CITY TO REQUIRE PROTECTION
Council follows suit of other cities; plans ordinance
By Lori Mellinger Bullard Banner News

After tabling the item at last week's regular meeting, After tabling the item at last week's regular meeting, council members voted to enact and ordinance requiring developers -- both in the city limits and the extraterritorial jurisdiction -- to put up performance bonds.

It was Mayor Pro Tem A.W. Hines, a developer himself, who initially proposed the ordinance.

He stressed that his business would be affected as much as anyone's.

And while two local developers were initially unhappy, both the city and a municipal government consultant - said it's the way to go.

The two developers whose final plats were before the council at Monday's meeting - as a "way to keep harmony and peace" - will not have to put up bonds during their first phase of work, Hines said.

"I sold $1 million worth of lots at Pecan Valley before any work was done," he said. "What if I ended up in bankruptcy court?"

A consultant agreed that it's not only reasonable - it's almost imperative.

"It's perfectly reasonable," said J. Mark Carpenter, with the Matrix Consulting Group.

The company works nationwide and exclusively consulting with local and state governments on myriad issues including infrastructure.

"It goes a long way to protect a city, especially if the city could annex that property. And all well-managed cities do it," he said.

Carpenter, who works out of Arlington, has been consulting local governments for more than 17 years.

"The city could see some liability in this if a developer skips town or goes bankrupt," Carpenter said. "By required a performance or surety bond the buyer is protected - as well as the city - if the developer goes belly up."

The city and individual council members did their own research and came to the same conclusion.

"The city has legal liability - especially if the council approves the final plat," said City Manager Larry Morgan, after speaking to several other cities, the Texas Municipal League and a Tyler attorney who has written these same ordinances for other cities.

Hines' contention is that both the city and its citizens are protected.

"Even if we weren't liable, it could still hurt both current and prospective citizens," Hines said. "It's good for the citizens of Bullard."

A performance bond is - in essence - an insurance policy to both the city and the land buyer.

It insures the performance of the contract and payment of materials and labor by the contractor to all subcontractors and material suppliers, and is issued by an insurance company to guarantee satisfactory completion of a project.

Hines believes with the development boom, there's a chance someone could get hurt.

"We are playing Russian Roulette if we don't have a letter of credit from these developers," he said. "Every other city I develop in requires it of me, and Bullard should require it from all of us."

Mayor Connie Vaughan, at the regular meeting, said the city couldn't require a bond in its ETJ, but according to the City of Tyler, it enacted an ordinance in 2003 to do just that.

The biggest contention was whether two developers - asking the council for approvals on their final plats - would be subject to the ordinance.

The value of the developers' projects is about $500,000 to $1 million right now.

The mayor tried to circumvent the process, putting these items to vote before the new ordinance was discussed, but the council - in a straw voted - overruled him.

The actual vote on the ordinance was delayed until the special Monday meeting because Hines wanted the wording of the ordinance changed.

"This is something we have to be specific about," Hines said. "I know that the city has to make unpopular decisions - in some minds - but what we are trying to do it protect the city overall and the citizens above all."

Before the ordinance goes into effect, there will be a public hearing.

Council members voted unanimously to approve the measure to begin a subdivision amendment to cover and guarantee infrastructure before approving any preliminary plats. The ordinance would call for a bond that covered the work for anywhere from one to two years after completion.

Developers could - if they so choose - put in their own infrastructure. If they choose this route, they would not be able to sell lots until the infrastructure is in place.

At last week's meeting, council members voted to raise the trash service collection fee, due to an increase from the contracting company.

Allied Waste upped both its regular charge and fuel charge to the city, so residents can expect their trash removal bills to increase a little over $1 - to the rate of $10.30 a month.

"We have no choice on this," councilman Rodger Johnson said.

The council filled the seat left vacant by Jimmy Clark - who moved out of the city limits - with Bullard resident Mark Anderson.

Anderson, who has only lived in Bullard 15 months, has plenty of experience to bring to the board.

He moved to Bullard from Tenaha where he served as a councilman for three years and on the school board for seven years.

"I guess I'm just civic minded," Anderson said. "And I would be glad to serve if you

would like me to."

Anderson is a broker who

is affiliated with Coldwell Banker at Lake Palestine.

The council unanimously voted to appoint him.

"His knowledge as a broker and of real estate is exactly what we need," said councilwoman Pam Frederick.

In other business, the council:

! approved a measure for cost sharing in water line improvements for Moseley Addition with Baker Realty Group.

! Heard Bullard Police Chief Garry Don Lewis' annual racial profiling report.

! Voted to begin drilling a well at Peach Tree Golf Course. Dan Hurst and his partners, who own the course, gave the city an easement to drill the well.

! approved a new holiday schedule for city hall employees.