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2012-13 City CharterCITY OF SCHERTZ, TEXAS HOME RULE CHARTER• The City's Home Rule Charter is set out herein as adopted by the people at an election held on April 6, 1974, as amended by elections on Apri17, 1979, May (, 1989, May 7, 1994, May 3, 1997, May 13, 2006, November 4, 2008, and November 6, 2012. The parenthetical note at the end of certain sections indicates the election{s) at which that section was amended. 50116599.2 ARTICLE I NAME OF CITY AND BOUNDARIES ......................................................... 2 Section 1.01 Name ................................................................................................. ...2 Section 1.02 Boundaries; Extension, Annexation and Disannexation ................... ... 2 ARTICLE II POWERS OF THE CI'I'Y ............................................................................. ... 3 Section 2.01 General Powers ................................................................................. ... 3 Section 2.02 Intergovernmental Relations ............................................................. ... 3 ARTICLE III FORM OF GOVERNMENT ........................................................................ ... 4 Section 3.01 Establishment .................................................................................... ... 4 ARTICLE IV THE CI'T'Y COUNCIL .................................................................................. ... 5 Section 4.01 Number, Selection and Term ............................................................... 5 Section 4.02 Qualifications ....................................................................................... 5 Section 4.03 Judge of Election Qualifications .......................................................... 5 Section 4.04 Compensation ...................................................................................... 5 Section 4.05 Mayor and Mayor Pro-Tem,.......... ...................................................... 5 Section 4.06 Vacancies, Forfeiture, Filling of Vacancies ......................................... 6 Section 4.07 Prohibitions ........................................................................................ .. 6 Section 4.08 Powers of the City Council ................................................................ .. 7 Section 4.09 Meetings and Procedure ..................................................................... .. 7 Section 4.10 Inquiry Powers ............................. 8 ...................................................... .. ARTICLE V CITY MANAGER ......................................................................................... .. 9 Section 5.01 Appointment; Qualifications; Compensation .................................... .. 9 Section 5.02 Acting City Manager .......................................................................... .. 9 Section 5.03 Powel•s and Duties of City Manager .................................................. .. y ARTICLE VI OTHER DEPARTMENTS, OFFICES OR AGENCIES ............................... 11 Section 6.01 General Provisions .......................................... 11 ................................... Section 6.02 Personnel Rules .................................................................................. 1 I Section 6.03 City Attolney ..................................................................................... 11 Section 6.04 Judge of the Municipal Coult ............................................................ I 1 Section 6.05 Terms of Office of City Attorney and Municipal Judge .................... 12 Section 6.06 City Secretary ..................................................................................... 12 Section 6.07 Tax Assessor-Collector ...................................................................... 12 ARTICLE VII FINANCIAL PROCEDURES ....................................................................... 14 Section 7.01 Fiscal Year ......................................................................................... 14 50116549.2 i Section 7.02 Submission of Budget ........................................................................ 14 Section 7.03 Budget Message ................................................................................ . 14 Section 7.04 Budget Contents ................................................................................ . 14 Section 7.05 Capital Improvements Program ......................................................... 15 Section 7.06 City Council Action on Budget .......................................................... 15 Section 7.07 Amendments After Adoption ............................................................. 16 Section 7.08 Purchase Procedures .......................................................................... 16 Section 7.09 Lapse of Appropriations .................................................................... 16 Section 7.10 Director of Finance ............................................................................ 17 Section 7.11 Audit .................................................................................................. 18 ARTICLE VIII PLA NNING, ZONING AND ADJUSTMENTS ........................................... 19 Section 8.01 Planning and Zoning Commission ..................................................... 19 Section 8.02 Boal•d of Adjustment .......................................................................... 19 ARTICLE IX NOMINATIONS AND ELECTIONS ........................................................... 20 Section 9.01 City Elections ..................................................................................... 20 Section 9.02 Candidates .......................................................................................... 20 Section 9.03 Determination of Election Results ..................................................... 20 Section 9.04 City Council Ballots ........................................................................... 21 Section 9.05 Ballots for Ordinances and Charter Amendments ............................. 21 ARTICLE X INITIATIVE, REFERENDUM AND RECALL ........................................... 22 Section 10.01 General Authority .............................................................................. 22 Section 10.02 Commencement of Proceedings; Petitioners' Committee; Affidavit ............................................................................................. 22 Section 10.03 Petitions .............................................................................................. 22 Section 10.04 Procedure After Filing ...................................................................... 23 Section 10.05 Referendum Petitions; Suspension of Effect of Ordinance ............... 24 Section 10.06 Action on Petitions ............................................................................. 24 Section 10.07 Results of Election ............................................................................. 25 Section 10.08 Limitation on Recall .......................................................................... 25 ARTICLE XI PUB LIC UTILITIES ..................................................................................... 26 Section 11.01 Powers of the City .............................................................................. 2b Section 11.02 Franchises .......................................................................................... 26 Section 11.03 Franchise Value Not To Be Allowed ................................................. 26 5011b599.2 11 Section 11.04 Right of Regulation ............................................................................ 26 Section 11.05 Franchise Records .............................................................................. 27 Section l1.OC Regulations of Rates and Service ...................................................... 27 ARTICLE XII GENERAL PROVISIONS ............................................................................ 29 Section 12.01 Personal Financial Interest ................................................................. 29 Section 12.02 Prohibitions ........................................................................................ 29 Section 12.03 Liability for Personal Injuries or Death ............................................. 30 Section 12.04 Chaster Amendment ........................................................................... 30 Section 12.05 Chalter Review Commission ............................................................. 31 Section 12.06 Separability ........................................................................................ 31 Section 12.07 State Law ........................................................................................... 31 Section 12.08 Headings ............................................................................................ 32 50116599.2 lli PREAMELE The citizens of the City of Schertz, in the Counties of Guadalupe, Bexar and Comal, State of Texas, being aware that their community is becoming ever larger and more prosperous and that ever increasing growth and prosperity a1'e certain, desire to plan, regulate and control the affairs of the City to the fullest extent possible under the Constitution and general laws of this State. In this spirit, the citizens of the City of Schertz do hereby ordain this the Charter of the City of Schertz and accept the duties and responsibilities which it imposes and the privileges which it grants. (Election of 5-fi-89, 5-3-47) [End of Preamble] 56116599.2 ARTICLE I NAME OF CITY AND BOUNDARIES Section 1,01 Name. Those persons residing within the limits of the City, as those limits now are or as they may be in the future changed, ace hereby constituted and shall continue to be a municipal body politic to exist in perpetuity under the name "CITY 4F SCHERTZ" hereinafter referred to as the "City". (Election of 5-3-97) Section 1.02 Boundaries; Extension, Annexation and Disannexation. (a) Boundaries. The bounds and Limits of the City are hereby established and described as those which exist under authority of the cu~xent City ordinances and displayed on a map maintained by the City Secretary and those boundaries established and changed hereafter as provided; such map to be maintained hereafter by the City Manager and maintained in a public place. (b) Extension of Boundaries• Annexation of Territor . The City Council shall have the power by ordinance to annex territory lying adjacent to the City, with or without the consent of the owners or inhabitants thereof, thereby extending and enlarging the bounds and limits of the City. Such annexations shall be limited and controlled by the applicable annexation laws of the State. (c) Disannexation. Any area hereafter annexed under this Charter and the law of this State may be disannexed only in accordance with State law. (Election of 5-3-97, 5-13-Ob) [End of Article I] 50116599.2 2 ARTICLE II POWERS OF THE CITY Section 2.01 General Powers. The City shall have all the powers granted to cities by the Constitution and general laws of the State together with all of the implied powers necessary to execute such granted powers. The City may use a corporate seal; may sue and be sued; may contract and be contracted with; may cooperate with the government of the State or any agency or any political subdivision thereof, or with the federal government or any agency thereof, to accomplish any lawful pu~pase for the advancement of the interest, welfare, health, morals, comfort, safety, and convenience of the City and its inhabitants; may acquire property within or without its corporate limits for any municipal purpose in fee simple, or in any lesser interest or estate, by purchase, gift, devise, lease or condemnation; may sell, lease, mortgage, hold, manage, improve, and control such property as may now or hereafter be owned by it; may issue bonds upon the credit of the City for the purpose of making permanent public improvements or for other public purposes in the amount and to the extent permitted by applicable law, subject to the approval of the voters of the City as required by State law; and may pass ordinances and enact such regulations as may be expedient for the maintenance of good government, order and peace of the City and the welfare, health, txlorals, comfort, safety, and convenience of its inhabitants. In addition to the powers enumerated herein, and subject only to the limitations imposed by the Constitution, the general laws of the State, and this Charter, the City shall have without the necessity of express enumeration in this Charter, each and every power, which by virtue of Article XI, Section 5 of the Constitution of Texas, the people of the City are empowered by election to grant to or confer upon the City by expressly and specifically granting and enumerating the same herein. (Election of 5-6-89, 5-3-47, 5-13-06) Section 2.02 Intergovernmental Relations. The City may exercise any of its powers or perform any of its functions and may participate in the financing thereof, jointly or in cooperation, by contract ar athei~vvise, with any one or more state or civil divisions or agencies thereof, or the federal government or any agency thereof. (Election of 5-6-89, 5-3-97, 5-13-Q6) [End of Article lI] SOI Ib599.2 3 ARTICLE III FORM OF GOVERNMENT Section 3.01 Establishment. The municipal government provided by this Charter shall consist of a Mayor and Councilmembers, elected by the people and responsible to the people, and a City Manager, appointed by and responsible to the City Council for proper administration of the affairs of the City. Pursuant to its provisions and subject only to the limitations imposed by the Constitution and general laws of the State and by this Charter, all powers of the City shall be vested in the elected Mayor and Councilmembers, who shall enact local legislation, adopt budgets and determine policies. All powers of the City shall be exercised in the rrlanner prescribed by this Charter, or if not prescribed, then as may be prescribed by ordinance. (EIection of 5-6-89, 5-3-97, 5-13-Q6) [End of Article III] 50116599.2 4 ARTICLE IV THE CITY COUNCIL Section 4.01 Number, Selection and Term. The City Council shall be composed of the Mayor and five Councilmembers. The Mayor and all Councilmembers shall be elected from the City at large. Subject to Section 4.06(c), the Mayor and Councilmembers shall be elected in the manner provided in Section 9.01 of this Charter for two-year terms. Each Councilmember shall occupy a position on the City Council, such positions being numbered Place One through Place Five. At the first general election held under this Charter and each odd-numbered year thereafter, Councilmembers to fill Places Three, Four, and Five shall be elected. The following year and each even-numbered year thereafter, the Mayor and the Councilmembers filling Places One and Two shall be elected. (Election of 5-6-89, 5-3-97, 5-13-06) Section 4.D2 Qualifications. The Mayor and each Councilmember must, at the time of filing for office, have attained the age of eighteen, be a registered voter, and have been a resident of the City for at least six consecutive months immediately preceding filing for office, and not be an obligor to the City on any obligation past due, provided, however, that a person maybe elected and hold office if Bach obligation is being actively contested in the appropriate forum. {Election of 4-7-79, 5-6-89, 5-3-97, 5-13-06, 11-4-05) Section 4.D3 Judge of Election Qualifications. The City Council is the final judge of alI elections and the qualifications of its members and any other elected officials of the City. Section 4.D4 Compensation. Members of the City Council shall serve with such compensation as determined by the City Council. An increase in compensation shall not be effective for any member of the City Council during the term for which he or she was elected and the increase was approved. Payment of expenses incuared in performance of official duty may be approved by the City Council. {EIection of 5=6-89, 5-13-06) Section 4.D5 Mayor and Mayor Pro-Tem. The Mayor shall be the official head of the City government. He or she shall be the chairman and shall preside at all meetings of the City Council. The Mayor may vote only in the event of a tie. He or she shall, when authorized by the City Council, sign alI official documents such as ordinances, resolutions, conveyances, grant agreements, official plats, contracts, and bonds. He or she shall appoint special committees as instructed by City Council, with committee membership to be composed of nominees by the City Council. He or she shall perform such other duties consistent with this Charter or as may be imposed upon him or herby City Council. The Mayor shall not have veto powers. 5U1 !6599.2 5 The Mayor Pro-Tem shall be a Councilmember appointed by the City Council for a term and pursuant to procedures established by the City Council from time to time. The Mayor Pro- Tem shall act as Mayor during the absence or disability of the Mayor and in this capacity shall have the rights conferred upon the Mayor. While acting as Mayor, the Mayor Pro-Tem may vote on any matter before the City Council (Election of 4-7-79, 5-5-89, 5-3-97, 5-13-06, 11-06-12) Section 4.06 Vacancies, Forfeiture, Filling of Vacancies. (a) Vacancies. The office of a Councilmember or the office of the Mayol• shall become vacant upon his or her death, mental or physical disability, resignation, removal from office in any manner authorized by law, or forfeiture of his or her office. Determination of mental or physical disability shall be certified by two physicians qualified to practice medicine in the State. (b} Forfeiture. The Mayor or a Councilmember shall forfeit his or her office upon: (1) Final conviction of a felony or of an offense involving moral turpitude. (2) Ceasing to be a resident of the City. (3) Nailure to regularly attend City Council meetings without good cause. Good cause shall be illness or temporary disability, absence from the City, or family emergency. There shall be a presumption of failure to regularly attend when more than thlee consecutive regular meetings are missed, (Election of 5-6-89, 5-3-97, 5-13-06) (c) Filling Vacancies. (1) In the event of a single vacancy in the City Council, if there are 365 days or more remaining on the term of the vacated City Council position, the City Council shall call a special election to fill such vacancy. If there are less than 365 days remaining in the term of the vacated City Council position, the City Council may, by majority vote of the remaining Councilmembers, at its discretion appoint a new Mayor or Councilmember to fill such vacancy or call a special election to fill such vacancy. (Election of 11-~-08} (2} When more than one vacancy on the City Council shall exist at any time, a special election to fill such vacancies shall be called by the City Council, (Election of 5-13-06) Section 4,07 Prohibitions (a) Holding other Office. No Mayor or Councilmember shall hold any other public office or employment with the City nor have any financial interest, directly or indirectly, in any City contract or transaction; and no former Mayor or Councilmember shall hold any compensated City office or employment until two (2) years after the expiration of the term for which he or she was elected to the City Council. (Election of 11-4-OS} 50 L 16599.2 6 {b} Appointments and Removals. Neither the City Council nor any of its members shall in any manner dictate the appointment or removal of any City administrative officer or employee whom the City Manager or any of his or her subordinates are empowered to appoint, unless otherwise provided in this Charter, but the City Council may express its views and fully and freely discuss with the City Manager anything pertaining to appointment and removal of such officers and employees. (c) Interference with Administration. Except for the purpose of inquiries, unless otherwise provided in this Charter, the City Council or its members shall deal with City officers and employees who are subject to the direction and supelvisian of the City Manager solely through the City Manager, and neither the City Council nor its members shall give orders to any such officer or employee, either publicly or privately. (d) Admission of Liabilit . Neither the City Council nor any of its members or employees of the City shall accept or admit liability or pay any claim for damages asserted against the City without first obtaining a written opinion from the City Attorney regarding the City's liability therein. (Election of 5-6-$9, 5-3-97, 5-13-06} Section 4.OS Powers of the City Council. All City powers shall be vested in the City Council, except as otherwise provided by law ar this Charter. (Election of 5-13-06) Section x.09 Meetings and Procedure. (a} Date Time Place and Notice. The City Council shall meet at least once each month at a time and place prescribed by ordinance. Special meetings may be called by the Mayor, the City Manager, or on application of three Counci3members. Written notice of the date, place and subject of each meeting shall be posted in the City HaII and written notice of no Iess than twelve hours {two hours in the event of an emergency meeting of the City Council) shall be given to each Councilmember. (b) Open Meetings. Meetings shall be open to the public in accordance with applicable State law. (c) uorum. Three Councilmembers (excluding the Mayor) shall constitute a quoz~zm, and no action shall be valid unless adopted by the affirmative vote of tluee or more members of the City Council. If the Mayor Pro-Tem is presiding, he or she shall be counted for puzposes of determining a quozum. (d) Ruies of Procedure. The City Council shall, by ordinance, determine its awn rules and order of business, provided, however, that the citizens of the City shall have a reasonable opportunity to be heard at any meeting with regard to any matter relevant to the government of the City except at such meetings of the City Council as may be closed to the public as permitted by State law. Provision shall be made for the taking of minutes, which minutes shall be a public record. Voting, except on procedural matters, shall be by roll call and the ayes and nays shall be recorded in the minutes. 50116599.2 7 (e} Passage of Ordinances and Resolutions. Ordinances and resolutions shall be intraduced to the City Council only in written or printed form. The subject or subjects of all ordinances and resolutions shall be clearly expressed in the title. Except as may otherwise be prescribed in this Charter, an ordinance shall not be passed at the meeting of the City Council at which it is first introduced, but instead the ordinance or its caption shall be read, and the City Council will determine whether it shall be rejected ar further considered at a subsequent meeting of the City Council. If rejected, no further action shall be required. The City Council must take second and final consideration of any ordinance not later than sixty days after the first reading of such ordinance. Notwithstanding the foregaigg provisions, if the City Council, by a vote of not less than two-thirds of the members present at the meeting at which an ordinance is first introduced, determines that an emergency exists requiring immediate action, such ordinance may then be voted upon and rejected or passed at that meeting. The "ayes" and "nays" shall be taken upon the passage of all ordinances and resolutions and entered in the minutes of the City Council. The affirmative vote of three or more members of the City Council is required to enact any ordinance or resolution. The Mayor shall vote only in the event of a tie; the Mayor Pro-Tem may vote on any matter being considered by the City Council. The enacting clause of all ordinances shall be, "BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS", and every ordinance shall be authenticated by the signature of the Mayor and the City Secretary and shall be systematically retarded and indexed in an ordinance book in a manner approved by the City Council. (1) Franchise ordinances. All ordinances granting, confirming, extending, renewing or amending a faanchise shall be accepted in writing by the grantees, and the full text thereof shall be placed on the City's website for at least one week prior to final adoption of the franchise ordinance. (2) Effective date. Every ordinance passed by the City Council shall be enrolled by the City Secretary as soon as practicable after its passage. If the ordinance was published, he or she shall note the time and place of publication which shall be prima facie proof of publication thereof. T'he affidavit by the printer or publisher shall also be prima facie proof of the publication. Enrollment of an ordinance shall be prima facie proof of its legal adoption and effect. (3) Codification of ordinances. The City Council shall have the power to cause the ordinances of the City to be corrected, amended, revised, codified and printed in code form as often as the City Council deems advisable, and such printed code, when adopted by the City Council, shall be in full force and effect without the necessity of publishing the same or any part thereof in a newspaper. All printed ordinances or codes of ordinances shall be admitted as evidence in all courts without further proof and shall have the same force and effect as did the original ordinance. (Election of 5-6-89, 5-3-97, 5-13-06, 11-Ob-12) Section 4.1.0 Inquiry Powea•s. The City Council shall have the authority to inquire into the affairs of the City and the conduct of any City department, office, or agency. (Election of 4-7-79, 5-6-89, 5-3-97, 5-13-06) 54! 1b599.2 ~ g [End of Article 1V] ARTICLE V CITY MANAGER Section 5.0~ Appointment; Qaalifications; Compensation. The City Council shall appoint a City Manager and fix his or her compensation. He or she shall be chosen on the basis of his or her executive and administrative training, experience, ability and character. He or she need not be a resident of the City or State at the time of his or her appointment, but he or she must agree, prior to such appointment, to become a resident of the City within four months after the date of his or her appointment. if he or she thereafter fails to become a resident of the City within that four-month period, he or she shall be deemed to have forfeited his or her appointment and the office shall be declared vacant by announcement of the Mayor at the first meeting of the City Council following the expiration of the four-month period. The City Manager shall serve at the will and pleasure of the City Council. He or she shall be employed for or relieved from his or her duties by a vote of a majority of the members of the entire City Council. On the recommendation of the City Manager, the City Council may appoint one or more Assistant City Managers and set the compensation for such appointees. (Election of 5-6-89, 5-3-97, 5-13-06, 11-4-08) Section 5.02 Acting City Manager. By letter filed with the City Secretary the City Manager shall designate, subject to approval of the City Council, a qualified City administrative officer to exercise the powers and perform the duties of City Manager during his or her temporary absence or disability. During any vacancy in the office of City Manager, the City Council may appoint an Acting City Manager to perform the duties of City Manager. During such absence, disability, ar vacancy, the City Council may revoke such designation at any time and appoint another officer of the City to serve as Acting City Manager- until the City Manager shall return or his or her disability shall cease or such vacancy is filled. (Election of 5-fi-89, 5-13-06} Section 5.03 Powers and Derties of City Manager. The City Manager shall be the chief admnistrative officer of the City. He or she shall be responsible to the City Council for the administration of all City affairs placed in his or her charge by or under this Charter. He or she shall have the following powers and duties: (a} He or she shall appoint and, when he or she deems it necessary for the good of the City, suspend or remove City employees and appointive administrative officers provided for, by or under this Charter, except as otherwise provided by Iaw, this Charter, or personnel rules adopted pursuant to this Chatter. He or she may authorize any administrative officer who is subject to his or her direction and supervision ro exercise these powers with respect to subordinates in that officer's department, office or agency. (b} He or she shall direct and supervise the administration of all departments, offices and agencies of the City, except as otherwise provided by this Charter or by law. sai i 6s9s.a g {c) He or she shall attend all City Council meetings and shall have the right to take part in discussion but may not vote. (d) He or she shall see that all laws, provisions of this Charter and acts of the City Council, subject to enforcement by him ol- her or by officers subject to his or her direction and supervision, are faithfully executed. {e) He or she shall prepare and submit the annual budget and capital program to the City Council. (f) He or she shall submit to the City Council and make available to the public a complete report on the finances and administrative activities of the City as of the end of each fiscal year. (g) He or she shall make such other reports as the City Council may require concerning the operations of City departments, offices and agencies subject to his or her direction and supervision. (h} He or she shall keep the City Council fully advised as to the financial condition and future needs of the City and make such recommendations to the City Council concerning the affairs of the City. (i} He or she shall perform such other duties as are specified in this Charter or may be required by the City Council. (j) He or she shall keep a written inventory of all real property and all permanent equipment belonging to the City, said inventory to be subject to annual audit. A system shall be established to control the use and replacement of expendable items. (k) He or she shall have the authority to sign documents in the name of the City as authorized by the City Council. {Election of 4-7-79, 5-6-89, 5-13-06) [End of Article V] 50116599.2 1 a ARTICLE VI OTHER DEPARTMENTS, OFFICES OR AGENCIES Sectio~i 6.01 General Provisions. (a) Creation of Departments. The City Council may continue, discontinue or establish City departments, offices or agencies in addition to those created by this Charter and may prescribe the functions of all departments, offices and agencies. (b) Direction by City Manager. All departments, offices and agencies under the direction and supervision of the City Manager shall be administered by an officer appointed by and subject to the direction and supervisian of the City Manager. With the consent of the City Council, the City Manager may serve as the head of one or more such departments, offices or agencies or may appoint one person as the head of two or mare of them. (Election of ~4-7-79, 5-13-Ob) Section 6.02 Personnel Rules. The City Manager shall be responsible for the preparation of personnel rules, which rules shall be submitted by him or her to the City Council. The City Council may accept and adopt such rules as proposed or may adapt them with such amendments as the City Council deems necessary or may reject them in their entirety and direct the City Manager to further consider the rules and present new proposals at a subsequent meeting. {Election of 5-6-89, 5-13-06) Section 6.03 City Attorney. The City Council shall appoint a City Attorney far an indefinite term and fix his or her compensation. The City Attorney must be a member of the State Bar of Texas. He or she shall serve as chief legal advisor to the City, including the City Council, and, subject to applicable rules of the State Bar of Texas, the City Manager, supervisors of City departments and other City officers and agencies. He or she shall represent the City in all legal proceedings and shall perform any other duties prescribed by this Charter, ordinances of the City, or State laws. The City Council may retain an additional attorney or attorneys for the City when the City Attorney is absent or as other circumstances require. (Election of 5-6-89, 5-13-06) Section 6.04 Judge o~ the Municipal Court. The City Council shall establish a Municipal Court and shall appoint a Judge (and may appoint one or more deputy Judges) of the Municipal Courrt of the City and fix his ar her compensation. Sessions of the Municipal Court shall be held at such times as maybe determined by the Judge of the Municipal Court. When the Judge is absent, disabled or unable ko perform his or her duties for any cause, or his ar her office becomes vacant by reason of death, removal or resignation and no deputy Judge has been appointed, the City Council may appoint a special Judge of said court who shall serve until the Judge of said court returns to his or her duties or a successor is appointed and 50116599.2 11 qualifies or a deputy Judge is appointed and qualifies. (Election of 4-7-79, 5-6-89, 5-3-97, 5-13-Q6) Section 6.05 Terms of Office of City Attorney and Municipal Judge. Neither the City Atrorney nor the Judge of the Municipal Count shall have any specified term of office, but each shall serve at the will and pleasure of the City Council. Either of such officers may be appointed to or relieved from office by a majority vote of the City Council. Section 6.Ofi City Secretary. The City Council shall appoint a City Secretary and hislher deputy or deputies who shall act as Secretary of the City Cauncil and who shall hold office at the pleasure of the City Council. The City Secretary shall be the clerical officer of the City Council, and shall keep the minutes, agenda, ordinances and other official records of the City Council and the City. The City Secretary shall be the custodian of the official seal of the City, and shall have such other duties and powers prescribed in this Charter and by the City Council. The City Council will set the compensation for the City Secretary. The City Secretary shall report administratively to the City Manager but may be removed from office only by the City Council. (Election of 4-7-79, 5-6-89, 5-3-97,5-13-06) Section 6.07 Tax Assessor-Collector. (a) Assessor-Collector. The City Manager shall appoint, and may remove, the City's Assessor-Collector of taxes. The City Council may, in the interest of economy and efficiency and on the recommendation of the City Manager, authorize the City Manager to contract with an individual or another political subdivision as Assessor-Collecror to handle the assessment and/or collection of taxes, and no separate Assessor-Collector need be appointed in such case. The Assessor-Collector shall give a surety bond for the faithful performance of his or her duties including compliance with all controlling provisions of the State law bearing upon the functions of his or her office in a sum which shall be fixed by the City Council, but in no event shall the amount be less than twenty thousand dollars, the cost to be borne by the City; provided, if the Assessor-Collector is an officer of another political subdivision providing services to the City by contract and if the City Council determines that the Assessor-Collector's existing surety bond sufficiently protects the City, no further surety bond shall be required. (b) Power ro -Levy, Assess and Collect Taxes. The City shall have the power to assess, levy and collect an annual tax upon taxable property within the City not to exceed the maximum provided by the Constitution and general laws of the State. {e) Taxes, When Due and Payable. All taxes due the City shall be payable at the Office of the Assessor-Collector and may be paid at any time after the tax rolls for the year have been completed and approved, which shall be not later than October first. Taxes shall be paid before February 1, and all such taxes not paid prior to such date shall be deemed delinquent and shall be subject to such penalty and interest as authorized by applicable State law. The City Council may, by ordinance, provide a discount for prompt payment of current taxes. The City Council may contract with an attorney or attorneys for the collection of delinquent taxes as authorized by applicable State law. 50116594.2 12 (d) Arrears of Taxes Offset of Debt Against Citx. The City shall be entitled to counterclaim and offset against any debt, claim, demand or acca~ant owed by the City to any person, partnership, association or corporation who is in arrears to the City for taxes, in the amount of taxes so in arrears, and no assignment or transfer of such debt, claim, demand or account after the said taxes are due, shall affect the right of the City to so offset the said taxes against the same. (e) Tax Remissions, Discounts and Compronuses. Neither the City Manager nor the City Council shall have the right to forgive any current or delinquent taxes or penalty and interest related to taxation except in cases of error or otherwise as permitted by State law. (Election of S-f-89, 5-3-97, 5-13-06, 11-06-12) [End of Article VI] sai~6s9g.2 13 ARTICLE VII FINANCIAL PROCEDURES Section 7.01 Fiscal Year. The fiscal year of the City shall begin on the first day of October and end on the Last day of the following September. {Election of 5-13-06) Section 7.02 Submission of Budget. The City Manager shall submit to the City Council a budget for the ensuing fiscal year and an accompanying message not later than sixty days prior to the beginning of each fiscal year. (Election of 5-13-06) Section 7.03 Budget Message. The City Manager's budget message shall outline the proposed financial policies of the City for the ensuing fiscal year; describe the important features of the budget; indicate any major changes from the current year in financial policies, expenditures, and revenues together with the reasons for such changes; and summarize the City's debt position and include such other material as the City Manager deems desirable. {Election of 4-?-79, 5-6-$9, 5-13-06} Section 7.Od Budget Contents. The budget shall provide a complete financial plan for the ensuing fiscal year. It shall contain the following: (a) A budget message. (b} A consolidated statement of receipts and expenditures fol• all funds. (c} An analysis of propel-ty valuations. (d} An analysis of tax rate. (e} Tax levies and tax collections by years for the preceding five years. (f} General fund resources and all other fund resources in detail. (g) Summary of proposed expenditures by function, department and activity. (h) Summary of proposed expenditures by character and object. (i} Detailed estimates of expenditures shown separately for each activity to support the summaries mentioned in (g) and {h) above. Such estimates of expenditures are to include an itemization of positions showing the number of persons having each title and the rate of pay. (j) A revenue and expense statement for all types of bonds. 50116599.2 1 {k) A description of all bond issues outstanding, showing rate of interest, date of issue, maturity date, call date, if any, amount authorized, amount issued, and amount outstanding. (1} A schedule of requirements far the principal and interest on each issue of bonds. (m) A special funds section. {n) The appropriation ordinance. The total estimated expenditures of each fund shall not exceed the total estimated resources of each fund's prospective income plus cash on hand. The classification of revenues and expenditure accounts shall conform as nearly as local conditions will permit to the uniform classification as promulgated by the national committee on municipal accounting or some other nationally accepted classification. (Election of 4-7-79, 5-13-06} Section 7.05 Capital improvements Program. The City Manager may prepare and submit to the City Council a five year capital improvements program on his or her own initiative and shall do so when so directed by the City Council. (Election of 4-7-79, 5-6-89, 5-13-06) Section 7.06 City Council Action on Budget. (a) Notice and hearing. The City Council shall have published as set forth in applicable State law a general summary of the budget and a notice stating: (1) the time and places where copies of the message and budget are available for inspection by the public, and (2} the time and place for a public hearing on the budget. (b) Amendment before Adoption. After the public hearing, the City Council may adopt the budget with or without amendment, in amending the budget, it may add or increase programs or amounts and may delete or decrease any programs or amounts, except expenditures required by law or for debt service ar for estimated cash deficit, provided that no amendment to the budget shall increase the authorized expenditures to an amount greater than the total of estimated income. (c) Adoption. The City Council should adopt the budget, with or without amendments, after public hearings and before the first day of the ensuing fiscal year. Should the City Council take no final action, amounts appropriated for the current fiscal year shall be deemed adapted on a month to month basis. Final adoption shall constitute appropriation of the expenditures proposed from funds so indicated. (Election of 5-6-89, 5-13-Q6) soy iss9s.a 15 Section 7.47 Amendments After Adoption. (a) Supplemental Appropriations. zf, during the fiscal year, the City Manager certifies that there are available for appropriation revenues in excess of those estimated in the budget, the City Council may make supplemental appropriations for the year up to the amount of such excess. (b) Emergency Appropriations. To meet a public emergency affecting life, health, property or the public peace, the City Council may make emergency appropriations. To the extent that there are no available unappropriated revenues to meet such appropriations, the City Council may by such ordinances authorize the issuance of emergency notes in accordance with applicable State law, which emergency notes may be renewed as necessary in accordance with applicable State law. (c} Reduction of Appropriations. If at any time during the fiscal year it appears probable to the City Manager that the revenues available will be insufficient to meet the amount appropriated, he or she shall report to the City Council without delay, indicating the estimated amount of the deficit, any remedial action taken by him or her and his or her recommendations as to any other steps to be taken. The City Council shall then take such further action as it deems necessary to prevent or minimize any deficit and for that purpose it may reduce one or more appropriations. (d) Transfer of Appropriations. Upon written request by the City Manager, the City Council may transfer part ar all of any unencumbered appropriated balance among programs within a department, office or agency, or from departments, offices or agencies. (e) Limitations; Effective Date. No appropriation for debt service maybe reduced or transferred, and no appropriation may be reduced below the amount required by law to be appropriated or by more than the amount of the unencumbered balance thereof. The supplemental and emergency appropriations and reduction or transfer of appropriations authorized by this Section may be made effective immediately upon adoption. (Election of 4-7-79, 5-6-89, 5-13-06} Section 7.48 Purchase Procedures. The City Manager shall be responsible for the preparation of purchase procedures, and the procedures shall be submitted by him or her to the City Council. The City Council may accept and adopt such procedures as proposed or may adopt them with such amendments as the City Council deems necessary or may reject them in their entirety and direct the City Manager to further consider the procedures and present new proposals at a subsequent meeting. The purchase procedures may be reviewed periodically. (Election of 4-7-79, 5-6-89, 5-3-97, 5-13-06} Section 7.49 Lapse of Appropriations. Every appropriation, except an appropriation for a capital expenditure, shall lapse at the close of the fiscal year to the extent that it has been expended or encumbered. An appropriation for capital expenditure shall continue in force until the purpose for which it was made has been 50116599.2 16 accomplished ar abandoned; the purpose of any such appropriation shall be deemed abandoned if three years pass without any disbursement from or encumbrance of the appropriation. Section 7.14 Director of Finance. (a) A ointment• Suret Band. There shall be a department of finance, the head of which shall be the City Manager or his designee who shall provide a bond with such surety and amount as the City Council may require, except that such band shall be in an amount of not less than twenty thousand dollars, the cost to be borne by the City. {b) Power and Duties. The City Manager shall have charge of the administration of the financial affairs of the City, and to that end he or she shall supervise the head of the department of finance (if other than the City Manager) and shall have authority and shall be required to: {1) Compile the estimates of revenues and expenditures for the budget. (2} Supervise and be responsible for the disbursement of all money and have control over all expenditures to ensure that budget appropriations are not exceeded. Disbursement from the City's depositary bank will require two signatm•es. {3) Maintain a general accounting system far the City and each of its offices, departments and agencies; keep books for and exercise financial budgetary control over each office, department and agency; keep separate accounts for the items of appropriation, the amounts paid therefrom, the unpaid obligations against it and the encumbered balance; and require reports of receipts and disbursements from each receiving and spending agency of the City to be made daily or at such intervals as he ar she may deem expedient. (4) Submit to the City Council a monthly statement of all receipts and disbursements in sufficient detail to show the exact financial condition of the City. (5) Prepare, as of the end of each fiscal year, a complete financial statement and report. (6) Supervise and be responsible for the collection of all taxes, special assessments, license fees and other revenues of the City or for whose collection the City is responsible and receive all money receivable by the City fi'am the State or federal government, or from any court, or from any office, department or agency of the City. {7) Serve as Ex-Officio City Treasurer and have custody of all public funds belonging to or under the control of the City, or any office, department or agency of the City, and have deposited daily all funds coming into his or her hands in such depository(s) as may be designated by resolution of the City Council, as determined by subsection (11}below. ($} Have custody of all investments and invested funds of the City, or in possession of such government in a fiduciary capacity, and have the safekeeping of all SOI 1b599.2 17 bonds and notes of the City and the receipt and delivery of City bonds and notes for transfer, registration or exchange. (9) Supervise and be responsible for the purchase, storage and distribution of all supplies, material, equipment and other articles used 6y any office, department or agency of the City. {10) Approve all proposed expenditures. No appropriation shall be encumbered and no expenditure shall be made unless he or she shall certify that there is an unencumbered balance of appropriation and available funds. {Election of 4-7-79, 5-6-59, 5-3-97, 5-13-Ob, 11-4-0$) Section 7.11 Audit. The City Council shall cause an annual audit to be made of the books and accounts of each department of the City and shall have an annual financial statement prepared based an the audit. A complete audit shall be made at the end of each fiscal year, and at such other times as may be necessary, by an independent Certified Public Accountant who shall be selected by the City Council. The annual financial statement, including the auditor's opinion, shall be filed with the City Secretary and shall be available for public inspection. The auditor selected shall not maintain or keep any of the City accounts or records. {Election of 5-3-97, 5-13-06) [End of Article VIl] soiz6ss~.2 18 ARTICLE VIII PLANNING, ZONING AND ADJUSTMENTS Section SAl Planning and Zoning Commission. There shall be a Planning and Zoning Commission, composed of five or more members as determined and appointed by the City Council. Any such Conunission shall be responsible for exercising planning and zoning functions as may now or hereafter be required or authorized by statutes of the State or ordinances of the City. Members shall be registered voters, residents of and own real property within the City. (Election of 4-7-79, 5-3-97, 11-4-08) Section 8.42 Board of Adjustment. The City Council may establish a Board of Adjustment in accordance with the applicable laws of the State. {Election of 5-7-94, 5-3-97, 5-13-06) [End of Article VIII] soi ~6sss.a 19 ARTICLE IX NOMINATIONS AND ELECTIONS Section 9AI City Elections. (a) Re ulap Elections. The regular City election shall be held on the uniform election date in November in each calendar year commencing in 2013 ar as otherwise required by applicable State laws. if this provision is approved by the voters in the election of November 6, 2012, the terms of all members of the City Council serving following such approval shall end, and their successors' two-year terms shall commence, on the following dates: for Councilmembers Place 3, Place 4, and Place 5 - on the regular election date in November 2013 and as to their successors commencing on each odd-numbered year thereafter; and for Mayor and Councilmembers Place 1 and Place 2 - on the regular election date in November 2014 and as to their successors commencing on each even-numbered year thereafter. (b) Qualified Voters. All citizens qualified by the Constitution and general laws of the State to vote in the City and who satisfy the requirements for registration prescribed by law shall be qualified voters of the City within the meaning of this Charter. (c) Conduct of elections. The provisions of the general election laws of the State shall apply to elections held under this Charter. All elections provided for by the Charter shall be conducted by the election authorities established by law. For the conduct of City elections the City Council shall adopt all regulations which it considers desirable, consistent with the law, and this Charter. (d} Time of Elections. Regular and special elections may be conducted only on the dates permitted by applicable State law. (Election of 4-7-79, 5-6-89, 5-3-97, 5-13-06, 11-06-12) Section 9A2 Candidates. Any person having the qualifications set forth for Councilmember under Section 4.02 of this Chapter shall have the right to file an application to have his or her name placed on the official ballot as a candidate fop any one elective office such as Mayor, Councilmember -Place One, Councilmember -Place Two, etc. Such application, in writing, shall include the candidate's name, address, telephone number, date of birth, and date of residency, shall be signed by such candidate and accompanied by his or her loyalty affidavit and a statement that the candidate is aware of applicable State nepotism laws, as prescribed by Texas Election Code, and shall be filed with the City Secretary ap appropriate authority within the time period required by applicable State law. A filing fee of five dollars, or such other amount as may hereafter be set by the City Council, must be paid to the City Secretary by each candidate upon presentation of his or hep application. The filing fee shall be waived if the candidate states in writing that payment thereof will constitute a financial hardship. (Election of 5-6-89, 5-3-97, 5-13-06) Section 9.03 Determination of Election Resalts. At any regular or special municipal election the candidate for each office, such as Mayor, Councilmember-Place One, etc., who shall have received the mast votes for each office cast in SOl 1b599.2 20 such election, shall be declared elected. In the event a tie vote makes it impossible to determine the winning candidate or candidates, resolution of such tie shall be decided as provided in the Texas Election Code. (Election of 5-6-89, 5-13-06, 11-4-08) Section 9.04 City Council Ballots. The names of all candidates for office, except such as may have withdrawn, died or became ineligible, shall be printed on the official ballots in the order of Mayor, Councilmember-Place One, etc., without party designation, and the order of listing the candidates' names for each such office shall be determined in a drawing of lots conducted by the City Secretary. Early voting shall be governed by the general election laws of the State. {Election of 5-6-89, 5-3-97, 5-13-06) Section 9.OS BalIats for Ordinances and Charter Amendments. An ordinance or Charter amendment to be voted on by the City shall be presented for voting by ballot title. The ballot title of a measure may differ from its legal title and shall be a clear, concise statement, describing the substance of the measure without argument or prejudice. Below the ballot title shall appear the following question: "Shall the above described {ordinance) (amendment) be adopted?" Immediately below such question shall appear, in the following order, the words "yes" and "no". Ballots shall include voting instructions. (Election of 5-13-06} [End of Article IX] 50116599.2 2 ARTICLE X INITIATIVE, REFERENDUM AND RECALL Section 10.01 General Authority. (a) Initiative. The qualified voters of the City shall have power to propose ordinances to the City Council. If the City Council fails to adopt an ordinance so proposed without any change in substance, the qualified voters shall have the power to adopt or reject it at a City election, provided that such power shall not extend to the budget or capital program ar any ordinance relating to appropriation of money, levy of taxes or salaries of City officers or employees. {b) Referendum. The qualified voters of the City shall have power to require reconsideration by the City Council of any adopted ordinance. If the City Council fails to repeal an ordinance so reconsidered, the qualified voters shall have the power to approve or reject it at a City election, provided that such power shall not extend to the budget or capital program or any emergency ordinance or ordinance relating to appropriation of money or levy of taxes. {c) Recall. The qualified voters of the City shall have the power to petition for recall of the Mayor or any member of the City Council by name and Place. (Election of 4-7-79, 5-13-06) Section 10.02 Commencement of Proceedings; Petitioners' Committee; Affidavit. Any five qualified voters may commence initiative, referendum or recall proceedings by filing with the City Secretary an affidavit stating they will constitute the petitioners' committee and will circulate the petition and file it in proper form stating their names and addresses and specifying the address to which all notices to the committee are to be sent and setting out in full the proposed initiative ordinance or citing the ordinance sought to be reconsidered. The affidavit far recall must distinctly and specifically state the reason or reasons for which the petition for recall is predicated and include the other requirements set forth in Section 10.06(b}. Promptly after the affidavit of the petitioners' committee is filed, the City Secretary shall issue the appropriate petition blanks to the petitioners' committee. {Election of ~1-7-79, 5-13-06) Section 10.03 Petitions. (a) Number of Si natures. Initiative, referendum, or retail petitions must be signed by qualified voters of the City equal in number to at least fifty (50) percent of the total number of qualified voters who voted at the last Mayoral election, but no less than three hundred (300). (b) Form and Content. All pages of a petition shall be uniform in size and style and shall be assembled as one instrument for filing. For a petition signature to be valid, the petition must: (1) contain in addition to the signature: (A) the signor's printed name; arld {B) the signor's SOl 1b599.2 22 (i) date of birth; or (ii) voter registration number and the County of voter registration; and (C) the signor's residence address {including street address and County of voter registration}; and (2) comply with any other applicable requirements prescribed by State law. Petitions shall contain or have attached thereto throughout their circulation the full text of the proposed ordinance or other subject matter of the petition. A recall petition must distinctly and specifically state the reason or reasons upon which the petition is predicated. (c) Affidavit of Circulator. Each page of a petition shall have attached to it when filed the following notarized affidavit, with all blanks properly completed: "STATE OF TEXAS § CITY OF SCHERTZ § I, ,being first duly sworn, on oath confirm that (i) I am one of the signers of the above petition, (ii} I personally circulated the foregoing page of said petition, (iii) there are _ signatures on such page, (iv} each of the signatures appearing on such page was signed in my presence on the day and date it purports to have been signed, (v) the same are the genuine signatures of the persons whose names they purport to be, and (vi) each signer had an opportunity to read the full text of the ordinance or other subject matter of the petition. Sworn and subscribed to before me, this the day of aa_ Signed and Sealed by a Notary Public in and for State of Texas" (d) Filin Recall Petition. Recall petitions shall be initiated and filed with the City Secretary within sixty days after the petitioners' committee files its affidavit. (e} Filing Referendum Petitions. Referendum petitions must be filed within sixty days after adoption by the City Council of the ordinance sought to be reconsidered. (Election of 4-7-79, 5-6-89, 5-3-97, 5-13-06) Section 10.04 Procedure After Filing. (a) Certificate of Ci~+ Secretary; Amendment. Within twenty days after the petition is filed, the City Secretary shall complete a certificate as to its sufficiency, specifying, if it is insufficient, the particulars wherein it is defective and shall promptly send a copy of the certificate to the petitioners' committee by registered mail. A petition certified insufficient far lack of the required number of valid signatures may be amended once if the petitioners' committee files a notice of intention to amend it with the City Secretary within two days after so~ibss~.a 23 receiving the copy of his ar her certificate and files a suppiementa~y petition upon additional papers within ten days after receiving the copy of such certificate. Such supplementary petition shall comply with the requirements of subsections (b) and (c) of Section 10.03, and within five days after it is filed, the City Secretary shall complete a certificate as to the sufficiency of the petition as amended and promptly send a copy of such certificate to the petitioners' committee by registered mail as in the case of an original petition. If a petition or amended petition is certified insufficient and the petitioners' committee does not elect to amend ar request City Council to review under subsection {b) of this Section within the time required, the City Secretary shall promptly present his or her certificate to the City Council and the certificate shall then be a final determination as to the sufficiency of the petition. {b) Cif Council Review. If a petition has been certified insufficient and the petitioners' committee does not file notice of intention to amend it or if an amended petition has been certified insufficient, the committee may, within two days after receiving the copy of such certificate, file a request that it be reviewed by the City Council. The City Council shall review the certificate at its next meeting following the filing of such request and approve or disapprove it, and the City Council's determination shall then be a final determination as to the sufficiency of the petition. (c) Court Review; New Petition. A final determination as t~ the sufficiency of a petition shall be subject to court review. A final determination of insufficiency, even if sustained upon court review, shall not prejudice the filing of a new petition far the same purpose. (Election of 5-6-89, 5-13-06} Section 1.0.05 Referendum Petitions; Suspension of Effect of Ordinance When a referendum petition complying with all the provisions of Sections 10.03 and 10.04 is filed with the City Secretary the ordinance sought to be reconsidered shall be suspended from taking effect. Such suspension shall terminate when: (a) there is a final determination of insufficiency of the petition, or {b} the petitioner's committee withdraws the petition, ar (c) the City Council repeals the ordinance, or (d) voters sustain the ordinance in an election. Section 10.06 Action on Petitions. (a} Action b Cit Council on Initiative ar Referendum. When an initiative or referendum petition has been fully determined sufficient, the City Council shall promptly consider' the proposed initiative ordinance in the manner provided in Article IV or reconsider the referred ordinance by voting its repeal. If the City Council fails to adopt a proposed initiative ordinance without any change in substance within sixty days or fails to repeal the referred ordinance within thirty days after the date the petition was finally determined sufficient, it shall submit the proposed or refei7•ed ordinance to the voters of the City at a special election. 5Q116599.2 24 (b) Action b Cit Council on Petition for Recall. The recall petition must be addressed to the City Council of the City, must distinctly and specifically point out the ground or grounds upon which such petition for removal is predicated, and, if there be more than one ground, such as for incompetency, misconduct ar malfeasance in office, shall specifically state each ground with such certainty as to give the officer sought to be removed notice of the matters and things with which he ar she is charged. The officer whose removal is sought may, within five days after such recall petition has been presented to the City Council request that a public hearing be held to permit him or her to present facts pertinent to the charges specified in the recall petition. In this event, the City Council shall order such public hearing ro be held, not less than five days nor more than fifteen days after receiving such request for a public hearing. If the officer whose removal is sought does not resign, then it shall became the duty of the City Council to order a recall election and fix a date for holding such recall election. (c) Submission to voters. The special election on a proposed ar referred ordinance or petition for recall shall be held on the earliest date permitted by State and federal law after the date of the final City Council vote thereon. Copies of the proposed or referred ordinance shall be made available at the polls. (Election of 5-3-97, 5-13-Q6) Section 10.07 Results of )GIection. (a) Initiative. If a majority of the qualified voters voting an a proposed initiative ordinance vote in its favor, it shall be considered adopted upon certification of the election results and shall be treated in all respects in the same manner as oldinances of the same kind adopted by the City Council. If conflicting ordinances are approved at the same election, the one receiving the greatest number of affirmative votes shall prevail to the extent of such conflict. (b) Referendum. If a majority of the qualified voters voting on a referred ordinance vote against it, it shall be considered repealed upon certification of the election results. {c) Recall. If a majority of the votes cast at a recall election shall be against the recall of the person named on the ballot, he or she shall continue in office for the remainder of his or her unexpired term. If a majority of the votes cast at such election shall be for the recall of the person named on the ballot, he or she shall be deemed removed from office and the vacancy shall be filled as provided in Section 4.Q6(c) of this Charter. (Election of 5-6-89, 5-3-97, 5-13-06) Section lO.OS Limitation on Recall. No Councilmember shall be subject to recall within six months of his or her election to office nor more than once during one term of office. A recall election need not be ordered by the City Council against any Councilmembel• on whom a petition is filed if his or her term of office is to expire within ninety days after the petition is filed with the City Secretary. (EIection of 4-7-79,5-6-89, 5-3-97, 5-13-Ob) (End of Article X] 50116599.2 25 ARTICLE XI PUBLIC UTILITIES Section 11.01. Powers of the City. The City shall have such powers with respect to public utilities as may now or hereafter be granted and defined under the Constitution and the general laws of the State. The City shall have the power tluough eminent domain proceedings to acquire any public utility operating with or without a franchise and furnishing a public service to the citizens of the City. In valuing the property, the measure of damages shall be the fair market value of the physical properties together with its franchise, if any, taken together as one system. This power shall be in addition to and cumulative of any other powers of acquisition granted to or reserved by the City in a franchise ordinance. Prior to the purchase of any existing franchised public utility system, either according to the terms of the franchise or by eminent domain, the City Council must submit the gaestion of the purchase to the qualified voters of the City, and the same must be approved by a majority of those voting in such election. (Election of 5-6-89, 5-3-97, 5-13-06} Section 11A2 Franchises. The City Council shall have power by ordinance to grant, renew and extend all franchises of public utilities of every character operating within the City, and for such purpose is granted full power. The term "public utilities" as used herein is consti~ed to mean any person, firm or corporation furnishing to the public any general public sevcice, including, but not limited to heat, light, power, telephone service, community antenna or cable television service, refrigeration, steam, and the carrying of passengers for hire, or for any other purpose whereby a right to, in part, appropriate or use the streets, highways, or other property of the City is necessary or proper. All ordinances granting, renewing, or extending franchises for public utilities shall be read at two separate regular meetings of the City Council and shall not be passed until thirty days after the first reading; and no such ordinance shall take effect until thirty days after its passage; and the full text thereof shall be placed on the City's website for at least one week prior to final adoption of the franchise ordinance. (Election of 5-13-Ob, 11-06-12) Section 11.03 Franchise Value Not To Be Allowed. In fixing reasonable rates and charges for utility service within the City, nothing shall be included as the value of any franchise granted by the City under this Charter. Section 11.04 Right of Regulation. All grants, renewals, or extensions of public utility franchises, whether it be so provided in the franchise ordinance or not, shall be subject to the right of the City: (a) To require compliance with the terms of the franchise. Spl 16599.2 26 (b) To require reasonable extensions of plant and service, and the maintenance of the plant and fixtures at the highest reasonable standard of efficiency. (c) To establish reasonable standards of service and prevent unjust discrimination in service or rates. {d) To prescribe, for each franchised utility, the form of accounts to be kept or that the system of accounts shall conform to those prescribed by the appropriate State and/or federal utility regulatory agencies. (e) At any time to require annual and other reports by each such public utility pertaining to sales and operations within the City. (f} To impose such reasonable regulations and restrictions as may be desirable or conducive to the safety, welfare, and accommodation of the public. (g) To require such compensation and rental as may be permitted by the laws of the State. {h) To forfeit by ordinance any franchise at any time upon the failure of the grantee to comply with any provision of the franchise, such power to be exercised only after notice and hearing and under the conditions hereinafter provided; provided, however, that action may be taken hereunder only after the City has given to the grantee written notice of the particular or particulars in which it is claimed that the grantee is in default, and the grantee shall have a reasonable time after receipt of such notice, which time in no event shall be less than thirty days, to cure such alleged default or defaults; after the expiration of which time if said default or defaults are not cured the City may, at its option, by ordinance declare the franchise forfeited; and provided further, that such forfeiture shall, however, be subject to the orders of any court of competent jurisdiction in which the grantee may seek review of the forfeiture. (Election 4-7-79, 5-3-97,5-13-Q6) Section 11.OS Franchise Records. The City shall maintain a public retard of public utility franchises. (Election of 5-3-97, 5-13-06) Section 11,Q6 Regulations of Rates and Service. The City Council shall have full power after notice and hearing to regulate by ordinance the rates, charges, and fares of every public utility franchise holder operating in the City and of any other person, firm or corporation exercising any public privilege in the City. Every such utility or person, firm or corporation who shall request an increase in rates, charges or fares, shall have, at the hearing of the City Council called to consider such request, the burden of establishing by clear, competent and convincing evidence, the value of its investments properly allocable to service in the City, and the amount and character of its expenses and revenues connected with the rendering of such service. Such hearing of the City Council shall be held not later than thirty days from the date of the filing of a written request for an increase in 501 L6599.2 27 rates, charges or fares. If, upon such hearing, the City Council is not satisfied with the sufficiency of the evidence so ful~lished, it shall be entitled to call upon such utility, person, firm or corporation, for the furnishing of additional evidence at a subsequent date, to which said hearing may be adjourned, which adjourned hearing shall be held not later than thirty days from the date such original hearing. Upon calling for the furnishing of such additional evidence at such adjourned hearing the City Council shall have the right to select and employ, then and Iater, rate consultants, auditors, and attorneys to conduct investigations, present evidence, advise the City Council, and conduct litigation on such requested increase in rates, charges or fares. Such rate consultants, auditors and attorneys shall be qualified, competent, and of goad standing in their professions. The City Council shall, within sixty days after the date of said adjourned hearing, determine and fix by ordinance the rates, charges, or fares to be charged by the applicant filing such request for an increase in rates, charges, or fares. No such utility, person, firm, ar cozporation shall institute any legal action to contest any rates, charges, or fares until the rates, charges or fares have been fixed by the City Council in accordance with the procedures herein contained; provided however, the failure of the City Council to make determination of rates, charges or fares by ordinance within the sixty day period herein specified shall be deemed a denial of the application for increase theretofore filed. Any time or times prescribed herein may be extended by resolution of the City Council and written agreement of the applicant. Upon failure of the City Council to hold any hearings or make determination of rates, charges or fares by ordinance within the times or extended times as hcrcin providcd, the rcqucst for incrcasc shall be deemed denied, and no further action shall be prerequisite to institution of legal action by the applicant to contest such rates, charges, ar fares as theretofore fixed by the City Council. (Election of 5-3-97, 5-13-0b) [End of Article XI] 5Qr 16599.2 2g ARTICLE XII GENERAL PROVISIONS Section 12.01 Personal Tinancial Interest. No officer or employee of the City shall have a financial interest, direct or indirect, in any contract with the City, nor shall be financially interested, directly or indirectly, in the sale to the City of any land, or rights or interest in any land, materials, supplies or service. The above provision shall not apply where the interest is represented by ownership of stock in a corporation involved, provided such stock ownership amounts to less than one percent of the corporation stock. Any violation of this Section shall constitute malfeasance in office, and any officer or employee of the City found guilty thereof shall thereby forfeit his or her office or position. Any violation of this Section with the knowledge, express or implied, of the person or corporation contracting with the City shall render the contract voidable by the City Manager or by the City Council. {Election of 5-13-06) Section 12.02 Prohibitions. (a) Activities Prohibited. (1) No person shall be appointed to or removed from or in any way favored or discriminated against with respect to any City position or appointive City administrative office because of race, sex, political or religious opinions or affiliations. (2) No person shall willfully make any false statement, certificate, mark, _ rating or report in regard to any test, certification or appointment under the personnel provisions of this Charter or the rules and regulations made thereunder, or in any manner commit or attempt to commit any fraud preventing the impartial execution of such provisions, rules and regulations. {3) No person who seeks appointment or promotion with respect to any City position or appointive City administrative office shall directly or indirectly give, render or pay any money, service or other valuable thing to any person for or in connection with his test, appointment, proposed appointment, promotion or proposed promotion. (4) No City employee or elected or appointed City official shall orally, by letter or otherwise solicit or assist in soliciting any assessment, subscription or contribution for any political party or political purpose whatever from any person holding any compensated City position. (Election of 11-4-08} (5) With respect to any campaign for election to an office in the City, no person who holds any compensated City position shall make, solicit or receive any contribution to the campaign funds of any political party or any candidate for such office or take any part in management, affairs or political campaign of any political party, but he may exercise his rights as a citizen to express his opinions and to cast his vote. (Election of 11-4-08) SOl 16599.2 29 (6) No person related within the second degree by affinity or within the third degree by consanguinity to any elected officer of the City, or to the City Manager, shall be employed by the City ar be appointed to any office, position, or clerkship or other service of the City, but this prohibition shall not apply to any such person related in the prohibited degree who has been continuously employed by the City for not less than two year's prior to the election or appointment of the officer. (Election of 11-4-08) (b) Penalties. Any person who by himself or herself or with others willfully violates any of the provisions of paragraphs (a)(1) through (a)(6) of this Section shall be guilty of misconduct and shall immediately forfeit his or her office or position upon order of the City Manager ar the City Council. (Election of 4-7-79, 5-b-89, 5-13-97, 5-13-06} Section 12.03 Liability for Personal Injuries or Death. The City shall be liable for money damages for personal injuries or death only to the extent reduired by the laws of the State. Before the City shall be liable for damages for the death or personal injuries of any person or for damages to or destruction of property of any kind, which does not constitute a taking or damaging of property under Article 1, Section 17, Constitution of Texas, the person injured, if living, or his or her representative, if dead, or the owner of the property damaged or destroyed, shall give the City Council or City Manager notice in writing of such death, injury, damage or destl~zction, duly verified by affidavit, within forty-five days after same has been sustained, stating specifically in such written notice when, where, and how the death, injury, damage or destruction, occurred, and the apparent extent of any such injury, the amount of damages sustained, the actual residence of the claimant by street and number at the date the claim is presented, the actual residence of such claimant far six months immediately preceding the occurrence of such death, injury, damage or destruction, and the names and addresses of all witnesses upon whom it is relied to establish the claim far damages; and the failure to so notify the City Council or City Manager within the time and manner specified herein shall exonerate, excuse and exempt the City from any liability whatsoever. No act of any officer or employee of the City shall waive compliance, or stop the City from requiring compliance, with the provisions of this section as to notice, but such provisions may be waived by resolution of the City Council, passed before the expiration of the forty-five-day period herein provided, and evidenced by minutes of the City Council. (Election of 5-3-97, 5-13-06) Section 12.04 Charter Amendment. Amendments to this Charter may be framed and submitted to the voters of the City by a charter commission in the manner provided by law, by ordinance passed by a majority vote of the full membership of the City Council, ar by a petition signed by not less than five percent of the qualified voters of the City. When a charter amendment petition shall have been filed in conformity with Section 10.03 of this Charter, the City Council shall, subject to applicable law, forthwith provide by ordinance for submitting such proposed amendment to a vote of the voters of the City. Any ordinance for submitting a charter amendment to the voters shall provide for submission of such amendments to the voters in accordance with applicable law. Not less than thirty days prior to such election the City Secretary shall make available at the City Offices a SO11b599.2 ~ 0 copy of the proposed amendment or amendments. If a proposed amendment shall be approved by a majority of the voters voting thereon, it shall become a part of the Charter at the time fixed therein. Each amendment shall be confined to one subject; and, when more than one amendment shall be submitted at the same time, they shall be submitted so as to enable the voters to vote on each sepal-ately. (Election of 4-7-79, 5-f-89, 5-3-97, 5-13-06, 11-4-08) Section 12.05 Charter Review Commission. The City Council shall periodically appoint a Charter Review Commission of five citizens of the City, It shall be the duty of the Commission to: (a) Inquire into the operation of the City government under the Charter provisions and determine whether any such provisions require revision and to this end, public hearings may be held and the Commission shall have the power to compel the attendance of any officer or employee of the City to require the submission of any of the City records which it may consider necessary to the conduct of such hearing. {b) Make any recommendations it considers desirable to insure compliance with the provisions of this Charter by the several departments of the City. (c) Propose amendments to this Charter to improve its effective application to cun-ent conditions. (d) Report its findings and present its proposed amendments, if any, to the City Council. The City Council shall receive any report submitted by the Charter Review Commission, may comment an any proposed amendment recommendations made, and, if any amendment or amendments are presented as a part of such report, shall order such to be submitted to the voters of the City in the manner provided in Sectlon 12.04. The term of office of the Charter Review Commission shall be 180 days after the date of appointment of the Commission, and, if during this term no report is presented to the City Council, then all records of the proceedings of the Commission shall be filed with the City Manager and the Charter Review Commission shall be dismissed. (Election of 4-7-79, 5-3-97, 5-13-06) Section 22.06 Separability. If any provision of this Charter is held invalid, the other provisions of the Charter shall not be affected thereby. If the application of this Charter or any of its provisions to any person or circumstances is held invalid, the application of the Charter and its provisions to other persons or circumstances shall not be affected thereby. (Election of 4-7-79, 5-13-06) Section 12,07 State Law. References in this Charter to "State law" shall refer to applicable provisions of State law in effect from time to time. (Election of 5-13-06) SOl 1b599.2 31 Section 12.08 Headings. Headings and titles of Sections and subsections of this Charter are for convenience only and shall not affect the meaning of any provisions within such Sections. {Election of 5-13-06) [End of Article XII] 50116599.2 32