|(a) Letter of intent. If a local agency decides to establish a new community center, then the local agency submits a letter of intent to DADS and DSHS outlining the proposed new center's region, governing structure, and other information pertinent to the formation of the proposed new center. (1) If the local agency submitting the letter of intent is not a county or counties, the letter must be accompanied by a letter of endorsement from the appropriate county judge or judges. (2) DADS and DSHS review the letter of intent using the following criteria: (A) the benefits of establishing a new center over affiliation with an existing center and the establishment of a new center is consistent with DADS's and DSHS's mission for the development of community services in Texas; (B) the population of the region of the proposed new center is at least 200,000 or large enough to support a center; (C) a comprehensive array of mental health and mental retardation services will be provided; (D) the extent of the local contribution supports the intent; and (E) the efficient provision of services is financially viable. (3) DADS and DSHS determine whether the letter of intent meets the criteria described in paragraph (2) of this section. (b) Appointment of board of trustees. If the local agency receives notice from DADS and DSHS that the letter of intent meets the criteria described in subsection (a)(2) of this section, the local agency prescribes the criteria and procedures for the appointment of members of a board of trustees as described in Health and Safety Code, §534.002 or §534.003, and §534.004, §534.005, and §534.0065. The local agency prescribes and makes available for public review the elements listed in Health and Safety Code, §534.004(a). If more than one local agency is involved, the local agencies shall enter into a contract of interlocal agreement that states the number of board members and the group from which the members are chosen, as provided in Health and Safety Code, §534.003(c). (c) Initial plan. (1) Submission. The board of trustees develops and submits to DADS and DSHS an initial plan to provide effective mental health and mental retardation services to the residents of the proposed region. The board of trustees shall appoint a mental health planning advisory council and a mental retardation planning advisory council to assist in developing the initial plan. A mental health planning advisory council must have at least 50 percent representation of persons or family members of persons who have received or are receiving mental health services. A mental retardation planning advisory council must have at least 50 percent representation of persons or family members of persons who have received or are receiving mental retardation services. A combined mental health and mental retardation planning advisory council shall have at least 50 percent representation of persons or family members of persons who have received or are receiving mental health or mental retardation services with an equal number of representatives for mental health services and mental retardation services. The board of trustees shall also seek input through a public process (e.g., public hearings, focus groups, town meetings) from the residents in the proposed region regarding local needs and priorities. The initial plan must include the following elements: (A) a comprehensive service description, which includes: (i) a statement of the mission, vision, values, and principles which establish the foundation of the proposed community center's local service delivery system; (ii) a definition of all populations to be served; (iii) a description of relevant internal and external assessments and evaluations for the local strategic planning process; (iv) a statement of local service needs and priorities; (v) identified gaps in services and supports in the local service delivery system; (vi) a description of existing local mental health and mental retardation resources and planned resource development activities; (vii) a statement of management needs and priorities to support an effective and efficient local service delivery system; and (viii) objectives, strategies, and outcomes; (B) a community center plan in a format required by DADS and DSHS available at www.dads.state.tx.us; and (C) a prospectus, which describes: (i) any proposed transfer of funds, assets, liabilities, personnel, and consumer and administrative records and information from a facility or existing community center and the time frames for transfer; (ii) other available funds; (iii) the arrangements for uninterrupted delivery of services; and (iv) the impact, and resolution if warranted, of current contractual obligations. (2) Review and approval. (A) DADS and DSHS review the initial plan. (B) If DADS and DSHS approve the initial plan, DADS and DSHS issue a certificate of recognition as a community center.