying information of a county jailer or jail employee. (d) The information reported under Subsection (a) is public information subject to an open records request under Chapter 552. Sec. 511.021. INDEPENDENT INVESTIGATION OF DEATH OCCURRING IN COUNTY JAIL. (a) On the death of a prisoner in a county jail, the commission shall appoint a law enforcement agency, other than the local law enforcement agency that operates the county jail, to investigate the death as soon as possible. (b) The commission shall adopt any rules necessary relating to the appointment of a law enforcement agency under Subsection (a), including rules relating to cooperation between law enforcement agencies and to procedures for handling evidence. SECTION 3.08. The changes in law made by this article to Article 17.032, Code of Criminal Procedure, apply only to a personal bond that is executed on or after the effective date of this Act. A personal bond executed before the effective date of executed, and the former law is continued in effect for that purpose. SECTION 3.09. Not later than January 1, 2018, the Commission on Jail Standards shall: (1) adopt the rules and procedures required by Section 511.009(d), Government Code, as added by this article, and the rules required by Section 511.021(b), Government Code, as added by this article; and (2) prescribe the form required by Section 511.020(b), Government Code, as added by this article. SECTION 3.10. Not later than September 1, 2018, the Commission on Jail Standards shall adopt the rules and procedures required by Section 511.009(a)(23), Government Code, as added by this article. On and after September 1, 2020, a county jail shall comply with any rule or procedure adopted by the Commission on Jail Standards under that subdivision. SECTION 3.11. To the extent of any conflict, this Act prevails over another Act of the 85th Legislature, Regular Session, 2017, relating to nonsubstantive additions to and corrections in enacted codes. ARTICLE 4. PEACE OFFICER AND COUNTY JAILER TRAINING SECTION 4.01. Chapter 511, Government Code, is amended by adding Section 511.00905 to read as follows: Sec. 511.00905. JAIL ADMINISTRATOR POSITION; EXAMINATION REQUIRED. (a) The Texas Commission on Law Enforcement shall develop and the commission shall approve an examination for a person assigned to the jail administrator position overseeing a county jail. (b) The commission shall adopt rules requiring a person, other than a sheriff, assigned to the jail administrator position overseeing a county jail to pass the examination not later than the 180th day after the date the person is assigned to that position. The rules must provide that a person who fails the examination may be immediately removed from the position and may not be reinstated until the person passes the examination. (c) The sheriff of a county shall perform the duties of the jail administrator position at any time there is not a person available who satisfies the examination requirements of this section. (d) A person other than a sheriff may not serve in the jail administrator position of a county jail unless the person satisfies the examination requirement of this section. SECTION 4.02. Section 1701.253, Occupations Code, is amended by amending Subsection (j) and adding Subsection (n) to read as follows: commission shall require an officer to complete a 40-hour statewide education and training program on de-escalation and crisis intervention techniques to facilitate interaction with persons with mental impairments. An officer shall complete the program not later than the second anniversary of the date the officer is licensed under this chapter or the date the officer applies for an intermediate proficiency certificate, whichever date is earlier. An officer may not satisfy the requirements of this subsection [section] or Section 1701.402(g) by taking an online course on de-escalation and crisis intervention techniques to facilitate interaction with persons with mental impairments. (n) As part of the minimum curriculum requirements, the commission shall require an officer to complete a statewide education and training program on de-escalation techniques to facilitate interaction with members of the public, including techniques for limiting the use of force resulting in bodily injury. SECTION 4.03. Section 1701.310(a), Occupations Code, is amended to read as follows: (a) Except as provided by Subsection (e), a person may not be appointed as a county jailer, except on a temporary basis, unless the person has satisfactorily completed a preparatory training program, as required by the commission, in the operation of a county jail at a school operated or licensed by the commission. The training program must consist of at least eight hours of mental health training approved by the commission and the Commission on Jail Standards. SECTION 4.04. Section 1701.352(b), Occupations Code, is amended to read as follows: (b) The commission shall require a state, county, special district, or municipal agency that appoints or employs peace officers to provide each peace officer with a training program at least once every 48 months that is approved by the commission and consists of: (1) topics selected by the agency; and (2) for an officer holding only a basic proficiency certificate, not more than 20 hours of education and training that contain curricula incorporating the learning objectives developed by the commission regarding: (A) civil rights, racial sensitivity, and cultural diversity; (B) de-escalation and crisis intervention techniques to facilitate interaction with persons with mental impairments; [and] (C) de-escalation techniques to facilitate interaction with members of the public, including techniques for limiting the use of force resulting in bodily injury; and (D) unless determined by the agency head to be inconsistent with the officer's assigned duties: (i) the recognition and documentation of cases that involve child abuse or neglect, family violence, and sexual assault; and (ii) issues concerning sex offender characteristics. SECTION 4.05. Section 1701.402, Occupations Code, is amended by adding Subsection (n) to read as follows: (n) As a requirement for an intermediate proficiency certificate or an advanced proficiency certificate, an officer must complete the education and training program regarding de-escalation techniques to facilitate interaction with members of the public established by the commission under Section 1701.253(n). SECTION 4.06. Not later than March 1, 2018, the Texas Commission on Law Enforcement shall develop and the Commission on Jail Standards shall approve the examination required by Section 511.00905, Government Code, as added by this article. SECTION 4.07. (a) Not later than March 1, 2018, the Texas Commission on Law Enforcement shall establish or modify training programs as necessary to comply with Section 1701.253, Occupations Code, as amended by this article. (b) The minimum curriculum requirements under Section 1701.253(j), Occupations Code, as amended by this article, apply only to a peace officer who first begins to satisfy those requirements on or after April 1, 2018. SECTION 4.08. (a) Section 1701.310, Occupations Code, as amended by this article, takes effect January 1, 2018. (b) A person in the position of county jailer on September 1, 2017, must comply with Section 1701.310(a), Occupations Code, as amended by this article, not later than August 31, 2021. ARTICLE 5. MOTOR VEHICLE STOPS, RACIAL PROFILING, AND ISSUANCE OF CITATIONS SECTION 5.01. Article 2.132, Code of Criminal Procedure, is amended by amending Subsections (b) and (d) and adding Subsection (h) to read as follows: (b) Each law enforcement agency in this state shall adopt a detailed written policy on racial profiling. The policy must: (1) clearly define acts constituting racial profiling; (2) strictly prohibit peace officers employed by the agency from engaging in racial profiling; (3) implement a process by which an individual may file a complaint with the agency if the individual believes that a peace officer employed by the agency has engaged in racial profiling with respect to the individual; (4) provide public education relating to the agency's compliment and complaint process, including providing the telephone number, mailing address, and e-mail address to make a compliment or complaint with respect to each ticket, citation, or warning issued by a peace officer; (5) require appropriate corrective action to be taken against a peace officer employed by the agency who, after an investigation, is shown to have engaged in racial profiling in violation of the agency's policy adopted under this article; (6) require collection of information relating to motor vehicle stops in which a ticket, citation, or warning is issued and to arrests made as a result of those stops, including information relating to: (A) the race or ethnicity of the individual detained; (B) whether a search was conducted and, if so, whether the individual detained consented to the search; [and] (C) whether the peace officer knew the race or ethnicity of the individual detained before detaining that individual; (D) whether the peace officer used physical force that resulted in bodily injury, as that term is defined by Section 1.07, Penal Code, during the stop; (E) the location of the stop; and (F) the reason for the stop; and (7) require the chief administrator of the agency, regardless of whether the administrator is elected, employed, or appointed, to submit an annual report of the information collected under Subdivision (6) to: (A) the Texas Commission on Law Enforcement; and (B) the governing body of each county or municipality served by the agency, if the agency is an agency of a county, municipality, or other political subdivision of the state. (d) On adoption of a policy under Subsection (b), a law enforcement agency shall examine the feasibility of installing video camera and transmitter-activated equipment in each agency law enforcement motor vehicle regularly used to make motor vehicle stops and transmitter-activated equipment in each agency law enforcement motorcycle regularly used to make motor vehicle stops. The agency also shall examine the feasibility of equipping each peace officer who regularly detains or stops motor vehicles with a body worn camera, as that term is defined by Section 1701.651, Occupations Code. If a law enforcement agency installs video or audio equipment or equips peace officers with body worn cameras as provided by this subsection, the policy adopted by the agency under Subsection (b) must include standards for reviewing video and audio documentation. (h) A law enforcement agency shall review the data collected under Subsection (b)(6) to identify any improvements the agency could make in its practices and policies regarding motor vehicle stops. SECTION 5.02. Article 2.133, Code of Criminal Procedure, is amended by amending Subsection (b) and adding Subsection (c) to read as follows: (b) A peace officer who stops a motor vehicle for an alleged violation of a law or ordinance shall report to the law enforcement agency that employs the officer information relating to the stop, including: (1) a physical description of any person operating the motor vehicle who is detained as a result of the stop, including: (A) the person's gender; and (B) the person's race or ethnicity, as stated by the person or, if the person does not state the person's race or ethnicity, as determined by the officer to the best of the officer's ability; (2) the initial reason for the stop; (3) whether the officer conducted a search as a result of the stop and, if so, whether the person detained consented to the search; (4) whether any contraband or other evidence was discovered in the course of the search and a description of the contraband or evidence; (5) the reason for the search, including whether: (A) any contraband or other evidence was in plain view; (B) any probable cause or reasonable suspicion existed to perform the search; or (C) the search was performed as a result of the towing of the motor vehicle or the arrest of any person in the motor vehicle; (6) whether the officer made an arrest as a result of the stop or the search, including a statement of whether the arrest was based on a violation of the Penal Code, a violation of a traffic law or ordinance, or an outstanding warrant and a statement of the offense charged; (7) the street address or approximate location of the stop; [and] (8) whether the officer issued a verbal or written warning or a ticket or citation as a result of the stop; and (9) whether the officer used physical force that resulted in bodily injury, as that term is defined by Section 1.07, Penal Code, during the stop. (c) The chief administrator of a law enforcement agency, regardless of whether the administrator is elected, employed, or appointed, is responsible for auditing reports under Subsection (b) to ensure that the race or ethnicity of the person operating the motor vehicle is being reported. SECTION 5.03. Article 2.134(c), Code of Criminal Procedure, is amended to read as follows: (c) A report required under Subsection (b) must be submitted by the chief administrator of the law enforcement agency, regardless of whether the administrator is elected, employed, or appointed, and must include: (1) a comparative analysis of the information compiled under Article 2.133 to: (A) evaluate and compare the number of motor vehicle stops, within the applicable jurisdiction, of persons who are recognized as racial or ethnic minorities and persons who are not recognized as racial or ethnic minorities; [and] (B) examine the disposition of motor vehicle stops made by officers employed by the agency, categorized according to the race or ethnicity of the affected persons, as appropriate, including any searches resulting from stops within the applicable jurisdiction; and (C) evaluate and compare the number of searches resulting from motor vehicle stops within the applicable jurisdiction and whether contraband or other evidence was discovered in the course of those searches; and (2) information relating to each complaint filed with the agency alleging that a peace officer employed by the agency has engaged in racial profiling. SECTION 5.04. Article 2.137, Code of Criminal Procedure, is amended to read as follows: Art. 2.137. PROVISION OF FUNDING OR EQUIPMENT. (a) The Department of Public Safety shall adopt rules for providing funds or video and audio equipment to law enforcement agencies for the purpose of installing video and audio equipment in law enforcement motor vehicles and motorcycles or equipping peace officers with body worn cameras [as described by Article 2.135(a)(1)(A)], including specifying criteria to prioritize funding or equipment provided to law enforcement agencies. The criteria may include consideration of tax effort, financial hardship, available revenue, and budget surpluses. The criteria must give priority to: (1) law enforcement agencies that employ peace officers whose primary duty is traffic enforcement; (2) smaller jurisdictions; and (3) municipal and county law enforcement agencies. (b) The Department of Public Safety shall collaborate with an institution of higher education to identify law enforcement agencies that need funds or video and audio equipment for the purpose of installing video and audio equipment in law enforcement motor vehicles and motorcycles or equipping peace officers with body worn cameras [as described by Article 2.135(a)(1)(A)]. The collaboration may include the use of a survey to assist in developing criteria to prioritize funding or equipment provided to law enforcement agencies. (c) To receive funds or video and audio equipment from the state for the purpose of installing video and audio equipment in law enforcement motor vehicles and motorcycles or equipping peace officers with body worn cameras [as described by Article 2.135(a)(1)(A)], the governing body of a county or municipality, in conjunction with the law enforcement agency serving the county or municipality, shall certify to the Department of Public Safety that the law enforcement agency needs funds or video and audio equipment for that purpose. (d) On receipt of funds or video and audio equipment from the state for the purpose of installing video and audio equipment in law enforcement motor vehicles and motorcycles or equipping peace officers with body worn cameras [as described by Article 2.135(a)(1)(A)], the governing body of a county or municipality, in conjunction with the law enforcement agency serving the county or municipality, shall certify to the Department of Public Safety that the law enforcement agency has taken the necessary actions to use and is using [installed] video and audio equipment and body worn cameras for those purposes [as described by Article 2.135(a)(1)(A) and is using the equipment as required by Article 2.135(a)(1)]. SECTION 5.05. Article 2.1385(a), Code of Criminal Procedure, is amended to read as follows: (a) If the chief administrator of a local law enforcement agency intentionally fails to submit the incident-based data as required by Article 2.134, the agency is liable to the state for a civil penalty in an [the] amount not to exceed $5,000 [of $1,000] for each violation. The attorney general may sue to collect a civil penalty under this subsection. SECTION 5.06. Article 2.135, Code of Criminal Procedure, is repealed. SECTION 5.07. Articles 2.132 and 2.134, Code of Criminal Procedure, as amended by this article, apply only to a report covering a calendar year beginning on or after January 1, 2018. SECTION 5.08. Not later than September 1, 2018, the Texas Commission on Law Enforcement shall: (1) evaluate and change the guidelines for compiling and reporting information required under Article 2.134, Code of Criminal Procedure, as amended by this article, to enable the guidelines to better withstand academic scrutiny; and (2) make accessible online: (A) a downloadable format of any information submitted under Article 2.134(b), Code of Criminal Procedure, that is not exempt from public disclosure under Chapter 552, Government Code; and (B) a glossary of terms relating to the information to make the information readily understandable to the public. this Act takes effect September 1, 2017. ______________________________ ______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1849 passed the Senate on May 11, 2017, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 1849 passed the House on May 20, 2017, by the following vote: Yeas 137, Nays 0, one present not voting. ARTICLE 6. EFFECTIVE DATE SECTION 6.01. Except as otherwise provided by this Act, Approved: ______________________________ Date ______________________________ Governor ______________________________ Chief Clerk of the House (II) Responding to the Law Institutional Policy on Racial Profiling BIASED POLICING OR ENFORCEMENT 100.03 Effective Date: 09/26/03 Revised: 09/09/08; 12/4/12; 9/1/17; 10/4/17; 08/24/18 Standard: 1.2.9 I. PURPOSE AND RESPONSIBILITY: A. Purpose: To set the policy and establish the procedures to prevent biased policing or enforcement at the Keller Police Department. B. Responsibility: 1. It will be the responsibility of the Chief of Police to provide the Keller City Council an annual report containing statistical data relevant to the public contacts made in accordance with the Texas Racial Profiling Law (S.B. No. 1074). II. DEFINITIONS: A. BIASED POLICING OR ENFORCEMENT: The selection of an individual(s) for enforcement action based in whole or in part on a trait common to a group, without actionable intelligence to support consideration of that trait. This includes, but is not limited to, race, ethnic background, national origin, gender, sexual orientation/identity, religion, economic status, age, cultural group, immigration status, disability, housing status, occupation, language fluency or any other identifiable characteristics. B. RACE or ETHNICITY: Means of a particular descent, including Caucasian, African, Hispanic, Asian, or Native American descent. III. POLICY: A. It is the policy of the Keller Police Department that biased policing or enforcement by any employee is strictly prohibited. This includes law enforcement-initiated action based on an individual’s race, ethnicity, gender, sexual orientation/identity, religion, economic status, age, cultural group, national origin or any other identifiable group rather than on the individual’s behavior or on information identifying the individual as having engaged in criminal activity. Profiling in regards to traffic contacts, field contacts, searches, interviews and interrogations, asset seizures and forfeiture efforts will not be allowed. Any officer found in violation of this policy will be disciplined accordingly. IV. PROCEDURES: A. MOTOR VEHICLE and PEDESTRIAN STOPS: Standard 1.2.9 (a) 1. Officers will be diligent during their patrol and are expected to enforce the traffic laws, and stop and detain motorist or pedestrians whenever there is reasonable suspicion that they have committed, are comm itting, or are about to commit an infraction of the law. An arrest can only be made with probable cause. a. An officer should not stop a driver or pedestrian when looking for a suspect if the only commonality between the suspect and the civilian is his or her race/ethnicity or national origin. b. Officers should not pick out people to stop from among similarly situated individuals based in whole or in part of their race/ethnicity or national origin. For example, a driver speeding in a stream of traffic should not be picked out from among the traffic because of race/ethnicity or national origin. c. An officer should not stop a driver when there is no traffic violation in order to get a look inside the vehicle based on the driver’s race/ethnicity or national origin. 2. Officers must conduct themselves in a dignified and respectful manner at all times. The officers must remain courteous and professional keeping in mind the anxiety the person will feel when stopped by a police officer. Officers will remain professional and courteous even if challenged verbally from the detained individual. 3. During the stop of the motorist or pedestrian, officers shall utilize the mobile video and audio recording equipped in the car/motorcycle pursuant to General Order 401.04. 4. The detaining of motorists and pedestrians will be brief in duration and officers shall explain to the individual the reason for the detention with the objective to gain compliance and understanding. 5. If the officer decides to issue a warning, a citation or take the person into custody for a more serious offense the officer must record on the warning/ citation the race of the individual using the following codes: a. White/Caucasian (W) b. Hispanic (H) c. Asian (A) d. Native American (I) e. African (B) f. Middle Eastern (M) 6. When issuing a warning/ citation resulting from a traffic stop the officer shall record the following information on the warning/ citation: a. Search Y/N b. Consent Y/N, if Y above. c. Contraband/Evidence Found Y/N, if searched d. Reason and Probable Cause for the Search Y/N, if searched e. Arrest Made Y/N f. Physical Force Resulted in Bodily Injury Y/N g. Race/ethnicity known before stop Y/N h. Gender, street address of stop and reason for the stop. B. COMPLAINTS of BIASED POLICING: 1. Any person may file a complaint with the department if they believe law enforcement-initiated action was based on the individual’s race, ethnicity, gender, sexual orientation, religion, economic status, age, cultural group, national origin or any other identifiable group than on the individual’s behavior or on information identifying the individual as having engaged in criminal activity. 2. Any employee, including the employee who initiated the enforcement action, who is told by the citizen that they wish to file a complaint, shall inform the person that they can meet a supervisor at police headquarters or contact the supervisor on the telephone providing the telephone number to the complainant. At no time should the complainant be told to call back the next day unless they desire to do so. 3. Supervisors receiving the complaint of biased policing or enforcement shall record the name, address, telephone number and the allegation from the complainant. The individual should be advised that the complaint will be taken seriously and they will be contacted with the findings of the investigation. The supervisor will obtain any and all mobile video recordings from the mobile video recording system. The recording(s) along with the information from the complainant should be forwarded to the Chief’s office for assignment. 4. The Chief of Police shall assign the complaint to the Division Commander, Lieutenant, or the Internal Affairs investigator based on the complaint. 5. In conformance with the act on Biased Based Profiling, on the commencement of an investigation by a law enforcement agency of a complaint regarding racial profiling the agency shall promptly provide a copy of the video/audio recording to the peace officer that is the subject of the complaint on written request by the officer. 6. Should the results of the investigation show that the employee had engaged in biased based profiling in violation of this policy the Chief of Police shall take corrective action against the officer. The corrective action can range from training up to and including termination depending on the totality of the circumstances. a. If the complaint is “not sustained” the complainant may appeal the determination to the City Manager’s Office. b. The complainant also has the right to appeal the determination to the Tarrant County District Attorney’s Office. 7. This agency will comply with the public education requirement of the act by posting the complaint process on our internet web site, by having printed brochures on the complaint procedure available in our public lobby, and also available from the employees on the street. The complaint and compliment contact telephone number, mailing address, and email address will be provide on every warning/ citation. C. RETENTION of VIDEO and AUDIO TAPES: 1. The act on Biased Based Profiling requires the audio and video recording of traffic and pedestrian stops to be retained for 90 days after the date of the stop. In case of a complaint the video will be retained until the disposition of the complaint. 2. The standards and safeguards for reviewing the video and audiotapes are outlined in General Order 401.04. D. TRAINING: 1. All enforcement personnel will receive initial and annual training in biased policing issues including legal aspects, field contacts, traffic stops, searches, asset seizure and forfeiture, interview and interrogation techniques, cultural diversity, discrimination, and community support. Standard 1.2.9 (b) E. REPORTING REQUIREMENTS OF THE ACT: 1. The Chief of Police shall make a documented annual report to the City Council on the information collected relating to traffic stops in which a warning or citation is issued and to arrests resulting from those traffic stops containing the following: a. The gender and race or ethnicity of the individuals detained. b. Whether a search was conducted and, if so, whether the person consented, if contraband/evidence was found, PC for the search, and if an arrest was made. c. Whether physical force resulted in Bodily Injury to a party. d. An administrative review of agency practices, including community concerns on the issue, the number of racial profiling complaints, and any corrective measures taken. 2. The required report will not contain identifying information about the officers or the individuals detained. 3. The documented annual report will be submitted on March 1st of each year for information complied by the agency during the period beginning January 1st and ending December 31st. F. IMMIGRATION STATUS DETENTIONS: Standard 1.2.9 (c) 1. Officers are not prohibited from inquiring about immigration status during temporary detentions, but are prohibited from detaining people longer than is necessary to finish the purpose of the detention and that purpose cannot be solely to make an immigration inquiry. 2. An officer should have some articulable facts, besides race, color, religion, language, or national origin, to explain why the officer asked a person about citizenship or immigration status. 3. Warrants for a person’s arrest or removal as an alien is an administrative warrant and must not be the sole reason for an arrest. If a person is arrested for another offense and has an immigration warrant, see General Order 700.01 Detention Facility for further. 4. Officers shall not enforce immigration laws while working off-duty for religious organizations. Officers shall not enforce immigration laws against a person detained solely because he or she is a victim, a witness to a crime, or reported a crime. Public Education on Filing Compliments and Complaints Informing the Public on the Process of Filing a Compliment or Complaint with the Keller Police Department The Texas Racial Profiling Law requires that police agencies provide information to the public regarding the manner in which to file a compliment or racial profiling complaint. In an effort to comply with this particular component, the Keller Police Department launched an educational campaign aimed at informing the public on issues relevant to the racial profiling complaint process. The police department made available, in the lobby area and on its web site, information relevant to filing a compliment and complaint on a racial profiling violation by a Keller Police officer. In addition, each time an officer issues a citation, ticket or warning, information on how to file a compliment or complaint is given to the individual cited. This information is in the form of a web address (including in the document issued to the citizen), which has instructions and details specifics related to the compliment or complaint processes. It is believed that through these efforts, the community has been properly informed of the new policies and the complaint processes relevant to racial profiling. Racial Profiling Training Racial Profiling Training All Keller Police officers have been instructed, as specified in the Texas Racial Profiling Law, to adhere to all Texas Commission on Law Enforcement (TCOLE) training and the Law Enforcement Management Institute of Texas (LEMIT) requirements. To date, all sworn officers of the Keller Police Department have completed the TCOLE basic training on racial profiling. The main outline used to train the officers of Keller has been included in this report. It is important to recognize that the Chief of the Keller Police Department has also met the training requirements, as specified by the Texas Racial Profiling Law, in the completion of the LEMIT program on racial profiling. The satisfactory completion of the racial profiling training by the sworn personnel of the Keller Police Department fulfills the training requirement as specified in the Education Code (96.641) of the Texas Racial Profiling Law. Racial Profiling Course Number 3256 Texas Commission on Law Enforcement September 2001 Racial Profiling 3256 Instructor's Note: You may wish to teach this course in conjunction with Asset Forfeiture 3255 because of the related subject matter and applicability of the courses. If this course is taught in conjunction with Asset Forfeiture, you may report it under Combined Profiling and Forfeiture 3257 to reduce data entry. Abstract This instructor guide is designed to meet the educational requirement for racial profiling established by legislative mandate: 77R-SB1074. Target Population: Licensed law enforcement personnel in Texas Prerequisites: Experience as a law enforcement officer Length of Course: A suggested instructional time of 4 hours Material Requirements: Overhead projector, chalkboard and/or flip charts, video tape player, handouts, practical exercises, and demonstrations Instructor Qualifications: Instructors should be very knowledgeable about traffic stop procedures and law enforcement issues Evaluation Process and Procedures An examination should be given. The instructor may decide upon the nature and content of the examination. It must, however, sufficiently demonstrate the mastery of the subject content by the student. Reference Materials Reference materials are located at the end of the course. An electronic copy of this instructor guide may be downloaded from our web site at http://www.tcleose.state.tx.us. Racial Profiling 3256 1.0 RACIAL PROFILING AND THE LAW 1.1 UNIT GOAL: The student will be able to identify the legal aspects of racial profiling. 1.1.1 LEARNING OBJECTIVE: The student will be able to identify the legislative requirements placed upon peace officers and law enforcement agencies regarding racial profiling. Racial Profiling Requirements: Racial profiling CCP 3.05 Racial profiling prohibited CCP 2.131 Law enforcement policy on racial profiling CCP 2.132 Reports required for traffic and pedestrian stops CCP 2.133 Liability CCP 2.136 Racial profiling education for police chiefs Education Code 96.641 Training program Occupations Code 1701.253 Training required for intermediate certificate Occupations Code 1701.402 Definition of "race or ethnicity" for form Transportation Code 543.202 A. Written departmental policies 1. Definition of what constitutes racial profiling 2. Prohibition of racial profiling 3. Complaint process 4. Public education 5. Corrective action 6. Collection of traffic-stop statistics 7. Annual reports B. Not prima facie evidence C. Feasibility of use of video equipment D. Data does not identify officer E. Copy of complaint-related video evidence to officer in question F. Vehicle stop report 1. Physical description of detainees: gender, race or ethnicity 2. Alleged violation 3. Consent to search 4. Contraband 5. Facts supporting probable cause 6. Arrest 7. Warning or citation issued G. Compilation and analysis of data H. Exemption from reporting – audio/video equipment I. Officer non-liability J. Funding K. Required training in racial profiling 1. Police chiefs 2. All holders of intermediate certificates and/or two-year-old licenses as of 09/01/2001 (training to be completed no later than 09/01/2003) – see legislation 77R- SB1074 1.1.2 LEARNING OBJECTIVE: The student will become familiar with Supreme Court decisions and other court decisions involving appropriate actions in traffic stops. A. Whren v. United States, 517 U.S. 806, 116 S.Ct. 1769 (1996) 1. Motor vehicle search exemption 2. Traffic violation acceptable as pretext for further investigation 3. Selective enforcement can be challenged B. Terry v. Ohio, 392 U.S. 1, 88 S.Ct. 1868 (1968) 1. Stop & Frisk doctrine 2. Stopping and briefly detaining a person 3. Frisk and pat down C. Other cases 1. Pennsylvania v. Mimms, 434 U.S. 106, 98 S.Ct. 330 (1977) 2. Maryland v. Wilson, 117 S.Ct. 882 (1997) 3. Graham v. State, 119 MdApp 444, 705 A.2d 82 (1998) 4. Pryor v. State, 122 Md.App. 671 (1997) cert. denied 352 Md. 312, 721 A.2d 990 (1998) 5. Ferris v. State, 355 Md. 356, 735 A.2d 491 (1999) 6. New York v. Belton, 453 U.S. 454 (1981) 2.0 RACIAL PROFILING AND THE COMMUNITY 2.1 UNIT GOAL: The student will be able to identify logical and social arguments against racial profiling. 2.1.1 LEARNING OBJECTIVE: The student will be able to identify logical and social arguments against racial profiling. A. There are appropriate reasons for unusual traffic stops (suspicious behavior, the officer's intuition, MOs, etc.), but police work must stop short of cultural stereotyping and racism B. Racial profiling would result in criminal arrests, but only because it would target all members of a race randomly – the minor benefits would be far outweighed by the distrust and anger towards law enforcement by minorities and the public as a whole C. Racial profiling is self-fulfilling bad logic: if you believed that minorities committed more crimes, then you might look for more minority criminals, and find them in disproportionate numbers D. Inappropriate traffic stops generate suspicion and antagonism towards officers and make future stops more volatile – a racially-based stop today can throw suspicion on tomorrow's legitimate stop E. By focusing on race, you would not only be harassing innocent citizens, but overlooking criminals of all races and backgrounds – it is a waste of law enforcement resources 3.0 RACIAL PROFILING VERSUS REASONABLE SUSPICION 3.1 UNIT GOAL: The student will be able to identify the elements of both inappropriate and appropriate traffic stops. 3.1.1 LEARNING OBJECTIVE: The student will be able to identify elements of a racially motivated traffic stop. A. Most race-based complaints come from vehicle stops, often since race is used as an inappropriate substitute for drug courier profile elements B. "DWB" – "Driving While Black" – a nickname for the public perception that a Black person may be stopped solely because of their race (especially with the suspicion that they are a drug courier), often extended to other minority groups or activities as well ("Driving While Brown," "Flying While Black," etc.) C. A typical traffic stop resulting from racial profiling 1. The vehicle is stopped on the basis of a minor or contrived traffic violation which is used as a pretext for closer inspection of the vehicle, driver, and passengers 2. The driver and passengers are questioned about things that do not relate to the traffic violation 3. The driver and passengers are ordered out of the vehicle 4. The officers visually check all observable parts of the vehicle 5. The officers proceed on the assumption that drug courier work is involved by detaining the driver and passengers by the roadside 6. The driver is asked to consent to a vehicle search – if the driver refuses, the officers use other procedures (waiting on a canine unit, criminal record checks, license-plate checks, etc.), and intimidate the driver (with the threat of detaining him/her, obtaining a warrant, etc.) 3.1.2 LEARNING OBJECTIVE: The student will be able to identify elements of a traffic stop which would constitute reasonable suspicion of drug courier activity. A. Drug courier profile (adapted from a profile developed by the DEA) 1. Driver is nervous or anxious beyond the ordinary anxiety and cultural communication styles 2. Signs of long-term driving (driver is unshaven, has empty food containers, etc.) 3. Vehicle is rented 4. Driver is a young male, 20-35 5. No visible luggage, even though driver is traveling 6. Driver was over-reckless or over-cautious in driving and responding to signals 7. Use of air fresheners B. Drug courier activity indicators by themselves are usually not sufficient to justify a stop 3.1.3 LEARNING OBJECTIVE: The student will be able to identify elements of a traffic stop which could constitute reasonable suspicion of criminal activity. A. Thinking about the totality of circumstances in a vehicle stop B. Vehicle exterior 1. Non-standard repainting (esp. on a new vehicle) 2. Signs of hidden cargo (heavy weight in trunk, windows do not roll down, etc.) 3. Unusual license plate suggesting a switch (dirty plate, bugs on back plate, etc.) 4. Unusual circumstances (pulling a camper at night, kids' bikes with no kids, etc.) C. Pre-stop indicators 1. Not consistent with traffic flow 2. Driver is overly cautious, or driver/passengers repeatedly look at p olice car 3. Driver begins using a car- or cell-phone when signaled to stop 4. Unusual pull-over behavior (ignores signals, hesitates, pulls onto new street, moves objects in car, etc.) D. Vehicle interior 1. Rear seat or interior panels have been opened, there are tools or spare tire, etc. 2. Inconsistent items (anti-theft club with a rental, unexpected luggage, etc.) Resources Proactive Field Stops Training Unit – Instructor's Guide, Maryland Police and Correctional Training Commissions, 2001. (See Appendix A.) Web address for legislation 77R-SB1074: http://tlo2.tlc.state.tx.us/tlo/77r/billtext/SB01074F.htm Report on Compliments and Racial Profiling Complaints Report on Complaints The following table contains data regarding officers that have been the subject of a complaint, during the time period of 1/1/18---12/31/18, based on allegations outlining possible violations related to the Texas Racial Profiling Law. The final disposition of the case is also included. X A check above indicates that the Keller Police Department has not received any complaints, on any members of its police force, for having violated the Texas Racial Profiling Law during the time period of 1/1/18 ---- 12/31/18. Complaints Filed for Possible Violations of The Texas Racial Profiling Law Complaint No. Alleged Violation Disposition of the Case Additional Comments: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Tables Illustrating Motor Vehicle- Related Contacts Tier 2 Data Total stops: 24,317 1. Gender 1.1 Female: 10,134 1.2 Male: 14,183 2. Race or ethnicity 2.1 Black: 2,861 2.2 Asian/Pacific Islander: 1,014 2.3 White: 17,910 2.4 Hispanic/Latino: 2,275 2.5 Alaska Native/American Indian: 257 3. Was race or ethnicity known prior to stop? 3.1 Yes: 722 3.2 No: 23,595 4. Reason for stop? 4.1 Violation of law: 349 4.2 Pre-existing knowledge: 157 4.3 Moving traffic violation: 20,281 4.4 Vehicle traffic violation: 3,529 5. Street address or approximate location of the stop 5.1 City Street: 12,511 5.2 US highway: 5,466 5.3 County road: 1,241 5.4 State Highway: 4,960 5.5 Private property or other: 138 6. Was a search conducted? 6.1 Yes: 313 6.2 No: 24,004 7. Reason for Search? 7.1 Consent: 26 7.2 Contraband in plain view: 12 7.3 Probable cause: 188 7.4 Inventory: 14 7.5 Incident to arrest: 73 8. Was Contraband discovered? 8.1 Yes: 202 8.2 No: 111 9. Description of contraband 9.1 Drugs: 143 9.2 Currency: 0 9.3 Weapons: 2 9.4 Alcohol: 25 9.5 Stolen property: 3 9.6 Other: 40 10. Result of the stop 10.1 Verbal warning: 0 10.2 Written warning: 14,496 10.3 Citation: 9,541 10.4 Written Warning and Arrest: 62 10.5 Citation and Arrest: 118 10.6 Arrest: 230 11. Arrest based on 11.1 Violation of Penal Code: 140 11.2 Violation of Traffic Law: 10 11.3 Violation of City Ordinance: 1 11.4 Outstanding Warrant: 29 12. Was physical force resulting in bodily injury used during stop? 12.1 Yes: 7 12.2 No: 24,310 Table 1. (Motor Vehicle Contacts Including Tickets, Citations and Warnings) (1/1/18-12/31/18) Race/Ethnicity All Motor Vehicle Contacts* Tickets or Citations Verbal Warnings Written Warnings N % N % N % N % White 18,391 76 8,312 67 0 0 10,772 74 Black 2,281 9 1,654 13 0 0 1,682 11 Hispanic or Latino 2,341 10 1,801 15 0 0 1,393 10 Asian or Pacific Islander 1,042 4 506 4 0 0 637 4 Alaska Native or American Indian 262 1 114 .9 0 0 158 1 Middle Eastern** 0 0 0 0 0 0 0 0 Other** 0 0 0 0 0 0 0 0 Total 24,317 100 12,387 100 0 100 14,642 100 *Includes stops for alleged violation of a law or ordinance, tickets/citations, and verbal and written warnings “N” represents “number” of all motor vehicle-related contacts **Race/Ethnicity is defined by HB 3051. **Not Required Racial/Ethnic Components 0 10 20 30 40 50 60 70 80 Motor Vehicle Contacts Tickets or Citations Verbal Warnings Written Warnings Tier 2 Data (Motor Vehicle Contacts in Percentages) White Black Hispanic Asian Alaska Native Middle Eastern Other Table 2. Motor Vehicle-Contacts and Fair Roads Standard Comparison Comparison of motor vehicle-related contacts with households in DFW that have vehicle access (in percentages). (1/1/18—12/31/18) Race/Ethnicity* Contacts (in percentages) Households with vehicle access (in percentages) White 76 60 Black 9 14 Hispanic or Latino 10 19 Asian or Pacific Islander 4 5 Alaska Native or American Indian 1 N/A Middle Eastern** 0 N/A Other** 0 N/A Total 100 98** “N” represents “number” of all motor vehicle-related contacts **Race/Ethnicity is defined by HB 3051. **Not Required Racial/Ethnic Components 0 10 20 30 40 50 60 70 80 White Black Hispanic Asian Alaska Native Middle Eastern Other Motor Vehicle Contacts and Households (Percentages) 2018 Contacts Households Table 3. (Motor Vehicle Searches and Arrests) (1/1/18-12/31/18) Race/Ethnicity* Searches Consensual Searches Custody Arrests N % N % N % White 212 64 18 67 177 77 Black 72 22 5 19 19 8 Hispanic or Latino 37 11 4 14 21 9 Asian or Pacific Islander 7 2 0 0 12 5 Alaska Native or American Indian 2 .6 0 0 1 .4 Middle Eastern** 0 0 0 0 0 0 Other** 0 0 0 0 0 0 Total 330 100 27 100 230 100 “N” represents “number” of all motor vehicle-related contacts **Race/Ethnicity is defined by HB 3051. **Not Required Racial/Ethnic Components 0 50 100 150 200 250 Searches Consent Arrests Tier 2 Data (Frequency of Searches and Arrests) White Black Hispanic Asian Alaska Native Middle Eastern Other Table 4. Total Number of Instances where Officers Knew/did not Know Race/Ethnicity of Individuals Before Being Detained (1/1/18-12/31/18) Total Number of Instances where Officers Knew Race and Ethnicity of Individuals Before Being Detained Total Number of Instances where Officers Did Not Know the Race and Ethnicity of Individuals Before Being Detained 765 23,890 0 5000 10000 15000 20000 25000 30000 Race/Ethnicity Known Race/Ethnicity (Frequencies) Known Not Known Table 5. Instances Where Peace Officers Used Physical Force that Resulted in Bodily Injury (1/1/18-12/31/18) Instance Where Peace Officer Used Physical Force that Resulted in Bodily Injury Location of the Stop Reason for the Stop Resisting Arrest 1600 SH 114 E/B Vehicle Traffic Violation Resisting Arrest 3800 SH 170 E/B Moving Traffic Violation Resisting Arrest 1500 Heather Lane Moving Traffic Violation Resisting Arrest 100 Rufe Snow Minor Accident Table 6. Search Data (1/1/18-12/31/18) Race/Ethnicity* Searches Contraband/ Evidence Found Contraband/Evidence Not Found Arrests N % N % N % N % White 212 64 127 60 85 72 177 77 Black 72 22 53 25 19 16 19 8 Hispanic or Latino 37 11 25 12 12 10 21 9 Asian or Pacific Islander 7 2 5 2 2 2 12 5 Alaska Native or American Indian 2 .6 2 .9 0 0 1 .4 Middle Eastern* 0 0 0 0 0 0 0 0 Other** 0 0 0 0 0 0 0 0 Total 330 100 212 100 118 100 230 100 “N” represents “number” of all motor vehicle-related contacts **Race/Ethnicity is defined by HB 3051. **Not Required Racial/Ethnic Components Table 7. Report on Audits The following table contains data regarding the number and outcome of required data audits completed during the period 1/1/18---12/31/18. Data Audits on Racial Profiling Data (1/1/18—12/31/18) Number of Data Audits Completed Date of Completion Outcome of Audit 3 2018 Data reviewed is valid and reliable Additional Comments: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Analysis and Interpretation of Data Analysis In order to understand the analysis provided in this report, it is imperative that the evolution of the Texas Racial Profiling Law and its requirements, is discussed. That is, in 2001, the Texas legislature passed Senate Bill 1074 which became the Texas Racial Profiling Law. Thus, the law came into effect on January 1, 2002 and required all police departments in Texas, to collect traffic-related data and report this information to their local governing authority by March 1st of each year. In 2009, the racial profiling law was modified to include the collection and reporting of all motor vehicle related contacts where a citation was issued or arrest made. In addition, the modification to the law further requires that all police officers indicate whether or not they knew the race or ethnicity of the individual before detaining them. Further, it was required that agencies report motor vehicle related data to their local governing authority and to the Texas Commission on Law Enforcement (TCOLE) by March 1st of each year. The purpose in collecting and presenting this information is to determine if police officers in a particular municipality are engaging in the practice of racially profiling minority motorists. The Texas Racial Profiling Law also requires police departments to interpret motor vehicle-related data. Even though most researchers would probably agree with the fact that it is within the confines of good practice for police departments to be accountable to the citizenry while carrying a transparent image before the community, it is very difficult to determine if individual police officers are engaging in racial profiling, from a review and analysis of aggregate/institutional data. In other words, it is challenging for a reputable researcher to identify specific “individual” racist behavior from aggregate-level “institutional” data on traffic or motor vehicle-related contacts. As stated previously, in 2009, the Texas Legislature passed House Bill 3389, which modified the Racial Profiling Law by adding new requirements; this took effect on January 1st, 2010. These changes included, but are were not limited to, the re-definition of a contact to include motor vehicles where a citation was issued or an arrest made. In addition, it required police officers to indicate if they knew the race or ethnicity of the individual before detaining them. Also, the 2009 law required adding "middle eastern" to the racial and ethnic category and submitting the annual data report to TCOLE before March 1st of each year. In 2017, the Texas Legislators passed H.B. 3051 which removed the Middle Eastern data requirement but standardized the racial and ethnic categories relevant to the individuals that came in contact with the police. In addition, the Sandra Bland Act (S.B. 1849) was passed and became law. Thus, the most significant legislative act in Texas history regarding data requirements on law enforcement contacts, became law and took effect on January 1, 2018. The Sandra Bland Act not only requires the extensive collection of data relevant to police motor vehicle contacts, but it also mandates for the data to be analyzed while addressing the following: 1. A comparative analysis of the information compiled (under Article 2.133): a. Evaluate and compare the number of motor vehicle stops, within the applicable jurisdiction, of persons who are recognized as racial or ethnic minorities and persons who are not recognized as racial or ethnic minorities; b. Examine the disposition of motor vehicle stops made by officers employed by the agency, categorized according to the race or ethnicity of the affected persons, as appropriate, including any searches resulting from stops within the applicable jurisdiction; c. Evaluate and compare the number of searches resulting from motor vehicle stops within the applicable jurisdiction and whether contraband or other evidence was discovered in the course of those searches. 2. Information related to each complaint filed with the agency alleging that a peace officer employed by the agency has engaged in racial profiling. In an effort to comply with The Texas Racial Profiling/Sandra Bland Law, the Keller Police Department commissioned the analysis of its 2018 contact data. Thus, two different types of data analyses were performed. The first of these involved a careful evaluation of the 2018 motor vehicle-related data. This particular analysis measured, as required by the law, the number and percentage of Whites, Blacks, Hispanics or Latinos, Asians and Pacific Islanders, Alaska Natives and American Indians (Middle Easterners and individuals belonging to the “other” category, as optional categories), that came in contact with the police in the course of a motor vehicle related contact, and were either issued a ticket, citation, warning were issued or an arrest was made. Also, included in this data were instances where a motor vehicle contact took place for an alleged violation of the law or ordinance. The Tier 2 data analysis included, but was not limited to, information relevant to the number and percentage of contacts by race/ethnicity, gender, reason for the stop, location of stop, searches while indicating the type of search performed, result of stop, basis of an arrest and use of physical force resulting in bodily injury, The additional data analysis performed was based on a comparison of the 2018 motor vehicle contact data with a specific baseline. When reviewing this particular analysis, it should be noted that there is disagreement, in the literature, regarding the appropriate baseline to be used when analyzing motor vehicle-related contact information. Of the baseline measures available, the Keller Police Department opted to adopt, as a baseline measure, the Fair Roads Standard. This particular baseline is based on data obtained through the U.S. Census Bureau (2010) relevant to the number of households that have access to vehicles while controlling for the race and ethnicity of the heads of households. It is clear that census data presents challenges to any effort made at establishing a fair and accurate racial profiling analysis. That is, census data contains information on all residents of a particular community, regardless of the fact they may or may not be among the driving population. Further, census data, when used as a baseline of comparison, presents the challenge that it captures information related to city residents only. Thus, excluding individuals who may have come in contact with the Keller Police Department in 2018 but live outside city limits. In some cases, the percentage of the population that comes in contact with the police but lives outside city limits represents a substantial volume of all motor vehicle-related contacts made in a given year. Since 2002, several civil rights groups in Texas expressed their desire and made recommendations to the effect that all police departments should rely, in their data analysis, on the Fair Roads Standard. This source contains census data specific to the number of “households” that have access to vehicles. Thus, proposing to compare “households” (which may have multiple residents and only a few vehicles) with “contacts” (an individual-based count). This, in essence, constitutes a comparison that may result in ecological fallacy. Despite this, the Keller Police Department accepted the recommendation to utilize this form of comparison (i.e., census data relevant to households with vehicles) in an attempt to demonstrate its “good will” and “transparency” before the community. Thus, the Fair Roads Standard data obtained and used in this study is specifically relevant to the Dallas Fort-Worth (DFW) Metroplex. Tier 2 (2018) Motor Vehicle-Related Contact Analysis When analyzing the enhanced Tier 2 data collected in 2018, it was evident that most motor vehicle-related contacts were made with males and most of the contacts were made with White drivers. This was followed by Black and Hispanic drivers. In most instances, police officers report not knowing the race or ethnicity prior to the stop. Further, they cite as the primary reason for the stop to have been a “moving traffic violation”. This was followed by “vehicle traffic violation”. In 2018, most of the contacts made took place in city streets. The Keller Police Department cites that most contacts did not result in a search. Of those searches made, most were based on probable cause. The second most significant reason for a search was “incident to arrest”. In addition, contraband was found as a result of most searches. Of the contraband found, in most instances, drugs were cited as the most frequent contraband found. The data also shows that the majority of stops resulted in written warnings. This was followed by “citations”. When an arrest was made, the most frequent reason provided was a violation of the penal code. Also, 7 of the contacts resulted in the use of physical force which caused bodily injury. Comparative Analysis The data analysis of motor vehicle contacts to the census data relevant to the number of “households” in DFW who indicated, in the 2010 census, that they had access to vehicles, produced interesting findings. Specifically, the percentage of Whites that came in contact with the police was higher than the percentage of White households in DFW that claimed, in the 2010 census, to have access to vehicles. With respect to Blacks, Hispanics and Asians, a lower percentage of contacts were detected. That is, the percentage of Black, Hispanic and Asian drivers that came in contact with the police in 2018 was lower than the percentage of Black, Hispanic and Asian households in DFW with access to vehicles. The analysis of the searches performed shows that most searches produced contraband. This is above and beyond national law enforcement trends. In addition, of those searches that produced contraband, the majority of them involved White contacts. This was followed by Blacks. Summary of Findings The most recent Texas Racial Profiling Law requires that police department perform data audits in order to validate the data being reported. Consistent with this requirement, the Keller Police Department has engaged del Carmen Consulting, LLC in order to perform these audits in a manner consistent with normative statistical practices. As shown in table 7, the audits performed have shown that the data is valid and reliable. Further, as required by law, this report also includes an analysis on the searches performed. This analysis includes information on whether contraband was found as a result of the search while controlling for race/ethnicity. The search analysis demonstrates that the police department is engaging in search practices consistent with national trends in law enforcement. While considering the findings made in this analysis, it is recommended that the Keller Police Department should continue to collect and evaluate additional information on motor vehicle contact data (i.e., reason for probable cause searches, contraband detected) which may prove to be useful when determining the nature of the contacts police officers are making with all individuals. As part of this effort, the Keller Police Department should continue to: 1) Perform an independent analysis on contact and search data in future years. 2) Commission data audits in 2019 in order to assess data integrity; that is, to ensure that the data collected is consistent with the data being reported. The comprehensive analysis of the data included in this report demonstrates that the Keller Police Department has complied with the Texas Racial Profiling Law and all of its requirements. Further, the report demonstrates that the police department has incorporated a comprehensive racial profiling policy, currently offers information to the public on how to file a compliment or complaint, commissions quarterly data audits in order to ensure validity and reliability, collects and commissions the analysis of tier 2 data, and ensures that the practice of racial profiling is not tolerated. (III) Summary Checklist Checklist The following requirements were met by the Keller Police Department in accordance with The Texas Racial Profiling Law: Implement a Racial Profiling Policy citing act or actions that constitute racial profiling. Include in the racial profiling policy, a statement indicating prohibition of any peace officer employed by the Keller Police Department from engaging in racial profiling. Implement a process by which an individual may file a complaint regarding racial profiling violations. Provide public education related to the compliment and complaint process. Implement disciplinary guidelines for officers found in violation of the Texas Racial Profiling Law. Collect, report and analyze motor vehicle data (Tier 2). Commission Data Audits and a Search Analysis. Indicate total number of officers who knew and did not know, the race/ethnicity of individuals before being detained. Produce an annual report on police contacts (Tier 2) and present this to the local governing body and TCOLE by March 1, 2019. Adopt a policy, if video/audio equipment is installed, on standards for reviewing video and audio documentation. Contact Information Contact Information For additional questions regarding the information presented in this report, please contact: Del Carmen Consulting, LLC 817.681.7840 www.texasracialprofiling.com www.delcarmenconsulting.com Disclaimer: The author of this report, Alejandro del Carmen/del Carmen Consulting, LLC, is not liable for any omissions or errors committed in the acquisition, analysis, or creation of this report. Further, Dr. del Carmen/del Carmen Consulting is not responsible for the inappropriate use and distribution of information contained in this report. Further, no liability shall be incurred as a result of any harm that may be caused to individuals and/or organizations as a result of the information contained in this report. Copyright: This report may not be altered or reproduced outside the agreed terms, in any manner whatsoever without the written permission of the author. Copyright  2019 Del Carmen Consulting, LLC DISCUSSION ITEMS a. Presentation and discussion regarding the annual Comprehensive Annual Financial Report (CAFR) presented by Weaver and Tidwell, L.L.P., for the fiscal year ended September 30, 2018. b. Presentation and discussion providing an update regarding the status of the work to date of the Westlake Public Art Competition Committee and adding another member to the Committee. c. Presentation and discussion regarding Regular Agenda Item 5 - Proposed Rezoning from R5-Country Residential. d. Standing Item: Presentation and discussion of development projects per Staff report February 2019 including an Entrada report from the Developer and projects in Planned Development PD 3-5. Town Council Item #5 – Discussion Items Page 1 of 3 Westlake Town Council TYPE OF ACTION Regular Meeting - Consent Westlake Town Council Meeting Monday, March 25, 2019 TOPIC: Presentation and Discussion of the annual Comprehensive Annual Financial Report (CAFR) presented by Weaver and Tidwell, L.L.P., for the fiscal year ended September 30, 2018. STAFF CONTACT: Debbie Piper, Finance Director Strategic Alignment Vision, Value, Mission Perspective Strategic Theme & Results Outcome Objective Fiscal Responsibility Municipal & Academic Operations Exemplary Service & Governance - We set the standard by delivering unparalleled municipal and educational services at the lowest cost. Increase Transparency, Accessibility & Communications Strategic Initiative Maintain Receipt of Various Financial Awards for both Municipal and Academic Services Time Line - Start Date: February 25, 2019 Completion Date: February 25, 2019 Funding Amount: $36,173 Status - Funded Source - Multiple Sources - see comments below Allocated to General Fund, Utility Fund and Visitors Association Fund EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) The Town’s Fiscal and Budgetary Policies along with State law require that the Town be audited annually by outside independent accountants. The result of this independent audit is the receipt of an unmodified opinion or “clean” opinion again this year. This means the auditors have found that these financial statements present fairly, in all material respects, the financial position of the Town of Westlake at September 30, 2018. Page 2 of 3 As in previous years, we have included the Texas Student Housing (TSH) audited information in our report. Because the Town Council may appoint and/or remove a director of the Texas Student Housing Board, it was determined that TSH should be considered a component unit of the Town. As in previous years, their audits have been prepared assuming they will continue as “going concerns.” The opinion states, “The discretely presented component units are in default on their bonds due to failure to meet certain bond covenants. This gives bond holders the right to accelerate and demand payment on the bonds in full. This condition raises substantial doubt about the discretely presented component units’ ability to continue as going concerns.” The footnotes clearly indicate that the debt of TSH is not a liability of the Town. The inclusion of this information in the Town’s audit will not affect any future bond ratings nor have a negative impact on the Town’s overall debt ratio for the purpose of securing additional financing in the future. This year’s audit again includes the Public Improvement District Capital Project Fund and Fiduciary Fund. The basis for including is Statement No. 6 of the Governmental Accounting Standards Board, “Accounting and Financial Reporting for Special Assessments”. Section 19 refers to Capital Improvements Financed by Special Assessment Debt for which the Government is not obligated in any manner. Below is an excerpt from the Statement: The construction phase should be reported like other capital improvements; in a capital project fund, or other appropriate fund. The source of funds in the capital project fund should be identified by a description other than bond proceeds, such as contributions. Displaying the transactions in this way recognized that the construction or acquisition is a governmental activity and results in the addition of a governmental asset but is not financed by governmental debt. On February 5, 2015, the Town Council approved issuance of $26,175,000 of Special Assessment Revenue Bonds, Series 2015 related to the District. As stated in the POS, the Public Improvement District Bonds (“The Bonds”) are special and limited obligations of the Town payable solely from the pledged revenues and other funds comprising the Trust Estate, as and to the extent provided in the indenture. The bonds do not give rise to a charge against the general credit or taxing power of the Town and are payable solely from the sources identified in the indenture. The owners of the bonds shall never have the right to demand payment thereof out of money raised or to be raised by taxation, or out of any funds of the Town other than the Trust Estate, as and to the extent provided in the indenture; and, no owner of the bonds shall have the right to demand any exercise of the Town’s taxing power to pay the principal of the bonds or the interest or redemption premium, if any, thereon. The Town shall have no legal or moral obligation to pay the bonds out of any funds of the Town other than the Trust Estate. Along with the annual budget, the Comprehensive Annual Financial Report (CAFR) is one of the most important financial activities of the Town. This report represents and reflects upon the Town’s financial operations and condition to the Town’s residents, elected officials, management personnel, financial institutions, rating agencies, and all other parties interested in the financial affairs of the Town. Page 3 of 3 Additionally, the Town began participating in the Government Finance Officer Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting program for the fiscal year 2007. This award is highly regarded as the “Good Housekeeping Seal of Approval” for governmental financial reporting. Therefore, we are pleased to announce that the Town has recently received this award for our ninth submission. This award is presented based on the required contents of the CAFR document and ensures that certain required financial disclosures are presented in the document. All governmental entities that participate in the program must include these disclosures in their CAFR. We believe the September 30, 2018 CAFR is following these disclosure requirements, and the Town will be awarded our tenth consecutive certificate. RECOMMENDATION Acceptance of the annual CAFR ATTACHMENTS Link - Comprehensive Annual Financial Report for the Fiscal Year ended September 30, 2018 Page 1 of 2 Westlake Town Council TYPE OF ACTION Workshop - Discussion Item Westlake Town Council Meeting Monday, March 25, 2019 TOPIC: Presentation and Discussion of an Update Regarding the Status of the Work to Date of the Westlake Public Art Competition Committee and Adding Another Member to this Committee. STAFF CONTACT: Tom Brymer, Deputy Town Manager Strategic Alignment Vision, Value, Mission Perspective Strategic Theme & Results Outcome Objective Vision: An oasis of nautural beuty that maintains our open spaces in balance with distinctive development, trails, and quality of life amenities amidst an ever expanding urban landscape. Citizen, Student & Stakeholder High Quality Planning, Design & Development - We are a desirable well planned, high-quality community that is distinguished by exemplary design standards. Preserve Desirability & Quality of Life Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: June 19, 2017 Completion Date: TBD Funding Amount: $20,000 estimated Status - Not Funded Source - Multiple Sources - see comments below EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) On February 27, 2017, after a lengthy process that included opportunity for public participation, the Town Council reviewed and adopted a new Westlake Public Art Plan. Following approval of that Public Art Plan, the Town Council appointed an advisory committee called the Westlake Public Art Competition Committee (WPACC or Committee) in June 2017. The purpose of the WPACC is to assist the Town in the implementation of the Town’s Public Art Plan. The Committee spent much time developing a detailed Request for Qualifications (RFQ) document Page 2 of 2 (that was approved by the Town Council). This RFQ included the site the Committee felt was the best one for this inaugural piece of Westlake public art which is the northwest corner of Dove Road and Davis Boulevard where the Town’s new fire-ems station is located. The Committee then distributed that RFQ to solicit responses from qualified artists via official art entry web sites as well as the Town’s web site. Following that step, the WPACC has been evaluating the RFQ submissions received from artists to identify RFQ artist semi-finalists. This would be to determine the best qualified 3-4 artists to consider for design of the Town’s first public art piece. Once the best qualified artist is selected following the closure of the RFQ evaluation and RFQ semi-finalist selection phase, then the next step could commence. This next step would be the actual design and negotiations for the public art piece itself. Fund raising could occur concurrently to these steps. In fact, some donations have already been received and earmarked to fund honorariums for site visits by RFQ semi-finalists. WPACC Chair Russell Tether and WPACC member Robin McCaffrey will be present at the workshop to brief the Mayor and Council on where the WPACC is at in this process as of today, next steps of that process, and to recommend adding a new WPACC member (Patricia Dellorfano, the Lead Curator for Fidelity Investments’ collection in Boston). RECOMMENDATION Recommend receiving a status report from WPACC members on the status of the implementation of the Town’s Public Art Plan, discussing that process, and the Committee’s recommendation to add Patricia Dellorfano, Lead Curator of Fidelity’s collection in Boston (note: this is on the Council’s regular agenda as a consent item). ATTACHMENTS None Page 1 of 1 Westlake Town Council TYPE OF ACTION Workshop - Discussion Item Westlake Town Council Meeting Monday, March 25, 2019 TOPIC: Presentation and discussion regarding Regular Agenda Item 5 - Proposed Rezoning from R5-Country Residential STAFF CONTACT: Ron Ruthven, Director of Planning and Development Strategic Alignment Vision, Value, Mission Perspective Strategic Theme & Results Outcome Objective Planned / Responsible Development Citizen, Student & Stakeholder High Quality Planning, Design & Development - We are a desirable well planned, high-quality community that is distinguished by exemplary design standards. Preserve Desirability & Quality of Life Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: February 11, 2019 Completion Date: March 25, 2019 Funding Amount: N/A Status - Not Funded Source - N/A EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) This item provides an opportunity for the Council to discuss regular agenda item 5, to review any presentations provided for the item and to ask questions of staff and the applicant during the Council work session. RECOMMENDATION See Item 5 of the regular agenda for additional details. ATTACHMENTS None Development SnĂƉƐŚŽƚ&ĞďƌƵĂƌǇ 201ϵ SH 114US377J T O T T IN GERRDSOLANABLVDIN D IA NCREEKDRBYRON NELSON BLVDROANOKE RDWESTLAKEPKWYDAVIS BLVDTROPHYCLUBDRD O V ERDMAIN STPARISH LNPEARSON LNSCHWABWAYSH 170DAVIS BLVDPEARSON LNUS 377US 377DOVE RDSH170ROANOKE RDDOVERDDAVIS BLVDSOLANABLVD SH 114US 377SH 114 DOVE RDMAINS T INDIANCREEKDR72514645372819573714743403836353430292523221715141311DEVELOPMENT ACTIVITIES MAP - )(%58$5< 2019CITY OF ROANOKEY OF WORTHTOWN OF TROPHY CLUBCITY OF SOUTHLAKECITY OF KELLERLegendAnnouncedConceptualUnder ConstructionExistingTown LimitsThis map if form information purposes only¯ Development Activities Status—)HEUXDU\ 201Project No. Project / Development Name Land Use Number of Lots/Units Size Development Status Percent CompleteEstimated Completion 5 Vaquero Residential 296 510 acres 264/296 lots under construction or completed 87.%N/A 11, 45, 46, 47 Charles Schwab Phase 1 Office 554,000 29 acres Phase 1 under construction % )DOO 201913 Granada Phase 1 Residential 41 84 acres 3/41 lots under construction or completed8.1%N/A Granada Phase 2 43 21/43 lots under construction or completed N/A 14 Carlyle Court Residential 8 10 acres 7/8 lots under construction or completed % N/A 15 Knolls at Solana Residential 56 62.5 acres Infrastructure improvements under construction 0% N/A 17 Quail Hollow Residential 96 188 acres /96 lots under construction .%N/A 19 Terra Bella Residential 26 55 acres 25/26 lots under construction or completed 86.54% N/A 22 Fire/EMS Station Government 1 5 acres Under construction %0DUFK201923, 72, 73 Charles Schwab Phase 2 Office 616,000 30 acres Phase 2 site work under construction -% 2021 25 Spec’s Retail 1 12,000 sf Additional square footage under construction %2019 28 Entrada Residential Residential J: 6 units I: 12 units E: 12/14 units 2,700sf-4,500sf Block J has 6/6 lots currently under construction Block I has 12/12 lots currently under construction Block E has 12/14 lots currently under construction 4.66% Varies 29,30 Entrada Retail Corner Retail / Office 4 ~50,000 s.f. Retail Corner under construction; StarbucksXQGHUFRQVWUXFWLRQ25% Fall 201934 Entrada Plaza Mayor Hospitality, Condominium, Retail 4 5 acres Site work and foundations under construction -% 2021 35, 38, 40, 43, 71 Restaurant Row / Chapel & Reception Hall / Gas Well Garage Restaurants / Entertainment 5 A: 15,422 sf B/C: 22,414 sf Under construction % 2019 51 Paigebrooke Residential 6 20 acres 4/6 lots under construction or completed 66.66% N/A Residential Subdivision Buildout—)HEUXDU\ 201Subdivision Name Plat Date Total Lots Vacant Lots Size (Acres) Development Status Percent Complete Building Permits Issued Finals Issued Aspen Lane/Shelby Estates 4/7/1981 8 0 132.6 Built-out 100% 8 8 Carlyle Court 3/7/2016 8 1 10.2 Under development % 5 Entrada 12/14/2015 322 292 85.9 Under development 30 0 Glenwyck Farms 3/13/2000 84 0 104.3 Built-out 100.00% 84 84 Granada Phase I 6/17/2013 41 84.3 Under development Granada Phase II 12/12/2016 43 21 Knolls at Solana - 56 56 62.5 8QGHUGHYHORSPHQW0.00% 0 0 Mahotea Boone&DUSHQWHU12/9/1977 14 0 31.6 Built-out 100.00% 14 14 Paigebrooke 3/8/2004 6 2 20.3 Under development 66.67% 4 4 Quail Hollow 3/28/2016 96 188.3 Under development 0 Stagecoach 8/16/1971 47 6 55.5 Mostly built-out 86.17% 41 40 Terra Bella 11/11/2008 26 1 54.8 Under development 86.54% 25 20 Vaquero 3/27/2000 296 32 510 Mostly built-out 264 25Wyck Hill 4/3/1996 13 2 22.4 Mostly built-out 84.62% 11 11 Other/Miscellaneous - 23 2 - Mostly built-out 86.96% 21 19 1,083 1,362.7 49.% Block J Block I Block I (Piedra Court) SP | Ord 847 | 2-26-18 Gas Well Pad Site SP | Ord 778 | 3-28-16Block P Block M Block H Block G Block F Block L Sales Office Block D Primrose CVS Amphitheater SP | Ord 777 | 03-28-16 Restaurant Row SP | Ord 779 | 3-28-16 Block B Block J (Catalonia Court) SP | Ord 783 | 4-25-16 RP | Ord 791 | 8-22-16 Block E (Comillas Court) SP | Ord 837 | 9-11-17 RP | Res 18-10 | 2-26-18 CVS SP | Ord 762 | 12-14-15 FP | Ord 761 | 12-14-15 Primrose SP | Ord 763 | 12-14-15 FP | Ord 761 | 12-14-15 Retail Corner SP | Ord 771 | 2-22-16 RP | Ord 809 | 12-12-16 Town Hall RP | Ord 810 | 12-12-16Block DPlaza Mayor SP | Ord 854 | 5-21-18 Chapel / Reception Hall SP | Ord 853 | 4-30-18 Phase 2 DP | Ord 830 | 06-19-17Block E BUILDING LEGEND Site Plan Received Site Plan Approved Building Permit Received Building Under Construction Building Completed Block C Entrada Status Map — )HEUXDU\ 201 Entrada Project Status—)HEUXDU\ 201Project Name Number ofLots/UnitsSizeContractorDevelopment Status EstimatedCompletionCVS Pharmacy 113,378 sf Wurzel Builders Completed February 2017 Primrose Daycare 112,460 sf Cooper General Contractors Completed May 2017 Entrada Sales Center 1 3,463 sf Crescent Custom Homes Completed June 2018 Entrada Retail Corner 3Retail Office: 43,336 sf Starbucks: 2,834 sf Retail 1: 1,370 sf Diesel Design Build Building permits issued; under construction Fall 2019 (DUO\Entrada Residential Block J 6~4,500 sf ea Calais Custom Homes Building permits issued; under construction; 3 units nearing completion Varies Entrada Residential Block E 14~5,000 sf ea Crescent Custom Homes Building permits issued; under construction; units nearingcompletion Varies Entrada Residential Block I 12 ~3,600 sf ea Pentavia Custom Homes Building permits issued; under construction Varies Pedestrian Bridge 1-Crescent Custom Homes Building permit issued; under construction 2019Gas Pad Parking Garage 1148,398 sf Diesel Design Build Building permit issued; under construction 2019Restaurant Row 3A: 15,422 sf B/C: 22,414 sf Crescent Custom Homes Building permits issued for all of restaurant row; under construction 2019Chapel & Reception Hall 2Chapel: 3,207 Reception Hall: 14,418 sf Crescent Custom Homes Building permits issued; under construction 2019Entrada Plaza Mayor 4Hotel: 95,048 sf Condo A: N/A Condo B: 131,571 sf Parking Garage: 120,912 SF Tri-Arc Building plans under review; site work under construction 2021 Town of Westlake'sBuilding Permit - Monthly ReportMonth of February, 2019Project Number Project TypeFull Address Permit Issued Date Owner Name Tenant NameContractorBusiness Name Square FootageValueACCC - 18 - 0350CommercialAccessory Permit(C)1 Destiny WayWestlake, TX7626202/22/2019FMR Texas I LLCFidelityInvestmentsShade StructuresInc.3,714$145,000.00ACCC - 18 - 0351CommercialAccessory Permit(C)2 Destiny WayWestlake, TX7626202/22/2019FMR Texas LTDPRTNSHPFidelityInvestmentsShade StructuresInc.570$40,000.00Commercial Accessory Permit (C)Total Value$185,000.00(Avg.: $92,500.00)Total Square Footage4,284.00(Avg.: 2,142.00)Permits Issued:2RMDLC - 19 -0012CommercialRemodel Permit2 Destiny WayWestlake, TX02/12/2019FMR Texas LTDPRTNSHPFidelityInvestmentsPacific BuildersIncorporated12,145$1,000,000.00MYGOV.USTown of Westlake | Building Permit - Monthly Report | Printed 03/04/2019 at 09:35 AMPage 1 of 5 (C)76262RMDLC - 19 -0023CommercialRemodel Permit(C)1 Destiny WayWestlake, TX7626202/15/2019FMR Texas I LLCFidelityInvestmentsHC Beck41,887$1,770,198.00Commercial Remodel Permit (C)Total Value$2,770,198.00(Avg.: $1,385,099.00)Total Square Footage54,032.00(Avg.: 27,016.00)Permits Issued:2DEMOR - 19 -0019Demolition Permit(R)2221 Cedar ElmTerr.Westlake, TX7626202/04/2019Bondi InvestmentsLpFirefly EarthworksLLC$8,950.00Demolition Permit (R)Total Value$8,950.00(Avg.: $8,950.00)Total Square Footage0.00(Avg.: 0.00)Permits Issued:1FENCE-19-0022Fence Permit /Retaining Wall1807 Quail HollowDr.Westlake, TX7626202/07/2019Jawad QureshiAaleya KoreishiTejas Stone Works$119,000.00FENCE-19-0030Fence Permit /Retaining Wall1115 Post Oak Pl.Westlake, TX7626202/22/2019Jason & MichelleWittenTejas Stone Works$65,000.00Fence Permit / Retaining WallTotal Value$184,000.00(Avg.: $92,000.00)Total Square Footage0.00(Avg.: 0.00)Permits Issued:2MYGOV.USTown of Westlake | Building Permit - Monthly Report | Printed 03/04/2019 at 09:35 AMPage 2 of 5 HVACR - 19 -0032Mechanical Permit(R)1404 Post Oak Pl.Westlake, TX7626202/11/2019Connel CecilAirtron$8,377.00Mechanical Permit (R)Total Value$8,377.00(Avg.: $8,377.00)Total Square Footage0.00(Avg.: 0.00)Permits Issued:1SFR - 18 - 0326New Single FamilyHome Permit (R)1613 MeanderingWay Dr.Westlake, TX7626202/28/2019Carl SmallwoodJeff SmallwoodCary Hy CustomHomes9,674$1,250,000.00SFR - 19 - 0013New Single FamilyHome Permit (R)1644 Carlyle Ct.Westlake, TX7626202/11/2019Duly FamilyRevocable TrustBrian & MichelleDulyCalais CustomHomes9,849$1,000,000.00New Single Family Home Permit (R)Total Value$2,250,000.00(Avg.: $1,125,000.00)Total Square Footage19,523.00(Avg.: 9,761.50)Permits Issued:2PLMBR - 19 -0038Plumbing Permit(R)1845 Broken BendDr.Westlake, TX7626202/26/2019Fontanes Juan DSame Day WaterHeaters$1,300.00PLMBR - 19 -0039Plumbing Permit(R)2214 Cedar ElmTerr.Westlake, TX7626202/26/2019Schultz AlbertSame Day WaterHeaters$1,300.00PLMBR - 19 -0042Plumbing Permit(R)1 Deloitte Way2501 Westlake02/28/2019DCLI, LLCTD Industries(Plumbing)$1,200.00MYGOV.USTown of Westlake | Building Permit - Monthly Report | Printed 03/04/2019 at 09:35 AMPage 3 of 5 ParkwayWestlake, TX76262PLMBR - 19 -0028Plumbing Permit(R)1602 CreekwoodCt.Westlake, TX7626202/05/2019Tews DanielGustavHEB Plumbing &Sprinkler$4,200.00Plumbing Permit (R)Total Value$8,000.00(Avg.: $2,000.00)Total Square Footage0.00(Avg.: 0.00)Permits Issued:4POOL - 19 - 0020Pool Permit2013 ValenciaCoveWestlake, TX7626202/22/2019Jim PendergrassCatherinePendergrassClaffey Pools712$90,000.00POOL - 19 - 0033Pool Permit2102 Cedar ElmTerr.Westlake, TX7626202/14/2019Wheat Douglas DClaffey Pools1,363$31,000.00Pool PermitTotal Value$121,000.00(Avg.: $60,500.00)Total Square Footage2,075.00(Avg.: 1,037.50)Permits Issued:2ADDNR - 19 -0001ResidentialAddition Permit (R)1807 Quail HollowDr.Westlake, TX7626202/05/2019Jawad QureshiAaleya KoreishiSCH Homes989$70,500.00Residential Addition Permit (R)Total Value$70,500.00(Avg.: $70,500.00)MYGOV.USTown of Westlake | Building Permit - Monthly Report | Printed 03/04/2019 at 09:35 AMPage 4 of 5 Total Square Footage989.00(Avg.: 989.00)Permits Issued:1RMDLR - 19 -0034ResidentialRemodel Permit(R)2220 King FisherDr.Westlake, TX7626202/28/2019Wade WhiteKatharine WhiteTruvail Homes1,500$210,000.00Residential Remodel Permit (R)Total Value$210,000.00(Avg.: $210,000.00)Total Square Footage1,500.00(Avg.: 1,500.00)Permits Issued:1TOTALS:Square Footage:82,403.00(Avg.: 4,577.94)Value:$5,816,025.00(Avg.: $323,112.50)Total Projects:18Permits Issued:18MYGOV.USTown of Westlake | Building Permit - 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Section 551.071. Consultation with Attorney (1) when the governmental body seeks the advice of its attorney about: (A) pending or contemplated litigation: Builder Recovery Services, LLC vs. Town of Westlake b. Section 551.072 to deliberate the purchase, exchange, lease, or value of real property regarding the conservation area at The Knolls at Solana c. Section 551.071 (2) Consultation 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: Trophy Club Municipal District No. 1 d. Section 551.087 Deliberation Regarding Economic Development Negotiations (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1) for the following: - BRE Solana - Waterside Land Company LLC Town Council Item # 6 – Executive Session Town Council Item # 7 – Reconvene Council Meeting COUNCIL RECAP / STAFF DIRECTION Town Council Item # 8 – Council Recap / Staff Direction Town Council Item # 9 – Adjournment Work Session ITEMS OF COMMUNITY INTEREST: Mayor and Council Reports on Items of Community Interest pursuant to Texas Government Code Section 551.0415 the Town Council may report on the following items: (1) expression of thanks, congratulations or condolences; (2) information about holiday schedules; (3) recognition of individuals; (4) reminders about upcoming Town Council events; (5) information about community events; and (6) announcements involving imminent threat to public health and safety.  Public Art Competition Advisory Committee Meeting Monday, March 18, 2019; 11:00 am* Westlake Town Hall, Solana Terrace-Bldg.7, Suite 7100 - Council Chambers  WA Master Facilities & Program Planning Public Input Meeting Thursday, March 21, 2019; 6:00 – 8:00 pm WA Campus – Multi-Purpose Hall (MPH) - We invite all interested Westlake residents and current WA parents to attend this public input meeting and join Town/Academy leaders as we work together to update the WA Master Plan and look ahead to facility and program needs. Please RSVP to Ginger Awtry here if you did not receive an email notification.  Westlake Fire-EMS Station 1 Grand Opening Saturday, March 23, 2019; 9:00 am – 12:00 pm at 2000 Dove Road – Don’t miss this grand opening for our community’s new Fire-EMS Station; Look for your emailed invitation in your inbox now (or check junk mail folder). Questions? Contact Facilities & Recreation Assistant Darcy McFarlane via email or at 817-490-5768.  Town Council Work Session/Meeting Monday, March 25, 2019* Westlake Town Hall, Solana Terrace-Bldg.7, Suite 7100 - Council Chambers  Retirement Reception for former Town Manager Tom Brymer Thursday, March 28, 2019; 5:00 – 8:00 pm Marriott Solana Hotel, 1301 Solana Blvd., Bldg. 3 -We hope to see you at this special gathering to honor Tom Brymer and his family upon retirement. Join our elected officials, special guests, and Town staff, as our community and stakeholders come together to show our support and appreciation to Tom for his dedication to public service. Look for your emailed invitation in your inbox now (or check junk mail folder). Please RSVP to Ginger Awtry via email or call 817-490-5719.  Town Council Work Session/Meeting Monday, March 28, 2019* Westlake Town Hall, Solana Terrace-Bldg.7, Suite 7100 - Council Chambers  Coffee & Conversation with the Mayor/Board President Monday, April 1, 2019; 8:00 – 9:30 am Marriott Solana Hotel – Great Room -Thank you to the Marriott for providing complimentary coffee & tea each month!  Board of Trustees Work Session/Meeting & Brief Town Council Meeting Monday, April 1, 2019* Westlake Town Hall, Solana Terrace-Bldg.7, Suite 7100 - Council Chambers  Annual State of the Communities Luncheon; Hosted by the Northwest Metroport Chamber Tuesday, April 2, 2019; 11:00 am – 1:00 pm Texas Motor Speedway Club -If you are interested in attending, please contact Ginger Awtry via email or at 817-490-5719.  Westlake Historical Preservation Society (WHPS) Board Meeting Tuesday, April 2, 2019; 6:00 pm* Westlake Town Hall, Solana Terrace-Bldg.7, Suite 7100 - Council Chambers Town Council Item # 2 – Items of Community Interest  Westlake Academy Danish & Dialogue with school leaders Wednesday, April 3, 2019; 8:00 am – 9:00 am WA Campus – Sam & Margaret Lee Fieldhouse Classroom -Open to all Westlake & WA parents/grandparents: current and for those considering or wanting to learn more about our community’s charter school. For more, visit WestlakeAcademy.org, and look under the tabs About Us/Danish & Dialogue or email Jennifer Furnish.  Planning & Zoning Work Session/Meeting Monday, April 8, 2019* Westlake Town Hall, Solana Terrace-Bldg.7, Suite 7100 - Council Chambers Save the Dates for other April events coming up soon in our community… ♦ Westlake Academy’s 2nd Annual Golden Tassel Top 10% Dinner – April 11 ♦ First 2019 MasterWorks Spring Concert in Westlake with Grammy winning band, Brave Combo – April 11 ♦ WA Fine Arts Day & Inaugural Dinner Theatre – April 13 ♦ Annual New Resident Dinner Reception – April 23 ♦ Final 2019 MasterWorks Spring Concert in Westlake with Journey tribute band, Escape – April 25 *For meeting agendas and details on WA calendar events or Municipal calendar events, please visit the Westlake Academy website or the Town of Westlake website for further assistance. CITIZEN COMMENTS: This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council cannot by law take action nor have any discussion or deliberations on any presentation made to the Council at this time concerning an item not listed on the agenda. The Council will receive the information, ask staff to review the matter, or an item may be noticed on a future agenda for deliberation or action. Town Council Item # 3 – Citizen Comments CONSENT AGENDA: All items listed below are considered routine by the Town Council and will be enacted with one motion. There will be no separate discussion of items unless a Council Member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes from the meeting on February 25, 2018. b. Consider approval of Resolution 19-12, Appointing an additional member to the Public Art Competition Advisory Committee. c. Consider approval of Resolution 19-13, Amending the authorized signers on the Town of Westlake Trust Account with First Financial Bank d. Consider approval of Resolution 19-14, Accepting the annual Comprehensive Annual Financial Report (CAFR) presented by Weaver and Tidwell, L.L.P., for the fiscal year ended September 30, 2018. e. Consider approval of Resolution 19-15, Authorizing the Town Manager to enter into a purchase agreement with Rush Bus Center to purchase a 71-passenger activity bus and authorize the Town Manager to make funding changes not to exceed $25,000 on this project. Town Council Item # 4 – Consent Agenda Town Council Minutes 02/25/19 Page 1 of 8 MINUTES OF THE TOWN OF WESTLAKE, TEXAS TOWN COUNCIL MEETING February 25, 2019 PRESENT: Mayor Laura Wheat and Council Members Carol Langdon, Michael Barrett, and Greg Goble. Rick Rennhack arrived at 5:15 ABSENT: Alesa Belvedere OTHERS PRESENT: Town Manager Amanda DeGan, Assistant to the Town Manager Jarrod Greenwood, Town Secretary Kelly Edwards, Town Attorney Stan Lowry, Fire Chief Richard Whitten, Deputy Fire Chief John Ard, Building Official Pat Cooke, Development Coordinator Nick Ford, Finance Director Debbie Piper, Director of Facilities & Parks Troy Meyer, Director of Communications Ginger Awtry, Communications Manager Jon Sasser, Director of Information Technology Jason Power, and Director of Human Resources and Administrative Services Todd Wood. Work Session 1. CALL TO ORDER Mayor Wheat called the work session to order at 5:11 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Wheat led the Pledge of Allegiance to the United States and Texas flags. Town Council Minutes 02/25/19 Page 2 of 8 3. REVIEW OF CONSENT AGENDA ITEMS FOR THE TOWN COUNCIL REGULAR MEETING AGENDA. No additional discussion. 4. DISCUSSION ITEMS a. Presentation and discussion regarding a contract with N.G. Painting for repairs and repainting the 685,000-gallon ground storage tank and amending the adopted budget to provide funding. Director Greenwood provided an overview of the item. b. Presentation and discussion regarding the proposed amendment regarding Smoking. Director Greenwood provided an overview of the item with the revisions discussed at the November meeting. Discussion ensued regarding concerns for current businesses, proposed ordinance restrictions, enforcement, neighboring cities’ regulations, and the possibility of phasing the ban. c. Presentation and discussion regarding the Report of Quarterly Financial Dashboard and Analysis as well as Capital Projects for the Quarter ended December 31, 2018. Town Manager DeGan and Directors Piper and Greenwood provided a presentation and overview of the item. Discussion ensued restricting the CIP unfunded needs, academy capital projects, academy maintenance costs, conduit funds, the trail along Ottinger Road to cemetery, and priorities of projects. d. Presentation and discussion of our Legislative priorities for 2019 and any progress or discussions had to date regarding the 86th Legislative Session. Town Manager DeGan provided an overview of the item. Discussion ensued regarding the “Property Cap Bill” SB & HB 2, including SB 657, and SB 3. Town Council Minutes 02/25/19 Page 3 of 8 e. Standing Item: Presentation and discussion of development projects per Staff report January 2019, including an Entrada report from the Developer and projects in Planned Development PD 3-5. Director Ruthven provided an overview of the following developments: Entrada: retail corner stone, Starbucks location, gas well pad site including the parking garage, residential buildings along the lakefront, reviewing of TxDOT curb cut for possible utility conflicts, and funding for enhancements of the TxDOT drive location. Schwab: the estimated completion of Phase I, staging for Phase II, and opening Phase I scheduled for fall 2019. Knolls: grading of roadways, detention pond, and the installation of fencing delineating the conservation area. 5. EXECUTIVE SESSION Council convened to into executive session at 6:15 p.m. The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.071. Consultation with Attorney (1) when the governmental body seeks the advice of its attorney about: (A) pending or contemplated litigation: Builder Recovery Services, LLC vs. Town of Westlake b. Section 551.072 to deliberate the purchase, exchange, lease, or value of real property regarding the conservation area at The Knolls at Solana c. Section 551.071 (2) Consultation 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: Trophy Club Municipal District No. 1 d. Section 551.087 Deliberation Regarding Economic Development Negotiations (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1) for the following: - BRE Solana e. Section 551.074(a)(1): Deliberation Regarding Personnel Matters – to deliberate the appointment, employment, evaluation, reassignment, duties, of a public officer or employee: - Town Manager evaluation Town Council Minutes 02/25/19 Page 4 of 8 6. RECONVENE MEETING Mayor Wheat reconvened the meeting at 7:36 p.m. 7. COUNCIL RECAP / STAFF DIRECTION Review of the CIP items, bids for CIP items, and allocating money to the conduit funds. 8. ADJOURNMENT Mayor Wheat adjourned the work session at 7:37 p.m. Regular Session 1. CALL TO ORDER Mayor Wheat called the regular session to order at 7:37 p.m. 2. ITEMS OF COMMUNITY INTEREST Director Awtry provided an overview of the upcoming events. Town Manager DeGan reviewed options to move the first of the public hearing meetings regarding property tax. 3. CITIZEN COMMENTS David DeCovas, 2001 Holley Pkwy., Roanoke, spoke in opposition of the proposed Smoking ordinance. Anthony Ukperaj, 1149 Bandit Road, Keller, spoke in opposition of the proposed Smoking ordinance and harm it poses his business in Westlake. Neil McNaby, 1815 Broken Bend, would like to provide input regarding document dedicating the conservation area. 4. CONSENT AGENDA a. Consider approval of the minutes from the meeting on January 28, 2018. b. Consider approval of Resolution 19-08, Authorizing the Town Manager to execute an agreement with the State of Texas for furnishing, installing, operation Town Council Minutes 02/25/19 Page 5 of 8 and maintenance of traffic signal preemption equipment on state highway rights- of-way. c. Consider approval of Resolution 19-09, authorizing the Town Manager to execute a contract with N.G. Painting for repairs and repainting of the 685,000- gallon ground storage tank and amending the adopted budget to provide funding. d. Consider approval of Resolution 19-10, Approving amendments to the Personnel Manual. e. Consider approval of Ordinance 880, Canceling the May 4, 2019, General Election and declaring each unopposed candidate elected to office. MOTION: Council Member Goble made a motion to approve the consent agenda. Council Member Rennhack seconded the motion. The motion carried by a vote of 4-0. 5. DISCUSSION AND CONSIDERATION OF ORDINANCE 877, AMENDING CHAPTER 46, ARTICLE VI, TOBACCO PRODUCTS, SMOKING AND E-CIGARETTES, PROHIBITING SMOKING AND VAPING WITHIN THE TOWN OF WESTLAKE EXCEPT IN PRIVATE CLUBS. Discussion ensued regarding the exemption of specific locations such as established restaurants. Attorney Lowry stated that an exemption should be to exempt a classification of possible businesses. MOTION: Council Member Rennhack made a motion to table Ordinance 877 to the meeting on March 25, 2019. Council Member Goble seconded the motion. The motion carried by a vote of 4-0. 6. CONDUCT A PUBLIC HEARING AND CONSIDERATION OF A RESOLUTION 19-11, A FINAL PLAT FOR A 4.986-ACRE PORTION OF LAND GENERALLY LOCATED SOUTH OF HIGHWAY 114 AND EAST OF WESTLAKE PARKWAY, ALSO KNOWN AS FIDELITY INVESTMENTS ADDITION PHASE IV. Director Ruthven provided an overview of the item. Mayor Wheat opened the public hearing. No one addressed Council. Mayor Wheat closed the public hearing. MOTION: Council Member Langdon made a motion to approve Resolution 19-11. Council Member Barrett seconded the motion. The motion carried by a vote of 4-0. Town Council Minutes 02/25/19 Page 6 of 8 7. CONDUCT A PUBLIC HEARING AND CONSIDERATION OF AN ORDINANCE 878, AMENDING THE COMPREHENSIVE PLAN, ESTABLISHED BY ORDINANCE 747, ADDING PROVISIONS FOR URBAN LIGHTING ZONES. Director Ruthven and Mr. Robin McCaffery, Mesa Planning, provided a presentation and overview of the item. Discussion ensued regarding the proposed amendment and how current lighting would be updated throughout the town. Mayor Wheat opened the public hearing. No one addressed Council. Mayor Wheat closed the public hearing. MOTION: Council Member Goble made a motion to approve Ordinance 878. Council Member Langdon seconded the motion. The motion carried by a vote of 4-0. 8. CONDUCT A PUBLIC HEARING AND CONSIDERATION OF ORDINANCE 879, AMENDING CHAPTER 102, “ZONING” ARTICLE 6 “PERFORMANCE STANDARDS”, DIVISION 2 “OUTDOOR LIGHTING”, SECTIONS 102-206 THROUGH 102-240 BY PROVIDING FOR NEW DEFINITIONS AND NEW STANDARDS FOR OUTDOOR LIGHTING. Director Ruthven provided an overview of the item. Discussion ensued regarding percent of lighting that may be out of compliance with this amendment and the current lighting of Fidelity’s parking garage. Mayor Wheat opened the public hearing. No one addressed Council. Mayor Wheat closed the public hearing. MOTION: Council Member Langdon made a motion to approve Ordinance 879. Council Member Barrett seconded the motion. The motion carried by a vote of 4-0. Town Council Minutes 02/25/19 Page 7 of 8 Pursuant to LCG 211.007(b) The Town Council may not take action, however discussion may ensue, on Item 9 of the agenda until the Planning and Zoning Commission makes a final recommendation. The Planning and Zoning Commission postponed this item during the February 11, 2019, meeting until March 11, 2018. 9. CONDUCT A PUBLIC HEARING AND CONSIDERATION OF ORDINANCE APPROVING A ZONING CHANGE REQUEST FROM R-5 COUNTRY RESIDENTIAL TO PLANNED DEVELOPMENT DISTRICT NUMBER 7 (PD7) FOR AN APPROXIMATELY 37.8-ACRE PORTION OF LAND GENERALLY LOCATED EAST OF PEARSON LANE AND SOUTH OF ASPEN LANE, TO INCLUDE PRIMARILY SINGLE FAMILY RESIDENTIAL USES, INCLUDING A REQUEST FOR APPROVAL OF A CONCEPT PLAN AND DEVELOPMENT PLAN, AND A SPECIFIC USE PERMIT FOR PRIVATE STREETS. Town Manager DeGan stated there would be no presentation or overview of this item since it was tabled by the Planning and Zoning Commission but the Mayor would open the public hearing. Mayor Wheat opened the public hearing. No one addressed Council. Mayor Wheat asked for a motion to continue the public hearing. MOTION: Council Member Barrett made a motion to continue the public hearing at the March 25, 2019, meeting. Council Member Rennhack seconded the motion. The motion carried by a vote of 4-0. 10. EXECUTIVE SESSION Council did not convene into executive session. The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.071. Consultation with Attorney (1) when the governmental body seeks the advice of its attorney about: (A) pending or contemplated litigation: Builder Recovery Services, LLC vs. Town of Westlake b. Section 551.072 to deliberate the purchase, exchange, lease, or value of real property regarding the conservation area at The Knolls at Solana c. Section 551.071 (2) Consultation 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: Trophy Club Municipal District No. 1 d. Section 551.087 Deliberation Regarding Economic Development Negotiations (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory Town Council Minutes 02/25/19 Page 8 of 8 of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1) for the following: - BRE Solana e. Section 551.074(a)(1): Deliberation Regarding Personnel Matters – to deliberate the appointment, employment, evaluation, reassignment, duties, of a public officer or employee: - Town Manager evaluation 11. RECONVENE MEETING 12. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS. 13. FUTURE AGENDA ITEMS No additional discussion required. 14. ADJOURNMENT There being no further business before the Council, Mayor Wheat asked for a motion to adjourn the meeting. MOTION: Council Member Goble made a motion to adjourn the meeting. Council Member Rennhack seconded the motion. The motion carried by a vote of 4-0. Council Member Rennhack adjourned the meeting at 8:20 p.m. APPROVED BY THE TOWN COUNCIL ON MARCH 25, 2019. ATTEST: _____________________________ Laura Wheat, Mayor _____________________________ Kelly Edwards, Town Secretary Page 1 of 2 Westlake Town Council TYPE OF ACTION Regular Meeting - Consent Westlake Town Council Meeting Monday, March 25, 2019 TOPIC: Consideration for Approval of a Resolution Appointing an Additional Member to the Westlake Public Art Competition Committee. STAFF CONTACT: Tom Brymer, Deputy Town Manager Strategic Alignment Vision, Value, Mission Perspective Strategic Theme & Results Outcome Objective Vision: An oasis of nautural beuty that maintains our open spaces in balance with distinctive development, trails, and quality of life amenities amidst an ever expanding urban landscape. Citizen, Student & Stakeholder High Quality Planning, Design & Development - We are a desirable well planned, high-quality community that is distinguished by exemplary design standards. Preserve Desirability & Quality of Life Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: June 19, 2017 Completion Date: March 25, 2019 Funding Amount: N/A Status - Not Funded Source - N/A EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) On February 27, 2017, after a lengthy process that included opportunity for public participation, the Town Council reviewed and adopted a new Westlake Public Art Plan. Following approval of that Public Art Plan, the Town Council appointed an advisory committee called the Westlake Public Art Competition Committee (WPACC or Committee) in June 2017. The purpose of the WPACC is to assist the Town in the implementation of the Town’s Public Art Plan. At their February 4, 2019 meeting the WPACC voted to recommend to the Mayor and Town Council to add an additional member. Specifically, this recommendation is to appoint Patricia Dellorfano, Lead Curator of the Fidelity Investments collection, to the WPACC. This was a result of discussions Russell Tether and Robin McCaffrey had with the Vice President of Community Page 2 of 2 Affairs Scott Orr regarding the Committee’s work. Mr. Orr advised that Fidelity’s Lead Curator might be interested in serving on the Committee. Staff confirmed that in discussions with Ms. Dellaforno who confirmed her interest in serving on the Committee. In fact, Ms. Dellaforno traveled from Boston to attend the WPACC’s March 19th meeting as a visitor in order to be informed as to the status of the Committee’s work reviewing artist RFQ’s. RECOMMENDATION Recommend approval of this resolution per the WPACC’s and Staff’s recommendation to approve Ms. Dellaforno’s appointment. The resolution calls for Ms. Dellaforno’s appointment to be for one (1) year. This is because the other WPACC members’ terms were for two (2) years and they all expire this coming June. The Committee is considering a recommendation regarding Committee terms and structure to bring to the Mayor and Council by June. ATTACHMENTS Two (2) attachments. Resolution and application by Ms. Dellaforno to serve on the WPACC. Note: biography and resume will be sent out under separate cover. Resolution 19-12 Page 1 of 2 TOWN OF WESTLAKE RESOLUTION NO. 19-12 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS ESTABLISHING APPOINTING A NEW MEMBERS TO THE WESTLAKE PUBLIC ART COMPETITION ADVISORY COMMITTEE (WPACC OR COMMITTEE). WHEREAS, The Town Council of the Town of Westlake adopted a Public Art Plan via Resolution 17-09 on February 27, 2017, which calls for the creation of a Public Art Program of which this Public Art Competition Advisory Committee; is an important part, and WHEREAS, The Town Council of the Town of Westlake recognizes the importance of Public Art to Westlake’s economic development, preservation of value, and improving quality of life; and WHEREAS, The Town Council of the Town of Westlake welcomes the partnership that this committee and its membership will establish between the Westlake Public Arts Program and the larger Arts Community of the Dallas/ Ft. Region; and WHEREAS, The Town of Westlake seeks to build upon this partnership to establish a Public Arts Program that will promote new and rising talent and bring masterpiece art works to the Town; and WHEREAS, the Town of Westlake Town Council appointed the Westlake Public Art Competition Committee on June 19, 2017 to assist the Town in the implementation of the Town’s Public Art Plan, and seeks to appoint an additional member to this Committee; and WHEREAS, the Town Council finds that the passage of this Resolution is in the best interest of the citizens of Westlake. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That all matters stated in the Recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. SECTION 2: That the Town Council of the Town of Westlake, Texas does hereby appoint Patricia Dellorfano, Lead Curator for Fidelity Investments collection, to the Westlake Public Art Competition Advisory Committee for a one (1) year term. SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. Resolution 19-12 Page 2 of 2 SECTION 4: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 25TH DAY OF MARCH, 2019. ATTEST: _____________________________ Laura L. Wheat, Mayor _______________________________ APPROVED AS TO FORM: Kelly Edwards, Town Secretary _______________________________ L. Stanton Lowry, Town Attorney Page 1 of 2 Westlake Town Council TYPE OF ACTION Regular Meeting - Consent Westlake Town Council Meeting Monday, March 25, 2019 TOPIC: Consider a Resolution amending the authorized signers on the Town of Westlake Trust Account with First Financial Bank. STAFF CONTACT: Todd Wood, Dir. of HR & Administrative Services Debbie Piper, Finance Director Strategic Alignment Vision, Value, Mission Perspective Strategic Theme & Results Outcome Objective Informed & Engaged Citizens / Sense of Community Citizen, Student & Stakeholder Exemplary Service & Governance - We set the standard by delivering unparalleled municipal and educational services at the lowest cost. Increase Transparency, Accessibility & Communications Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: March 25, 2019 Completion Date: March 25, 2019 Funding Amount: $0.00 Status - Not Funded Source - General Fund EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) Due to the recent change of authorized signers on the Town’s bank accounts, it is necessary to also update the authorized signers on the Town of Westlake Trust account. This account is only used to pay health insurance premiums for sales tax exemption purposes that are embedded in the premiums. Only one transaction per month is processed through this account. Since the creation of the account in 2006, signers on the Trust account have included the Town Manager, the Finance Director, and the HR Director. Page 2 of 2 RECOMMENDATION Approve Resolution amending the authorized signers on the Town of Westlake Insurance Trust account with First Financial Bank. ATTACHMENTS Resolution Resolution 19-13 Page 1 of 2 TOWN OF WESTLAKE RESOLUTION NO. 19-13 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, AMENDING THE AUTHORIED SIGNERS ON THE TOWN OF WESTLAKE INSURANCE TRUST ACCOUNT WITH FIRST FINANCIAL BANK. WHEREAS, authorized signers of the Town of Westlake’s depository accounts may require amendments at certain times due to changes in structure and/or personnel; and WHEREAS, the Town’s Insurance Trust account is required for payment of health insurance premiums when government sales tax exemption is claimed; and WHEREAS, due to the recent appointment of Assistant Town Manager to Town Manager, it is necessary to change the authorized signers on the Town’s Insurance Trust account; and WHEREAS, signers on the Town’s accounts have included the Town Manager, the Finance Director, and the HR Director; WHEREAS, the Town Council finds that the passage of this Resolution is in the best interest of the citizens of Westlake. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That, all matters stated in the Recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. SECTION 2: That the Town of Westlake Council hereby designates Amanda DeGan, Debbie Piper, and Todd Wood as authorized signers of the Town of Westlake’s Insurance Trust Account with First Financial Bank. SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. Resolution 19-13 Page 2 of 2 SECTION 4: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 25TH DAY OF MARCH 2019. ATTEST: _____________________________ Laura L. Wheat, Mayor _______________________________ APPROVED AS TO FORM: Kelly Edwards, Town Secretary _______________________________ L. Stanton Lowry, Town Attorney Page 1 of 3 Westlake Town Council TYPE OF ACTION Regular Meeting - Consent Westlake Town Council Meeting Monday, March 25, 2019 TOPIC: Consider a Resolution accepting the annual Comprehensive Annual Financial Report (CAFR) presented by Weaver and Tidwell, L.L.P., for the fiscal year ended September 30, 2018. STAFF CONTACT: Debbie Piper, Finance Director Strategic Alignment Vision, Value, Mission Perspective Strategic Theme & Results Outcome Objective Fiscal Responsibility Municipal & Academic Operations Exemplary Service & Governance - We set the standard by delivering unparalleled municipal and educational services at the lowest cost. Increase Transparency, Accessibility & Communications Strategic Initiative Maintain Receipt of Various Financial Awards for both Municipal and Academic Services Time Line - Start Date: February 25, 2019 Completion Date: February 25, 2019 Funding Amount: 36,173 Status - Funded Source - Multiple Sources - see comments below Allocated to General Fund, Utility Fund and Visitors Association Fund EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) The Town’s Fiscal and Budgetary Policies along with State law require that the Town be audited annually by outside independent accountants. The result of this independent audit is the receipt of an unmodified opinion or “clean” opinion again this year. This means the auditors have found that these financial statements present fairly, in all material respects, the financial position of the Town of Westlake at September 30, 2018. Page 2 of 3 As in previous years, we have included the Texas Student Housing (TSH) audited information in our report. Because the Town Council may appoint and/or remove a director of the Texas Student Housing Board, it was determined that TSH should be considered a component unit of the Town. As in previous years, their audits have been prepared assuming they will continue as “going concerns.” The opinion states, “The discretely presented component units are in default on their bonds due to failure to meet certain bond covenants. This gives bond holders the right to accelerate and demand payment on the bonds in full. This condition raises substantial doubt about the discretely presented component units’ ability to continue as going concerns.” The footnotes clearly indicate that the debt of TSH is not a liability of the Town. The inclusion of this information in the Town’s audit will not affect any future bond ratings nor have a negative impact on the Town’s overall debt ratio for the purpose of securing additional financing in the future. This year’s audit again includes the Public Improvement District Capital Project Fund and Fiduciary Fund. The basis for including is Statement No. 6 of the Governmental Accounting Standards Board, “Accounting and Financial Reporting for Special Assessments”. Section 19 refers to Capital Improvements Financed by Special Assessment Debt for which the Government is not obligated in any manner. Below is an excerpt from the Statement: The construction phase should be reported like other capital improvements; in a capital project fund, or other appropriate fund. The source of funds in the capital project fund should be identified by a description other than bond proceeds, such as contributions. Displaying the transactions in this way recognized that the construction or acquisition is a governmental activity and results in the addition of a governmental asset but is not financed by governmental debt. On February 5, 2015, the Town Council approved issuance of $26,175,000 of Special Assessment Revenue Bonds, Series 2015 related to the District. As stated in the POS, the Public Improvement District Bonds (“The Bonds”) are special and limited obligations of the Town payable solely from the pledged revenues and other funds comprising the Trust Estate, as and to the extent provided in the indenture. The bonds do not give rise to a charge against the general credit or taxing power of the Town and are payable solely from the sources identified in the indenture. The owners of the bonds shall never have the right to demand payment thereof out of money raised or to be raised by taxation, or out of any funds of the Town other than the Trust Estate, as and to the extent provided in the indenture; and, no owner of the bonds shall have the right to demand any exercise of the Town’s taxing power to pay the principal of the bonds or the interest or redemption premium, if any, thereon. The Town shall have no legal or moral obligation to pay the bonds out of any funds of the Town other than the Trust Estate. Along with the annual budget, the Comprehensive Annual Financial Report (CAFR) is one of the most important financial activities of the Town. This report represents and reflects upon the Town’s financial operations and condition to the Town’s residents, elected officials, management personnel, financial institutions, rating agencies, and all other parties interested in the financial affairs of the Town. Additionally, the Town began participating in the Government Finance Officer Association’s Page 3 of 3 (GFOA) Certificate of Achievement for Excellence in Financial Reporting program for the fiscal year 2007. This award is highly regarded as the “Good Housekeeping Seal of Approval” for governmental financial reporting. Therefore, we are pleased to announce that the Town has recently received this award for our ninth submission. This award is presented based on the required contents of the CAFR document and ensures that certain required financial disclosures are presented in the document. All governmental entities that participate in the program must include these disclosures in their CAFR. We believe the September 30, 2018 CAFR is following these disclosure requirements, and the Town will be awarded our tenth consecutive certificate. RECOMMENDATION Acceptance of the annual CAFR ATTACHMENTS Resolution Comprehensive Annual Financial Report for the Fiscal Year ended September 30, 2018 Resolution 19-14 Page 1 of 2 TOWN OF WESTLAKE RESOLUTION NO. 19-14 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, ACCEPTING THE COMPREHENSIVE ANNUAL FINANCIAL REPORT PRESENTED BY WEAVER AND TIDWELL, L.L.P., FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018. WHEREAS, Section 103.001 of the Local Government Code requires that a municipality shall have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit; and WHEREAS, Section 103.002 of the Local Government Code requires that a municipality shall employ at its own expense a certified public accountant who is licensed in this state or a public accountant who holds a permit to practice from the Texas State Board of Public Accountancy to conduct the audit and to prepare the annual financial statements; and WHEREAS, the Town Council finds that the passage of this Resolution is in the best interest of the citizens of Westlake. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE: SECTION 1: That, all matters stated in the Recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. SECTION 2: That the Town Council does hereby accept the Comprehensive Annual Financial Report from Weaver and Tidwell, L.L.P., for the fiscal year ended September 30, 2018, attached as Exhibit “A”. SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. Resolution 19-14 Page 2 of 2 SECTION 4: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 25th DAY OF MARCH, 2019. __________________________________ Laura Wheat, Mayor ATTEST: ____________________________________ Kelly Edwards, Town Secretary APPROVED AS TO FORM: ____________________________________ L. Stanton Lowry, Town Attorney Town of Westlake, Texas Comprehensive Annual Financial Report Fiscal Year Ended September 30, 2018 Prepared by: Town of Westlake Finance Department 1500 Solana Blvd, Suite 7200 Westlake, Texas 76262 Town of Westlake Consolidated Annual Financial Report For the Fiscal Year Ended September 30, 2018 Table of Contents i Page Exhibit Introductory Section Letter of Transmittal iii GFOA Certificate of Achievement x Organization Chart xi Town Officials xiii Financial Section Independent Auditor’s Report 4 Management's Discussion and Analysis 10 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 24 A-1 Statement of Activities 25 A-2 Fund Financial Statements Governmental Funds Financial Statements Balance Sheet 27 A-3 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 29 A-4 Statement of Revenues, Expenditures, and Changes in Fund Balances 31 A-5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 33 A-6 Proprietary Funds Financial Statements Statement of Net Position 34 A-7 Statement of Revenues, Expenses, and Changes in Net Position 35 A-8 Statement of Cash Flows 36 A-9 Fiduciary Funds Financial Statements Statement of Fiduciary Net Position 37 A-10 Discretely Presented Component Units Financial Statements Combining Statement of Net Position 38 A-11 Combining Statement of Activities 39 A-12 Notes to the Basic Financial Statements 42 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund 92 B-1 Schedule of Revenues, Expentitures and Changes in Fund Balance - Budget and Actual - Westlake Academy 93 B-2 Notes to Budgetary Comparison Schedules 94 Schedule of Net Pension Liability and Related Ratios - TMRS Pension Plan 95 B-3 Schedule of Pension Contributions - TMRS Pension Plan 96 B-4 Notes to TMRS Pension Plan Required Supplementary Information 97 Schedule of Academy's Proportionate Share of Net Pension Liability - TRS Pension Plan 98 B-5 Schedule of Pension Contributions - TRS Pensions 99 B-6 Notes to TRS Pensions Required Supplementary Information 100 Schedule of Changes in the Total OPEB Liability and Related Ratios - TMRS 101 B-7 Schedule of OPEB Contributions - TMRS 102 B-8 Notes to TMRS OPEB Required Supplementary Information 103 Schedule of Academy's Proportionate Share of Net OPEB Liability - TRS Care Plan 104 B-9 Schedule of OPEB Contributions - TRS Care Plan 105 B-10 Notes to TRS Care Plan Required Supplementary Information 106 Town of Westlake Consolidated Annual Financial Report For the Fiscal Year Ended September 30, 2018 Table of Contents – Continued ii Page Exhibit Combining and Individual Fund Statements and Schedules Major Governmental Funds Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Debt Service Fund 109 C-1 Nonmajor Governmental Funds Combining Balance Sheet 111 C-2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 112 C-3 Nonmajor Special Revenue Funds Budgetary Comparison Schedules Visitors Association Fund 113 C-4 Lone Star Public Facilities Corporation Fund 114 C-5 Economic Development Fund 115 C-6 4B Economic Development Corporation Fund 116 C-7 Agency Funds Statement of Changes in Assets and Liabilities - PID Agency Fund 118 C-8 Statistical Section Net Position By Component 122 S-1 Changes in Net Position 123 S-2 Fund Balances, Governmental Funds 125 S-3 Changes in Fund Balances, Governmental Funds 126 S-4 Assessed Value and Estimated Actual Value of Taxable Property 128 S-5 Principal Property Tax Payers 129 S-6 Property Tax Levies and Collections 130 S-7 Direct and Overlapping Property Tax Rates 131 S-8 Taxable Sales by Industry Type 132 S-9 Ratios of General Bonded Debt Outstanding 133 S-10 Ratios of Outstanding Debt by Type 134 S-11 Direct and Overlapping Governmental Activities Debt 135 S-12 Demographic and Economic Statistics 136 S-13 Principal Employers 137 S-14 Full-Time Equivalent City Government Employees by Function/Program 138 S-15 Operating Indicators by Function/Program 139 S-16 Capital Asset Statistics by Function/Program 140 S-17 1500 Solana Blvd., Suite 7200 Westlake, Texas 76262 Metro: 817-430-0941  Fax: 817-430-1812  www.westlake-tx.org iii March 19, 2019 Honorable Mayor, Council Members and the Citizens of the Town of Westlake, The Town of Westlake (the "Town") Fiscal and Budgetary Policies require that the Town's Finance Department prepare a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Accordingly, the Comprehensive Annual Financial Report (CAFR) for the Town of Westlake, Texas for the fiscal year ended September 30, 2018, is hereby issued. This report consists of management's representations concerning the finances of the Town. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making representations, the Town established a comprehensive internal control framework that was designed both to protect the Town's assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the Town’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Town's comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from mater ial misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Town's financial statements have been audited by Weaver and Tidwell, L.L.P. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town for the fiscal year ended September 30, 2018, were free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Town's financial statements for the fiscal year ended September 30, 2018, were fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial section of this report. This report is presented in three sections: Introductory, Financial and Statistical. The Introductory Section includes this transmittal letter, a listing of Town Officials, and an organi zational chart of the Town. The Financial Section includes the independent auditor’s report on the basic financial statements, Management’s Discussion and Analysis (MD&A), basic financial statements, the notes to the basic financial statements, and combining and individual fund statements and schedules. The MD&A is a narrative introduction, containing overview and analysis to accompany the basic financial statements. This letter of transmittal is designed to complement, and should be read in conjunction with the MD&A. iv The Town of Westlake’s MD&A can be found immediately following the independent auditor’s report. The Statistical Section includes financial and demographic information relevant to readers of the Town’s financial statements. The statistical data is generally presented on a multi-year basis. Profile of the Town Westlake is an oasis of natural beauty that maintains open spaces in balance with distinctive development, trails, and quality of life amenities amidst an ever-expanding urban landscape. Nestled in the DFW Metroplex, Westlake is Gold Level Scenic City and Tree City USA designated, and home to many small independent businesses and several corporate campuses Distinctive developments and architecturally vibrant corporate campuses find harmony among our meandering roads and trails, lined with native oaks and stone walls. We are leaders in education, known for our innovative partnerships between the Town-operated Charter school and our corporate neighbors. We strive to maintain strong aesthetic standards and preserve the natural beauty in our town. Hospitality finds its home in Westlake, as a community, we are family friendly, welcoming, fully involved and invested in our rich heritage, vibrant present and exciting, sustainable future. Westlake is conveniently located between DFW Airport and Alliance Airport, on the south side of State Highway 114, providing quick, easy access to all areas of the Dallas -Ft. Worth Metroplex. The unique location of Westlake is ideal for many of its major corporate campuses and residential communities. A common ideal shared by our corporate and individual residents is their support of the existing character and charm of the community as well as a commitment to excellence in new development. Minutes from downtown Fort Worth, Texas and DFW International Airport, the Town of Westlake is home to several upscale residential communities and Fortune 500 companies, all of which share a unique character and charm, along with a commitment to excellence. The Town is located in northeast Tarrant County and may be conveniently accessed by several major thoroughfares, including SH 114 and US 377. The Town occupies approximately 7 square miles and serves a population of approximately 1,383. In 2018, the average size of new home construction was 9,693 square feet with an average estimated construction cost of $1.82 million. The Town, incorporated in 1956, is considered a Type A general-law municipality. The Town operates under the Council-Manager form of government. The Council is comprised of a mayor and five (5) council members and is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the Town Manager. The Town Manager is responsible for carrying out the policies and ordinances of the Council, for overseeing the day-to-day operations of the Town and appointing and supervising heads of various departments. The Mayor and Town Council members serve two (2) year terms. All elected officials are elected at-large for a two-year staggered term each May. The financial reporting entity (the government) includes all funds of the primary government (i.e. the Town of Westlake), as well as all its component units. Component units are legally separate entities for which the primary government is financially accountable. The following entities are considered blended component units: v Lone Star Public Facilities Corporation is a Texas nonprofit corporation that acts on behalf of the Town to further the public purposes under the Public Facilities Corporation Act, as it’s duly constituted authority and instrumentality. The board of directors, appointed by the Town’s governing body, is comprised of seven members, of whom five must be members of the Town’s governing body. 4B Economic Development Corporation is a Texas nonprofit industrial corporation under the Development Corporation Act of 1979 formed to promote economic development within the Town and the State of Texas to eliminate unemployment and underemployment, and to promote and encourage employment and the public welfare of, for, and on behalf of the Town by developing, implementing, financing, and providing one or more projects defined and permitted under Section 4B of the Act. The board of directors is composed of seven persons appointed by the members of the Town Council. Four of the members of the board of directors are members of the Town Council. Westlake Academy (Academy) is an open-enrollment charter school, as provided by Subchapter D, Chapter 12, of the Texas Education Code. The Town of Westlake (“Charter Holder”) applied for and became the first municipality in Texas to ever receive this special charter designation. The Academy had 825 students in FY 15-16 and serves Kindergarten thru 12th grade. The Academy graduated their first class in FY 09-10. The Board consists of six (6) trustees and is appointed by the Town’s governing body. Currently, all members of the board of trustees are members of the Town’s governing body. The Academy’s year-end is August 31 Discretely presented component units are legally separate entities and not part of the primary government’s operations. These component units are as follows: Texas Student Housing Corporation- Denton Project, Texas Student Housing Authority-Jefferson Commons at Town Lake Project, Texas Student Housing Corporation-College Station Project, and Texas Student Housing Authority. Services Provided Westlake’s value proposition is found in the excellent municipal and academic services that are provided to our residents – all at an exceptional price! Our community has high expectations for service delivery – both in accessibility, responsiveness, financial stewardship, amenities, distinctive developments, open spaces and education. Major services provided under the general government and enterprise functions are: Fire and emergency medical services, police, water and sewer utility services, park and recreational facilities, street improvements, education and administrative services. The Town utilizes a combination of direct service delivery along with out-sourced services in its service delivery mix. The decision as to which service to deliver directly versus out-sourcing is based on analysis of cost-effectiveness, citizen responsiveness, and customer service quality. Economic Conditions and Outlook Local Challenges Involving Residential Growth The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the environment within which the Town operates. The Town staff is aware that the Town of Westlake does not create wealth, but instead, is entrusted with public dollars collected on behalf of our citizens. We are stewards who are fully vested in the success of the Town of Westlake and Westlake Academy. We exist as a municipal corporation for one reason and one reason only: to prioritize and deliver the best services possible with the resources provided to achieve vi an exceptional quality of life. This is a challenge the Staff takes very seriously, one that we pursue with vigor every day. Over the previous fiscal year, the Town has achieved and/or is continuing to work toward important initiatives and projects that will allow us to balance our “distinctive development, trails, and quality of life amenities amidst an ever-expanding urban landscape.” Because of the current and potential development within our community, it is both an exciting and challenging time in Westlake! Adhering to the Town’s Vision is the key to Westlake’s success for managing the significant growth. While growth is occurring, it also presents very clear challenges for our community if we wish to continue to maintain the elements of Westlake that make it so unique. These community attributes include our beautiful neighborhoods with top quality residences, strong aesthetic standards, a top-tier Town owned K-12 charter school, open space preservation, streetscaping, emphasis on proactive planning, and maintaining our view corridors. The “sea of change” that surrounds Westlake involves not only our current internal development but also the current growth opportunities planned for the State Highway (SH 114) corridor in northeast Tarrant County and into southern Denton County. The communities that surround us are undergoing significant development as well, which adds to the “sea of change” affecting Westlake. The impact of anticipated growth along the SH 114 corridor is described by Mr. Robin McCaffrey (AIA and APA) of MESA Planning, the firm that was engaged to update the Town’s latest Comprehensive Plan, Forging Westlake. According to Mr. McCaffrey: Westlake, with the arrival of the Charles Schwab Corporation project, is crossing through a portal into the future suggested by the Town’s 2015 Comprehensive Plan. In conjunction with Fidelity and other financial services in and around Westlake, Westlake hosts nearly 4 million square feet of an industry type (i.e. financial services), constituting a significant Industry Cluster. At this scale, the aggregation of a single industrial code activity is important enough to attract vertical and horizontal expansion, which further substantiates Westlake’s importance as a financial services center in the Dallas/ Fort Worth Metroplex. Bringing the above described importance to the Town’s other advantages of proximity, makes Westlake a singularly important center for growth and development going forward.  Westlake’s Permanent Population Growth: This is the portion of our population considered to be our permanent residents. From the 1990 population of 185 to 2018’s population of 1,383 represents an increase of 747% equal to 1,198 additional residents. We will need to continue to monitor and plan for the continued increase in these numbers considering our Comprehensive Plan’s (Forging Westlake) forecast of approximately 7.21% annual population growth between now and 2040. This would bring us to around 7,000 residents.  Traffic Demands Due to Growth in Westlake and Surrounding Areas: The four (4) municipalities surrounding Westlake (Keller, Southlake, Trophy Club, and Roanoke) are projected to have a combined population of 215,000 people by 2040. The growth in these communities will generate additional traffic that commutes through our Town. With our projected level of residents (7,000) and the existing zoning entitlements (if executed) we would expect an estimated 300,000 vehicle trips per day. Local impacts associated with this level of growth affect our street infrastructure, water and sewer system capital investment requirements, as well as demand for daily municipal services. Policies established in Forging Westlake will be essential for addressing this issue via the Town’s thoroughfare plan as it pertains to development which occurs in the community.  Housing Start Increases and Maintaining Westlake’s High-Quality Residential Housing: We continue to see strong single-family residential construction demand. This has been demonstrated in vii Granada, Carlyle Court, Quail Hollow, Vaquero, and Terra Bella. Additionally, the infrastructure for a new single-family residential development, The Knolls is under construction. Also, the mixed-use development called Entrada continues to progress with residential and commercial projects under construction and making significant headway. Entrada’s infrastructure is being financed with a Town approved Public Improvement District (PID), the bonds for which are paid back by assessments on development within Entrada. When the infrastructure is complete, it will add (over time) a wide variety of 322 residential units to Westlake - ranging from single family homes, to villas, to town homes. Our residential construction activity shows a steady increase in building permits for housing which has occurred since we have emerged from the 2008-09 recession. Housing starts in Westlake, due to the high value of our homes, add taxable value to our taxing base; however, this also impacts the demand for municipal services, especially the Town’s charter school, Westlake Academy. As the area economy continues to perform well, and Westlake and our surrounding communities continue to experience commercial development, this will further attract individuals who work for and own these businesses. In turn, these individuals will need housing. As our housing stock expands in response to these forces, we will need to manage our distinctive developments to ensure we maintain our community as an ‘oasis of natural beauty’ and achieve high-end housing options as identified in the Housing element of Forging Westlake. Local Challenges Involving Commercial Growth  Commercial Development, Economic Development, and Daytime Population Growth: Because Westlake is the home to major corporate office campuses, its Monday-Friday daytime population is growing and is conservatively estimated to be approximately 10,000 - 12,000 individuals. These office complexes are comprised of notable corporate clients that include Deloitte LLP, Fidelity Investments and Charles Schwab.  Charles Schwab Corporate Campus: Since the announcement of their regional corporate campus in 2016, Phase 1 will consist of a 500,000-sq. ft. office building and parking garage which is nearing completion and expected to be occupied in the fall of 2019. Phase 2 was announced in 2018 and will comprise of an additional 500,000 sq. ft office building and parking garage. Adjacent to the Schwab campus will be a mixed-use development, which Hillwood Properties will develop near the intersection of SH170 and SH114. The campus will initially have approximately 1,500-1,900 employees and should round out with an estimated 6,000 employees when all phases are complete  Commercial Development in Entrada: The mixed-use development called Entrada, located at FM1938/Davis Blvd. and SH114, will also create growth in our commercial tax base. During the past budget year additional commercial buildings have been approved by the Town for the development. A CVS Pharmacy is open for business as well as a Primrose Private School. Starbucks and restaurants are scheduled to open by the end of 2019. Other commercial uses include various retail, restaurants, amphitheater and hotels.  Economic Development: The Town has also pursued the ideas advanced in the Economic Development element of Forging Westlake. That is, where appropriate, to pursue businesses that ultimately expand the Town’s tax base with high quality office buildings, and at the same time, compliments our financial services business cluster which has already been created through our corporate residents of Fidelity, Deloitte and Charles Schwab. Further, we pursue the types of viii businesses interested in high quality office campus development and creating well-paying positions for employees. With the completion of Charles Schwab along with TD AmeriTrade’s complex in Southlake, we will be well on our way to becoming a financial services corridor within the DFW Metroplex.  Balanced Growth to Impact Cost of Municipal Services: Likewise, the ability to fund municipal services utilizing a cost-effective revenue format requires balanced growth that provides for commercial development and a diversified tax base, while maintaining the community’s open space and bucolic atmosphere. At the same time, we must continue to ensure the policy direction of the Town is focused on growth paying for the infrastructure for which it creates the demand. Staff will continue to monitor our corporate stakeholders and attempt to identify avenues to strengthen these relationships and assist in attracting new corporations to Westlake. The expansion of commercial development will continue to grow Westlake’s daytime population. Local Challenges - Other There are other local challenges involving both financial and physical site planning, strategic forecasting, residential feedback through our survey instruments and the Town’s public charter school, Westlake Academy. As we look to regional or state issues and opportunities, we will monitor these issues among others:  Pending ad valorem property tax cap proposed by the Governor – as presented, the proposal would restrict the Council’s ability to respond locally to the needs of our community. Staff will continue to monitor any legislation put forward for consideration and advise both the community and the Council as updates or changes occur.  Water usage and demand – our staff team will continue to work with the City of Fort Worth on the Phase 2 waterline construction that will help secure our current and future water needs for Westlake.  Westlake’s residential growth impact on the Academy: Planning for Academy growth in the face of residential development continues to be a challenge. Wherever possible, the Town has entered economic development agreements with residential developers to provide funding for Westlake Academy facilities to lessen the impact of their residential development on the school’s enrollment. Town staff is currently updating Westlake Academy Facility Master Plan to determine student population and facility needs.  Pursuit of Infrastructure and Services Reinvestment While Combating Certain Cost Increases: We must also reinvest in maintaining our infrastructure. However, with growth comes the need to allocate capital spending in new public buildings and our water and sewer utility. An example of a key project needed to deal with the Town’s growth, is a Phase 2 water transmission line to our wholesale water provider. This is a costly project which required a significant investment in our water system. As our community evolves staff will keep a close eye on partnerships and/or opportunities that will help foster mobility within the community without compromising the design standards and expectations of our residents. East / West traffic continues to be an area of concern along with the ability of our surrounding highway capacity for transient vehicles. Town staff is working with TxDOT regarding plans for construction of service roads between FM 1938 and Dove Road in Southlake. ix Users of this document, as well as others interested in the programs and services offered by the Town of Westlake, are encouraged to read the Town's Fiscal Year 2017-18 Budget. The budget details the Town's long-term goals and financial policies and describes program accomplishments and initiatives. Other Information The Government Finance Officers Association of the United States of America and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Westlake for its comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 2017. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report (CAFR) continues to meet the Certificate o f Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate. In addition, we also received our eleventh GFOA Distinguished Budget Presentation Award for the fiscal year beginning October 1, 2017 for our municipal budget and the ninth year for our educational services budget for Westlake Academy, a component unit of the Town. To qualify for the Distinguished Budget Presentation Award, the Town and Academy budget documents had to be judged proficient as a policy document, a financial plan, an operations guide, and a communications device. Westlake Academy has also received recognition from the Association of School Business Officials International as a recipient of the International Award for Budget Excellence for the past seven years. Acknowledgements The preparation of this report could not be accomplished without the efficient and dedicated services of the entire staff of the Finance Department. Appreciation is expressed to Town employees throughout the organization, especially those employees who were instrumental in the successful completion of this report. The staff would also like to thank the Mayor and Town Council for their conservative leadership and their support in planning and conducting the financial operations of the Town in a responsible and progressive manner. Respectfully Submitted, Debbie Piper, CPA Finance Director x xi xii xiii Town of Westlake Elected and Appointed Officials Laura Wheat Alesa Belvedere Michael Barrett Rick Rennhack Carol Langdon Wayne Stoltenberg Elected Officials Mayor Laura Wheat Mayor Pro-Tem Carol Langdon Council Member Alesa Belvedere Council Member Michael Barrett Council Member Rick Rennhack Council Member Wayne Stoltenberg Appointed Officials TOM BRYMER Town Manager AMANDA DEGAN GINGER AWTRY Assistant Town Manager Director of Communications and Community Affairs DEBBIE PIPER KELLY EDWARDS Director of Finance Town Secretary RON RUTHVEN TODD WOOD Director of Planning and Development Director of Human Resources and Administrative Services JARROD GREENWOOD RICHARD WHITTEN Director of Public Works Fire Chief TROY MEYER JASON POWER Director of Facilities Maintenance and Parks and Recreation Director of Information Technology 1 2 Financial Section 3 Austin | Conroe | Dallas | Fort Worth | Houston Los Angeles | Midland | New York City | San Antonio Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 | Dallas, Texas 75201 Main: 972.490.1970 | Fax: 972.702.8321 CPAs AND ADVISORS | WEAVER.COM 4 Independent Auditor’s Report To the Honorable Mayor and Members of Town Council Town of Westlake, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business - type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Town of Westlake (the Town) as of and for the year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that ar e appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Town, as of September 30, 2018, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. The Honorable Mayor and Members of Town Council Town of Westlake, Texas 5 Emphasis of Matters Regarding Going Concern The accompanying financial statements have been prepared assuming the discretely presented component units will continue as going concerns. As discussed in Note 17 to the financial statements, the discretely presented component units are in default on their bonds due to failure to meet certain bond covenants. This gives bond holders the right to accelerate and demand payment on the bonds in full. This condition raises substantial doubt about the discretely presented component units’ ability to continue as going concerns. Management’s plans regarding these matters are also described in Note 1 7. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter. Change in Accounting Principles As discussed in Note 22 to the financial statements, in 2018, the Town adopted new accounting guidance, GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Ben efits Other Than Pensions. Beginning net position has been restated to reflect the change in accounting principle for implementation of this Statement. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 10 through 20 and budgetary comparison information and pension and OPEB schedules on pages 92 through 106 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any ass urance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual fund statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain addi tional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The Honorable Mayor and Members of Town Council Town of Westlake, Texas 6 The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 19, 2019 on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance. WEAVER AND TIDWELL, L.L.P. Dallas, Texas March 19, 2019 7 8 Management’s Discussion and Analysis 9 10 Management’s Discussion and Analysis Management of the Town of Westlake offers the readers of the Town’s financial statements this narrative overview and analysis of the financial activities and financial position of the Town for the fiscal year ended September 30, 2018. Financial reporting is limited in its ability to provide the “big picture” but rather focuses on financial position and changes in financial position . In other words, are revenues and/or expenditures higher or lower than the previous year? Has the net position (containing both short- term and long-term assets and liabilities) or fund balances (the current “spendable” assets less current liabilities) of the government been maintained? Readers are encouraged to consider the information presented here in conjunction with the additional information furnished in the letter of transmittal (pages iii - ix of this report) and the statistical section (pages 122 - 140 of this report) as well as information in the annual operating budget, along with other community information found on the Town’s website at www.westlake-tx.org. It should be noted that the Independent Auditor’s Report describes the auditors’ association with the various sections of this report and that all the additional information from the website and other Town sources are unaudited. FINANCIAL HIGHLIGHTS  The assets and deferred outflows of resources of the Town exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $55,752,321 (Net position). This number must be viewed within the context that the vast majority of the Town's net position of $52,922,640 (95.0%) is its investment in capital assets and that most capital assets in a government entity do not directly generate revenue nor can they be sold to generate liquid capital. The net position restricted for specific purposes totaled $1,077,646 (2%). The remaining amount, $1,752,035 (3%), represents unrestricted net position.  As of the close of the current fiscal year, the Town of Westlake's governmental funds reported combined ending fund balances of $20,038,393, which is a decrease of $7,769,725 in comparison with the prior year. Within this total, $9,545,013 is non-spendable, restricted, committed or assigned by management or council.  At the end of the current fiscal year, fund balance for the general f und was $10,796,248 a decrease of $141,244 in comparison with the prior year. Of this total fund balance, $10,493,380 is unassigned. This represents 136% of the total general fund expenditures and is equivalent to 428 operating days.  The Town's capital assets (net of accumulated depreciation) increased by $6,630,735. This is due in large part to an increase of $7,510,981 in construction in progress accounts. This increase is primarily due to the infrastructure construction expenditures related to the Public Improvement District (PID) and the Fire/EMS Complex .  The Town's long-term debt decreased by $1,810,692 in total, due to the scheduled repayment of principal on outstanding bonded debt. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the Town's basic financial statements. The Town's basic financial statements are comprised of the following three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains supplementary information in addition to the basic financial statements themselves. 11 Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Town's finances, in a manner similar to a private-sector business. The government-wide financial statements are prepared utilizing the economic resources measurement focus and the accrual basis of accounting. The statement of net position presents information on all the Town's assets and deferred outflows of resources and liabilities and deferred inflows of resources with the difference between the two reported as net position. Over time, increases or decreases in the Town's net position serves as a useful indicator of whether the financial position of the Town is improving or weakening. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All the revenues and expenses are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Both government-wide financial statements distinguish functions of the Town that are principally supported by sales taxes, property taxes, and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town include general government, public safety, culture and recreation, economic development, public works, visitor services and education. The business-type activities of the Town include water/sewer and cemetery. The government-wide financial statements include not only the Town (known as the primary government), but also discretely presented component units including all the Texas Student Housing entities. Financial information for these component units is reported separately from the financial information presented for the primary government itself. In addition, the Town has the following blended component units: Lone Star Public Facilities Corporation, 4B Economic Development Corporation, and Westlake Academy, an open enrollment charter school owned and operated by the Town of Westlake. See pages 42 – 43 of the "Financial Section" for detail on these entities. Fund Financial Statements A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Below are the three types of funds. Governmental funds - Governmental funds are used to account for essentially the same functions reported as government activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financial requirements. Because the foc us of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, the reader may better understand the long -term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 12 The Town maintains eleven individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General, Westlake Academy, Debt Service, Capital Projects, and Solana PID Capital Projects funds, all of which are presented as major funds . Data from the other funds (Visitors Association, Economic Development, Lone Star Public Facilities Corporation , Public Arts Contribution, Westlake Academy Expansion Capital Projects and Westlake 4B Economic Development Corporation Funds) are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The Town adopts an annual appropriated budget for all funds, except the Capital Projects, Solana PID Capital Project, Public Arts Contribution, and Westlake Academy Expansion funds which are project- length based budgets. A budgetary comparison statement has been provided for all appropriate funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 27 - 33 of this report. Proprietary funds - There are two types of proprietary funds, Enterprise Funds and Internal Service Funds. An Enterprise Fund is the only proprietary fund current ly maintained by the Town. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses enterprise funds to account for its water and sewer activities and its cemetery activities. All activities associated with providing such services are accounted for in this fund, including administration, operation, maintenance, debt service, capital improvements, billing and collection. The Town's intent is that the costs of providing the services to the general public on a continuing basis is financed through user based charges in a manner similar to a private enterprise. The Town has no Internal Service Funds (fund to report activities that provide supplies and services for the Town's other programs and activities, i.e. self-insurance and fleet management). The basic proprietary fund financial statements can be found on pages 34 - 36 on this report. Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the Town's own programs. The accounting used for fiduciary funds is similar to the accounting used for proprietary funds. The Town of Westlake maintains one fiduciary fund, the PID Agency (Debt Service) Fund. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 42 - 89 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents schedules that further support the information in the financial statements. The schedules are presented immediately following the notes to the fi nancial statements and can be found on pages 92 - 106. 13 Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of the government’s financial position. In the case of the Town, assets and deferred outflows exceeded liabilities and deferred inflows by $55,752,321 at the close of the most recent fiscal year. The Town’s combined net position changed from a year ago, decreasing $4,132,985, inclusive of the cumulative effect of the change in accounting principle, from $59,885,306 to $55,752,321. Our analysis below focuses on the net position (Table 1) and changes in net position (Table 2) of the Town’s governmental and business-type activities. The largest portion of the Town’s net position, $52,922,640 (95.0%), reflects its investment in capital assets (e.g. land, buildings, equipment, improvements, construction in progress, and infrastructure), less any debt used to acquire capital assets still outstanding. The Town uses these capital ass ets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the Town’s net position, $1,077,646 (1.9%), represents resources that are subject to external or internal restrict ions on how they may be used. The remaining balance of $1,752,035 (3.1%) represents unrestricted net position which is available for the Town’s ongoing expenses. Table 1 Condensed Statement of Net Position At September 30, 2018 and 2017 2018 2017 2018 2017 2018 2017 Current and other assets 23,067,847$ 30,062,328$ 4,952,871$ 5,254,725$ 28,020,718$ 35,317,053$ Capital assets 75,098,124 67,940,280 11,163,062 11,690,171 86,261,186 79,630,451 Total Assets 98,165,971 98,002,608 16,115,933 16,944,896 114,281,904 114,947,504 Deferred outflows of resources 2,031,443 2,446,574 68,448 94,162 2,099,891 2,540,736 Noncurrent liabilities 40,439,383 39,936,334 6,064,710 6,333,158 46,504,093 46,269,492 Other liabilities 3,168,518 2,402,774 9,483,304 8,869,026 12,651,822 11,271,800 Total Liabilities 43,607,901 42,339,108 15,548,014 15,202,184 59,155,915 57,541,292 Deferred inflows of resources 1,444,570 61,642 28,989 - 1,473,559 61,642 Net investments in capital assets 47,629,452 46,499,873 5,293,188 5,583,570 52,922,640 52,083,443 Restricted 1,077,646 2,034,916 - - 1,077,646 2,034,916 Unrestricted 6,437,845 9,513,643 (4,685,810)(3,746,696)1,752,035 5,766,947 Total Net Position 55,144,943$ 58,048,432$ 607,378$ 1,836,874$ 55,752,321$ 59,885,306$ Net Position Governmental Activities Business-type Activities Total Assets Liabilities 14 Table 2 Changes in Net Position For the Years Ended September 30, 2018 and 2017 2018 2017 2018 2017 2018 2017 Program revenues Fees, fines and charges for services 3,195,972$ 4,471,161$ 5,824,258$ 4,825,599$ 9,020,230$ 9,296,760$ Operating grant and contributions 7,044,597 8,047,113 - - 7,044,597 8,047,113 Capital grants and contributions 424,948 3,485,255 1,271 - 426,219 3,485,255 General revenues Taxes Sales taxes 6,003,605 4,650,744 - - 6,003,605 4,650,744 Property taxes 1,629,640 1,576,750 - - 1,629,640 1,576,750 Hotel occupancy taxes 849,167 751,601 - - 849,167 751,601 Mixed beverage taxes 62,347 68,432 - - 62,347 68,432 Franchise taxes 779,506 818,423 - - 779,506 818,423 Interest on investments 356,076 182,095 79,961 28,684 436,037 210,779 Miscellaneous 215,076 278,071 - 50,000.00 215,076 328,071 Total revenues 20,560,934 24,329,645 5,905,490 4,904,283 26,466,424$ 29,233,928$ General governmental 4,776,131 5,716,302 - - 4,776,131 5,716,302 Public safety 3,133,733 3,063,003 - - 3,133,733 3,063,003 Culture and recreation 184,685 217,489 - - 184,685 217,489 Economic development 469,852 163,578 - - 469,852 163,578 Public works 1,820,908 1,634,549 - - 1,820,908 1,634,549 Visitor services 885,654 737,071 - - 885,654 737,071 Education 6,568,453 8,566,295 - - 6,568,453 8,566,295 Interest on long-term debt 1,184,818 1,401,199 - - 1,184,818 1,401,199 Water and sewer - - 7,049,946 4,893,075 7,049,946 4,893,075 Cemetery - - 9,754 8,021 9,754 8,021 Total expenses 19,024,234 21,499,486 7,059,700 4,901,096 26,083,934 26,400,582 Increase (decrease) in net position before transfers 1,536,700 2,830,159 (1,154,210) 3,187 382,490 2,833,346 Transfers 71,466 169,316 (71,466)(169,316)- - Change in net position 1,608,166 2,999,475 (1,225,676) (166,129) 382,490 2,833,346 Net position, beginning 58,048,432 55,048,957 1,836,874 2,003,003 59,885,306 57,051,960 Cumulative effect of a change in accounting principle (4,511,655) - (3,820) - (4,515,475) - Net position, ending 55,144,943$ 58,048,432$ 607,378$ 1,836,874$ 55,752,321$ 59,885,306$ Expenses Governmental Activities Business-type Activities Total Revenues 15 Governmental activities: Exclusive of the cumulative effect of implementation of GASB Statement No. 75, Governmental activities increased the Town's net position by $1,608,166 (8%). Unrestricted net position, the part of net position that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, other legal requirements, and/or Coun cil or management's decision, decreased by $3,075,798. Total revenues for governmental activities decreased by $3,768,711 when compared to the prior year. General revenue had an increase of $1,569,301, while program revenues had a decrease of $5,338,012. Program revenues  Fees, fines and charges for services decreased $1,275,189. The permit and review fees received from Charles Schwab & Co. in the prior year were the major contributor to this decrease from prior year.  Operating Grants and Contributions decreased by $1,002,516 mostly due recording the State’s on-behalf portion of the Academy’s OPEB expense which, in turn, decreased both operating grants and contributions and expenses.  Capital Grants and Contributions decreased by $3,060,307 with the major portion being attributed to the donation of land for the Fire/EMS station received in the prior year and revenues restricted for the benefit of Westlake Academy based on economic development agreements. General revenues  Interest on Investments increased by $173,981 due to higher interest rates.  Sales tax increased by $1,352,861 primarily due to an economic development situs agreement in addition to an increase of $52,890 in property tax.  Hotel occupancy taxes increased by $97,566 . Most of the increase (62%) is for Marriott Hotel occupancy tax at $60,754 and a 37% increase of $36,465 for Deloitte hotel occupancy tax. There have been several new hotels in the area that are competing with the Marriott. Their increase is due to efforts being made to retain and attract additional meetings and tourist stays.  Franchise fees decreased by $38,917 primarily due to less receipts from AT&T and Verizon. Expenses  Total expenses for governmental activities decreased by $2,475,252 or approximately 12%.  General Government expenditures reflected a 16% decrease of $940K; a decrease in pension expense is the primary reason.  Education expenditures decreased by 23% ($2M) which was primarily due to a decrease in pension and OPEB expenses for the Teachers Retirement Plan. 16 Business-type Activities: The net position of our business-type activities ended fiscal year 2018 at $607,378 compared with $1,836,874 in 2018. This represents a decrease in net position of $1,229,496, or 67% less than the prior fiscal year, inclusive of the cumulative effect of the change in accounting principle . Revenues (Charges for Services) for business-type activities for the fiscal year ending September 30, 2018 were $5,824,258; an increase of $998,659 or 21%. Operating expenses for the business-type activities for the fiscal year ending September 30, 2018 were $7,059,700; an increase of $2,158,604 or 44%. This increase was primarily attributed to a higher cost for wastewater treatment and water purchases. Financial Analysis of the Town's Funds As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental funds. The focus of the Town's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a town's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town's governmental funds reported combined ending fund balances of $20,038,393; a decrease of $7,769,725 in comparison with the prior year. Approximately 52% of this total ($10,493,380) constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance is non -spendable, restricted, committed or assigned to indicate that it is not available for new spending because it has already bee n committed. The following tables present a summary of general, special revenue, capital project, and debt service fund revenues and expenditures for the fiscal year ended Septemb er 30, 2018, and the amount and percentage of increases and decreases in relation to the prior year. Table 3 Summary of Governmental Funds Revenues Increase Percent 2017-18 Percent (Decrease)Increase Amount Of Total From 2016-17 (Decrease) Taxes Sales taxes 6,003,605$ 27.1%1,352,861$ 29.1% Property taxes 1,626,696 7.3%48,881 3.1% Mixed beverage taxes 62,347 0.3%(6,085)-8.9% Hotel occupancy taxes 849,167 3.8%97,566 13.0% Franchise taxes 779,506 3.5%(38,917)-4.8% Subtotal - Taxes 9,321,321 42.0%1,454,306 18.5% State program 7,217,383 32.5%614,025 9.3% Federal program 114,797 0.5%(25,355)-18.1% Interest income 356,076 1.6%173,981 95.5% Building permits and fees 2,314,933 10.4%(1,206,753)-34.3% Fines and penalties 633,318 2.9%(40,398)-6.0% Intergovernmental - 0.0%- 0.0% Contributions 494,131 2.2%(234,756)-32.2% Miscellaneous 1,735,201 7.9%(1,128,600)-39.4% Total Revenues 22,187,160$ 100.0%(393,550)$ -1.7% Revenues 17 Table 4 Summary of Governmental Funds Expenditures Increase Percent 2017-18 Percent (Decrease)Increase Amount Of Total From 2016-17 (Decrease) General government 3,672,933$ 12.2%(923,894)$ -20.1% Public safety 2,992,727 10.0%308,483 11.5% Culture and recreation 183,816 0.6%19,096 11.6% Economic development 469,852 1.6%306,274 187.2% Public works 675,550 2.2%(108,729) -13.9% Visitor services 875,322 2.9%158,267 22.1% Education 9,012,348 30.0%193,174 2.2% Capital outlay 9,407,447 31.3%2,324,603 32.8% Debt services 2,738,356 9.0%140,005 5.4% Total Expenditures 30,028,351$ 100.0%2,417,279$ 8.8% Expenditures Below are summaries and explanations of the changes in fund balances from fiscal year 2017 to fiscal year 2018 of the Governmental Funds that are contained in the above totals. General Fund - At the end of the current fiscal year, fund balance for the general fund was $10,796,248, a decrease of $141,244 in comparison with the prior year . Of this total, $10,493,380 is unassigned. This represents 117% of the total general fund expenditures including transfers out to other funds related to operations of $1,226,268. This is equivalent to 428 operating days.  Revenues and transfers in decreased $851K from FY17 to FY18; The Planning and Development department realized the biggest decrease in revenues with the majority ($1.4M) coming from building permits, inspection/plan review fees and reforestation tree escrow received in the prior year. This decrease was offset by an increase in interest income of $169K and an increase in General sales and use tax revenue of $727K due to an economic development situs agreement.  Expenditures and transfers out increased $580K from FY17 to FY18; Maintenance and replacement projects decreased $698K due to one-time purchases for furniture and equipment in the prior year for the new town hall building. This was offset by an increase of $295K in payroll and related taxes, insurance and retirement due to additional employees and market adjustments. Transfers out to the Capital Project fund increased by $950K and transfers out to the Debt Service fund increased $178K. Westlake Academy - Fund balance increased by $155,950 primarily due to a transfer in from the general fund. Capital Projects Fund - Fund balance decreased by $7,307,360  Fund 405 Municipal Facility Expansion Fund - Fund balance decreased by $7,552,946 largely due to the use of funds for the construction of the Fire/EMS complex. Bond issuance and tax notes were received in prior years for the construction.  Fund 410 Primary Capital Project Fund - Fund balance increased $276,630 due to transfers in from general fund of $950K offset by the use of funds for FM1938 Town Improvements of $274K, the Solana/SH114 Signalization project of $268K and the Outdoor Science project of $213K for Westlake Academy. 18  Fund 412 Westlake Academy Expansion Fund - Fund balance increased by $238,498 due to transfers in from the Economic Development fund. This fund was created to account for proceeds from long- term financing and revenue and expenditures related to authorize construction related to the expansion of Westlake Academy facilities. The original project for this fund was completed in FY 2015. Transfers in will be recorded for lot fee revenue based on an economic development agreement related to lot sales in several residential sub-division in future years. Solana Public Improvement District (PID) Capital Project Fund - Fund balance decreased by $718,677 due to infrastructure construction on the project. This fund was created in FY 2015 to detail the funds contributed based on bond proceeds for the construction of infrastructure for the Entrada development. All infrastructure will be conveyed to the Town upon completion. Proprietary Funds. - The Town's proprietary fund statements provide the same type of information found in the government-wide financial statements with greater detail. Total net position of the Proprietary Funds amounted to $607,378, a decrease of $1,229,496, inclusive of the cumulative effect of the change in accounting principle. General Fund Budgetary Highlights The General Fund budget for fiscal year 2018 was amended in total to increase the net chang e in fund balance from ($1,372,677) to ($641,698), a total increase of $730,979. The amended budget for net revenues was increased by $341K (3.7%) based on anticipated increases in property taxes, ($119K), interest income ($138K) and contributions ($142K). The amended budget for net expenditures was increased by $620K (8%).This increase was primarily due to service expenditures increasing $316K which included PID local costs, consultant and attorney fees, contracted services for Westlake Academy, the Fire Station complex, and the Keller Police contract. Rent and utility costs increased $209K for right of way (ROW) irrigation in the public works department. Project maintenance and replacements costs increased $96K of which the majority is for the purpose of a 77- passenger bus for Westlake Academy The General Fund actual revenue collections/other sources were more than the amended budget by $198K primarily due to an increase in sales taxes in the FY17-18. Actual expenditure costs/other uses were less than the amended budget by $679K due mostly to less than anticipated service expenditures. Capital Assets and Debt Administration Capital Assets. The Town's investment in capital assets for its governmental and business-type activities as of September 30, 2018, totaled $86,261,186 (net of accumulated depreciation). The investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure, and construction in progress. The net increase in the Town's investment in capital assets for the current fiscal year was $6,630,735 or 8% mostly due to additional construction in progress related to the Public Improvement District and the Fire/EMS Complex. 19 Table 5 Town’s Capital Assets (Net of Accumulated Depreciation) 2018 2017 2018 2017 2018 2017 Land 12,446,059$ 12,446,059$ -$ -$ 12,446,059$ 12,446,059$ Capital improvements 10,499,689 9,963,424 9,372,302 9,734,945 19,871,991 19,698,369 Building 25,035,319 25,693,236 25,035,319 25,693,236 Machinery and equipment 928,922 1,160,407 1,403,605 1,536,311 2,332,527 2,696,718 W/W treatments rights - 58,125 89,885 58,125 89,885 Construction in progress 26,188,135 18,677,154 329,030 329,030 26,517,165 19,006,184 Total capital assets 75,098,124$ 67,940,280$ 11,163,062$ 11,690,171$ 86,261,186$ 79,630,451$ Governmental Activities Business-type Activities Total Additional information on the Town's capital assets can be found in Note 4 on pages 56 - 57 of this report. Long-term liabilities - At the end of the current fiscal year, the Town had total long-term debt outstanding of $41,930,973. Of this amount, $34,666,000 represents bonded indebtedness, $162,004 capital leases, $201,727 in loans and $4,913,865 contractual obligations. During the fiscal year 2017-2018, the Town's total debt payable decreased by $1,810,692. This decrease was due to thee scheduled repayment of principal and interest on outstanding bonded debt. Standard & Poor's Ratings Services, a division of McGraw -Hill, Inc. has recently increased the Town's rate from AA+/stable to AAA/stable. Additional information about the rating agency or the significance of the rating provided may be obtained from Standar d & Poor's web site. Additional information on the Town's long-term debt can be found in Note 5 on pages 59 – 63. Table 6 Outstanding Debt at Year-End 2018 2017 2018 2017 2018 2017 General obligation bonds 14,407,000$ 15,267,000$ -$ -$ 14,407,000$ 15,267,000$ Certificates of obligation 19,331,700 19,990,700 927,300 949,300 20,259,000 20,940,000 Contractual obligations - - 4,913,865 5,126,958 4,913,865 5,126,958 Capital leases 162,004 162,004 - - 162,004 162,004 Premium on bonds 1,479,097 1,578,909 28,709 29,881 1,507,806 1,608,790 Notes payable 201,727 238,404 - - 201,727 238,404 Compensated absences 407,160 333,005 72,411 65,504 479,571 398,509 Total long-term debt 35,988,688$ 37,570,022$ 5,942,285$ 6,171,643$ 41,930,973$ 43,741,665$ Governmental Activities Business-type Activities Total The Town’s net pension liability relative to its participation in Texas Municipal Retirement System (TMRS) decreased from $1,476,481 as of September 30, 2017 to $1,062,281 as of September 30, 2018. The Town’s net other post-employment benefits (OPEB) liability relative to its participation in Texas Municipal Retirement System (TMRS) increased from $39,253 as of September 30, 2017 to $56,862 as of September 30, 2018. The Academy’s proportionate share of the Teacher Retirement System (TRS) net pension liability decreased from $1,051,346 as of August 31, 2017 to $895,663 as of August 31, 2018. The Academy’s proportionate share of the Teacher Retirement System (TRS) net OPEB liability decreased from $4,516,574 as of August 31, 2017 to $2,558,314 as of August 31, 2018. 20 Economic Factors and Next Year's Budgets In the FY 2018-2019 adopted budget, the General Fund balance is anticipated to increase by $1.1M. Adopted revenues and transfers in are budgeted to be more than the 2018 actuals by $32.6 (27%) primarily due to large one-time building fees and permits anticipated ($2.4M) as well as additional property tax revenue ($404K). Anticipated expenditures and transfers out are budgeted to be $1.53M (15%) more than the prior year. Payroll increases were approximately $500K (market adjustments, additional employees and staffing changes, increased insurance and benefits. Maintenance and Replacement projects increased by $510K due to anticipated expenditure of (1) upgrades for network storage and equipment, phone system, peripheral devices, and network services (2) maintenance and replacement to Westlake Academy (parking lot, flooring, classroom refurbishments, etc.), and (3) one-time repairs for the reserve ambulance. As stated in the Transmittal Letter, the Town’s budget continues to be impacted by encouraging economic signs. Growth in Westlake, along the SH 114 corridor and with the progress of our new mixed - use development, Entrada, should continue to increase the commercial revenue sources. Additionally, increases are expected in residential-related revenues due to new housing developments. Contacting the Town's Finance Department This financial report is designed to provide our citizens, customers, and investors and creditors with a general overview of the Town's finances and to demo nstrate the Town's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Debbie Piper, Town of Westlake Finance Director, at 817-490-5712 or email at dpiper@westlake-tx.org. 21 22 Basic Financial Statements 23 Town of Westlake Exhibit A-1 Statement of Net Position September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 24 Primary Government Discretely Governmental Business-type Presented Activities Activities Total Component Units Cash and cash equivalents 19,450,048$ 3,892,164$ 23,342,212$ 4,520,010$ Receivables (net of allowance)3,184,768 700,669 3,885,437 290,150 Inventories - 93,608 93,608 - Other assets 75,650 - 75,650 66,801 Restricted cash and cash equivalents 357,381 266,430 623,811 3,375,397 Capital assets: Land and construction in progress 38,634,194 329,030 38,963,224 5,099,597 Buildings and improvements 48,441,613 14,899,416 63,341,029 52,590,312 Wastewater treatment rights - 635,199 635,199 - Machinery and equipment 4,798,349 3,560,780 8,359,129 4,690,979 Less accumulated depreciation (16,776,032) (8,261,363) (25,037,395) (31,775,360) Total capital assets 75,098,124 11,163,062 86,261,186 30,605,528 Total assets 98,165,971 16,115,933 114,281,904 38,857,886 Deferred outflows of resources - TRS OPEB 46,603 - 46,603 - Deferred outflows of resources - TMRS OPEB 8,041 988 9,029 - Deferred outflows of resources - TRS pension 509,509 - 509,509 - Deferred outflows of resources - TMRS pension 568,794 67,460 636,254 - Deferred loss on refunding 898,496 - 898,496 - Total deferred outflows of resources 2,031,443 68,448 2,099,891 - Accounts payable 3,018,263 382,732 3,400,995 454,330 Customer deposit payable - 216,430 216,430 - Unearned revenue 3,260 369,062 372,322 631,780 Accrued interest payable 146,995 8,515,080 8,662,075 29,801,770 Noncurrent liabilities: Due within one year Long-term debt 1,766,131 136,306 1,902,437 - Compensated absences 40,716 7,241 47,957 - Due in more than one year Long-term debt 33,815,397 5,733,568 39,548,965 51,237,586 Compensated absences 366,444 65,170 431,614 - TRS net OPEB liability 2,558,314 - 2,558,314 - TMRS total OPEB liability 50,642 6,220 56,862 - TRS net pension liability 895,663 - 895,663 - TMRS net pension liability 946,076 116,205 1,062,281 - Total liabilities 43,607,901 15,548,014 59,155,915 82,125,466 Deferred inflows - TRS OPEB 1,070,148 - 1,070,148 - Deferred inflows - TRS pension 137,845 - 137,845 - Deferred inflows - TMRS pension 236,577 28,989 265,566 - Total deferred inflows of resources 1,444,570 28,989 1,473,559 - Net investment in capital assets 47,629,452 5,293,188 52,922,640 (20,632,058) Restricted for: Tourism 781,775 - 781,775 - Construction 78,557 - 78,557 - Court security and technology 203,173 - 203,173 - Future projects 14,141 - 14,141 - Unrestricted 6,437,845 (4,685,810) 1,752,035 (22,635,522) Total net position 55,144,943$ 607,378$ 55,752,321$ (43,267,580)$ NET POSITION ASSETS LIABILITIES DEFERRED INFLOWS OF RESOURCES DEFERRED OUTFLOWS OF RESOURCES Town of Westlake Statement of Activities For the Year Ended September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 25 Program Revenues Primary Government Charges for Operating Grants Capital Grants Expenses Services and Contributions and Contributions PRIMARY GOVERNMENT Governmental activities: General government 4,776,131$ 137,805$ -$ 4$ Public safety 3,133,733 782,833 37,238 - Cultural and recreation 184,685 - 31,945 - Public works 1,820,908 2,027,613 - 224,944 Economic development 469,852 - - 200,000 Visitor services 885,654 - - - Education 6,568,453 247,721 6,975,414 - Interest on long-term debt 1,184,818 - - - Total governmental activities 19,024,234 3,195,972 7,044,597 424,948 Business-type activities: Water and sewer 7,049,946 5,794,818 - - Cemetery 9,754 29,440 - 1,271 Total business-type activities 7,059,700 5,824,258 - 1,271 Total primary government 26,083,934$ 9,020,230$ 7,044,597$ 426,219$ Discretely Presented Component Units 15,007,677$ 9,360,433$ -$ -$ GENERAL REVENUES AND TRANSFERS Taxes: Sales taxes Property taxes Hotel occupancy taxes Mixed beverage taxes Franchise taxes Interest Income Miscellaneous Transfers Total general revenues and transfers Change in net position NET POSITION, beginning of year Cumulative effect of change in accounting principle NET POSITION, end of year Functions/Programs Exhibit A-2 26 Primary Government Discretely Governmental Business - Type Presented Activities Activities Total Component Units (4,638,322)$ -$ (4,638,322)$ -$ (2,313,662) - (2,313,662) - (152,740) - (152,740) - 431,649 - 431,649 - (269,852) - (269,852) - (885,654) - (885,654) - 654,682 - 654,682 - (1,184,818) - (1,184,818) - (8,358,717) - (8,358,717) - - (1,255,128) (1,255,128) - - 20,957 20,957 - (1,234,171) (1,234,171) - (8,358,717)$ (1,234,171)$ (9,592,888)$ -$ -$ -$ -$ (5,647,244)$ 6,003,605 - 6,003,605 - 1,629,640 - 1,629,640 - 849,167 - 849,167 - 62,347 - 62,347 - 779,506 - 779,506 - 356,076 79,961 436,037 93,304 215,076 - 215,076 - 71,466 (71,466) - - 9,966,883 8,495 9,975,378 93,304 1,608,166 (1,225,676) 382,490 (5,553,940) 58,048,432 1,836,874 59,885,306 (37,713,640) (4,511,655) (3,820) (4,515,475) - 55,144,943$ 607,378$ 55,752,321$ (43,267,580)$ Net (Expense) Revenue and Changes in Net Position Town of Westlake Balance Sheet Governmental Funds September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 27 Debt Westlake Service General Academy Fund ASSETS AND DEFERRED OUTFLOWS OF RESOURCES: Cash and cash equivalents 9,151,702$ 728,468$ 31,346$ Receivables : Property taxes 6,889 - 1,041 Accounts receivable 1,495,199 794,795 - Due from other funds 487,121 - - Prepaid items 19,253 53,081 - Restricted cash and cash equivalents - - - TOTAL ASSETS 11,160,164 1,576,344 32,387 DEFERRED OUTFLOWS OF RESOURCES Deferred contributions 323,439 - - Total deferred inflows of resources 323,439 - - Total assets and deferred outflows of resources 11,483,603$ 1,576,344$ 32,387$ LIABILITIES, DEFFERED INFLOWS OF RESOURCES AND FUND BALANCE: Liabilities: Accounts payable 680,465$ 131,707$ 2,548$ Unearned revenue - - Due to other funds - - - Total liabilities 680,465 131,707 2,548 DEFERRED INFLOWS OF RESOURCES Unavailable contributions - 323,439 - Unavailable resources - property taxes 6,890 - 1,041 Total deferred inflows of resources 6,890 323,439 1,041 FUND BALANCES Nonspendable: Prepaid items 19,253 53,081 - Restricted for: Tourism - - - Capital items - - - Court security, technology, and Bonds 203,173 - - Debt service - - 28,798 Future projects - - - Education - 1,068,117 - Committed for: Street and tree improvements 80,442 - - Unassigned 10,493,380 - - Total fund balances 10,796,248 1,121,198 28,798 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 11,483,603$ 1,576,344$ 32,387$ Exhibit A-3 28 Solana PID Nonmajor Total Capital Capital Governmental Governmental Projects Projects Funds Funds 7,115,798$ -$ 2,422,734$ 19,450,048$ - - - 7,930 - - 886,844 3,176,838 - - - 487,121 - - 3,316 75,650 - 357,381 - 357,381 7,115,798 357,381 3,312,894 23,554,968 - - - 323,439 - - - 323,439 7,115,798$ 357,381$ 3,312,894$ 23,878,407 1,553,281$ 278,824$ 371,438$ 3,018,263$ - - 3,260 3,260 - - 487,121 487,121 1,553,281 278,824 861,819 3,508,644 - - - 323,439 - - - 7,931 - - - 331,370 - - 3,316 75,650 - - 781,775 781,775 5,562,517 78,557 1,651,843 7,292,917 - - - 203,173 - - - 28,798 - - 14,141 14,141 - - - 1,068,117 - - - 80,442 - - - 10,493,380 5,562,517 78,557 2,451,075 20,038,393 7,115,798$ 357,381$ 3,312,894$ 23,878,407$ Town of Westlake Exhibit A-4 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 29 Total fund balance-governmental funds balance sheet 20,038,393$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds balance sheet.75,098,124 Deferred losses on refunding are reported as deferred outlfows of resources in the government-wide statement of net position.898,496 Revenues earned but not available within sixty days of the fiscal year-end are not recognized as revenue in the fund financial statements.7,931 Deferred outflows of resources related to the Town's TMRS pension liability and OPEB liability increased net position by $568,794 and 8,041, respectively; while the Town's TMRS deferred resource inflows related to the pension liability decreases net position by $236,577. This amount is the net effect.340,258 Deferred outflows of resources related to the Academy's TRS pension liability and OPEB liability increase net position by $509,509 and $46,603, respectively; while the Academy's TRS deferred resource inflows related to the pension liability and OPEB liability decreased net position by $137,845 and $1,070,148, respectively. This amount is the net effect.(651,881) Interest payable on long-term debt does not require current financial resources, therefore interest payable is not reported as a liability in the governmental funds balance sheet.(146,995) Long-term liabilities, including bonds payable, are not due and payable in the current period, and therefore are not reported in the fund financial statements.(40,439,383) NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of net position 55,144,943$ 30 Town of Westlake Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 31 Westlake Debt General Academy Service Fund REVENUES Taxes Sales 4,080,263$ -$ -$ Property 1,329,236 - 297,460 Mixed beverage 62,347 - - Hotel occupancy - - - Franchise 779,506 - - State program revenues - 7,217,383 - Federal program revenues - 114,797 - Interest income 237,164 9,878 - Building permits and fees 2,314,933 - - Fines and penalties 633,318 - - Contributions 37,238 - - Miscellaneous 206,305 1,520,125 - Total revenues 9,680,310 8,862,183 297,460 EXPENDITURES Current General government 3,672,933 - - Public safety 2,992,727 - - Cultural and recreation 183,816 - - Public works 620,985 - - Economic development - - - Visitor services - - - Education - 9,012,348 - Capital outlay 209,164 - - Debt service Principal retirement 36,677 - 1,519,000 Interest and other fiscal charges - 8,885 1,173,794 Total expenditures 7,716,302 9,021,233 2,692,794 Excess (deficiency) of revenues Over (Under) Expenditures 1,964,008 (159,050) (2,395,334) OTHER FINANCING SOURCES (USES) Transfers in 71,466 315,000 2,412,169 Transfers out (2,176,718) - - Net other financing sources (uses)(2,105,252) 315,000 2,412,169 NET CHANGE IN FUND BALANCES (141,244) 155,950 16,835 FUND BALANCES, AT BEGINNING OF YEAR 10,937,492 965,248 11,963 FUND BALANCES AT END OF YEAR 10,796,248$ 1,121,198$ 28,798$ Exhibit A-5 32 Solana PID Nonmajor Total Capital Capital Governmental Governmental Projects Projects Funds Funds -$ -$ 1,923,342$ 6,003,605$ - - - 1,626,696 - - - 62,347 - - 849,167 849,167 - - - 779,506 - - - 7,217,383 - - - 114,797 41,479 9,601 57,954 356,076 - - - 2,314,933 - - - 633,318 224,944 4 231,945 494,131 333 - 8,438 1,735,201 266,756 9,605 3,070,846 22,187,160 - - - 3,672,933 - - - 2,992,727 - - - 183,816 54,565 - - 675,550 - - 469,852 469,852 - - 875,322 875,322 - - - 9,012,348 8,470,001 728,282 - 9,407,447 - - - 1,555,677 - - - 1,182,679 8,524,566 728,282 1,345,174 30,028,351 (8,257,810) (718,677) 1,725,672 (7,841,191) 950,450 - 200,000 3,949,085 - - (1,700,901) (3,877,619) 950,450 - (1,500,901) 71,466 (7,307,360) (718,677) 224,771 (7,769,725) 12,869,877 797,234 2,226,304 27,808,118 5,562,517$ 78,557$ 2,451,075$ 20,038,393$ Town of Westlake Exhibit A-6 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 33 Net change in fund balances- total governmental funds.(7,769,725)$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.8,756,155 Depreciation expense on capital assets is reported in the statement of activities but does not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in the governmental funds.(1,598,311) The repayment of the principal of long term debt consumes the current financial resources of governmental funds, but has no effect on net position. The amortization of bond premiums and deferred gain/loss on refunding of long term debt is reported in the statement of activities but does not require the use of current financial resources. Therefore, the effect of the amortization of these various items are not reported in the statement of revenues, expenditures, and changes in fund balance. This amount represents the net effect of the following items: Repayments 1,555,677 Amortization of deferred loss on refunding (108,507) Amortization of premium on bonds 99,812 1,546,982 Current year changes in accrued interest payable does not require the use of current financial resources; and therefore, are not reported as expenditures in governmental funds.6,556 Implementation of GASB 68 and 75 requires certain expenditures to be de-expended and recorded as deferred outflows of resources. The changes in deferred outflows from pension and OPEB activity for TMRS decreased net position by $197,820 and increased net position by $4,185, respectively. The changes of net pension liability increased net position by $368,890. The changes in OPEB liability decreased net position by $15,683. The changes in deferred inflows of resources from pension activty for TMRS decreased net position by $236,577. This amount is the net effect.(77,005) Implementation of GASB 68 and 75 also affected the Academy. Pension and OPEB contributions made to TRS after the measurement date caused the change in net position to increase by $91,593 and $46,603, respectively. Pension and OPEB contributions made before the measurement period caused a decrease in the change in net position of $84,783 and $36,022, respectively. The net share of the Academy's amount of deferred inflows and outflows of resources decreased the change in net position by $90,778 and increased the change in net position by $888,112 for pension and OPEB, respectively. This amount is the net effect.814,725 Current year changes in the long-term liability for compensated absences do not require the use of current financial resources; and therefore, are not reported as expenditures in governmental funds.(74,155) Certain revenues in the government-wide statement of activities that do not provide current financial resources are not reported as revenue in the governmental funds.2,944 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of activities 1,608,166$ Town of Westlake Exhibit A-7 Statement of Net Position Proprietary Funds September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 34 Utility Cemetery Fund Fund Total ASSETS Current assets Cash and cash equivalents 3,799,542$ 92,622$ 3,892,164$ Accounts receivable 700,669 - 700,669 Inventories - 93,608 93,608 Restricted cash and investments 216,430 50,000 266,430 Total current assets 4,716,641 236,230 4,952,871 Noncurrent assets Capital assets Construction in progress 329,030 - 329,030 Buildings and improvements 14,899,416 - 14,899,416 Wastewater treatment rights 635,199 - 635,199 Machinery and equipment 3,560,780 - 3,560,780 Less: accumulated depreciation (8,261,363) - (8,261,363) Total capital assets 11,163,062 - 11,163,062 Total noncurrent assets 11,163,062 - 11,163,062 TOTAL ASSETS 15,879,703 236,230 16,115,933 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - TMRS OPEB 988 988 Deferred outflows - TMRS pension 67,460 - 67,460 TOTAL DEFERRED OUTFLOWS OF RESOURCES 68,448 - 68,448 LIABILITIES Current liabilities Accounts payable 382,064 668 382,732 Customer deposits payable 216,430 - 216,430 Accrued interest payable 8,515,080 - 8,515,080 Unearned revenue 369,062 - 369,062 Compensated absences - current portion 7,241 7,241 Current portion of bonds payable 22,550 - 22,550 Contractual obligations 113,756 - 113,756 Total current liabilities 9,626,183 668 9,626,851 Long-term liabilities: Bonds payable 904,750 - 904,750 Compensated absences 65,170 - 65,170 Contractual obligations 4,828,818 - 4,828,818 Total OPEB liability 6,220 6,220 Net pension liability 116,205 - 116,205 Total long-term liabilities 5,921,163 - 5,921,163 TOTAL LIABILITIES 15,547,346 668 15,548,014 Deferred inflows - TMRS pension 28,989 - 28,989 Total deferred inflows of resources 28,989 - 28,989 NET POSITION Net investment in capital assets 5,293,188 - 5,293,188 Unrestricted (4,921,372) 235,562 (4,685,810) TOTAL NET POSITION 371,816$ 235,562$ 607,378$ DEFERRED INFLOWS OF RESOURCES Town of Westlake Exhibit A-8 Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 35 Utility Cemetery Fund Fund Total OPERATING REVENUES Charges for services 5,496,702$ 29,440$ 5,526,142$ Miscellaneous revenue 298,116 1,271 299,387 Total operating revenues 5,794,818 30,711 5,825,529 OPERATING EXPENSES Payroll costs 466,165 - 466,165 Professional and contract services 1,003,706 5,495 1,009,201 Depreciation 495,349 - 495,349 Amortization of wastewater treatment rights 31,760 - 31,760 Water purchases 1,570,220 - 1,570,220 Cost of cemetary lots sold - 1,441 1,441 Other operating costs 2,595,594 2,818 2,598,412 Total operating expenses 6,162,794 9,754 6,172,548 Net operating income (loss)(367,976) 20,957 (347,019) NON-OPERATING REVENUES (EXPENSES) Interest income 76,703 3,258 79,961 Interest expense (887,152) - (887,152) Total non-operating revenues (expenses)(810,449) 3,258 (807,191) INCOME (LOSS) BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS (1,178,425) 24,215 (1,154,210) Transfer out (71,466) - (71,466) Total transfers and capital contributions (71,466) - (71,466) Change in net position (1,249,891) 24,215 (1,225,676) Total net position, beginning of year 1,625,527 211,347 1,836,874 Cumulative effect of change in accounting principle (3,820) - (3,820) Total net position, end of year 371,816$ 235,562$ 607,378$ Town of Westlake Exhibit A-9 Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 36 Utility Cemetery Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 6,195,803$ 30,711$ 6,226,514$ Payments to employees (447,465) - (447,465) Payments to suppliers (5,227,944) (7,497) (5,235,441) Net cash provided by operating activities 520,394 23,214 543,608 CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES Transfer to other funds (71,466) - (71,466) - Net cash used in noncapital financing activities (71,466) - (71,466) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on debt (235,093) - (235,093) Interest paid on debt (162,997) - (162,997) Investment earnings 76,703 3,258 79,961 Net cash provided by (used in) capital and related financing activities (321,387) 3,258 (318,129) Net increase in cash 127,541 26,472 154,013 Cash and cash equivalents at the beginning of the year 3,888,431 116,150 4,004,581 Cash and cash equivalents at the end of the year 4,015,972$ 142,622$ 4,158,594$ RECONCILIATION OF TOTAL CASH AND CASH EQUIVALENTS Cash and cash equivalents 3,799,542$ 92,622$ 3,892,164$ Restricted cash and cash equivalents 216,430 50,000 266,430 Total cash and cash equivalents 4,015,972$ 142,622$ 4,158,594$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss)(367,976)$ 20,957$ (347,019)$ Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Depreciation and amortization 527,109 - 527,109 Pension expense 10,381 - 10,381 OPEB expense 1,412 - 1,412 Changes in operating assets and liabilities: Receivables 454,278 - 454,278 Inventory - 1,589 1,589 Compensated absences 6,907 - 6,907 Accounts payable (58,424) 668 (57,756) Customer deposits payable (16,005) - (16,005) Unearned revenue (37,288) - (37,288) Net cash provided by operating activities 520,394$ 23,214$ 543,608$ Exhibit A-10 Town of Westlake Statement of Fiduciary Net Position Agency Fund September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 37 PID Agency Fund ASSETS Restricted cash and cash equivalents 2,113,820$ Total Assets 2,113,820$ LIABILITIES Liability to bond holders 2,113,820$ Total Liabilities 2,113,820$ Town of Westlake Exhibit A-11 Discretely Presented Component Units Combining Statement of Net Position September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 38 Texas Student Texas Student Housing Housing Corporation Texas Student Corporation College Station Housing Denton Project Project Authority Total Cash and cash equivalents 294,000$ 920,116$ 3,305,894$ 4,520,010$ Accounts receivable (net of allowance)111,492 177,962 696 290,150 Prepaid rent 65,798 1,003 - 66,801 Restricted assets: Cash and cash equivalents 2,092,565 1,282,832 - 3,375,397 Capital assets: Land 2,200,000 2,899,597 - 5,099,597 Buildings and improvements 25,705,000 26,885,312 - 52,590,312 Machinery and equipment 1,253,841 3,437,138 - 4,690,979 Less: accumulated depreciation (16,138,289) (15,637,071) - (31,775,360) Total assets 15,584,407 19,966,889 3,306,590 38,857,886 LIABILITIES Accounts payable and accrued expenses 79,396 122,058 252,876 454,330 Unearned revenue 159,500 472,280 - 631,780 Accrued interest payable 8,975,418 20,826,352 - 29,801,770 Bonds payable 23,032,586 28,205,000 - 51,237,586 Total liabilities 32,246,900 49,625,690 252,876 82,125,466 NET POSITION Net investment in capital assets (10,012,034) (10,620,024) - (20,632,058) Unrestricted (6,650,459) (19,038,777) 3,053,714 (22,635,522) Total net position (16,662,493)$ (29,658,801)$ 3,053,714$ (43,267,580)$ LIABILITIES AND NET POSITION ASSETS Town of Westlake Discretely Presented Component Units Combining Statement of Activities For the Fiscal Year Ended September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 39 Charges for Operating Grants Capital Grants Functions/Programs Expenses Services and Contributions and Contributions Business-type activities: Texas Student Housing Authority 456,560$ 589,769$ -$ -$ Texas Student Housing Authority College Station Project 8,569,140 3,331,791 - - Denton Project 5,981,977 5,438,873 - - Total business-type activities 15,007,677 9,360,433 - - Total component units 15,007,677$ 9,360,433$ -$ -$ GENERAL REVENUES Interest income Total general revenues Change in net position NET POSITION, beginning of year NET POSITION, end of year Program Revenues Exhibit A-12 40 Texas Student Texas Student Housing Housing Corporation Texas Student Corporation College Station Housing Denton Project Project Authority Total -$ -$ 133,209$ 133,209$ - (5,237,349) - (5,237,349) (543,104) - - (543,104) (543,104) (5,237,349) 133,209 (5,647,244) (543,104)$ (5,237,349)$ 133,209$ (5,647,244)$ 35,471 - 57,833 93,304 35,471 - 57,833 93,304 (507,633) (5,237,349) 191,042 (5,553,940) (16,154,860) (24,421,452) 2,862,672 (37,713,640) (16,662,493)$ (29,658,801)$ 3,053,714$ (43,267,580)$ Net (Expense) Revenues and Changes in Net Positions 41 Town of Westlake Notes to the Financial Statements 42 Note 1. Summary of Significant Accounting Policies The Town of Westlake, Texas (the Town) was incorporated under the provisions of the laws of the State of Texas on December 26, 1956. The Town operates under a Council - Manager form of government and provides the following services as authorized by the laws of the State of Texas: public safety; cultural and recreation; and economic development. The accounting and reporting policies of the Town conform to accounting principles generally accepted in the United States of America for local governments. Generally accepted accounting principles (GAAP) for local governments include those principles prescribed by the Governmental Accounting Standards Board (GASB). The following is a summary of the more significant accounting and reporting policies: Financial Reporting Entity The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the Town's operations and are appropriately presented as funds of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize it is legally separate from the Town. Based on these criteria, the financial information of the following entities have been blended or discret ely presented within the financial statements: Lone Star Public Facilities Corporation, 4B Economic Development Corporation, Westlake Academy, T exas Student Housing Authority, Texas Student Housing Corporation – College Station Project and Texas Student Housing Corporation – Denton Project. The Texas Student Housing Authority, Texas Student Housing Authority – Jefferson Commons at Town Lake Project, Texas Student Housing Corporation – College Station Project, and Texas Student Housing Corporation – Denton Project (collectively, Texas Student Housing Entities) are Texas nonprofit organizations as a duly constituted authority of the Town pursuant to Section 53.35(b) of the Texas Education Code, as amended (Act). Texas Student Housing Entities' primary purpose is to construct, own, and operate student housing facilities on college campuses in Texas. The board consists of seven directors which are appointed by the Town's governing body and has the ability to remove at will the appointe d members; thus, the governing body can impose its will on the organizations. However, the board is not substantively the same as the Town’s governing body; therefore, t he Texas Student Housing Entities are reported as discretely presented component units (enterprise funds). The Town is not responsible for the long-term debt of the Texas Student Housing Entities. The Texas Student Housing Entities’ year-end is August 31. Component Units Discretely Presented Separately issued financial reports are available for all the Texas Student Housing Entities. These reports may be obtained by contacting the following office. Texas Student Housing Authority 99 Trophy Club Drive Trophy Club, Texas 76262 Town of Westlake Notes to the Financial Statements 43 Blended Lone Star Public Facilities Corporation is a Texas nonprofit corporation that acts on behalf of the Town to further the public purposes under the Public Facilitie s Corporation Act, as its duly constituted authority and instrumentality. The board of directors, appointed by the Town's governing body, is comprised of seven members, of whom five must be members of the Town's governing body. Since the board of directors is substantively the same as the Town's governing body, and a financial benefit relationship exists, the entity has been reported as a blended component unit of the Town. 4B Economic Development Corporation is a Texas nonprofit industrial corporation under the Development Corporation Act of 1979 formed to promote economic development within the Town and the State of Texas in order to eliminate unemployment and underemployment, and to promote and encourage employment and the public welfare of, for, and on behalf of the Town by developing, implementing, financing, and providing one or more projects defined and permitted under Section 4B of the Act. The board of directors is composed of seven persons appointed by the members of the Town's governing board. Four of the members of the board of directors are members of the Town's governing board. Since the board of directors is substantively the same as the Town's governing body, and a financial benefit relationship exists, the entity has been reported as a blended component unit of the Town. Westlake Academy (Academy) is an open-enrollment charter school, as provided by Subchapter D, Chapter 12, of the Texas Education Code. The Town of Westlake (Charter Holder) applied for and became the first municipality in Texas to ever receive this special charter designation. The board consists of six trustees and is appointed by the Town's governing body. Currently, all the m embers of the board of trustees are members of the Town's governing body. Since the board of directors is substantively the same as the Town's governing body, and a financial benefit relationship exists, the entity has been reported as a blended component unit of the Town. The Academy's year-end is August 31. Basis of Presentation Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the Town. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expense s of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly in cluded among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual Governmental Funds and major individual Enterprise Funds are reported as sepa rate columns in the fund financial statements. Town of Westlake Notes to the Financial Statements 44 Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon a s all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the Town. The Town uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. Governmental Funds are those through which most governmental functions of the Town are financed. The acquisition, use, and balances of the Town's expendable financial resources and the related liabilities (except those accounted for in the proprietary fund type) are accounted for through governmental funds. The measurement focus is upon determination of changes in financial position, rather than upon income determination. The Town reports the following major governmental funds: General Fund – to account for all financial resources except those required to be accounted for in another fund. The General Fund balance is available for any purpose, provided it is expended or transferred in accordance with the legally adopted budget of the Town. The General Fund includes the Town’s Major Maintenance and Replacement Fund, V ehicle Replacement Fund, and PID (local) Fund. Westlake Academy Fund – to account for all local, state and federal revenue and related education al expenditures of the Academy. Debt Service Fund – to account for resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. Capital Projects Fund – to account for proceeds from long-term financing and revenue and expenditures related to authorized construction and other capital asset acquisitions other than those related to the expansion of Westlake Academy facilities. Town of Westlake Notes to the Financial Statements 45 Solana Public Improvement District (PID) Capital Projects Fund – to account for the acquisition or construction of capital facilities and improvements relating to the Solana public improvement district. In addition, the Town reports the following nonmajor governmental funds: Visitors Association Fund - to account for municipal hotel occupancy taxes collected and expenditures to promote tourism and the convention and hotel industry. Lone Star Public Facilities Corporation – to account for investment activity relating to the Lone Star Public Facilities Corporation. 4B Economic Development Corporation – to account for sales tax collected to fund the activities of the 4B Economic Development Corporation. Economic Development Fund – to account for sales tax and hotel occupancy tax collected to fund activity relating to Economic Development agreements. Public Arts Contribution Fund – to account for contributions restricted for public art. Westlake Academy Expansion Capital Projects Fund – to account for proceeds from long-term financing and revenue and expenditures related to authorized construction related to the expansion of Westlake Academy facilities. The Town adopts an annual appropriated budget for all governmental funds except capital projects, Solana PID capital projects, and Westlake Academy Expansion funds, which are project -length based budgets. A budgetary comparison schedule has been provided for all appropriate funds to demonstrate compliance with the budget. Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Town's Enterprise Fund are charges to customers for sales and services. Operating expenses for the Enterprise Fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenue and expenses. The Town reports the following major proprietary funds: Utility Fund – to account for revenues and expenses related to providing water and sewer services to the general public on a continuing basis. Cemetery Fund – to account for the operations of the Town's cemetery. The Town reports the following fiduciary fund: Solana PID Agency Fund – to account for bond proceeds, assessments, and related debt associated with bonds issued by the Town as an agent for the Solana public improvement district. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the Town's water and wastewater function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenue reported for the various functions concerned. Town of Westlake Notes to the Financial Statements 46 Amounts reported as program revenues include: 1) charges to customer or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reporte d as general revenues rather than as program revenue. Likewise, general revenue includes all taxes. Assets, Liabilities, Deferred Inflows/Outflows of Resources, and Net Position or Equity Cash and Cash Equivalents Cash and investments of all funds, including restricted cash, are available upon demand and are considered to be "cash equivalents." For purposes of the statement of cash flows, the Town considers highly -liquid investments (including restricted assets) with an original maturity of three months or less when purchased to be cash equivalents. State statutes authorize the Town to invest in (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligati ons, the principal of, and interest on, which are unconditionally guaranteed or insured by the State of Texas or the United States; (4) obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than "A" or its equivalent; (5) certificates of deposit by state or national banks domiciled in this state that are (a) guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor; or, (b) secured by obligations that are described by (1) - (4); or (6) fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by (1) pledged with third-party selected or (2) approved by the Town, and placed through a primary government securities dealer. All investments are recorded at fair value based on quoted market prices. Fair value is the amount at which a financial instrument co uld be exchanged in a current transaction between willing parties. Receivables and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. The Town's property taxes are levied on October 1 on the assessed value listed as of the prior January 1 for all real and business personal property located in the Town. Assessed values are established at 100% of estimated market value. Property taxes attach as an enforceable lien on property as of January 1. Taxes are due by January 31 following the October 1 levy date and are considered delinquent after January 31 of each year. All property tax receivables are shown net of an allowance for uncoll ectibles. The net property tax receivable allowance is equal to management’s estimate of uncollectible outstanding prop erty taxes at September 30, 2018. Town of Westlake Notes to the Financial Statements 47 Restricted Assets Certain bond proceeds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. Inventories and Prepaid Items Inventories, which are expended as they are consumed, are stated at the lower of cost or market on a first-in, first-out basis. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. Fund Changes and Transactions between Funds Legally authorized transfers are treated as transfers in and out and are included as other financing sources (uses) of both governmental and proprietary funds. The Town allocates an indirect cost percentage of the salaries, wages and related costs of personnel who perform administrative services as well as other indirect costs necessary for the operation of various funds. Expenses are budgeted and paid from the appropriate fund. Capital Assets All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. The cost of nominal maintenance and repairs that do not add value to the asset or materially extend assets' lives are not capitalized. Donated assets are valued at their acquisition value on the date donated. Assets capitalized have an original cost of $5,000 or more and three years or more of life. All infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), regardless of the acquisition date or amount, have been included. Estimated historical cost for initial reporting of infrastructure assets (those reported by governmental activities) was valued by estimating the current replacement cost of the infrastructure and using an index to deflate the cost to the estimated acquisition/construction year. As the Town constructs or acquires additional capital assets, including infrastructure assets, they are capitalized and reported at historical cost. Depreciation has been calculated on each class of depreciable property using the straig ht-line method. Estimated useful lives are as follows: Years Water and sewer system 10-50 Buildings 20-50 Machinery and equipment 3-30 Improvements 5-30 Information systems and software 3 Assets Town of Westlake Notes to the Financial Statements 48 Compensated Absences The Town's policy allows employees to earn 5 days of vacation and 5 days of sick leave between six months and one year of service, and 10 days of vacation and 10 days of sick leave between one year and two years of service and each successive year through five years of service. After completion of 5 years of service, 15 days of vacation and 15 days of sick leave per year are earned. After completion of 10 years of service, 20 days of vacation and 20 days of sick leave per year are earned. The Town makes sick and vacation time available in full at the beginning of each year, and hours are actually earned throughout the year. Unused, earned vacation hours are paid upon termination or retirement at the employee's normal hourly rate; accumulated, unused sick tim e is only payable upon retirement, death of the employee, or other circumstances when authorized by the Town Manager. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight -line method, which approximates the effective interest method. Bonds payable are reported net of the applicabl e bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as issuance costs during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issuance costs, even if withheld from the actual proceeds, are reported as expenditures. Fund Equity and Net Position The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows: Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. Nonspendable items are not expected to be converted to cash or are not expected to be converted to cash within the next year. Restricted: This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors, grantors, contributors, or laws or regulation s of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. Committed: This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by board resolution of the Town council, the Town's highest level of decision making authority. These amounts cannot be used for any other purpose unless the Town council removes or changes the specified use by taking the same type of action that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. Assigned: This classification includes amounts that a re constrained by the Town's intent to be used for a specific purpose but are neither restricted nor committed. In the General Fund, assigned amounts represent intended uses established by the Town Council or the Town Finance Director who has been delegated that authority. Town of Westlake Notes to the Financial Statements 49 Unassigned: This classification includes the residual fund balance for the General Fund. The unassigned classification also includes negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of assigned fund balance amounts. In the government-wide financial statements, net position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted when there are limitations imposed on its use either though the enabling legislations adopted by the Town or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The government-wide and fund level financial statements report restricted fund balances for amounts not available for appropriation or legally restricted for specific uses. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, it is the Town's policy to use restricted resources first, then unrestricted resources as needed. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Town considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned fun ds. Pensions and Other Post-Employment Benefits (OPEB) For purposes of measuring the net pension/OPEB and total OPEB liabilities, pension and OPEB related deferred outflows and inflows of resources and pension and OPEB expense, the Town’s specific information about its Fiduciary Net Position in the Texas Municipal Retirement System (TMRS) and Teachers Retirement System (TRS) and additions to/deductions from the Town’s Fiduciary Net Position have been determined on the same basis as they are reported by TMRS and TRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For TMRS, information regarding the Town’s Total Pension Liability and Total OPEB Liability is obtained from TMRS through reports prepared for the Town by TMRS consulting actuary, Gabriel Roeder Smith & Company, in compliance with Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. For TRS, information regarding the Town’s Total Pension Liability and Total OPEB Liability is obtained from TRS which is a cost-sharing multi-employer defined benefit plan. Reports prepared are in compliance with Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Deferred Outflows and Inflows of Resources In addition to assets, the statement of financial position and/or balance sheet will sometimes report a separate section for deferred outflows of resources on the Statement of Net Position and Governmental Fund Balance Sheet. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Town has the following items that qualify for reporting in this category: Deferred Outflow from Loss on Refunding – these deferred outflows reported at the net position result from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Town of Westlake Notes to the Financial Statements 50 Deferred Outflow/Inflows from Pensions/OPEB – these deferred outflows/inflows reported on the Statement of Net Position result from pension/OPEB contributions after the measurement date (deferred and recognized as a reduction of the related liability in the following fiscal year) and/or differences in projected and actual earnings on pension/OPEB assets (deferred and am ortized over a closed five-year period). Deferred Outflow/Inflows from Contributions – these deferred outflows/inflows result from contributions made or received before time requirement is met. Th e deferred outflows/inflows from contributions are eliminated at the Statement of Activities and Net Position. Deferred Inflows from Unavailable Resources – these deferred inflows result from property tax receivables not being collected within 60 days of year end. The deferred inflows from unavailable resources are recorded as revenues on the Statement of Activities. Estimates The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting pe riod. Actual amounts could differ from those estimates. Subsequent Events The Town has evaluated all events or transactions that occurred after September 30, 2018 up through March 19, 2019, the date the financial statements were issued. Note 2. Cash and Investments Legal provisions generally permit the Town to invest in certificates of deposit, repurchase agreements, public funds investment pools, direct obligations of the United States of America or its subdivisions and state and local government securities. The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas of investment practices, management reports and establishment of appropriate policies. Among other things, it requires the Town to adopt, implement, and publicize its investment policy. That policy must address the following areas: (1) safety of principal and liqui dity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar - weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for certificates of deposit. Town of Westlake Notes to the Financial Statements 51 Statutes and the Town's investment policy authorized the Town to invest in the following investments as summarized in the table below: Maximum Maximum Maximum Percentage Investment Maturity of Portfolio In One Issuer Obligations of the U.S. Government, its agencies and instrumentalities 2 years None None Certificates of deposit 1 year None None Mutual funds 2 years 80%None Investment pools -None None Authorized Investment Type The Town did not engage in repurchase or reverse repurchase agreement transactions during the current year. At year end, the carrying amount of the Town’s deposits was $23,808,440 and the bank balance was $24,465,133. The bank balance was completely covered by federal deposit insurance and collateral held by the pledging financial institution in the Town’s name. At year end, the carrying amount of the component units’ deposits was $7,895,407 and the bank balance was $8,102,720. The bank balance was completely covered by federal deposit insurance and collateral held by the pledging financial institution in the component units’ names. The carrying amount consists of $4,520,010 in cash and cash equivalents and $3,375,397 in restricted cash and cash equivalents. Town of Westlake Notes to the Financial Statements 52 At September 30, 2018, the Town's cash and cash equivalents consist of and are classified in the accompanying financial statements are follows: Primary government: Cash and cash equivalents 23,342,212$ Restricted cash and investments 623,811 Total primary government 23,966,023 Fiduciary funds: Restricted cash and cash equivalents 2,113,820 Total cash and investments 26,079,843$ Deposits with financial institutions 23,808,440$ Investments 2,271,403 Total cash and investments 26,079,843$ Disclosures Relating to Interest Rate Risk This is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. In order to limit interest and market rate risk from changes in interest rates, the Town's investment policy sets a maximum stated maturity limit of two years for obligations of the United States Government, its agencies and instrumentalities (excluding mortgag e backed securities) and one year for fully insured or collateralized certificates of deposit. No more than 80% of the Town's monthly average balance may be invested in money market funds. Additionally, the Town invests in an investment pool that purchases a combination of shorter term investments with an average maturity of 28 days thus reducing the interest rate risk. Information about the sensitivity of the fair values of the Town's investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Town's Investments. As of September 30, 2018, the Town's investments were as follows: Weighted Carrying Average Amount Fair Value Maturity (days) TexPool 201$ 201$ 28 days Mutual funds 2,271,202 2,271,202 N/A Total 2,271,403$ 2,271,403$ Investment Type Town of Westlake Notes to the Financial Statements 53 Disclosures Relating to Credit Risk This is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the Public Funds Investment Act, the Town's investment policy, or debt agreements, and the actual rating as of year -end for each investment type. Minimum Rating Carrying Fair Legal as of Primary government Amount Value Rating Year-end Investments: TexPool 201$ 201$ N/A AAA-m Mutual funds 2,271,202 2,271,202 N/A A-1 Total 2,271,403$ 2,271,403$ Disclosures Relating to Concentration of Credit Risk The Town’s investment policy is to avoid a concentration of assets in a specific maturity, a specific issue, or a specific class of investments. Disclosures Relating to Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in t he possession of another party. The Public Funds Investment Act does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The Public Funds Investment Act requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least the bank balance less the FDIC insurance at all times. The Town requires all deposits to be covered by Federal Depository Insurance Corporation (FDIC) insurance and/or collateralized by qualified securities pledged by the Town’s depository in the Town’s name and held by the depository’s agent. As of September 30, 2018, the Town's entire cash deposits with financial institutions in excess of federal depository insurance were fully collateralized. The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application, provides a framework for measuring fair value which establishes a three-level fair value hierarchy that describes the inputs that are used to measure assets and liabilities. Town of Westlake Notes to the Financial Statements 54 Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date. Level 2 inputs are inputs – other than quoted prices included within Level 1 – that are observable for an asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for an asset or liability. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. If a price for an identical asset or liability is not observable, a government should measure fair value using another valuation technique that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. If the fair value of an asset or a liability is measured using input s from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. The Town has recurring fair value measurements as presented in the table be low. The Town’s investment balances and weighted average maturity of such investments are as follows: Quoted Prices in Active Significant Markets for Other Significant Weighted Value at Identical Observable Unobservable Percent of Average September 30,Assets Inputs Inputs Total Maturity 2018 (Level 1)(Level 2)(Level 3)Investments (Days) Investments not Subject to Fair Value: Investment Pools: TexPool 201$ -$ -$ -$ 0.01%28 Investments by Fair Value Level: Mutual Funds 2,271,202 2,271,202 - - 99.99%N/A Total Value 2,271,403$ 2,271,202$ -$ -$ Fair Value Measurements Using Mutual funds reported as Level 1 consist of shares of a money market funds government portfolio and are valued at net asset value (NAV) of the assets held by the Town. The NAV is a quoted price in an active market. Investment in State Investment Pools On September 1, 1989, local government investment pools became authorized investments for the majority of public entities in Texas. The Interlocal Cooperation Act was amended by the 71 st Texas Legislature to facilitate the creation of local government investment pools in Texas. This act permits the creation of investment pools to which a majority of political subdivisions (local governments) may delegate, by contract, the authority to make investments purchased with local investment funds and to hold legal title as custodian of the investments. TexPool was organized to conform with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds Investment Act, Chapter 2256 of the Texas Government Code. Town of Westlake Notes to the Financial Statements 55 During the year ended September 30, 2018, the Town had investments with TexPool. TexPool , a public funds investment pool created by the Treasurer of the State of Texas acting by and through the Texas Treasury Safekeeping Trust Company, which is empowered to invest funds and acts as custodian of investments purchased with local investment funds. These investments are not required to be categorized because the investor is not issued securities, but rather it owns an undivided beneficial interest in the assets of the respective funds. The fair value of the position in TexPool is the same as the v alue of the pool shares. Restricted Cash Proprietary Fund Within the proprietary funds, $216,430 of restricted cash represents customer deposits received for water and sewer usage that are refundable upon termination of service and $50,000 of restricted cash represents a contribution restricted for cemetery improvements. Discretely Presented Component Units Within the discretely presented component units, the $3,375,397 in restricted cash and cash equivalents represents funds held for debt service. Note 3. Receivables Governmental activities receivable balance consists of the following as of September 30, 2018: Debt Total Westlake Service Nonmajor Governmental General Academy Fund Fund Funds Receivables: Sales tax 1,149,748$ -$ -$ 805,104$ 1,954,852$ Property tax 9,186 - 1,041 - 10,227 Other taxes 16,523 - - 81,740 98,263 Franchise tax 198,136 - - - 198,136 Other 130,792 794,795 - - 925,587 Gross receivables 1,504,385 794,795 1,041 886,844 3,187,065 Less: allowance for uncollectibles (2,297) - - - (2,297) Net total receivables 1,502,088$ 794,795$ 1,041$ 886,844$ 3,184,768$ Governmental Funds Town of Westlake Notes to the Financial Statements 56 Business-type receivables balance consists of the following as of September 30, 2018: Utility Cemetery Fund Fund Total Receivables: Accounts 753,714$ -$ 753,714$ Other - - - Gross receivables 753,714 - 753,714 Less: allowance for uncollectibles (53,045)- (53,045) Net total receivables 700,669$ -$ 700,669$ Business-Type Activities Note 4. Capital Assets Capital asset activity for the year ended September 30, 2018, was as follows: Primary Government Beginning Ending Balance Increases Decreases Transfers Balance Governmental activities: Capital assets, not being depreciated: Land 12,446,059$ -$ -$ -$ 12,446,059$ Construction in progress 18,677,154 8,278,835 - (767,854) 26,188,135 Total assets not being depreciated 31,123,213 8,278,835 - (767,854) 38,634,194 Capital assets, being depreciated: Capital improvements 15,079,702 331,471 - 767,854 16,179,027 Buildings 32,262,586 - - - 32,262,586 Machinery and equipment 4,360,115 110,397 - - 4,470,512 Information systems and software 292,385 35,452 - - 327,837 Total capital assets being depreciated 51,994,788 477,320 - 767,854 53,239,962 Less accumulated depreciation: Capital improvements (5,116,278) (563,060) - - (5,679,338) Buildings (6,569,350) (657,917) - - (7,227,267) Machinery and equipments (3,311,193) (300,656) - - (3,611,849) Information systems and software (180,900) (76,678) - - (257,578) Total accumulated depreciation (15,177,721) (1,598,311) - - (16,776,032) Total capital assets being depreciated 36,817,067 (1,120,991) - 767,854 36,463,930 Governmental activities capital assets, net 67,940,280$ 7,157,844$ -$ -$ 75,098,124$ Town of Westlake Notes to the Financial Statements 57 Beginning Ending Balance Increases Decreases Transfers Balance Business-type activities: Capital assets, not being depreciated: Construction in progress 329,030$ -$ -$ -$ 329,030$ Total assets not being depreciated 329,030 - - - 329,030 Capital assets, being depreciated: Capital improvements 14,899,416 - - - 14,899,416 Wastewater treatment rights 635,199 - - - 635,199 Machinery and equipment 3,560,780 - - - 3,560,780 Total capital assets being depreciated 19,095,395 - - - 19,095,395 Less accumulated depreciation: Capital improvements (5,164,471) (362,643) - - (5,527,114) Wastewater treatment rights (545,314) (31,760) - - (577,074) Machinery and equipment (2,024,469) (132,706) - - (2,157,175) Total accumulated depreciation (7,734,254) (527,109) - - (8,261,363) Total capital assets being depreciated 11,361,141 (527,109) - - 10,834,032 Business-type activities capital assets, net 11,690,171$ (527,109)$ -$ -$ 11,163,062$ Depreciation was charged to departments of the primary government as follows: Governmental activities: General government 915,911$ Public safety 199,473 Public works 482,927 Total depreciation expense - governmental activities 1,598,311$ Business-type activities: Water and sewer 527,109$ Town of Westlake Notes to the Financial Statements 58 A summary of discretely presented component units' capital assets at September 30, 2018 follows: Texas Student Housing Corporation – Denton Project Beginning Ending Balance Increases Decreases Balance Capital assets, not being depreciated: Land 2,200,000$ -$ -$ 2,200,000$ Total assets not being depreciated 2,200,000 - - 2,200,000 Capital assets, being depreciated: Buildings 25,705,000 - - 25,705,000 Furniture and fixtures 1,253,841 - - 1,253,841 Total capital assets being depreciated 26,958,841 - - 26,958,841 Less accumulated depreciation: Buildings (14,066,346) (856,833) - (14,923,179) Furniture and fixtures (1,206,660) (8,450) - (1,215,110) Total accumulated depreciation (15,273,006) (865,283) - (16,138,289) Total capital assets being depreciated 11,685,835 (865,283) - 10,820,552 Capital assets, net 13,885,835$ (865,283)$ -$ 13,020,552$ Texas Student Housing Corporation – College Station Project Beginning Ending Balance Increases Decreases Balance Capital assets, not being depreciated: Land 2,899,597$ -$ -$ 2,899,597$ Total assets not being depreciated 2,899,597 - - 2,899,597 Capital assets, being depreciated: Buildings 26,885,312 - - 26,885,312 Furniture and fixtures 3,437,138 - - 3,437,138 Total capital assets being depreciated 30,322,450 - - 30,322,450 Less accumulated depreciation: Buildings (11,541,705) (896,178) - (12,437,883) Furniture and fixtures (3,114,417) (84,771) - (3,199,188) Total accumulated depreciation (14,656,122) (980,949) - (15,637,071) Total capital assets being depreciated 15,666,328 (980,949) - 14,685,379 Capital assets, net 18,565,925$ (980,949)$ -$ 17,584,976$ Town of Westlake Notes to the Financial Statements 59 Note 5. Long-Term Debt The Town issues general obligation bonds, certificates of obligation and tax notes to provide for the acquisition and construction of major capital facilities and infrastructure. Combination tax and revenue certificates of obligation are issued for both governmental and business-type activities. General obligation bonds, governmental revenue bonds and tax notes pledge the full faith and credit of the Town. A summary of long-term debt transactions for the year ended September 30, 2018, was as follows: Amount Beginning Ending Due within Balance Additions Reductions Balance One year Governmental activities: General obligation bonds other obligations 35,257,700$ -$ (1,519,000)$ 33,738,700$ 1,567,450$ Unamortized bond premium 1,578,909 - (99,812) 1,479,097 - Notes payable 238,404 - (36,677) 201,727 36,677 Capital leases 162,004 - - 162,004 162,004 Compensated absences 333,005 202,853 (128,698) 407,160 40,716 Total OPEB liability - TMRS 34,959 15,683 - 50,642 Net OPEB liability - TRS 4,516,574 (1,958,260) 2,558,314 Net pension liability - TMRS 1,314,966 - (368,890) 946,076 - Net pension liability - TRS 1,051,346 - (155,683) 895,663 - Total governmental activities 44,487,867$ 218,536$ (4,267,020)$ 40,439,383$ 1,806,847$ Amount Beginning Ending Due within Balance Additions Reductions Balance One year Business-type activities: Certificates of obligation 949,300$ -$ (22,000)$ 927,300$ 22,550$ Contractual obligations 5,126,958 - (213,093) 4,913,865 113,756 Unamortized bond premium 29,881 - (1,172) 28,709 - Compensated absences 65,504 29,696 (22,789) 72,411 7,241 Total OPEB liability - TMRS 4,294 1,926 - 6,220 - Net pension liability - TMRS 161,515 - (45,310) 116,205 - Total business-type activities 6,337,452$ 31,622$ (304,364)$ 6,064,710$ 143,547$ The Town’s accrued interest for general obligation bonds reported in governmental activities was $146,995 and certificate of obligation s reported in business-type activities for $4,100. Town of Westlake Notes to the Financial Statements 60 General Obligation Bonds and Certificates of Obligation General obligation bonds and certificates of obligation are as follows as of September 30, 2018: Final Business- Maturity Interest Rates Governmental Type $2,095,000 Combination Tax and Revenue Certificates of Obligation, Series 2011 2031 3.25%1,473,000$ -$ $7,375,000 General Obligation Refunding Bonds, Series 2011 2028 2.0-4.0%5,660,000 - $9,320,000 Certificates of Obligation, Series 2013 2043 2.0-4.0%7,550,700 927,300 $2,200,000 General Obligation Refunding Bonds, Series 2013 2028 2.0-2.5%1,452,000 - $9,180,000 Certificate of Obligation Bonds, Series 2016 2046 2.0-5.0%8,980,000 - $5,795,000 General Obligation Refunding Bonds, Series 2017 2032 2.0-5.0%5,765,000 - $1,530,000 Tax Notes, Series 2017 2024 2.0-5.0%1,328,000 - $1,910,000 General Obligation Refunding Bonds, Series 2014 2032 2.0-5.0%1,530,000 - 33,738,700$ 927,300$ General Obligations Bonds, Tax Notes, and Certificates of Obligation Debt service requirements of certificates of obligation and general obligations to be retired from governmental funds are as follows: Total Principal Interest Requirements 1,567,450$ 1,122,540$ 2,689,990$ 1,613,350 1,080,730 2,694,080 1,651,350 1,037,343 2,688,693 1,699,250 992,212 2,691,462 1,742,700 945,371 2,688,071 8,503,850 3,921,635 12,425,485 8,260,800 2,342,786 10,603,586 3,293,100 1,375,407 4,668,507 3,966,850 696,848 4,663,698 1,440,000 88,000 1,528,000 33,738,700$ 13,602,872$ 47,341,572$ Year Ending September 30, 2019 2020 2021 2022 2024-2028 2029-2033 2023 2034-2038 2039-2043 2044-2046 Total Town of Westlake Notes to the Financial Statements 61 Debt service requirements of certificates of obligation to be retired from proprietary funds as follows: Total Principal Interest Requirements 22,550$ 32,576$ 55,126$ 23,650 32,114 55,764 23,650 31,582 55,232 24,750 30,977 55,727 25,300 30,288 55,588 139,150 139,223 278,373 233,200 107,112 340,312 196,900 65,840 262,740 238,150 24,503 262,653 927,300$ 494,215$ 1,421,515$ Year Ending 2019 2023 September 30, 2020 2029-2033 2024-2028 2022 2034-2038 2039-2043 Total 2021 Notes Payable In March 2014, the Town received a $366,774 loan from Bennett Benner Pettit, the proceeds of which were used to fund a portion of the Westlake Academy expansion project. The terms of the note call for ten annual payments at 0% interest. Note September 30,Payments 36,677$ 36,677 36,677 36,677 36,677 18,342 201,727$ 2020 2021 Year Ending 2024 Total 2019 2022 2023 Capital Leases The Westlake Academy has entered into lease agreements as lessee for financing the acquisition of computer equipment and software. The lease agreements qualify as capital leases for accounting purposes, and therefore, have been recorded at the present value of its future minimum lease payments as of the inception date. Equipment and software with a historical cost of $730,049 was und er capital lease at August 31, 2018. Because the cost of the individual items was below the Town’s capitalization threshold, the entire cost was recorded as expense during the year ended August 31, 2018. Town of Westlake Notes to the Financial Statements 62 The following schedule shows the future minimum lease payments under the capitalized lease together with the present value of the net minimum lease payments as of August 31, 2018: Annual Lease Payments 166,038$ Total minimum lease payments 166,038 Less: Amounts representing interest (4,034) Present value of net minimum lease payments 162,004$ Year Ending August 31, 2019 Contractual Obligations Proprietary funds contractual obligations as of September 30, 2018 are as follows: Business- Maturity Interest Rate Type Elevated Water Storage Facility 2020 5.0-5.65%233,921$ Limited pledge contractual obligation: Dove Road Water Line and West Pump Station 2028 6.75%4,679,944 4,913,865$ Contractual Obligations Elevated Water Storage Facility - On October 9, 2000, the Town approved an interlocal agreement with the Town of Keller, which provided for the joint construction, operation, maintenance and use of an elevated water storage facility and appurtenances. The Town recorded a contractual obligati on of $1,466,000 based on the terms of the interlocal agreement, which requires 20 annual principal and interest payments to the Town of Keller, with payments due each September 30 at interest rates ranging from 5.0% to 5.65%. Dove Road Water Line and West Pump Station - In April 2000, the Town approved an agreement with the Hillwood Development Corporation (Hillwood). In the agreement, Hillwood agreed to bear all initial costs for the design, engineering and constructions of the Dove Road Water Line an d the West Pump Station that will service the residents of the Town. The Town agreed to reimburse Hillwood for the cost of the project upon completion and the Town's acceptance of the project, which occurred in June 2001, solely from a $.25 charge per 1,000 gallons of usage. The Town further agreed to deposit debt service revenue of $.25 per 1,000 gallons of usage collected from Town residents to fund its repayment to Hillwood. Debt service revenue will be allocated between Hillwood service area and Town service area by 52% and 48%, respectively and deposited into two separate debt service funds that will result in debt service revenue to pay the respective share of the construction cost. The Town recorded a limited pledge contractual obligation of $4,679,944 for the project cost based upon the terms of the agreement, which requires 239 monthly principal and interest payments to Hillwood, at an interest rate of 6.75%. If the Town collects insufficient funds to pay current interest on the debt, the interest pa yment may be deferred. No portion of debt payments will be applied to the principal component, until all current and deferred interest is fully paid. The obligation of the Town to pay the purchase price and interest thereon is not a general obligation of the Town but is a limited recourse obligation payable solely from debt service revenue. Town of Westlake Notes to the Financial Statements 63 The schedule of future payments by the Town under these agreements is as follows: Total Principal Interest Requirements -$ 8,510,980$ 8,510,980$ 113,756 891,431 1,005,187 120,165 949,146 1,069,311 4,679,944 752,757 5,432,701 4,913,865$ 11,104,314$ 16,018,179$ Year Ending Past Due 2019 Total September 30, 2020 2021 Prior Year Defeasance of Debt In prior years, the government defeased general obligations bonds by placing proceeds of the new bonds in an irrevocable trust account to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not include d in the government's financial statements. At September 30, 2018, there were no prior year defeased bonds outstanding. Compensated Absences Although compensated absences are liquidated by the fund to which they relate, the significant portion of the governmental activities compensated absences has typically been liquidated by the general fund. Discretely Presented Component Units – Long-Term Debt Texas Student Housing Corporation –Denton Project The long-term debt activity of the Denton Project is as follows: Amounts Beginning Ending Due Within Balance Increases Decreases Balance One Year Revenue Bonds: 2001 A Bonds 21,195,000$ -$ (955,000)$ 20,240,000$ 1,015,000$ 2001 B Bonds 3,240,000 - - 3,240,000 1,430,000 Less discount on bonds (484,899) - 37,485 (447,414) - Total 23,950,101$ -$ (917,515)$ 23,032,586$ 2,445,000$ The Bonds are payable solely from the revenues generated by the Denton Property and are secured by the revenues pledged and assigned under the terms of the Trust Indenture. The Town of Westlake does not have any liability for the payment of the bonds as the bonds are non -recourse to both the Town of Westlake and Texas Student Housing Authority. Interest rates on the bonds range from 5.00% to 11.00% and are payable semi-annually on July 1 and January 1 of each year thereafter. Town of Westlake Notes to the Financial Statements 64 At August 31, 2018, the Project was not in compliance with certain covenants of the Indenture including insufficient funds in some of the required funds and a fixed charges ratio less than 1.25. In addition, all required principal payments on the Series B bonds had not been made as of August 31, 2018. Upon certain events of default either the trustee, or owners of not less than 25% in aggregate principal of the bonds then outstanding, may declare the principal and all interest then due to be immediately due and payable. The debt service requirements of the bonds are as follows: Total Principal Interest Requirements 1,360,000$ 8,710,421$ 10,070,421$ 1,085,000 1,589,980 2,674,980 1,165,000 1,513,768 2,678,768 1,250,000 1,431,730 2,681,730 1,330,000 1,343,530 2,673,530 1,430,000 1,248,483 2,678,483 8,860,000 4,543,880 13,403,880 7,000,000 1,039,228 8,039,228 23,480,000$ 21,421,020$ 44,901,020$ 2023 August 31, Past Due 2020 2022 2021 2019 2029-2031 Year Ending 2024-2028 Texas Student Housing Corporation – College Station Project The Project's installment note payable is summarized as follows: Rate Balance Cambridge Student Housing Financing Company, L.P.; substantially all assets and assignment of rents: due November 1, 2039 8.00%28,205,000$ Lender/Security/Due/Date The following is a summary of long-term debt transactions of the Project for the year ended August 31, 2018: Amounts Beginning Ending Due Within Balance Increases Decreases Balance One Year Revenue Certificates 28,419,200$ -$ (214,200)$ 28,205,000$ 1,610,800$ Town of Westlake Notes to the Financial Statements 65 The debt is to be amortized through 2040 with varying payments. The annual requirements to amortize the Project’s outstanding installment notes payable as of August 31, 2018 are as follows: Year Ending August 31,Principal Interest Total 890,800$ 20,336,807$ 21,227,607$ 720,000 1,650,637 2,370,637 775,000 1,592,890 2,367,890 830,000 1,530,858 2,360,858 895,000 1,464,122 2,359,122 495,000 1,410,935 1,905,935 3,090,000 6,415,005 9,505,005 4,450,000 5,004,005 9,454,005 6,425,000 2,953,495 9,378,495 9,634,200 372,715 10,006,915 Total 28,205,000$ 42,731,469$ 70,936,469$ 2034-2038 2039-2040 Past Due 2021 2022 2023 2024-2028 2029-2033 2019 2020 Class C and D bonds are in default and the property does not generate enough revenue to pay the debt obligations. All of the Class C and D bonds issued remain outstanding as of August 31, 2018. Each class has certain rights and privileges, as contained in the private placement memorandum. As a part of the offering, the Project entered into a trust agreement with J. P. Morgan Trust Company, N.A. (the Trustee) for the purpose of determining that each class is paid in accordance with the private placement memorandum. At August 31, 2018, the Project was not in compliance with the fixed charge coverage ratio. As a result, the lender may accelerate the maturity of the unpaid portion of the principal payable under the installment sale agreement. However, the Authority does not anticipate this eve nt will occur, since foreclosure by private interests would result in the loss of tax -exempt status for the Project. The Town of Westlake does not have any liability for the payment of debt of the discretely presented component units as the bonds are non-recourse to both the Town and Texas Student Housing Authority. Note 6. Unearned Revenue / Deferred Inflows of Resources Unearned revenue in the proprietary fund of $369,062 relates to the collection of the entire amount due on twelve Ductbank leases as follows: three leases with AT&T local network services ranging from 5 – 30 years; six leases with Verizon Southwest ranging from 5-30 years; one five-year lease with MCI Metro; one five-year lease with L3 Communications for use of the Town's Ductbank; and one five-year lease with Charter. Governmental funds report deferred inflows of resources in connection with receivables for revenue that is not considered to be available to liquidate liab ilities of the current period. At the end of the current fiscal year, deferred inflows of resources reported in the governmental funds consist of $6,890 and $1,041 of unavailable property taxes in the general fund and debt service fund, respectively, as well as $323,439 of unavailable contributions in the Westlake Academy fund. The unavailable contribution is from the Town (general fund) with a time constraint to be used for fiscal year 2019. Accordingly, a deferred outflow of resources has been recorded in the general fund in the same amount. Town of Westlake Notes to the Financial Statements 66 Note 7. Interlocal Agreement with the Town of Westlake In August 1995, the Town entered into an agreement with the Town of Southlake to allow the Town to utilize capacity in a sewer line and to set forth their respective rights and obligations with respect to the sewer line owned by the City of Southlake. The Town is obligated to share in the cost of construction, operation and maintenance of the sewer line. The sewer line was constructed in 2000. Additionally, the Town must pay the Town of Southlake all transportation, treatment and related costs allocable to the metered flow of sewage from the Town into the sewer line. Note 8. Federal and State Program Revenues The Town received financial assistance from various federal and state governmental agencies in the form of grants for Westlake Academy. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any unallowed disbursement resulting from such audits becomes a liability of the Town. In the opinion of the Town management, no material refunds will be required as a result of unallowed disbursements (if any) by the grantor agencies. Sources of federal and state program revenues for the year ended September 30, 2018, were as follows: Westlake Academy Federal program revenues: U.S. Department of Education - Passed through State Department of Education Total federal program revenues 114,797$ State program revenues: State Department of Education 7,217,383$ Source Note 9. Interfund Balances and Transactions Interfund receivables and payables at September 30, 2018, were as follows: Due from Due to Other Funds Other Funds General fund 487,121$ -$ Nonmajor governmental funds: 4B Economic Development Fund - 487,121 487,121$ 487,121$ The 4B Economic Development Corporation Fund amount of $487,121 payable to the General Fund is related to debt service payment reimbursement. Inter-fund transfers are reported in the governmental funds and proprietary fund financial statements. In the government-wide statements, inter-fund transfers are eliminated within the governmental activities column and business-type column, as appropriate. Town of Westlake Notes to the Financial Statements 67 Individual fund transfers for fiscal year 2018 were as follows: Transfer out Transfer in Amount Purpose General Fund Debt Service Fund 911,268$ Debt service payments General Fund Westlake Academy 315,000 For student reserve fund General Fund Capital projects fund 950,450 For capital improvements Nonmajor Governmental Nonmajor Governmental 200,000 Economic development payments for benefit of Westlake Academy Nonmajor Governmental Debt Service 1,500,901 Debt service payments Utility Fund General Fund 71,466 Fort Worth impact revenue 3,949,085$ Note 10. Water Purchase and Wastewater Treatment Contracts The Town has a contract with the City of Fort Worth, Texas, to purchase water. Under the contract, the Town may obtain from the City of Fort Worth, a supply of potable water at a reasonable rate based on water usage. The rate charges are subject to minimum annual contract payments. Water expense for the year ended September 30, 2018 was $1,570,220. Note 11. Defined Benefit Pension Plan - TMRS Plan Description The Town participates as one of 866 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G , Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com. All eligible employees of the Town are required to participate in TMRS. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the Town, within the options available in the state statutes governing TMRS. At retirement, the benefit is calculated as if the sum of the employee’s contri butions, with interest, and the Town-financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest. Town of Westlake Notes to the Financial Statements 68 Employees Covered By Benefit Terms At the December 31, 2017 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees of beneficiaries currently receiving benefits 11 Inactive employees entitled to but not yet receiving benefits 22 Active employees 41 74 Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the Town matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the Town. Under the state law governing TMRS, the contribution rate for each Town is determined annually by the actuary, using the Entry Age Normal (EAN) actuari al cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the Town were required to contribute 7% of their annual gross earnings during the fiscal year. The contribution rates for the Town were 12.05% and 12.84% in calendar years 2017 and 2018, respectively. The Town’s contributions to TMRS for the year ended September 30, 2018, were $454,421, and were equal to the required contributions. Net Pension Liability The Town’s Net Pension Liability (NPL) was measured as of December 31, 2017, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial Assumptions The Total Pension Liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumptions:  Inflation 2.5% per year  Overall payroll growth 3.0% per year  Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation Salary increases were based on a service-related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Table, with male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment are used with males rates multiplied by 109% and female rates multiplied by 103% with a 3 -year set-forward for both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for younger members who become disabled. The rates are projected on a ful ly generational basis by scale BB to account for future mortality improvements subject to the 3% floor. Town of Westlake Notes to the Financial Statements 69 Actuarial assumptions used in the December 31, 201 7, valuation were based on the results of actuarial experience studies. The experience study in TMRS was for the period December 31, 2010 through December 31, 2014. Healthy post-retirement mortality rates and annuity purchase rates were updated based on a Mortality Experience Investigation Study covering 2009 through 2011, and dated December 31, 2013. These assumptions were first used in the December 31, 2013 valuation, along with a change to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed annually. No additional changes were made for the 2014 valuation. After the Asset Allocation Study analysis and experience investigation study, the Board amended the long -term expected rate of return on pension plan investments from 7% to 6.75%. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long- term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building - block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the are a between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). At its meeting on July 30, 2015, the TMRS Board approved a new portfolio target allocation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Long-Term Expected Real Asset Class Target Allocation Rate of Return (Arithmetic) Domestic Equity 17.5%4.55% International Equity 17.5%6.35% Core Fixed Income 10.0%1.00% Non-Core Fixed Income 20.0%4.15% Real Return 10.0%4.15% Real Estate 10.0%4.75% Absolute Return 10.0%4.00% Private Equity 5.0%7.75% Total 100.0% Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. Town of Westlake Notes to the Financial Statements 70 Allocations The Town’s net pension liability, pension expense, and deferred outflows of resources related to TMRS have been allocated between governmental activities and business-type activities using a contribution- based method. Changes in the Net Pension Liability Total Plan Net Pension Fiduciary Pension Liability Net Position Liability (a)(b)(a) - (b) Balance at 12/31/2016 6,304,274$ 4,827,793$ 1,476,481$ Changes for the year: Service Cost 566,643 - 566,643 Interest 439,725 - 439,725 Change of benefit terms - - - Difference between expected and actual experience (120,557) - (120,557) Changes of assumptions - - - Contributions - employer - 400,684 (400,684) Contributions - employee - 232,776 (232,776) Net investment income - 670,195 (670,195) Benefit payments, including refunds of employee contributions (146,316) (146,316) - Administrative expense (3,468) 3,468 Other changes - (176) 176 Net Changes 739,495 1,153,695 (414,200) Balance at 12/31/17 7,043,769$ 5,981,488$ 1,062,281$ Increase (Decrease) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Town, calculated using the discount rate of 6.75%, as well as what the Town’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (5.75%)(6.75%)(7.75%) Net pension liability 2,193,790$ 1,062,281$ 135,820$ Pension Plan Fiduciary Net Position Detailed information about the pension plan’s Fiduciary Net Position is available in a separately -issued TMRS financial report. That report may be obtained on the Internet at www.tmrs.com. Town of Westlake Notes to the Financial Statements 71 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2018, the Town recognized pension expense of $530,286. At September 30, 2018, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Difference between expected and actual economic experience 227,613$ 97,506$ Changes in actuarial assumptions 65,071 - Difference between projected and actual investment earnings - 168,060 Contributions subsequent to the measurement date 343,570 Total 636,254$ 265,566$ $343,570 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the year ending September 30, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended Net Deferred September 30,Outflows (Inflows) 2018 78,927$ 2019 54,075 2020 (27,277) 2021 (73,305) 2022 (5,302) Total 27,118$ Town of Westlake Notes to the Financial Statements 72 Note 12. Defined Benefit Pension Plan – TRS Plan Description The Academy participates in a cost-sharing multiple-employer defined benefit pension that has a special funding situation. The plan is administered by the Teacher Retirement System of Texas (TRS). TRS’s defined benefit pension plan is established and administered in accordance with the Texas Constitution, Article XVI, Section 67 and Texas Government Code, Title 8, Subtitle C. The pension trust fund is a qualified pension trust under Section 401(a) of the Internal Revenue Code. The Texas Legislature establishes benefits and contribution rates within the guidelines of the Texas Constitution. The pension’s Board of Trustees does not have the authority to establish or amend benefit terms. All employees of public, state-supported educational institutions in Texas who are employed for one -half or more of the standard work load and who are not exempted from membership under Texas Government Code, Title 8, Section 822.002 are covered by the system. Pension Plan Fiduciary Net Position Detailed information about the Teacher Retirement System’s fiduciary net positio n is available in a separately issued Comprehensive Annual Financial Report that includes financial statements and required supplementary information. That report may be obtained on the Internet at http://www.trs.state.tx.us/about/documents/cafr.pdf#CAFR; by writing to TRS at 1000 Red R iver Street, Austin, TX, 78701-2698; or by calling (512) 542-6592. Benefits Provided TRS provides service and disability retirement, as well as death and survivor benefits, to eligible employees (and their beneficiaries) of public and higher education in Texas. The pension formula is calculated using 2.3 percent (multiplier) times the average of the five highest annual creditable salaries times years of credited service to arrive at the annual standard annuity except for members who are grandfathered, the three highest annual salaries are used. The normal service retirement is at age 65 with five years of credited service or when the sum of the member’s age and years of credited service equals 80 or more years. Early retirement is at age 55 with five years of service credit or earlier than 55 with 30 years of service credit. There are additional provisions for early retirement if the sum of the member’s age and years of service credit total at least 80, but the member is less than age 60 or 62 depending on date of employment, or if the member was grandfathered in under a previous rule. There are no automatic post- employment benefit changes; including automatic COLAs. Ad hoc post-employment benefit changes, including ad hoc COLAs can be granted by the Texas Legislature as noted in the Plan description above. Contributions Contribution requirements are established or amended pursuant to Article 16, section 67 of the Texas Constitution which requires the Texas legislature to establish a member contribut ion rate of not less than 6% of the member’s annual compensation and a state contribution rate of not less than 6% and not more than 10% of the aggregate annual compensation paid to members of the system during the fiscal year. Texas Government Code section 821.006 prohibits benefit improvements, if as a result of the particular action, the time required to amortize TRS’ unfunded actuarial liabilities would be increased to a period that exceeds 31 years, or, if the amortization period already exceeds 31 yea rs, the period would be increased by such action. Town of Westlake Notes to the Financial Statements 73 Employee contribution rates are set in state statute, Texas Government Code 825.402. Senate Bill 1458 of the 83rd Texas Legislature amended Texas Government Code 825.402 for member contributions and established employee contribution rates for fiscal years 2015 thru 2016. The 84th Texas Legislature, General Appropriations Act (GAA) established the employer contribution rates for fiscal years 2017 and 2018. 2017 2018 Member 7.70%7.70% Non-employer contributing entity (State)6.80%6.80% Employers 6.80%6.80% 2018 Employer contributions 91,593$ 2018 Member contributions 407,324$ 2017 NECE on-behalf contributions 355,959$ Contribution rates Contributors to the plan include members, employers and the State of Texas as the only non-employer contributing entity. The State is the employer for senior colleges, medical schools and state agencies including TRS. In each respective role, the State contributes to the plan in accordanc e with state statutes and the General Appropriations Act (GAA). As the non-employer contributing entity for public education and junior colleges, the State of Texas contributes to the retirement system an amount equal to the current employer contributi on rate times the aggregate annual compensation of all participating members of the pension trust fund during that fiscal year reduced by the amounts described below whi ch are paid by the employers. Employers (public school, junior college, other entities or the State of Texas as the employer for senior universities and medical schools) are required to pay the employer contribution rate in the following instances:  On the portion of the member's salary that exceeds the statutory minimum for members entitled to the statutory minimum under Section 21.402 of the Texas Education Code.  During a new member’s first 90 days of employment.  When any part or all of an employee’s salary is paid by federal funding sources, a privately sponsored source, from non-educational and general, or local funds.  When the employing district is a public junior college or junior college district, the employer shall contribute to the retirement system an amount equal to 50% of the state contribution rate for certain instructional or administrative employees; and 100% of the state contribution rate for all other employees. In addition to the employer contributions listed above, there are two additional surcharges an employer is subject to:  When employing a retiree of the Teacher Retirement System the employer shall pay both the member contribution and the state contribution as an employment after retirement surcharge  When a school district or charter school does not contribute to the Federal Old -Age, Survivors and Disability Insurance (OASDI) Program for certain employees, they must contribute 1.5% of the state contribution rate for certain instructional or administrative employees; and 100% of the state contribution rate for all other employees. Town of Westlake Notes to the Financial Statements 74 Actuarial Assumptions The total pension liability in the August 31, 2017 actuarial valuation was determined using the following actuarial assumptions: Valuation Date August 31, 2017 Actuarial Cost Method Individual Entry Age Normal Asset Valuation Method Market Value Single Discount Rate 8.00% Long-term expected Investment Rate of Return* 8.00% Inflation 2.50% Salary Increases including inflation 3.50% to 9.50% Payroll Growth Rate 2.50% Benefit Changes during the year None Ad hoc post-employment benefit changes None The actuarial methods and assumptions are primarily based on a study of actual experience for the four-year period ending August 31, 2014 and adopted on September 24, 2015. Discount Rate The discount rate used to measure the tot al pension liability was 8.0%. There was no change in the discount rate since the previous year. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those of the contributing employers and the n on- employer contributing entity are made at the statutorily required rates. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term rate of return on pension plan investments is 8%. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimates ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Town of Westlake Notes to the Financial Statements 75 Best estimates of geometric real rates of return for each major asset class included in the Systems target asset allocation as of August 31, 2017 are summarized below: Long-term Expected Portfolio Target Real Return Real Rate of Allocation Geometric Basis Return* Global Equity U.S.18%4.6%1.0% Non-U.S. Developed 13%5.1%0.8% Emerging Markets 9%5.9%0.7% Directional Hedge Funds 4%3.2%0.1% Private Equity 13%7.0%1.1% Stable Value U.S. Treasuries 11%0.7%0.1% Absolute Return 0%1.8%0.0% Stable Value Hedge Funds 4%3.0%0.1% Cash 1%-0.2%0.0% Real Return Global Inflation Linked Bonds 3%0.9%0.0% Real Assets 16%5.1%1.1% Energy and Natural Resources 3%6.6%0.2% Commodities 0%1.2%0.0% Risk Parity Risk Parity 5%6.7%0.3% Inflation Expectation 2.2% Alpha 1.0% Total 100.0%8.7% Asset Class *The Expected Contribution to Returns incorporates the volatility drag resulting from the conversion between Arithmetic and Geometric mean returns. Discount Rate Sensitivity Analysis The following schedule shows the impact of the Net Pension Liability if the discount rate used was 1% less than and 1% greater than the discount rate that was used (8%) in measuring the 201 7 Net Pension Liability. 1% Decrease in Discount 1% Increase in Discount Rate (7.0%)Rate (8.0%)Discount Rate (9.0%) Academy's proportionate share of the TRS net pension liability 1,509,911$ 895,663$ 384,202$ Town of Westlake Notes to the Financial Statements 76 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At August 31, 2017, the Academy reported a liability of $895,663 for its proportionate share of the TRS’s net pension liability. This liability reflects a reduction for State pension support provided to the Academy. The amount recognized by the Academy as its proportionate share of the net pension liability, the relat ed State support, and the total portion of the net pension liability that was associated with the Academy were as follows: Academy's proportionate share of the collective net pension liability 895,663$ State's proportionate share that is associated with Academy 3,480,057 4,375,720$ The net pension liability was measured as of August 31, 2017 and the total pension liability used to calculate the net pension liability was determined by an actua rial valuation as of that date. The employer’s proportion of the net pension liability was based on the employer’s contributions to the pension plan relative to the contributions of all employers to the plan for the period September 1, 2016 thru August 31, 2017. At August 31, 2017, the employer’s proportion of the collective net pension liability was 0.00 28012% which was an increase of 0.000019% from its proportion measured as of August 31, 2016. Changes since the Prior Actuarial Valuation There were no changes to the actuarial assumptions or other inputs that affected measurement of the total pension liability since the prior measurement period. There were no changes of benefit terms that affected measurement of the total pension liability during the measurement period. For the year ended August 31, 2018, the Academy recognized pension expense of $441,006 and revenue of $265,445 for support provided by the State. Town of Westlake Notes to the Financial Statements 77 At August 31, 2018, the Academy reported its proportionate share of the TRS’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Difference between expected and actual economic experience 13,104$ 48,302$ Changes in actuarial assumptions 40,799 23,356 Changes in proportionate share 364,013 913 Difference between projected and actual investment earnings - 65,274 Contributions paid to TRS subsequent to the measurement date 91,593 - Total 509,509$ 137,845$ The $91,593 reported as a deferred outflow of resources resulting from Academy contributions made subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending August 31, 2019. The other amounts of the employer’s balances of deferred outflow s and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended Net Deferred Aug. 31,Outflows (Inflows) 2019 63,372$ 2020 120,544 2021 58,977 2022 36,466 2023 857 Thereafter (145) Total 280,071$ Note 13. Other Post-Employment Benefits – TMRS Plan Description Texas Municipal Retirement System (“TMRS”) administers a defined benefit group-term life insurance plan known as the Supplemental Death Benefits Fund (“SDBF”). This is a voluntary program in which participating member cities may elect, by ordinance, to provide group-term life insurance coverage for their active members, including or not including retirees. Employers may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before No vember 1 of any year to be effective the following January 1. The Town has elected to participate in the SDBF for its active members including retirees. As the SDBF covers both active and retiree participants, with no segregation of assets, the SDBF is considered to be an unfunded single-employer OPEB plan (i.e. no assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75) for Town reporting. Town of Westlake Notes to the Financial Statements 78 Benefits Provided The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s annual salary (calculated based on the employee’s actual earnings, for the 12 -month period preceding the month of death). The death benefit for retirees is considered an other postemployment benefit (“OPEB”) and is a fixed amount of $7,500. At the December 31, 2017 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees currently receiving benefits 6 Inactive employees entitled to but not yet receiving benefits 3 Active employees 41 50 Contributions The member city contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is equal to the cost of providing one -year term life insurance. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year. The intent is not to pre -fund retiree term life insurance during employees’ entire careers. Contributions are made monthly based on the covered payroll of employee members of the participating member city. The contractually required contribution rate is determined annually for each Town. The rate is based on the mortality and service experience o f all employees covered by the SDBF and the demographics specific to the workforce of the city. There is a one-year delay between the actuarial valuation that serves as the basis for the employer contribution rate and the calendar year when the rate goes into effect. The funding policy of this plan is to assure that adequate resources are available to meet all death benefit payments for the upcoming year. The retiree portion of contribution rates to the SDBF for the Town was 0.00% and 0.01% in calendar years 2017 and 2018. The Town’s contributions to the SDBF for the year ended September 30, 2018 were $6,380, and were equal to the required contributions. Total OPEB Liability The Town’s Total OPEB Liability (TOL) was measured as of December 31, 2017 and was determined by an actuarial valuation as of that date. Town of Westlake Notes to the Financial Statements 79 Actuarial Assumptions The Total OPEB Liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Salary increases 3.5% to 10.5% including inflation Discount rate 3.31% Retiree's share of benefit-related costs 0.00% Salary increases were based on a service-related table. Mortality rates for service retirees were based on the RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied by 109% and female rates multiplied by 103% and projected on a fully generational basis with scale BB. Mortality rates for disabled retirees were based on the RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied by 109% and female rates multiplied by 103% with a 3 -year set-forward for both males and females. The rates are projected on a fully generationa l basis with scale BB to account for future mortality improvements subject to the 3% floor. The actuarial assumptions used in the December 31, 2017, valuation were developed primarily from an actuarial experience study of the four-year period from December 31, 2010 through December 31, 2014. They were adopted in 2015 and first used in the December 31, 2015 actuarial valuation. The post -mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. In conjunction with these changes first used in the December 31, 2013 valuation, TMRS adopted the Entry Age Normal Actuarial Cost Method. The discount rate used to measure the Total OPEB Liability was 3.31% and was based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of December 31, 2017. Town of Westlake Notes to the Financial Statements 80 Changes in Total OPEB Liability Total OPEB Liability Balance at 12/31/2016 39,253$ Changes for the year: Service Cost 6,318 Interest on Total OPEB Liability 1,603 Change of benefit terms - Difference between expected and actual experience - Changes of assumptions or other inputs 4,872 Benefit payments 4,816 Administrative expense - Other changes - Net changes 17,609 Balance at 12/31/17 56,862$ Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the Town, calculated using the discount rate of 3.31%, as well as what the Town’s total OPEB liability would be if it were calculated using a discount rate that i s 1 percentage-point lower (2.31%) or 1 percentage-point higher (4.31%) than the current rate: 1% Decrease 1% Increase in Discount Discount in Discount Rate (2.31%)Rate (3.31%)Rate (4.31%) Total OPEB Liability 64,808$ 56,862$ 42,389$ Town of Westlake Notes to the Financial Statements 81 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2018, the Town recognized pension expense of $8,580. At September 30, 2018, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Changes in assumptions and other inputs 4,213$ -$ Contributions subsequent to the measurement date 4,816 - Total 9,029$ -$ The $4,816 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will reduce the Total OPEB liability during the year ending September 30, 2019. The other amounts reported as deferred outflows and i nflows of resources related to OPEB will be recognized in OPEB expense as follows: Fiscal Year Ended Net Deferred Sept. 30:Outflows (Inflows) 2019 659$ 2020 659 2021 659 2022 659 2023 659 Thereafter 918 Total 4,213$ Note 14. Health Care Coverage During the period ended August 31, 2018, employees of the Academy (a blended component unit of the Town) who met minimum eligibility requirements were covered by a state -wide health care plan, TRS Active Care. The Academy's participation in this plan is re newed annually. The Academy paid into the Plan $351 per month per employee and $276 per month when the employee works less than 30 hours per week if eligible to enroll in TRS Active Care. Employees, at their option, pay premiums for any coverage above these amounts as well as for dependent coverage. The Teacher Retirement System (TRS) manages TRS Active Care. The medical plan is administered by Aetna, and Caremark Health administers the prescription drug plan. The latest financial information on the state-wide plan may be obtained by writing to the TRS Communications Department, 1000 Red River Street, Austin, Texas 78701, by calling the TRS Communications Department at 1 -800-223-8778, or by downloading the report from the TRS Internet website, www.trs.state.tx.us, under the TRS Publications heading. Town of Westlake Notes to the Financial Statements 82 Note 15. Defined Other Post Employment Benefit Plan – TRS Plan Description The Academy participates in the Texas Public School Retired Employees Group Insurance Program (TRS-Care). It is a multiple-employer, cost-sharing defined Other Post-Employment Benefit (OPEB) plan that has a special funding situation. The plan is administered through a trust by the Teacher Retirement System of Texas (TRS) Board of Trustees. It is established and administered in accordance with the Texas Insurance Code, Chapter 1575. OPEB Plan Fiduciary Net Position Detail information about the TRS-Care’s fiduciary net position is available in the separately-issued TRS Comprehensive Annual Financial Report that includes financial statements and required supplementary information. That report may be obtained on the Internet at http://www.trs.state.tx.us/about/documents/cafr.pdf#CAFR; by writing to TRS at 1000 Red River Street, Austin, TX, 78701-2698; or by calling (512) 542-6592. Benefits Provided TRS-Care provides a basic health insurance coverage (TRS-Care 1), at no cost to all retirees from public schools, charter schools, regional education service centers and other educational Academys who are members of the TRS pension plan. Optional dependent coverage is available for an additional fee. Eligible retirees and their dependents not enrolled in Medicare may pay premiums to participate in one of two optional insurance plans with more comprehensive benefits (TRS-Care 2 and TRS-Care 3). Eligible retirees and dependents enrolled in Medicare may elect to participate in one of the two Medicare health plans for an additional fee. To qualify for TRS -Care coverage, a retiree must have at least 10 years of service credit in the TRS pension system. The Board of Trustees is granted the authority to establish basic and optional group insurance coverage for participants as well as to amend benefit terms as needed under Chapter 1575.052. There are no automatic post-employment benefit changes; including automatic COLAs. The premium rates for the optional health insurance are based on years of service of the member. The schedule below shows the monthly rates for the average retiree with Medicare Parts A&B coverage, with 20 to 29 years of service for the basic plan and the two optional plans. TRS-Care 1 TRS-Care 2 TRS-Care 3 Basic Plan Optional Plan Optional Plan Retiree*-$ 70$ 100$ Retiree and spouse 20 175 255 Retiree* and children 41 132 182 Retiree and family 61 237 337 Surviving children only 28 62 82 * or surviving spouse TRS-Care Plan Premium Rates Effective September 1, 2016 - December 31, 2017 Town of Westlake Notes to the Financial Statements 83 Contributions Contribution rates for the TRS-Care plan are established in state statute by the Texas Legislature, and there is no continuing obligation to provide benefits beyond each fiscal year. The TRS-Care plan is currently funded on a pay-as-you-go basis and is subject to change based on available funding. Funding for TRS - Care is provided by retiree premium contributions and contributions from the stat e, active employees, and Academy based upon Academy payroll. The TRS Board of trustees does not have the authority to set or amend contribution rates. Texas Insurance Code, Section 1575.202 establishes the state’s contribution rate which is 1.0% of the employee’s salary. Section 1575.203 establishes the active employee’s rate which is .65% of pay. Section 1575.204 establishes an employer contribution rate of not less than 0.25 percent or not more than 0.75 percent of the salary of each active employee of the public. The actual employer contribution r ate is prescribed by the Legislature in the General Appropriations Act. The following table shows contributions to the TRS-Care plan by type of contributor. 2018 2017 Active employee 0.65%0.65% Non-employer contribution entity (state)1.25%1.00% Employers/District 0.75%0.55% Federal/private funding remitted by Employers 1.25%1.00% The contribution amounts for the Academy’s fiscal year 2018 are as follows: 2018 Employer contributions 46,204$ 2018 Member contributions 407,324$ 2018 NECE on-behalf contributions 52,680$ In addition to the employer contributions listed above, there is an additional surcharge all TRS employers are subject to (regardless of whether or not they participate in the TRS Care OPEB program ). When employers hire a TRS retiree, they are required to pay to TRS Care, a monthly surcharge of $535 per retiree. TRS-Care received supplemental appropriations from the State of Texas as the Non-Employer Contributing Entity in the amount of $15.6 million in fiscal year 2017 and $182.6 million in fiscal ye ar 2018. Town of Westlake Notes to the Financial Statements 84 Actuarial Assumptions The total OPEB liability in the August 31, 2017 actuarial valuation was determined using the following actuarial assumptions: Rates of mortality General inflation Rates of retirement Wage inflation Rates of termination Expected payroll growth Rates of disability incidence Additional Actuarial Methods and Assumptions: Valuation date August 31, 2017 Actuarial cost method Individual entry age normal Inflation 2.50% Discount rate* 3.42%* Aging factors Based on plan specific experience Expenses third-party administrative expenses related to the delivery of health care benefits are included in the age- adjusted claims costs. Payroll growth rate 2.50% Projected salary increases** 3.50% to 9.50%** Healthcare trend rates*** 4.50% to 12.00%*** Election Rates Normal retirement: 70% participation prior to age 65 and 75% participation after age 65 Ad hoc post-employment benefit changes None *Source: Fixed income municipal bonds with 20 years to maturity that include only federal tax-exempt municipal bonds as reported in Fidelity Index’s “20-Year Municipal GO AA Index” as of August 31, 2017. **Includes inflation at 2.50% ***Initial trend rates are 7.00% for non-Medicare retiree; 10.00% for Medicare retirees and 12.00% for prescriptions for all retirees. Initial trend rates decrease to an ultimate trend rate of 4.50% over a period of 10 years. Other information - There was a significant plan change adopted in fiscal year ending August 31, 2017. Effective January 1, 2018, only one health plan option will be offered and all retirees will be required to contribute monthly premiums for coverage. Assumption changes made for the August 31, 2017 valuation include a change to the assumption regarding the phase-out of the Medicare Part D subsidies and a change to the discount rate from 2.98% as of August 31, 2016 to 3.42% as of August 31, 2017. Discount Rate A single discount rate of 3.42% was used to measure the total OPEB liability. There was a change of .44 percent in the discount rate since the previous year. Because the plan is essentially a “pay-as-you-go” plan, the single discount rate is equal to the prevailing municipal bond rate. The projection of cash flows used to determine the discount rate assumed that contributions from active members and those of the contributing employers and the non -employer contributing entity are made at the statutorily required rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, the municipal bond rate was applied to all periods of projected benefit payments to det ermine the total OPEB liability. Town of Westlake Notes to the Financial Statements 85 Discount Rate Sensitivity Analysis. The following schedule shows the impact of the Net OPEB Liability if the discount rate used was 1% less than and 1% greater than th e discount rate that was used (3.42%) in measuring the Net OPEB Liability. 1% Decrease in Discount 1% Increase in Discount Rate Rate Discount Rate (2.42%)(3.42%)(4.42%) Academy's proportionate share of the net OPEB liability 3,019,446$ 2,558,314$ 2,187,668$ Healthcare Cost Trend Rates Sensitivity Analysis. The following presents the net OPEB liability of the plan using the assumed healthcare cost trend rate, as well as what the net OPEB liability would be if it were calculated using a trend rate that is one-percentage point lower or one-percentage point higher than the assumed healthcare cost trend rate. 1% Decrease in Discount 1% Increase in Discount Rate Rate Discount Rate Academy's proportionate share of the net OPEB liability 2,130,052$ 2,558,314$ 3,120,248$ OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs At August 31, 2018, the Academy reported a liability of $2,558,314 for its proportionate share of the TRS’s Net OPEB Liability. This liability reflects a reduction for State OPEB support provided to the Academy. The amount recognized by the Academy as its proportionate share of the net OPEB liability, the related State support, and the total portion of the net OPEB liability that was associated with the Academy were as follows: Academy's proportionate share of the collective net pension liability 2,558,314$ State's proportionate share that is associate with Academy 4,406,333 Total 6,964,647$ The Net OPEB Liability was measured as of August 31, 2017 and the Total OPEB Liability used to calculate the Net OPEB Liability was determined by an actuarial valuation as of that date. The employer’s proportion of the Net OPEB Liability was based on the employer’s contributions to the OPEB p lan relative to the contributions of all employers to the plan for the period September 1, 2016 thru August 31, 2017. At August 31, 2017 the employer’s proportion of the collec tive Net OPEB Liability was .00588304% which was the same proportion measured as of August 31, 2016. Changes Since the Prior Actuarial Valuation . The following were changes to the actuarial assumptions or other inputs that affected measurement of the Total OPEB liability since the prior measurement period . The following assumptions and other inputs which are specific to TRS-Care were updated during the year ended August 31, 2017: 1. Effective January 1, 2018, only one health plan option will exist (instead of three), and all retirees will be required to contribute monthly premiums for coverage. The health plan changes triggered changes to several of the assumptions, including participation rates, retirement rates, and spousal participation rates. Town of Westlake Notes to the Financial Statements 86 2. The August 31, 2016 valuation had assumed that the savings related to the Medicare Part D reimbursements would phase out by 2022. This assumption was removed for the August 31, 2017 valuation. Although there is uncertainty regarding these federal subsidies, the new assumption better reflects the current substantive plan. This change was unre lated to the plan amendment, and its impact was included as an assumption change in the reconciliation of the total OPEB liability. This change significantly lowered the OPEB liability. 3. The discount rate changed from 2.98 percent as of August 31, 2016 to 3 .42 percent as of August 31, 2017. This change lowered the total OPEB liability. For the year ended August 31, 2018, the Academy recognized OPEB expense of ($2,326,965) and revenue of ($1,474,476) for support provided by the State. At August 31, 2018, the Academy reported its proportionate share of the TRS’s deferred outflows of resources and deferred inflows of resources related to other post-employment benefits from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience -$ 53,407$ Changes in actuarial assumptions - 1,016,741 Difference between projected and actual investment earnings 389 - Changes in proportion and difference between the employer’s contributions and the proportionate share of contributions 10 - Contributions paid to TRS subsequent to the measurement date 46,204 - Total 46,603$ 1,070,148$ The $46,204 deferred outflow of resources resulting from Academy contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended August 31, 2019. The net amounts of the remaining balances of deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: OPEB Expense Year Ended (Income) August 31, Amount 2019 (141,154)$ 2020 (141,154) 2021 (141,154) 2022 (141,154) 2023 (141,251) Thereafter (363,882) Total (1,069,749)$ Town of Westlake Notes to the Financial Statements 87 Note 16. Risk Management The Town is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees, and natural disasters. The Town's general liability, workers' compensation liability, law enforcement liability, errors and omissions liability, and automobile liability coverage is insured by the Texas Municipal League, a public entity risk pool. The Town's only responsibility to the Texas Municipal League is to pay premiums for insurance and related deductible amounts of these policies. Other risk of loss is covered by commercial insurance. Settlements of claims have not exceeded coverage in the past three years. Note 17. Contingent Liabilities Litigation Various claims and lawsuits are pending against the Town. In the opinion of Town management, after consultation with legal counsel, the potential loss on these claims and lawsuits will not materially affect the Town's financial position. Circle T Municipal Utility Districts The Town and Hillwood are currently in discussions regarding the debt for Municipal Utility District's (MUDs) #1 and #3 on the Circle T property in Westlake which is controlled by AIL Investments, L.P. As this property develops, Hillwood agreed to de-annex developed property from the MUDs in exchange for pro-rata payments on water and sewer infrastructure installed by the MUD s at their inception. To date, three projects, Lexington TNI, Deloitte University, and Charles Schwab, have been or are being developed within these MUDs. Discussions regarding the Town's payment to AIL Investments, L.P. in exchange for de-annexation of these two tracks from the Circle T MUDs have taken place but have not come to a conclusion as to the settlement amounts. These discussions are ongoing until the Town receives full documentation that it determines is adequate to support the requested payments. The To wn of Westlake holds full rights and privileges under the State granted Certificate of Convenience and Necessity (CCN) and can serve all water and sewer customers within these MUD boundaries regardless of the status of these negotiations. Note 18. Solana Public Improvement District On February 24, 2014, the Town Council granted a petition by Maguire Partners -Solana Land, LP in resolution 14-07 to authorize and provide for the creation of a public improvement district, The Solana Public Improvement District (“the District”). The District encompasses approximately 85 acres currently being developed as a master-planned mixed-use development known as “Westlake Entrada” that is expected to include, among other things, condominiums, residential villas, ho tels, office, retail, commercial, institutional and hospitality uses, and a wedding event center. The District was created in accordance with Chapter 372 of the Texas Local Government Code. Town of Westlake Notes to the Financial Statements 88 On February 5, 2015, the Town Council approved issuance of $26,1 75,000 of Special Assessment Revenue Bonds, Series 2015 related to the District. The Public Improvement District B onds (The Bonds) are special and limited obligations of the Town payable solely from the pledged revenues and other funds comprising the Trust Estate, as and to the extent provided in th e indenture. The bonds do not give rise to a charge against the general credit or taxing power of the Town and are payable solely from the sources identified in the indenture. The owners of the bonds shall never have the right to demand payment thereof out of money raised or to be raised by taxation, or out of any funds of the Town other than the Trust Estate, as and to the extent provided in the indenture; and, no owner of the bonds shall have the right to demand any exercise of the Town’s taxing power to pay the principal of the bonds or the interest or redem ption premium, if any, thereon. The Town shall have no legal or moral obligation to pay the bonds out of any funds of the Town other than the Trust Estate in accordance with the Texas Local Government Code. The proceeds from the bond issue are being used as follows: payment of a portion of the costs of construction, acquisition, or purchase of certain water, wastewater and roadway public improvements for the special benefit of the District; funding a reserve fund; funding capitalized interest; payment of a portion of the costs incidental to the organization of the District; and payment of the cost of issuance of the bonds. The Town is not, and will not be obligated to provide any funds to finance constructi on of authorized improvements. All design and construction costs of the District’s authorized public improvements will be paid from the District assessments and from other sources of funds, if any, to the extent provided in the Trust Indenture. Note 19. Tax Abatements The Town enters into economic development agreements authorized under Chapter 380 of the Texas Local Government Code and Chapter 312 of the Texas Tax Code. These agreements are planning tools designed to stimulate economic activity, redevelopment, communit y improvement, and provide a return on investment for the community. These programs abate or rebate property and/or sales and hotel/motel taxes and may include other incentive payments such as fee reductions or construction costs reimbursements. Economic development agreements are considered on a case-by-case basis by the Town Council and generally contain recapture provisions, which may require repayment or termination if recipients do not meet the required provisions of the economic incentives. Other Economic Agreements Chapter 380 of the Texas Local Government Code allows the Town to provide grants for the purpose of promoting local economic development. These grants are based on a percentage of property and/or sales tax received by the Town. For the fiscal year ending September 30, 2018, the Town abated $246,646 in property taxes; $422,441 in sales taxes; and $47,410 in hotel/motel taxes. Note 20. Going Concern The 2018 financial statements were prepared assuming the Texas Student Housing entities will continue as going concerns. The Texas Student Housing entities’ bonds payable are considered to be in default due to not making full principal and interest payments and, t herefore, are reported as current liabilities. This is considered an event of default by the Trustees, which gives the bondholders the right to accelerate and demand payment of the bonds in full. Management and the property managers are in the process of developing and implementing plans to increase occupancy and rental rates at the properties to improve their financial performance. Town of Westlake Notes to the Financial Statements 89 Note 21. Expenditures In Excess of Appropriations For the year ended September 30, 2018, the Westlake Academy Fund expenditures exceeded appropriations by $93,311. The over-expenditure will be addressed through future appropriations. Note 22. Cumulative Effect of Change in Accounting Principle As a result of the implementation of GASB Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions”, the following adjustments were made to beginning net position: Governmental Business-Type Activities Activities Beginning Net position before restatement 58,048,432$ 1,836,874$ Deferred outflow (TMRS)3,856 474 Total Pension Liability (TMRS)(34,959) (4,294) Deferred outflow (TRS)36,022 - Net OPEB Liability (TRS)(4,516,574) - Cumulative effect of change in accounting principle (4,511,655) (3,820) Beginning Net position 53,536,777$ 1,833,054$ 90 Required Supplementary Information 91 Town of Westlake Exhibit B-1 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – General Fund For the Year Ended September 30, 2018 92 Variance Favorable Original Amended Actual (Unfavorable) REVENUES Taxes Sales 3,510,500$ 3,510,500$ 4,080,263$ 569,763$ Property 1,205,205 1,325,125 1,329,236 4,111 Mixed beverages 62,500 62,500 62,347 (153) Franchise 983,630 983,815 779,506 (204,309) Interest income 45,575 183,735 237,164 53,429 Building permits and fees 2,445,266 2,420,481 2,314,933 (105,548) Fines and penalties 809,880 715,545 633,318 (82,227) Contributions - 142,240 37,238 (105,002) Miscellaneous 78,035 137,960 206,305 68,345 Total revenues 9,140,591 9,481,901 9,680,310 198,409 EXPENDITURES Current General government 3,632,122 3,946,671 3,672,933 273,738 Public safety 3,096,217 3,234,696 2,992,727 241,969 Cultural and recreation 360,288 348,172 183,816 164,356 Public works 438,069 581,569 620,985 (39,416) Capital outlay 212,000 248,125 209,164 38,961 Debt service Principal retirement 36,680 36,697 36,677 20 Total expenditures 7,775,376 8,395,930 7,716,302 679,628 Excess of revenues over expenditures 1,365,215 1,085,971 1,964,008 878,037 OTHER FINANCING SOURCES (USES) Transfers in 50,000 62,000 71,466 9,466 Transfers out (2,787,892) (1,789,669) (2,176,718) (387,049) Net other financing sources (uses)(2,737,892) (1,727,669) (2,105,252) (377,583) NET CHANGE IN FUND BALANCE (1,372,677) (641,698) (141,244) 500,454 FUND BALANCE AT BEGINNING OF YEAR 10,937,492 10,937,492 10,937,492 - FUND BALANCE AT END OF YEAR 9,564,815$ 10,295,794$ 10,796,248$ 500,454$ General Fund Budgeted Amounts Town of Westlake Exhibit B-2 Schedule of Revenues, Expenditures And Changes in Fund Balances Budget and Actual – Westlake Academy For the Year Ended September 30, 2018 93 Variance Favorable Original Final Actual (Unfavorable) REVENUES State program revenues 7,159,096$ 7,030,713$ 7,217,383$ 186,670$ Federal program revenues 104,000 114,797 114,797 - Interest income 3,000 9,000 9,878 878 Local and intermediate sources 1,334,900 1,480,986 1,520,125 39,139 Total revenues 8,600,996 8,635,496 8,862,183 226,687 EXPENDITURES Education 8,643,210 8,919,037 9,012,348 (93,311) Interest and other fiscal charges 8,885 8,885 8,885 - Total expenditures 8,652,095 8,927,922 9,021,233 (93,311) Deficiency of revenues under expenditures (51,099) (292,426) (159,050) 133,376 OTHER FINANCING SOURCES Transfers in 315,000 315,000 315,000 - Total other financing sources 315,000 315,000 315,000 - NET CHANGE IN FUND BALANCE 263,901 22,574 155,950 133,376 FUND BALANCE AT BEGINNING OF YEAR 965,248 965,248 965,248 - FUND BALANCE AT END OF YEAR 1,229,149$ 987,822$ 1,121,198$ 133,376$ Westlake Academy Budgeted Amounts Town of Westlake Notes to Budgetary Comparison Schedules 94 Budgetary Information – The Town follows these procedures annually in establishing the budgetary data reflected in the budgetary comparison schedules: 1. The Town Manager submits to the Town Council a proposed budget for the fiscal year commencing the following October 1. The budget includes proposed expenditures and the means of financing them. 2. Prior to October 1, the budget is legally adopted through passage of an ordinance. This budget is reported as the Original Budget in the budgetary comparison schedules. 3. During the fiscal year, changes to the adopted budget may be authorized, as follows: a. Items requiring Town Council action - appropriation of fund balance reserves; transfers of appropriations between funds; new inter-fund loans or advances; and creation of new capital projects or increases to existing capital projects. b. Items delegated to the Town Manager - appropriation balances from an expenditure account to another within a single fund. 4. Annual budgets are legally adopted and amended as required for the general, special revenue and debt service funds. Project length budgets are adopted for the capi tal projects funds. All budgets are adopted on a basis consistent with generally accept ed accounting principles. Budgets are adopted for the proprietary funds annually only as a management tool. There are no legally mandated budgetary constraints for the p roprietary funds. 5. Budget amounts are reflected after all authorized amendments and revisions. This budget is reported as the Final Budget in the budgetary comparison schedules. 6. The appropriated budget is prepared by fund, function and department. The Tow n's management may make transfers of appropriations within a fund. Transfers of appropriations between funds require the approval of the Town Council. The legal level of budgetary control is the fund level. The Town Council made several supplementary budget appropriations during the year. 7. Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting under which purchase orders, contracts and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation is utilized in the governmental funds. Encumbrances lapse at year -end and do not constitute expenditures or liabilities because the commitments must be re-appropriated and honored during the subsequent year. Town Of Westlake Exhibit B-3 Schedule of Net Pension Liability and Related Ratios Texas Municipal Retirement System Pension Plan Last Four Measurement Years 95 2017 2016 2015 2014 Total pension liability Service cost 566,643$ 483,414$ 435,146$ 288,923$ Interest 439,725 371,753 317,982 264,994 Change in benefit terms - - - - Difference between expected and actual experience (120,557) 212,434 96,226 176,965 Change in assumptions - - 139,579 - Benefit payments (146,316) (58,144) (38,289) (55,762) Net change in total pension liability 739,495 1,009,457 950,644 675,120 Total pension liability, beginning 6,304,274 5,294,817 4,344,173 3,669,053 Total pension liability, ending 7,043,769 6,304,274 5,294,817 4,344,173 Plan fiduciary net position Contributions, employer 400,684 330,604 290,278 172,064 Contributions, nonemployer 232,776 203,359 188,725 152,077 Net investment income 670,195 276,056 5,368 182,430 Benefit payments (146,316) (58,144) (38,289) (55,762) Administrative income (3,468) (3,113) (3,268) (1,904) Other (176) (168) (191) (127) Net change in plan fiduciary net position 1,153,695 748,594 442,623 448,778 Plan fiduciary net position, beginning 4,827,793 4,079,199 3,636,576 3,187,798 Plan fiduciary net position, ending 5,981,488 4,827,793 4,079,199 3,636,576 Town's net pension liability, ending 1,062,281$ 1,476,481$ 1,215,618$ 707,597$ Plan fiduciary net position as a % of total pension liability 84.92%76.58%77.04%83.71% Covered payroll 3,325,369$ 2,905,134$ 2,696,072$ 2,172,525$ Town's net pension liability as a % of payroll 31.94%50.82%45.09%32.57% Note: Only four years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the 10-year schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the transition period, that information should be presented for as many periods as are available. The schedules should not include information that is not measured in accordance with the requirements of this statement. Additional years’ will be displayed as it becomes available.” Town of Westlake Exhibit B-4 Schedule of Pension Contributions Texas Municipal Retirement System Pension Plan Last Four Measurement Years 96 2018 2017 2016 2015 Actuarially determined contributions 454,421$ 419,720$ 316,618$ 277,651$ Contributions in relation to the actuarially determined contributions (454,421) (419,720) (316,618) (277,651) Contribution deficiency (excess)-$ -$ -$ -$ Covered payroll 3,595,707 3,325,369 2,821,349 2,778,776 Contributions as a percentage of covered payroll 12.64%12.62%11.22%9.99% Note: GASB #68, paragraph 81.2.b requires that the data in this schedule be presented as of the Town’s fiscal year as opposed to the time period covered by the measurement date. Note: Only four years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the 10-year schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the transition period, that information should be presented for as many periods as are available. The schedules should not include information that is not measured in accordance with the requirements of this statement. Additional years’ informa tion will be displayed as it becomes available.” Town of Westlake Notes to Texas Municipal Retirement System Pension Plan Required Supplementary Information For the Year Ended September 30, 2018 97 Valuation Date Actuarial determined contribution rates are calculated as of December 31 each year and become effective in January, 12 months and one day later. Methods and Assumptions used to Determine Contribution Rates Actuarial cost method Entry age normal Amortization method Level percentage of payroll, closed Remaining amortization period 26 years Asset valuation method 10 year smoothed market; 15% soft corridor Inflation 2.50% Salary increases 3.50% to 10.50% including inflation Investment rate of return 6.75% Retirement age Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2015 valuation pursuant to an experience study of the period 2010 - 2014. Mortality RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied by 109% and female rates multiplied by 103% and projected on a fully generational basis with scale BB. Other information There were no benefit changes during the year. Town of Westlake Exhibit B-5 Schedule of Academy’s Proportionate Share of Net Pension Liability – Teacher Retirement System Pension Plan Last Four Measurement Years 98 2017 2016 2015 2014 Academy's proportion of the net pension liability 0.0028012%0.0027822%0.0030945%0.0007190% Academy's proportionate share of net pension liability 895,663$ 1,051,346$ 1,093,865$ 192,056$ State's proportionate share of net pension liability associated with the Westlake Academy 3,480,057 4,035,754 3,667,893 2,965,583 Total 4,375,720$ 5,087,100$ 4,761,758$ 3,157,639$ Academy's covered payroll 5,391,515$ 5,094,571$ 4,784,695$ 4,300,931$ Academy's proportionate share of net pension liability as a percentage of its covered payroll 16.61%20.64%22.86%4.47% Plan fiduciary net position as a percentage of total pension liability 82.17%78.00%78.43%83.25% Note: Only four years of data is presented in accordance with GASB #68, paragraph 138. "The information for all periods for the 10- year schedules that are required to be presented as required supplementary information may not be available initially. In the se cases, during the transition period, that information should be presented for as many years as are available. The schedules should not include information that is not measured in accordance with the requirements of this Statement." Town of Westlake Exhibit B-6 Schedule of Pension Contributions Teacher Retirement System Pension Plan Last Four Fiscal Years (Unaudited) 99 2018 2017 2016 2015 Statutorily required contributions 91,593$ 131,436$ 88,399$ 92,325$ Actual contributions in relation to statutorily required contributions (91,593) 131,436 88,399 92,325 Contribution deficiency (excess)-$ -$ -$ -$ Academy's covered payroll 5,289,916$ 5,391,515$ 5,094,571$ 4,784,694$ Contributions as a percentage of Academy's covered payroll 1.73%2.44%1.74%1.93% Note: GASB 68, Paragraph 81.2.b requires that the data in this schedule be presented as of the Academy's current fiscal year as opposed to the time period covered by the measurement date. Note: Only four years of data is presented in accordance with GASB #68, paragraph 138. "The information for all periods for the 10- year schedules that are required to be presented as required supplementary information may not be available initially. In the se cases, during the transition period, that information should be presented for as many years as are available. The schedules should not include information that is not measured in accordance with the requirements of this Statement." Town of Westlake Notes to Teachers Retirement System Pension Plan Required Supplementary Information For the Year Ended September 30, 2018 100 Actuarial Methods and Assumptions used to Determine Contribution Rates The following information was used in the actuarial valuation for determining the actuarially - determined contribution rate used for funding purposes. The methods and assumptions are as follows: Valuation date August 31, 2017 Actuarial cost method Ultimate entry age normal Amortization method Level percentage of payroll, Floating Remaining amortization period 32.2 years Asset valuation method Five year smoothed market Actuarial assumption Inflation 2.50% Salary increases 3.50% to 9.50% including inflation Investment rate of return 8.00% **Actuarial determined contribution rates are calculated as of August 31, of the preceding fis cal year. Members and employees are based upon statutorily fixed rates. Town of Westlake Exhibit B-7 Schedule of Changes in the Total OPEB Liability and Related Ratios Texas Municipal Retirement System OPEB Plan Last Ten Measurement Years (Unaudited) 101 2017 Total OPEB liability Service cost 6,318$ Interest 1,603 Change in benefit terms - Difference between expected and actual experience - Change in assumptions 4,872 Benefit payments 4,816 Net change in total OPEB liability 17,609 Total OPEB liability, beginning 39,253 Total OPEB liability, ending 56,862$ Covered payroll 3,325,369$ Total OPEB liability as a % of covered payroll 1.71% Note: Only one year of data is presented in accordance with GASB #75. Additional years’ information will be displayed as it becomes available. The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan; therefore, no plan fiduciary net position and related ratios are reported in the above schedule. Town of Westlake Exhibit B-8 Schedule of OPEB Contributions Texas Municipal Retirement System OPEB Plan Last Ten Fiscal Years (Unaudited) 102 2018 Actuarially determined contributions 6,380$ Contributions in relation to the actuarially determined contributions (6,380) Contribution deficiency (excess)-$ Covered payroll 3,595,707$ Contributions as a percentage of covered payroll 0.18% Note: GASB #75, paragraph 57 requires that the data in this schedule be presented as of the Town’s fiscal year as opposed to the time period covered by the measurement date. The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan; therefore, no plan fiduciary net position and related ratios are reported in the above schedule. Town of Westlake Notes to Texas Municipal Retirement System OPEB Required Supplementary Information For the Year Ended September 30, 2018 103 Valuation Date Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method Entry age normal Amortization method Level percentage of payroll, closed Remaining amortization period 17 years Asset valuation method 10 year smoothed market; 15% soft corridor Inflation 2.50% Salary increases 3.50% to 10.50% including inflation Investment rate of return 6.75% Retirement age Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2015 valuation pursuant to an experience study of the period 2010 - 2014. Mortality RP2000 Combined Mortality Table with Blue Collar Actuarially determined contribution rates are calculated as of December 31, and become effective in January 13 months Town of Westlake Exhibit B-9 Schedule of Academy’s Proportionate Share the Net OPEB Liability and Related Ratios Teacher Retirement System TRS Care Plan Last Ten Measurement Years (Unaudited) 104 2017 Academy's proportion of the net OPEB liability 0.0058830% Academy's proportionate share of net OPEB liability 2,558,314$ State's proportionate share of net OPEB liability associated with the Westlake Academy 4,406,333 Total 6,964,647$ Academy's covered payroll 5,391,515$ Academy's proportionate share of net OPEB liability as a percentage of its covered payroll 47.45% Plan fiduciary net position as a percentage of total OPEB liability 0.91% Note: Only one year of data is presented in accordance with GASB #75. "The information for all periods for the 10-year schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the transition period, that information should be presented for as many years as are available. The schedules should not include information that is not measured in accordance with the requirements of this Statement." Town of Westlake Exhibit B-10 Schedule of Academy’s OPEB Contributions Teacher Retirement System TRS Care Plan Last Ten Fiscal Years (Unaudited) 105 2018 Statutorily required contributions 46,204$ Actual contributions in relation to statutorily required contributions (46,204) Contribution deficiency (excess)-$ Academy's covered payroll 5,289,916$ Contributions as a percentage of Academy's covered payroll 0.87% Note: GASB 75 requires that the data in this schedule be presented as of the Academy's current fiscal year as opposed to the time period covered by the measurement date. Note: Only one year of data is presented in accordance with GASB #75. "The information for all periods for the 10-year schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the transition period, that information should be presented for as many years as are available. The schedules should not include information that is not measured in accordance with the requirements of this Statement.” Town of Westlake Notes to Teacher Retirement System TRS Care Plan Required Supplementary Information For the Year Ended September 30, 2018 106 There was a significant plan change adopted in fiscal year ending August 31, 2017. Effective January 1, 2018, only one health plan option will be offered and all retirees will be required to contribute monthly premiums for coverage. Assumption changes made for the August 31, 2017 valuation include a change to the assumption regarding the phase-out of the Medicare Part D subsidies and a change to the discount rate from 2.98% as of August 31, 2016 to 3.42% as of August 31, 2017. The change to the Medicare Part D subsidy phase-out assumption had the larger impact. 107 108 Combining and Individual Fund Statements and Schedules Town of Westlake Exhibit C-1 Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual – Debt Service Fund For the Year Ended September 30, 2018 109 Variance Favorable Original Amended Actual (Unfavorable) REVENUES Taxes Property 271,411$ 296,984$ 297,460$ 476$ Total revenues 271,411 296,984 297,460 476 EXPENDITURES Debt service Principal retirement 1,519,000 1,519,000 1,519,000 - Interest and other fiscal charges 1,169,160 1,171,293 1,173,794 (2,501) Total expenditures 2,688,160 2,690,293 2,692,794 (2,501) Deficiency of revenues under expenditures (2,416,749) (2,393,309) (2,395,334) (2,025) OTHER FINANCING SOURCES (USES) Transfers in 2,710,068 2,412,169 2,412,169 - Net other financing sources (uses)2,710,068 2,412,169 2,412,169 - NET CHANGE IN FUND BALANCE 293,319 18,860 16,835 (2,025) FUND BALANCE AT BEGINNING OF YEAR 11,963 11,963 11,963 - FUND BALANCE AT END OF YEAR 305,282$ 30,823$ 28,798$ (2,025)$ Debt Service Fund Budgeted Amounts Town of Westlake Nonmajor Governmental Funds 110 Visitors Association Fund To account for municipal hotel occupancy taxes collected and expenditures to promote tourism and the convention and hotel industry. Lone Star Public Facilities Corporation To account for investment activity relating to the Lone Star Public Facilities Corporation. Economic Development Fund To account for sales tax and hotel occup ancy tax collected to fund activity relating to Economic Development agreements. Public Arts Contribution Fund To account for contributions restricted for public arts. 4B Economic Development Corporation To account for sales tax collected to fund the activities of the 4B Economic Development Corporation. Westlake Academy Expansion Fund To account for proceeds from long-term financing and revenue and expenditures related to authorized construction related to expansion of Westlake Academy facilities. Town of Westlake Exhibit C-2 Combining Balance Sheet Non Major Governmental Funds For the Year Ended September 30, 2018 111 Visitors Association Lone Star Public Facilities Corporation Fund Economic Development Fund Public Arts Contribution 4B Economic Development Corporation Fund Westlake Academy Expansion Capital Projects Fund Total Nonmajor Governmental Funds ASSETS Cash and cash equivalents 705,350$ 14,141$ 21,400$ 30,000$ -$ 1,651,843$ 2,422,734$ Accounts receivable 79,909 - 319,814 - 487,121 - 886,844 Prepaid items 3,316 - - - - - 3,316 Total assets 788,575$ 14,141$ 341,214$ 30,000$ 487,121$ 1,651,843$ 3,312,894$ LIABILITIES AND FUND BALANCES Accounts payable 30,224$ -$ 341,214$ -$ -$ -$ 371,438$ Unearned revenue 3,260 - - - - - 3,260 Due to other funds - - - - 487,121 - 487,121 Total liabilities 33,484 - 341,214 - 487,121 - 861,819 FUND BALANCES Nonspendable: Prepaid items 3,316 - - - - - 3,316 Restricted for: Capital items - - - - - 1,651,843 1,651,843 Tourism 751,775 - - 30,000 - - 781,775 Future projects - 14,141 - - - - 14,141 Total fund balances 755,091 14,141 - 30,000 - 1,651,843 2,451,075 Total liabilities and Total liabilities and fund balances fund balances 788,575$ 14,141$ 341,214$ 30,000$ 487,121$ 1,651,843$ 3,312,894$ Special Revenue Funds Town of Westlake Exhibit C-3 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2018 112 Visitors Association Lone Star Public Facilities Corporation Fund Economic Development Fund Public Arts Contribution 4B Economic Development Corporation Fund Westlake Academy Expansion Capital Projects Fund Total Nonmajor Governmental Funds REVENUES Sales taxes -$ -$ 422,441$ -$ 1,500,901$ -$ 1,923,342$ Hotel occupancy taxes 801,756 - 47,411 - - - 849,167 Interest income 19,104 352 - - - 38,498 57,954 Contributions 1,945 - 200,000 30,000 - - 231,945 Miscellaneous 8,438 - - - - - 8,438 Total revenues 831,243 352 669,852 30,000 1,500,901 38,498 3,070,846 EXPENDITURES Current: Economic development - - 469,852 - - - 469,852 Visitor services 875,322 - - - - - 875,322 Total expenditures 875,322 - 469,852 - - - 1,345,174 Excess (deficiency) of revenues over (under) expenditures (44,079) 352 200,000 30,000 1,500,901 38,498 1,725,672 OTHER FINANCING SOURCES (USES) Transfers in - - - - - 200,000 200,000 Transfers out - - (200,000) - (1,500,901) - (1,700,901) Total other financing sources (uses)- - (200,000) - (1,500,901) 200,000 (1,500,901) Net change in fund balances (44,079) 352 - 30,000 - 238,498 224,771 Fund balances, October 1 799,170 13,789 - - - 1,413,345 2,226,304 Fund balances, September 30 755,091$ 14,141$ -$ 30,000$ -$ 1,651,843$ 2,451,075$ Special Revenue Funds Town Of Westlake Exhibit C-4 Schedule of Revenues, Expenditures And Changes in Fund Balances Budget and Actual – Visitors Association Fund For the Year Ended September 30, 2018 113 Variance Favorable Original Amended Actual (Unfavorable) REVENUES Taxes Hotel occupancy 812,360$ 816,702$ 801,756$ (14,946)$ Interest income 5,150 14,606 19,104 4,498 Contributions 3,000 3,000 1,945 (1,055) Miscellaneous 6,310 14,137 8,438 (5,699) Total revenues 826,820 848,445 831,243 (17,202) EXPENDITURES Visitor services 909,759 893,919 875,322 18,597 Total expenditures 909,759 893,919 875,322 18,597 Excess (deficiency) of revenues over (under) expenditures (82,939) (45,474) (44,079) 1,395 NET CHANGE IN FUND BALANCE (82,939) (45,474) (44,079) 1,395 FUND BALANCE AT BEGINNING OF YEAR 799,170 799,170 799,170 - FUND BALANCE AT END OF YEAR 716,231$ 753,696$ 755,091$ 1,395$ Visitors Association Fund Budgeted Amounts Town of Westlake Exhibit C-5 Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual – Lone Star Public Facilities Corporation Fund For the Year Ended September 30, 2018 114 Variance Favorable Original Amended Actual (Unfavorable) REVENUES: Interest income 80$ 275$ 352$ 77$ Total revenues 80 275 352 77 EXPENDITURES: Economic development - - - - Total expenditures - - - - NET CHANGE IN FUND BALANCE 80 275 352 77 FUND BALANCE AT BEGINNING OF YEAR 13,789 13,789 13,789 - FUND BALANCE AT END OF YEAR 13,869$ 14,064$ 14,141$ 77$ Lone Star Public Facilities Corporation Budgeted Amounts Town of Westlake Exhibit C-6 Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Economic Development Fund For the Year Ended September 30, 2018 115 Variance Favorable Original Amended Actual (Unfavorable) REVENUES Taxes Sales 202,000$ 202,000$ 422,441$ 220,441$ Hotel occupancy 32,640 36,940 47,411 10,471 Miscellaneous 750,000 340,000 200,000 (140,000) Total revenues 984,640 578,940 669,852 90,912 EXPENDITURES Economic development 234,640 238,940 469,852 (230,912) Total expenditures 234,640 238,940 469,852 (230,912) Excess of revenues over expenditures 750,000 340,000 200,000 (140,000) OTHER FINANCING SOURCES (USES) Transfers out (750,000) (340,000) (200,000) 140,000 Total other financing sources (uses)(750,000) (340,000) (200,000) 140,000 NET CHANGE IN FUND BALANCE - - - - FUND BALANCE AT BEGINNING OF YEAR - - - - FUND BALANCE AT END OF YEAR -$ -$ -$ -$ Economic Development Fund Budgeted Amounts Town of Westlake Exhibit C-7 Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – 4B Economic Development Corporation Fund For the Year Ended September 30, 2018 116 Variance Favorable Original Amended Actual (Unfavorable) REVENUES Taxes Sales 1,237,500$ 1,237,500$ 1,500,901$ 263,401$ Total revenues 1,237,500 1,237,500 1,500,901 263,401 EXPENDITURES Economic development - - - - Total expenditures - - - - Excess of revenues over expenditures 1,237,500 1,237,500 1,500,901 263,401 OTHER FINANCING USES Transfers out (1,237,500) (1,237,500) (1,500,901) (263,401) Total other financing uses (1,237,500) (1,237,500) (1,500,901) (263,401) NET CHANGE IN FUND BALANCE - - - - FUND BALANCE AT BEGINNING OF YEAR - - - - FUND BALANCE AT END OF YEAR -$ -$ -$ -$ 4B Economic Development Corporation Budgeted Amounts Town of Westlake Agency Funds 117 PID Agency Fund To account for bond proceeds, assessments, and related debt associated with bonds issued by the Town as an agent for the Solana public improvement district. Town of Westlake Exhibit C-8 PID Agency Fund Statement of Changes in Assets and Liabilities For the Year Ended September 30, 2018 118 Balance at Balance at Beginning End of Year Additions Deletions of Year ASSETS Restricted cash and cash equivalents 2,085,576$ 28,244$ -$ 2,113,820$ Total assets 2,085,576$ 28,244$ -$ 2,113,820$ LIABILITIES Liability to bond holders 2,085,576$ 28,244$ -$ 2,113,820$ Total liabilities 2,085,576$ 28,244$ -$ 2,113,820$ 119 120 Statistical Section Statistical Section Unaudited 121 This part of the Town of Westlake, Texas' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the Town's overall financial health. Page Financial Trends 122 - 127 These schedules contain trend information to help the reader understand how the Town's financial performance and well-being have changed over time. Revenue Capacity 128 - 132 These schedules contain information to help the reader assess the Town's most significant local revenue sources. Although sales taxes are the Town's most significant local revenue source, information about principal revenue payers is confidential under Texas statutes, and; therefore, not disclosed. Trend information about sales tax revenue is provided in Exhibit S-9. Debt Capacity 133 - 135 These schedules present information to help the reader assess the affordability of the Town's current levels of outstanding debt and the Town's ability to issue additional debt in the future. Demographic and Economic Information 136 - 138 These schedules offer demographic and economic indicators to help the reader understand the environment within which the Town's financial activities take place. Operating Information 139 - 140 These schedules contain service and infrastructure data to help the reader understand how the information in the Town's financial report relates to the services the Town provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from annual financial reports for the relevant year. Town of Westlake Exhibit S-1 Net Position by Component Last Ten Years Accrual Basis of Accounting – Unaudited 122 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Governmental activities: Net Investment in capital assets 13,244,690$ 13,633,485$ 12,658,921$ 14,866,299$ 21,177,426$ 32,048,991$ 29,633,298$ 38,299,337$ 46,499,873$ 47,629,452$ Restricted 1,761,067 1,564,868 7,137,362 4,726,376 4,243,239 2,284,947 17,827,177 7,489,048 2,034,916 1,077,646 Unrestricted 4,122,185 5,866,046 3,448,100 5,023,731 6,636,876 910,977)( 7,108,101 9,260,572 9,513,643 6,437,845 Total governmental activities net position 19,127,942$ 21,064,399$ 23,244,383$ 24,616,406$ 32,057,541$ 33,422,961$ 54,568,576$ 55,048,957$ 58,048,432$ 55,144,943$ Business-type activities: Net investment in capital assets 7,349,032$ 7,033,831$ 6,875,031$ 6,877,555$ 6,601,949$ 6,734,414$ 6,410,547$ 6,044,363$ 5,583,570$ 5,293,188$ Unrestricted 1,945,578)( 2,003,600)( 1,542,092)( 1,636,249)( 842,457)( 1,272,014)( 2,608,315)( 4,041,360)( 3,746,696)( 4,685,810)( Total business-type activities net position 5,403,454$ 5,030,231$ 5,332,939$ 5,241,306$ 5,759,492$ 5,462,400$ 3,802,232$ 2,003,003$ 1,836,874$ 607,378$ Primary government: Net investment in capital assets 20,593,722$ 20,667,316$ 19,533,952$ 21,743,854$ 27,779,375$ 38,783,405$ 36,043,845$ 44,343,700$ 52,083,443$ 52,922,640$ Restricted 1,761,067 1,564,868 7,137,362 4,726,376 4,243,239 2,284,947 17,827,177 7,489,048 2,034,916 1,077,646 Unrestricted 2,176,607 3,862,446 1,906,008 3,387,482 5,794,419 (2,182,991) 4,499,786 5,219,212 5,766,947 1,752,035 Total primary government net position 24,531,396$ 26,094,630$ 28,577,322$ 29,857,712$ 37,817,033$ 38,885,361$ 58,370,808$ 57,051,960$ 59,885,306$ 55,752,321$ Source:Annual financial reports Fiscal Year Town of Westlake Exhibit S-2 Changes in Net Position Last Ten Years – Concluded Accrual Basis of Accounting – Unaudited 123 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 EXPENSES Governmental activities: General government 2,203,882$ 2,272,127$ 2,478,826$ 2,518,490$ 2,606,785$ 2,784,587$ 3,145,716$ 4,491,557$ 5,716,302$ 4,776,131$ Public Safety 1,939,441 1,698,164 1,801,585 1,883,424 1,978,803 2,190,050 2,381,437 2,737,084 3,063,003 3,133,733 Cultural and Recreation 115,770 105,997 122,400 111,765 113,924 123,541 129,970 187,274 217,489 184,685 Public Works 1,028,934 594,705 470,054 216,901 267,973 955,794 1,081,996 1,102,636 1,634,549 1,820,908 Economic Development 207,044 309,653 680,823 546,039 626,423 147,680 171,757 141,779 163,578 469,852 Visitor Services 341,270 420,270 356,365 475,719 521,521 493,087 665,936 740,835 737,071 885,654 Education 3,722,705 4,138,875 4,884,985 6,193,560 5,803,611 7,147,411 8,598,261 9,516,287 8,566,295 6,568,453 Interest on long-term debt 1,068,935 1,026,026 1,127,913 897,573 1,031,328 998,951 1,022,201 990,413 1,401,199 1,184,818 Total governmental activities expenses 10,627,981 10,565,817 11,922,951 12,843,471 12,950,368 14,841,101 17,197,274 19,907,865 21,499,486 19,024,234 Business-type activities: Water and Sewer 2,694,407 2,567,675 2,794,235 3,098,466 3,356,466 3,690,137 4,861,529 5,519,116 4,893,075 7,049,946 Cemetery 473 27,822 5,604 6,282 5,328 7,121 7,297 7,831 8,021 9,754 Total business-type activities expenses 2,694,880 2,595,497 2,799,839 3,104,748 3,361,794 3,697,258 4,868,826 5,526,947 4,901,096 7,059,700 Total primary government program expenses 13,322,861$ 13,161,314$ 14,722,790$ 15,948,219$ 16,312,162$ 18,538,359$ 22,066,100$ 25,434,812$ 26,400,582$ 26,083,934$ PROGRAM REVENUES Governmental activities: Fees, fines, and charges for services: General Government 677,948$ 716,624$ 721,157$ 673,090$ 774,909$ 33,975$ 110,778$ 789,457$ 73,180$ 137,805$ Public Safety 107,634 80,665 140,600 142,402 182,154 848,772 887,919 932,017 783,681 782,833 Public Works 594,338 1,597,655 292,572 407,328 659,246 1,022,769 936,245 1,789,776 3,338,541 2,027,613 Education 98,314 102,406 99,638 195,059 182,220 222,270 531,090 283,077 275,759 247,721 Operating grants and contributions 1,522,935 853,151 728,242 5,269,841 4,907,472 6,592,642 7,615,653 7,863,168 8,047,113 7,044,597 Capital grants and contributions 2,059,624 83,250 425,900 - 5,897,456 80,472 19,983,078 269,185 3,485,255 424,948 Total governmental activities program revenues 5,060,793 3,433,751 2,408,109 6,687,720 12,603,457 8,800,900 30,064,763 11,926,680 16,003,529 10,665,517 Business-type activities: Charges for services: Water and Sewer 2,345,236 2,101,510 3,078,868 2,934,842 3,157,332 3,428,702 3,549,775 3,968,086 4,815,635 5,794,818 Cemetery - 5,550 13,300 4,500 5,510 7,749 13,620 11,115 9,964 29,440 Operating grants and contributions - 46,810 - 24,423 - - - - - - Capital grants and contributions - - - - - - - - 50,000 1,271 Total business-type activities program revenues 2,345,236 2,153,870 3,092,168 2,963,765 3,162,842 3,436,451 3,563,395 3,979,201 4,875,599 5,825,529 Total primary government program revenues 7,406,029$ 5,587,621$ 5,500,277$ 9,651,485$ 15,766,299$ 12,237,351$ 33,628,158$ 15,905,881$ 20,879,128$ 16,491,046$ Fiscal Year Town of Westlake Exhibit S-2 Changes in Net Position Last Ten Years – Concluded Accrual Basis of Accounting – Unaudited 124 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 NET (EXPENSE) REVENUES Governmental activities 5,567,188)$( 7,132,066)$( 9,514,842)$( 6,155,751)$( 346,911)$( 6,040,201)$( 12,867,489$ 7,981,185)$( 5,495,957)$( 8,358,717)$( Business-type activities 349,644)( 441,627)( 292,329 140,983)( 198,952)( 260,807)( 1,305,431)( 1,547,746)( 25,497)( 1,234,171)( Total primary government net expense 5,916,832)( 7,573,693)( 9,222,513)( 6,296,734)( 545,863)( 6,301,008)( 11,562,058 9,528,931)( 5,521,454)( 9,592,888)( GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities: Taxes Sales 3,664,409 3,790,533 4,609,626 3,657,274 4,375,397 4,725,845 4,925,428 4,609,523 4,650,744 6,003,605 Property 1,260,112 1,441,238 1,366,633 1,367,069 1,438,969 1,476,355 1,576,750 1,629,640 Hotel Occupancy 497,769 457,693 527,261 590,853 709,578 796,481 872,179 822,490 751,601 849,167 Mixed Beverage 17,869 17,902 19,721 38,286 39,727 51,602 59,184 61,476 68,432 62,347 Franchise 624,401 603,233 586,836 664,991 734,935 795,322 963,040 930,043 818,423 779,506 Unrestricted grants and contributions 2,960,590 3,484,141 3,744,757 - - - - - - - Investment earnings 61,224 38,383 46,248 33,353 24,218 26,713 28,904 55,600 182,095 356,076 Miscellaneous 568,782 676,638 691,345 1,112,858 1,023,149 246,633 198,199 241,501 278,071 215,076 Transfers 61,321 - 145,216 45,507 485,591)( 43,399 323,100 264,578 169,316 71,466 Extraordinary item - - 56,704 124,346)( - - - - - - Special item - - - 67,760 - - - - - - Gain on sale of capital assets - - 7,000 - - - - - - - Total governmental activities 8,456,365 9,068,523 11,694,826 7,527,774 7,788,046 8,053,064 8,809,003 8,461,566 8,495,432 9,966,883 Business-type activities: Investment earnings 7,858 8,334 9,929 10,077 6,552 7,114 7,083 13,095 28,684 79,961 Miscellaneous 77,266 60,070 145,666 84,780 224,995 1,271 1,271 - - - Transfers 61,321)( - 145,216)( 45,507)( 485,591 43,399)( 323,100)( 264,578)( 169,316)( 71,466)( Total business-type activities 23,803 68,404 10,379 49,350 717,138 35,014)( 314,746)( 251,483)( 140,632)( 8,495 Total primary government 8,480,168 9,136,927 11,705,205 7,577,124 8,505,184 8,018,050 8,494,257 8,210,083 8,354,800 9,975,378 CHANGE IN NET POSITION Governmental activities 2,889,177 1,936,457 2,179,984 1,372,023 7,441,135 2,012,863 21,676,492 480,381 2,999,475 1,608,166 Business-type activities 325,841)( 373,223)( 302,708 91,633)( 518,186 295,821)( 1,620,177)( 1,799,229)( 166,129)( 1,225,676)( Total primary government 2,563,336$ 1,563,234$ 2,482,692$ 1,280,390$ 7,959,321$ 1,717,042$ 20,056,315$ 1,318,848)$( 2,833,346$ 382,490$ Source: Annual financial reports Fiscal Year Town of Westlake Exhibit S-3 Fund Balances Governmental Funds Last Ten Years Modified Accrual Basis of Accounting – Unaudited 125 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 General fund Reserved 193,105$ 214,750$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved 2,532,207 3,578,235 - - - - - - - - Nonspendable: Prepaid items - - 62,020 6,856 6,906 8,821 13,334 12,794 18,705 19,253 Restricted for: Court security and technology - - 186,776 192,768 194,422 193,082 203,173 238,636 219,693 203,173 Committed for: Future projects - - 219,687 49,941 74,941 80,442 80,442 335,322 335,392 80,442 Assigned for: Future equipment - - 22,000 22,000 24,000 - - - - - Unassigned - - 3,524,911 4,992,240 6,751,362 7,671,173 7,383,601 9,092,721 10,363,702 10,493,380 Total general fund 2,725,312$ 3,792,985$ 4,015,394$ 5,263,805$ 7,051,631$ 7,953,518$ 7,680,550$ 9,679,473$ 10,937,492$ 10,796,248$ All other governmental funds Reserved Special revenue funds 1,256,954$ 1,112,941$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved, reported in: Special revenue funds 1,933,564 2,693,846 - - - - - - - - Nonspendable: Prepaid items - - 33,511 60,963 62,635 80,118 83,359 68,718 243,401 56,397 Restricted for: Tourism - - 1,109,365 1,052,546 1,025,891 1,107,520 1,081,009 1,003,636 791,308 781,775 Future projects - - 4,647,863 3,594,379 10,370,914 1,751,405 13,632 13,679 13,789 14,141 Debt service - - 7,505 22,657 1,482 1,081 20,916 30,468 11,963 28,798 Education - - 885,365 758,127 931,094 993,998 1,592,227 1,098,359 729,709 1,068,117 Economic development - - 267,577 178,384 - - - - - - Capital projects funds 323,009 237,177 - - - - 17,713,788 8,501,489 15,080,456 7,292,917 Unassigned - - - - - - - - - - Total all other governmental funds 3,513,527$ 4,043,964$ 6,951,186$ 5,667,056$ 12,392,016$ 3,934,122$ 20,504,931$ 10,716,349$ 16,870,626$ 9,242,145$ Note: further consideration, the 4B Economic Development Corporation and Lone Star Public Facility Corporation funds are now classified as blended component units. The Town implemented GASB Statement No. 54 in fiscal year 2011. Source: Annual financial reports Economic Development Funds were classified as special revenue funds through FY 2002 and considered discretely presented component units through FY 2007. Upon Fiscal Year Town of Westlake Exhibit S-4 Changes in Fund Balances Governmental Funds Last Ten Years – Continued Modified Accrual Basis of Accounting – Unaudited 126 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 REVENUES Taxes 4,804,448$ 4,869,361$ 7,000,690$ 6,393,472$ 7,226,180$ 7,722,606$ 8,252,748$ 7,902,983$ 7,867,015$ 9,321,321$ Licenses, fees and permits 860,697 1,746,954 530,646 598,394 944,735 1,175,075 1,200,790 2,715,236 3,521,686 2,314,933 Fines and penalties 523,515 647,170 605,705 622,338 695,167 730,441 734,152 796,014 673,716 633,318 State program revenues 3,163,129 3,687,706 3,945,658 4,369,635 4,696,540 5,269,641 6,173,418 6,543,782 6,603,358 7,217,383 Federal program revenues 56,134 199,436 337,508 152,351 81,958 80,103 87,797 98,564 140,152 114,797 Investment earnings 61,224 38,383 46,248 33,353 24,218 26,713 28,904 55,600 182,095 356,076 Contributions 1,264,262 533,400 - 732,535 5,916,014 82,446 18,785,953 283,684 728,887 494,131 Other revenues 673,400 779,044 980,816 1,323,237 1,274,826 1,665,003 2,471,191 1,542,835 2,863,801 1,735,201 Total revenues 11,406,809 12,501,454 13,447,271 14,225,315 20,859,638 16,752,028 37,734,953 19,938,698 22,580,710 22,187,160 EXPENDITURES General government 1,519,600 1,644,587 1,733,324 1,878,885 1,910,545 2,236,360 2,411,239 3,280,507 4,596,827 3,672,933 Public safety 1,890,469 1,634,936 1,842,751 2,224,469 1,967,584 2,146,587 2,490,551 2,453,857 2,684,244 2,992,727 Cultural and recreation 115,770 105,997 122,400 111,765 113,924 123,541 130,322 185,923 164,720 183,816 Public works 841,822 333,831 326,749 391,115 532,675 615,781 744,028 773,751 784,279 675,550 Economic development 229,907 401,879 706,391 243,939 296,565 147,685 171,757 141,779 163,578 469,852 Visitor services 341,270 420,270 356,365 475,719 521,521 493,082 670,157 725,971 717,055 875,322 Education 3,722,705 4,138,875 4,884,985 6,193,560 5,762,652 7,143,678 7,938,501 9,245,592 8,819,174 9,012,348 Capital Outlay 4,335,114 682,103 1,023,772 1,110,476 7,601,631 9,964,047 5,274,282 9,561,954 7,082,844 9,407,447 Capital Project Debt service Principal 593,937 563,703 555,000 668,000 2,955,000 1,004,677 1,130,762 1,150,490 1,124,697 1,555,677 Interest and other fiscal charges 990,641 977,163 1,083,377 952,027 830,425 1,116,489 977,412 947,411 1,105,376 1,182,679 Bond issuance cost - - 36,446 148,891 185,699 69,283 - - 368,278 - Total expenditures 14,581,235 10,903,344 12,671,560 14,398,846 22,678,221 25,061,210 21,939,011 28,467,235 27,611,072 30,028,351 EXCESS (DEFICIENCY) OF REVENUES OVER OVER (UNDER) EXPENDITURES (UNDER) EXPENDITURES 3,174,426)$( 1,598,110$ 775,711$ 173,531)$( 1,818,583)$( 8,309,182)$( 15,795,942$ 8,528,537)$( 5,030,362)$( 7,841,191)$( Fiscal Year Town of Westlake Exhibit S-4 Changes in Fund Balances Governmental Funds Last Ten Years – Continued Modified Accrual Basis of Accounting – Unaudited 127 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 OTHER FINANCING SOURCES (USES): Proceeds from sale of land -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sale of assets - - 7,000 - - - - - 1,200,000 - Issuance of debt 117,640 - 2,095,000 - 8,294,800 - - - - - Premium on CO issued - - - - 284,437 - - - - - Refunding bonds issued - - - 7,799,196 2,200,000 1,910,000 - - 5,795,000 - Premium on refunding bonds issued - - - - 37,723 84,598 - - 1,020,809 - Payments to bond escrow agent - - - 7,650,305)( - (1,925,315) - - 6,452,467)( - Issuance of capital lease - - - - - 239,009 16,740 474,300 - - Notes payable issued - - 50,000 - - 401,484 162,059 - - - Certificate of obligations issued - - - - - - - - 10,710,000 - Special item - - - 67,760 40,959 - - - - - Extraordinary item - - 56,704 124,346)( 40,959)( - - - - - Transfers in 2,435,486 1,804,577 7,082,163 2,121,099 2,104,929 3,094,211 4,617,896 2,485,227 3,621,066 3,949,085 Transfers out 2,374,165)( 1,804,577)( 6,936,947)( 2,075,592)( 2,590,520)( (3,050,812)(4,294,796)(2,220,649)(3,451,750)(3,877,619) Total other financing sources (uses)178,961 - 2,353,920 137,812 10,331,369 753,175 501,899 738,878 12,442,658 71,466 Prior period adjustment - - - - - - - - - - NET CHANGES IN FUND BALANCES 2,995,465)$( 1,598,110$ 3,129,631$ 35,719)$( 8,512,786$ 7,556,007)$( 16,297,841$ 7,789,659)$( 7,412,296$ 7,769,725)$( DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 15.4% 15.0% 14.1% 12.5% 25.3% 14.4% 12.8% 11.1% 12.4% 12.9% Note: Economic Development Funds were classified as special revenue funds through FY 2002 and considered discretely presented component units through FY 2007. Upon further consideration, the 4B Economic Development Corporation and Lone Star Public Facility Corporation funds are now classified as blended component units. Source:Annual Financial Reports Fiscal Year Town of Westlake Exhibit S-5 Assessed Value and Estimated Actual Value of Taxable Property Last Eight Fiscal Years Modified Accrual Basis of Accounting – Unaudited 128 Less:Total Taxable Total Fiscal Real Personal Tax-Exempt Assessed Direct Year Property Property Property Value Tax Rate 2011 951,070,355$ 70,569,170$ 143,856,142$ 877,783,383$ 0.16010 2012 1,016,474,604 85,329,823 156,315,552 945,488,875 0.15684 2013 1,099,249,031 122,792,343 335,814,215 886,227,159 0.15684 2014 1,091,142,760 151,927,427 346,730,543 896,339,644 0.15634 2015 1,123,354,430 139,936,507 342,248,275 921,042,662 0.15634 2016 1,175,230,336 107,537,466 336,770,136 945,997,666 0.15634 2017 1,468,274,115 132,422,540 437,293,366 1,163,403,289 0.13695 2018 1,517,833,356 133,680,163 442,433,216 1,209,080,303 0.13615 Note:No ad valorem taxes were assessed by the Town of Westlake prior to the fiscal year ended September 30, 2011. Source:Tarrant County Appraisal District Denton Central Appraisal District Appraised Value Town of Westlake Exhibit S-6 Principal Property Tax Payers Current and Seven Years Ago – Unaudited 129 Percentage Percentage Taxable of Total Town Taxable of Total Town Assessed Taxable Assessed Taxable Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value BRE Solana LLC 123,689,077$ 1 30.92% Maguire Thomas Partners, etal 116,839,380$ 1 13.31% FMR Texas, LLC/LTD Partnership 77,129,554 2 19.28% FMR Texas, LLC/LTD Partnership 148,569,643 2 16.93% Dallas MTA LP 49,822,886 3 12.46% Maguire Partners 39,117,985 3 4.46% DCLI, LLC 46,697,787 4 11.67% Lexington TNI Westlake LP 18,249,200 4 2.08% HMC Solana LLC 39,844,325 5 9.96% First American Leasing/Real Estate 17,636,457 5 2.01% Maguire Parthers-Solana Land LP 17,562,432 6 4.39% DCLI, LLC 13,234,691 6 1.51% Lexington TNI Westlake LP 17,012,143 7 4.25% Fidelity Investments 12,277,810 7 1.40% Marsh USA Inc 11,763,580 8 2.94% Levi Strauss & Co.8,215,271 8 0.94% Fidelity Investments 9,482,577 9 2.37% Westlake Terra, LLC 7,400,002 9 0.84% Prince Whipple Trust 6,979,984 10 1.76% EMC Corp 6,418,484 10 0.73% Total 399,984,345$ 100.00% Total 387,958,923$ 44.21% CY Taxable Value 1,163,403,289 877,783,383 Source: Tarrant County Appraisal District Note: (1) Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an ad valorem tax. (2) Total Taxable Assessed Value including real and personal property for tax year 2010 (fiscal year 2011) is $877,783,383. (3) Total Taxable Assessed Value including real and personal property for tax year 2017 (fiscal year 2018) is $1,209,080,303. 20112018 Town of Westlake Exhibit S-7 Property Tax Levies and Collections Last Eight Fiscal Years – Unaudited 130 Taxes Levied Adjusted Collections Fiscal for the Adjustments Taxes Levied Percent in Subsequent Percentage Year Fiscal Year to Levy for Fiscal Year Amount of Levy Years Amount of Levy 2011 1,409,956$ 47,560$ 1,362,396$ 1,356,050$ 99.53%4,136$ 1,360,186$ 99.84% 2012 1,486,968 47,220 1,439,748 1,437,908 99.87%3,359 1,437,908 99.87% 2013 1,398,777 45,297 1,353,480 1,352,097 99.90%3,358 1,352,097 99.90% 2014 1,405,819 44,761 1,361,058 1,350,639 99.23%10,172 1,360,811 99.98% 2015 1,450,674 43,948 1,406,726 1,405,148 99.89%1,005 1,406,153 99.96% 2016 1,482,989 40,244 1,442,745 1,441,536 99.92%- 1,441,536 99.92% 2017 1,573,803 33,281 1,540,522 1,536,921 99.77%25,133 1,562,054 101.40% 2018 1,661,110 30,810 1,630,300 1,624,655 99.65%(8,127) 1,616,528 99.16% Note: Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an ad valorem tax. Source: Tarrant County Appraisal District Denton Central Appraisal District of the Levy to Date Collected within the Fiscal Year Total Collections Town of Westlake Exhibit S-8 Direct and Overlapping Property Tax Rates (Per $100 of Assessed Value) Last Eight Fiscal Years – Unaudited 131 Operating/ Tarrant Tarrant Trophy Total Fiscal General Debt Service Total (A)Carroll Northwest Keller Denton Tarrant County County Club Direct and Year Fund Fund Direct ISD ISD ISD County County College Dist Hospital Dist.MUD #1 Overlapping 2011 0.15620 0.00390 0.16010 1.41500 1.37500 1.53060 0.27736 0.26400 0.13764 0.22790 0.19500 5.58260 2012 0.13835 0.01849 0.15684 1.41500 1.37500 1.54000 0.28287 0.26400 0.14897 0.22790 0.17500 5.58557 2013 0.14197 0.01487 0.15684 1.40000 1.37500 1.54000 0.28287 0.26400 0.14897 0.22790 0.13339 5.52896 2014 0.13710 0.01924 0.15634 1.40000 1.45250 1.54000 0.27220 0.26400 0.14950 0.22790 0.13339 5.59583 2015 0.13710 0.01924 0.15634 1.40000 1.45250 1.54000 0.27220 0.26400 0.14950 0.22790 0.13339 5.59583 2016 0.13947 0.01687 0.15634 1.40000 1.45250 1.54000 0.27220 0.26400 0.14950 0.22790 0.13339 5.59583 2017 0.12882 0.00813 0.13695 1.39000 1.45250 1.52000 0.24841 0.25400 0.14473 0.22790 0.12722 5.50171 2018 0.11133 0.02482 0.13615 1.38500 1.49000 1.52000 0.23781 0.24400 0.14006 0.22443 0.12021 5.49766 Notes:Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an advalorem tax. Overlapping rates are those of local and county governments that apply to property owners within the Town of Westlake. Not all overlapping rates apply to all Town's property owners (e.g., the rates for the counties and school districts apply only to the proportion of the Town's property owners whose property is located within the geographic boundaries of the county and school district) Source:Tarrant County Appraisal District Denton Central Appraisal District School Districts Counties City Direct Rates Overlapping Rates Town of Westlake Exhibit S-9 Taxable Sales by Industry Type Last Ten Fiscal Years – Unaudited 132 NAICS Industry Type 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 11 Agriculture, Forestry, Fishing and Hunting 210$ $ - 60$ 38$ 163$ 731$ 775$ 2,083$ 1,685$ 4,303$ 21 Mining 20 400 4,260 3,050 335 15 714 655 128 5 22 Utilities 186,773 178,693 180,032 171,131 176,622 204,280 191,031 138,331 147,000 180,564 23 Construction 1,043,752 68,306 132,780 139,000 365,049 239,888 216,546 230,067 340,077 1,294,092 31-33 Manufacturing 430,515 386,492 402,062 526,755 295,660 375,905 234,651 209,128 86,798 113,487 42 Wholesale Trade 138,456 105,557 145,631 134,466 59,571 421,371 515,602 356,946 339,854 278,054 44-45 Retail 648,597 1,097,007 707,553 1,106,427 1,132,811 962,244 1,332,659 415,356 458,833 428,355 48-49 Transportation and Warehousing 791 556 316 1,156 3,662 1,962 3,550 1,107 1,133 567 51 Information 377,828 423,834 508,609 367,298 378,221 623,828 567,685 551,172 387,714 817,086 52 Financial and Insurance 68,936 87,188 73,455 27,857 75,529 505,585 295,622 754,386 509,201 709,787 53 Real Estate and Rental and Leasing 154,315 327,207 210,158 215,754 457,693 493,570 708,747 940,971 999,118 675,273 54 Professional, Scientific, and Technical Services 192,008 202,263 231,526 221,331 536,971 242,069 193,145 287,066 261,704 309,704 56 Admin and Support and Waste Mgmt & Rem Srv 22,319 39,539 65,045 39,027 110,686 103,340 50,264 125,033 85,430 93,967 61 Education Services 2,980 619,228 1,675,351 356,689 373,117 153,279 201,761 230,775 220,078 555,159 62 Health Care and Social Assistance - - 170 106 251 11,018 2,887 228 398 999 71 Arts, Entertainment and Recreation 174,485 158,996 206,050 204,456 184,687 191,343 189,027 201,391 241,107 216,403 72 Accommodation and Food Services 140,344 140,996 175,938 93,123 204,044 221,061 246,755 230,615 233,769 228,003 81 Other Services (except Public Administration)1,756 4,462 4,632 9,805 13,156 17,412 8,965 3,167 2,963 2,772 92 Public Administration - 11 1 135 295 27,243 - - 1 1,391 3,584,085$ 3,840,735$ 4,723,629$ 3,617,604$ 4,368,523$ 4,796,144$ 4,960,386$ 4,678,477$ 4,316,991$ 5,909,966$ Town direct sales tax rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Note: Source:Texas State Comptroller reports Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the Town's sales tax revenue Fiscal Year Town of Westlake Exhibit S-10 Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years – Unaudited 133 Percentage General Certificates of Actual Fiscal Obligation of Taxable Per Year Bonds Obligation Tax Notes Total Sales Capita 2009 9,735,000$ 10,975,000$ -$ 20,710,000$ 11.30% 25,791 2010 9,630,000 10,555,000 - 20,185,000 10.65% 23,831 2011 8,962,656 12,210,000 - 21,172,656 9.19% 21,343 2012 16,770,000 4,877,000 - 21,647,000 11.84% 20,369 2013 16,590,000 13,622,000 - 30,212,000 13.81% 27,251 2014 18,260,000 11,044,000 - 29,304,000 12.40% 24,748 2015 17,480,000 11,046,131 - 28,526,131 11.58% 23,772 2016 17,091,659 10,739,306 - 27,830,965 12.08% 22,627 2017 15,267,000 18,460,700 1,530,000 35,257,700 15.16% 26,914 2018 14,455,000 18,883,000 1,328,000 34,666,000 11.55% 25,066 Notes:Details regarding the Town's outstanding debt can be found in the notes to the financial statements. There was no debt issued until fiscal year 2002. See Table 13 for personal income and population data. General Bonded Debt Outstanding 0 5 10 15 20 25 30 35 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Millions General Obligation Bonds Certificates of Obligation Town of Westlake Exhibit S-11 Ratios of Outstanding Debt by Type Last Ten Fiscal Years – Unaudited 134 General Certificates Other Certificates Total Percentage Fiscal Obligation of Capital Contractual of Primary of Personal Per Year Bonds Obligation Leases Loans Obligations Obligation Government Income Capita 2009 9,735,000$ 10,975,000$ -$ 46,559$ -$ 5,734,191$ -$ 26,490,750$ 19%23,887 2010 9,630,000 10,555,000 - - - 5,658,888 - 25,843,888 18%22,473 2011 8,962,656 12,210,000 - - 50,000 5,580,380 - 26,803,036 17%22,638 2012 16,770,000 4,877,000 - - 34,075 5,498,668 - 27,179,743 19%25,576 2013 16,590,000 13,622,000 - - 18,150 5,412,149 - 35,642,299 21%32,150 2014 18,260,000 10,029,800 - 237,378 437,253 5,320,824 1,014,200 35,299,455 22%29,812 2015 17,480,000 9,759,250 - 154,347 357,041 5,226,294 1,286,881 34,263,813 20%24,775 2016 17,091,659 9,736,953 - 563,045 275,101 5,126,958 971,300 33,796,069 20%28,308 2017 15,267,000 18,460,700 1,530,000 162,004 238,404 5,156,839 949,300 41,764,247 22%31,881 2018 14,455,000 17,955,700 1,328,000 - 201,737 4,913,865 927,300 39,781,602 23%28,765 Note: See Table 13 for personal income and population data. Details regarding the Town's outstanding debt can be found in the notes to the financial statements. No debt was issued until fiscal year 2000. Governmental Activities Business-Type Activities Tax Notes Town of Westlake Exhibit S-12 Direct and Overlapping Governmental Activities Debt As of September 30, 2018 –Unaudited 135 Amount of Debt Outstanding As of Percent (1)Amount Carroll ISD 254,924,999$ 9/30/2018 5.74%14,632,695$ Denton County 612,630,000 9/30/2018 0.01%61,263 Keller ISD 680,508,707 9/30/2018 4.07%27,696,704 Northwest ISD 870,670,379 9/30/2018 1.15%10,012,709 Tarrant County 294,500,000 9/30/2018 0.72%2,120,400 Tarrant County Hospital District 19,300,000 9/30/2018 0.72%138,960 Trophy Club MUD#1 8,725,000 9/30/2017 18.64%1,626,340 Total Overlapping Debt 56,289,072 Town of Westlake Outstanding Debt 34,666,000 Total Direct & Overlapping Debt 90,955,072$ Source: Texas Municipal Report prepared by employees of the Municipal Advisory Council of Texas ("MAC") Note: (1) were estimated by determining the portion of the entity's taxable assessed value that is within the Town's boundaries and The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the entity's taxable assessed value that is within the Town's boundaries and dividing it by the entities' total taxable assessed value. Overlapping Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Town of Westlake. This process recognized that, when considering the Town's ability to issue and repay long-term debt, the entire debt burden borne by the resident and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Taxing Body Town of Westlake Exhibit S-13 Demographic and Economic Statistics Last Ten Fiscal Years – Unaudited 136 Calendar Estimated Personal Personal Median School Unemployment Year Population Income Income Age Enrollment Rate 2009 803 150,586$ 120,920,285$ 37.6 417 8.1% 2010 992 121,431 120,459,552 39.8 491 8.1% 2011 1063 110,487 117,447,681 41.5 530 7.9% 2012 1,109 112,697 138,423,531 41.8 630 6.2% 2013 1,150 114,951 147,292,890 41.4 658 6.0% 2014 1,184 117,250 160,462,095 41.2 697 5.0% 2015 1,205 119,595 144,111,592 41.8 812 4.0% 2016 1,230 121,987 173,419,076 41.7 825 4.1% 2017 1,310 124,426 162,998,462 41.5 830 3.2% 2018 1,383 126,915 175,523,215 41.2 856 3.4% Sources: Municipal Advisory Council of Texas - Population United States Census - Median Age Tarrant County Unemployment Rate information taken from Texas Workforce Commission. USA.com - Per Capita Income source North Central Texas Council of Governments 803 992 1063 1109 1150 1184 1205 1230 1310 1383 0 500 1000 1500 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Estimated Population Town of Westlake Exhibit S-14 Principal Employers Current and Ten Years Ago – Unaudited 137 2008 Percentage Percentage of Estimated of Estimated Total Town Total Town Employer Employees Employment Employer Employees Employment Fidelity Investments 2,568 33.86%Fidelity Investments 2,691 38.21% Schwab 850 11.21%Core Logic 1,800 25.56% Travelocity 580 7.65%TD Auto Finance 1,000 14.20% Wells Fargo 573 7.55%Wells Fargo 400 5.68% Deloitte 501 6.61%McKesson 215 3.05% Sabre JLL Facilities 345 4.55%Sonitrol/World Factory 156 2.22% Verizon Wireless 319 4.21%Marriott Solana Hotel 150 2.13% Goosehead Insurance 273 3.60%Walco/Animal Health 145 2.06% Sound Physicians 194 2.56%Vaquero Country Club 132 1.87% Solera 190 2.50%Levi Strauss 92 1.31% Levi Strauss 143 1.89%Westlake Academy 77 1.09% Vaquero Country Club 130 1.71%Pfizer, Inc.50 0.71% Town of Westlake/Westlake Academy 142 1.87%Premier Academy 30 0.43% All Other Businesses 777 10.24%Solara Health 104 1.48% Total 7,585 100% Total 7,042 100% Source: Cushman &Wakefield tenant records and contact with employers of the Town 2018 Town of Westlake Exhibit S-15 Full-Time Equivalent Town Government Employees by Function/Program Last Ten Fiscal Years – Unaudited 138 Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 General government Town manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Town Manager 0.00 0.00 0.00 0.00 0.75 0.90 1.00 0.90 1.00 1.00 Assistant to town managerAssistant to Town Manager 1.00 1.00 1.00 0.75 0.00 0.00 0.00 0.50 0.50 0.75 Administrative 0.75 0.50 0.75 0.75 1.00 0.50 0.50 0.00 1.50 1.00 BuildingBuilding official 1.33 1.33 1.33 1.33 1.50 1.66 1.66 3.17 4.00 4.00 Town secretary 1.00 1.00 1.00 1.00 1.00 1.00 1.25 1.25 1.50 1.50 Facilities/Grounds maintenance 1.08 1.08 1.08 0.83 1.00 1.09 1.34 1.58 0.50 1.75 Municipal 4.25 4.50 4.50 3.75 4.75 5.10 5.00 4.60 4.00 3.50 Finance 3.00 3.00 3.00 3.00 3.00 4.00 4.00 4.25 4.00 4.00 Payroll/Human Resources 1.33 1.33 1.33 1.33 2.00 2.00 2.00 2.00 2.00 2.00 Information Technology 0.00 0.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 2.00 Public safety (EMS)9.00 9.00 9.00 9.00 10.00 13.25 14.25 14.25 11.00 15.50 Culture and recreation 0.75 0.75 0.75 0.50 0.75 0.84 0.84 0.84 0.50 0.50 Public works 1.50 1.50 1.50 2.00 3.00 2.66 2.66 2.67 3.00 4.00 Marketing and public affairs 0.00 0.00 0.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 Education 48.10 55.62 59.44 67.48 76.18 91.18 93.65 95.31 95.05 98.00 Total 74.09 81.61 85.68 93.72 106.93 128.18 132.15 135.32 132.55 142.50 Source: Prior Town budgets and Academy personnel records Note: A full time municipal employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Fulltime equivalent employment is calculated by dividing total labor hours by 2,080. A full time education employee is scheduled to work 1,122 hours per year. Fiscal Year Town of Westlake Exhibit S-16 Operating Indicators by Function/Program Last Ten Fiscal Years – Unaudited 139 Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 General government Permits issued 61 44 70 85 132 144 159 218 217 259 Permit values 21,051,297$ 190,388,737$ 21,173,592$ 29,481,047$ 50,544,048$ 59,358,904$ 80,011,354$ 87,307,794$ 262,690,940$ 311,013,915$ Police (Contract with Keller PD) Motor vehicle stops 9,247 9,763 9,829 12,221 9,993 9,579 10,432 11,109 10,718 8,339 Traffic accident investigations 266 273 348 343 322 341 398 461 386 333 Part I crimes 23 19 30 39 9 15 20 13 22 31 DWI arrests 24 32 80 50 69 55 62 66 70 50 Fire/EMS Fire runs 118 172 191 181 238 211 211 257 248 320 Ambulance runs 184 187 264 266 286 240 253 288 269 202 Inspections 15 71 71 54 96 286 261 246 290 188 Public Works - General Street resurfacing (LF)- - 3,800 30,000 - - - - 6,000 - Potholes repaired 10 5 36 6 2 6 20 20 10 5 Public Works - Utility Number of water accounts 437 478 500 568 614 651 713 752 810 835 Water main breaks 5 6 4 4 3 1 1 - - 1 Avg daily consumption MG (water)1.020 0.889 1.200 1.100 1.090 1.045 1.021 1.122 1.233 1.400 Peak daily consumption MG (water)2.740 2.460 2.540 2.600 2.480 2.690 2.770 1.586 1.646 1.564 System capacity - MG (water)1.685 1.685 1.685 1.685 1.685 2.685 2.685 2.685 2.685 2.685 Water purchased (in gallons x 000)372,933 324,843 443,222 407,305 401,457 381,482 372,838 409,817 450,208 510,931 Water sold (in gallons x 1000)313,495 290,000 385,320 376,496 357,297 347,148 360,000 350,000 419,520 470,168 Wastewater Number of new sewer connections 251 254 245 292 325 350 384 403 454 503 Avg daily sewage treatment 0.101 0.063 0.163 0.136 0.151 0.208 0.166 0.132 0.176 1.171 (thousands of gallons) Source: Various Town departments Notes: N/A represents information that is unavailable. Fiscal Year Town of Westlake Exhibit S-17 Capital Asset Statistics by Function/Program Last Ten Fiscal Years – Unaudited 140 Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fire Stations 1 1 1 1 1 1 1 1 1 1 Public Works - Utility Pump station 1 1 1 1 1 1 1 1 1 1 Lift station 2 3 3 3 3 3 3 3 3 3 Telecommunications Duct Bank (LF)49,103 51,803 57,783 57,783 57,783 59,936 66,084 66,084 82,231 82,231 Telecommunications Duct Bank Manholes 113 122 122 122 122 122 140 140 140 140 Water Water mains (LF)70,000 79,000 130,000 137,891 137,891 142,694 148,117 148,117 181,393 181,393 Fire hydrants 130 154 188 191 191 201 214 214 256 256 Storage capacity MG 1,685 1,685 1,685 1,685 1,685 2,685 2,685 2,685 2,685 2,685 Wastewater Sanitary sewers (LF)39,300 49,900 94,000 94,000 94,000 98,964 104,373 104,373 123,168 123,168 Manholes 284 304 304 304 304 326 355 355 444 444 Public Works - Utility Streets (miles)10.80 10.80 10.80 10.25 10.25 10.25 10.50 10.42 10.42 10.42 Traffic signals (school zone flashers)2 2 2 2 2 2 2 2.0 2.0 2.0 Parks and recreation Open Space (acres)25 25 25 25 25 27 27 27.0 27.0 27.0 Playgrounds 2 2 2 2 2 2 2.0 2.0 2.0 2.0 Softball/soccer field 1 1 1 1 1 1 1.0 1.0 1.0 1.0 Football field 1 1 1 1 1 1 1.0 1.0 1.0 1.0 Public trails (miles)3.5 3.5 5.0 5.0 5.0 7.0 8.5 8.5 8.5 15.0 Source: Various Town departments Note: No capital asset indicators are available for the general government. Note: The amount of roads decreased in FY 2011-2012 due to a portion of road being dedicated to TxDot Fiscal Year Page 1 of 2 Westlake Town Council TYPE OF ACTION Regular Meeting - Consent Westlake Town Council Meeting Monday, March 25, 2019 TOPIC: Consideration of a Resolution authorizing the Town Manager to enter into a purchase agreement with Rush Bus Center to purchase a 71-passenger activity bus and authorize the Town Manager to make funding changes not to exceed $25,000 on this project. STAFF CONTACT: Troy J. Meyer, Facilities Director Strategic Alignment Vision, Value, Mission Perspective Strategic Theme & Results Outcome Objective Mission: Westlake is a unique community blending preservation of our natural environment and viewscapes, while serving our residents and businesess with superior municipal and academic services that are accessible, efficient, cost- effective, & transparent. People, Facilities, & Technology Exemplary Service & Governance - We set the standard by delivering unparalleled municipal and educational services at the lowest cost. Improve Technology, Facilities & Equipment Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: March 26, 2019 Completion Date: September 30, 2019 Funding Amount: $112,680 Status - Funded Source - Contributions/Grants EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) In March of 2019, at the Gallery Night Event, the Westlake Academy Foundation raised $104,500 for a 71-passenger bus package. The Westlake Academy Foundation Board approved an additional grant for $8,200 to include the installation of a concrete parking pad irrigation and striping. The total cost of the bus package is $112,680. The new activity bus will be used by K- Page 2 of 2 12 students for both athletic events and field trips. The total cost of the concrete pad, sod, irrigation and striping is $9,200 the cost of the bus is $103,480 which includes the following options: • 12 rows of 39” bench seats with 3-point lap/shoulder belts (3 per seat) • Underbody storage compartments on each side • Two interior cameras • Front & rear A/C • Dual USB chargers at each double seat • Exterior graphics and paint • Fuel type - Gas Town Staff will amend the 2018-2019 Municipal and Academy budgets to reflect the purchase of the bus and installation of the concrete pad to reflect the contributions from the Westlake Academy foundation and Westlake Academy. The estimated annual cost is $16,500, which includes insurance, fuel, drivers and maintenance. A portion of the cost to maintain the bus will be covered with field trip and athletic fees. RECOMMENDATION Staff recommends the approval of this agreement for $103,480 with Rush Bus Center and to authorize the Town Manager to make funding changes not to exceed $25,000 on this project. ATTACHMENTS Resolution Exhibit “A” Agreement Resolution 19-15 Page 1 of 2 TOWN OF WESTLAKE RESOLUTION NO. 19-15 A RESOLUTION AUTHORIZING THE TOWN MANAGER TO ENTER INTO AN AGREEMENT WITH RUSH BUS CENTER TO PURCHASE A 71-PASSENGER BUS, AUTHORIZING THE TOWN MANAGER TO MAKE FUNDING CHANGES NOT TO EXCEED $25,000 ON THIS PROJECT, AND AMEND THE 2018-2019 MUNICIPAL AND ACADEMY BUDGETS TO REFLECT THE PURCHASE OF THE BUS AND INSTALLATION OF THE CONCRETE PAD WITH THE CONTRIBUTIONS FROM THE WESTLAKE ACADEMY FOUNDATION AND WESTLAKE ACADEMY. WHEREAS, the Town of Westlake owns and operates the Westlake Academy and provides facilities for Town and Academy use; and, WHEREAS, the purchase of a 71-passenger activity bus will accommodate grades K-12 for both athletic and field trip events; and, WHEREAS, the Westlake Academy Foundation raised $104,500 for a bus package and the WAF approved a grant for $8,200 to cover the cost of the concrete pad, striping, sod and irrigation; and, WHEREAS, the Town Council finds that the passage of this resolution is in the best interest of the citizens of Westlake. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That, all matters stated in the Recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. SECTION 2: . The Westlake Municipal budget will be amended to reflect the purchase of the bus and installation of the concrete pad as well as the contributions from the Westlake Academy Foundation and Westlake Academy. SECTION 3: That the Town of Westlake Town Council hereby approves the proposal of Rush Bus Center and authorizes the Town Manager to make funding changes not to exceed $25,000.00 on this project. Attached as Exhibit “A”. SECTION 4: If any portion of this Resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. Resolution 19-15 Page 2 of 2 SECTION 5: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 25th DAY OF MARCH 2019. ATTEST: _____________________________ Laura L. Wheat, Mayor _______________________________ APPROVED AS TO FORM: Kelly Edwards, Town Secretary _______________________________ L. Stanton Lowry, Town Attorney Customer Proposal Letter Make ____________ Model _______________ Year _______________ Stock Number ____________________________ Section 547.701(e) of the Texas Transportation Code, as amended, is effective September 1, 2017. 2018 model or newer School Buses & Multi-Function School Activity Buses operated after the effective date may require Three-Point Seat Belts in order to comply with the statute. Customers MUST provide Rush Bus Centers with resolution documentation & written board approval to request OPT OUT provision if ordering buses without three-point seat belts. Quoted pricing includes the cost of three-point seat belts for all passengers. Sales Representative signature printed namePurchaser signature printed name title dateAccepted by Sales Manager or General Manager signature printed name Quote good until Note: The above Customer Proposal is a quotation only. Sale terms subject to approval of Sales Manager of Dealer. VEHICLE 7RWDOQuantity Truck Price per Unit F.E.T. (Factory & Dealer Paid) Net Sales Price Optional Extended Warranty(ies) State Sales Tax Administration Fee Vehicle Inventory Tax Additional Taxes Tire Recycling Program Battery Disposal Fee Out of State Vehicle Fee Total Sales Price (Including Rebate(s)) Trade Allowance (see DISCLAIMER Below) DISCLAIMER: Any order based on this Proposal subject to Customer executing Dealer’s standard form Retail Purchase Order incorporating above terms.Any documentary fees, state tax, title, registration and license fees subject to adjustment and change. Actual F.E.T. to be paid by Dealer, subject to adjustment. Any F.E.T. variance will be responsibility of Dealer. Manufacturer has reserved the right to change the price to Dealer of any vehicle not currently in Dealer’s stock, without notice to Dealer. If Quoted Vehicle(s) not currently in Dealer’s stock, Dealer reserves right to change Quotation Total to reflect any price increases from Manufacturer. This Proposal is based upon Dealer’s current and expected inventory, which is subject to change. Dealer not obligated to retain any specific vehicles in stock, nor maintain any specific inventory level. Dealer shall not be obligated to fulfill Proposal in event quoted vehicle(s) not in stock or available within requested delivery schedule at time Proposal accepted. Dealer shall not be liable for any delay in providing or inability to provide Quoted Vehicle(s), where such inability or delay is due, in whole or in part, to any cause beyond the reasonable control of Dealer or is without the gross negligence or intended misconduct of Dealer. Above listed Trade Value based upon current appraisal of Trade Vehicle(s). Dealer may adjust Trade Value of Trade Vehicle(s) to reflect changes in condition and/or mileage of Trade Vehicle(s) between date of current appraisal and acceptance of this Proposal by Customer. RTC Q-300-7/12 Rebate(s) 4000 Irving Boulevard Dallas, TX 75247 3/15/2019 Printed on 1/17/2019 at 2:52 PM. Rush Bus Center - Dallas TX TOWN OF WESTLAKE 1301 SOLAND BLVD BLD 4 STE 4202 WESTLAKE, TX 76262 (817) 490-5757 TROY MEYER, thank you for the opportunity to earn your business. We look forward to working with you on your business needs. Please accept the following proposal. Private organizations must provide written verification specific to “Motor Vehicle Sales Tax Exemption” or they will be subject to TTL fees required by the State of Texas. TTL Fees are NOT included in the price below. Delivery terms are 120-180 days ARO. Full payment due prior to or upon delivery. Blue Bird BBCV3310S 2020 To Be Determined 1 $103,480.00 $103,480.00 $0.00 $0.00 $103,480.00 $103,480.00 Documentary Fee $103,480.00 $103,480.00 $0.00 Cheryl Bell Quote #173305 Resolution 19-15 77 Passenger MFSAB WESTLAKE ACADEMY – GAS 173305 This quoted bus meets or exceeds all FMVSS for Multi-Function School Activity Bus Chassis Specifications • Ford/Roush 6.8L Gas V10, 320 HP, 460 lb-ft • 2013 Emission compliant • Road Speed governor set at 65 MPH • Left side exhaust through rear bumper • 273” Wheelbase • Ford 6R140 automatic transmission. 6 speed • Dual air brakes w/ABS, auto slack adjusters & Bendix air dryer • 100 Gal. Fuel tank located between the frame rails • 280 Amp Leece Neville brushless alternator • (3) Group 31 batteries; 2100 CCA located in skirt battery box with roll out tray • Cruise Control, Tachometer, High idle switch, Hourmeter, Voltmeter, Digital clock • Tilt/Telescopic power steering • 11R x 22.5 Cooper, LRG, Tires • Black steel 10-stud disc wheels 8.25 x 22.5 • Stainless steel wheel covers • Steel reinforced front & rear bumpers; black • 12K Front axle / 23,000# Rear axle; 5.29 axle ratio • Front and rear oil lubed bearings • Hendrickson variable tapered front springs • Hendrickson Multi-leaf spring suspension rear • Daytime running lamps • Intermittent windshield wipers w/one gal. reservoir • Rear tow hooks • Electronic Stability Control Body Specifications • 77 Passenger capacity seated for 72 passengers • 2020 Blue Bird Vision BBCV 3310 School Bus • Meets Colorado Rack & Load requirements • 77” Headroom • Continuous one-piece roof bows, no welds • All steel body construction. • (4) Rub rails painted black • Ext. electrical access under driver window; locking • Spring loaded fuel filler door • Four piece flat, shaded & tinted windshield • Light tint laminated driver’s window with latch • Three step “bolt-in” stepwell w/pebble tread rubber • Left side hand rail at entry • 90,000 BTU Front heater/defroster • Split sash aluminum frame windows • School bus seats w/fire-block upholstery • (2) Roof hatches / (4) Push-out windows w/buzzers • First aid kit, body fluid clean-up kit, 5lb. Fire extinguisher, Triangle warning devices, 112 db backup alarm, and belt cutter • Suspension driver seat; vinyl w 3 pt. seatbelt • Interior mirror w/ adjustable visor • Rosco rearview mirrors & Crossview mirrors • Heat cured polyurethane white exterior paint • White interior paint • Reflective material surrounding all emergency exits • Complete fiberglass insulation • Acoustical ceiling panels in first two sections • Plywood sub floor • Rubber floor covering; ribbed aisle w/ trim • Outward opening entrance door • Rear emergency door with buzzer • Passenger dome lamps each side above windows • Driver dome on separate switch • LED clearance/marker/ID, backup, rear turn signals, & brakes. • Skirt mounted boarding light. Stepwell lamp. • Pre-trip ext. light test • Driver’s console to left of driver • LH Armrest with driver storage on console • Accessory power socket w/cap • Mud flaps on front and rear Warranty: 5 year/100,000 mile warranty on body shell, paint adhesion, seat frames & engine. 5 year / Unlimited Transmission warranty Resolution 19-15 Included Optional Items 1. Glove Box located in right side dash area with locking door latch. 2. Cup Holder located in dash to right of driver. 3. Double door underbody storage compartments on each side between wheels. 56.80 Cu. Ft. total. Includes hold open device and locking latches. 4. Overhead aluminum tubular parcel racks. 5. 16 Ga. Steel side panels with extended skirts 25 3/4 6. Driver fan with 2 speed rocker style switch. Located upper center of windshield. 7. LED Side amber body turn signals 8. AM/FM/USB/MP3 stereo with eight interior speakers 9. Rosco remote controlled exterior rearview mirrors 10. 6 x 30 Interior mirror with built in monitor and backup camera 11. Air operated entrance door 12. Keyed vandal lock on entrance door and slide bolt lock w/starter interrupt on rear emergency door. 13. Locking fuel filler door 14. Dark tint side, rear, & rear door glass. Light tint laminated driver’s window & entrance door glass 15. Black window frames for passengers and driver 16. 13 Rows of Blue Bird Next Gen 3pt. lap/shoulder belt convertible seats w/built-in headrest 17. Tilt up seat cushions for easy cleaning throughout passenger compartment 18. Burgundy fire-block upholstery on barriers and seats 19. Maximum knee spacing for all seating positions 20. Air operated driver’s seat with burgundy upholstery, RH armrest and lumbar support 21. ⅝” Treated plywood sub floor 22. Black painted window posts 23. White exterior paint 24. Dual 50,000 BTU rear heaters with booster pump and constant torque hose clamps Dealer Added Items 1. REI DVR system with two interior cameras. Customer to specify views needed 2. ACC 130,000 BTU AC w/front & rear in-wall evaporators plus in dash. Dual M21 compressors. 3. Dual USB chargers per double seat 4. Exterior graphics and paint per customer request 5. DOT inspection upon delivery 6. Delivery to customer Quote #173305 Resolution 19-15 House Bill 89 Verification Form Prohibition on Contracts with Companies Boycotting Israel The 85th Texas Legislature approved new legislation, effective Sept. 1, 2017, which amends Texas Local Government Code Section 1. Subtitle F, Title 10, Government Code by adding Chapter 2270 which states that a governmental entity may not enter into a contract with a company for goods or services unless the contract contains a written verification from the company that it: 1)does not boycott Israel; and 2)will not boycott Israel during the term of the contract Pursuant to Section 2270.001, Texas Government Code: 1.“Boycott Israel” means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli -controlled territory, but does not include an action made for ordinary business purposes; and 2.“Company” means a for-profit sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, or any limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company or affiliate of those entities or business associations that exist to make a profit. I, (authorized official) _________________________________, do hereby depose and verify the truthfulness and accuracy of the contents of the statements submitted on this certification under the provisions of Subtitle F, Title 10, Government Code Chapter 2270 and that the company named below: 1)does not boycott Israel currently; and 2)will not boycott Israel during the term of the contract; and 3)is not currently listed on the State of Texas Comptroller’s Companies that Boycott Israel List located at https://comptroller.texas.gov/purchasing/publications/divestment.php ______________________________________________________________________________ Company Name ______________________________________________________________________________ Signature of Authorized Official ______________________________________________________________________________ Title of Authorized Official Date Cheryl Bell Rush Truck Centers of Texas, LP dba Rush Bus Centers Area Sales Representative 3-20-2019 Cheryl Bell TEXAS ETHICS COMMISSION GOVERNMENT CODE TITLE 10. GENERAL GOVERNMENT SUBTITLE F. STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT CHAPTER 2252. CONTRACTS WITH GOVERNMENTAL ENTITY SUBCHAPTER Z. MISCELLANEOUS PROVISIONS Sec. 2252.908. DISCLOSURE OF INTERESTED PARTIES. (a) In this section: (1) "Business entity" means any entity recognized by law through which business is conducted, including a sole proprietorship, partnership, or corporation. (2) "Governmental entity" means a municipality, county, public school district, or special-purpose district or authority. (3) "Interested party" means a person who has a controlling interest in a business entity with whom a governmental entity or state agency contracts or who actively participates in facilitating the contract or negotiating the terms of the contract, including a broker, intermediary, adviser, or attorney for the business entity. (4) "State agency" means a board, commission, office, department, or other agency in the executive, judicial, or legislative branch of state government. The term includes an institution of higher education as defined by Section 61.003, Education Code. (b) This section applies only to a contract of a governmental entity or state agency that: (1) requires an action or vote by the governing body of the entity or agency before the contract may be signed; or (2) has a value of at least $1 million. (c) Notwithstanding Subsection (b), this section does not apply to: (1) a sponsored research contract of an institution of higher education; (2) an interagency contract of a state agency or an institution of higher education; (3) a contract related to health and human services if: (A) the value of the contract cannot be determined at the time the contract is executed; and (B) any qualified vendor is eligible for the contract; (4) a contract with a publicly traded business entity, including a wholly owned subsidiary of the business entity; (5) a contract with an electric utility, as that term is defined by Section 31.002, Utilities Code; or (6) a contract with a gas utility, as that term is defined by Section 121.001, Utilities Code. (d) A governmental entity or state agency may not enter into a contract described by Subsection (b) with a business entity unless the business entity, in accordance with this section and rules adopted under this section, submits a disclosure of interested parties to the governmental entity or state agency at the time the business entity submits the signed contract to the governmental entity or state agency. (e) The disclosure of interested parties must be submitted on a form prescribed by the Texas Ethics Commission that includes: (1) a list of each interested party for the contract of which the contracting business entity is aware; and (2) a written, unsworn declaration subscribed by the authorized agent of the contracting business entity as true under penalty of perjury that is in substantially the following form: "My name is ________________________________, my date of birth is _________________, and my address is _____________, ____________, _________, ____________, (Street) (City) (State) (Zip Code) __________________. I declare under penalty of (Country) perjury that the foregoing is true and correct. Executed in _______ County, State of ________, on the ________ day of ________, ________. (Month) (Year) ____________________ Declarant". (f) Not later than the 30th day after the date the governmental entity or state agency receives a disclosure of interested parties required under this section, the governmental entity or state agency shall submit a copy of the disclosure to the Texas Ethics Commission. (g) The Texas Ethics Commission shall adopt rules necessary to implement this section, prescribe the disclosure of interested parties form, and post a copy of the form on the commission's Internet website. Added by Acts 2015, 84th Leg., R.S., Ch. 1024 (H.B. 1295), Sec. 3, eff. September 1, 2015. Amended by: Acts 2017, 85th Leg., R.S., Ch. 526 (S.B. 255), Sec. 5, eff. September 1, 2017. Page 1 of 16 Westlake Town Council TYPE OF ACTION Regular Meeting - Action Item Westlake Town Council Meeting Monday, March 25, 2019 TOPIC: Continue the public hearing and consideration of an Ordinance approving a rezoning request from R5-Country Residential to Planned Development District Number 7 (PD7) for approximately 37.798 acres located east of Pearson Lane and South of Aspen Lane, to include primarily single family residential uses, including a request for approval of a concept plan and development plan, and a specific use permit for private streets. STAFF CONTACT: Ron Ruthven, Director of Planning and Development Strategic Alignment Vision, Value, Mission Perspective Strategic Theme & Results Outcome Objective Planned / Responsible Development Citizen, Student & Stakeholder High Quality Planning, Design & Development - We are a desirable well planned, high-quality community that is distinguished by exemplary design standards. Preserve Desirability & Quality of Life Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: February 11, 2019 Completion Date: March 25, 2019 Funding Amount: N/A Status - Not Funded Source - N/A EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) NOTE: Given the revisions to the development proposal during the Planning and Zoning Commission consideration process, the analysis contained in this memo has been updated to reflect the latest proposal in relation to the final recommendations of the Planning and Zoning Commission. Page 2 of 16 On March 11, 2019, the Planning and Zoning Commission voted (4-0) to approve this item subject to the following conditions: 1. The total residential units in the development shall not exceed 38 units and the gross residential density in the development shall not exceed 1.0 dwelling unit per acre; 2. All staff recommendations contained in the 3/11/2019 Planning and Zoning Commission agenda memo for this case shall be met. Therefore, the staff recommendations and the proposed PD7 ordinance associated with the request is drafted containing the Commission recommendations above, which conflict with the latest revision received from the applicant on March 18, 2019. The March 18, 2019 revision shows a 54 lot configuration. Paul Pastore, Waterside Land Company, LLC, on behalf of property owner, J. Timothy Brittan, is requesting to develop a maximum 54 lot single family residential subdivision on approximately 37.8 acres located at the southeast corner of Aspen Lane and Pearson Lane. The proposed development would include single-family detached units. A previous request by the applicant, similar to this request, was withdrawn at the May 21, 2018 Town Council meeting, due to technical issues related to property ownership. The ownership issues have since been resolved and the applicant is submitting a new request. EXISTING CONDITIONS The subject property is currently zoned R5-Country Residential and is used as a large single family residential estate with accessory agricultural uses. The subject property contains a mix of unplatted and platted tracts. PROPOSED LAND USE The proposed development would include 54 (Commission recommendation – 38 units) detached single family units. Other proposed uses include a community wellness center, guardhouse, public park and trail head to be operated by the homeowner’s association. RESIDENTIAL DESIGN Residential Density. The current R5 zoning on the subject property requires a minimum lot size of five acres yielding a maximum residential density of 0.2 dwelling units per acre (dua). The proposed development would include a total proposed maximum density of 1.43 dua. The Commission recommendation would include a total proposed maximum density of 1.0 dua Lot Delivery System. The development will include a “unique lot delivery system” whereby a single entity controls the developer and the master homebuilder. STAFF RECOMMENDATION: The developer of this project shall also serve as the master builder of all units constructed therein, with final compliance with the terms and conditions of such commitment laid out in the Town approved Development Agreement or unless otherwise requested by the developer and approved by the Town Manager or designee for special conditions. Page 3 of 16 The following is a breakdown of the proposed housing types in the development: 1. All single-family homes (except the Golf Villas bordering Vaquero Golf Course) a. Housing Type: Single Family Detached b. Minimum Lot Size: 1,000 square feet c. Minimum Lot Width at Building Line: 70 feet d. Front Setback: 10 feet; or 5 feet (2) where courtyards/motor courts are provided e. Side Setbacks: 0 feet; the principal structure may be located on the property line; the total length of the building to be located on the property line shall not exceed 20% of the average lot depth. staff recommendation f. Rear Setback: 25 feet, or 0 feet abutting water features and/or open space. When backing to the southern border and Oakmont Hills, there shall be a 40-foot minimum setback for the main house structure. g. Minimum Unit Size: 3,000 square feet h. Maximum Height: 35 feet from finished floor to the mid-point of the span of the highest roof pitch. 2. Golf Course Villas a. Housing Type: Single Family Detached b. Minimum Lot Size: 1,000 square feet c. Minimum Lot Width at Building Line: 70 feet d. Front Setback: 10 feet; or 5 feet (2) for side facing garages, courtyards and accessory structures not utilized for storage. e. Side Setbacks: 0 feet; the principal structure may be located on the property line; the total length of the building to be located on the property line shall not exceed 20% of the average lot depth. staff recommendation f. Rear Setback: 20 feet, or 0 feet abutting water features and/or open f. Rear Setback: Per diagram above and no less than 30 feet g. Minimum Unit Size: 3,000 square feet h. Maximum Height: Per diagram below: Page 4 of 16 Other special setback provisions include: • Lots adjacent to Aspen Lane shall have a 25-foot minimum setback from Aspen Lane. • All homes shall be setback a minimum of 120 feet from Pearson Lane. • All homes shall be setback a minimum of 25 feet from the southern boundary line of the development. With regard to garages, all homes shall have a minimum of four parking spaces for off-street automobile parking in any configuration but must have a minimum of two enclosed parking spaces and two additional off-street parking spaces. Garage doors will be made of sectional wood or be wood clad. Garage doors are proposed to be recessed a minimum of (8) eight inches (nominal) from the plane of the adjacent wall. Front facing garage doors are allowed if located further back on the lot than the side-facing garage portion and are in a motor court setting. Regarding roofs, permitted roof materials are proposed to include: 1. High quality clay or concrete tile (with a thickness similar to clay). (Acceptable styles and colors to be detailed in the Spencer Ranch Design Guidelines document) 2. Metal: Traditional standing seam with standing folded and soldered seams. Allowed for porches and architectural features only. (Acceptable styles and colors to be detailed in the Spencer Ranch Design Guidelines document) Page 5 of 16 3. Flat or low-pitched roofing that is 2:12 pitch or less may be of any code approved material. The applicant proposes that exterior walls be composed of 80 percent masonry as required for all Residential Districts by the Code of Ordinances and have horizontal and vertical articulation or architectural delineation on all elevations. The applicant also states that the Westlake Building Quality Manual will be incorporated into design standards for the development. STAFF RECOMMENDATIONS RELATIVE TO DESIGN: • Homeowner’s Association – The development shall be governed by a Homeowner’s Association (HOA) that will be responsible for common area maintenance, guard house and amenity center maintenance, private street maintenance, front yard maintenance and enforcing the HOA Design Guidelines for the community. The Home Owners Association shall appoint an Architectural Review Committee that must have at least one (1) Texas Licensed Architect with experience in applying Design Guidelines and advising an Architectural Review Committee on matters of design. • Exterior Walls: Exterior walls shall meet the requirements of the Town’s Building Quality Manual as adopted by Resolution 18-02. • Design Guidelines: See final staff recommendation below. • Elevation Samples: All homes constructed in this development shall be generally consistent with the elevation samples provided by the applicant such that the primary articulation elements and general layout of the home on the lot are generally consistent with the elevations. Provided all other requirements are met, significant deviations from these elevations may be approved provided that both the HOA and the Town Manager or designee are in agreement. • All plans submitted for permit within Spenser Ranch shall be prepared by a Texas Licensed Architect and contain sufficient details required to explain the full exterior construction to a competent contractor. PARKS / OPEN SPACE / LANDSCAPING Open Space. The applicant proposes that approximately 17 acres, or 45%, of the development will be dedicated to open space as follows: • “Approximately 13 acres of Private Open Space • Approximately 3.0 acres of Public Open Space • Approximately 1.0 acre of Tree Preserve” Private open space would include a community wellness center and a guardhouse. Page 6 of 16 A Community Wellness Center building is proposed and to be constructed on the property in the general location as shown on the revised Concept/Development Plan. The new location is located off of Aspen Lane at the northwest portion of the development. The final design and size have not yet been determined. The architecture will be similar to the gate house and the housing in the development. The developer proposed to complete this facility within a timeframe not to exceed the closing of the 27th home in Spencer Ranch. The community wellness center will contain the following minimum amenities: • Exercise facility • Multi-use space • His & Hers restroom and changing facilities • Minimal facilities for caterers • Outdoor gathering space for events • Parking for a minimum of 10 cars The applicant also states that “in association with the Community Wellness Center, Spencer Ranch is developing plans to construct a multipurpose indoor/outdoor facility that’s fully climate controlled and will be of a size to house at a minimum one “pickle ball” court. The multipurpose facility would have the flexibility to offer: Basketball, Wall tennis, Volleyball, Batting cage, Golf driving net, Field hockey, Soccer, Fencing, Gymnastics, Pilates/Yoga, Cross training fitness, Indoor track, Table top games, Banquet functions, Concerts and Conference facility.” Given the lack of detail regarding the size and design of the “multi-purpose indoor/outdoor facility” and potential impacts on the development and the larger area, staff recommends (summarized below) that this component of the “Community Wellness Center” be submitted as a future amendment to the PD ordinance with more detail on building design, size, lighting, etc. Parkland Dedication. The Code of Ordinances requires that one acre of parkland be dedicated for every 30 residential dwelling units in a new residential development. Based on the proposal of 54 residential units, the applicant is required to provide a minimum of 1.8 acres of parkland. Based on the Commission recommendation of 38 residential units, the applicant is required to provide a minimum of 1.3 acres of parkland. The Concept/Development Plan shows approximately 3.0 acres of proposed public parkland. The applicant proposes to dedicate the parkland to the Town, which would then be privately maintained by the HOA but will be publicly accessible outside of the perimeter development fence. According to the applicant, public park amenities will include: • Public trail system with pet sanitation and watering stations • Internal trail system connecting to the public trail system • Areas designated for Public Art Competition • Trailhead parking • Historical landmark preservation of the Buck E. King historical marker Water features. The applicant states that the proposed development will be a “water themed community” with water features, as shown on the concept/development plan, playing a key aesthetic role in the development. Page 7 of 16 Landscaping. The applicant states that: “Spencer Ranch will approach the total landscaping effort as one cohesive and comprehensive unit for the entire tract of land. The landscaping design will incorporate the vision of the entire tract using all aspects of the terrain, thus creating the “natural mosaic” the town prefers. Although installed in individual increments as each home is completed, the Spencer Ranch vision is to create an overlay of a full and comprehensive landscape plan that embodies the entire parcel of land and raises the standards in Westlake and is not prejudice to any one dwelling.” The applicant proposes to provide a master landscape plan subsequent to approval of the change in zoning and will include: • The establishment of a “old growth” tree preserve at the Fisher property boundary. Establishing open space and meadows using various types, sizes and species of trees and plant material. • Weaving natural features such as bald cypress trees in and around the water system providing a more natural bank and greater complexity at the edge definitions. • A genuine effort will be made to save and protect old-growth trees. • Water features, trails, fencing, retaining walls and other architectural structures will be developed to the highest degree of thought thus impacting the community in a positive way. • Care will be given to how the landscaping and streets interact giving careful attention to the development of “social space” as it relates to this aspect. STAFF RECOMMENDATIONS RELATIVE TO PARKS, OPEN SPACE AND LANDSCAPING: • Landscaping: Not later than 90 days after the approval of the preliminary site evaluation, the developer shall submit a master landscape plan for the development prepared by a State of Texas registered landscape architect. Said plan shall be reviewed for final approval by the Town Manager or designee. The plan may be forwarded to the Town Council for final approval at the discretion of the Town Manager. The final approved master landscape plan shall be included with the development agreement. At a minimum the plan shall include the following: 1. The Plan shall substantially comply with the Concept/Development Plan 2. The landscape plan shall reflect developer’s efforts to comply with the “landscape Integrity” objectives of the Town’s Comprehensive Plan and employ predominantly those plant materials (within the planting areas that define the cluster zones and lake edges) that are consistent with restoration of the natural mosaic. 3. Specifics on execution of the landscaping goals provided by the applicant including details of planting locations and types, quantities and schedule; 4. A detailed tree survey as required by the Code of Ordinances; 5. Any replanting requirements as part of required tree mitigation; 6. Specific planting and maintenance responsibilities of the developer versus the homebuilder and the homeowner’s association; 7. Details for guest parking in the development where applicable Page 8 of 16 • Tree Preservation – All protected trees shall require mitigation upon damage or removal as required by the Code of Ordinances. Mitigation may be provided through tree plantings as shown on the landscape plan during development and/or home building phases. Where possible, old growth trees and tree clusters should be preserved as identified in the master landscape plan. • Open Space: A minimum of 17 acres (45%) of the development shall be reserved as open space. All open space, including public and private, shall be substantially consistent with concept/development plan and shall preserve the existing Stock-pond Rural Landscape. Open space shall be distributed as follows: a. Private Open Space: 13 acres minimum b. Public Open Space (Parkland): 3.0 acres minimum • Private open space amenities shall, at a minimum, include the following: 1. Gate house – The gatehouse shall be constructed and completed by the developer not later than final acceptance of public improvements and prior to the release of residential building permits. The gatehouse design shall be consistent with Exhibit B-1 in the proposed ordinance. 2. Community Wellness Center- The center shall be constructed on the property in the location shown on the concept/development plan. The developer shall build and complete this facility no later than the issuance of the building permit for the 27th home permitted in the development. No additional builder permits shall be issued in the development until the center is deemed complete by the Town Manager or designee. The community center shall be generally consistent with the design exhibits provided by the developer for the homes in the development. The multipurpose indoor/outdoor facility as described in Exhibit B-1 shall not be constructed until additional detail is provided including building elevations, a lighting plan and all information required for commercial site plans in Chapter 102 of the Code of Ordinances. Said additional detail shall require approval as an amendment to the PD7 ordinance. • Parkland Dedication – Parkland dedication as proposed by the developer is hereby approved subject to the following conditions: 1. Parkland dedication shall be consistent with the exhibits provided. 2. The gatehouse, including the property upon which the gatehouse is located, shall be owned and maintained by the HOA. 3. Maintenance responsibilities for the parkland shall be the responsibility of the developer/HOA. 4. Details of amenities, and final locations of parking and trails shall be approved as part of development agreement between the applicant/developer and the Town. Page 9 of 16 • Water Features – Water features are a key component of the development, making this a “Water Themed” development as called for in the Town’s Comprehensive Plan. Water features shall be constructed by the developer as part of the required public improvements. Said features shall be located and designed as shown on concept/development plan and shall be maintained by the homeowner’s association. SIDEWALKS AND TRAILS No sidewalks are proposed. However, the applicant proposes to construct an internal trail system that “will facilitate pedestrian mobility within the community”. The revised concept/development plan does not show the internal trail system. The public trail will be constructed along Pearson Lane within the public open space area from Aspen Lane south to the Town border. STAFF RECOMMENDATIONS: • An internal trail/sidewalk system shall be constructed and shall connect to the public trail system at access-controlled locations. The final location and details of the internal trail system shall be included with the required landscape plan. The public trail shall comply with all Town requirements and shall be generally located as shown in concept/development plan and shall be constructed by the developer as part of the required public improvements. Trail amenities shall at a minimum include the amenities proposed by the developer. FENCING The applicant states that Spencer Ranch will have a completely secure perimeter with contiguous fencing of various approved types employed in a manner consistent with the Concept/Development Plan. Perimeter Fencing. Perimeter fencing will contain a mix of, existing fencing from neighboring properties including wood fencing and black vinyl coated chain link fencing, decorative iron with masonry columns and masonry wall sections per the attached fence samples. Along the perimeter adjacent to the Vaquero Golf course (east), the applicant proposes to utilize the existing fence currently in place, which shall be cleaned and repainted black. Internal lot-to-lot fencing. For lot-to-lot fencing, the applicant proposes the following: Fences on individual lot property lines are generally discouraged except as approved by the ARB for: • Dog runs • Swimming pool safety • Privacy for internal courtyards • Screening from neighbors Fence Materials: Fences are proposed be any of the following: • “Masonry Page 10 of 16 • Wrought Iron, such fences may be made of solid stock or thick wall tubular steel (sufficient thickness to not burn through when welded but no thinner than 3/32 inch) with any finials or other decorative detailing being made of solid stock and welded to the fence construction or wrought as part of the iron making process. • Where wood fences are used, they should be board on board, supported by vertical tubular steel supports with at least 3 2x4 stringers supporting a wood fence design with a decorative wood cap detail. The finished face of the wood fence should face to the outside of the lot, if only 1 face is finished. Wood face member of the fence should be a minimum of ¾ inches thick. All wood fences should be stained with a color approved by the ARB. • Welded tubular agriculture fences not located in a development where such a fence presents a contrast other fences of the development and hosts and agricultural use or the fence is part of an agricultural theme is allowed. Proposed Gate Materials: • Wood with frame members measuring a minimum of 1.5 inches thick and infill planks measuring a minimum of 1.5 inches thick. • Wrought Iron with the frame measuring a minimum of 1.5 inches square with pickets of at least ¾ in. square with welded connections. Such fences may be made of solid stock or thick wall tubular steel (sufficient thickness to not burn through when welded but no thinner than 3/32 inch) with any finials or other decorative detailing being made of solid stock and welded to the fence construction or wrought as part of the iron making process. “ STAFF RECOMMENDATIONS: • The perimeter of the development facing Pearson and Aspen Lane shall contain decorative iron fencing located in a manner substantially consistent with the Concept Development Plan and which preserves the sense of “open ground plane” as described in the Town’s Comprehensive Plan by the use of decorative iron fencing with masonry columns. Masonry wall sections shall be permitted as depicted in wall exhibits for the purpose of providing aesthetic accents, privacy, and/or shield undesirable vehicle light transmission as determined in the master landscape plan. • Individual property fences shall be minimalized in order to preserve the open ground plane and permitted for privacy needs, screening, and/or dog runs in ways that are consistent with HOA guidelines which must prevent isolation of the “lot” from the general ground plane. Individual lot fencing materials shall be established in the required architectural design guidelines. TRAFFIC, STREETS AND ACCESS All internal streets are proposed to be private. A Specific Use Permit for Private Streets, as required for private streets by the Code of Ordinances, is included as part of the rezoning Page 11 of 16 application for the development. Streets are proposed to have “enhanced finishes” although no details have been provided on the specific street enhancements. Two primary access points, and one emergency only access point, are proposed for the development: an entrance only access point from Pearson Lane, one entrance from Aspen Lane, and one emergency only access from Aspen Lane. Street access to Pearson Lane will require formal approval from the city of Keller. The city of Keller has provided preliminary approval for the street connection. Traffic Impact. The applicant provided a traffic impact analysis (TIA) for the development. According to the TIA methodology, the maximum 54 residential units proposed is projected to generate a total traffic impact of 534 vehicle trips per day. Based on the Commission recommendation of 38 units, a total traffic impact of 375 vehicle trips per day is projected The TIA notes that all intersections affected by the development will continue to operate at a level of service (LOS) C or better, which complies with the recommendations of the Comprehensive Plan. The following are the final recommendations and conclusions of the TIA, which has been updated to account for the reduced number of units: • The proposed development is expected to generate 534 (or 375) trips on a daily basis. • Capacity analysis indicates that all the study area intersection approaches operate and will continue to operate at LOS C or better. • Projected traffic volume under the Build-out Year (2020) Total traffic conditions at the site driveways do not warrant right turn or left turn deceleration lanes along person lane at the proposed site Driveway 3 or at Aspen lane as well along Aspen Lane at the proposed site Driveway 1. • At the time of site visit and under existing conditions, adequate sight distance is predicted to be provided for all the site driveways. • All the site driveways are predicted to meet Town’s minimum spacing criteria. • Improve illumination at the intersection to increase nighttime visibility at the intersection of Pearson Lane and Aspen Lane. • East leg of the intersection of Aspen Lane at Pearson Lane should be relocated as far as possible to the north to eliminate the existing offset with Cielo Court. Staff recommends that the recommended improvements to the illumination at the intersection of Pearson Lane and Aspen Lane be addressed as a condition on the approval of the development. STAFF RECOMMENDATIONS: • Streets – An SUP is hereby granted for all community streets within PD7, which shall be private and constructed to Town standards. Streets shall include enhanced finishes and shall generally match the streetscapes shown in the attached Exhibit. Street lighting shall be located at all corners and intersections. Lights shall be low pedestal type fixtures that comply with Town standards and Comprehensive Plan recommendations as well as follow the Town’s low intensity lighting standards. Page 12 of 16 • Access – Street access to the development from Pearson Lane shall require written final approval from the city of Keller. A street light shall be installed by the developer at the intersection of Aspen Lane and Pearson Lane. • Prior to the final acceptance of public improvements, the developer shall install intersection illumination improvements to the intersection of Aspen Lane and Pearson Lane such that the nighttime visibility of the intersection is improved. Said illumination improvements shall be detailed as part of the development agreement and shall require the final approval of the Town Manager or designee. • As part of the required development agreement, roadway improvements correcting the existing offset at the intersection of Aspen Lane and Cielo Court in the City of Keller may be approved pending a mutual agreement between the developer, Town and/or other adjacent property owners regarding the feasibility of conducting said improvements. PUBLIC UTILITIES, DRAINAGE AND GRADING The applicant proposes to provide water to the development from the Town’s water system at two separate locations to create a looped-system. Regarding sewer, the applicant states that “the project engineer has met with town staff and performed the necessary calculations to determine that the public water and sewer systems can accommodate the additional loads anticipated to be generated by the proposed development and there are multiple access points available for connection to the public systems.” Duct bank will be constructed by the developer to the Town’s specifications. Stormwater runoff will utilize “a combination of natural grassed swales, detention ponds, and reflecting pools, connecting to the existing public street storm-water system.” Regarding grading, the applicant states that they are “committed to limitations on grading by allowing only that grading as is necessary to construct streets, infrastructure, development amenities, and individual homes. Waterside will prohibit the creation of lot pads and the use of side lot line retaining walls to create lot pads. Waterside will respect some exceptions where patios, drives, and pools are built that can be viewed as extensions of the home.” STAFF RECOMMENDATIONS: • Public Utilities – Water and sewer service shall be provided by the Town of Westlake to this development. The developer shall, at their cost, construct all necessary water and sewer system improvements per Town standards and shall secure any necessary easements. • Duct Bank - A Duct Bank system shall be installed by the Developer throughout the subdivision as required by Town ordinances. The Duct Bank shall be located within a utility easement, the final details of which shall be determined by the Town Manager or designee. The homebuilder shall tie into the Duct Bank prior to the Final Inspection for the home. Page 13 of 16 • Stormwater – Stormwater facilities shall be installed by the developer and employ facilities that are recommended by the comprehensive plan. Final location and design of said facilities shall require the final approval of the Town Manager or designee. • Lot Grading – Grading and disturbance of land by the developer shall be restricted to areas necessary to construct streets, public infrastructure, development amenities, and approved water features. The pre-grading of individual residential lots by the developer for the purpose of creating a residential pad is hereby prohibited. PUBLIC ART The applicant states that “Waterside has a strong desire to support the arts in Westlake and will commit the following to a Public Art Competition: • “A competition site of a size to be determined, to place the art at Spencer Ranch in the Public Open Space • A donation by Waterside of an amount to be determined will be outlined in the Economic Development Agreement.” STAFF RECOMMENDATION: As part of the development agreement, the developer agrees to submit a public art plan that shall be approved by the Town Manager or designee and generally conforms to the public art provisions contained in the development description as proposed by the developer. A Town of Westlake entry marker or monument shall may be included in this plan. COMPREHENSIVE PLAN ANALYSIS The 2015 Forging Westlake Comprehensive Plan - Land Use Plan designates the subject property as PC-B: Pastoral Community/View Corridor Zone. It is important to note that these zones are more character based than use based with the focus of the development’s impact on, and symmetry with, the natural fabric of the Town. The character statement for this zone is quoted from the Land Use Plan as follows: “Most of Westlake’s residential development to date can be characterized as large homes situated on large landscaped lots where homes are sited in ways responsive to features of the lot, instead of the street. The overall character is one of a dominant landscape and houses arrayed within it, rather than houses with lots (as is common to most suburban development). Lots are generally an acre or larger with homes set well back from the street. Homes are limited to two stories in these areas and densities are one unit or less per acre. However, smaller lot sizes could be compatible with this character if such lots are clustered and surrounded with open space so that the gross density remains one dwelling unit per acre. The sense of open land is more essential than lot size. The Pastoral Community is predominantly residential with some institutional uses and office campus uses where the FAR is .1:1 or less. Informal lot landscaping replaces rigid street landscaping, giving more visual presence to the natural ground plane than the roadway. Preservation of current home values is key to future residential development.” Based on the applicant’s revised plan showing a density of 1.43 dwelling units per acre, the development does not meet the one dwelling unit per acre requirement. However, the changes in the submittal include additional open space and an increased attention to the “water related” Page 14 of 16 development concept found in the Comp Plan that “gives thought to the interface between drainage (transportation of large volumes of water) and land use.” The Land Use Plan describes the View Corridor Zone as follows: “View Corridor Zone: Lineal views, usually along creekways as they descend in a northerly direction that are attained from the Vista Point Zone. These views host the water bodies and wooded areas that are important visual assets of the Town. While, certain areas of the Town are more capable of hosting greater building height/ground plane augmentation/form deviation/displacement of natural fabric, other areas would benefit from less change of existing characteristics. More specifically, these areas can be described as “Sending Areas”. Characteristics of Sending Areas include: • Areas of significant resource; • Areas with undeveloped infrastructure • Areas of significant working land potential • Areas of natural sensitivity • Areas of unusual building conditions • Areas of visual and landmark significance” Therefore, the proposed development is located in a Primary Sending Area. Other Comprehensive Plan recommendations. Page 88 of the 2015 Comprehensive Plan provides a Summary of Considerations for Plan Construction as follows: “Westlake was born out of a commitment to landscape integrity, expressed in pastoral development forms where residential and commercial growth can be contextualized without subordinating the natural landscape. The two strongest determinants of landscape form, topography and hydrology should, therefore, be the guiding principles around which land use is defined and regulated. With respect to topography, the intent to minimize grading, which is expressed in the language of the current zoning ordinance, should be promoted in other categories through the Town. Additional measures other than density designations may be more suitable to preservation of hillside and view shed, however. By creating opportunities for water oriented development, Westlake can give greater definition, with respect to landscape expression, to new commercially oriented development in the Town. Water can also be investigated as a possible transitional tool between uses, tying properties together in a more project oriented context. With these two guiding principles, Westlake will be able to preserve landscape integrity, while operating under the confines of a PD-dominated zoning structure.” Subject to final approval of the master landscape plan, the development is consistent with the above focus on landscape integrity wherein measures such as preservation of land forms, view sheds and water features can offset increases in density. Page 15 of 16 Finally, although not a “transitional area”, the proposed development supports the demographic and socio-economic objectives of the following statement from page 274 of the Housing Plan in the 2015 Comprehensive Plan: “Meet future housing needs of an aging population: Another market audience largely missing in Westlake is 65+ households seeking simpler, lower maintenance, high-quality product. Product types appealing to this buyer include higher density (townhomes, villas, and garden residences), higher security, and lower maintenance typologies with housing interiors capable of handling art and furnishings of the wealthy older folks. The ideal size of these projects is approximately 15 to 35 acres, making them ideal for small parcels north of Dove Rd., as transitional between lower density, single-family development and commercial development.” In summary, the development, while consistent with many recommendations included in the 2015 Comprehensive Plan, remains inconsistent with the density recommendations given the proposed development’s location in the Pastoral Community and in a Primary Sending Area given the limited existing infrastructure. PUBLIC NOTIFICATION A total of four (4) public hearing notices were sent to property owners within a minimum 200 feet of the subject property. In compliance with the Code of Ordinances and State statutes, only property owners within the Town of Westlake were individually notified. However, a courtesy notice was also sent to the city of Keller. Additionally, notice of the public hearing was published in the Fort Worth Star Telegram. To date staff has received 34 letters of support, forwarded directly from the applicant, and 11 letters of concern or opposition from Keller residents. PLANNING AND ZONING COMMISSION On February 11, 2019, the Planning and Zoning Commission voted (5-0) to continue this item, including the public hearing, to the March 11, 2019 Planning and Zoning Commission meeting. As noted above, on March 11, 2019, the Planning and Zoning Commission voted (4-0) to approve this item subject to the following conditions: 3. The total residential units in the development shall not exceed 38 units and the gross residential density in the development shall not exceed 1 dwelling unit per acre; 4. All staff recommendations contained in the 3/11/2019 Planning and Zoning Commission agenda memo for this case shall be met. The above conditions are reflected in the proposed ordinance. SUMMARY AND RECOMMENDATION The subject property is currently zoned R5-Country Residential, which prescribes a maximum gross residential density of 0.2 dwelling units per acre. Based on the recommendation of the Planning and Zoning Commission, the proposal is now compliant with the recommendations of the 2015 Comprehensive Plan, specifically the Pastoral Page 16 of 16 Community recommendation, which states: “smaller lot sizes could be compatible with this character if such lots are clustered and surrounded with open space so that the gross density remains one dwelling unit per acre. The sense of open land is more essential than lot size”. Given these conditions, staff recommends approval subject to the staff recommendations contained herein and in the proposed ordinance, which reflect the recommendations from the Planning and Zoning Commission. Given the discrepancy between the proposed concept/development plan and the staff/Commission recommendation, staff has drafted the ordinance such that fewer lots can be provided utilizing the current layout and design. ATTACHMENTS Staff Exhibit: Existing Location Map Developer Submittal: Revised Development Proposal received on 3/18/2019 and Applications Staff Exhibit: Current Zoning Map Staff Exhibit: Comprehensive Plan Land Use Plan Staff Exhibit: Correspondence Received Staff Exhibit: Proposed PD Ordinance City of Keller Town of Westlake Subject Property Aspen Lane Pearson Lane SPENCER RANCH PROPOSED CONCEPT/DEVELOPMENT PLAN TOWN OF WESTLAKE March 18, 2019 This document is intended to be a summary of the key development terms and principles proposed for the new PD of the Spencer Ranch development, an approximately 38-acre parcel of land located at the southeast corner of N orth Pearson Lane and Aspen Lane in Westlake Texas. The property extends eastward to the Vaquero golf course property and southward to the border of the city of Keller. Further, this document details how a single source deliver system will manage both the developing and the homebuilding entities ensuring exceptional and consistent quality from inception to completion. This allows a single entity to remain focused on complying with the various visions, aspects and intentions of the Westlake Comprehensive Plan. Page 2 of 30 SPENCER RANCH GENERAL INFORMATION UNIQUE DELIVERY SYSTEM A Single Company Manages both the Developing and the Home Building: Waterside Properties, LLC is a 30+ year Homebuilding company and will oversee all home construction in Spencer Ranch. The Waterside Family of Companies was founded March 19, 1984 in the State of Texas. The Company has been building homes for over 30 years. The development company was founded in 2017 to establish unique, high-value communities with a commitment to environmental ethics and social design that ultimately improve the inhabitants’ well-being. The Waterside Family of Companies has common ownership in the State of Texas. Waterside Land Co, LLC (www.watersidecompanies.com) Waterside Land Co, LLC is a boutique development arm of the Waterside family of companies and will oversee the land development of Spencer Ranch. Waterside Properties, LLC (www.watersidecompanies.com) Waterside has created a “UNIQUE DELIVERY SYSTEM” SINGLE SOURCE PROJECT IMPLEMENTATION: In order for Westlake to sustain resistance to assimilation by the encroaching fabric of surrounding communities, Westlake must develop a place for a project delivery system that is not the same as those surrounding communities. At present, the dominant delivery system is land development driven, wherein there is a lot developer who sells buildable lots to a Home Builder who then brings in their own design services and their own resident client. As a result, there is a ”sameness” to the products created which are often hard to distinguish from the surrounding submarkets. Westlake needs a Single Source Project Implementation System that controls both the Developer and the Home Building entities who will not only oversee developing the land…but…also, oversee the building of the houses on that land and thereby be in a position to create a truly unusual, lifestyle product that has exceptional and consistent quality. With “skin in the game” from the outset, there is an unusual motivation to maintain quality design and construction as the ultimate return for the community. The builder’s vision is the same as the developer’s vision and the ability to bring land development and home construction together in a distinguished way is more possible. Therefore, Waterside assures the Town that Waterside is fully committed to oversee both aspects of this project (both land development and home construction) with the terms and conditions of that commitment, addressing unforeseen events, to be worked out in a development agreement with the Town. Page 3 of 30 UNIQUE COMMUNITY Waterside’s creation of Spencer Ranch is an extraordinarily unique high -quality community committed to the various visions, aspects and intentions of the Westlake Comprehensive Plan as outlined below. Spencer Ranch Community: Our goal is to bring a sense of place to new communities through a well thought- out “reverse design process,” using the natural fabric of the land and incorporating a wellness component that encourages best in class use of space. Hearkening back to centuries-old traditions of living on the land, we carefully study the terrain and craft landscape-appropriate homes that speak to the surrounding property. We follow a nonconformist method of designing and virtually building homes on the land before plotting streets, or placing the elements – lakes, creeks and pastoral swaths – ahead of development. This mindful approach interweaves the home design with the fabric of the land, blending indoors with outdoors for a more organic approach. The result is beautifully harmonious and healthy places in which to live and raise families. “Spencer Ranch 54 Homesite Concept / Development Plan” Page 4 of 30 Spencer Ranch is a “Water Themed” community (as expressed in the Town’s Comp Plan page 83-88) with a maximum of 54 houses built in multiple “Housing Cluster Zones” (as expressed in the Town’s Comp Plan page 159) in a natural setting. The community restores the native mosaic related to the water system and re-establishes the natural fabric lost over time. Spencer Ranch creates a socially supportive streetscape unlike traditional subdivision developments. Of the many focal points in Spencer Ranch, transcends traditional street development creating the sense of true community and a gathering place with a classic linear water feature. The community further reinforces the “social fabric” concept by the lack of solid fencing at individual properties and the use of specific view corridors creates “the sense of open land which is, as the Town’s comp plan calls it, “more essential than lot size.” as expressed in the Town’s Comp Plan page 159) With over 30 years’ experience in fine homebuilding, we know how to see it before we see it and how to design and build quality. “We are creating a unique and healthy style of living in Spencer Ranch, with a level of quality amenities that is really unmatched anywhere and, that contains housing that, we feel, can be sustained for a hundred years,” says founder Paul Pastore. Waterside offers full Lock-N-Leave™ services through their sister company Waterside Home Maintenance Concierge (HMC), with on-site security and a maintenance team. The residence of Spencer Ranch will enjoy a well-conceived, rich in quality neighborhood that allows for a high-quality secure maintenance free living environment. The property will be secured with various types of fencing along the perimeter and a secured gated entry and exit. This highly amenitized, healthy lifestyle community contains “multiple clusters” of housing, built around a central body of water. The community’s delivery of diversity of housing establishes a 3,000- square foot minimum home size, all with common core attributes of timeless architectural design coupled with high-quality, low-maintenance and energy- efficient homes that are finished out with best-in-class luxury-level interiors. The community is designed to encourage inhabitant interaction, promoting pedestrian mobility by bringing the homes and courtyards closer to the roadways, and by providing an internal aerobic trail and several large lakes that connect the open spaces and a tree preserve area. Page 5 of 30 Waterside has created a development that is a “WATER THEMED COMMUNITY” “WATER THEMED DEVELOPMENT: Page 83-88 of the Comprehensive Plan places the development tract in a steeper topographic setting (not the steepest) and recommends that this location is appropriate for “water related” development. Page 88 of the Comprehensive states that “additional measures other than density may be suitable for preservation of the hillside and viewshed”. Those other measures include limitations on grading (described above) and “water related” development that includes multiple water amenities. Therefore, Waterside is presenting a development design that employs water as a major component of the project…such water will be used to mitigate erosion and stabilize the grade condition. Waterside has created a development that will “LIMIT GRADING” “GRADING LIMITATIONS: Spencer Ranch is located in the “Midlands” Ecological Region of Westlake (Pg. 71 of the Comprehensive Plan). The Comp Plan requires measures be taken by any developer to limit impacts on the ground plane which promote erosion. This includes limitations on grading. Therefore, Waterside is committed to limitations on grading by allowing only that grading as is necessary to construct streets, infrastructure, development amenities, and individual home clusters. Waterside will prohibit the creation of lot pads and the use of side lot line retaining walls to create lot pads. Waterside will respect some exceptions where patios, drives, and pools are built that can be viewed as extensions of the home.” Waterside has created a development that will “RESTORE THE NATURAL MOSAIC” “RESTORATION OF THE NATURAL MOSAIC: Page 74 of the Comp Plan calls for “contextualization”. The Comp Plan states: “Contextualization, which grows from a commitment to landscape integrity is what helps to preserve the property values sustained in Westlake. It is therefore important that the plan creates mechanisms to continue the commitment to landscape integrity, not only to preserve the pastoral landscape of the Town, but to also preserve property values. In this sense, landscape integrity needs to guide the development-related considerations of the Comprehensive Plan.” Landscape Integrity is defined, in the same section, as “development that has been contextualized to fit within the natural landscape…” Therefore, Waterside will use the landscape opportunities presented by open space, defining clusters, to restore the natural mosaic in such a way that the Comp Plan’s call for “contextualization” is achieved. Therefore, Waterside will use the landscape opportunities presented by open space, defining development clusters, to restore the natural mosaic in such a way that the Comp Plan’s call for “contextualization” is achieved. This will require a considerable commitment to landscape materials and native species employed in a manner consistent with the Concept/Development Plan.” Page 6 of 30 Waterside has created a “CLUSTERED” development “CLUSTER DEVELOPMENT: The Land Use Plan section of the Comp Plan (page 159) states that “smaller lots could be compatible with this character [district] if such lots are CLUSTERED AND SURROUNDED WITH OPEN SPACE…”. Waterside is presenting a “cluster development”, Concept/Development Plan in which the “clusters” are surrounded with open space. To accomplish this in a manner consistent with the other requirements of the Comp Plan, Waterside will use the water theme element as an aspect of the open space defining the required development clusters as illustrated on the Concept/Development Plan.” LANDSCAPING Spencer Ranch will approach the total landscaping effort as one cohesive and comprehensive unit for the entire tract of land. The landscaping design will incorporate the vision of the entire tract using all aspects of the terrain, thus creating the “natural mosaic” the town prefers. Although installed in individual increments as each home is completed, the Spencer Ranch vision is to create an overlay of a full and comprehensive landscape plan that embodies the entire parcel of land and raises the standards in Westlake and is not prejudice to any one dwelling. Landscaping will encompass many aspects for the development, conceptually and physically and will be implemented in phases; a. Park Land Dedication area-outside of the community fencing b. Development infrastructure/streets; c. Individual houses The master landscape plan will include the following elements: • The establishment of a “old Growth” tree preserve at the Fisher property boundary. Establishing open space and meadows using various types, sizes and species of trees and plant material. • Weaving natural features such as bald cypress trees in and around the water system providing a more natural bank and greater complexity at the edge definitions. • A genuine effort will be made to save and protect old-growth trees. • Care will be given to how the landscaping and streets interact giving careful attention to the development of “social space” as it relates to this aspect. • Tree Mitigation: No mitigation is required for trees that lie in roadway right of ways and lakes. Landscape architect: TBD Page 7 of 30 UNIQUE AMENITIES Spencer Ranch Community Amenities: Spencer Ranch is located in a very unique setting, experiencing incredible sunsets, golf course view, lake side settings, serene high-quality lifestyle. Spencer Ranch has rolling topography, 54 high quality homesites grouped in clusters surrounded by an abundance of open space and limited fencing. Spencer Ranch will have a well-positioned high quality “statement” gate house that does not yield to neighboring communities. “The Gate House at Spencer Ranch” The gate house/sales center will be constructed on the property in the general location as shown on the Concept/Development Plan, the building (above) will have the similar architecture as the homes in Spencer Ranch. Since the gate house/sales center is the key feature to the early progress of the development and it has direct access to utilities and Pearson Ln, the developer is requesting to be allowed to submit building plans and start construction of the gate house/sales center structure within 30 days of Town approval of the concept development plan and following the normal building permit application process. Page 8 of 30 Spencer Ranch has a single entity controlling the development and home building including complete landscaping and professional construction management before during and after completion of the entire project. Project Amenities: ✓ Unique geographic location on the “edge” of the Town in a submarket ✓ Unique setting with rolling topography ✓ Dramatic western sunset views “Actual Western View from Spencer Ranch” ✓ Great golf course views ✓ Multiple water features with direct lake views ✓ Open Space approximately 45% of the development ✓ One single Westlake neighbor ✓ Privacy from commercial developments and highways ✓ Boat dock/fishing pier/pump house on the main lake ✓ Unique Landscape delivery • high quality purpose driven landscaping plan as viewed from a total neighborhood vision ✓ Pastoral street scape with two parkway drives ✓ High quality concrete streets and curb system Page 9 of 30 ✓ Enhanced street paving that is consistent with ALL home driveways ✓ Well positioned, High Quality “this is Westlake” statement gate house ✓ Well positioned, High Quality “this is Westlake” statement entry fountain and gates ✓ High quality fencing ✓ Limited internal lot fencing ✓ Limited lot grading-preserving the natural ground plain ✓ Houses built in clusters (11 or less) surrounded by open space ✓ Permanent Parkland view corridor at Pearson Ln (120’ setback) ✓ Town trail system at Pearson Ln ✓ Off street parking at each home ✓ No overnight street parking ✓ Public parking for trail head and historical marker ✓ Westlake monument signage at the southwest entry to Town ✓ Permanent tree preserve for old growth trees protecting our only Westlake neighbor and preserving old growth trees ✓ High Quality architectural designs by licensed architect ✓ High Quality home construction ✓ Single source entity controlling both the developer & home builder ✓ Single source sub-contractor base! ✓ Professional site management plan to be • Implemented during the land development and through completion of construction that clearly shows how Westlake operates differently! ✓ Debris control plan & management ✓ Material storage control plan & management ✓ Sanitary station (port-o-let) control plan & management ✓ Construction staging and parking plan & management ✓ On site access control for all construction traffic ✓ On site professional project managers ✓ On site home maintenance concierge ✓ On site lock-n-leave ✓ On site “State of the art” security ✓ Drone landing pad ✓ On site package delivery management ✓ Designated Public Art location ✓ Preservation of the Buck E King historical marker Page 10 of 30 A Community Wellness Center building is proposed and to be constructed on the property in the general location as shown on the Concept/Development Plan (locations remains in review), size TBD. The architecture will be similar to the gate house and the housing in the development. The developer will complete this facility within a timeframe not to exceed the closing of the 27th home in Spencer Ranch. The amenity center will contain the following minimum amenities: • Exercise facility • Multi use space • His & Hers restroom and changing facilities • Minimal facilities for caterers • Outdoor gathering space for events • Parking for a minimum of 10 cars In association with the Community Wellness Center, Spencer Ranch is developing plans to construct a multipurpose indoor/outdoor facility that’s fully climate controlled and will be of a size to house at a minimum one “pickle ball” court. Page 11 of 30 In addition, the multipurpose facility will have the flexibility to offer: • Basketball • Wall tennis • Volleyball • Batting cage • Golf driving net • Field hockey • Soccer • Fencing • Gymnastics • Pilates/Yoga • Cross training fitness • Indoor track • Table top games • Banquet functions • Concerts • Conference facility Community Fencing: Spencer Ranch will have a completely secure perimeter with contiguous fencing of various approved types: Perimeter fencing for the development shall be the following: • Spencer Ranch property with the immediate border of Pearson & Aspen (west & north) shall have decorative iron fencing (similar to the diagram below) that generally parallels Public streets as illustrated on the Concept/Development Plan. Decorative iron fencing with masonry columns and masonry wall sections strategically placed as determined appropriate to provide aesthetic accents, privacy, and/or shield undesirable vehicle light transmission as determined by the Developer’s Landscape Architect. Page 12 of 30 “Fence Concepts and the entry Fountain at Spencer Ranch” In addition to the above fence types, the following fence types are allowed at Spencer Ranch: • Existing fencing from neighboring properties • Wood fencing must be board on board and stained, metal post with 2x wood cap • Chain link if vinyl coated with black wind screen Fences on individual lot property lines are generally discouraged, however they may be approved by the ARB in addition to the following: a. Dog runs b. Swimming pool safety c. Privacy for internal courtyards d. Screening from neighbors Page 13 of 30 Fence Materials: Fences may be any of the following: • Masonry • Iron fences may be made of solid stock or thick wall tubular steel (sufficient thickness to not burn through when welded but no thinner than 3/32 inch) with any finials or other decorative detailing being made of solid stock and welded to the fence. • Where wood fences are used, they should be board on board, supported by vertical tubular steel supports with at least 3 2x4 stringers supporting a wood fence design with a decorative wood cap detail. The finished face of the wood fence should face to the outside of the lot, if only 1 face is finished. Wood face member of the fence should be a minimum of ¾ inches thick. All wood fences should be stained with a color approved by the ARB. • Welded tubular agriculture fences not located in a development where such a fence presents a contrast other fences of the development, and hosts and agricultural use or the fence is part of an agricultural theme is allowed. Gate Materials: • Wood with frame members measuring a minimum of 1.5 inches thick and infill planks measuring a minimum of 1.5 inches thick. • Iron gates with the frame measuring a minimum of 1.5 inches square with pickets of at least ¾ in. square with welded connections. Such fences may be made of solid stock or thick wall tubular steel (sufficient thickness to not burn through when welded but no thinner than 3/32 inch) with any finials or other decorative detailing being made of solid stock and welded to the fence construction. Page 14 of 30 Waterside has created a development that respects “OPEN LAND & UNINTERRUPTED GROUND PLANE” “OPEN LAND, UNINTERRUPTED GROUND PLANE, AND ELIMINATION OF OPAQUE FENCING (EXCEPT FOR SPECIFIC FUNCTIONAL PURPOSES): Page 159 of the Comp Plan states that “the sense of open land is more essential than lot size”. Also, it is an intent of the Pastoral Character District that “homes are sited in ways responsive to features of the lot, instead of the street.” Page 159 also states, “the overall character is one of a dominant landscape and houses arrayed within it”. Adding to this emphasis on land, page 202 of the Comp Plan states that “articulation of neighborhood edges can subdivide the ground plane with opaque walls and other hard division, which begin to suburbanize the rural landscape”. Later, on that same page it states, “open spaces are meant to be remnants of the historic rural landscape and serve as seams that bind the commercial and residential uses together…therefore, porous edges are more preferred than barrier edges”. It is clear that the Comp Plan seeks to preserve the sense of uninterrupted ground plane in the Pastoral Character District. Consequently, Waterside will provide means of defining edges (development and property fencing) that preserves the uninterrupted ground plane (as much as possible) in a way that remembers the historic rural fabric. Neighborhood definition will be transparent, not a solid barrier. Property fencing will be limited, with certain concessions to privacy needs, screening, and dog runs accommodated in ways that do not result in isolating the entire lot from the general ground plane as shown on the Concept/Development Plan.” SPENCER RANCH LAND USE PARKS AND OPEN SPACE Open space: The Westlake Comprehensive Plan and future land use plan do not show any open-space requirements for the subject property. However, per the proposed Concept/Development Plan, Waterside is providing approximately 45% Open Space and dedicating the entire Pearson frontage (approx. 3 acres) for a permanent view corridor to the Town of Westlake (the numbers below are estimates only): • Approximately 17 acres of open space are being provided. • Approximately 13 acres of Private Open Space • Approximately 3 acres of Public Open Space • Approximately 1 acres of Private Tree Preserve Area • This dedication includes a privately maintained and publicly owned/accessible linear park along Pearson Lane, and a tree preserve area near the neighboring property on Aspen Lane. • This dedication also requires any houses that side to Pearson Ln be no closer than 120 feet from Pearson Ln. Page 15 of 30 “View Shed Corridors at Spencer Ranch” Parkland dedication: Parkland dedication is required based on 1-acre of parkland for every 30 residences for a total of 2.26 acres. The Concept/Development Plan shows approximately 3 acres to be dedicated with the platting of this property. The parkland will be privately maintained by the HOA but will be publicly accessible. Community Trails: Spencer Ranch will contain an internal trail system and connect with the public system at access-controlled locations. The trail system and the aerobic programs are being studied now by Waterside and will be submitted with the landscape plan. Page 16 of 30 Waterside has created a development that respects “PUBLIC OPEN SPACE & RURAL LANDSCAPE PRESERVATION” “PUBLIC OPEN SPACE/ RURAL LANDSCAPE PRESERVATION: Page 193 of the Comp Plan describes Rural Ranch Landscape (a type of Open Space recommended for the Pastoral Character Zone) as places “where residential development may move to preserve some aspect of the rural heritage”. In the Urban Design Structure portion of the Comp Plan states that “open space edges are meant to be remnants of the historic rural landscape…” Clearly, the Comp Plan is seeking to find opportunities for preservation of the rural heritage of Westlake in the creation of open space. Spencer Ranch contains a water feature that remains from earlier days (likely a ranch stock pond). Therefore, Waterside will take measures to include portions of this water body in a usable open space that can fulfill the Comp Plan call for rural landscape preservation.” Public Art: Waterside has a strong desire to support the arts in Westlake and will commit the following to a Public Art Competition: a. A competition site of a size to be determined, to place the art at Spencer Ranch in the Public Open Space b. A donation by Waterside of an amount to be determined will be outlined in the Economic Development Agreement. Page 17 of 30 SPECIAL AREAS: Located at the Entrance to Spencer Ranch: Spencer Ranch will have a public parking lot for visitors wishing to visit the Town of Westlake Buck King historical site. Spencer Ranch will also have a Town Trail head tie in and build a walking tail at the Pearson Ln frontage of the Spencer Ranch limits. Spencer Ranch will dedicate an area of land in the general area indicated below, for the Town of Westlake to build a monument sign. Page 18 of 30 STREETS, PARKING, SIDEWALKS AND TRAILS Streets: All community streets will be privately owned and maintained. They will be constructed with mountable rolling curbs with enhanced finish locations as shown on the Concept / Development plan. Homes in Spencer Ranch will use the same material for all driveways as the street enhancement materials. Streetlights: Streetlights will be located at corners and intersections. Light fixtures will be low- pedestal-type fixtures that comply with Town ordinances and dark-sky design guidelines. Sidewalks: There are no typical concrete sidewalks in the development, walking trails (natural material) will be located along each side of the esplanade water feature, serving pedestrians on both sides of the divided main roadway and throughout the development. Trail systems: An internal trail system and or streets will facilitate pedestrian mobility within the community. The public trail system will be extended from Aspen Lane south to the Town border on the Spencer Ranch property. Water: Town of Westlake water system will connect to the development at two separate locations to create a looped-system. Sewer: The project engineer has met with town staff and performed the necessary calculations to determine that the public water and sewer systems can accommodate the additional loads anticipated to be generated by the proposed development and there are multiple access points available for connection to the public systems. Storm-water: Combination of natural grassed swales, detention ponds, and reflecting pools, connecting to the existing public street storm-water system. Duct bank: As required by Town ordinances, the developer will install a duct bank system throughout the subdivision. Each home will be connected to the duct bank system prior to the Certificate of Occupancy approval. Page 19 of 30 LOT SPECIFICATIONS Density & Lot Size: Spencer Ranch will be a unique community of high-quality housing on smaller maintenance free lots: • 54 uniquely clustered home sites The Developer/Builder are requesting the flexibility to adjust lot lines as home building permits are submitted allowing homes to be custom tailored to each site. Housing type, size, number of floors and the homeowner’s desire for larger or smaller footprints will impact lot size and configuration, and ultimately the total number of lots to be built upon. Minimum Lot Widths at Building Line (Block): All Home sites 70 feet Waterside has created a development that contains an “EQUIVALENT LOT DENSITY” in conformance with the Westlake Comprehensive Plan. “DENSITY: Page 159 of the Comprehensive Plan states, "smaller lots could be compatible with this character district if such lots are clustered and surrounded with open space so that the gross density remains one dwelling unit per acre". The text immediately following that statement further states, "the sense of open land is more important than lot size". The second statement offers a qualifier to the application of the first statement, suggesting that density equivalent to 1 unit per gross acre is desirable...if...the sense of open land is enhanced. To accomplish this, Waterside has limited the plate square footage of development to a total square footage that does not exceed the "gross" plate square footage of development at 1 unit per acre. We call this an "Equivalent Density" which is expressed in a more open landscape, a landscape where open space dominates and the expression of lot lines in the form of property line fences is discouraged. This fulfills the vision of the Comprehensive Plan. The unifying matrix of open land that defines the cluster development of Waterside prevents confusion with densities more typical of other Character Districts. Therefore, Waterside commits to a density that is equivalent to the developed density of 1 unit per acre and a total number of lots not exceeding 1.42 lots per acre; which Waterside views as necessary to achieve ALL other visions of the Comp Plan, as they are applicable to this site and specified in this application for Spencer Ranch.” Page 20 of 30 HOME / LOT SPECIFICATIONS Home Pricing: The diversity of housing orchestrated in “Cluster Zones” are projected to have an initial sales price starting at $1,795,000.00 The preeminent mission of the Westlake Comprehensive Plan is the preservation of values in Westlake. Being located in the Midlands Pastoral region of Westlake and in a submarket that sits on the edge of the Westlake Town limits, Spencer Ranch creates a high value and distinct entry point and a clear separation from surrounding markets. Spencer Ranch fills a void in the Westlake housing market with its high value product mix and will establish a barrier to prevent value degradation moving into Westlake from lower price point markets. NEW HOME DEMAND SUMMARY: Starting on Page 271 of the Comprehensive Plan through Page 275 clearly details the objectives for developers and builders to follow to satisfy the future needs in Westlake. Spencer Ranch may contain both one and two-story homes Spencer Ranch contain ALL single family detached housing Spencer Ranch Estate housing averaging 5,000 square feet Page 21 of 30 Spencer Ranch Villa Housing averaging 4,000 square feet Spencer Ranch Golf Villa Housing averaging 5,000 square feet (viewed from the Vaquero Golf Course) Page 22 of 30 Housing Type: Spencer Ranch will have multiple housing offerings that can ranges in size as follows: • South Side Villas o from 3,500 sqft • South Side “water front” Villas o from 4,000 sqft • Golf Course Villas o from 5,000 sqft • Ridge View Estates o from 5,000 • Meadows Villas o From 4,500 sqft The following is a guideline for the proposed housing types in the development. Given the desire for lot size flexibility to accommodate buyers desires we have listed the specific information below regarding lot and housing types, final details are yet to be determined. 1. All single-family homes (except the Golf Villas bordering Vaquero Golf Course) a. Housing Type: Single Family Detached b. Minimum Lot Size: 1,000 square feet c. Minimum Lot Width at Building Line: 70 feet d. Front Setback: 10 feet; or 5 feet (2) where courtyards/motor courts are provided e. Side Setbacks: 0 feet f. Rear Setback: 25 feet, or 0 feet abutting water features and/or open space. Minimum Unit Size: 3,000 square feet g. Maximum Height: 35 feet from finished floor to the mid-point of the span of the highest roof pitch. 2. Golf Course Villas Housing Type: Single Family Detached a. Minimum Lot Size: 1,000 square feet b. Minimum Lot Width at Building Line: 70 feet c. Front Setback: 10 feet; or 5 feet (2) for side facing garages, courtyards and accessory structures not utilized for storage. d. Side Setbacks: 0 feet e. Rear Setback: Per diagram below and no less than 30 feet f. Minimum Unit Size: 3,000 square feet g. Maximum Height: Per diagram below: Page 23 of 30 Building Setbacks (in feet): Front Rear (1) Sides(1) All single-family 10 (2) 25 (3) (4) 0 (1) When backing or siding to Aspen Lane, there shall be a 25-foot minimum setback. (2) Garages, Casitas or bathrooms, stairs or elevators -not contiguous to the main living footage, courtyards, and accessory structures may encroach up to 5 feet into the required front yard setback. (3) When abutting an open space or water feature, no setback is required. (4) When backing to Vaquero Golf Course setback should follow the diagram below including a maximum total building height: “Golf Villa Height Diagram” Page 24 of 30 “Development Set Backs Diagram for Spencer Ranch” Waterside has created a development that creates a “DIVERSIFICATION OF HOUSING” “DIVERSIFICATION OF HIGHER END HOUSING OPTIONS THROUGH CREATION OF A UNIQUELY SOCIAL LIFESTYLE COMMUNITY: The Housing Plan component of the Comp Plan (pages 261-272) stresses the need for “life style” offerings to accompany housing options for other high-end markets. These projects, which diversify the housing offerings more typical of Westlake are needed to attract younger buyers, meet future housing needs of an aging population, and mitigate value encroachment (typically approaching Westlake from Southlake and Keller). The unique location of Spencer Ranch at the edge of the Town, abutting the shared boundary line with Keller, makes it particularly important to accomplishing this objective. Therefore, Waterside has created a “lifestyle” product which is more than simply smaller lots. Spencer Ranch presents a true housing/living option that will indeed capture a high-end buyer at the edge of the Westlake submarket (abutting Keller) …thereby affirming the continued integrity of that submarket. Key to the lifestyle/ housing product is the proposed social use of the street space and the creation of a true promenade, in the manner of distinctive/ historic developments such as Riverside, Chicago (1879). Waterside commits to create a significant central promenade with amenities that enhance pedestrian use of the entire space and promotes pedestrian pleasure in that use, as shown on the Concept/Development Plan.” Page 25 of 30 Housing: Minimum Size: The minimum size of a residence shall be 3,000 square feet. Massing: Massing will vary by housing type. Great attention will be given to achieving horizontal and vertical articulation within individual structures and/or within groups of structures, so as to avoid the uniform massing and alignment found in typical suburban subdivisions. Building Height: Because of the potential for lower-pitched roofs with the chosen architectural style, smaller footprints of clustered homes, and respecting the natural terrain in the development with terrain absorption within the foundations of each house, we are requesting a maximum building height be measured from the top of the foundation for all building sites and as indicated for each home type in the development as outlined in this document. This allows the architectural aspect to create a rolling fabric of houses not restricted to the typical cookie-cutter guidelines. Garages/Parking: All homes shall have a minimum of FOUR spaces for off street auto parking in any configuration but must have a minimum of TWO enclosed parking spaces and TWO additional off-street parking spaces. Garage doors shall be made of sectional wood or be wood clad. Garage doors shall be recessed a minimum of (8) eight inches (nominal) from the plane of the adjacent wall. Front facing garage doors are allowed if located further back on the lot than the side -facing garage portion and are in a motor court setting. Roofs: Roofing materials facing the weather shall be of high and enduring quality. Permitted roof materials include: a. High quality clay or concrete tile (with a thickness similar to clay). (Acceptable styles and colors to be detailed in the Spencer Ranch Design Guidelines document) b. Metal: Traditional standing seam with standing folded and soldered seams. Allowed for porches and architectural features only. (Acceptable styles and colors to be detailed in the Spencer Ranch Design Guidelines document) c. Flat or low-pitched roofing that is 2:12 pitch or less may be of any code approved material. Page 26 of 30 Windows: Orientation of all windows at Spencer Ranch will follow the Town’s Building Quality Manual section; Standard 3.10: Openings. Spencer Ranch will allow the following windows and doors providing they are of high quality and comply with the Spencer Ranch Building Guidelines: a. High quality wood windows and doors with metal clad exteriors and minimum glazing with Cardinal 366 insulated glass or equal. b. High quality iron windows and doors and minimum glazing with Cardinal 366 insulated glass or equal. Exterior walls: Exterior walls shall be 80 percent masonry as required for all Residential Districts by the Code of Ordinances. Exterior walls shall have horizontal an d vertical articulation or architectural delineation on all elevations. Exterior lighting: All exterior lighting shall be subdued, indirect and comply with town ordinances, as well as follow “dark-sky” design guidelines. QUALITY CONSTRUCTION INTENT The intent of Waterside’s submittal, to create a community of clustered high- quality homes on smaller low-maintenance lots, to provide the “diversity of housing types” that the Comprehensive Plan states is needed within the Town of Westlake. This new proposed PD District will contain development standards that are intended to guide design and construction of the high-quality homes within the new PD District to be equal to or exceed the current level of quality of construction and finish-out as that found in the best of the larger estate homes that currently exist in the Town of Westlake. This new PD contains language that references: • An Architectural Review Board (ARB) • Spencer Ranch Building Guidelines • Town of Westlake Building Quality Manual Page 27 of 30 It is the intent of this new PD to use these documents, as approved by the Town. The ARB shall assure compliance with all architectural standards and may not change the documents so as to cause a change in permittable architectural style without the Town Managers prior approval. The ARB shall approve all plan submittals prior to them being submitted to the Town for permitting. The Town still has authority to enforce Town of Westlake ordinances and the Building Quality Manual. Waterside has created a development that incorporates the Town’s “BUILDING QUALITY MANUAL” “INCORPORATION OF THE TOWN’S BUILDING QUALITY MANUAL: The Town has, in no uncertain terms, made a statement as to its expectations for the future quality of its built fabric in the recently adopted Building Quality Manual. Therefore, Waterside will adopt Westlake’s Building Quality manual as part of the Spencer Ranch Design Guidelines.” COMMUNITY ASSOCIATION & DESIGN CONTROL Homeowners Association: The community will be governed by a to-be-established Homeowners Association (HOA) that will be responsible for the common area maintenance, private street maintenance, and enforcing the design guidelines for the community. Design Guidelines: A detailed design guideline document is being prepared specifically for Spencer Ranch. The Spencer Ranch design guideline document will clearly detail design and building guidelines specific to Spencer Ranch and will also -incorporate the Town of Westlake’s Building Quality Manual into its architectural standards. Design enforcement will be performed by the ARB which will include a licensed Architect as a required member. The Town will assure compliance with the all Town Ordinances. Architectural Design: At Spencer Ranch, The Developer/Builder will employ 360-degree architecture when designing each residential product within the development. The open/urban beauty of the development drives this design and building practice. Page 28 of 30 In this practice, full consideration is given to every building elevation and every roof plane of each structure during the design process. The intent is to ensure delivery of aesthetically pleasing architectural features as viewed from all parts of the development, and not create a distinct and determinable hierarchy between major and minor elevations. Waterside will reduce the visual impact of all exterior mechanical elements. Spencer Ranch requires all building plans submitted be done by a Licensed Architect. Architectural Review: An Architectural Review Board (ARB) will be established through the HOA/declarant that has approval authority over the house quality of design and construction of all homes and additions. The ARB will be charged to ensure that the Building Guidelines of Spencer Ranch and the included Westlake Building Quality Manual provisions, are strictly followed. The Conditions, Covenants, and Restrictions will establish the required makeup of the ARB which will include a licensed Architect as a required member. Waterside has created a development that requires “LICENSED ARCHITECTS” “LICENSED ARCHITECT PROVISION OF PLANS THAT INCLUDE EXTERIOR DETAILS NECESSARY TO EXPLAIN ALL FEATURES OF CONSTRUCTION TO THE BUILDING TRADES: Much of the home designs built in Westlake, Southlake, Trophy Club, and Keller are done by “Building Designers” instead of a Licensed Architect. The plan sets produced by this means of production are very basic, leaving much of what is finally seen from the street, in the hands of a tradesman who may, or may not, have sufficient background to execute an outcome consistent with the design intent or the particular style represented by the “designer’s” drawings. Continued over time, this will ultimately weaken the distinctiveness of Westlake. Therefore, Waterside commits to have all building plans prepared by a Licensed Architect and that plan sets prepared by this architect will contain sufficient details to fully explain the exterior construction to a competent contractor/tradesperson.” Waterside has contracted with C.A. Nelson Architecture Group to serve as the sole l icensed architect for the entire project. Clay Nelson (Principal) will also serve on the ARB. Page 29 of 30 LIFESTYLE COMMUNITY WITH MAINTENANCE FREE LIVING Waterside Home Maintenance Concierge provides a “World Class” level of service to its clients that is not offered in the marketplace. We strive to exceed all expectations of a Concierge Maintenance service by preprogramming maintenance and anticipating our client’s needs. Waterside’s Home Maintenance Concierge Service will provide its full complement of services to the Spencer Ranch community and manage all aspects for the community services with it’s on site personnel. The service creates “One Point of Contact” for our clients and provides them with a trusted advisor so they can live a maintenance free lifestyle! Waterside also offers our exclusive Lock – N – Leave service creating worry free travel! The service platform that Waterside HMC offers to its clients include some of the following: • Fully managed property maintenance services • Lock-N-Leave service year round • Quarterly 110point maintenance checks • Monthly 20point maintenance checks • 24/7 Emergency Service Response • Single point of contact • Preventative maintenance service and checks on all equipment • Complete supervision of any additional work completed at the house • Additional Boutique services available (window cleaning, power washing, etc...) • Vetted Preferred Contractor used for any and all work • Quality craftsmanship and industry knowledge Page 30 of 30 CONSTRUCTION SITE MANAGEMENT Debris: All construction debris from all construction sites within the development will be contained in a central location. The location will be enclosed with temporary wood fencing, or chain-link fencing with screening material attached, as to not be directly visible from any street. Contractors will be required to contain debris daily and/or transport to the containment site. Soil: All construction spoils or natural soil moved from all construction sites within the development will be stored in a designated location(s) that will be enclosed by proper silt fencing and/or other erosion control measures as needed. Documentation: All town and construction documentation, including but not limited to building permits, inspection reports, geotechnical studies and building plans, will be located on-site in the construction offices of the developer/builder with full access granted to town building officials. Sanitary Stations: Multiple sanitary stations (port-o-let) will be located within the community in close proximity to all construction sites. The stations will be screened from the street frontage, either behind a 6-foot-high screening fence or with temporary mock-ups built from materials similar to the materials used in the construction of the homes. The mock-ups will contain three walls and a roof section hiding the stations from the street view. Sanitary stations will be cleaned on a regular schedule. Material Storage: Material storage will be located within a designated area(s) that will be screened with fencing TBD. Construction Parking: Contractors will be allowed to park only in designated parking areas and on a single side of the roadway near the construction site, but not adjacent to any occupied dwellings. Contractors will be required to park in designated parking areas only for weekend work after residents occupy the development. end Plan ElEmEnts: land UsE Plan 167the land Use Planwith residential integrity, rural identity, town form, and commercial/residential rela-tionships. Therefore, the built characteristics of Land Use in Westlake should be in-fluenced by what Community Type is engaged and what View Condition is affected. Community Type expresses the desired built character of land use that should mani-fest in development of existing entitlements. View Condition expresses the magnitude (density and height) of land use that preserves the vista.Land Use Relationship to View Conditions: The View Analysis discussed in the Frame-work Plan section of this Comprehensive Plan identifies 5 view conditions as follows:1. Vista Point Zone: Sectors of Westlake from which the recognizable views, gen-erally considered typical of the Town, are attained. These are typically northerly views from areas from areas along, and south of, Dove Road. These elevations are generally higher than elevations along Highway 114. Views identified by Planning Workshop participants as characteristic of Westlake’s pastoral, pictur-esque, and rural identity are mostly seen from this zone and the view is toward the north.2. Vista Termini Zone: Areas of Westlake, generally north of Dove Road, where land elevations equal or exceed elevation 690 to 700 ft. above sea level and cre-ate promontory landforms that define the end point of any vista which includes them. In many cases, these are the land related objects viewed.3. Vista Shade Zone: Areas of Westlake, generally along Highway 114 and north of the vista termini (discussed above) that contain land elevations lower than 690 – 700 ft. above sea level and are largely obscured from view by these higher elevations in the foreground of any vista toward them.4. View Shed Zone: Areas of Westlake that are not visually screened or obscured by foreground land elevations and consequently lie within the vista attained from the Vista Point Zone.5. View Corridor Zone: Lineal views, usually along creek ways as they descend in a northerly direction that are attained from the Vista Point Zone. These views host the water bodies and wooded areas that are important visual assets of the Town.The proposed Land Use Plan of the Comprehensive Plan Update builds from the Goals and Citizen Priority Statements as well as the Framework Plan. A key component of the Framework Plan is the View Analysis that expresses the geographic boundaries of citizen prioritization of pastoral, picturesque, and rural views (one of the primary themes and repeated concerns of citizen input). The Framework Plan further divides the 5 View Conditions into 3 Community Types (Pastoral Community, Town Com-munity, and Regional Community), thereby expressing the Citizen Priorities dealing LAND USE PLANDISCLAIMER: The land use districts shown on this map in no way modify the permitted uses and/ or conditions of use (FAR, building height, etc.) specified in any zoning or Planned Development Ordinance approved by the Town of Westlake. These land use districts are intended to guide the Council in their evaluation of site plans submitted for their approval and/ or property owner requests to transfer commercial square footage from one land use district to another when the legal mechanism for such transfer has been adopted by the Town of Westlake. See Policy Section A in the Implementation Document for rates of transfer, trigger points, and other implementation language. Views and Vista Define the Experience of Westlake January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Bill Cassidy DocuSign Envelope ID: B803A18B-5DF3-4302-8F4E-6A7069AC380D January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Bill Greenwood DocuSign Envelope ID: 332FE9B8-73AF-47B3-88F3-A029C65E9CE9 January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Bob Whittman DocuSign Envelope ID: 2A6B36A3-AD3D-47A4-9B8D-5CCFADE224CB January 5, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Brad Harris DocuSign Envelope ID: 27CF2351-243D-4053-B5BB-BC835687D120 January 5, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Charles Honea DocuSign Envelope ID: F2A78EBC-252C-4581-B91C-638FD1F3E759 January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Charlie Morse DocuSign Envelope ID: EDE30810-2A9A-4F6D-BB53-3CFB2CA489CA January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Dan Norman DocuSign Envelope ID: 4F2918A2-6097-47FF-843A-7490CF7B50FE February 8, 2019 Town of Westlake Planning Commission and Town Council 1500 Solana Blvd., Building 7, Suite 7200 Westlake, TX 76262 Re: Town of Westlake and Spencer Ranch Community Dear Commission and Council Members: Paul Pastore, Managing Partner of Waterside Companies, shared with me his idea of developing a unique residential community in Westlake called Spencer Ranch. Paul’s vision for Spencer Ranch is that it be a “true wellness community” not only for its residents, but also for the Town of Westlake. Spencer Ranch would serve as a catalyst for healthier people in your community, your town and even the North Texas region. My father, Dr. Kenneth H. Cooper, also known as “the father of aerobics,” began a fitness revolution in 1970 founded on prevention that continues today. As President and CEO of Cooper Aerobics, I have the privilege of looking for ways to continue promoting the positive benefits of preventive health and exercise. While we do not have a contractual relationship, we have been assisting Paul with preliminary planning of the wellness components of Spencer Ranch. I support Paul’s vision for Spencer Ranch and hope we will have the opportunity to work together with Paul and the Town of Westlake to develop and deliver a distinctive wellness community focused on improving the quality and quantity of people’s lives. Sincerely, Tyler C. Cooper, MD, MPH President and CEO January 5, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Frank Lammons DocuSign Envelope ID: 579A9738-2DC7-40C5-9EC5-668798BC8FA0 April 26, 2019 Town of Westlake Re: Spencer Ranch Development My wife and I live one block South of Westlake and have admired the eloquent homes of Vaquero for years. After reviewing the proposed development by the Waterside Land Company, we believe that the tradition of architectural beauty will be upheld and enhanced into a very desirable community. We feel this development will further enhance Westlake as a very upscale community offering style and security sculpted from natural topography with beautiful trees and lakes. We would love to see the Town of Westlake approve this perfectly planned development. Sincerely, Freddy and Deborah Lyons January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Gary Hazelwood DocuSign Envelope ID: 7BFD7990-B9BD-4AFE-B55A-6258FD1E365D February 28, 2018 Town of Westlake Regarding: The Spencer Ranch Community 1925 Pearson Ln Westlake, Texas Town of Westlake, My wife and I are pleased to see a master planned community proposed to replace the current equestrian property that is adjacent to our home in Oakmont Hills. The developer has taken the time to meet with us individually to discuss the plans and to address any possible development concerns regarding design, drainage, privacy, landscaping, and trash/dust issues. Spencer Ranch will provide couples high value homes in an aesthetically pleasing environment that supports security and maintenance free living. In addition to current Westlake residents who may be looking to downsize and stay in the community, Spencer Ranch invites a new market of individuals who may want to make Westlake their home. I believe the developers of this project have the best intention to retain the natural beauty of this property and to ensure neighboring families are not negatively impacted. We encourage the Town to approve this development in the most expeditious fashion so that work can begin soon. Sincerely, Dave and Sandy Huff 1864 Barrington Court Roanoke, TX 76262 January 5, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Jim Shindler DocuSign Envelope ID: 5D634895-CADD-41E4-AF75-EA57FA1C17A0 January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Jimmy Tinsley DocuSign Envelope ID: 9EE608FC-AF59-4708-9C21-12CEC4EC5178 January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, John Kuelbs DocuSign Envelope ID: CFBF1969-D14C-4D23-83FC-6C54DF56566D January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, John Miller DocuSign Envelope ID: A316F607-63EE-42E0-B1AF-6986189F2A1F January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, John Shea DocuSign Envelope ID: A2F6FA77-C77D-4424-9FB4-FCFA818014CB January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, John Vassallo DocuSign Envelope ID: 9FF82213-B0FB-4B82-A9B1-05C3C8F10524 January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Ken Beam DocuSign Envelope ID: FE9F29C6-B315-4DDB-9ADE-3228D5280881 January 5, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Leroy Hess DocuSign Envelope ID: DC2A6CE7-53A1-4F4A-80AB-419AF4C6EE48 January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Matt Rose DocuSign Envelope ID: 0A74E1DC-7F05-405D-A522-530059C1F27B January 5, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Murphy Markham DocuSign Envelope ID: 09FC3B95-ED13-4FA8-8D45-CAA1A651EC92 January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Paul Marciano DocuSign Envelope ID: D1A7CEC3-3AAA-4425-AB7F-512EFDCE815D January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Scott Cruickshank DocuSign Envelope ID: 2CA45EAF-4703-45E9-A19E-5CCE8E0BBFE1 January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Steve Titcomb DocuSign Envelope ID: FD1CF151-0ED4-44BD-9589-1469D592E524 January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Terry Horton DocuSign Envelope ID: BE66100A-4D6F-46C4-B085-039A9660CA66 January 4, 2018 Town of Westlake Regarding: Spencer Ranch Development 1925 Pearson Rd Westlake TX 76262 I would like to encourage the approval of the proposed development by Waterside Land Co on Pearson Ln in Westlake. We have developed a vast number of friends in Westlake and now that our children are grown, our current home is more than we need. The opportunity to live in a high end, secure community that will watch over our residence when we are traveling is very desirous. The Waterside development suits our empty nester lifestyle, as well as keeping us close to our community of friends. Sincerely, Todd Armstrong DocuSign Envelope ID: F9B6F60F-9E0F-4B72-B397-CA4132F4EA95 January 28, 2019 Town of Westlake Planning Commission and Town Council 1500 Solana Blvd., Building 7, Suite 7200 Westlake TX 76262 Re: Spencer Ranch Community Dear Commission and Council Members: I am very excited to see such a great development finally come to Texas and more specifically to Westlake! I am encouraging the Commission and Council to approve this development in the most expeditious fashion as I anticipate this could become the new standard for high value developments and housing in the area if not the state! As some of you know I was involved with the Vaquero Club for a number of years and have been fortunate enough to be engaged with many other clubs throughout the country. I was introduced to Paul Pastore by a member at Vaquero a couple of years ago and after seeing the proposed Spencer Ranch development and learning about his vision, I can truly say you have an opportunity to bring to the Town of Westlake an incredibly unique and necessary project for our time, something I have not seen on the ground in all of my travels. It is most refreshing to see a high-quality home builder control the land and be this committed to deliver high value homes with the amenities and a wellness component in a Town like Westlake. I would encourage your approval of this project and welcome any questions should you have any reservations. Sincerely, Tony Dawson 1229 Castle Cove Lane Keller, Texas, 76262 cell From: To:Paul Pastore Cc:; Ron Ruthven Subject:Oakmont Hills and Spencer Ranch Date:Monday, February 4, 2019 3:10:17 PM Paul, In anticipation of Waterside’s re-submission of the Spencer Ranch proposal we re-convened our HOA Committee and have a few additional items we would like your consideration and agreement. I have also copied the members of the Oakmont Hills HOA Committee and Ron Ruthven, Director of Planning and Development, City of Westlake. - We would like Waterside to revise our prior agreement (Item #2) and increase setbacks to 75 feet and include any outbuildings. We have reviewed the recent approval of “The Knolls” subdivision in Westlake and there is a 150’ setback to the adjacent properties in Glenwyck Farms. In addition, the northern and western boundaries of Spencer Ranch are adjacent to roadways. This should provide the ability to "shift" the plan to provide more space between adjacent properties on the southern border to improve privacy. - We would like Waterside to revise our prior agreement, Item #1, section b – to not limit the decorative iron fencing with masonry columns to 1,000 feet. Upon further research the property line is 1,554’ according to the original plat for Oakmont Hills. Since the intent of our previous agreement was to provide the fencing to all properties on the border, the limit of 1,000’ should be removed and stated to apply to the entire length of the property line. - We would like Waterside to agree to not hold any homeowner in Oakmont Hills at fault of any water drainage onto Spencer Ranch. Our prior agreement stated Waterside will not adversely impact natural water runoff or drainage to the Oakmont Hills homes. Since natural drainage is down the property line into a collection pond on the south-west corner of Spencer Ranch we want to clarify that Waterside will incorporate this drainage pattern and not hold any Oakmont Hills homeowner liable for water runoff or drainage onto Spencer Ranch. - There is concern of rodent intrusion into Oakmont Hills properties when the barns on the south side of Mr. Brittan’s property are demolished. We would like a mitigation plan that will prevent the migration of rodents into adjacent Oakmont Hills properties - We would like a construction barrier in place along the southern border of Spencer Ranch to prevent dirt and mud to potentially flow onto Oakmont Hills properties during construction. - We would like an airborne dust and dirt mitigation plan. There are 11 homes in Oakmont Hills adjacent to Spencer Ranch southern border. Most of these homes have pools and there is a concern of airborne dust and dirt coating windows and impacting pool operation. - In addition to item 4 of our prior agreement we would like a construction schedule of each phase: demolition, construction of fence, landscaping, houses along the property line. Paul, we appreciate your willingness to have open dialog and work with the southern neighbors of Spencer Ranch to create a community that we all are proud of. Thank you and we look forward to your agreement. Sincerely, Dave Elmer Oakmont Hills HOA From: To:Ron Ruthven Cc:Nick Ford Subject:Rezoning request from R5 to PD7 for Spencer Ranch Date:Wednesday, February 6, 2019 12:43:22 PM Dear Mr. Ruthven and Mr. Ford, We are homeowners in Oakmont Hills which borders the south side of the proposed Spencer Ranch development. We are responding to the public hearing notice regarding the rezoning request. We are thankful for the willingness of Mr. Pastore and Waterside Land Co. to address the concerns of Oakmont Hills residents but we remain concerned with the density of this project. When we moved to Oakmont Hills it was due to the neighborhood and the surrounding area. This part of Keller and Westlake is mostly multi-acre residences and the open space is a breath of fresh air and becoming scarcer. We thought this “country feeling” would be preserved even if the property in question were developed due to it being zoned R5. We are concerned and opposed to the following: 1. The density is not compatible with the surrounding area. Many homes to the north, west and south are on multi acre lots. The proposal will create a sea of rooftops in an area where multi-acre lots and open spaces are the reason why people choose to live in this area. The proposal is better suited for areas around Solana, not in a quiet multi-acre residential area. 2. The set-backs and lot sizes are not adequate. The developer for “The Knolls” in Westlake agreed to a 150’ setback to accommodate residents of Glenwyck Farms and has minimum lot sizes of 10,000 SqFt. These lot sizes may be appropriate for the Entrada and Solana areas of Westlake but not in the area of the proposed Spencer Ranch. We feel the set-backs and lot sizes should be equal, or greater, than what was approved for The Knolls. 3. Town Homes should not be allowed to be included. The surrounding area does not support the requested density per the 2 points above. We appreciate the City of Westlake considering our concerns. We welcome the opportunity to meet with any town officials to discuss our concerns and thank you again for your consideration. We are unable to attend the public hearing, as our daughter has a KHS Varsity Basketball playoff game that evening. Christie & Jody Mathews 2013 Bantry Drive From: To:Ron Ruthven; Nick Ford Subject:Spencer Ranch and Standard Permitted Base Plate Date:Friday, February 8, 2019 9:35:58 AM Mr. Ron Ruthven, Director of Planning and Development, Westlake Planning and Development Mr. Nick Ford, Development Coordinator, Westlake Planning and Development Re: Rezoning request from R5 to PD7 for Spencer Ranch Dear Mr. Ruthven and Mr. Ford, I understand the logic in determining gross density but 7,000 SqFt is overstating the general, or, base plate calculation. The base plate density calculation is most critical in order to achieve compliance to the town’s goal of maintaining a “Pastoral Community”. It is stated that the base plate density of 7,000 was provided by architects and designers designing houses for Granada. These are design numbers and not what is actually being built. Using data from Tarrant County Appraisal District (TAD) the average home size for the 55 completed homes in Granada is 6,089 SqFt. The average base plate (house first floor and garage) is 5,062 SqFt. Based on these actual numbers, to achieve equivalent gross density, the aggregate plate square footage for Spencer Ranch with 38 lots on 38 acres should not exceed 192,367. I believe the standard permitted base plate is overstated and should be amended to 5,000 SqFt. I am willing to share my data with you if you would like to discuss. Sincerely, Dave Elmer From: To:Ron Ruthven; Nick Ford Subject:Rezoning for Spencer Ranch Date:Wednesday, February 6, 2019 9:07:50 AM Mr. Ron Ruthven, Director of Planning and Development, Westlake Planning and Development Mr. Nick Ford, Development Coordinator, Westlake Planning and Development Re: Rezoning request from R5 to PD7 for Spencer Ranch Dear Mr. Ruthven and Mr. Ford, We are David and Julie Elmer, the homeowners at 2017 Bantry Drive which borders the south side of the proposed Spencer Ranch development. We have lived in our home for 14+ years and are part of the Oakmont Hills subdivision in Keller. Thank you for sending the public hearing notice regarding the rezoning request. We acknowledge and are thankful for the willingness of Mr. Pastore and Waterside Land Co. to address the concerns of Oakmont Hills residents but we remain concerned with the density of this project. When we bought our home a significant amount of consideration was the potential future of the property behind us. We were hopeful the property would remain open but given the growth in this area we believed it could eventually be developed. However, we felt better knowing it was zoned R5 and thought any development would consist of large estate homes on 5 acre lots. We are concerned and opposed to the following: 1. The density is not compatible with the surrounding area. Many homes to the north, west and south are on multi acre lots. The proposal will create a sea of rooftops in an area where multi-acre lots and open spaces are the reason why people choose to live in this area. The proposal is better suited for areas around Solana, not in a quiet multi-acre residential area. 2. The set-backs and lot sizes are not adequate. The developer for “The Knolls” in Westlake agreed to a 150’ setback to accommodate residents of Glenwyck Farms and has minimum lot sizes of 10,000 SqFt. These lot sizes may be appropriate for the Entrada and Solana areas of Westlake but not in the area of the proposed Spencer Ranch, however, the set-backs and lot sizes should be at least equal, or greater, to what was approved for The Knolls. 3. Town Homes should not be allowed to be included. The surrounding area does not support the requested density per the 2 points above. We appreciate the City of Westlake considering our concerns. We welcome the opportunity to meet with any town officials to discuss our concerns and thank you again for your consideration. David and Julie Elmer 2017 Bantry Drive Keller, TX 76262 February 4, 2019 Mr. Ron Ruthven, Director of Planning and Development, Westlake Planning and Development Subject: Z11-17-15 - Rezoning request from R5 to PD7 for 38 acres located east of Pearson and south of Aspen Dear Mr. Ruthven, I am homeowner in the Oakmont Hills subdivision located on the south side of the requested zoning change. We recently purchased a home at 2025 Bantry Drive. North. When we bought the home, we knew it bordered Westlake; with its strict zoning requirements, (one home per 5 acres) that if it were developed it would be done with the strictest requirements and it would not impact our home value. We expected not more than 7 homes on the 37 acres and this proposal is for 68 homes on 37 acres. We are concerned. The density and lot size are not compatible with the surrounding area and is way below the standards set for prestigious Westlake. Many homes to the north, south and west of the property in question are on multi-acre lots. The perimeter walls, landscaping, etc. around these properties are impeccable. There needs to be a set-back or buffer between the proposed homes on the south boarder and Oakmont Hills, that is manicured / maintained, landscaped, etc. Drainage needs to be considered given the slope, need to maintain runoff, etc. This is not a high-density area and sq. ft. minimums should be in line with Westlake and minimally above the Oakmont standard of 4000 sq. ft. This proposed development would not even meet Keller’s zoning requirements for this area. The planned development calls for smaller homes on very small lots. Should the market not bear the proposed cost of these homes, the chance of our home’s value decreasing is heightened. In addition, high density development creates other concerns for our neighborhood. The amount of traffic will increase on neighboring roads causing traffic back-ups and wear and tear all along Pearson, Dove and Aspen. Having a student in Westlake Academy, we are keenly aware of the lack of classroom space and congested traffic for the already overpopulated school. Students are currently in temporary buildings and traffic around the school is horrible. I am concerned about what problems the addition of a high-density neighborhood will cause the school. We appreciate the City of Westlake considering our concerns, and welcome the opportunity to meet with any town officials to discuss the above. Regards, Dorothy Anne Street Skipper 2025 Bantry Dr. Keller, TX 76262 From: To:Ron Ruthven; Nick Ford Cc: Subject:Rezoning Request from R5 to PD7 for Spencer Ranch Date:Monday, February 11, 2019 6:52:36 AM Attachments:image002.png Mr. Ron Ruthven, Director of Planning and Development, Westlake Planning and Development Mr. Nick Ford, Development Coordinator, Westlake Planning and Development Subject: Rezoning Request from R5 to PD7 for Spencer Ranch Dear Mr. Ruthven and Mr. Ford, We are Jim and Donna Dettbarn, the homeowners of 2021 Bantry Drive that borders the south side of the proposed Spencer Ranch development. We have lived here for over 15 years and are part of the Oakmont Hills subdivision in Keller. We appreciate you sending the public hearing notice regarding the rezoning request. We are aware and thankful for the willingness of Mr. Paul Pastore and Waterside Land Co. to acknowledge and address the concerns of Oakmont Hills residents; however, we remain quite concerned with the density of the project. When we purchased our home we heavily weighed the future of the property around our lot and the Oakmont Hills neighborhood and we were comforted by the way Westlake was managing the development to retain the R5 zoning to have large estate homes on approximately 5 acre lots. Our concerns are outlined below: 1. The density proposed for Spencer Ranch is not compatible with the surrounding area. Most of the homes to the North, West and South are on multi-acre lots. This proposal creates a significant change to the landscape of the area to include rooftop after rooftop versus the distributed roofs amongst the open space. It appears this type of density is much more aligned with the transition that was set forth in the Solana area and not amidst the more secluded area with the larger 5-acre estates. 2. Town Homes should not be allowed in the development. The surrounding area does not support having town homes as outlined herein. 3. The set-backs and lot sizes are not adequate. From research, the “Knolls” in Westlake already agreed to use 150 foot set-backs to accommodate residents of Glenwyck Farms and set minimum lot sizes to 10,000 Sqft. The lot sizes might be more suited in the Solana and Entrada area of Westlake, but not for Spencer Ranch. In any case, the set-backs and lot sizes of Spencer Ranch should be at least equal to or greater than what was approved for the “Knolls” subdivision. 4. As we saw with the rains over the last few years, it is imperative that the developer must ensure all drainage and water run-off is handled proactively so existing properties are not hindered or impacted. The plan presented indicates a dramatic change in the water flow due to structure changes and infrastructure. Directed consideration is required to ensure existing properties are not harmed or require adjustment. We really appreciate the City of Westlake considering our concerns and we welcome the opportunity to meet with any town of Westlake officials to discuss our concerns. Thank you again for your time and consideration. Jim and Donna Dettbarn 2021 Bantry Drive Keller, TX 76262 From: Ron Ruthven <rruthven@westlake-tx.org> To: Ron Ruthven <rruthven@westlake-tx.org> Cc: Nick Ford <nford@westlake-tx.org> Sent: Friday, February 1, 2019 2:43 PM Subject: Courtesy Notice of Rezoning Request - Westlake, TX Dear Keller Resident: Please see the attached public hearing notice regarding a rezoning request for property located in the Town of Westlake that is adjacent to the city of Keller. Given your previous correspondence regarding a past rezoning request for the subject property, the attached notice is provided to you as a courtesy should you wish to attend the public hearings and/or provide additional correspondence. The official meeting agenda packet that contains the details of the request will be available for public viewing not later than Thursday, February 7, 2019 at www.westlake-tx.org. If you wish to be removed from any future email notifications regarding this item, please let me know. Thank you. Ron Ruthven, AICP Director of Planning and Development Town of Westlake 1500 Solana Blvd., Bldg. 7, #7200 Westlake, TX 76262 Phone: 817-490-5739 Fax: 817-430-1812 Email: rruthven@westlake-tx.org www.westlake-tx.org From:L To:Ron Ruthven Subject:Re: Courtesy Notice of Rezoning Request - Westlake, TX Date:Tuesday, February 12, 2019 8:46:00 AM Dear Ron Ruthven: Thank you for this notice. I would like to go on record again, as opposing this zoning change. I believe the proposed Spencer Ranch goes against the original Westlake plan of large natural lots and low population density. Since the clearing of the Solona development, I’ve come to realize that the city of Westlake seems to be on the side of the developers and has little interest in preservation. In my opinion, Westlake is turning into a newer Las Colinas but with larger homes and more security gates. The deer and turkey sightings have become non existent this last year. Next will be the little grey fox and owl that are frequently caught on my security cameras. The potential Spencer Ranch area and adjoining properties are rich with what is Westlake’s original appeal of natural trees and abundant nature. I hope the Planning commission sees the value in holding true to Westlake's vision on this southwest side. Also, I’m concerned with Spencer Ranch’s "target price” (that’s a noncommittal term) of mid million ($1.7?) because myself and several of my neighbor’s have substantially invested in remodeling our older homes. If Spencer Ranch decides to lower their price range down the road, our neighborhood would have to compete with their new construction. Lastly, I’ll reiterate from my last letter, the increased traffic that Spencer Ranch would contribute to Pearson Road would be irresponsible. I’m planning to contact my Keller planning representative to find out more details. Thank you for listening. I hope to be pleasantly surprised when Westlake declines this zoning change. Leah Blalock 2037 Bantry Dr, Keller, TX 76262 Also thank you on behalf of little grey fox and owl On Feb 1, 2019, at 2:43 PM, Ron Ruthven <rruthven@westlake-tx.org> wrote: Dear Keller Resident: Please see the attached public hearing notice regarding a rezoning request for property located in the Town of Westlake that is adjacent to the city of Keller. Given your previous correspondence regarding a past rezoning request for the subject property, the attached notice is provided to you as a courtesy should you wish to attend the public hearings and/or provide additional correspondence. The official meeting agenda packet that contains the details of the request will be available for public viewing not later than Thursday, February 7, 2019 at www.westlake-tx.org. If you wish to be removed from any future email notifications regarding this item, please let me know. Thank you. Ron Ruthven, AICP Director of Planning and Development Town of Westlake 1500 Solana Blvd., Bldg. 7, #7200 Westlake, TX 76262 Phone: 817-490-5739 Fax: 817-430-1812 Email: rruthven@westlake-tx.org www.westlake-tx.org <image002.png> <Public Hearing Notice -Town of Westlake.pdf> From: To:Ron Ruthven; Nick Ford Subject:Rezoning request from R5 to PD7 for Spencer Ranch Date:Monday, February 11, 2019 4:11:23 PM Dear Mr. Ruthven and Mr. Ford, We are homeowners in Oakmont Hills which borders the south side of the proposed Spencer Ranch development. We are responding to the public hearing notice regarding the rezoning request. We are thankful for the willingness of Mr. Pastore and Waterside Land Co. to address the concerns of Oakmont Hills residents but we remain concerned with the density of this project. When we moved to Oakmont Hills it was due to the neighborhood and the surrounding area. This part of Keller and Westlake is mostly multi-acre residences and the open space is a breath of fresh air and becoming scarcer. We thought this “country feeling” would be preserved even if the property in question were developed due to it being zoned R5. We are concerned and opposed to the following: 1. The density is not compatible with the surrounding area. Many homes to the north, west and south are on multi acre lots. The proposal will create a sea of rooftops in an area where multi-acre lots and open spaces are the reason why people choose to live in this area. The proposal is better suited for areas around Solana, not in a quiet multi-acre residential area. 2. The set-backs and lot sizes are not adequate. The developer for “The Knolls” in Westlake agreed to a 150’ setback to accommodate residents of Glenwyck Farms and has minimum lot sizes of 10,000 SqFt. These lot sizes may be appropriate for the Entrada and Solana areas of Westlake but not in the area of the proposed Spencer Ranch. We feel the set-backs and lot sizes should be equal, or greater, than what was approved for The Knolls. 3. Town Homes should not be allowed to be included. The surrounding area does not support the requested density per the 2 points above. We appreciate the City of Westlake considering our concerns. We welcome the opportunity to meet with any town officials to discuss our concerns and thank you again for your consideration. Thank you, Meghan E. Inglis Oakmont Hills resident Southern border of proposed development. -- Thank you, Meghan Meghan Inglis Sr. Director, Pricing & Business Development | Pharmaceutical Solutions and Services McKesson | 6555 State Highway 161, Irving, TX 75039 | Confidentiality Notice: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and proprietary information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. From: To:Ron Ruthven Cc:Nick Ford Subject:Not just a form letter but does concern Rezoning Request for Spencer Ranch Date:Monday, February 11, 2019 12:37:26 PM Dear Mr. Ruthven and Mr. Ford, Our Homeowners Board presented us with the opportunity to share our concerns with you by forwarding you the following letter. It is our greatest hope that you have been deluged with these forwarded letters. I’ve included it below to add our voices to however many letters you have already received. But I also have a question. Will there be an opportunity at this evening’s meeting for concerned residents to speak? If yes, I would prepare something very brief. If no, I hope you’ll share my thoughts… My husband and I have been visiting family in this area for decades. When he retired last year we were finally able to move here and join much of our family. The last few years, every time we visited we scouted out potential neighborhoods for our home. We always ended up back at the Oakmont Hills community. Beautifully maintained with mature landscaping and within easy reach of Westlake, Southlake and Keller. Add to that lots of still open spaces with longhorns and wildflowers. Gorgeous. It was our understanding that the lots in Oakmont were the SMALLEST lots in the area - 1/2 acre. All that said, we believe in capitalism. We understand that owners of property have every right to expect that if they do their due diligence and plan and invest appropriately they will reap great rewards. But, did the buyers of the property in question not know ahead of time that they were buying property with size restrictions? Of course they did. I don’t know their original intentions but I’m guessing they always figured they could somehow persuade Westlake Planning & Development to give into them, either through promises of increased taxes to the city or something else - their attempt was obviously to convince Westlake P&D of the upside to smaller lot sizes, tighter homes, more traffic and more people. We ask that you stand strong and retain the existing zoning that contributes so hugely to the unique excellence that is Westlake. Thank you, Nancy (and William Shull) 1825 Kinsale Drive _________________________________________________________ We are homeowners in Oakmont Hills which borders the south side of the proposed Spencer Ranch development. We are responding to the public hearing notice regarding the rezoning request. We are thankful for the willingness of Mr. Pastore and Waterside Land Co. to address the concerns of Oakmont Hills residents but we remain concerned with the density of this project. When we moved to Oakmont Hills it was due to the neighborhood and the surrounding area. This part of Keller and Westlake is mostly multi-acre residences and the open space is a breath of fresh air and becoming scarcer. We thought this “country feeling” would be preserved even if the property in question were developed due to it being zoned R5. We are concerned and opposed to the following: 1. The density is not compatible with the surrounding area. Many homes to the north, west and south are on multi acre lots. The proposal will create a sea of rooftops in an area where multi-acre lots and open spaces are the reason why people choose to live in this area. The proposal is better suited for areas around Solana, not in a quiet multi-acre residential area. 2. The set-backs and lot sizes are not adequate. The developer for “The Knolls” in Westlake agreed to a 150’ setback to accommodate residents of Glenwyck Farms and has minimum lot sizes of 10,000 SqFt. These lot sizes may be appropriate for the Entrada and Solana areas of Westlake but not in the area of the proposed Spencer Ranch. We feel the set-backs and lot sizes should be equal, or greater, than what was approved for The Knolls. 3. Town Homes should not be allowed to be included. The surrounding area does not support the requested density per the 2 points above. We appreciate the City of Westlake considering our concerns. We welcome the opportunity to meet with any town officials to discuss our concerns and thank you again for your consideration. From: To:Ron Ruthven; Nick Ford Subject:Westlake development proposal - CONCERNS Date:Wednesday, February 6, 2019 6:16:37 PM Mr. Ron Ruthven, Director of Planning and Development, Westlake Planning and Development Mr. Nick Ford, Development Coordinator, Westlake Planning and Development Re: Rezoning request from R5 to PD7 for Spencer Ranch Dear Mr. Ruthven and Mr. Ford, We are homeowners in Oakmont Hills which borders the south side of the proposed Spencer Ranch development. We are responding to the public hearing notice regarding the rezoning request. We are thankful for the willingness of Mr. Pastore and Waterside Land Co. to address the concerns of Oakmont Hills residents but we remain concerned with the density of this project. When we moved to Oakmont Hills it was due to the neighborhood and the surrounding area. This part of Keller and Westlake is mostly multi-acre residences and the open space is a breath of fresh air and becoming scarcer. We thought this “country feeling” would be preserved even if the property in question were developed due to it being zoned R5. We are concerned and opposed to the following: 1. The density is not compatible with the surrounding area. Many homes to the north, west and south are on multi acre lots. The proposal will create a sea of rooftops in an area where multi-acre lots and open spaces are the reason why people choose to live in this area. The proposal is better suited for areas around Solana, not in a quiet multi-acre residential area. 2. The set-backs and lot sizes are not adequate. The developer for “The Knolls” in Westlake agreed to a 150’ setback to accommodate residents of Glenwyck Farms and has minimum lot sizes of 10,000 SqFt. These lot sizes may be appropriate for the Entrada and Solana areas of Westlake but not in the area of the proposed Spencer Ranch. We feel the set-backs and lot sizes should be equal, or greater, than what was approved for The Knolls. 3. Town Homes should not be allowed to be included. The surrounding area does not support the requested density per the 2 points above. We appreciate the City of Westlake considering our concerns. We welcome the opportunity to meet with any town officials to discuss our concerns and thank you again for your consideration. Thank you, Shaen R. Inglis Oakmont Hills resident Southern border of proposed development. From: To:Ron Ruthven Cc:Nick Ford Subject:Rezoning request from R5 to PD7 for Spencer Ranch Date:Wednesday, February 6, 2019 4:40:31 PM Mr. Ron Ruthven, Director of Planning and Development, Westlake Planning and Development Mr. Nick Ford, Development Coordinator, Westlake Planning and Development Re: Rezoning request from R5 to PD7 for Spencer Ranch Dear Mr. Ruthven and Mr. Ford, We are homeowners in Oakmont Hills which borders the south side of the proposed Spencer Ranch development. We are responding to the public hearing notice regarding the rezoning request. We are thankful for the willingness of Mr. Pastore and Waterside Land Co. to address the concerns of Oakmont Hills residents but we remain concerned with the density of this project. When we moved to Oakmont Hills it was due to the neighborhood and the surrounding area. This part of Keller and Westlake is mostly multi-acre residences and the open space is a breath of fresh air and becoming scarcer. We thought this “country feeling” would be preserved even if the property in question were developed due to it being zoned R5. We are concerned and opposed to the following: 1. The density is not compatible with the surrounding area. Many homes to the north, west and south are on multi acre lots. The proposal will create a sea of rooftops in an area where multi-acre lots and open spaces are the reason why people choose to live in this area. The proposal is better suited for areas around Solana, not in a quiet multi-acre residential area. 2. The set-backs and lot sizes are not adequate. The developer for “The Knolls” in Westlake agreed to a 150’ setback to accommodate residents of Glenwyck Farms and has minimum lot sizes of 10,000 SqFt. These lot sizes may be appropriate for the Entrada and Solana areas of Westlake but not in the area of the proposed Spencer Ranch. We feel the set-backs and lot sizes should be equal, or greater, than what was approved for The Knolls. 3. Town Homes should not be allowed to be included. The surrounding area does not support the requested density per the 2 points above. We appreciate the City of Westlake considering our concerns. We welcome the opportunity to meet with any town officials to discuss our concerns and thank you again for your consideration. Sincerely, Walter and Jessica Roberts 1829 Barrington Dr. Keller, TX 76262 Sent from Mail for Windows 10 Ordinance 881 Page 1 of 13 TOWN OF WESTLAKE ORDINANCE NO. 881 AN ORDINANCE ZONING AN APPROXIMATELY 37.798 ACRE TRACT OF LAND GENERALLY LOCATED AT THE SOUTHEAST CORNER OF ASPEN LANE AND PEARSON ROAD, FURTHER DESCRIBED AND DEPICTED IN EXHIBIT “A” ATTACHED HERETO, FROM THE R5 “COUNTRY RESIDENTIAL” ZONING DISTRICT TO PD7 “PLANNED DEVELOPMENT DISTRICT NUMBER SEVEN”; AUTHORIZING RESIDENTIAL DEVELOPMENT; APPROVING A CONCEPT/DEVELOPMENT PLAN; APPROVING A SPECIFIC USE PERMIT (SUP) FOR PRIVATE STREETS; PROVIDING FOR THE AMENDMENT OF THE OFFICIAL ZONING MAP; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR A SAVINGS CLAUSE; PROVIDING FOR A PENALTY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Chapter 102 of the Code of Ordinances of the Town of Westlake establishes zoning districts, permissible uses, development standards, and other zoning related regulations; and WHEREAS, Section 62-31 of the Code of Ordinances of the Town of Westlake adopts a Comprehensive Plan for the Town of Westlake; and WHEREAS, Section 102-33(3) of the Code of Ordinances of the Town of Westlake states that the purpose of a Planned Development District is to: Provide for a superior design of lots or buildings; Provide for increased recreation and/or open space opportunities for public use; Provide rural amenities or features that would be of special benefit to the property users or community; Protect or preserve natural amenities and environmental assets such as trees, creeks, ponds, floodplains, slopes or hills and viewscapes; Protect or preserve existing historical buildings, structures, features or places; and provide an appropriate balance between the intensity of development and the ability to provide adequate supporting public facilities and services.; and WHEREAS, on July 13, 2018, the Town of Westlake received a Zoning Change Request from the Waterside Land Company, LLC on behalf of the property owner for the property depicted and described in Exhibit “A” requesting that the Town zone said property to PD7 “Planned Development District Number Seven” in accordance with Chapter 102 of the Code of Ordinances of the Town of Westlake, Texas; and WHEREAS, because of the size, location, and natural features of the property the Town has a critical interest in the development of said property and is encouraging such development to the highest possible standards of quality consistent with the Town's long-term development vision; and WHEREAS, the property owner (or representative) appeared before the Planning and Zoning Commission and Town Council and affirmed that the property owner is seeking this zoning request; and Ordinance 881 Page 2 of 13 WHEREAS, all legal requirements of state statutes and Town ordinances of the Town of Westlake, as well as all legal requirements and legal notices and prerequisites having been complied with, including but not limited to chapter 551 of the Government Code and Chapter 211 of the Local Government Code; and WHEREAS, on March 11, 2019, the request was heard by the Westlake Planning and Zoning Commission and the Planning and Zoning Commission recommended approval with conditions of said request; and WHEREAS, the Town Council of the Town of Westlake, Texas, at a public hearing called at a regular session of the Town Council did consider the following factors in making a determination as to whether the requested change should be granted or denied: congestion in the streets, including safety of the motoring public and the pedestrians using the facilities in the area; to secure safety from fire, panic or other dangers; the promotion of health and the general welfare, to provide for adequate light and air, to prevent the overcrowding of land; to avoid undue concentration of the population, facilitating the adequate provision of transportation, water, sewers, schools, parks, and other public requirements; and WHEREAS, the Town Council has determined that said Zoning Change Request is consistent with the development goals, standards, and desired uses described in the Comprehensive Plan; and WHEREAS, the Town Council of the Town of Westlake, Texas, is of the opinion that it is in the best interests of the Town and its citizens that this Ordinance should be approved and adopted. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE TEXAS: SECTION 1: That all matters stated in the preamble are found to be true and correct and are incorporated herein as if copied in their entirety. SECTION 2: That the property shown on attached Exhibit “A” is hereby rezoned from the R5, “Country Residential” zoning district to PD7, Planned Development District Number Seven”, including the approval of a concept/development plan and a Specific Use Permit (SUP) for private streets, subject to the conditions contained in Exhibit “B”. SECTION 3: This Zoning District shall be subject to all regulations contained in the Code of Ordinances of the Town of Westlake, Texas, except where amended herein. SECTION 4: The Town Secretary shall amend, or cause to have amended, the Official Zoning Map of the Town of Westlake to reflect the zoning of the property described and depicted on attached Exhibit “A”. SECTION 5: It is hereby declared to be the intention of the Town Council of the Town of Westlake, Texas, that sections, paragraphs, clauses and phrases of this Ordinance are Ordinance 881 Page 3 of 13 severable, and if any phrase, clause, sentence, paragraph or section of this Ordinance shall be declared legally invalid or unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such legal invalidity or unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs or sections of this Ordinance since the same would have been enacted by the Town Council of the Town of Westlake without the incorporation in this Ordinance of any such legally invalid or unconstitutional, phrase, sentence, paragraph or section. SECTION 6: That this Ordinance shall be cumulative of all other Town Ordinances and all other provisions of other Ordinances adopted by the Town which are inconsistent with the terms or provisions of this Ordinance are hereby repealed. SECTION 7: That this Ordinance only affects the Property located within the boundaries of PD 7 and does not change or affect any other property, including but not limited to the property adjacent to PD 7. SECTION 8: Any person violating any of the provisions of this ordinance shall be deemed guilty of a misdemeanor offense and upon conviction thereof shall be fined in a sum not to exceed Two Thousand Dollars ($2,000.00) for each separate offense. A separate offense shall be deemed committed upon each day, or part of a day, during which a violation occurs or continues. SECTION 9: This ordinance shall take effect immediately from and after its passage as the law in such case provides. PASSED AND APPROVED ON THIS 25th DAY OF MARCH 2019. _____________________________ ATTEST: Laura Wheat, Mayor ____________________________ Kelly Edwards, Town Secretary APPROVED AS TO FORM: ____________________________ L. Stanton Lowry, Town Attorney Ordinance 881 Page 4 of 13 EXHIBIT A Description and Depiction of Subject Property Property Depiction Ordinance 881 Page 5 of 13 EXHIBIT A continued Description and Depiction of Subject Property Property Description Ordinance 881 Page 6 of 13 EXHIBIT B Planned Development District Number 7 (PD7) Development Standards Section 1 – General A. The purpose of PD7 is for a detached, and attached, single-family residential development of not more than 38 residential lots with a gross maximum density of 1.0 dwelling unit per acre. B. The development authorized by this ordinance shall be consistent with all provisions and graphics contained the Concept/Development Plan, attached as Exhibit B-1. However, where a conflict exists between the provisions of Exhibit B and Exhibit B-1, the provisions of Exhibit B shall prevail. C. Platting 1. The developer shall submit, and receive approval for, a preliminary site evaluation prior to any land disturbance activities; 2. Prior to the final acceptance of public improvements, approval of private streets and release of residential building permits, the developer shall submit, and receive approval for, a final plat, which shall be platted as a single phase. 3. The final plat noted above shall be recorded with the County Clerk prior to the release of any residential building permits. 4. Prior to the approval of the preliminary site evaluation, the developer shall submit a development agreement for final approval by the Town Council per the requirements of the Code of Ordinances. 5. For the purpose of executing the design goals of this ordinance and all exhibits attached herein, amended plats may be submitted as part of a building permit application in order to perform minor adjustments to lot boundaries as needed. The final recording of said amended plat may be deferred to the completion of construction provided the plat is recorded before the completion of the final inspection. D. Permitted Uses – The following are permitted principal and accessory uses: 1. Single Family Detached Homes 2. Open Space 3. Private Streets 4. Public and Private Parks 5. Drainage facilities (including retention and detention ponds) 6. Guard houses 7. HOA operated amenities, including a community wellness center for the private use of the development residents and privately accessible. 8. Accessory Uses (as authorized in the Town’s zoning regulations) Ordinance 881 Page 7 of 13 E. Homeowner’s Association – The development shall be governed by a Homeowner’s Association (HOA) that will be responsible for common area maintenance, guard house and community center maintenance, private street maintenance, front yard maintenance and enforcing the HOA Design Guidelines for the community. The Home Owners Association shall appoint an Architectural Review Committee that must have at least one (1) Texas Licensed Architect with experience in applying Design Guidelines and advising an Architectural Review Committee on matters of design. F. Any change, reassignment, and/or transfer of ownership from the developer that is the signatory party in the development agreement noted above to a different entity shall require the approval of the Town Council through an amendment to the development agreement, through a separate resolution, or as an amendment to this ordinance. G. The developer of this project shall also serve as the master builder of all units constructed therein, with final compliance with the terms and conditions of such commitment laid out in the Town approved Development Agreement or unless otherwise requested by the developer and approved by the Town Manager or designee for special conditions. I. All plans submitted for permit within this development shall be prepared by a Texas Licensed Architect and contain sufficient details required to explain the full exterior construction to a competent contractor. Section 2 – Residential Design Standards A. Lot and Housing Specifics: The following are the design criteria for each housing type as described in Exhibit B-1: 1. All single-family homes (except the Golf Villas bordering Vaquero Golf Course) a. Housing Type: Single Family Detached b. Minimum Lot Size: 1,000 square feet c. Minimum Lot Width at Building Line: 70 feet d. Front Setback: 10 feet; or 5 feet (2) where courtyards/motor courts are provided e. Side Setbacks: 0 feet; the principal structure may be located on the property line; the total length of the building to be located on the property line shall not exceed 20% of the average lot depth. staff recommendation f. Rear Setback: 25 feet, or 0 feet abutting water features and/or open space. When backing to the southern border and Oakmont Hills, there shall be a 40-foot minimum setback for the main house structure. g. Minimum Unit Size: 3,000 square feet h. Maximum Height: 35 feet from finished floor to the mid-point of the span of the highest roof pitch. Ordinance 881 Page 8 of 13 2. Golf Course Villas a. Housing Type: Single Family Detached b. Minimum Lot Size: 1,000 square feet c. Minimum Lot Width at Building Line: 70 feet d. Front Setback: 10 feet; or 5 feet (2) for side facing garages, courtyards and accessory structures not utilized for storage. e. Side Setbacks: 0 feet; the principal structure may be located on the property line; the total length of the building to be located on the property line shall not exceed 20% of the average lot depth. staff recommendation f. Rear Setback: 20 feet, or 0 feet for homes abutting water features and/or open space; 30 feet for homes adjacent to the Vaquero golf course. g. Minimum Unit Size: 3,000 square feet h. Maximum Height: 48 feet from the finished floor to the highest ridge per diagram below: B. Special Setback Provisions: 1. Lots adjacent to Aspen Lane shall have a 25-foot minimum setback from Aspen Lane. 3. All homes shall be setback a minimum of 120 feet from Pearson Lane 4. All homes shall be setback a minimum of 25 feet from the southern boundary line of the development. C. Garages: All homes shall have a minimum of four parking spaces for off-street automobile parking in any configuration but must have a minimum of two enclosed parking spaces and two additional off-street parking spaces. Garage doors shall be made of sectional wood or be wood clad. Garage doors shall be recessed a minimum Ordinance 881 Page 9 of 13 of (8) eight inches (nominal) from the plane of the adjacent wall. Front facing garage doors are allowed if located further back on the lot than the side-facing garage portion and are in a motor court setting. D. Roofs: Permitted roof materials include: 1. High quality clay or concrete tile (with a thickness similar to clay). (Acceptable styles and colors to be detailed in the Spencer Ranch Design Guidelines document) 2. Metal: Traditional standing seam with standing folded and soldered seams. Allowed for porches and architectural features only. (Acceptable styles and colors to be detailed in the Spencer Ranch Design Guidelines document) 3. Flat or low-pitched roofing that is 2:12 pitch or less may be of any code approved material. E. Exterior Walls: Exterior walls shall meet the requirements of the Town’s Building Quality Manual as adopted by Resolution 18-02. F. Design Guidelines: Prior to the approval of the preliminary site evaluation, the developer shall submit final design guidelines for approval by the Town Council that shall be recorded with the private deed covenants, conditions and restrictions. Said guidelines shall incorporate the recommendations contained in the Westlake Building Quality Manual referenced above. With the exception of any guideline provision addressing a particular architectural style, said design guidelines shall be enforced by Town staff in reviewing building permit applications for compliance with the provisions above. Guideline provisions to be enforced by staff include, but may not be limited to, general building articulation, massing, fenestration, roof slope, construction details and building materials. G. Elevation Samples: All homes and buildings constructed in this development shall be generally consistent with the elevation samples provided in Exhibit B-1 such that the primary articulation elements and general layout of the home on the lot are generally consistent with the elevations. Provided all other provisions of this section are met, significant deviations from these elevations may be approved provided that both the homeowner’s association and the Town Manager or designee are in agreement. Section 3 – Landscaping, Open Space, Water Features, Tree Preservation and Parkland Dedication A. Landscaping: Not later than 90 days after the approval of the preliminary site evaluation, the developer shall submit a master landscape plan for the development prepared by a State of Texas registered landscape architect. Said plan shall be reviewed for final approval by the Town Manager or their designee. The plan may be forwarded to the Town Council for final approval at the discretion of the Town Ordinance 881 Page 10 of 13 Manager. The final approved master landscape plan shall be included with the development agreement. At a minimum the plan shall include the following: 1. The Plan shall substantially comply with the Concept/Development Plan (Exhibit B-1) 2. The landscape plan shall reflect developer’s efforts to comply with the “landscape Integrity” objectives of the Town’s Comprehensive Plan and employ predominantly those plant materials (within the planting areas that define the cluster zones and lake edges) that are consistent with restoration of the natural mosaic. 3. Specifics on execution of the landscaping goals stated in Exhibit B-3 including details of planting locations and types, quantities and schedule; 4. A detailed tree survey as required by the Code of Ordinances; 5. Any replanting requirements as part of required tree mitigation; 6. Specific planting and maintenance responsibilities of the developer versus the homebuilder and the homeowner’s association; 7. Details for guest parking in the development where applicable; 8. Locations and specifications for the internal trail system B. Tree Preservation – All protected trees shall require mitigation upon damage or removal as required by the Code of Ordinances. Mitigation may be provided through tree plantings as shown on the landscape plan during development and/or home building phases. Where possible, old growth trees and tree clusters should be preserved as identified in the master landscape plan. C. Open Space 1. A minimum of 17 acres (45%) of the development shall be reserved as open space. All open space, including public and private, shall be substantially consistent with Exhibit B-1 and shall be distributed as follows: a. Private Open Space: 13 acres minimum b. Public Open Space (parkland): 3.0 acres minimum 2. Private open space amenities shall, at a minimum, include the following: a. Gate house – The gatehouse shall be constructed and completed by the developer not later than final acceptance of public improvements and prior to the release of residential building permits. The gatehouse design shall be consistent with the design shown in Exhibit B-1. b. Community Wellness Center - The center shall be constructed on the property in the location shown on the concept/development plan. The developer shall build and complete this facility no later than the issuance of the building permit for the 27th home permitted in the Ordinance 881 Page 11 of 13 development. No additional builder permits shall be issued in the development until the center is deemed complete by the Town Manager or designee. The community wellness center shall be generally consistent with the building design exhibits shown in Exhibit B-1. The multipurpose indoor/outdoor facility as described in Exhibit B-1 shall not be constructed until additional detail is submitted including building elevations, a lighting plan and all information required for commercial site plans in Chapter 102 of the Code of Ordinances. Said additional detail shall be formally submitted as an amendment to these zoning regulations and shall require final approval by the Town Council upon the recommendation of the Planning and Zoning Commission. D. Parkland Dedication – Parkland dedication as proposed by the developer in Exhibit B-1 is hereby approved subject to the following conditions: 1. Parkland dedication shall be consistent with Exhibit B-1. 2. Maintenance responsibilities for the parkland shall be the responsibility of the developer/HOA. 3. Details of amenities, and final locations of parking and trails shall be consistent with Exhibit B-1 and shall require final approval as part of the development agreement between the applicant/developer and the Town. 4. The gatehouse, including the property upon which the gatehouse is located, shall be owned and maintained by the HOA. E. Water Features – Water features are a key component of the development, making this a “Water Themed” development as called for in the Town’s Comprehensive Plan. Water features shall be constructed by the developer as part of the required public improvements. Said features shall be located and designed as shown on Exhibit B-1 and shall be maintained by the homeowners association. Section 4 – Fencing A. The perimeter of the development, not including the publicly owned areas, along Aspen Lane and Pearson Lane shall contain decorative iron fencing located in a manner substantially consistent with the Concept/Development Plan (Exhibit B-1) and which preserves the sense of “open ground plane” as described in the Town’s Comprehensive Plan by the use of decorative iron fencing with masonry columns. Masonry wall sections shall be permitted as depicted in Exhibit B-1 for the purpose of providing aesthetic accents, privacy, and/or shield undesirable vehicle light transmission as determined in the master landscape plan. C. Individual property fences shall be minimalized in order to preserve the open ground plane and permitted for privacy needs, screening, and/or dog runs in ways that are consistent with HOA guidelines which must prevent isolation of the “lot” Ordinance 881 Page 12 of 13 from the general ground plane. Individual lot fencing materials shall be established in the required architectural design guidelines. Section 5 – Streets, sidewalks/trails, parking and access A. Streets – An SUP is hereby granted for all community streets within PD7, which shall be private and constructed to Town standards. Street lighting shall be located at all corners and intersections. Lights shall be low pedestal type fixtures that comply with Town standards and Comprehensive Plan recommendations as well as follow the Town’s low intensity lighting standards. B. Trails – An internal trail/sidewalk system shall be constructed and shall connect to the public trail system at access-controlled locations. The final location and details of the internal trail system shall be included with the required landscape plan. The public trail shall comply with all Town requirements and shall be generally located as shown in concept/development plan and shall be constructed by the developer as part of the required public improvements. Trail amenities shall at a minimum include the amenities proposed by the developer. C. Parking – Adequate guest parking, trailhead and park parking, and parking for the proposed private amenities shall be shown on the master landscape plan with maintenance responsibilities borne by the homeowner’s association as described in the required development agreement. E. Access – Street access to the development from Pearson Lane shall require written final approval from the City of Keller. F. Cluster mailboxes – Prior to installation, the final design, location and size of any cluster mailboxes as required by the United States Postal Service shall be submitted to the Town Manager or designee for review. Upon review, the Town Manager or designee may approve or deny said design, location and size. If denied, the developer may appeal the decision of the Town Manager or designee to the Town Council provided the written appeal is received not later than 30 days from the formal notice of denial. G. Prior to the final acceptance of public improvements, the developer shall install intersection illumination improvements to the intersection of Aspen Lane and Pearson Lane such that the nighttime visibility of the intersection is improved. Said illumination improvements shall be detailed as part of the development agreement and shall require the final approval of the town manager or designee. H. As part of the required development agreement, roadway improvements correcting the existing offset at the intersection of Aspen Lane and Cielo Court in the City of Keller may be approved pending a mutual agreement between the developer, Town and/or other adjacent property owners regarding the feasibility of conducting said improvements. Ordinance 881 Page 13 of 13 Section 6 – Utilities, Drainage and Grading A. Public Utilities – Water and sewer service shall be provided by the Town of Westlake to this development. The developer shall, at their cost, construct all necessary water and sewer system improvements per Town standards and shall secure any necessary easements. B. Duct Bank - A Duct Bank system shall be installed by the Developer throughout the subdivision as required by Town ordinances. The Duct Bank shall be located within a utility easement, the final details of which shall be determined by the Town Manager or designee. The home builder shall tie into the Duct Bank prior to the Final Inspection for the home. C. Stormwater – Stormwater facilities shall be installed by the developer and employ facilities that are recommended by the comprehensive plan. Final location and design of said facilities shall require the final approval of the Town Manager or designee. D. Lot Grading – Grading and disturbance of land by the developer shall be restricted to areas necessary to construct streets, public infrastructure, development amenities, and approved water features. The pre-grading of individual residential lots by the developer for the purpose of creating a residential pad is hereby prohibited. Section 7 – Public Art and Town Entry Marker/Monument A. As part of the development agreement noted above, the developer agrees to submit a public art plan shall be approved by the Town Manager or designee and that generally conforms to the public art provisions contained in Exhibit B-3 as proposed by the developer. A Town of Westlake entry marker or monument shall be included in this plan. SUMMARY OF EXHIBITS: Exhibit B-1 – Concept/Development Plan SPENCER RANCH PROPOSED CONCEPT/DEVELOPMENT PLAN TOWN OF WESTLAKE March 18, 2019 This document is intended to be a summary of the key development terms and principles proposed for the new PD of the Spencer Ranch development, an approximately 38-acre parcel of land located at the southeast corner of N orth Pearson Lane and Aspen Lane in Westlake Texas. The property extends eastward to the Vaquero golf course property and southward to the border of the city of Keller. Further, this document details how a single source deliver system will manage both the developing and the homebuilding entities ensuring exceptional and consistent quality from inception to completion. This allows a single entity to remain focused on complying with the various visions, aspects and intentions of the Westlake Comprehensive Plan. Ordinance 881 Page 2 of 30 SPENCER RANCH GENERAL INFORMATION UNIQUE DELIVERY SYSTEM A Single Company Manages both the Developing and the Home Building: Waterside Properties, LLC is a 30+ year Homebuilding company and will oversee all home construction in Spencer Ranch. The Waterside Family of Companies was founded March 19, 1984 in the State of Texas. The Company has been building homes for over 30 years. The development company was founded in 2017 to establish unique, high-value communities with a commitment to environmental ethics and social design that ultimately improve the inhabitants’ well-being. The Waterside Family of Companies has common ownership in the State of Texas. Waterside Land Co, LLC (www.watersidecompanies.com) Waterside Land Co, LLC is a boutique development arm of the Waterside family of companies and will oversee the land development of Spencer Ranch. Waterside Properties, LLC (www.watersidecompanies.com) Waterside has created a “UNIQUE DELIVERY SYSTEM” SINGLE SOURCE PROJECT IMPLEMENTATION: In order for Westlake to sustain resistance to assimilation by the encroaching fabric of surrounding communities, Westlake must develop a place for a project delivery system that is not the same as those surrounding communities. At present, the dominant delivery system is land development driven, wherein there is a lot developer who sells buildable lots to a Home Builder who then brings in their own design services and their own resident client. As a result, there is a ”sameness” to the products created which are often hard to distinguish from the surrounding submarkets. Westlake needs a Single Source Project Implementation System that controls both the Developer and the Home Building entities who will not only oversee developing the land…but…also, oversee the building of the houses on that land and thereby be in a position to create a truly unusual, lifestyle product that has exceptional and consistent quality. With “skin in the game” from the outset, there is an unusual motivation to maintain quality design and construction as the ultimate return for the community. The builder’s vision is the same as the developer’s vision and the ability to bring land development and home construction together in a distinguished way is more possible. Therefore, Waterside assures the Town that Waterside is fully committed to oversee both aspects of this project (both land development and home construction) with the terms and conditions of that commitment, addressing unforeseen events, to be worked out in a development agreement with the Town. Ordinance 881 Page 3 of 30 UNIQUE COMMUNITY Waterside’s creation of Spencer Ranch is an extraordinarily unique high -quality community committed to the various visions, aspects and intentions of the Westlake Comprehensive Plan as outlined below. Spencer Ranch Community: Our goal is to bring a sense of place to new communities through a well thought- out “reverse design process,” using the natural fabric of the land and incorporating a wellness component that encourages best in class use of space. Hearkening back to centuries-old traditions of living on the land, we carefully study the terrain and craft landscape-appropriate homes that speak to the surrounding property. We follow a nonconformist method of designing and virtually building homes on the land before plotting streets, or placing the elements – lakes, creeks and pastoral swaths – ahead of development. This mindful approach interweaves the home design with the fabric of the land, blending indoors with outdoors for a more organic approach. The result is beautifully harmonious and healthy places in which to live and raise families. “Spencer Ranch 54 Homesite Concept / Development Plan” Ordinance 881 Page 4 of 30 Spencer Ranch is a “Water Themed” community (as expressed in the Town’s Comp Plan page 83-88) with a maximum of 54 houses built in multiple “Housing Cluster Zones” (as expressed in the Town’s Comp Plan page 159) in a natural setting. The community restores the native mosaic related to the water system and re-establishes the natural fabric lost over time. Spencer Ranch creates a socially supportive streetscape unlike traditional subdivision developments. Of the many focal points in Spencer Ranch, transcends traditional street development creating the sense of true community and a gathering place with a classic linear water feature. The community further reinforces the “social fabric” concept by the lack of solid fencing at individual properties and the use of specific view corridors creates “the sense of open land which is, as the Town’s comp plan calls it, “more essential than lot size.” as expressed in the Town’s Comp Plan page 159) With over 30 years’ experience in fine homebuilding, we know how to see it before we see it and how to design and build quality. “We are creating a unique and healthy style of living in Spencer Ranch, with a level of quality amenities that is really unmatched anywhere and, that contains housing that, we feel, can be sustained for a hundred years,” says founder Paul Pastore. Waterside offers full Lock-N-Leave™ services through their sister company Waterside Home Maintenance Concierge (HMC), with on-site security and a maintenance team. The residence of Spencer Ranch will enjoy a well-conceived, rich in quality neighborhood that allows for a high-quality secure maintenance free living environment. The property will be secured with various types of fencing along the perimeter and a secured gated entry and exit. This highly amenitized, healthy lifestyle community contains “multiple clusters” of housing, built around a central body of water. The community’s delivery of diversity of housing establishes a 3,000- square foot minimum home size, all with common core attributes of timeless architectural design coupled with high-quality, low-maintenance and energy- efficient homes that are finished out with best-in-class luxury-level interiors. The community is designed to encourage inhabitant interaction, promoting pedestrian mobility by bringing the homes and courtyards closer to the roadways, and by providing an internal aerobic trail and several large lakes that connect the open spaces and a tree preserve area. Ordinance 881 Page 5 of 30 Waterside has created a development that is a “WATER THEMED COMMUNITY” “WATER THEMED DEVELOPMENT: Page 83-88 of the Comprehensive Plan places the development tract in a steeper topographic setting (not the steepest) and recommends that this location is appropriate for “water related” development. Page 88 of the Comprehensive states that “additional measures other than density may be suitable for preservation of the hillside and viewshed”. Those other measures include limitations on grading (described above) and “water related” development that includes multiple water amenities. Therefore, Waterside is presenting a development design that employs water as a major component of the project…such water will be used to mitigate erosion and stabilize the grade condition. Waterside has created a development that will “LIMIT GRADING” “GRADING LIMITATIONS: Spencer Ranch is located in the “Midlands” Ecological Region of Westlake (Pg. 71 of the Comprehensive Plan). The Comp Plan requires measures be taken by any developer to limit impacts on the ground plane which promote erosion. This includes limitations on grading. Therefore, Waterside is committed to limitations on grading by allowing only that grading as is necessary to construct streets, infrastructure, development amenities, and individual home clusters. Waterside will prohibit the creation of lot pads and the use of side lot line retaining walls to create lot pads. Waterside will respect some exceptions where patios, drives, and pools are built that can be viewed as extensions of the home.” Waterside has created a development that will “RESTORE THE NATURAL MOSAIC” “RESTORATION OF THE NATURAL MOSAIC: Page 74 of the Comp Plan calls for “contextualization”. The Comp Plan states: “Contextualization, which grows from a commitment to landscape integrity is what helps to preserve the property values sustained in Westlake. It is therefore important that the plan creates mechanisms to continue the commitment to landscape integrity, not only to preserve the pastoral landscape of the Town, but to also preserve property values. In this sense, landscape integrity needs to guide the development-related considerations of the Comprehensive Plan.” Landscape Integrity is defined, in the same section, as “development that has been contextualized to fit within the natural landscape…” Therefore, Waterside will use the landscape opportunities presented by open space, defining clusters, to restore the natural mosaic in such a way that the Comp Plan’s call for “contextualization” is achieved. Therefore, Waterside will use the landscape opportunities presented by open space, defining development clusters, to restore the natural mosaic in such a way that the Comp Plan’s call for “contextualization” is achieved. This will require a considerable commitment to landscape materials and native species employed in a manner consistent with the Concept/Development Plan.” Ordinance 881 Page 6 of 30 Waterside has created a “CLUSTERED” development “CLUSTER DEVELOPMENT: The Land Use Plan section of the Comp Plan (page 159) states that “smaller lots could be compatible with this character [district] if such lots are CLUSTERED AND SURROUNDED WITH OPEN SPACE…”. Waterside is presenting a “cluster development”, Concept/Development Plan in which the “clusters” are surrounded with open space. To accomplish this in a manner consistent with the other requirements of the Comp Plan, Waterside will use the water theme element as an aspect of the open space defining the required development clusters as illustrated on the Concept/Development Plan.” LANDSCAPING Spencer Ranch will approach the total landscaping effort as one cohesive and comprehensive unit for the entire tract of land. The landscaping design will incorporate the vision of the entire tract using all aspects of the terrain, thus creating the “natural mosaic” the town prefers. Although installed in individual increments as each home is completed, the Spencer Ranch vision is to create an overlay of a full and comprehensive landscape plan that embodies the entire parcel of land and raises the standards in Westlake and is not prejudice to any one dwelling. Landscaping will encompass many aspects for the development, conceptually and physically and will be implemented in phases; a. Park Land Dedication area-outside of the community fencing b. Development infrastructure/streets; c. Individual houses The master landscape plan will include the following elements: • The establishment of a “old Growth” tree preserve at the Fisher property boundary. Establishing open space and meadows using various types, sizes and species of trees and plant material. • Weaving natural features such as bald cypress trees in and around the water system providing a more natural bank and greater complexity at the edge definitions. • A genuine effort will be made to save and protect old-growth trees. • Care will be given to how the landscaping and streets interact giving careful attention to the development of “social space” as it relates to this aspect. • Tree Mitigation: No mitigation is required for trees that lie in roadway right of ways and lakes. Landscape architect: TBD Ordinance 881 Page 7 of 30 UNIQUE AMENITIES Spencer Ranch Community Amenities: Spencer Ranch is located in a very unique setting, experiencing incredible sunsets, golf course view, lake side settings, serene high-quality lifestyle. Spencer Ranch has rolling topography, 54 high quality homesites grouped in clusters surrounded by an abundance of open space and limited fencing. Spencer Ranch will have a well-positioned high quality “statement” gate house that does not yield to neighboring communities. “The Gate House at Spencer Ranch” The gate house/sales center will be constructed on the property in the general location as shown on the Concept/Development Plan, the building (above) will have the similar architecture as the homes in Spencer Ranch. Since the gate house/sales center is the key feature to the early progress of the development and it has direct access to utilities and Pearson Ln, the developer is requesting to be allowed to submit building plans and start construction of the gate house/sales center structure within 30 days of Town approval of the concept development plan and following the normal building permit application process. Ordinance 881 Page 8 of 30 Spencer Ranch has a single entity controlling the development and home building including complete landscaping and professional construction management before during and after completion of the entire project. Project Amenities: ✓ Unique geographic location on the “edge” of the Town in a submarket ✓ Unique setting with rolling topography ✓ Dramatic western sunset views “Actual Western View from Spencer Ranch” ✓ Great golf course views ✓ Multiple water features with direct lake views ✓ Open Space approximately 45% of the development ✓ One single Westlake neighbor ✓ Privacy from commercial developments and highways ✓ Boat dock/fishing pier/pump house on the main lake ✓ Unique Landscape delivery • high quality purpose driven landscaping plan as viewed from a total neighborhood vision ✓ Pastoral street scape with two parkway drives ✓ High quality concrete streets and curb system Ordinance 881 Page 9 of 30 ✓ Enhanced street paving that is consistent with ALL home driveways ✓ Well positioned, High Quality “this is Westlake” statement gate house ✓ Well positioned, High Quality “this is Westlake” statement entry fountain and gates ✓ High quality fencing ✓ Limited internal lot fencing ✓ Limited lot grading-preserving the natural ground plain ✓ Houses built in clusters (11 or less) surrounded by open space ✓ Permanent Parkland view corridor at Pearson Ln (120’ setback) ✓ Town trail system at Pearson Ln ✓ Off street parking at each home ✓ No overnight street parking ✓ Public parking for trail head and historical marker ✓ Westlake monument signage at the southwest entry to Town ✓ Permanent tree preserve for old growth trees protecting our only Westlake neighbor and preserving old growth trees ✓ High Quality architectural designs by licensed architect ✓ High Quality home construction ✓ Single source entity controlling both the developer & home builder ✓ Single source sub-contractor base! ✓ Professional site management plan to be • Implemented during the land development and through completion of construction that clearly shows how Westlake operates differently! ✓ Debris control plan & management ✓ Material storage control plan & management ✓ Sanitary station (port-o-let) control plan & management ✓ Construction staging and parking plan & management ✓ On site access control for all construction traffic ✓ On site professional project managers ✓ On site home maintenance concierge ✓ On site lock-n-leave ✓ On site “State of the art” security ✓ Drone landing pad ✓ On site package delivery management ✓ Designated Public Art location ✓ Preservation of the Buck E King historical marker Ordinance 881 Page 10 of 30 A Community Wellness Center building is proposed and to be constructed on the property in the general location as shown on the Concept/Development Plan (locations remains in review), size TBD. The architecture will be similar to the gate house and the housing in the development. The developer will complete this facility within a timeframe not to exceed the closing of the 27th home in Spencer Ranch. The amenity center will contain the following minimum amenities: • Exercise facility • Multi use space • His & Hers restroom and changing facilities • Minimal facilities for caterers • Outdoor gathering space for events • Parking for a minimum of 10 cars In association with the Community Wellness Center, Spencer Ranch is developing plans to construct a multipurpose indoor/outdoor facility that’s fully climate controlled and will be of a size to house at a minimum one “pickle ball” court. Ordinance 881 Page 11 of 30 In addition, the multipurpose facility will have the flexibility to offer: • Basketball • Wall tennis • Volleyball • Batting cage • Golf driving net • Field hockey • Soccer • Fencing • Gymnastics • Pilates/Yoga • Cross training fitness • Indoor track • Table top games • Banquet functions • Concerts • Conference facility Community Fencing: Spencer Ranch will have a completely secure perimeter with contiguous fencing of various approved types: Perimeter fencing for the development shall be the following: • Spencer Ranch property with the immediate border of Pearson & Aspen (west & north) shall have decorative iron fencing (similar to the diagram below) that generally parallels Public streets as illustrated on the Concept/Development Plan. Decorative iron fencing with masonry columns and masonry wall sections strategically placed as determined appropriate to provide aesthetic accents, privacy, and/or shield undesirable vehicle light transmission as determined by the Developer’s Landscape Architect. Ordinance 881 Page 12 of 30 “Fence Concepts and the entry Fountain at Spencer Ranch” In addition to the above fence types, the following fence types are allowed at Spencer Ranch: • Existing fencing from neighboring properties • Wood fencing must be board on board and stained, metal post with 2x wood cap • Chain link if vinyl coated with black wind screen Fences on individual lot property lines are generally discouraged, however they may be approved by the ARB in addition to the following: a. Dog runs b. Swimming pool safety c. Privacy for internal courtyards d. Screening from neighbors Ordinance 881 Page 13 of 30 Fence Materials: Fences may be any of the following: • Masonry • Iron fences may be made of solid stock or thick wall tubular steel (sufficient thickness to not burn through when welded but no thinner than 3/32 inch) with any finials or other decorative detailing being made of solid stock and welded to the fence. • Where wood fences are used, they should be board on board, supported by vertical tubular steel supports with at least 3 2x4 stringers supporting a wood fence design with a decorative wood cap detail. The finished face of the wood fence should face to the outside of the lot, if only 1 face is finished. Wood face member of the fence should be a minimum of ¾ inches thick. All wood fences should be stained with a color approved by the ARB. • Welded tubular agriculture fences not located in a development where such a fence presents a contrast other fences of the development, and hosts and agricultural use or the fence is part of an agricultural theme is allowed. Gate Materials: • Wood with frame members measuring a minimum of 1.5 inches thick and infill planks measuring a minimum of 1.5 inches thick. • Iron gates with the frame measuring a minimum of 1.5 inches square with pickets of at least ¾ in. square with welded connections. Such fences may be made of solid stock or thick wall tubular steel (sufficient thickness to not burn through when welded but no thinner than 3/32 inch) with any finials or other decorative detailing being made of solid stock and welded to the fence construction. Ordinance 881 Page 14 of 30 Waterside has created a development that respects “OPEN LAND & UNINTERRUPTED GROUND PLANE” “OPEN LAND, UNINTERRUPTED GROUND PLANE, AND ELIMINATION OF OPAQUE FENCING (EXCEPT FOR SPECIFIC FUNCTIONAL PURPOSES): Page 159 of the Comp Plan states that “the sense of open land is more essential than lot size”. Also, it is an intent of the Pastoral Character District that “homes are sited in ways responsive to features of the lot, instead of the street.” Page 159 also states, “the overall character is one of a dominant landscape and houses arrayed within it”. Adding to this emphasis on land, page 202 of the Comp Plan states that “articulation of neighborhood edges can subdivide the ground plane with opaque walls and other hard division, which begin to suburbanize the rural landscape”. Later, on that same page it states, “open spaces are meant to be remnants of the historic rural landscape and serve as seams that bind the commercial and residential uses together…therefore, porous edges are more preferred than barrier edges”. It is clear that the Comp Plan seeks to preserve the sense of uninterrupted ground plane in the Pastoral Character District. Consequently, Waterside will provide means of defining edges (development and property fencing) that preserves the uninterrupted ground plane (as much as possible) in a way that remembers the historic rural fabric. Neighborhood definition will be transparent, not a solid barrier. Property fencing will be limited, with certain concessions to privacy needs, screening, and dog runs accommodated in ways that do not result in isolating the entire lot from the general ground plane as shown on the Concept/Development Plan.” SPENCER RANCH LAND USE PARKS AND OPEN SPACE Open space: The Westlake Comprehensive Plan and future land use plan do not show any open-space requirements for the subject property. However, per the proposed Concept/Development Plan, Waterside is providing approximately 45% Open Space and dedicating the entire Pearson frontage (approx. 3 acres) for a permanent view corridor to the Town of Westlake (the numbers below are estimates only): • Approximately 17 acres of open space are being provided. • Approximately 13 acres of Private Open Space • Approximately 3 acres of Public Open Space • Approximately 1 acres of Private Tree Preserve Area • This dedication includes a privately maintained and publicly owned/accessible linear park along Pearson Lane, and a tree preserve area near the neighboring property on Aspen Lane. • This dedication also requires any houses that side to Pearson Ln be no closer than 120 feet from Pearson Ln. Ordinance 881 Page 15 of 30 “View Shed Corridors at Spencer Ranch” Parkland dedication: Parkland dedication is required based on 1-acre of parkland for every 30 residences for a total of 2.26 acres. The Concept/Development Plan shows approximately 3 acres to be dedicated with the platting of this property. The parkland will be privately maintained by the HOA but will be publicly accessible. Community Trails: Spencer Ranch will contain an internal trail system and connect with the public system at access-controlled locations. The trail system and the aerobic programs are being studied now by Waterside and will be submitted with the landscape plan. Ordinance 881 Page 16 of 30 Waterside has created a development that respects “PUBLIC OPEN SPACE & RURAL LANDSCAPE PRESERVATION” “PUBLIC OPEN SPACE/ RURAL LANDSCAPE PRESERVATION: Page 193 of the Comp Plan describes Rural Ranch Landscape (a type of Open Space recommended for the Pastoral Character Zone) as places “where residential development may move to preserve some aspect of the rural heritage”. In the Urban Design Structure portion of the Comp Plan states that “open space edges are meant to be remnants of the historic rural landscape…” Clearly, the Comp Plan is seeking to find opportunities for preservation of the rural heritage of Westlake in the creation of open space. Spencer Ranch contains a water feature that remains from earlier days (likely a ranch stock pond). Therefore, Waterside will take measures to include portions of this water body in a usable open space that can fulfill the Comp Plan call for rural landscape preservation.” Public Art: Waterside has a strong desire to support the arts in Westlake and will commit the following to a Public Art Competition: a. A competition site of a size to be determined, to place the art at Spencer Ranch in the Public Open Space b. A donation by Waterside of an amount to be determined will be outlined in the Economic Development Agreement. Ordinance 881 Page 17 of 30 SPECIAL AREAS: Located at the Entrance to Spencer Ranch: Spencer Ranch will have a public parking lot for visitors wishing to visit the Town of Westlake Buck King historical site. Spencer Ranch will also have a Town Trail head tie in and build a walking tail at the Pearson Ln frontage of the Spencer Ranch limits. Spencer Ranch will dedicate an area of land in the general area indicated below, for the Town of Westlake to build a monument sign. Ordinance 881 Page 18 of 30 STREETS, PARKING, SIDEWALKS AND TRAILS Streets: All community streets will be privately owned and maintained. They will be constructed with mountable rolling curbs with enhanced finish locations as shown on the Concept / Development plan. Homes in Spencer Ranch will use the same material for all driveways as the street enhancement materials. Streetlights: Streetlights will be located at corners and intersections. Light fixtures will be low- pedestal-type fixtures that comply with Town ordinances and dark-sky design guidelines. Sidewalks: There are no typical concrete sidewalks in the development, walking trails (natural material) will be located along each side of the esplanade water feature, serving pedestrians on both sides of the divided main roadway and throughout the development. Trail systems: An internal trail system and or streets will facilitate pedestrian mobility within the community. The public trail system will be extended from Aspen Lane south to the Town border on the Spencer Ranch property. Water: Town of Westlake water system will connect to the development at two separate locations to create a looped-system. Sewer: The project engineer has met with town staff and performed the necessary calculations to determine that the public water and sewer systems can accommodate the additional loads anticipated to be generated by the proposed development and there are multiple access points available for connection to the public systems. Storm-water: Combination of natural grassed swales, detention ponds, and reflecting pools, connecting to the existing public street storm-water system. Duct bank: As required by Town ordinances, the developer will install a duct bank system throughout the subdivision. Each home will be connected to the duct bank system prior to the Certificate of Occupancy approval. Ordinance 881 Page 19 of 30 LOT SPECIFICATIONS Density & Lot Size: Spencer Ranch will be a unique community of high-quality housing on smaller maintenance free lots: • 54 uniquely clustered home sites The Developer/Builder are requesting the flexibility to adjust lot lines as home building permits are submitted allowing homes to be custom tailored to each site. Housing type, size, number of floors and the homeowner’s desire for larger or smaller footprints will impact lot size and configuration, and ultimately the total number of lots to be built upon. Minimum Lot Widths at Building Line (Block): All Home sites 70 feet Waterside has created a development that contains an “EQUIVALENT LOT DENSITY” in conformance with the Westlake Comprehensive Plan. “DENSITY: Page 159 of the Comprehensive Plan states, "smaller lots could be compatible with this character district if such lots are clustered and surrounded with open space so that the gross density remains one dwelling unit per acre". The text immediately following that statement further states, "the sense of open land is more important than lot size". The second statement offers a qualifier to the application of the first statement, suggesting that density equivalent to 1 unit per gross acre is desirable...if...the sense of open land is enhanced. To accomplish this, Waterside has limited the plate square footage of development to a total square footage that does not exceed the "gross" plate square footage of development at 1 unit per acre. We call this an "Equivalent Density" which is expressed in a more open landscape, a landscape where open space dominates and the expression of lot lines in the form of property line fences is discouraged. This fulfills the vision of the Comprehensive Plan. The unifying matrix of open land that defines the cluster development of Waterside prevents confusion with densities more typical of other Character Districts. Therefore, Waterside commits to a density that is equivalent to the developed density of 1 unit per acre and a total number of lots not exceeding 1.42 lots per acre; which Waterside views as necessary to achieve ALL other visions of the Comp Plan, as they are applicable to this site and specified in this application for Spencer Ranch.” Ordinance 881 Page 20 of 30 HOME / LOT SPECIFICATIONS Home Pricing: The diversity of housing orchestrated in “Cluster Zones” are projected to have an initial sales price starting at $1,795,000.00 The preeminent mission of the Westlake Comprehensive Plan is the preservation of values in Westlake. Being located in the Midlands Pastoral region of Westlake and in a submarket that sits on the edge of the Westlake Town limits, Spencer Ranch creates a high value and distinct entry point and a clear separation from surrounding markets. Spencer Ranch fills a void in the Westlake housing market with its high value product mix and will establish a barrier to prevent value degradation moving into Westlake from lower price point markets. NEW HOME DEMAND SUMMARY: Starting on Page 271 of the Comprehensive Plan through Page 275 clearly details the objectives for developers and builders to follow to satisfy the future needs in Westlake. Spencer Ranch may contain both one and two-story homes Spencer Ranch contain ALL single family detached housing Spencer Ranch Estate housing averaging 5,000 square feet Ordinance 881 Page 21 of 30 Spencer Ranch Villa Housing averaging 4,000 square feet Spencer Ranch Golf Villa Housing averaging 5,000 square feet (viewed from the Vaquero Golf Course) Ordinance 881 Page 22 of 30 Housing Type: Spencer Ranch will have multiple housing offerings that can ranges in size as follows: • South Side Villas o from 3,500 sqft • South Side “water front” Villas o from 4,000 sqft • Golf Course Villas o from 5,000 sqft • Ridge View Estates o from 5,000 • Meadows Villas o From 4,500 sqft The following is a guideline for the proposed housing types in the development. Given the desire for lot size flexibility to accommodate buyers desires we have listed the specific information below regarding lot and housing types, final details are yet to be determined. 1. All single-family homes (except the Golf Villas bordering Vaquero Golf Course) a. Housing Type: Single Family Detached b. Minimum Lot Size: 1,000 square feet c. Minimum Lot Width at Building Line: 70 feet d. Front Setback: 10 feet; or 5 feet (2) where courtyards/motor courts are provided e. Side Setbacks: 0 feet f. Rear Setback: 25 feet, or 0 feet abutting water features and/or open space. Minimum Unit Size: 3,000 square feet g. Maximum Height: 35 feet from finished floor to the mid-point of the span of the highest roof pitch. 2. Golf Course Villas Housing Type: Single Family Detached a. Minimum Lot Size: 1,000 square feet b. Minimum Lot Width at Building Line: 70 feet c. Front Setback: 10 feet; or 5 feet (2) for side facing garages, courtyards and accessory structures not utilized for storage. d. Side Setbacks: 0 feet e. Rear Setback: Per diagram below and no less than 30 feet f. Minimum Unit Size: 3,000 square feet g. Maximum Height: Per diagram below: Ordinance 881 Page 23 of 30 Building Setbacks (in feet): Front Rear (1) Sides(1) All single-family 10 (2) 25 (3) (4) 0 (1) When backing or siding to Aspen Lane, there shall be a 25-foot minimum setback. (2) Garages, Casitas or bathrooms, stairs or elevators -not contiguous to the main living footage, courtyards, and accessory structures may encroach up to 5 feet into the required front yard setback. (3) When abutting an open space or water feature, no setback is required. (4) When backing to Vaquero Golf Course setback should follow the diagram below including a maximum total building height: “Golf Villa Height Diagram” Ordinance 881 Page 24 of 30 “Development Set Backs Diagram for Spencer Ranch” Waterside has created a development that creates a “DIVERSIFICATION OF HOUSING” “DIVERSIFICATION OF HIGHER END HOUSING OPTIONS THROUGH CREATION OF A UNIQUELY SOCIAL LIFESTYLE COMMUNITY: The Housing Plan component of the Comp Plan (pages 261-272) stresses the need for “life style” offerings to accompany housing options for other high-end markets. These projects, which diversify the housing offerings more typical of Westlake are needed to attract younger buyers, meet future housing needs of an aging population, and mitigate value encroachment (typically approaching Westlake from Southlake and Keller). The unique location of Spencer Ranch at the edge of the Town, abutting the shared boundary line with Keller, makes it particularly important to accomplishing this objective. Therefore, Waterside has created a “lifestyle” product which is more than simply smaller lots. Spencer Ranch presents a true housing/living option that will indeed capture a high-end buyer at the edge of the Westlake submarket (abutting Keller) …thereby affirming the continued integrity of that submarket. Key to the lifestyle/ housing product is the proposed social use of the street space and the creation of a true promenade, in the manner of distinctive/ historic developments such as Riverside, Chicago (1879). Waterside commits to create a significant central promenade with amenities that enhance pedestrian use of the entire space and promotes pedestrian pleasure in that use, as shown on the Concept/Development Plan.” Ordinance 881 Page 25 of 30 Housing: Minimum Size: The minimum size of a residence shall be 3,000 square feet. Massing: Massing will vary by housing type. Great attention will be given to achieving horizontal and vertical articulation within individual structures and/or within groups of structures, so as to avoid the uniform massing and alignment found in typical suburban subdivisions. Building Height: Because of the potential for lower-pitched roofs with the chosen architectural style, smaller footprints of clustered homes, and respecting the natural terrain in the development with terrain absorption within the foundations of each house, we are requesting a maximum building height be measured from the top of the foundation for all building sites and as indicated for each home type in the development as outlined in this document. This allows the architectural aspect to create a rolling fabric of houses not restricted to the typical cookie-cutter guidelines. Garages/Parking: All homes shall have a minimum of FOUR spaces for off street auto parking in any configuration but must have a minimum of TWO enclosed parking spaces and TWO additional off-street parking spaces. Garage doors shall be made of sectional wood or be wood clad. Garage doors shall be recessed a minimum of (8) eight inches (nominal) from the plane of the adjacent wall. Front facing garage doors are allowed if located further back on the lot than the side -facing garage portion and are in a motor court setting. Roofs: Roofing materials facing the weather shall be of high and enduring quality. Permitted roof materials include: a. High quality clay or concrete tile (with a thickness similar to clay). (Acceptable styles and colors to be detailed in the Spencer Ranch Design Guidelines document) b. Metal: Traditional standing seam with standing folded and soldered seams. Allowed for porches and architectural features only. (Acceptable styles and colors to be detailed in the Spencer Ranch Design Guidelines document) c. Flat or low-pitched roofing that is 2:12 pitch or less may be of any code approved material. Ordinance 881 Page 26 of 30 Windows: Orientation of all windows at Spencer Ranch will follow the Town’s Building Quality Manual section; Standard 3.10: Openings. Spencer Ranch will allow the following windows and doors providing they are of high quality and comply with the Spencer Ranch Building Guidelines: a. High quality wood windows and doors with metal clad exteriors and minimum glazing with Cardinal 366 insulated glass or equal. b. High quality iron windows and doors and minimum glazing with Cardinal 366 insulated glass or equal. Exterior walls: Exterior walls shall be 80 percent masonry as required for all Residential Districts by the Code of Ordinances. Exterior walls shall have horizontal an d vertical articulation or architectural delineation on all elevations. Exterior lighting: All exterior lighting shall be subdued, indirect and comply with town ordinances, as well as follow “dark-sky” design guidelines. QUALITY CONSTRUCTION INTENT The intent of Waterside’s submittal, to create a community of clustered high- quality homes on smaller low-maintenance lots, to provide the “diversity of housing types” that the Comprehensive Plan states is needed within the Town of Westlake. This new proposed PD District will contain development standards that are intended to guide design and construction of the high-quality homes within the new PD District to be equal to or exceed the current level of quality of construction and finish-out as that found in the best of the larger estate homes that currently exist in the Town of Westlake. This new PD contains language that references: • An Architectural Review Board (ARB) • Spencer Ranch Building Guidelines • Town of Westlake Building Quality Manual Ordinance 881 Page 27 of 30 It is the intent of this new PD to use these documents, as approved by the Town. The ARB shall assure compliance with all architectural standards and may not change the documents so as to cause a change in permittable architectural style without the Town Managers prior approval. The ARB shall approve all plan submittals prior to them being submitted to the Town for permitting. The Town still has authority to enforce Town of Westlake ordinances and the Building Quality Manual. Waterside has created a development that incorporates the Town’s “BUILDING QUALITY MANUAL” “INCORPORATION OF THE TOWN’S BUILDING QUALITY MANUAL: The Town has, in no uncertain terms, made a statement as to its expectations for the future quality of its built fabric in the recently adopted Building Quality Manual. Therefore, Waterside will adopt Westlake’s Building Quality manual as part of the Spencer Ranch Design Guidelines.” COMMUNITY ASSOCIATION & DESIGN CONTROL Homeowners Association: The community will be governed by a to-be-established Homeowners Association (HOA) that will be responsible for the common area maintenance, private street maintenance, and enforcing the design guidelines for the community. Design Guidelines: A detailed design guideline document is being prepared specifically for Spencer Ranch. The Spencer Ranch design guideline document will clearly detail design and building guidelines specific to Spencer Ranch and will also -incorporate the Town of Westlake’s Building Quality Manual into its architectural standards. Design enforcement will be performed by the ARB which will include a licensed Architect as a required member. The Town will assure compliance with the all Town Ordinances. Architectural Design: At Spencer Ranch, The Developer/Builder will employ 360-degree architecture when designing each residential product within the development. The open/urban beauty of the development drives this design and building practice. Ordinance 881 Page 28 of 30 In this practice, full consideration is given to every building elevation and every roof plane of each structure during the design process. The intent is to ensure delivery of aesthetically pleasing architectural features as viewed from all parts of the development, and not create a distinct and determinable hierarchy between major and minor elevations. Waterside will reduce the visual impact of all exterior mechanical elements. Spencer Ranch requires all building plans submitted be done by a Licensed Architect. Architectural Review: An Architectural Review Board (ARB) will be established through the HOA/declarant that has approval authority over the house quality of design and construction of all homes and additions. The ARB will be charged to ensure that the Building Guidelines of Spencer Ranch and the included Westlake Building Quality Manual provisions, are strictly followed. The Conditions, Covenants, and Restrictions will establish the required makeup of the ARB which will include a licensed Architect as a required member. Waterside has created a development that requires “LICENSED ARCHITECTS” “LICENSED ARCHITECT PROVISION OF PLANS THAT INCLUDE EXTERIOR DETAILS NECESSARY TO EXPLAIN ALL FEATURES OF CONSTRUCTION TO THE BUILDING TRADES: Much of the home designs built in Westlake, Southlake, Trophy Club, and Keller are done by “Building Designers” instead of a Licensed Architect. The plan sets produced by this means of production are very basic, leaving much of what is finally seen from the street, in the hands of a tradesman who may, or may not, have sufficient background to execute an outcome consistent with the design intent or the particular style represented by the “designer’s” drawings. Continued over time, this will ultimately weaken the distinctiveness of Westlake. Therefore, Waterside commits to have all building plans prepared by a Licensed Architect and that plan sets prepared by this architect will contain sufficient details to fully explain the exterior construction to a competent contractor/tradesperson.” Waterside has contracted with C.A. Nelson Architecture Group to serve as the sole l icensed architect for the entire project. Clay Nelson (Principal) will also serve on the ARB. Ordinance 881 Page 29 of 30 LIFESTYLE COMMUNITY WITH MAINTENANCE FREE LIVING Waterside Home Maintenance Concierge provides a “World Class” level of service to its clients that is not offered in the marketplace. We strive to exceed all expectations of a Concierge Maintenance service by preprogramming maintenance and anticipating our client’s needs. Waterside’s Home Maintenance Concierge Service will provide its full complement of services to the Spencer Ranch community and manage all aspects for the community services with it’s on site personnel. The service creates “One Point of Contact” for our clients and provides them with a trusted advisor so they can live a maintenance free lifestyle! Waterside also offers our exclusive Lock – N – Leave service creating worry free travel! The service platform that Waterside HMC offers to its clients include some of the following: • Fully managed property maintenance services • Lock-N-Leave service year round • Quarterly 110point maintenance checks • Monthly 20point maintenance checks • 24/7 Emergency Service Response • Single point of contact • Preventative maintenance service and checks on all equipment • Complete supervision of any additional work completed at the house • Additional Boutique services available (window cleaning, power washing, etc...) • Vetted Preferred Contractor used for any and all work • Quality craftsmanship and industry knowledge Ordinance 881 Page 30 of 30 CONSTRUCTION SITE MANAGEMENT Debris: All construction debris from all construction sites within the development will be contained in a central location. The location will be enclosed with temporary wood fencing, or chain-link fencing with screening material attached, as to not be directly visible from any street. Contractors will be required to contain debris daily and/or transport to the containment site. Soil: All construction spoils or natural soil moved from all construction sites within the development will be stored in a designated location(s) that will be enclosed by proper silt fencing and/or other erosion control measures as needed. Documentation: All town and construction documentation, including but not limited to building permits, inspection reports, geotechnical studies and building plans, will be located on-site in the construction offices of the developer/builder with full access granted to town building officials. Sanitary Stations: Multiple sanitary stations (port-o-let) will be located within the community in close proximity to all construction sites. The stations will be screened from the street frontage, either behind a 6-foot-high screening fence or with temporary mock-ups built from materials similar to the materials used in the construction of the homes. The mock-ups will contain three walls and a roof section hiding the stations from the street view. Sanitary stations will be cleaned on a regular schedule. Material Storage: Material storage will be located within a designated area(s) that will be screened with fencing TBD. Construction Parking: Contractors will be allowed to park only in designated parking areas and on a single side of the roadway near the construction site, but not adjacent to any occupied dwellings. Contractors will be required to park in designated parking areas only for weekend work after residents occupy the development. end Ordinance 881 Page 1 of 2 Westlake Town Council TYPE OF ACTION Regular Meeting - Action Item Westlake Town Council Meeting Monday, March 25, 2019 TOPIC: Consideration of an amendment to Chapter 46, Article VI, Tobacco Products, Smoking and E-Cigarettes, prohibiting smoking and vaping within the Town of Westlake. STAFF CONTACT: Jarrod Greenwood, Public Works Director Kirk McDaniel, Management Intern Strategic Alignment Vision, Value, Mission Perspective Strategic Theme & Results Outcome Objective Mission: Westlake is a unique community blending preservation of our natural environment and viewscapes, while serving our residents and businesess with superior municipal and academic services that are accessible, efficient, cost- effective, & transparent. Citizen, Student & Stakeholder Natural Oasis - Preserve & Maintain a Perfect Blend of the Community's Natural Beauty Encourage Westlake's Unique Sense of Place Strategic Initiative Outside the Scope of Identified Strategic Initiatives Time Line - Start Date: May 21, 2018 Completion Date: February 25, 2019 Funding Amount: N/A Status - Not Funded Source - N/A EXECUTIVE SUMMARY (INCLUDING APPLICABLE ORGANIZATIONAL HISTORY) In 2015, Town Council passed an Ordinance approving a limited smoking ban in trails, right of ways and a few other specific areas. Page 2 of 2 Based on Council feedback at the February 25, 2019 Town Council meeting, Town Staff is currently evaluating methods to provide an exemption to allow smoking for a current restaurant and hotel within the Town of Westlake. RECOMMENDATION Staff recommends continuing this discussion until the May 20th Town Council meeting to allow staff time to determine the appropriate options that will meet Council objectives. ATTACHMENTS None EXECUTIVE SESSION The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.071. Consultation with Attorney (1) when the governmental body seeks the advice of its attorney about: (A) pending or contemplated litigation: Builder Recovery Services, LLC vs. Town of Westlake b. Section 551.072 to deliberate the purchase, exchange, lease, or value of real property regarding the conservation area at The Knolls at Solana c. Section 551.071 (2) Consultation 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: Trophy Club Municipal District No. 1 d. Section 551.087 Deliberation Regarding Economic Development Negotiations (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1) for the following: - BRE Solana - Waterside Land Company LLC Town Council Item # 7 – Executive Session Town Council Item # 8 – Reconvene Council Meeting NECESSARY ACTION a. Section 551.071. Consultation with Attorney (1) when the governmental body seeks the advice of its attorney about: (A) pending or contemplated litigation: Builder Recovery Services, LLC vs. Town of Westlake b. Section 551.072 to deliberate the purchase, exchange, lease, or value of real property regarding the conservation area at The Knolls at Solana c. Section 551.071 (2) Consultation 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: Trophy Club Municipal District No. 1 d. Section 551.087 Deliberation Regarding Economic Development Negotiations (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1) for the following: - BRE Solana - Waterside Land Company LLC Town Council Item #9 – Necessary Action FUTURE AGENDA ITEMS: Any Council member may request at a workshop and / or Council meeting, under “Future Agenda Item Requests”, an agenda item for a future Council meeting. The Council Member making the request will contact the Town Manager with the requested item and the Town Manager will list it on the agenda. At the meeting, the requesting Council Member will explain the item, the need for Council discussion of the item, the item’s relationship to the Council’s strategic priorities, and the amount of estimated staff time necessary to prepare for Council discussion. If the requesting Council Member receives a second, the Town Manager will place the item on the Council agenda calendar allowing for adequate time for staff preparation on the agenda item. - None Town Council Item # 10 – Future Agenda Items Town Council Item # 11 – Adjournment Regular Session