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01-12-2010 Agenda SCHERTZ CITY COUNCIL REGULAR SESSION MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 AGENDA TUESDAY, JANUARY 12, 2010 AT 6:30 P.M. REGULAR SESSION Call to Order Invocation and Pledges of Allegiance to the Flags of the United States and State of Texas. Hearing of Residents This time is set-aside for any person who wishes to address the City Council. Each person should fill out the speaker?s register prior to the meeting. Presentations should be limited to no more than 5 minutes. Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and/or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered. Discussion and/or Action Items Ordinance No. 10-B-03 ? 1.Discussion and consideration and/or action approving an ordinance by the City Council of the City of Schertz, Texas authorizing the issuance of ?City of Schertz, Texas Tax Notes, Series 2010?, levying an annual ad valorem tax, within the limitations prescribed by law, for the payment of the obligations; prescribing the form, terms, conditions, and resolving other matters incident and related to the issuance, sale, and delivery of the obligations; authorizing the execution of a paying agent/registrar agreement and a purchase and investment letter; complying with the requirements of the letter of representations previously executed with the depository trust company; and providing an effective date. (M. Mcliney/J. First and Final Reading Bierschwale/D. Wait) Minutes 2.- Consideration and/or action regarding the approval of the minutes of the Regular Meeting of January 5, 2010. Ordinance No. 10-A-01 3.? Consideration and/or action approving an ordinance relating to the annexation of approximately 496.59 +/- acres, being approximately 310.04 +/- acres located West of Lost Meadows Subdivision and approximately ðïóïîóîðïð ݱ«²½·´ ß¹»²¼¿ Final Reading 186.55 +/- acres known as Crescent Bend Park and related matters. (M. Sanchez) Ordinance No. 10-F-02 4.? Consideration and/or action authorizing an amendment to City Ordinance 07-F-07 as amended, relating to the Franchise of Cibolo Waste Incorporated, DBA Bexar Waste Inc., for Municipal Solid Waste Collection and disposal relating to temporary and permanent roll-off containers, repealing all ordinances or parts of ordinances in conflict with this Ordinance; and approving an Final Reading effective date. (M. Sanchez) RFQ #09-PK-50-A-03 - Energy Efficiency, Conservation and Sustainability 5. Block Grant Energy Performance Contracting ? Consideration and/or action accepting a proposal byMcKinstry Essention Inc.,for energy auditing and evaluation services. (G. Logan) First Check Background Services Agreement 6.? Consideration and/or action awarding a contract to First Check on pre-employment background checks. (M. Spain/D. Dykes) EXECUTIVE SESSION Called under Section 551.071 Texas Government Code Litigation, pending litigation; Section 551.072 Texas Government Code - Deliberation regarding the purchase, exchange, sale, lease, or value of real property Section 551.087 Deliberation regarding Economic Development Negotiations. RECONVENE TO REGULAR SESSION 7. Take any actiondeemed necessary as a result of the Executive Session. Requests and Announcements 8. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. 9. Requests by Mayor and Councilmembers to City Manager and Staff for information. 10. Announcements by Mayor and Councilmembers City and community events attended and to be attended City Council Committee and Liaison Assignments (see assignments below) Continuing education events attended and to be attended Recognition of actions by City employees Recognition of actions by community volunteers Upcoming City Council agenda items 11. Announcements by City Manager Recognition of City employee actions ðïóïîóîðïð Ý·¬§ ݱ«²½·´ ß¹»²¼¿Ð¿¹»ó î ó New Departmental initiatives Adjournment CERTIFICATION  I, BRENDA DENNIS, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 7th DAY OF JANUARY, 2010 AT 12:00 P.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE. ûËØÏÙÜùØÏÏÔÊ  BRENDA DENNIS, TRMC, CMC CITY SECRETARY I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON _____DAY OF _______________, 2010. ____________________________Title:__________________________ This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services please call 619-1030 at least 24 hours in advance of meeting. COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS Mayor BaldwinTBA Interview Board for Boards and Commissions Investment Advisory Committee Investment Advisory Committee Audit Committee ASA Commuter Rail District Board Interview Board for Boards and Commissions AACOG Advisory Committee AACOG Economic Development TML Municipal Revenue & Taxation Committee Councilmember FowlerCouncilmember Carpenter Interview Board for Boards and Commissions TIRZ II Board Hal Baldwin Scholarship Committee Mayor Pro- Tem ScagliolaCouncilmember Trayhan Animal Control Advisory Committee Audit Committee Interview Board for Boards and Commissions Hal Baldwin Scholarship Committee ðïóïîóîðïð Ý·¬§ ݱ«²½·´ ß¹»²¼¿Ð¿¹»ó í ó Agenda No. 1 CITY COUNCIL MEMORANDUM City Council Meeting: January 12, 2009 Department: Administration/EMS Subject: Ordinance No. 10-B-03 ? Issuance of Tax Notes, Series 2010, Levying an annual Ad Valorem Tax, within the limitations prescribed by law, for the payment of the obligations, issuance, sale and delivery of the obligations. BACKGROUND The City is authorized is to issue tax anticipation notes to pay contractual obligations incurred or to be incurred for the construction of any public works, for the purchase of materials, supplies, equipment, machinery, buildings, lands, and rights-of-way for the Issuer?s authorized needs and purposes, and for professional services, including services provided by tax appraisal engineers, engineers, architects, attorneys, auditors, mapmakers, financial advisors, and fiscal agents. The proposed $310,000 of Notes will fund the purchase of a new ambulance, apparatus and other EMS equipment. The Notes, which will be purchased by Schertz Bank & Trust, will mature in each of the years and in the amounts and bear interest at the rates per annum in accordance with the following schedule: Years of Principal Interest Stated MaturityAmounts ($)Rates (%) 2010 65,000 1.50 2011 80,000 1.80 2012 80,000 2.25 2013 85,000 2.60 Interest on the Notes will be payable on February 1 and August 1 in each year, commencing August 1, 2010. The Notes are not subject to redemption before their stated maturity. FISCAL IMPACT Principal payments: $310,000.00 Interest payments: $ 14,828.96 Total $324,828.96 City Council Memorandum Page 2 RECOMMENDATION Staff recommends Council approval first and final reading of Ordinance No. 10-B-03 (exempt from Charter requirement of two readings by Texas Government Code Section 1201.028). ATTACHMENT Ordinance No. 10-B-03 Debt Service Schedule DRAFT 12/31/09 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE ISSUANCE OF ?CITY OF SCHERTZ, TEXAS TAX NOTES, SERIES 2010?, LEVYING AN ANNUAL AD VALOREM TAX, WITHIN THE LIMITATIONS PRESCRIBED BY LAW, FOR THE PAYMENT OF THE OBLIGATIONS; PRESCRIBING THE FORM, TERMS, CONDITIONS, AND RESOLVING OTHER MATTERS INCIDENT AND RELATED TO THE ISSUANCE, SALE, AND DELIVERY OF THE OBLIGATIONS; AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT AND A PURCHASE AND INVESTMENT LETTER; COMPLYING WITH THE REQUIREMENTS OF THE LETTER OF REPRESENTATIONS PREVIOUSLY EXECUTED WITH THE DEPOSITORY TRUST COMPANY; AND PROVIDING AN EFFECTIVE DATE WHEREAS, pursuant to the provisions of Chapter 1431, as amended, Texas Government Code (the Act), the City Council (the Governing Body) of the City of Schertz, Texas (the Issuer) is authorized and empowered to issue anticipation notes to pay contractual obligations incurred or to be incurred for the construction of any public works, for the purchase of materials, supplies, equipment, machinery, buildings, lands, and rights-of-way for the Issuer?s authorized needs and purposes, and for professional services, including services provided by tax appraisal engineers, engineers, architects, attorneys, auditors, mapmakers, financial advisors, and fiscal agents; and WHEREAS, in accordance with the provisions of the Act, the Governing Body hereby finds and determines that anticipation notes should be issued and sold at this time to finance the costs of paying contractual obligations to be incurred for (1) acquiring, purchasing, and equipping public health vehicles and equipment and (2) the payment of professional services related to the construction and financing of the aforementioned projects; and WHEREAS, the Governing Body hereby finds and determines that the issuance of anticipation notes is in the best interests of the citizens of the Issuer, now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ THAT: SECTION 1:Authorization - Designation - Principal Amount - Purpose. General obligation notes of the Issuer shall be and are hereby authorized to be issued in the aggregate principal amount of THREE HUNDRED TEN THOUSAND AND NO/100 DOLLARS ($310,000), to be designated and bear the title of ?CITY OF SCHERTZ, TEXAS TAX NOTES, SERIES 2010? (the Obligations), for the purpose of providing funds for ((1) acquiring, purchasing, and equipping public health vehicles and equipment and (2) the payment of professional services related to the construction and financing of the aforementioned projects, all in conformity with the laws of the State of Texas, particularly Chapter 1431, as amended, Texas Government Code, an ordinance adopted by the Governing Body on January 12, 2010, and the Issuer?s Home Rule Charter. 85424070.2 SECTION 2:Fully Registered Obligations - Authorized Denominations - Stated Maturities - Interest Rates ? Dated Date. The Obligations shall be issued as fully registered obligations, without coupons, shall be dated January 1, 2010 (the Dated Date) and shall be in denominations of $5,000 or any integral multiple thereof (within a Stated Maturity), shall be lettered ?R-? and numbered consecutively from one (1) upward and principal shall become due and payable on August 1 in each of the years (the Stated Maturities) and in the amounts and bear interest at the rates per annum in accordance with the following schedule: Years of Principal Interest Stated MaturityAmounts ($)Rates (%) 201065,0001.50 201180,0001.80 201280,0002.25 201385,0002.60 The Obligations shall bear interest on the unpaid principal amounts from the Closing Date (hereafter defined), or from the most recent Interest Payment Date to which interest has been paid or duly provided for, to Stated Maturity, while Outstanding, at the rates per annum shown in the above schedule (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Obligations shall be payable on February 1 and August 1 in each year, commencing August 1, 2010 (the Interest Payment Date), while the Obligations are Outstanding. SECTION 3:Payment of Obligations - Paying Agent/Registrar. The principal of, premium, if any, and the interest on the Obligations, due and payable by reason of Stated Maturity or otherwise, shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts, and such payment of principal of, premium, if any, and interest on the Obligations shall be without exchange or collection charges to the Holder (as hereinafter defined) of the Obligations. The selection and appointment of Schertz Bank & Trust, Schertz, Texas (the Paying Agent/Registrar), to serve as the initial Paying Agent/Registrar for the Obligations is hereby approved and confirmed, and the Issuer agrees and covenants to cause to be kept and maintained at the corporate trust office of the Paying Agent/Registrar books and records (the Security Register) for the registration, payment, and transfer of the Obligations, all as provided herein, in accordance with the terms and provisions of a Paying Agent/Registrar Agreement, attached, in substantially final form, as Exhibit A hereto, and such reasonable rules and regulations as the Paying Agent/Registrar and the Issuer may prescribe. The Issuer covenants to maintain and provide a Paying Agent/Registrar at all times while the Obligations are Outstanding, and any successor Paying Agent/Registrar shall be (i) a national or state banking institution or (ii) an association or a corporation organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers. Such Paying Agent/Registrar shall be subject to supervision or examination by federal or state authority and authorized by law to serve as a Paying Agent/Registrar. The Issuer reserves the right to appoint a successor Paying Agent/Registrar upon providing the previous Paying Agent/Registrar with a certified copy of a resolution or ordinance 2 85424070.2 terminating such agency. Additionally, the Issuer agrees to promptly cause a written notice of this substitution to be sent to each Holder of the Obligations by United States mail, first-class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Both principal of, premium, if any, and interest on the Obligations, due and payable by reason of Stated Maturity or otherwise, shall be payable only to the registered owner of the Obligations appearing on the Security Register (the Holder or Holders) maintained on behalf of the Issuer by the Paying Agent/Registrar as hereinafter provided (i) on the Record Date (hereinafter defined) for purposes of payment of interest on the Obligations, (ii) on the date of surrender of the Obligations for purposes of receiving payment of principal thereof at the Obligations? Stated Maturity, and (iii) on any date for any other purpose. The Issuer and the Paying Agent/Registrar, and any agent of either, shall treat the Holder as the owner of an Obligation for purposes of receiving payment and all other purposes whatsoever, and neither the Issuer nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. Principal of and premium, if any, on the Obligations shall be payable only upon presentation and surrender of the Obligations to the Paying Agent/Registrar at its corporate trust office. Interest on the Obligations shall be paid to the Holder whose name appears in the Security Register at the close of business on the fifteenth day of the month next preceding an Interest Payment Date for the Obligations (the Record Date) and shall be paid (i) by check sent by United States mail, first-class postage prepaid, by the Paying Agent/Registrar, to the address of the Holder appearing in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested in writing by the Holder at the Holder?s risk and expense. If the date for the payment of the principal of, premium, if any, or interest on the Obligations shall be a Saturday, a Sunday, a legal holiday, or a day on which banking institutions in the city where the corporate trust office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a day. The payment on such date shall have the same force and effect as if made on the original date any such payment on the Obligations was due. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each Holder of an Obligation appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4:Redemption. The Obligations are not subject to redemption prior to Stated Maturity. SECTION 5:Execution - Registration. The Obligations shall be executed on behalf of the Issuer by its Mayor under the seal of the Issuer reproduced or impressed thereon and attested 3 85424070.2 by its City Secretary. The signature of any of said officers on the Obligations may be manual or facsimile. Obligations bearing the manual or facsimile signatures of individuals who were, at the time of the Dated Date, the proper officers of the Issuer shall bind the Issuer, notwithstanding that such individuals or either of them shall cease to hold such offices prior to the delivery of the Obligations to the Purchasers (hereinafter defined), all as authorized and provided in Chapter 1201, as amended, Texas Government Code. No Obligation shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Obligation either a certificate of registration substantially in the form provided in Section 8C, executed by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent by manual signature, or a certificate of registration substantially in the form provided in Section 8D, executed by the Paying Agent/Registrar by manual signature, and either such certificate upon any Obligation shall be conclusive evidence, and the only evidence, that such Obligation has been duly certified or registered and delivered. SECTION 6:Registration - Transfer - Exchange of Obligations - Predecessor Obligations. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of every owner of the Obligations, or, if appropriate, the nominee thereof. Any Obligation may, in accordance with its terms and the terms hereof, be transferred or exchanged for Obligations of other authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Obligation to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender for transfer of any Obligation at the corporate trust office of the Paying Agent/Registrar, the Issuer shall execute and the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Obligations of authorized denomination and having the same Stated Maturity and of a like interest rate and aggregate principal amount as the Obligation or Obligations surrendered for transfer. At the option of the Holder, Obligations may be exchanged for other Obligations of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Obligations surrendered for exchange upon surrender of the Obligations to be exchanged at the corporate trust office of the Paying Agent/Registrar. Whenever any Obligations are so surrendered for exchange, the Issuer shall execute, and the Paying Agent/Registrar shall register and deliver, the Obligations to the Holder requesting the exchange. All Obligations issued upon any transfer or exchange of Obligations shall be delivered at the corporate trust office of the Paying Agent/Registrar, or be sent by registered mail to the Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be the valid and binding obligations of the Issuer, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Obligations surrendered upon such transfer or exchange. 4 85424070.2 All transfers or exchanges of Obligations pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Obligations canceled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be Predecessor Obligations, evidencing all or a portion, as the case may be, of the same debt evidenced by the new Obligation or Obligations registered and delivered in the exchange or transfer therefor. Additionally, the term Predecessor Obligations shall include any Obligation registered and delivered pursuant to Section 17 in lieu of a mutilated, lost, destroyed, or stolen Obligation which shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Obligation. SECTION 7:Initial Obligations. The Obligations herein authorized shall be initially issued as a single fully registered Obligation in the aggregate principal amount of $310,000 with principal installments to become due and payable as provided in Section 2 hereof and numbered T-1 (the Initial Obligations), and the Initial Obligations shall be registered in the name of the Purchasers (defined herein) or the designee thereof. The Initial Obligations shall be the Obligations submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the Purchasers. Any time after the delivery of the Initial Obligations, the Paying Agent/Registrar, pursuant to written instructions from the Purchasers, or the designee thereof, shall cancel the Initial Obligations delivered hereunder and exchange therefor Definitive Obligations of like kind and of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the Purchasers, or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 8:FORMS. A.Forms Generally. The Obligations, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Obligations shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including insurance legends in the event the Obligations, or any Stated Maturities thereof, are insured and identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including any reproduction of an opinion of counsel) thereon as may, consistent herewith, be established by the Issuer or determined by the officers executing the Obligations as evidenced by their execution thereof. Any portion of the text of any Obligation may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Obligation. 5 85424070.2 The definitive Obligations shall be printed, lithographed, or engraved, produced by any combination of these methods, or produced in any other similar manner, all as determined by the officers executing the Obligations as evidenced by their execution thereof, but the Initial Obligation(s) submitted to the Attorney General of Texas may be typewritten or photocopied or otherwise reproduced. [The remainder of this page intentionally left blank.] 6 85424070.2 B.Form of Definitive Obligation. REGISTERED REGISTERED NO. ____________ PRINCIPAL AMOUNT $__________ United States of America State of Texas Counties of Bexar, Comal, and Guadalupe CITY OF SCHERTZ, TEXAS TAX NOTES, SERIES 2010 Dated Date: Interest Rate: Stated Maturity: CUSIP NO: January 1, 2010 ________________________________________ REGISTERED OWNER: ________________________________________________________ PRINCIPAL AMOUNT: ______________________________________________ DOLLARS The City of Schertz, Texas (the Issuer), a body corporate and a municipal corporation in the Counties of Bexar, Comal, and Guadalupe, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner specified above, or the registered assigns thereof, on the Stated Maturity date specified above, the Principal Amount specified above and to pay interest on the unpaid Principal Amount hereof from the Closing Date, or from the most recent interest payment date to which interest has been paid or duly provided for until such Principal Amount has become due and payment thereof has been made or duly provided for, to Stated Maturity, while Outstanding, at the per annum rate of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 1 and August 1 of each year commencing August 1, 2010. Principal on this Obligation shall be payable to the Registered Owner hereof (the Holder), upon presentation and surrender (provided, however, with respect to principal payments prior to the final Stated Maturity, the Obligations need not be surrendered to the Paying Agent/Registrar, who will merely document this payment on an internal ledger maintained by the Paying Agent/Registrar), at the corporate trust office of the Paying Agent/Registrar executing the registration certificate appearing hereon or a successor thereof. Interest shall be payable to the Holder of this Obligation (or one or more Predecessor Obligations, as defined in the Ordinance hereinafter referenced) whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the fifteenth day of the month next preceding each interest payment date. All payments of principal of and interest on this Obligation shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail, first-class postage prepaid, to the Holder hereof at the address appearing in 7 85424070.2 the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by the Holder hereof at the Holder?s risk and expense. This Obligation is one of the series specified in its title issued in the aggregate principal amount of $310,000 (the Obligations) pursuant to an ordinance adopted by the Governing Body of the Issuer (the Ordinance), for the purpose of providing funds for (1) acquiring, purchasing, and equipping public health vehicles and equipment and (2) the payment of professional services related to the construction and financing of the aforementioned projects, all in conformity with the laws of the State of Texas, including Chapter 1431, as amended, Texas Government Code, the Ordinance, and the Issuer?s Home Rule Charter. As provided in the Ordinance, the Obligations are not subject to redemption prior to Stated Maturity. The Obligations of this series are payable from the proceeds of an annual ad valorem tax levied upon all taxable property within the Issuer within the limitations prescribed by law. Reference is hereby made to the Ordinance, a copy of which is on file in the corporate trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Obligations; the terms and conditions relating to the transfer or exchange of the Obligations; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the Issuer and the Paying Agent/Registrar; the terms and provisions upon which this Obligation may be discharged at or prior to the Stated Maturity thereof, and deemed to be no longer Outstanding thereunder; and for the other terms and provisions specified in the Ordinance. Capitalized terms used herein have the same meanings assigned in the Ordinance. This Obligation, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register upon presentation and surrender at the corporate trust office of the Paying Agent/Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by the Holder hereof, or his duly authorized agent, and thereupon one or more new fully registered Obligations of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued to the designated transferee or transferees. The Issuer and the Paying Agent/Registrar, and any agent of either, shall treat the Holder hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this Obligation as the owner hereof for purposes of receiving payment of principal hereof at its Stated Maturity, and (iii) on any other date as the owner hereof for all other purposes, and neither the Issuer nor the Paying Agent/Registrar, or any such agent of either, shall be affected by notice to the contrary. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be 8 85424070.2 fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, covenanted, and represented that all acts, conditions, and things required to be performed, exist, and be done precedent to the issuance of this Obligation in order to render the same a legal, valid, and binding obligation of the Issuer have been performed, exist, and have been done, in regular and due time, form, and manner, as required by law, and that issuance of the Obligations does not exceed any constitutional or statutory limitation; and that due provision has been made for the payment of the principal of, premium if any, and interest on the Obligations by the levy of a tax as aforestated. In case any provision in this Obligation or any application thereof shall be deemed invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Obligation and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. 9 85424070.2 IN WITNESS WHEREOF, the Issuer has caused this Obligation to be duly executed under its official seal. CITY OF SCHERTZ, TEXAS By Mayor ATTEST: ____________________________________ City Secretary (CITY SEAL) C.*Form of Registration Certificate of Comptroller of Public Accounts to Appear on Initial Obligations Only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER OF § PUBLIC ACCOUNTS § §REGISTER NO. THE STATE OF TEXAS § I HEREBY CERTIFY that this Obligation has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this ____________________ ____________________________________ Comptroller of Public Accounts of the State of Texas (SEAL) *NOTE TO PRINTER: Not to appear on printed Obligations. 10 85424070.2 D.Form of Certificate of Paying Agent/Registrar to Appear on Definitive Obligations Only. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Obligation has been duly issued and registered under the provisions of the within-mentioned Ordinance; the Obligation or Obligations of the above-entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. Registered this date: SCHERTZ BANK & TRUST, Schertz, Texas, as Paying Agent/Registrar ____________________________________By: _______________________________ Authorized Signature E.Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee):____________________________ ______________________________________________________________________________ (Social Security or other identifying number): ________________________________________ the within Obligation and all rights thereunder, and hereby irrevocably constitutes and appoints ____________________attorney to transfer the within Obligation on the books kept for registration thereof, with full power of substitution in the premises. DATED:____________________________ ________________________________________________ NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face of the within Obligation in every particular. Signature guaranteed: ______________________________ 11 85424070.2 F.The Initial Obligations shall be in the respective forms set forth in paragraph B of this Section, except that the form of a single fully registered Initial Obligation shall be modified as follows: (i) immediately under the name of the Obligation(s) the headings ?Interest Rate ____? and ?Stated Maturity ________? shall both be completed ?as shown below?; (ii) the first two paragraphs shall read as follows: Registered Owner: _____________________________________________________________ Principal Amount: ______________________________________________________________ The City of Schertz, Texas (the Issuer), a body corporate and municipal corporation in the Counties of Bexar, Comal, and Guadalupe, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount specified above on the first day of August in each of the years and in principal amounts and bearing interest at per annum rates in accordance with the following schedule: Years of Principal Interest Stated MaturityAmounts ($)Rates (%) (Information to be inserted from schedule in Section 2 hereof). and to pay interest on the unpaid Principal Amount hereof from the Closing Date or from the most recent interest payment date to which interest has been paid or duly provided for until the Principal Amount has become due and payment thereof has been made or duly provided for, at the per annum rates of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 1 and August 1 of each year, commencing August 1, 2010. Principal of this Obligation shall be payable to the Registered Owner hereof (the Holder), upon its presentation and surrender, at the corporate trust office of Schertz Bank & Trust, Schertz, Texas (the Paying Agent/Registrar). Interest shall be payable to the Holder of this Obligation whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the fifteenth day of the month next preceding each interest payment date. All payments of principal of and interest on this Obligation shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail, first-class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder hereof. 12 85424070.2 G.Insurance Legend. If bond insurance is obtained by the Issuer or the Purchasers for the Obligations, the definitive Obligations and the Initial Obligations shall bear an appropriate legend as provided by the insurer. SECTION 9:Definitions. For all purposes of this Ordinance (as defined below), except as otherwise expressly provided or unless the context otherwise requires: (i) the terms defined in this Section have the meanings assigned to them in this Section, and certain terms used in Sections 19 and 36 of this Ordinance have the meanings assigned to them in such Sections, and all such terms include the plural as well as the singular; (ii) all references in this Ordinance to designated ?Sections? and other subdivisions are to the designated Sections and other subdivisions of this Ordinance as originally adopted; and (iii) the words ?herein?, ?hereof?, and ?hereunder? and other words of similar import refer to this Ordinance as a whole and not to any particular Section or other subdivision. A.The term Authorized Officials shall mean the Mayor, City Manager, Director of Finance, and/or the City Manager. B.The term Closing Date shall mean the date of physical delivery of the Initial Obligations in exchange for the payment in full by the Purchasers. C.The term Issuer shall mean the City of Schertz, Texas located in the Counties of Bexar, Comal, and Guadalupe, Texas and, where appropriate, the Governing Body of the Issuer. D.The term Debt Service Requirements shall mean, as of any particular date of computation, with respect to any obligations and with respect to any period, the aggregate of the amounts to be paid or set aside by the Issuer as of such date or in such period for the payment of the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations; assuming, in the case of obligations without a fixed numerical rate, that such obligations bear interest at the maximum rate permitted by the terms thereof and further assuming in the case of obligations required to be redeemed or prepaid as to principal prior to Stated Maturity, the principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the mandatory redemption provisions applicable thereto. E.The term Depository shall mean an official depository bank of the Issuer. F.The term Government Securities, as used herein, shall mean (i) direct noncallable obligations of the United States, including obligations that are unconditionally guaranteed by, the United States of America; (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent; or (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. 13 85424070.2 G.The term Holder or Holders shall mean the registered owner, whose name appears in the Security Register, for any Obligation. H.The term Interest Payment Date shall mean the date interest is payable on the Obligations, being February 1 and August 1 of each year, commencing August 1, 2010, while any of the Obligations remain Outstanding. I.The term Obligation Fund shall mean the special Fund created and established by the provisions of Section 10 of this Ordinance. J.The term Obligations shall mean the $310,000 ?CITY OF SCHERTZ, TEXAS TAX NOTES, SERIES 2010? authorized by this Ordinance. K.The term Ordinance shall mean this ordinance finally adopted by the Governing Body of the Issuer on January 12, 2010. L.The term Outstanding when used in this Ordinance with respect to Obligations shall mean, as of the date of determination, all Obligations issued and delivered under this Ordinance, except: (1)those Obligations canceled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2)those Obligations for which payment has been duly provided by the Issuer in accordance with the provisions of Section 21 of this Ordinance; and (3)those Obligations that have been mutilated, destroyed, lost, or stolen and replacement Obligations have been registered and delivered in lieu thereof as provided in Section 17 of this Ordinance. M.The term Purchasers shall mean the initial purchasers of the Obligations named in Section 18 of this Ordinance. N.The term Stated Maturity shall mean the annual principal payments of the Obligations payable on August 1 of each year, as set forth in Section 2 of this Ordinance. SECTION 10:Obligation Fund ? Investments. For the purpose of paying the interest on and to provide a sinking fund for the payment, redemption, and retirement of the Obligations, there shall be and is hereby created a special Fund to be designated ?TAX NOTES, SERIES 2010, INTEREST AND SINKING FUND? (the Obligation Fund), which Fund shall be kept and maintained at the Depository, and money deposited in such Fund shall be used for no other purpose and shall be maintained as provided in Section 19. Authorized Officials of the Issuer are hereby authorized and directed to make withdrawals from the Obligation Fund sufficient to pay the principal of, premium, if any, and interest on the Obligations as the same become due and payable and shall cause to be transferred to the Paying Agent/Registrar from money on deposit in the Obligation Fund an amount sufficient to pay the amount of principal and/or interest stated to mature on the Obligations, such transfer of funds to the Paying Agent/Registrar to be made in such manner as will cause immediately available funds to be 14 85424070.2 deposited with the Paying Agent/Registrar on or before the business day next preceding each interest and principal payment date for the Obligations. Pending the transfer of funds to the Paying Agent/Registrar, money in any Fund created and established by this Ordinance, at the option of the Issuer, may be placed in time deposits, certificates of deposit, guaranteed investment contracts, or similar contractual agreements, as permitted by the provisions of the Public Funds Investment Act, as amended, Chapter 2256, Texas Government Code, secured (to the extent not insured by the Federal Deposit Insurance Corporation) by obligations of the type hereinafter described, or be invested, as authorized by any law, including investments held in book-entry form, in securities including, but not limited to, direct obligations of the United States of America, obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in indirect obligations of the United States of America, including, but not limited to, evidences of indebtedness issued, insured or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, Farmers Home Administration, Federal Home Loan Mortgage Association, Small Business Administration, or Federal Housing Association; provided that all such deposits and investments shall be made in such a manner that the money required to be expended from such Fund will be available at the proper time or times. All interest and income derived from deposits and investments in such Fund shall be credited to, and any losses debited to, such Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Obligations. SECTION 11:Tax Levy. To provide for the payment of the Debt Service Requirements on the Obligations being (i) the interest on the Obligations and (ii) a sinking fund for their redemption at Stated Maturity or a sinking fund of 2% (whichever amount shall be the greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while the Obligations or any interest thereon shall remain Outstanding, a sufficient tax, within the limitations prescribed by law, on each one hundred dollars? valuation of taxable property in the Issuer, adequate to pay such Debt Service Requirements, full allowance being made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of the Debt Service Requirements, and the same shall not be diverted to any other purpose. The taxes so levied and collected shall be paid into the Obligation Fund and are thereafter pledged to the payment of the Obligations. The Governing Body hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay such Debt Service Requirements, it having been determined that the existing and available taxing authority of the Issuer for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding indebtedness and other obligations of the Issuer. SECTION 12:Deposits to Obligation Fund ? Surplus Obligation Proceeds. The Issuer hereby covenants and agrees to cause to be deposited in the Obligation Fund prior to a principal and interest payment date for the Obligations, from the annual levy of an ad valorem tax or from other lawfully available funds, amounts sufficient to fully pay and discharge promptly each installment of interest and principal of the Obligations as the same accrues or matures or comes due by reason of Stated Maturity. 15 85424070.2 Accrued interest, if any, received from the Purchasers of the Obligations shall be deposited to the Obligation Fund. In addition, any surplus proceeds from the sale of the Obligations, including investment income thereon, not expended for authorized purposes, as described in Section 1 hereof, shall be deposited in the Obligation Fund, and such amounts so deposited shall reduce the sums otherwise required to be deposited in said Fund from ad valorem taxes. SECTION 13:Security of Funds. All money on deposit in the Funds for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested as provided herein) shall be secured in the manner and to the fullest extent required by the laws of the State of Texas for the security of public funds, and money on deposit in such Funds shall be used only for the purposes permitted by this Ordinance. SECTION 14:Remedies in Event of Default. In addition to all the rights and remedies provided by the laws of the State of Texas, the Issuer covenants and agrees particularly that in the event the Issuer (a) defaults in the payments to be made to the Obligation Fund or (b) defaults in the observance or performance of any other of the covenants, conditions, or obligations set forth in this Ordinance, the Holders of any of the Obligations shall be entitled to seek a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing body of the Issuer and other officers of the Issuer to observe and perform any covenant, condition, or obligation prescribed in this Ordinance. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. The specific remedies herein provided shall be cumulative of all other existing remedies and the specification of such remedies shall not be deemed to be exclusive. SECTION 15:Notices to Holders ? Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States mail, first-class postage prepaid, to the address of each Holder as it appears in the Security Register. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 16:Cancellation. All Obligations surrendered for payment, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly canceled by it and, if surrendered to the Issuer, shall be delivered to the Paying Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The 16 85424070.2 Issuer may at any time deliver to the Paying Agent/Registrar for cancellation any Obligations previously certified or registered and delivered which the Issuer may have acquired in any manner whatsoever, and all Obligations so delivered shall be promptly canceled by the Paying Agent/Registrar. All canceled Obligations held by the Paying Agent/Registrar shall be destroyed as directed by the Issuer. SECTION 17:Mutilated, Destroyed, Lost, and Stolen Obligations. If (1) any mutilated Obligation is surrendered to the Paying Agent/Registrar, or the Issuer and the Paying Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any Obligation, and (2) there is delivered to the Issuer and the Paying Agent/Registrar such security or indemnity as may be required to save each of them harmless, then, in the absence of notice to the Issuer or the Paying Agent/Registrar that such Obligation has been acquired by a bona fide purchaser, the Issuer shall execute and, upon its request, the Paying Agent/Registrar shall register and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Obligation, a new Obligation of the same Stated Maturity and interest rate and of like tenor and principal amount, bearing a number not contemporaneously outstanding. In case any such mutilated, destroyed, lost, or stolen Obligation has become or is about to become due and payable, the Issuer in its discretion may, instead of issuing a new Obligation, pay such Obligation. Upon the issuance of any new Obligation or payment in lieu thereof, under this Section, the Issuer may require payment by the Holder of a sum sufficient to cover any tax or other governmental charge imposed in relation thereto and any other expenses (including attorney?s fees and the fees and expenses of the Paying Agent/Registrar) connected therewith. Every new Obligation issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Obligation shall constitute a replacement of the prior obligation of the Issuer, whether or not the mutilated, destroyed, lost, or stolen Obligation shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Obligations. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost, or stolen Obligations. SECTION 18:Sale of Obligations ? Approval of Purchase Contract ? Use of Proceeds. The Obligations authorized by this Ordinance are hereby sold by the Issuer to Schertz Bank & Trust, Schertz, Texas (the Purchasers,having all the rights, benefits, and obligations of a Holder) in accordance with the provisions of a Purchase and Investment Letter (the Purchase Contract), dated January 12, 2010, attached hereto as Exhibit B and incorporated herein by reference as a part of this Ordinance for all purposes. The Initial Obligations shall be registered in the name of Schertz Bank & Trust. The Mayor of the Issuer is hereby authorized and directed to execute the Purchase Contract for and on behalf of the Issuer and as the act and deed of this Governing Body, and in regard to the approval and execution of the Purchase Contract, the Governing Body hereby finds, determines and declares that the representations, warranties, and agreements of the Issuer contained in the Purchase Contract are true and correct in all material 17 85424070.2 respects and shall be honored and performed by the Issuer. Delivery of the Obligations to the Purchasers shall occur as soon as practicable after the adoption of this Ordinance, upon payment therefor in accordance with the terms of the Purchase Contract. Proceeds from the sale of the Obligations (after paying costs of issuance) shall be deposited into the special construction/acquisition account or accounts created for the projects to be constructed or acquired with the proceeds of the Obligations. This special account shall be established and maintained at the Depository and shall be invested in accordance with the provisions of Section 10 of this Ordinance. Interest earned on the proceeds of the Obligations pending completion of construction or acquisition of the projects financed with such proceeds shall be accounted for, maintained, deposited, and expended as permitted by the provisions of Chapter 1201, as amended, Texas Government Code, or as required by any other applicable law. Thereafter, such amounts shall be expended in accordance with Section 12 of this Ordinance. SECTION 19:Covenants to Maintain Tax-Exempt Status. A.Definitions. When used in this Section, the following terms have the following meanings: Code means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. Computation Date has the meaning set forth in Section 1.148-1(b) of the Regulations. Gross Proceeds means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Obligations. Investment has the meaning set forth in Section 1.148-1(b) of the Regulations. Nonpurpose Investment means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Obligations are invested and which is not acquired to carry out the governmental purposes of the Obligations. Rebate Amount has the meaning set forth in Section 1.148-1(b) of the Regulations. Regulations means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Obligations. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. 18 85424070.2 Yield of (1)any Investment has the meaning set forth in Section 1.148-5 of the Regulations; and (2)the Obligations has the meaning set forth in Section 1.148-4 of the Regulations. B.Not to Cause Interest to Become Taxable. The Issuer shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Obligations to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the Issuer receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Obligation, the Issuer shall comply with each of the specific covenants in this Section. C.No Private Use or Private Payments. Except to the extent that it will not cause the Obligations to become ?private activity bonds? within the meaning of section 141 of the Code and the Regulations and rulings thereunder, the Issuer shall at all times prior to the last Stated Maturity of Obligations: (1)exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Obligations, and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2)not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Obligations or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the Issuer or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. D.No Private Loan. Except to the extent that it will not cause the Obligations to become ?private activity bonds? within the meaning of section 141 of the Code and the Regulations and rulings thereunder, the Issuer shall not use Gross Proceeds of the Obligations to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be ?loaned? to a person or entity if: (i) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (ii) capacity in or service from such property is committed to such person or entity 19 85424070.2 under a take-or-pay, output or similar contract or arrangement; or (iii) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. E.Not to Invest at Higher Yield. Except to the extent that it will cause the Obligations to become ?arbitrage bonds? within the meaning of section 148 of the Code and the Regulations and rulings thereunder, the Issuer shall not at any time prior to the final Stated Maturity of the Obligations directly or indirectly invest Gross Proceeds in any Investment, if as a result of such investment the Yield of any Investment acquired with Gross Proceeds, whether then held or previously disposed of, materially exceeds the Yield of the Obligations. F.Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the Issuer shall not take or omit to take any action which would cause the Obligations to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. G.Information Report. The Issuer shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. H.Rebate of Arbitrage Profits. Except to the extent otherwise provided in section 148(f) of the Code and the Regulations and rulings thereunder or except to the extent the Issuer complies with Subsection J of this Section: (1)The Issuer shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Outstanding Obligation is discharged. However, to the extent permitted by law, the Issuer may commingle Gross Proceeds of the Obligations with other money of the Issuer, provided that the Issuer separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (2)Not less frequently than each Computation Date, the Issuer shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the Regulations and rulings thereunder. The Issuer shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Obligations until six years after the final Computation Date. (3)As additional consideration for the purchase of the Obligations by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the Issuer shall pay to the United States out of the Obligation Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Obligations equals (i) in the case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the Regulations, one hundred percent 20 85424070.2 (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder. (4)The Issuer shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. I.Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the Issuer shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Obligations, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection H of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm?s length and had the Yield of the Obligations not been relevant to either party. J.No Rebate Required. The Issuer need not comply with the covenants and duties imposed by the provisions of Subsection H. of this Section if: (1)the Issuer is a governmental unit with general taxing powers; (2)95% of the Net Proceeds of the Obligations and all income from the investment thereof will be used for the governmental activities of the Issuer; (3)the aggregate face amount, within the meaning of Section 1.148-8(c)(1) of the Regulations, of all debt obligations (other than private activity bonds) issued or expected to be issued by the Issuer or any subordinate entity in the calendar year in which the Obligations are issued is not reasonably expected to exceed $5,000,000; and (4)the Issuer otherwise satisfies the requirements of paragraph (4)(c) of section 148(f) of the Code and Section 1.148-8 of the Regulations and rulings thereunder. K.Obligations Not Hedge Bonds. (1)The Issuer reasonably expects to spend at least 85% of the spendable proceeds of the Obligations within three years after such Obligations are issued. (2)Not more than 50% of the proceeds of the Obligations will be invested in Nonpurpose Investments having a substantially guaranteed Yield for a period of 4 years or more. L.Elections. The Issuer hereby directs and authorizes the Mayor, Mayor Pro Tem, City Manager, Director of Finance, City Secretary, or City Attorney, either or any combination 21 85424070.2 of the foregoing, to make such elections in the Certificate as to Tax Exemption or similar or other appropriate certificate, form, or document permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Obligations. Such elections shall be deemed to be made on the Closing Date. M.Qualified Tax-Exempt Obligations. The Issuer hereby designates the Obligations asqualified tax-exempt obligations for purposes of section 265(b) of the Code. In furtherance of such designation, the Issuer represents, covenants and warrants the following: (a) during the calendar year in which the Obligations are issued, the Issuer (including any subordinate entities) has not designated nor will designate obligations, which when aggregated with the Obligations, will result in more than $30,000,000 of ?qualified tax-exempt obligations? being issued; (b) the Issuer reasonably anticipates that the amount of tax-exempt obligations issued during the calendar year 2010 by the Issuer (including any subordinate entities) will not exceed $30,000,000; and (c) the Issuer will take such action or refrain from such action as is necessary in order that the Obligations will not be considered ?private activity bonds? within the meaning of section 141 of the Code. SECTION 20:Control and Custody of Obligations. The Mayor shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas and shall take and have charge and control of the Obligations pending their approval by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery of the Obligations to the Purchasers. Furthermore, the Mayor, Mayor Pro Tem, City Manager, Director of Finance, City Secretary, or City Attorney, either or all, are hereby authorized and directed to furnish and execute such documents relating to the Issuer and its financial affairs as may be necessary for the issuance of the Obligations, the approval of the Attorney General and their registration by the Comptroller of Public Accounts and, together with the Issuer?s financial advisors, Bond Counsel, and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Obligations to the Purchasers and the initial exchange thereof for definitive Obligations. SECTION 21:Satisfaction of Obligation of Issuer. If the Issuer shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Obligations, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied under this Ordinance and all covenants, agreements, and other obligations of the Issuer to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Obligations, or any principal amount(s) thereof, shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Obligations or the principal amount(s) thereof at Stated Maturity, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay when due the principal of and interest on such Obligations, or the principal amount(s) 22 85424070.2 thereof, at the Stated Maturity thereof. The Issuer covenants that no deposit of money or Government Securities will be made under this Section and no use made of any such deposit which would cause the Obligations to be treated as arbitrage bonds within the meaning of section 148 of the Code (as defined in Section 19 hereof). Any money so deposited with the Paying Agent/Registrar, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Obligations, or any principal amount(s) thereof, or interest thereon with respect to which such money has been so deposited shall be remitted to the Issuer or deposited as directed by the Issuer. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Obligations and remaining unclaimed for a period of three (3) years after the Stated Maturity of the Obligations such money was deposited and is held in trust to pay shall upon the request of the Issuer be remitted to the Issuer against a written receipt therefor, subject to the unclaimed property laws of the State of Texas. SECTION 22:Printed Opinion. The Purchasers? obligation to accept delivery of the Obligations is subject to its being furnished a final opinion of Fulbright & Jaworski L.L.P., as Bond Counsel, approving certain legal matters as to the Obligations, said opinion to be dated and delivered as of the date of initial delivery and payment for such Obligations. Printing of a true and correct copy of this opinion on the reverse side of each of the Obligations, with appropriate certificate pertaining thereto executed by facsimile signature of the City Secretary of the Issuer is hereby approved and authorized. SECTION 23:CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Obligations. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Obligations shall be of no significance or effect as regards the legality thereof, and neither the Issuer nor attorneys approving said Obligations as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Obligations. SECTION 24:Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. SECTION 25:Ordinance a Contract; Amendments - Outstanding Obligations. The Issuer acknowledges that the covenants and obligations of the Issuer herein contained are a material inducement to the purchase of the Obligations. This Ordinance shall constitute a contract with the Holders from time to time, shall be binding on the Issuer and its successors and assigns, and shall not be amended or repealed by the Issuer so long as any Obligation remains Outstanding except as permitted in this Section. The Issuer may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the Issuer may, with the written consent of Holders holding a majority in aggregate principal amount of the Obligations then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided, however that, without the consent of all Holders of Outstanding Obligations, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of, and interest on the Obligations, reduce the principal amount thereof, or the rate of interest thereon, or 23 85424070.2 in any other way modify the terms of payment of the principal of, or interest on the Obligations, (2) give any preference to any Obligation over any other Obligation, or (3) reduce the aggregate principal amount of Obligations required for consent to any such amendment, addition, or rescission. SECTION 26:Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the Issuer, Bond Counsel, Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the Issuer, Bond Counsel, the Paying Agent/Registrar, and the Holders. SECTION 27:Inconsistent Provisions. All ordinances and resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters ordained herein. SECTION 28:Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 29:Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 30:Severability. If any provision of this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the Governing Body hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 31:Incorporation of Preamble Recitals. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the Governing Body. SECTION 32:Authorization of Paying Agent/Registrar Agreement. The Governing Body of the Issuer hereby finds and determines that it is in the best interest of the Issuer to authorize the execution of a Paying Agent/Registrar Agreement concerning the payment, exchange, and transferability of the Obligations. A copy of the Paying Agent/Registrar Agreement is attached hereto, in substantially final form, as Exhibit A and is incorporated by reference to the provisions of this Ordinance. SECTION 33:Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is finally adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. 24 85424070.2 SECTION 34:Unavailability of Authorized Publication. If, because of the temporary or permanent suspension of any newspaper, journal, or other publication, or, for any reason, publication of notice cannot be made meeting any requirements herein established, any notice required to be published by the provisions of this Ordinance shall be given in such other manner and at such time or times as in the judgment of the Issuer or of the Paying Agent/Registrar shall most effectively approximate such required publication and the giving of such notice in such manner shall for all purposes of this Ordinance be deemed to be in compliance with the requirements for publication thereof. SECTION 35:No Recourse Against Issuer Officials. No recourse shall be had for the payment of principal of, premium, if any, or interest on any Obligation or for any claim based thereon or on this Ordinance against any official of the Issuer or any person executing any Obligation. SECTION 36:Continuing Disclosure of Information. Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: Rule means SEC Rule 15c2-12, as amended from time to time. SEC means the United States Securities and Exchange Commission. The aggregate principal amount of the Obligations is less than $1,000,000 and therefore SEC Rule 15c2-12 is not applicable to the offering of the Obligations. Accordingly, no contract to provide continuing disclosure information after the issuance of the Obligations has been made by the Issuer with investors. SECTION 37:Book-Entry Only System. The Obligations may initially be registered so as to participate in a securities depository system (the DTC System) with the Depository Trust Company, New York, New York, or any successor entity thereto (DTC), as set forth herein. Each Stated Maturity of the Obligations shall be issued (following cancellation of the Initial Obligations described in Section 7) in the form of a separate single definitive Obligation. Upon issuance, the ownership of each such Obligation shall be registered in the name of Cede & Co., as the nominee of DTC, and all of the Outstanding Obligations shall be registered in the name of Cede & Co., as the nominee of DTC. The Issuer and the Paying Agent/Registrar are authorized to execute, deliver, and take the actions set forth in such letters to or agreements with DTC as shall be necessary to effectuate the DTC System, including the Letter of Representations attached hereto as Exhibit C (the Representation Letter). With respect to the Obligations registered in the name of Cede & Co., as nominee of DTC, the Issuer and the Paying Agent/Registrar shall have no responsibility or obligation to any broker-dealer, bank, or other financial institution for which DTC holds the Obligations from time to time as securities depository (a Depository Participant) or to any person on behalf of whom such a Depository Participant holds an interest in the Obligations (an Indirect Participant). Without limiting the immediately preceding sentence, the Issuer and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, 25 85424070.2 Cede & Co., or any Depository Participant with respect to any ownership interest in the Obligations, (ii) the delivery to any Depository Participant or any other person, other than a registered owner of the Obligations, as shown on the Security Register, of any notice with respect to the Obligations, including any notice of redemption, or (iii) the delivery to any Depository Participant or any Indirect Participant or any other Person, other than a Holder of an Obligation, of any amount with respect to principal of, premium, if any, or interest on the Obligations. While in the DTC System, no person other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive an Obligation evidencing the obligation of the Issuer to make payments of principal, premium, if any, and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks or drafts being mailed to the Holder, the word ?Cede & Co.? in this Ordinance shall refer to such new nominee of DTC. In the event that (a) the Issuer determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) DTC or the Issuer determines that it is in the best interest of the beneficial owners of the Obligations that they be able to obtain certificated Obligations, the Issuer shall notify the Paying Agent/Registrar, DTC, and the Depository Participants of the availability within a reasonable period of time through DTC of bond certificates, and the Obligations shall no longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that time, the Issuer may determine that the Obligations shall be registered in the name of and deposited with a successor depository operating a securities depository system, as may be acceptable to the Issuer, or such depository?s agent or designee, and if the Issuer and the Paying Agent/Registrar do not select such alternate securities depository system then the Obligations may be registered in whatever name or names the Holders of Obligations transferring or exchanging the Obligations shall designate, in accordance with the provisions hereof. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Obligation is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Obligation and all notices with respect to such Obligation shall be made and given, respectively, in the manner provided in the Representation Letter. SECTION 38:Further Procedures. The officers and employees of the Issuer are hereby authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the Issuer all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial sale and delivery of the Obligations, the Paying Agent/Registrar Agreement, and the Purchase Contract. In addition, prior to the initial delivery of the Obligations, the Mayor, City Manager, Director of Finance, or the City Secretary and Bond Counsel are hereby authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the instruments authorized and approved by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or more completely document the transactions contemplated and approved by this Ordinance, (ii) obtain a rating from any of the national bond rating agencies, or (iii) 26 85424070.2 obtain the approval of the Obligations by the Texas Attorney General?s office. In case any officer of the Issuer whose signature shall appear on any certificate shall cease to be such officer before the delivery of such certificate, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. SECTION 39:Effective Date. Pursuant to the provisions of Section 1201.028, as amended, Texas Government Code, this Ordinance shall be effective immediately upon adoption, notwithstanding any provision in the Issuer?s Home Rule Charter to the contrary concerning a multiple reading requirement for the adoption of ordinances. [The remainder of this page intentionally left blank.] 27 85424070.2 PASSED AND ADOPTED by the Governing Body of the City of Schertz, Texas, this the th 12 day of January, 2010. CITY OF SCHERTZ, TEXAS ____________________________________ Mayor ATTEST: _________________________________ City Secretary (CITY SEAL) Exhibit A - Paying Agent/Registrar Agreement Exhibit B - Purchase Contract Exhibit D ? DTC Letter of Representations S-1 85424070.2 EXHIBIT A Paying Agent/Registrar Agreement See Tab No. __ A-1 85424070.2 EXHIBIT B Purchase Contract See Tab No. __ B-1 85424070.2 EXHIBIT C DTC Letter of Representations See Tab No. __ C-1 85424070.2 Agenda No. 2 CITY COUNCIL MEMORANDUM City Council Meeting: January 12, 2009 Department: City Secretary Subject: Minutes BACKGROUND On January 5, 2010 a Regular City Council Meeting was held at the Municipal Complex Council Chambers at 6:30 p.m., 1400 Schertz Parkway Building #4. FISCAL IMPACT None RECOMMENDATION Staff recommends Council approval of the January 5, 2010 minutes. ATTACHMENT Minutes 01-05-2010 MINUTES REGULAR MEETING January 5, 2010 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on January 5, 2010 at 6:30 p.m., in the Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas.The following members present to-wit: Mayor Hal Baldwin Councilmember Jim Fowler Mayor Pro-Tem David Scagliola Councilmember John Trayhan Councilmember Michael Carpenter Staff Present: City Manager Don Taylor Assistant City Manager John Bierschwale Assistant City Manager David Harris City Attorney Michael Spain City Secretary Brenda Dennis CALL TO ORDER REGULAR MEETING Mayor Baldwin called the meeting to order at 6:30 p.m. INVOCATION AND PLEDGES OF ALLEGIANCE TO THE FLAGS OF THE UNITED STATES AND STATE OF TEXAS. Councilmember Fowler gave the invocation followed by the Pledges of Allegiance to the Flags of the United States and State of Texas. PRESENTATION 2009 Festival of Angels Lighting Contest Winners (J. Jewell) Mayor Baldwin introduced Assistant Economic Development Director Jeff Jewell and Jan Haynie Schertz Chamber of Commerce Board Member who introduced this item stating that Economic Development staff and a team of Schertz Chamber Members organized the annual lighting contest. Many residents and households participated and displayed their holiday cheer with their imaginative use of lights, ornaments, and other props. As in years past, the finals were extremely competitive with many homes deserving recognition of some kind. However, only five throughout the city could receive final recognition as this year?s winners. This year?s winners and their categories: Best Illumination - 3524 Hamilton ? Elby Jones Most Creative - 3424 Dartmouth Cove ? Jess and Cindy Rogers Most Original - 5010 Wedgewood ? Cheryl Cole Most Animation - 139 Nu Pecan Grove ? Jeff and Marilyn Parker Overall Appearance - 3657 Diamond Falls ? Todd and Sharlene Alexander Mr. Jewell and Ms. Haynie recognized the winners and presented them with a plaque. ðïóðëóîðïð Ó·²«¬»­ HEARING OF RESIDENTS Robert Brockman, 1001 Elbel Road who asked when the Library vending area would actually get vending machines and/or what the plan is. City Manager Taylor stated that the City is working on going out for proposals and that it would actually be for all the vending machines in all city facilities as well, so to be under one vendor. Discussion and/or Action Items Minutes 1. - Consideration and/or action regarding the approval of the minutes of the Regular Meeting of December 15, 2009. Mayor Baldwin recognized Councilmember Carpenter who moved, seconded by Councilmember Trayhan to approve the minutes of the regular meeting of Vote was unanimous.Motion Carried. December 15, 2009. Ordinance No. 09-S-48 2. ? Consideration and/or action approving an ordinance relating to Planning & Zoning Commission Alternate Members; removal and Final Reading appointments of members. (M. Spain) Mayor Baldwin recognized City Attorney Michael Spain who stated that there have been no changes since first reading. Mayor Baldwin recognized Councilmember Trayhan who moved, seconded by Vote was Councilmember Fowler to approve Ordinance No. 09-S-48 final reading. unanimous. Motion carried. Ordinance No. 10-A-01 3. ? Consideration and/or action approving an ordinance relating to the annexation of approximately 496.59 +/- acres, being approximately 310.04 +/- acres located West of Lost Meadows Subdivision and approximately First Reading 186.55 +/- acres known as Crescent Bend Park and related matters. (M. Sanchez) Mayor Baldwin recognized Development Services Director Michelle Sanchez who introduced this item stating that Ordinance No. 10-A-01 provides for the annexation of approximately 496.59 +/- acres, being approximately 310-.04 +/- acres located West of Lost Meadows Subdivision and approximately 186.55 +/- acres known as Crescent Bend Park. Ms. Sanchez stated this is the first reading of the ordinance and went over the schedule of events for the process of any zoning. Ms. Sanchez further stated that second and final reading of the ordinance is scheduled for January 12, 2010. After January 12, 2010, City Attorney will provide notice of annexation to the Texas Secretary of State and Texas Comptroller of Public Accounts. File certified copy of annexation ordinance in the appropriate County Clerk?s office. Update Municipal Boundary and Extraterritorial Jurisdiction maps, and City Attorney files preclearance materials with the Department of Justice. ðïóðëóîðïð Ó·²«¬»­Ð¿¹»ó î ó Mayor Baldwin recognized City Attorney Michael Spain who stated that as Council would recall at the last meeting two lots were identified and that these lots would be brought forward under a separate annexation item at a future date. Mayor Baldwin recognized Councilmember Fowler who moved, seconded by Mayor Vote was Pro Tem Scagliola to approve Ordinance No. 10-A-01 first reading. unanimous. Motion carried. Ordinance No. 10-F-02 4. ? Consideration and/or action authorizing an amendment to City Ordinance 07-F-07 as amended, relating to the Franchise of Cibolo Waste Incorporated, DBA Bexar Waste Inc., for Municipal Solid Waste Collection and disposal relating to temporary and permanent roll-off containers, repealing all ordinances or parts of ordinances in conflict with this Ordinance; and approving an First Reading effective date. (M. Sanchez) Mayor Baldwin recognized Development Services Director Michelle Sanchez who introduced this item stating that City Staff recommends an amendment to the City?s solid waste franchise ordinance permitting (i) homeowners or their contractors and (ii) commercial contractors, to haul off debris from minor construction and clean-up activity. Mayor Baldwin recognized Mayor Pro-Tem Scagliola who moved, seconded by Vote was Councilmember Fowler to approve Ordinance No. 10-F-02 first reading. unanimous. Motion carried. Resolution No. 10-R-01 5. ? Consideration and/or action approving a resolution naming Schertz Bank and Trust as the City?s depository bank and authorizing a Bank Depository Agreement with Schertz Bank & Trust, and other related matters in connection therewith. (J. Santoya) Mayor Baldwin recognized Finance Director Juan Santoya who introduced this item stating that action names Schertz Bank and Trust as the City?s depository bank for a period of three (3) years beginning February 1, 2010 to February 1, 2013. Mayor recognized Councilmember Trayhan who asked for confirmation that this was a three-year contract and it had the capability of being renewed after that. Mr. Santoya concurred. At the request of Councilmember Fowler, Mr. Santoya briefly went over the bid process. Mayor Baldwin recognized Councilmember Trayhan who moved, seconded by Vote was unanimous. Mayor Pro-Tem Scagliola to approve Resolution No. 10-R-01. Motion carried. Resolution No. 10-R-02 6. ? Consideration and/or action approving a resolution naming the City?s newspaper of record. (M. Ybarra/B. Dennis) ðïóðëóîðïð Ó·²«¬»­Ð¿¹»ó í ó Mayor Baldwin recognized City Attorney Michael Spain who introduced this item stating that after the Council received the information in their packet on this item he contacted Erik Garza with the Herald and explained to him that the Herald did not nd qualify as a ?newspaper of record? due to the 2 class bulk mail permit. Mr. Spain further explained that the resolution that he passed out this evening reflects that the Daily Commercial Recorder will be the City of Schertz newspaper of record and that the Herald would publish the notices free of charge. Mr. Spain further explained to Council the definition of general circulation. Mr. Spain recommended approval. City Secretary Brenda Dennis stated that this item came about due to the merge of the Daily Commercial Recorder and the San Antonio Express News ?Herald? and that her office noticed that the City was being charged more for legal notices, thus the solicitations of RFP?s to specific newspapers to receive pricing. She further stated that the pricing received would save the City money. Mayor Baldwin recognized Councilmember Trayhan who moved, seconded by Vote was Councilmember Carpenter to approve Resolution No. 10-R-02. unanimous. Motion carried. Resolution No. 10-R-03 7. ? Consideration and/or action approving a resolution creating and providing 2010 funding to the Hal Baldwin Scholarship, and appointing Members of the 2010 Hal Baldwin Scholarship Committee, and resolving other matters in connection therewith. (M. Spain) Mayor Baldwin started that he would step down from the Dias on this issue and turn over agenda item 7 to the Mayor Pro Tem. Mayor Pro-Tem Scagliola recognized City Attorney Michael Spain who introduced this item stating that by Resolution No. 09-R-03, the City Council established the Hal Baldwin Scholarship to encourage graduating high school seniors who live in Schertz to pursue careers in public service. Staff recommends the same advisory committee as in 2009, which include: John Trayhan, Michael Carpenter, Steve White, Gina Agee and Michael Spain. Mayor Pro-Tem Scagliola recognized Councilmember Fowler who asked if the committee received more donations would the committee allow additional awards. Councilmember Carpenter stated that he believed if there were significant donations and significant applicants, then the Committee could decide at that point to award more scholarships. Mayor Pro-Tem Scagliola recognized Councilmember Trayhan who moved, Vote seconded by Councilmember Carpenter to approve Resolution No. 10-R-03. was unanimous. Motion carried. Mayor Baldwin returned to the Dias and recognized City Attorney Michael Spain who stated that he did have an item for executive session but that the party had not arrived and suggested that the Council move to item 9. Requests and Announcements ðïóðëóîðïð Ó·²«¬»­Ð¿¹»ó ì ó 9. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. No requests given. 10. Requests by Mayor and Councilmembers to City Manager and Staff for information. Mayor Baldwin recognized Mayor Pro-Tem Scagliola who asked when the Blue Ribbon Committee item would be coming to Council. City Manager Don Taylor stated that the management staff is working on finalizing the selection committee and that due to the insufficient time to coordinate the committees and meet; the city would be looking into a possible bond election in November instead of May. 11. Announcements by Mayor and Councilmembers City and community events attended and to be attended City Council Committee and Liaison Assignments (see assignments below) Continuing education events attended and to be attended Recognition of actions by City employees Recognition of actions by community volunteers Upcoming City Council agenda items Mayor Baldwin recognized Councilmember Fowler who wished everyone a happy and successful new year. 12. Announcements by City Manager Recognition of City employee actions New Departmental initiatives No announcements given. Mayor recognized Henry Gutierrez with Bexar Waste who came forward announcing that he has negotiated rates with BFI at $30 per ton for disposal in 2010, $32.50 for 2011 and $35.00 in 2012. He stated that they have a fee per load and field recoveries rates, which he has rejected and is still in negotiations. EXECUTIVE SESSION Called under Section 551.071 Texas Government Code Litigation, pending litigation; Section 551.072 Texas Government Code - Deliberation regarding the purchase, exchange, sale, lease, or value of real property. Section 551.074Deliberate the appointment, employment, evaluation, ? Called Under reassignment, duties, discipline or dismissal of the City Secretary. ðïóðëóîðïð Ó·²«¬»­Ð¿¹»ó ë ó Mayor Baldwin adjourned into executive session at 7:10 p.m. RECONVENE TO REGULAR SESSION Mayor Baldwin reconvened into Regular Session at 9:11 p.m. 8. Take any actiondeemed necessary as a result of the Executive Session. No action taken. ADJOURNMENT As there was no further action, Mayor Baldwin adjourned the meeting at 9:15 p.m. ___________________________________ Hal Baldwin, Mayor ATTEST: ______________________________________ Brenda Dennis, TRMC, CMC City Secretary ðïóðëóîðïð Ó·²«¬»­Ð¿¹»ó ê ó Agenda No. 3 CITY COUNCIL MEMORANDUM City Council Meeting: January 12, 2010 Department: Planning Subject: Ordinance No.10-A-01 - Annexation of CCMA Property and Crescent Bend Park (Final Reading) BACKGROUND Ordinance No. 10-A-01 provides for the annexation of approximately 496.59 acres, composed of approximately 310.04 acres owned by CCMA and approximately 186.55 acres which constitute Crescent Bend Park. City Council passed this on first reading at their meeting of January 5, 2010. FISCAL IMPACT Neither property will be on the tax rolls. RECOMMENDATION Approve final reading of Ordinance No. 10-A-01 ATTACHMENT Ordinance No. 10-A-01 CCM Ordn 10-A-01.doc ORDINANCE NO. 10-A-01 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ PROVIDING FOR THE EXTENSION OF THE BOUNDARY LINES OF THE CITY OF SCHERTZ, TEXAS BY THE ANNEXATION OF APPROXIMATELY 496.59 ACRES, BEING APPROXIMATELY 310.04 ACRES LOCATED WEST OF THE LOST MEADOWS SUBDIVISION AND APPROXIMATELY 186.55 ACRES KNOWN AS CRESCENT BEND PARK; AND RELATED MATTERS WHEREAS, the City Council of the City of Schertz (the ?City?) has determined that it should annex the territory described on Exhibit A attached hereto and made a part hereof (the ?Annexed Land?); and WHEREAS, the Annexed Land is located entirely within the extraterritorial jurisdiction of the City, is contiguous to the corporate boundaries of the City, and may be annexed pursuant to Chapter 43 of the Texas Local Government Code, as amended (the ?Act?); and WHEREAS, the City has complied with all requirements of the Act relating to annexation of the Annexed Land; and WHEREAS, the City Council of the City finds that (i) the Annexed Land is suitable for municipal purposes and (ii) it is in the best interest of the City and the citizens and inhabitants thereof that the Annexed Land be annexed to and made a part of the City. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: SECTION 1.The City hereby annexes the Annexed Land described in Exhibit A. SECTION 2.The Annexed Land shall be included within the City?s corporate limits, effective on the effective date of this Ordinance, and all taxable property in the Annexed Land shall hereafter bear its pro rata part of the taxes levied by the City, subject to allowable exemptions. SECTION 3.The inhabitants of the Annexed Land shall be entitled to all of the rights and privileges of all the citizens of the City and shall be bound by the acts, ordinances, resolutions, and regulations of the City. SECTION 4.This Ordinance shall be in force and effect from and after its final passage. [The remainder of this page intentionally left blank.] Ordn 10-A-01.doc PASSED AND APPROVED on first reading the 5th day of January, 2010. th PASSED AND FINALLY APPROVED on second and final reading the 12 day of January, 2010. Mayor ATTEST: City Secretary [CITY SEAL] S-1 Ordn 10-A-01.doc EXHIBIT A PROPERTY TO BE ANNEXED A-1 Ordn 10-A-01.doc A-2 Ordn 10-A-01.doc A-3 Ordn 10-A-01.doc A-4 Ordn 10-A-01.doc A-5 Ordn 10-A-01.doc A-6 Ordn 10-A-01.doc A-7 Ordn 10-A-01.doc A-8 Ordn 10-A-01.doc A-9 Ordn 10-A-01.doc A-10 Ordn 10-A-01.doc A-11 Ordn 10-A-01.doc A-12 Ordn 10-A-01.doc A-13 Ordn 10-A-01.doc A-14 Ordn 10-A-01.doc Agenda No. 4 CITY COUNCIL MEMORANDUM City Council Meeting: January 12, 2010 Department: Public Works Subject:Ordinance 10-F-02 - Solid Waste Franchise (Final Reading) BACKGROUND City Staff recommends an amendment to the City?s solid waste franchise ordinance permitting (i) homeowners or their contractors and (ii) commercial contractors, to haul off debris from minor construction and clean-up activity. City Council passed this on first reading at their January 5, 2010 meeting. FISCAL IMPACT None RECOMMENDATION Staff recommends approving final reading of Ordinance No. 10-F-02 ATTACHMENT Ordinance No. 10-F-02 CCM Ordn 10-F-02.doc ORDINANCE NO. 10-F-02 AN ORDINANCE AUTHORIZING AN AMENDMENT TO CITY ORDINANCE 07-F-07, AS AMENDED, RELATING TO THE FRANCHISE OF CIBOLO WASTE, INCORPORATED, DBA BEXAR WASTE INC., FOR MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL RELATING TO TEMPORARY AND PERMANENT ROLL-OFF CONTAINERS; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, it is in the public interest and necessary to protect the health and safety of the citizens of Schertz to have a municipal solid waste collection and disposal franchise service in the City of Schertz, Texas; and WHEREAS, the City has, by Ordinance No. 07-F-07, as amended, awarded a solid waste collection and disposal franchise (the ?Franchise?) to Cibolo Waste, Incorporated, dba Bexar Waste, Inc. (the ?Franchisee?); and WHEREAS, the City has requested an amendment to the use of temporary and permanent roll-off containers under the Franchise. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: I That Section 6. TEMPORARY AND PERMANENT ROLL OFF CONTAINERS is amended to read: a. Rocks, waste, scrap, building materials, or other trash resulting from construction or major remodeling; resulting from a general cleanup of vacant or improved property just prior to its occupancy; or resulting from sizable amounts of trees, brush and debris cleared from property in preparation for construction, will be removed by the FRANCHISEE as part of the regular service but rates will be derived from Exhibit 1. b. Trash or construction debris resulting from minor remodeling, roofing, brush chipping, tree trimming, siding installation or replacement and similar construction activity which is performed by (i) the homeowner and/or his chosen contractor or (ii) at a temporary commercial job site in connection with minor repairs which results in trash or construction debris may be removed daily by hauling the materials off-site; and no FRANCHISEE container will be required. c. When the City determines that the scope of work requires a roll off or front load container; or a roll off or front load container is requested by the homeowner and/or his chosen contractor; or is requested at a temporary commercial job site, then a FRANCHISEE container shall be required and the contents shall be hauled off by the FRANCHISEE. 50057104.1 d. For the purpose of this amendment, third party is defined as someone other than the property owner or agent or his chosen contractor that is performing the temporary work required. e. The provisions of this Section 6 do not apply to new development or new construction. II Section 1. City of Schertz Ordinance No. 07-F-07, as previously amended, is hereby amended solely to the extent set forth in this Ordinance, and Ordinance No. 07-F-07, as previously amended, is hereby otherwise confirmed and ratified. Section 2. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, and such holdings shall not affect the validity of the remaining portions thereof. Section 3. This Ordinance shall be effective from and after the date of its final adoption, acceptance by the Franchisee on page S-2, and any publication required by law. III th PASSED ON FIRST READING, the 5 day of January 2010. th PASSED, APPROVED, AND ADOPTED ON SECOND READING the 12 day of January, 2010. Mayor, City of Schertz, Texas ATTEST: City Secretary, City of Schertz, Texas (Seal of City) ACCEPTED: CIBOLO WASTE, INCORPORATED, AS FRANCHISEE By: 50057104.1 Title: Notice Address: Cibolo Waste, Incorporated Dba Bexar Waste P.O. Box 519 Schertz, TX 78154 Attention: Henry Gutierrez State of Texas County of Guadalupe This instrument was acknowledged on __________ _____, 2010 by Henry Gutierrez, President of Cibolo Waste, Incorporated, a Texas corporation, on behalf of such corporation. (NOTARY SEAL) Notary Public Commission Expires 50057104.1 Agenda No. 5 CITY COUNCIL MEMORANDUM/RESOLUTION City Council Meeting: January 12, 2010 Department: Parks, Recreation and Community Services Subject:Request for Qualifications for Energy Services Companies BACKGROUND On November 3, 2009, the City Council approved a resolution to pursue an Energy Efficiency and Conservation Block Grant from the State of Texas. The City of Schertz has submitted its resolution and letter of intent to the State Energy Conservation Office (SECO). The City of Schertz is entitled to $86,375 from SECO. This funding is available through the American Reinvestment and Recovery Act of 2009. The City of Schertz Purchasing and Asset Management Department advertised a Request for Proposals (RFQ) for Energy Savings Performance Companies (ESPC), that can provide both auditing and the installation of retrofit devises to our existing city buildings, parks and city- owned facilities. The RFQ opened December 30, 2009. We received one Proposal from McKinstry Essention Inc., a national ESPC. Energy Savings Performance Contractors audit, identify and evaluate energy savings opportunities and then recommend a package of improvements, and provide the installation of the improvements that will be paid for through savings once these recommendations are implemented. McKinstry will provide a detailed energy audit, identifying measures the City can take to realize energy savings. After McKinstry completes the audit portion of its contract, it will make recommendations for energy savings for city buildings, facilities and parks. These recommendations will include the installation of distributed energy technologies including heating and cooling system retrofits and upgrades, the installation of new lamps, lights and renewable energy technologies on government buildings and facilities. McKinstry will then monitor its recommendations for continued savings throughout the contract term with the City. These recommendations come with guaranteed savings. If any of McKinstry?s recommended retrofits or upgrades do not deliver the savings identified, McKinstry will pay the difference. McKinstry comes highly recommended from Brandt Engineering, a local Schertz engineering company. I have called several of McKinstry?s references included in its proposal and all references were positive with respect to McKinstry?s energy performance contracting. FISCAL IMPACT $86,375 reimbursable grant entitlement from SECO. RECOMMENDATION Staff recommends accepting McKinstry?s proposal for energy auditing, future state energy grant recommendations and energy efficient programs and project recommendations not to exceed $86,375 and recommends that the City Attorney prepare a contract documenting McKinstry?s and the City?s obligations for Council?s approval. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ: That the above stated staff recommendations are hereby approved and authorized. PASSED AND APPROVED at a regular meeting of the City Council of the City of Schertz, Texas this 12th day of January, 2010, at which meeting a quorum was present, held in accordance with the provisions of Texas Government Code, §551.001 et seq. APPROVED _________________________ Hal Baldwin, Mayor ATTEST: __________________________ Brenda Dennis, City Secretary ATTACHMENT Resolution # 2009RF56 McKinstry RFQ Executive Summary Agenda No. 6 CITY COUNCIL MEMORANDUM/RESOLUTION City Council Meeting: January 12, 2010 Department: Human Resources Subject:First Check Background Check Services Agreement BACKGROUND Since 2006, outsourcing background services for pre-employment background checks has been researched. We have considered five different agencies over the past 3 years. Three were considered in 2009. We selected and budgeted for background services from First Check. They work with the North Texas Municipal Alliance, they are based in Southlake Texas and have been doing background checks since 1999. They offer the most competitive pricing and they are Fair Credit Reporting Act compliant. The cost of these services was approved in the FY0910 Budget. These services are at will. We may stop using their services at any time or continue with them as long as we are happy with their services. FISCAL IMPACT Estimated budgeted cost $2,750. RECOMMENDATION Recommend approval of membership application for First Check Background services. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ: That the above stated City of Schertz City Council recommends approval of membership application for First Check Background services. PASSED AND APPROVED at a regular meeting of the City Council of the City of Schertz, th Texas this 12 day of January 2010, at which meeting a quorum was present, held in accordance with the provisions of V.T.C.A., Government Code, §551.001 et seq. APPROVED ______________________________ Hal Baldwin, Mayor ATTEST: ________________________________ Brenda Dennis, City Secretary January 12, 2010 City of Schertz 51 X ddykes@schertz.com www.schertz.com 1400 Schertz Parkway Schertz TX 78154 210 619-1150 210 619-1159 X Not Applicable Not Applicable City Government X X Reports for 2 and up to 15 new hires estimated per month X X For Pre-Employment Background Screenings, Subject to our document retention policy and the Texas Public Records Information Act Donna Dykes. Human Resources Director 210 619-1152 City of Schertz, 1400 Schertz Parkway 210 619-1159 Schertz Texas 78154 Not Applicable City of Schertz, Texas Not Applicable January 12, 2010 Don Taylor City Manager , subject to the Texas Public Information Act. City of Schertz, Texas , Human Resources Department 1400 Schertz Parkway, Schertz, Texas 78154 210-619-1152 210-619-1159 Donna Dykes Human Resources Director January 12, 2010 user , subject to our document retention policy and Texas Public Information Act. , subject to our document retention policy and Texas Public Information Act. January 12, 2010 City of Schertz City Manager Estimated total new hires for 2009-2010 50. 50 times $12.00 per check, $600. plus? For each additional county check estimate $10.00 plus court access fees, state fees, county fees. We have 3 counties in Schertz. If additional 20.00 for 2 additional county checks per hires, National Criminal Search is $12.00; Federal Criminal Search is $9.00. For the bundled check for $12.00 plus 2 additional counties plus National Criminal Check and Federal Criminal check, estimate $55.00 per check. Times 50 hires: Estimate $2,750. Payments are due in 30 days after the invoice date. (Net 30) First Check will bill the City at the end of each month. This agreement is an "at will" agreement, meaning that the City can stop using First Check services at any time. There is no end date on this agreement. Signed____________________________________ Date__________________________ Company__City of Schertz____________________ Position_City Manager____________