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09-24-2013 Agenda with Backup MEETING AGENDA City Council REGULAR SESSION CITY COUNCIL September 24, 2013, 6:00 P.M. HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 AGENDA TUESDAY, SEPTEMBER 24, 2013 AT 6:00 P.M. Call to Order ? Regular Session Invocation and Pledges of Allegiance to the Flags of the United States and State of Texas. (Pastor Gerald (Jerry) Goodridge ? Bracken United Methodist Church) City Events and Announcements Announcements of upcoming City Events (J. Bierschwale/B. James) Announcements and recognitions by City Manager Office (J. Bierschwale) Presentations: Proclamation Fire Prevention Week (Mayor/D. Covington) Presentation and Discussion regarding the City of Schertz Skate Park (P. Gaudreau/G. Logan) Presentation and Discussion regarding the education component of the City of Schertz Comprehensive plan. (B. James/L. Wood) 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 3 no more than minutes. All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. 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. ðçóîìóîðïí ݱ«²½·´ ß¹»²¼¿ Consent Agenda Items The Consent Agenda is considered to be self-explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request by the Mayor or a Councilmember. Minutes 1. - Consideration and/or action regarding the approval of the minutes of the Regular and Joint Meeting with the Transportation Safety Advisory Commission meeting of September 17, 2013. (B. Dennis/D. Schmoekel) Cancellation of the October 1, 2013, and October 8, 2013 City Council Meetings 2. ? Consideration and/or action cancelling the October 1, 2013 City Council Meeting to observe National Night Out, and cancelling the October 8, 2013 City Council Meeting to attend the Texas Municipal League Conference in Austin. (J. Bierschwale/Council) Resolution No. 13-R-83 3. ? Consideration and/or action approving a Resolution authorizing EMS Debt Revenue Adjustments for inactive outstanding accounts receivables after 180 days of non payment and other matters in connection therewith. (J. Bierschwale/D. Wait) Resolution No. 13-R-84 4. ? Consideration and/or action approving a Resolution authorizing Utility Billing Debt Revenue Adjustments for inactive outstanding accounts receivables after 180 days of non payment and other matters in connection therewith. (J. Bierschwale/C. Spence) Resolution No. 13-R-81 5. ? Consideration and/or action approving a Resolution authorizing a Release of Waterline Easement for a 25 foot wide Waterline Easement located in Comal County, Texas, originally granted to the City by George M. Heberer and India D. Heberer, and more specifically described in the Easement Document Recorded in Volume 417, Page 467 of the Official Records of Guadalupe County, Texas, and other matters in connection therewith. (J. Bierschwale/S. Willoughby/L. Busch) Resolution No. 13-R-82 6. ? Consideration and/or action approving a Resolution approving agreements for one (1) 16-Foot Permanent Sanitary Sewer Easement and one (1) 25-Foot by 25-Foot Turnaround Sanitary Sewer line Easement from Schertz Commercial Park, L. P. in the Northcliffe Plaza Development and other matters in connection therewith. (J. Bierschwale/S. Willoughby/J. Hooks) Resolution No. 13-R-85 7. ? Consideration and/or action approving a Resolution authorizing an agreement with Alamo Area Council of Governments (AACOG) to provide funding up to $22,020 for Transit Services in the City of Schertz. (B. James/B. James) Resolution No. 13-R-86 8. ? Consideration and/or action approving a Resolution authorizing the adoption of the City of Schertz Investment Policy. (J. Bierschwale/J. Santoya/R. Galindo) ðçóîìóîðïí Ý·¬§ ݱ«²½·´ ß¹»²¼¿Ð¿¹»ó î ó Discussion and Action Items Appointments/Reappointments and Resignations to City Boards, Commissions, 9. Committees ? Consideration and/or action regarding appointments/reappointments and resignations to City Boards, Commissions, and Committees. (B. Dennis/D. Schmoekel) Resignation of Mr. Chris Montgomery ? Board of Adjustments Ordinance No. 13-T-42 10. ? Consideration and/or action approving an Ordinance adopting a Budget for the Fiscal Year beginning October 1, 2013, and ending September 30, 2014, for the Schertz Library Board, providing that it has been approved by the Board; providing that this Ordinance shall be cumulative of all Ordinances; providing a severability Clause; and Providing an effective date; and declaring an First & Final Reading emergency. (B. James/J. Walters/G. Douglas/M. Uhlhorn) Resolution No. 13-R-87 11. ? Consideration and/or action approving a Resolution authorizing the termination of the Operating Agreement with the Comal County Senior Citizen Foundation, and other matters in connection therewith. (B. James/K. Tapley) Roll Call Vote Confirmation Requests and Announcements 12. Announcements by City Manager Office Citizen Kudos Recognition of City employee actions New Departmental initiatives 13. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. 14. Requests by Mayor and Councilmembers to City Manager and Staff for information. 15. 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 Executive Session Called under: ðçóîìóîðïí Ý·¬§ ݱ«²½·´ ß¹»²¼¿Ð¿¹»ó í ó Section 551.071 Texas Government Code Deliberation regarding litigation, pending or contemplated litigation; and Consultations with the City Attorney regarding advice on legal matters; Section 551.072 Texas Government Code - Deliberation regarding the purchase, exchange, sale, lease, or value of real property, or real estate; Section 551.074 Texas Government Code - Deliberation regarding personnel matters, policies, duties, employment, and evaluation of certain public officials and employees; Reconvene into Regular Session 16. Take any actiondeemed necessary as a result of the Executive Session. Adjournment CERTIFICATION  I, BRENDA DENNIS, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 20th DAY OF SEPTEMBER 2013 AT 4:10 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 CPM, TRMC, MMC, 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 _______________, 2013. ____________________________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 210 619-1030 at least 24 hours in advance of meeting. ðçóîìóîðïí Ý·¬§ ݱ«²½·´ ß¹»²¼¿Ð¿¹»ó ì ó COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS Mayor CarpenterMayor Pro-Tem Fowler ? Place 1 Audit Committee Interview Committee for Boards and Commissions Hal Baldwin Scholarship Committee Schertz Housing Board Liaison Interview Committee for Boards and Commissions Investment Advisory Committee TIRZ II Board Councilmember Scagliola ? Place 2Councilmember Antuna - Place 3 Animal Control Advisory Committee ASA Commuter Rail District Board ? Lone Star Cibolo Valley Local Government Corporation Randolph Joint Land Use Study (JLUS) Executive Interview Committee for Boards and Commissions Committee Sweetheart Advisory Committee Schertz Seguin Local Government Corporation Councilmember Edwards ? Place 4Councilmember ? Verinder ? Place 5 Audit CommitteeAudit Committee Hal Baldwin Scholarship Committee Investment Advisory Committee ðçóîìóîðïí Ý·¬§ ݱ«²½·´ ß¹»²¼¿Ð¿¹»ó ë ó Proclamation Fire Prevention Week October 6-12, 2013 WHEREAS , the State of Texas is committed to ensuring the safety and security of all those living in and visiting our state; and the City of Schertz is equally dedicated to reducing the occurrence of fire; and WHEREAS , fire is a serious public safety concern both locally and nationally, and homes are the locations where people are at greatest risk from fire; and WHEREAS , roughly 3,000 people die as a result of home fires and burns, more than 200,000 individuals are seen in the nation?s emergency rooms for burn injuries; and WHEREAS , Thermal burns outnumber scalds nearly two-to-one, but for children ages five and under, scalds outnumber burns roughly two-to-one. WHEREAS , cooking is the leading cause of home fires and home fire injuries, while heating equipment and smoking are the leading causes of home fire deaths; and WHEREAS , City of Schertz?s first responders are dedicated to reducing the occurrence of home fires and home fire injuries through prevention and protection education; and WHEREAS , City of Schertz?s residents are responsive to public education measures and are able to take personal steps to increase their safety from fire, especially in their homes; and WHEREAS , the 2013 Fire Prevention Week theme, ?Prevent Kitchen Fires? effectively serves to remind us all of the simple actions we can take to stay safer from fire during Fire Prevention Week and year-round. THEREFORE , I Michael Carpenter, Mayor of the City of Schertz do hereby proclaim October 6-12, 2013 as Fire Prevention Week throughout this state, and I urge all the people of Texas and the residents of Schertz to protect their homes and families by heeding the important safety messages of Fire Prevention Week 2013, and to support the many public safety activities and efforts of Schertz Fire Rescue Emergency Services. Michael R. Carpenter, Mayor Agenda No. 1 CITY COUNCIL MEMORANDUM City Council Meeting: September 24, 2013 Department: City Secretary Subject: Minutes BACKGROUND The City Council held a Joint and Regular meeting on September 17, 2013. FISCAL IMPACT None RECOMMENDATION Staff recommends Council approve the minutes ofthe Joint and Regular meeting of September 17, 2013. ATTACHMENT Minutes ? Joint and Regular meeting September 17, 2013. MINUTES SPECIAL JOINT & REGULAR MEETING September 17, 2013 A Special Joint Meeting with the Transportation Safety Advisory Commission and a Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on September 17, 2013, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to-wit: Mayor Michael R. Carpenter Mayor Pro-Tem Jim Fowler Councilmember David Scagliola Councilmember George Antuna Councilmember Cedric Edwards Councilmember Sydney Verinder Transportation Safety Advisory Board Members: Stephen Bish, Chair Mark Davis, Vice Chair Bill Bowers, Board Member Max Hernandez, Board Member Gary Preston, Board Member Larry Franklin, Board Member Phillip Rowland, Board Member John Cook, Board Member Staff Present: Executive Director David Harris City Manager John Kessel Executive Director Brian James Executive Director John Bierschwale City Attorney Katherine Tapley Chief of Staff Bob Cantu Deputy City Secretary Donna Schmoekel City Secretary Brenda Dennis Call to Order ? Regular Session Mayor Carpenter called the Regular Meeting to order at 6:06 p.m. Mayor Carpenter asked for a moment of silence in remembrance of those lives lost during the Monday, September 16, 2013, Washington D. C. Navy Yard shooting. Invocation and Pledges of Allegiance to the Flags of the United States and State of Texas. Mayor Pro-Tem Fowler gave the invocation followed by the Pledges of Allegiance to the Flags of the United States and the State of Texas. Mayor Carpenter stated that he would like to move to the Hearing of Residence section of the meeting. Council concurred. Hearing of Residents: This time is set aside for any person who wishes to address the City Council. Each person should fill 3 out the speaker?s register prior to the meeting. Presentations should be limited to no more than minutes. All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. 09-17-2013 Minutes Page- 1 - 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. Mayor Carpenter recognized the following who spoke regarding the dismissal of Mrs. Donna Thompson as Manager of the Schertz Area Senior Center, the request for immediate reinstatement of Mrs. Thompson, request for Council to withdraw participation with the Comal County Senior Citizen Foundation and request to form a 501(C) 3 Non-Profit Management change: Mr. Dean Weirtz, 4301 Monument Pass, Schertz Mr. David Morrison, 321 First Street, Schertz Ms. Inge Bruner, 315 Aero, Schertz Ms. Susan Lowe, 305 Sea Headrig Drive, Cibolo Ms. Raw Weinstein, 217 Silver Wing, Cibolo Mr. Roy Escobar, 704 Curtiss, Schertz Ms. Carol Suchan, 4828 Stagecoach, Marion Members of the Schertz Area Senior Center presented a petition of Formal Protest regarding the dismissal of Donna Thompson. Mayor Carpenter recognized the following who also spoke: Mr. David Richmond, 2921 Bent Tree, who publically thanked the Public Works Department for the rapid response and removal of graffiti in the Greenshire Subdivision. Mr. Robin Thompson, Schertz Chambers of Commerce, who stated that the Chamber reached their 300 mark for members with the Chamber. He also provided updates on the upcoming events. Mayor Carpenter recessed the regular meeting into executive session at 6:25 p.m. Executive Session Called under: Section 551.071 Texas Government Code Deliberation regarding litigation, pending or contemplated litigation; and Consultations with the City Attorney regarding advice on legal matters; Reconvene into Regular Session Mayor Carpenter reconvened into regular session at 6:55 p.m. 15. Take any actiondeemed necessary as a result of the Executive Session. Mayor Carpenter moved, seconded by Mayor Pro-Tem Fowler to direct staff to negotiate the The vote separation of our relationship with the Comal County Senior Citizen Foundation. 09-17-2013 Minutes Page- 2 - was unanimous with Mayor Pro-Tem Fowler, Councilmembers Scagliola, Antuna, Edwards, and Verinder voting yes and no one voting no. Motion Carried. Mayor Carpenter moved to the Workshop section of the agenda. Workshop Discussion and possible action regarding the Schertz Senior Center to include Contracts, Partners and/or plans. (Mayor Carpenter) Mayor Carpenter stated the action that was taken by Council this evening will not move fast. It will take time to negotiate the nature of the separation with the Comal County Senior Citizen Foundation. We don?t yet know the effect of this decision as it will depend on what the Foundation wants to do. The commitment from the Council is to work with the seniors to our collective vision of what the senior center should be. Councilmembers Edwards, Scagliola, Antuna, Fowler, and Verinder all stated that council and the seniors would have to work together. This is a good transition but may require more than what we have done in the past. Mayor Carpenter recognized City Manager John Kessel who asked Executive Director of Development Brian James to begin negotiations and Parks, Recreation & Community Services Director George Logan to start working with the seniors to build some consensus and common goals. He asked Executive Director David Harris to look for outside support, such as, other government agencies, partner cities or area counties as we will need this involvement to be successful. He stated this will be the first action steps we need to take. Mayor Carpenter stated the beauty of a Home Rule City is we get to write our own charter. It is our home and we make the rules. Mayor Carpenter recessed the regular meeting at 6:24 p.m. Mayor Carpenter reconvened the City Council meeting back to order at 7:22 p.m., and moved to the Special Joint meeting with the Transportation Safety Advisory Commission. Call to Order ? Special Session A.Call to order by each Governing Body. Chairman Stephen Bish of the Transportation Safety Advisory Commission (TSAC) called their meeting to order at 7:23 p.m. B. Presentation/discussion and direction regarding the City of Schertz Code of Ordinances, Chapter 54 ? Nuisances, Section 54-22(b)(3) ? Any sign, notice, pole, post, basketball goal, and any other obstructions placed or painted upon any sidewalk, street, or in any public right- of-way within the corporate limits of the City. (J. Bierschwale/B. Todd) 09-17-2013 Minutes Page- 3 - Mayor Carpenter recognized Transportation Safety Advisory Commission (TSAC) Chairman Stephen Bish who stated that they were asked to discuss this issue and provide their findings. He stated a major job of theirs is to ensure street safety. Mayor Carpenter then recognized Mark Davis, Vice-Chair of TSAC, who stated the City Ordinance addresses items which include basketball hoops placed on the sidewalks and in the roadways. A primary concern is the safety of the children.If a portable basketball hoop is down on the sidewalk edge, it obstructs pedestrian movement and the kids are literally playing ball in the street. It is more than just an obstruction issue because you run the risk of impeding traffic flow or damaging your neighbor?s car. Mr. Davis stated the TSAC membership voted unanimously that it was just not a good idea to promote the use of a basketball hoop down on the sidewalk or at the edge of a street. He further addressed Mayor Pro-Tem Fowlers concern about parents wanting to keep the kids close, rather than going down to a park out of sight. Mr. Davis stated there is no easy workaround because if you take the basketball goals out of the ordinance you open up the potential for anyone to put up a hoop in the City on any street. Councilmember Antuna agreed it was a challenge but suggested that streets that stub out would not necessarily be an area of danger. Mayor Carpenter recognized staff members, Executive Director of Development Brian James and Marshal Beverly Todd. Mr. James stated they were looking for a way to balance the issue that would not be too heavy handed and allow city staff the discretion to address any obvious unsafe practices. City Manager John Kessel suggested an amendment to the current ordinance removing it from the nuisance chapter and placing it in the traffic safety section so that the police department could enforce any unsafe occurrences. Code Enforcement could still deal with any nuisance issues. He requested staff to come up with draft ordinances in both code enforcement and traffic safety for Council to look at. Mayor Carpenter recognized Councilmember Edwards who agreed this was a good idea to turn the traffic safety issue over to the Police Department. Mayor Carpenter recognized Police Chief Michael Hansen, who stated if this happens they will simply address the safety problem but will not be involved in neighbor to neighbor issues. He pointed out the current ordinance does not allow for discretion, whereas the suggested option being discussed will. He stated the authority to enforce is already there, the discretion is not. Mayor Carpenter recognized City Marshal Beverly Todd who stated this issue situation came up because of a complaint. She stated they checked with five (5) other cities and none of those cities allowed basketball goals on the streets. Councilmember Scagliola stated that so far this ordinance has worked and one case should not set precedence. Mayor Carpenter recognized TSAC Board Member Max Hernandez, who stated he thinks the Police Department has enough to do. He stated we should prohibit by law from having the basketball goal where they could experience a fatality. Responsibility starts at home. Keep this in the law and in our ordinance. Let those that break the ordinance pay for it. Mayor Carpenter recognized TSAC Board Member Larry Franklin, who stated we should look at the word portable more closely. He doesn?t see why a goal should be left out in the road. Mayor Carpenter recognized City Manager John Kessel, who stated one of the problems that exists in our current ordinance is it specifically states basketball goals; you could also have other unsafe play items such as hockey goals, go-carts, skateboard ramps, etc., all equally 09-17-2013 Minutes Page- 4 - unsafe. The real issue is ?playing in the street?, thus a traffic safety issue. By adding it to our traffic safety ordinance, we will have a better directive. Mayor Carpenter stated again that staff would go back and work on both sections of the ordinances and come back to present Council with drafts for consideration. Adjournment of Special Joint Meeting Traffic Safety Advisory Commission Chairman Stephen Bish recognized Board Member Max Hernandez, who moved, seconded The vote was by Vice Chair Mark Davis to adjourn the Special Joint meeting with Council. unanimous. Motion Carried. Meeting adjourned at 7:59 p.m. Mayor Carpenter moved to the announcement section of the agenda. City Events and Announcements Announcements of upcoming City Events (D. Harris/J. Bierschwale/B. James) Mayor Carpenter recognized Executive Director of Development Brian James who announced the following upcoming events: thst Friday and Saturday, September 20 and 21 the Schertz Fest event will be held at Pickrell Park. Announcements and recognitions by City Manager (J. Kessel) Mayor Carpenter recognized City Manager John Kessel who stated that there is a new wooden plaque that was installed to the right of the doors as you come into the Council Chambers. It has the City?s four (4) Core Values on it which are: (1) Do the right thing, (2) Do the best you can, (3) Treat others as you would be treated, and (4) Work together as a team . He thanked the Police Department who put it together for us. Mayor Carpenter said he was pleased to have this out front because he anticipates the day when residents will remind us of them from time to time. Presentations Presentation and update regarding the upcoming Schertz Fest Event (J. Bierschwale/M. Spence) Mayor Carpenter recognized Events Coordinator Mary Spence who provided a brief Power Point presentation regarding the Fourth of July Jubilee and the upcoming Schertz Fest Event. Ms. Spence stated the Fourth of July event netted a profit of $22,675.75. th Ms. Spence stated the upcoming Schertz Fest is this Friday, September 20 and Saturday, st September 21. In case of rain, they have several plans in place. Festivities will begin on Friday evening from 6 p.m.-11:00 p.m., and Saturday, beginning at 11:00 a.m. until 12:00 09-17-2013 Minutes Page- 5 - p.m. There will be a carnival, food and beverage booths, BBQ cook-off, craft booths, and several bands, along with several competitions. Guadalupe Regional Medical Center Report (Jerry Riggs) Mayor Carpenter recognized Pharmacist Jerry Riggs, R. Ph. with the Guadalupe Regional Medical Center who provided a brief report regarding the Prescription Assistance Program. He stated the program provides assistance to indigent individuals and those without any medical or prescription insurance. Monetary assistance is received from a variety of sources and the City of Schertz contributes $5000 annually. There were 41 individuals from the Schertz area who received assistance during this six month period. Each applicant receives approximately $7,400 worth of prescription benefits per year. Workshop Presentation, discussion and possible action regarding amendments to the City of Schertz Health Insurance Benefits (J. Kessel/J. Smith) Resolution No. 13-R-76 ? 1A.Consideration and/or action approving a Resolution amending the City of Schertz Employee Health Benefits Plan timeframe from a calendar year to a fiscal year, and other matters in connection therewith. The following was read into record: RESOLUTION NO. 13-R-76 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING THE CITY OF SCHERTZ EMPLOYEE HEALTH BENEFITS PLAN TIMEFRAME FROM A CALENDAR YEAR TO A FISCAL YEAR, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Director of Human Resources Josh Smith who introduced this item stating that staff researched the efficacy of keeping the existing health insurance plans on a calendar year as opposed to a fiscal year. For budgetary purposes and other reasons, staff is recommending changing the City?s health insurance plan year from a calendar plan year to a fiscal plan year beginning 10/1/2014 to match the budget cycle. Staff recommends approval. Mayor Carpenter recognized Councilmember Edwards, who moved, seconded by The vote was 4-0-1 with Councilmember Verinder, to approve Resolution No. 13-R-76. Mayor Pro-Tem Fowler, Councilmembers Scagliola, Edwards, and Verinder voting yes and no one voting no, and Councilmember Antuna abstaining. Motion Carried. Resolution No. 13-R-77 1B. ? Consideration and/or action approving a Resolution adopting amendments to the City?s Health Insurance benefits for City Employees, and other matters in connection therewith. 09-17-2013 Minutes Page- 6 - The following was read into record: RESOLUTION NO. 13-R-77 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS ADOPTING AMENDMENTS TO THE CITY?S HEALTH INSURANCE BENFITS FOR CITY EMPLOYEES, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Director of Human Resources Josh Smith who provided a brief Power Point regarding the following summary of renewals answering questions from Council: Budgeted 5% increase 5% increase for medical plans 5.5% increase in dependent premiums 3.9% increase in Vision = $942 annually No increase in Dental PPO No increase in Life or Disability 2014 Insurance Proposals: Offer Dual PPO Plan options: -Maintain traditional PPO with no changes -Offer High deductable PPO plan to decrease dependent premiums Offer Health Savings Account with HDHP City would give to employees difference of cost between Individual PPO Traditional and HDHP = $1,162 to put in HAS or toward premium Employees can contribute additional monies to their HAS through their paychecks Employees with dependents on HDHP would split Affordable Care Act premium refunds to City and apply to dependent premium = $10,962 Increase medical bridge for HSA participants from $500 to $1,000 to help cover catastrophic claims = $1,500 annualized cost Eliminate Dental HMO and provide 2nd PPO option with larger network and more coverage = $1.21 PEPM ($4,385 annually) Move Health Insurance plan year to match fiscal year beginning 10/1/2014 Mayor Carpenter recognized Councilmember Edwards, who moved, seconded by The vote was unanimous Councilmember Verinder, to approve Resolution No. 13-R-77. with Mayor Pro-Tem Fowler, Councilmembers Scagliola, Antuna, Edwards, and Verinder voting yes and no one voting no. Motion Carried. Consent Agenda Items The Consent Agenda is considered to be self-explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request by the Mayor or a Councilmember. 09-17-2013 Minutes Page- 7 - Mayor Carpenter recognized Mayor Pro-Tem Fowler who requested that Item 8 be removed for separate action. Minutes 1. - Consideration and/or action regarding the approval of the minutes of the Special Meeting of September 6, 2013, and Regular Meeting of September 10, 2013. (J. Kessel/B. Dennis) Ordinance No. 13-D-41 2. ? Consideration and/or action approving an Ordinance amending Chapter 86 of the Code of Ordinances by the City of Schertz, as amended, by adding Section 86-63, Prohibiting the use of Engine Brakes on any streets or highways within the City, providing a penalty of fine not to exceed the sum of Five Hundred Dollars ($500.00) for each offense; repealing all Ordinances or parts of Ordinances in conflict with this Ordinance; and Final Reading providing an effective date. (J. Bierschwale/M. Hansen) The following was read into record: ORDINANCE NO. 13-D-41 AN ORDINANCE AMENDING CHAPTER 86 OF THE CODE OF ORDINANCES OF THE CITY OF SCHERTZ, AS AMENDED, BY ADDING SECTION 86-63, PROHIBITING THE USE OF ENGINE BRAKES ON ANY STREETS OR HIGHWAYS WITHIN THE CITY, PROVIDING A PENALTY OF FINE NOT TO EXCEED THE SUM OF FIVE HUNDRED DOLLARS ($500.00) FOR EACH OFFENSE; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE Resolution No. 13-R-80 3. ? Consideration and/or action approving a Resolution authorizing an Advertising and Graphic Design Services Agreement with Souzamaphone Marketing, LLC, and other matters in connection therewith. (D. Harris/L. Klepper) The following was read into record: RESOLUTION NO. 13-R-80 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN ADVERTISING AND GRAPHIC DESIGN SERVICES AGREEMENT WITH SOUZAMAPHONE MARKETING, LLC, AND OTHER MATTERS IN CONNECTION THEREWITH Resolution No. 13-R-71Schertz Seguin Local Government Corporation (SSLGC) Fiscal 4. - Year 2013-14 Annual Budget SSLGC Resolution # SSLGC #SSLGC R-13-09 - Consideration and/or action approving the Schertz Seguin Local Government Corporation (SSLGC) FY 2013-14 Budget. (J. Bierschwale/S. Willoughby/A. Cockerell) The following was read into record: RESOLUTION NO. 13-R-71 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING THE SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION 09-17-2013 Minutes Page- 8 - FISCAL YEAR 2013-14 ANNUAL BUDGET, AND OTHER MATTERS IN CONNECTION THEREWITH Resolution No. 13-R-72 -Schertz Seguin Local Government Corporation (SSLGC) 5. Fiscal Year 2013-14 Water Rates SSLGC Resolution # SSLGC #SSLGC R-13-10 - Consideration and/or action approving the Schertz Seguin Local Government Corporation (SSLGC) FY 2013-14 Water rates. (J. Bierschwale/S. Willoughby/A. Cockerell) The following was read into record: RESOLUTION NO. 13-R-72 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OFSCHERTZ, TEXAS APPROVING THE SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION FISCAL YEAR 2013-14 WATER RATES, AND OTHER MATTERS IN CONNECTION THEREWITH Resolution No. 13-R-73 6. ? Consideration and/or action approving a Resolution authorizing a Management Services Agreement with Schertz Seguin Local Government Corporation (SSLGC). (J. Bierschwale/S. Willoughby/A. Cockerell) The following was read into record: RESOLUTION NO. 13-R-73 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN AGREEMENT FOR MANAGEMENT SERVICES BETWEEN THE CITY OF SCHERTZ AND THE SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION WITH SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION, AND OTHER MATTERS IN CONNECTION THEREWITH Resolution No. 13-R-74 7. ? Consideration and/or action approving a Resolution authorizing a second amendment to Tower Lease Agreement with Clear Wireless LLC, and other matters in connection therewith. (J. Kessel/B. Cantu) The following was read into record: RESOLUTION NO. 13-R-74 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A SECOND AMENDMENT TO TOWER LEASE AGREEMENT WITH CLEAR WIRELESS LLC, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Councilmember Scagliola, who moved, seconded by The vote was Councilmember Edwards, to approve the Consent Agenda Items 1 through 7. unanimous with Mayor Pro-Tem Fowler, Councilmembers Scagliola, Antuna, Edwards, and Verinder voting yes and no one voting no. Motion Carried. 09-17-2013 Minutes Page- 9 - Discussion and Action Items Resolution No. 13-R-79 8. ? Consideration and/or action approving a Resolution authorizing a Personal Services Agreement with Charmain Sanchez for Services related to Marketing and Developing certain City Property for the purpose of the Installation and Operation of Wireless Communication Equipment and Systems and the Continued Management of the City?s Telecommunications Tenants, and other matters in connection therewith. (J. Kessel/B. Cantu) The following was read into record: RESOLUTION NO. 13-R-79 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A PERSONAL SERVICES AGREEMENT WITH CHARMAIN SANCHEZ FOR SERVICES RELATED TO MARKETING AND DEVELOPING CERTAIN CITY PROPERTY FOR THE PURPOSE OF THE INSTALLATION AND OPERATION OF WIRELESS COMMUNICATIONS EQUIPMENT AND SYSTEMS AND THE CONTINUED MANAGEMENT OF THE CITY?S TELECOMMUNICATIONS TENANTS, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Chief of Staff Bob Cantu who introduced this item stating that the City staff determined that the City requires the services of a skilled consultant relating to the marketing and managing of City real estate for telecommunications development. On August 5, 2008 the City passed and adopted Resolution No 08-R-42 authorizing the City Manager to execute a Personal Services Agreement with Charmain Sanchez, an individual uniquely qualified to provide such services for the City. The Agreement with Ms. Sanchez was for a five (5) year period, and if not renewed, expires on September 30, 2013. Section II paragraph 2.02 states that the City and the Consultant may agree to further renewals. Revenues generated from the leases and lease amendments negotiated by Ms. Sanchez over the twenty (20) year term of the agreements. In the past five years, these agreements have paid out $909,387.81. A third of this revenue is attributed to fees and requests by Tenants to change equipment needed to support new technology and improve service. These modification requests will continue as the telecom industry evolves and offers via wireless equipment further increasing revenues. Ms. Sanchez is uniquely qualified in managing these requests, establishing pricing for equipment, amending the Agreements resulting in increasing rent to the City. The City expects more requests for telecommunication sites as new development continues. Staff recommends approval. Mayor Carpenter recognized Mayor Pro-Tem Fowler, who moved, seconded by The vote was unanimous Councilmember Edwards, to approve Resolution No. 13-R-79. with Mayor Pro-Tem Fowler, Councilmembers Scagliola, Antuna, Edwards, and Verinder voting yes and no one voting no. Motion Carried. Resolution No. 13-R-75 9. ? Consideration and/or action approving a Resolution authorizing an Interlocal Agreement between the City of Schertz, Texas and the Cibolo Creek Municipal Authority regarding purchase of property for a future Wastewater Treatment Facility with the 09-17-2013 Minutes Page- 10 - Cibolo Creek Municipal Authority, and other matters in connection therewith. (J. Bierschwale/S. Willoughby) The following was read into record: RESOLUTION NO. 13-R-75 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF SCHERTZ, TEXAS AND THE CIBOLO CREEK MUNICIPAL AUTHORITY REGARDING PURCHASE OF PROPERTY FOR A FUTURE WASTEWATER TREATMENT FACILITY WITH THE CIBOLO CREEK MUNICIPAL AUTHORITY, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Executive Director of Operations John Bierschwale who introduced this item stating that with the development of Southern Schertz and to meet current and future waste water demands, CCMA needs to begin the process of purchasing the land for the Southern Wastewater Treatment Plants. Negotiations have begun between a tri-party agreement with CCMA, Cibolo and Schertz to complete the contracts for the wastewater treatment. As we continue to develop the tri-party agreement, TCEQ permits must be applied for the plant treatment affluent into the Cibolo Creek and/or reuse water programs. CCMA has selected three different sites for the treatment plant and wants to begin negotiations for the preferred site for the discharge point into the Cibolo Creek, maintaining the best quality nutrients of the creek. Once CCMA has completed land negotiations, the City will provide funding up to $2 million dollars. The City will be reimbursed by CCMA once the revenue bonds have been sold or full reimbursement terms as described in Section 2 of the Interlocal Agreement. FISCAL IMPACT: To assist the Authority in its efforts to acquire the Plant Site, the City desires to advance, in accordance with the terms of this Agreement, up to Two Million and No/100 Dollars ($2,000,000.00) to the Authority for use by the Authority to purchase the Plant Site and to perform legal and due diligence activities in connection with such acquisition. City staff recommends that the City enter into an Interlocal Agreement between the City of Schertz, Texas and the Cibolo Creek Municipal Authority regarding purchase of Property for a Future Wastewater Treatment Facility with Cibolo Creek Municipal Authority relating to advancement of funds for the purchase of property for a future wastewater treatment facility. Staff recommends approval. Mayor Carpenter recognized Councilmember Edwards, who moved, seconded by The vote was unanimous with Councilmember Antuna, to approve Resolution No. 13-R-75. Mayor Pro-Tem Fowler, Councilmembers Scagliola, Antuna, Edwards, and Verinder voting yes and no one voting no. Motion Carried. Resolution No. 13-R-78 10. ? Consideration and/or action approving a Resolution approving and ratifying a Purchase and Sale Agreement and a First Amendment to Purchase and Sale 09-17-2013 Minutes Page- 11 - Agreement, both with Michael F. Biry and Jennifer S. Biry, and authorizing a Continuation Notice granting consent to proceed to Closing related to such Agreement and Amendment, all in connection with the purchase by the City of Real Property located along Commercial Place and Windy Meadows Drive, described as Lots 31 and 32, Block 1, Schertz Business Park according to the plat recorded in Volume 5, Page 225B, Lot 24, Block 2 Windy Meadow, according to the plat recorded in Volume 5, Page 50A-51A, Lots 23, 24, and 28 Block 1, Schertz Business Park, according to the plat recorded in Volume 4, Page 336, all located in the City of Schertz, Guadalupe County, Texas, as well as the Purchase of related improvements and Personal Property, from Michael F. Biry and Jennifer S. Biry, and other matters in connection therewith. (J. Bierschwale/K. Tapley) The following was read into record: RESOLUTION NO. 13-R-78 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING AND RATIFYING A PURCHASE AND SALE AGREEMENT AND A FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT, BOTH WITH MICHAEL F. BIRY AND JENNIFER S. BIRY, AND AUTHORIZING A CONTINUATION NOTICE GRANTING CONSENT TO PROCEED TO CLOSING RELATED TO SUCH AGREEMENT AND AMENDMENT, ALL IN CONNECTION WITH THE PURCHASE BY THE CITY OF REAL PROPERTY LOCATED ALONG COMMERCIAL PLACE AND WINDY MEADOWS DRIVE, DESCRIBED AS LOTS 31 AND 32, BLOCK 1, SCHERTZ BUSINESS PARK ACCORDING TO THE PLAT RECORDED IN VOLUME 5, PAGE 225B, LOT 24, BLOCK 2, WINDY MEADOW, ACCORDING TO THE PLAT RECORDED IN VOLUME 5, PAGE 50A-51A, LOTS 23, 24, AND 28 BLOCK 1, SCHERTZ BUSINESS PARK, ACCORDING TO THE PLAT RECORDED IN VOLUME 4, PAGE 336, ALL LOCATED IN THE CITY OF SCHERTZ, GUADALUPE COUNTY, TEXAS, AS WELL AS THE PURCHASE OF RELATED IMPROVEMENTS AND PERSONAL PROPERTY, FROM MICHAEL F. BIRY AND JENNIFER S. BIRY, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Councilmember Edwards who stated that Council had been briefed on this item and knows this is the plan for the Public Works facility and the master plan and he wanted to make a motion to pass Resolution No. 13-R-78. Mayor Carpenter recognized Edwards, who moved, seconded by Councilmember Scagliola, The vote was unanimous with Mayor Pro-Tem to approve Resolution No. 13.-R-78. Fowler, Councilmembers Scagliola, Antuna, Edwards, and Verinder voting yes and no one voting no. Motion Carried. Roll Call Vote Confirmation Mayor Carpenter recognized Deputy City Secretary Donna Schmoekel who recapped the votes for the presentation and agenda items 1 through 15. 09-17-2013 Minutes Page- 12 - Requests and Announcements 11. Announcements by City Manager Citizen Kudos Recognition of City employee actions New Departmental initiatives City Manager John Kessel & Executive Director of Support David Harris will be attending the annual International City Manager Association (ICMA) conference held in Boston. Therefore they will not be attending next week?s council meeting. No further announcements provided. 12. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. No items requested. 13. Requests by Mayor and Councilmembers to City Manager and Staff for information. Mayor Carpenter recognized Mayor Pro-Tem Fowler who stated that he had spoken to Executive Director of Development Brian James this week and has agreed to have staff bring the frontage lot width discussion item back on October 15, 2013, due to no City Council meetings on October 1, 2013, and October 8, 2013. 14. 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 Carpenter recognized Mayor Pro-Tem Fowler stated he attended the Chamber of Commerce Luncheon today. Mayor Carpenter recognized Councilmember Scagliola who attended the following events: Monday, September 16, 2013, he attended the POW MIA Ceremony at the VFW Tuesday, September 17, 2013, Schertz Chamber of Commerce meeting Mayor Carpenter recognized Councilmember Edwards who stated he also attended the Schertz Chamber Luncheon. He congratulated Ms. Titterington on reaching 300 active members of the Chamber. Councilmember Edwards congratulated Ms. Titterington. 09-17-2013 Minutes Page- 13 - Mayor Carpenter recognized Councilmember Verinder who stated he attended the following events: Friday, September 13, 2013, Investment Advisory Committee Meeting Friday, September 13, 2013, Schertz Animal Services/Homes For Pets Fundraiser Mayor Carpenter congratulated Council. He stated a lot of the business they conduct is routine, 90% of the items they are asked to deal with are routine. Sometimes they are confronted with decision where it is not routine, it?s pace setting, or it is changing a direction of the City that will have a palatable effect over the long term. We had one of those tonight, where the Council acted decisively and with strength and courage. He appreciates it and congratulated each member of Council. Adjournment As there was no further business, the meeting was adjourned at 9:14 p.m. __________________________________ Mayor, Michael R. Carpenter ATTEST: __________________________________ Deputy City Secretary, Donna Schmoekel 09-17-2013 Minutes Page- 14 - Agenda No. 2 CITY COUNCIL MEMORANDUM City Council Meeting: September 24, 2013 Department: Council Subject:Cancellation of the October 1, 2013, and October 8, 2013 City Council meetings BACKGROUND City Administration finds that in observance of ?National Night Out? the City Council meeting of October 1, 2013 should be cancelled to allow Council to participate. City Administration also finds that a majority of the City Council will be attending the Texas Municipal League Conference in Austin which starts October 8, 2013 and goes through October 11, 2013, and recommends cancelling the October 8, 2013 City Council meeting to allow Council to participate. FISCAL IMPACT None RECOMMENDATION Staff recommends Council cancelling the October 1, 2013, and the October 8, 2013 regular Council meetings. Agenda No. 3 CITY COUNCIL MEMORANDUM City Council Meeting: September 24, 2013 Department: EMS Subject: Resolution No. 13-R-83 - EMS Accounts Receivables Adjustments BACKGROUND: Per City Policy, EMS is to bring our contractual and accounts receivables adjustments before City Council for proper accounting procedures to be accomplished by the Finance Department. FISCAL IMPACT The first adjustments we are requesting Council to make are on private pay accounts that have been referred to our collection agency (MVBA). These represent accounts that were sent to MVBA from May 1, 2013 through August 31, 2013. For this period we are requesting to remove $542,537.03 from our accounts receivables account. These funds, from 494 separate accounts will continue to be pursued and if recovered will be accounted for as miscellaneous revenue. The second adjustment comes from our internal billing procedures. Some of these are negotiated charge reductions, write-off?s of co-pays for citizens in the cities we serve, bills of homeless patients who we cannot locate any longer, and bills of deceased patients who do not have insurance or estates from which to recover EMS charges for service. The amount of this category is $14,048.92. This period?s total adjustments are $556,585.95. This is the second Account Receivable Adjustment of Fiscal Year 2013 and brings the adjustment total to $1,672,550.41 out of a budgeted amount of $1,777,545. RECOMMENDATION Staff recommends Council approve Resolution No. 13-R-83 ATTACHMENTS Resolution No. 13-R-83 RESOLUTION NO. 13-R-83 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING EMS DEBT REVENUE ADJUSTMENTS FOR INACTIVE OUTSTANDING ACCOUNTS RECEIVABLES AFTER 180 DAYS OF NON PAYMENT AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the ?City?) has recommended that the City maintains quarterly debt revenue adjustments for inactive outstanding accounts; and WHEREAS, the City Council has determined that it is in the best interest of the City that all inactive outstanding accounts after 180 days non payment will be sent to City Council for consideration of EMS Billing Debt Revenue Adjustments attached hereto as Exhibit A. (the ?Account Receivable Adjustment Register?). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the EMS Billing Debt Revenue Adjustment on the write off audit register, in substantially the form set forth on Exhibit A Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and finding of the City Council. Section 3. All resolutions or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is 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 Resolution, was given, all as required by Chapter 551, Texas Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 24th day of September, 2013. CITY OF SCHERTZ, TEXAS __________________________________ Mayor, Michael R. Carpenter ATTEST: ___________________________ City Secretary, Brenda Dennis (CITY SEAL) Exhibit A EMS Account Receivable Adjustment Register May 1, 2013 ? August 31, 2013 PRIVATE PAY EMS COLLECTION ACCOUNTS: Collection accounts with Collection Agency (01/01/13 ? 04/30/13): $542,537.03 EMS BILLING PROCEDURAL REVENUE ADJUSTMENTS: Revenue adjustments by EMS Billing (01/01/13 ? 04/30/13): $ 14,048.92 TOTAL REQUESTED ADJUSTMENTS: $556,585.95 Agenda No. 4 CITY COUNCIL MEMORANDUM City Council Meeting: September 24, 2013 Department: Business Office/Utility Billing Subject:Resolution No. 13-R-84 - Utility Billing Debt Revenue Adjustments BACKGROUND Goal Our goal is to ensure that our outstanding receivables are current. Community Benefit By exhausting all efforts to collect outstanding debts, this will insure the lowest possible rate to the community. Summary of Recommended Action It is the recommendation of the City Auditor, Debbie Fraser, to keep our receivables current. FISCAL IMPACT To ensure that our outstanding receivables are current, we are requesting to write-off $4,199.82 uncollectible Water, Sewer, Garbage, and Drainage Accounts. The amounts included in this request are for the period of January 1, 2013 through March 31, 2013. All collections efforts have been exhausted. RECOMMENDATION Staff recommends City Council approve Resolution No. 13-R-84 for the Write-Off amount $4,199.82 of. ATTACHMENT Resolution No. 13-R-84 Utility Billing Debt Revenue Adjustments RESOLUTION NO. 13-R-84 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING UTILITY BILLING DEBT REVENUE ADJUSTMENTS FOR INACTIVE OUTSTANDING ACCOUNTS RECEIVABLES AFTER 180 DAYS OF NON PAYMENT AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the ?City?) has recommended that the City maintains quarterly debt revenue adjustments for inactive outstanding accounts; and WHEREAS, the City Council has determined that it is in the best interest of the City that all inactive outstanding accounts after 180 days non payment will be sent to City Council for consideration of Utility Billing Debt Revenue Adjustments attached hereto as ?Exhibit A?. (the ? Write Off Audit Register?). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes Utility Billing Debt Revenue Adjustment on the write off audit register, in substantially the form set forth on ?Exhibit A?. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and finding of the City Council. Section 3. All resolutions or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is 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 Resolution, was given, all as required by Chapter 551, Texas Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. th PASSED AND ADOPTED, this 24 day of September, 2013. CITY OF SCHERTZ, TEXAS __________________________________ Mayor, Michael Carpenter ATTEST: ___________________________ City Secretary, Brenda Dennis (CITY SEAL) Agenda No. 5 CITY COUNCIL MEMORANDUM City Council Meeting: September 24, 2013 Department: Public Works Subject:Resolution No. 13-R-81 -FM 3009 & FM 2252 ? A Resolution by the City Council of the City of Schertz, Texas Authorizing a Release of Waterline Easement for a 25 foot wide waterline easement located in Comal County, Texas originally granted to the City by George M. Heberer and India D. Heberer, and more specifically described in the easement document recorded in volume 417, page 467 of the Official Records of Guadalupe County, Texas, and other matters in connection therewith. BACKGROUND In the winter of 2012, the City relocated water mains as requested by the Texas Department of Transportation (TxDOT) due to conflict with their road improvements at the intersection of FM 3009 and FM 2252. There was an existing 25?waterline easement that was dedicated to the City in 1969 by George M. Heberer and India D. Heberer that ran through the center of a private lot and the Public Works staff worked with the owner to acquire a waterline easement that is more conducive to the owner and the City. It was agreed upon that after the relocation of the waterline, the existing 25?easement would be released and the proper documents be recorded in the counties of Comal and Guadalupe because although the Easement is located in Comal County, the easement agreement was recorded in Guadalupe County. The project has been completed and inspected and meets all Public Works requirements. Goal To release an existing 25? waterline easement that is no longer being utilized by the City. Community Benefit To have a correct and up to date easement recorded with the County. Summary of Recommended Action Staff recommends Council approve the resolution authorizing the City Manager to execute the necessary document to release the existing 25? waterline easement. FISCAL IMPACT No fiscal impact for the easement abandonment. RECOMMENDATION Staff recommends Council approve Resolution 13-R-81 ATTACHMENTS Resolution 13-R-81 Exhibit A: Release of Waterline Easement Exhibit B: Map of Property RESOLUTION NO. 13-R-81 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A RELEASE OF WATERLINE EASEMENT FOR A 25 FOOT WIDE WATERLINE EASEMENT LOCATED IN COMAL COUNTY, TEXAS, ORIGINALLY GRANTED TO THE CITY BY GEORGE M. HEBERER AND INDIA D. HEBERER, AND MORE SPECIFICALLY DESCRIBED IN THE EASEMENT DOCUMENT RECORDED IN VOLUME 417, PAGE 467 OF THE OFFICIAL RECORDS OF GUADALUPE COUNTY, TEXAS, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS , on March 11, 1969, George M. Heberer and India D. Heberer, pursuant to Easement Agreement an Easement agreement (the ??), granted a 25 foot wide waterline Easement easement (the ??) to the Releasor over that certain real property more particularly Property described on Exhibit A attached hereto and incorporated herein (the ??). WHEREAS , although the Easement was located in Comal County, Texas, the Easement Agreement was recorded in Guadalupe County, Texas in Volume 417, Page 467 of the Official Records of Guadalupe County, Texas, on March 14, 1969. WHEREASWaterline , one or more waterlines (the ??) were located in the Easement. WHEREAS , because of construction occurring near the location of the Easement, the Releasor needed to relocate the Waterline and the Easement to a new location. WHEREAS , the current owner of the fee simple interest in the Property has previously, by separate instrument, granted to the Releasor a new waterline easement for the relocation of the Waterline and the Easement. WHEREAS , the Releasor has completed the relocation of the Waterline and no longer has a need for the Easement. WHEREAS , the Releasor has determined that it is in the Releasor?s best interest to release the Easement. WHEREAS , although the Easement is located in Comal County, Texas, because the Easement Agreement was recorded in Guadalupe County, Texas, this Release of Waterline Easement is being recorded in both Comal and Guadalupe Counties, Texas. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1.The City Council hereby authorizes the City Manager to execute the Release of Waterline Easement as outlined in Exhibit ?A? . Section 2.The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3.All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4.This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5.If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6.It is officially found, determined, and declared that the meeting at which this Resolution is 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 Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7.This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this ____ day of _________, 2013. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) EXHIBIT A RELEASE OF WATERLINE EASEMENT A-1 After Recording, Please Return to: Norton Rose Fulbright 300 Convent Street, Suite 2100 San Antonio, Texas 78205 Attention: Katherine A. Tapley NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER?S LICENSE NUMBER. STATE OF TEXAS § § COUNTIES OF COMAL AND GUADALUPE § RELEASE OF WATERLINE EASEMENT RELEASE OF WATERLINE EASEMENT Thisis executed to be effective as of the date of the acknowledgement by the City of Schertz, Texas, a Texas municipal corporation (the Releasor ??). WHEREAS , on March 11, 1969, George M. Heberer and India D. Heberer, pursuant to Easement Agreement an Easement agreement (the ??), granted a 25 foot wide waterline Easement easement (the ??) to the Releasor over that certain real property more particularly Property described on Exhibit A attached hereto and incorporated herein (the ??). WHEREAS , although the Easement was located in Comal County, Texas, the Easement Agreement was recorded in Guadalupe County, Texas in Volume 417, Page 467 of the Official Records of Guadalupe County, Texas, on March 14, 1969. WHEREASWaterline , one or more waterlines (the ??) were located in the Easement. WHEREAS , because of construction occurring near the location of the Easement, the Releasor needed to relocate the Waterline and the Easement to a new location. WHEREAS , the current owner of the fee simple interest in the Property has previously, by separate instrument, granted to the Releasor a new waterline easement for the relocation of the Waterline and the Easement. WHEREAS , the Releasor has completed the relocation of the Waterline and no longer has a need for the Easement. WHEREAS , the Releasor has determined that it is in the Releasor?s best interest to release the Easement. Page 1 50678604.1 WHEREAS , although the Easement is located in Comal County, Texas, because the Easement Agreement was recorded in Guadalupe County, Texas, this Release of Waterline Easement is being recorded in both Comal and Guadalupe Counties, Texas. NOW THEREFORE, for Ten and No/100 Dollars ($10.00) and other good and valuable consideration, the adequacy and receipt of which is acknowledged, Releasor has ABANDONED, RELEASED, QUITCLAIMED, DISCHARGED DOES HEREBY andand ABANDON, RELEASE, QUITCLAIM, DISCHARGE and the Easement. [ Signature and acknowledgment on the following page ] Page 2 50678604.1 SIGNATURE PAGE TO RELEASE OF WATERLINE EASEMENT IWW,the undersigned has executed this Release of Waterline Easement NITNESSHEREOF to be effective as of the date of the acknowledgment. R: ELEASOR CS,T, ITY OF CHERTZEXAS a Texas municipal corporation By: John C. Kessel, City Manager THE STATE OF TEXAS § § COUNTY OF GUADALUPE § This instrument was executed before me on this ___ day of __________________, 2013, by John C. Kessel, the City Manager of the City of Schertz, Texas, a Texas municipal corporation, on behalf of said City. [ Seal ] _____________________________________ , NOTARY PUBLIC STATE OF TEXAS S-1 50678604.1 EXHIBIT A TO RELEASE OF WATERLINE EASEMENT THE PROPERTY 50678604.1 Exhibit A, Page 1 Agenda No.6 CITY COUNCIL MEMORANDUM City Council Meeting: September 24, 2013 Department: Public Works Subject:Resolution No. 13-R-82 ? Approving agreements for one (1) 16-foot Permanent Sanitary Sewer Easement and one (1) 25-foot by 25-foot Turnaround Sanitary Sewer Easement with Schertz Commercial Park, L.P. in the Northcliffe Plaza Development and all others matters connected therewith. BACKGROUND Schertz Commercial Park, L.P. is in the process of developing the Northcliffe Plaza Subdivision located at the intersection of Country Club Blvd. and IH-35. The developer needs to extend a sewer line to his property. To do so, a 16? Sanitary Sewer Line Easement and a 25?x25? Sanitary Sewer Turnaround Easement are needed. Usually, this process would be done at the time of platting, but the property is already platted and in the site plan process now. Goal To accept two (2) Permanent Sanitary Sewer Easement Agreements from Schertz Commercial Park, L.P. Community Benefit To ensure that all citizens and businesses of Schertz have access to and use of the necessary and required infrastructure for sewer and water services. Summary of Recommended Action Staff recommends Council approve the resolution authorizing the City Manager to execute and deliver the easement agreements with Schertz Commercial Park, L.P. in substantially the form set forth on Exhibit A. FISCAL IMPACT No fiscal impact for the easement dedication. RECOMMENDATION Staff recommends Council approve Resolution 13-R-82 ATTACHMENTS Resolution 13-R-82 Exhibit A: Two (2) Permanent Sewer Easement Agreements with location map RESOLUTION NO. 13-R-82 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING AGREEMENTS FOR ONE (1) 16-FOOT PERMANENT SANITARY SEWER EASEMENT AND ONE (1) 25-FOOT BY 25-FOOT TURNAROUND SANITARY SEWERLINE EASEMENT FROM SCHERTZ COMMERCIAL PARK, L.P. IN THE NORTHCLIFFE PLAZA DEVELOPMENT AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the ?City?) has recommended that the City enter into agreements for one (1) 16-foot Permanent Sanitary Sewer Easement Agreement and one (1) 25-foot by 25-foot Turnaround Sanitary Sewer Easement Agreement with Schertz Commercial Park, L.P. ; and WHEREAS, the City Council has determined that it is in the best interest of the City to contract with Schertz Commercial Park, L.P. pursuant to the one (1) 16-foot Permanent Sanitary Sewer Easement and one (1) 25-foot by 25-foot Turnaround Sanitary Sewer Easement Agreements attached hereto as Exhibit A (the ?Agreements?). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1.The City Council hereby authorizes the City Manager to execute and deliver the Agreements with Schertz Commercial Park, L.P. in substantially the form set forth on Exhibit A. Section 2.The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3.All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4.This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5.If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6.It is officially found, determined, and declared that the meeting at which this Resolution is 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 Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7.This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 24th day of September, 2013. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) EXHIBIT A EASEMENT AGREEMENTS A-1 Agenda No. 7 CITY COUNCIL MEMORANDUM City Council Meeting: September 24, 2013 Department: Development Services Resolution No. 13-R-85 ? Consideration and/or Subject: action approving a Resolution authorizing and agreement with AACOG regarding transit services. (B. James/B. James) BACKGROUND: Currently, Schertz residents benefit from access to ART, the rural transit system operated by the Alamo Area Council of Governments (AACOG). While the number of passenger trips for our residents is modest, approximately 930, this option for transit is important to those who use the transit service. Almost 75 percent of those who use this service are seniors and almost half the trips are for medical appointments (non-Medicaid). The ability to use transit makes it possible for these residents to be independent and improves quality of life. Up until recently, funds to operate rural transit were provided by the Texas Department of Transportation (TxDOT) from federal and state funds for rural areas. As a result of the 2010 Census, Schertz was recently included in the San Antonio urbanized area and Rural Transit funds cannot be used to fund this service. Instead, funds provided to VIA for service to Large Urban Areas can be used. This funding does require a local match from the City of Schertz. As part of the 2013-1014 Budget, the City allocated $22,000 for FY 2013-2014. Slightly more funding was available from VIA than had been anticipated, which increases the City?s match by $20.00 to $22,020. Staff will administratively move the necessary $20.00 from Contingencies to cover this. Staff is recommending that the City enter into an agreement with AACOG to continue to provide transportation services. FISCAL IMPACT For the 2013-2014 FY, the fiscal impact is $22,020. Staff anticipates this amount will likely increase over time as demand for the service increases. RECOMMENDATION Staff recommends Council approve Resolution No. 13-R-85 ATTACHMENTS Resolution No. 13-R-85 Draft Agreement with AACOG City Council Memorandum Page 2 Schertz/Cibolo Data FTA Formula Funds Generated Memo-Resolution.doc RESOLUTION NO. 13-R-85 A RESOLUTION BY THE CITY COUNCIL AUTHORIZING AN AGREEMENT WITH THE ALAMO AREA COUNCIL OF GOVERNMENTS (AACOG) TO PROVIDE FUNDING UP TO $22,020 FOR TRANSIT SERVICES IN THE CITY OF SCHERTZ. WHEREAS the Alamo Area Council of Governments (AACOG) has been providing rural transit services to Schertz through the ART program, and WHEREAS as a result of the 2010 Census the City of Schertz is now part of the San Antonio Urbanized Area, and WHEREAS, as a result of this designation, Rural Transit funds can no longer be used to support this service, and WHEREAS, VIA Metropolitan Transit is the designated recipient for Urban Funds which can be used to support this program, and WHEREAS a local match of $22,020.00 is required for the upcoming 2013-2014 Fiscal Year, WHEREAS AACOG has been designated by VIA as the recipient of funds to continue to provide transit services, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1.The City Council desires to enter into an agreement with AACOG to provide match funds of $22,020.00 in order for the Alamo Area Council of Governments (AACOG) to continue to provide this transportation service generally per the agreement attached as Exhibit A. Section 2.The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3.All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4.This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5.If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City -1- Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6.It is officially found, determined, and declared that the meeting at which this Resolution is 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 Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7.This Resolution shall be in force and effect from and after its final passage, and it is so resolved. th PASSED AND ADOPTED, this 24 day of September, 2013. CITY OF SCHERTZ, TEXAS Mayor, Michael R. Carpenter ATTEST: City Secretary, Brenda Dennis (CITY SEAL) -2- Exhibit ?A? Agreement with AACOG -3- INTERLOCAL AGREEMENT FOR City of Schertz Demand-response Route Article 1. Parties and Purpose 1.1 The Alamo Area Council of Governments ("AACOG") is a regional planning commission and political subdivision of the State of Texas, organized and operating under the Texas Regional Planning Act of 1965, as amended, Chapter 391 of the Local Government Code. 1.2 The City of Schertz (the "City") is a home rule municipality, located in Bexar, Comal, and Guadalupe County Counties, Texas. 1.3 This Interlocal Agreement (the ?Agreement?) for provision of demand-response public transportation services by AACOG for the City is entered into by and between the City and AACOG, as authorized under Chapter 791 of the Texas Government Code. Article 2. Definitions 2.1 Curb-to-curb. Picking up and discharging passengers at the curb or driveway in front of their home or destination. The driver does not assist or escort passengers to the door. 2.2 Demand-response. A non-fixed route system of transporting individuals in which individual passengers may, at least one day in advance, request a trip from one specific location to another specific location at a certain time. 2.3 Designated holidays. Christmas Day, Independence Day, Labor Day, Memorial Day, New Year?s Day, and Thanksgiving. Article 3. Goods and Services 3.1 For the City?s financial commitment below, AACOG agrees to furnish the City with a demand-response, curb-to-curb, public transportation service in response to requests made by residents of City to AACOG?s Alamo Regional Transit (ART). The service will be open to the public and run Monday through Friday from 7:00 a.m. to 6:00 p.m. for 52 weeks per year, excluding designated holidays. AACOG will provide for the following: a. Vehicles having wheelchair accessibility; b. Necessary, trained personnel to operate the demand-response service; c. Operating & administrative activities and expenses associated with operation of the demand-response transportation service; Page 1 of 5 d. Ensuring all vehicles used in service to City are well maintained to afford comfortable, safe, and reliable transportation for the City?s residents. 3.2 In return for provision of AACOG?s demand-response transportation service, the City agrees: a. To provide AACOG with financial support for Fiscal Year 2014 operations in the amount of twenty two thousand, twenty dollars ($22,020) (the ?Financial Contribution?) to help defray operating costs of the demand-response service; b. To continue financial support of the demand-response service to AACOG in succeeding fiscal years, so long as the City wishes the transportation services to continue; c. That the vehicles used shall not be for the exclusive use by or benefit of City?s residents, residents shall have no expectation of riding alone or only with other City residents, and the City shall have no ownership right in the vehicles engaged in these services; and d. It shall, for both Fiscal Year 2014 and all subsequent years it may wish to continue this service, make contributions for performance of the transportation services from current revenues available to it. Article 4. Agreement Sum and Payment Terms 4.1 The parties have agreed to the City?s Contribution for Fiscal year 2014. 4.2 The City and AACOG agree to meet annually, at a mutually agreeable time sufficiently in advance of the City?s budget cycle for the fiscal year to which the Financial Contribution is to apply, to negotiate and agree to the City?s Financial Contribution for the next fiscal year. st 4.3 AACOG shall invoice the City for the Financial Contribution on or about October 1 of each year, beginning in 2013. 4.4 The City shall contribute to AACOG the total Financial Contribution by November 1st, 2013. The City shall contribute all future agreed upon Financial Contributions for succeeding years by November 1st of the applicable fiscal year. Article 5. Effective Date and Term of Agreement 5.1 This Agreement shall be for a period of one (1) year, beginning October 1, 2013 and ending on September 30, 2014. 5.2 This Agreement shall renew automatically for successive one-year periods unless either party notifies the other at the address provided at Article 9 at least sixty (60) days prior to the then current expiration date of its intention to not renew the Agreement. Page 2 of 5 Article 6. Nondiscrimination and Equal Opportunity 6.1. Neither AACOG nor the City shall exclude anyone from participating in and receiving benefits of the services provided under this Agreement, or otherwise unlawfully discriminate against anyone in carrying out this Agreement because of race, color, religion, sex, age, disability, veteran status, or national origin. Article 7. Early Termination of Agreement 7.1 If either AACOG or the City breaches a material provision of this Agreement, the other party may notify the breaching party, describing the breach and demanding corrective action be taken. The breaching party shall have five (5) business days from its receipt of notice to correct the breach or to begin and continue with reasonable diligence and in good faith to correct the breach. If the breach cannot be corrected within a reasonable time, despite the breaching party's reasonable diligence and good faith effort to do so, the parties may agree to terminate this Agreement or either party may invoke the dispute resolution process of Article 8. 7.2 Termination for breach under Section 7.1 does not waive either party's claim for damages resulting from the breach. Article 8. Dispute Resolution 8.1 The parties desire to resolve disputes arising under this Agreement without litigation. Accordingly, if a dispute arises, the parties agree to attempt in good faith to resolve the dispute among them. To this end, the parties agree not to sue one another, except to enforce compliance with this Article 8, until they have exhausted the procedures set out in this Article. 8.2 At the written request of a party, each party shall appoint one representative to negotiate informally and in good faith to resolve any dispute arising under the Agreement. The representatives appointed shall determine the location, format, frequency, and duration of the negotiations. 8.3 If the representatives cannot resolve the dispute within thirty (30) calendar days after the first negotiation meeting, the parties agree to refer the dispute to the Bexar County Dispute Resolution Center for mediation in accordance with the Center's mediation procedures. A mediator assigned by the Center will conduct the mediation. Each party participating in the mediation shall pay one-half the cost of the Center's mediation services. 8.4 Unless the dispute is for non-payment of funds due under the Agreement, the parties agree to continue performing their duties under the Agreement, which are unaffected by the dispute during the negotiation and mediation process. 8.5 All terms of this Agreement are to be construed in accordance with the laws of the State of Texas with venue lying exclusively in Bexar County. Page 3 of 5 Article 9. Notice to Parties 9.1 Notice to be effective under this Agreement must be in writing and received by the party against whom it is to operate. Notice is deemed received by a party as follows: (1) when delivered to the party personally; (2) on the date shown on the return receipt if mailed by registered or certified mail, return receipt requested, to the party's address specified in paragraph 8.2 and signed on behalf of the party; or (3) three business days after its deposit in the United States mail, with first-class postage affixed, addressed to the party's address specified in paragraph 9.2. 9.2 AACOG's address is 8700 Tesoro Drive, Suite 700, San Antonio, Texas 78217, Attention: Dean J. Danos, Executive Director. The City?s address is 1400 Schertz Parkway, Schertz, Texas 78154, Attention: John Kessel, City Manager. 9.3 A party may change its address or designated representative by providing notice of the change in accordance with paragraph 9.1. Article 10. Limitation of Liability 10.1 AACOG agrees to maintain all vehicle, liability, and workers compensation insurance as legally required by the Texas Department of Transportation. 10.2 Damages. In no event shall AACOG be liable to the City for any indirect, special, incidental, punitive, or consequential damages, including, but not limited to, loss of profits, loss of business, or other loss arising out of or resulting from this agreement even if AACOG has been advised of the possibility of such damages. Article 11. Miscellaneous 11.1 Each individual signing this Agreement on behalf of a party warrants that he or she is legally authorized to do so and that the party is legally authorized to perform the obligations undertaken. 11.2 This Agreement states the entire agreement of the parties, and an amendment to it is not effective unless in writing and signed by both parties. 11.3 This Agreement is binding on and inures to the benefit of the parties' successors in interest. 11.4 This Agreement is executed in duplicate originals. 11.5 The invalidity, illegality, or unenforceability of any provision of this Agreement shall not affect the validity, legality, or enforceability of any other provision of this Agreement. 11.6 Nothing in this Agreement shall be construed as a waiver either Party?s statutory or common law immunities. Page 4 of 5 PASSEDANDAPPROVEDAACOG_______________________ BY ON THE DAY OF 2013. IN DUPLICATE ORIGINALS ALAMOAREACOUNCIL OFGOVERNMENTS _____________________________ DJ.D EAN ANOS ED XECUTIVE IRECTOR PASSEDANDAPPROVEDCS_____ BY THE ITY OF CHERTZ ON THE DAY OF _____________2013. IN DUPLICATE ORIGINALS CITYOFSCHERTZ _____________________________ JK OHNESSEL CM ITYANAGER Page 5 of 5 Agenda No. 8 CITY COUNCIL MEMORANDUM City Council Meeting: September 24, 2013 Department: Investment Advisory Committee Subject: Resolution No.13-R-86 Revising the City of Schertz Investment Policy BACKGROUND The City of Schertz Investment Policy requires an annual review of the Investment Policy. On September 13, 2013, the Investment Advisory Committee met to review the policy. The Committee recommends adding a training component to the City of Schertz Investment Policy. The recommended change would read as follows: Investment Training City staff preparing or signing the investment report are required to receive 10 hours training pertaining to the Texas Public Funds Investment Act within the first 12 months after assuming duties and 10 hours every 2 years thereafter. Training for city council officials on the Investment Committee is recommended to provide education and knowledge pertaining to the Public Funds Investment Act but the training is not mandatory. GOAL: To complete annual review of the City of Schertz Investment Policy. COMMUNITY BENEFIT: The community benefits by knowing Investment Committee members are being trained and educated on a regular basis to ensure the city?s investments are being managed in a prudent and safe manner as outlined by the Texas Public Funds Investment Act. FISCAL IMPACT There will not be any fiscal impact. RECOMMENDATION Staff recommends approval of Resolution No.13-R-86 City Council Memorandum Page 2 ATTACHMENT Resolution No. 12-R-__75, with City of Schertz Investment Policy attached. RESOLUTION NO. 13-R-86 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING ADOPTION OF THE CITY OF SCHERTZ INVESTMENT POLICY. WHEREAS, the City of Schertz Investment Policy requires an annual review by the City Council (the ?City Council?) and after such review the City of Schertz (the ?City?) has determined that it is in the best interest of the City to adopt the City of Schertz Investment Policy, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: The City Council hereby adopts the City of Schertz Investment Policy and Section 1. is repealing any and all prior changes and amendments to Investment Policy attached as Exhibit A. The City of Schertz Investment Policy requires an annual review by the Section 2. City Council and after review the City Council recommends adding the following training component to the Investment Policy. Investment Training - City staff preparing or signing the investment report Section 3. are required to receive 10 hours training pertaining to the Texas Public Funds Investment Act within the first 12 months after assuming duties and 10 hours every 2 years thereafter. Training for City Council Officials on the Investment Committee is recommended to provide education and knowledge pertaining to the Public Funds Investment Act but the training is not mandatory. All resolutions, or parts thereof, which are in conflict or inconsistent with Section 4. any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. This Resolution shall be construed and enforced in accordance with the Section 5. laws of the State of Texas and the United States of America. If any provision of this Resolution or the application thereof to any person Section 6. or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. It is officially found, determined, and declared that the meeting at which Section 7. this Resolution is 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 Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. This Resolution shall be in force and effect from and after its final Section 8. passage, and it is so resolved. PASSED AND ADOPTED, this 24th day of September, 2013. CITY OF SCHERTZ, TEXAS Mayor, Michael R. Carpenter ATTEST: City Secretary, Brenda Dennis (CITY SEAL) EXHIBIT A CITY OF SCHERTZ, TEXAS INVESTMENT POLICY See attached A-1 CITY OF SCHERTZ, TEXAS INVESTMENT POLICY TABLE OF CONTENTS I. INVESTMENT SCOPE ...........................................................................................................1 General Statement ............................................................................................................1 Funds Included ..................................................................................................................1 Funds Excluded .................................................................................................................1 II. INVESTMENT OBJECTIVES .............................................................................................1 General Statement ............................................................................................................1 Safety ..................................................................................................................................2 Liquidity .............................................................................................................................2 Diversification ...................................................................................................................2 Yield ...................................................................................................................................2 Maturity .............................................................................................................................3 Quality And Capability of Investment Management ....................................................3 Public Trust .......................................................................................................................4 Portfolio Management ......................................................................................................4 Investment Strategy ..........................................................................................................4 III. INVESTMENT RESPONSIBILITY AND CONTROL ....................................................4 City's Investment Delegate ...............................................................................................4 Selecting And Processing Investments ............................................................................5 Documenting Investments And Providing Details .........................................................5 Developing Cash Flow Projections For All Portfolios ...................................................5 Determining Cash Available For Investment .................................................................5 Monitoring Investment Performance ..............................................................................5 Reconciling Investment Records And General Ledger .................................................6 Allocating Interest Revenue .............................................................................................6 Providing Revenue Estimates For All Portfolios ...........................................................6 Prudence ............................................................................................................................6 Business Relationships of City Manager (or his/her designee) .....................................6 Liability of City Manager (or his/her designee) .............................................................7 IV. INVESTMENT REPORTING .............................................................................................7 Quarterly Report ..............................................................................................................7 Investment Advisory Committee .....................................................................................8 Annual Review ..................................................................................................................8 Investment Training .........................................................................................................8 Notification of Investment Changes or Defaults ............................................................9 Compliance Audit .............................................................................................................9 V. INVESTMENT INSTRUMENTS .........................................................................................9 Authorized Investment Instruments ...............................................................................9 VI. INVESTMENT INSTITUTIONS .......................................................................................12 -i- Investment Institutions Defined .....................................................................................12 Selection of Bank And Securities Dealers .....................................................................13 VII. INVESTMENT COLLATERAL AND SAFEKEEPING ...............................................13 Collateral or Insurance For Deposits ............................................................................13 Safekeeping ......................................................................................................................14 Delivery vs. Payment ......................................................................................................14 -ii- I. INVESTMENT SCOPE General Statement This policy (this ?Policy?) serves to satisfy the statutory requirement of the Public Funds Investment Act, as amended, Texas Government Code Chapter 2256, as amended (the ?Act?), to define and adopt a formal written investment policy for the City of Schertz, Texas (the ?City?). The City shall be authorized to invest its funds pursuant to the provisions of the Act and this Policy or, upon obtaining the prior approval of the City Council of the City (the ?City Council?), any other applicable law. Funds Included This Policy applies to all City funds under the direct control of the City, at the present time any funds to be received in the future and any other funds held in custody by the City, unless expressly prohibited by law or unless it is in contravention of any depository contract between the City and any depository bank. The City funds that are entrusted to the City Council for investment pursuant to this Policy are divided into the following portfolios based on the source of funds: The operating account portfolio that consists of funds from the general fund and all other miscellaneous funds. The agency funds portfolio, which consists of all agency funds. Special Revenue, Special Assessment, and all other City funds. Funds Excluded This Policy shall not be applicable to any funds on deposit in any bond account, reserve account, or capital improvement construction account. The provisions of the ordinances authorizing the issuance of these debt obligations and the provisions of the Internal Revenue Code of 1986, as amended control the investment of funds on deposit in these accounts. II. INVESTMENT OBJECTIVES General Statement Funds of the City will be invested in accordance with the Act, this Policy, written investment strategy, and written administrative procedures to be developed by the City Manager (or his/her designee). The City's investment portfolio shall be managed in a manner to attain the maximum rate of return allowed through prudent and legal investing of City funds while preserving and protecting capital in the overall portfolio. 1 Safety The primary objective of the City for all portfolios and funds is to ensure the safety of the principal. All investment transactions shall first seek to avoid capital losses. Liquidity The City's investment portfolio must be structured in a manner that will provide the liquidity necessary to meet all operating requirements which might reasonably be anticipated, and to pay obligations as they become due. Diversification The policy of the City, except when investing with the City?s depository bank or in U.S. Treasury Bills, Bonds or Notes, will be to diversify its investment portfolio when investing in certificates of deposit of other banks and savings and loans domiciled in Texas, repurchase agreements, U.S. agencies securities, and other investment instruments provided for by law. The City's portfolio shall be diversified to eliminate the risk of loss resulting from over concentration of assets in a specific maturity, a specific issuer or a specific class of investments. Investments of the City shall always be selected to provide stability of income and reasonable liquidity. Liquidity is defined as the ability to sell an investment at reasonable cost under adverse market conditions. In establishing specific diversification strategies, the following general polices and constraints shall apply: (1) Portfolio maturities shall be staggered in a way that avoids undue concentration of assets in a specific maturity sector. Maturities shall be selected which provide for stability of income and reasonable liquidity. (2) Liquidity shall be maintained through practices that ensure that the next disbursement date and payroll date are covered through current revenues, maturing investments, or marketable securities. (3) Risks of market price volatility shall be controlled through maturity diversification. Yield It is the objective of the City to earn the maximum rate of return allowed on its investments within the constraints imposed by its safety and liquidity objectives, and the applicable law governing the investment of public funds. The City must invest its portfolios in eligible investments that yield the highest possible rate of return while providing the necessary protection of the principal. The City seeks to optimize return on investments in all portfolios. The average minimum rate of return for the 2 entire portfolio, excluding funds needed for current obligations, must be at least equal to a no default risk rate of return indicator, such as the return on the three-month Treasury bill. If funds are subject to yield restrictions due to federal arbitrage regulations, those funds are excluded from the yield calculation. The City may only invest in a particular eligible investment if its yields are equal to or greater than the bond equivalent yield on United States Treasury obligations of comparable maturity. The City Council may establish additional appropriate criteria for investment performance measures. Maturity Portfolio maturities will be staggered to achieve the highest return of interest but at the same time provide for the necessary liquidity to meet the City's cash needs. City funds shall be invested only in investments whose maturities do not exceed five years at the time of purchase, except, if permissible, funds accumulated for debt service payments, bond fund reserve accounts, and registry trust funds. In addition, the average maturity of the overall portfolio, excluding those investments held for future major capital expenditures and registry trust funds, shall not exceed 4.5 years. Quality and Capability of Investment Management It is the City's policy to provide for periodic training in investments as required by the Act for the City Manager through courses and seminars offered by professional organizations and associations in order to ensure the quality and capability of the City Manager (or his/her designee) in making investment decisions. The treasurer, the chief financial officer if the treasurer is not the chief financial officer, and the City Manager (or his/her designee) of the City shall: (1) attend at least one training session from an independent source approved by the City Council of the City or the Investment Advisory Committee advising the City Manager (or his/her designee) as provided for in the Policy of the City and containing at least 10 hours of instruction relating to the treasurer?s or officer?s responsibilities under this Policy within 12 months after taking office or assuming duties; and (2) attend an investment training session not less than once in a two-year period and receive not less than 10 hours of instruction relating to investment responsibilities under this Policy from an independent source approved by the City Council of the City or the Investment Advisory Committee advising the City Manager (or his/her designee) as provided for in the Policy of the City. Training under this Policy must include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio, and compliance with the Act. 3 Public Trust It will be the objective of the City to act responsibly as custodians of the public trust. Portfolio Management Under this Policy all investments will be made with the intent of pursuing, at the time of purchase, the best rate of return on securities held until maturity, and not with the intent of speculative trading. However, securities may be sold before maturity if market conditions present an opportunity for the City to benefit from this transaction. Investment Strategy As a part of its Policy, the City shall adopt a separate written investment strategy for each of the funds or groups of funds under its control. Each investment strategy must describe the investment objectives for the particular fund using the following priorities in order of importance: (1) Understanding of the suitability of the investment to the financial requirements of the City; (2) Preservation and safety of principal; (3) Liquidity; (4) Marketability of the investment if the need arises to liquidate the investment before maturity; (5) Diversification of the investment portfolio; and (6) Yield. III. INVESTMENT RESPONSIBILITY AND CONTROL City's Investment Delegate In accordance with Section 2256.005 of the Act, the City Manager (or his/her designee) is designated as the officer responsible for the investment of the City's funds. The City Manager (or his/her designee) is the primary manager of City investment portfolios, and shall develop and maintain written administrative procedures for the operation of the investment program, consistent with this Policy, including the following: (1) Summarizing the economic and market analysis; (2) Forecasting available cash for investments; 4 (3) Formulating strategies for asset mix, investment instruments, maturities, and target yields; (4) Monitoring performance against the current investment strategy and evaluating reasons for variances; (5) Reporting portfolios performance for the previous quarter to the City Council; and (6) Revising the investment strategy based on recommendations by the Investment Advisory Committee. Selecting and Processing Investments The City Manager (or his/her designee) reviews the composition of the current portfolio and determines whether the securities under consideration maintain the portfolio within the guidelines established by this Policy, subchapter A of the Act, and all federal, state, and local statutes, rules or regulations.The City Manager (or his/her designee) approves the wire transfer form authorizing the transfer of funds for a specific investment transaction. Documenting Investments and Providing Details The City Manager (or his/her designee) retains documentation of all investment transactions, including any bond swaps. The City Manager (or his/her designee) provides information and supporting documentation for all investment transactions for entry in the General Ledger. The City Manager (or his/her designee) will utilize information and back-up documentation on all investment transactions to ensure accurate calculation of cash position and accurate posting to appropriate accounts. Developing Cash Flow Projections for All Portfolios The City Manager (or his/her designee) analyzes prior period data and develops and amends cash flow projections of the City's cash requirements. The City Manager (or his/her designee) uses cash flow projections to match assets and liabilities in order to maximize the return on investments. Determining Cash Available for Investment The City Manager (or his/her designee) determines the amount of City funds available for investment each business day. All funds that can be legally invested and that are not required for that day's disbursements are considered funds available for investment. Monitoring Investment Performance The City Manager (or his/her designee) must routinely perform market and economic analysis to forecast probable market conditions for the investment period by assembling and 5 analyzing current and trend data to develop and plan investment strategy. This analysis uses information obtained from investment advisors, brokers, and investment industry publications. The City Manager (or his/her designee) monitors the current and expected yield curves for interest rate movements. When interest rates are expected to decline, maturity ranges are extended within portfolio and the constraints of this Policy. When interest rates are expected to increase, maturity ranges are shortened. The City Manager (or his/her designee) monitors yield spreads between various government agency issues and United States notes and bonds to determine the best value. The City Manager (or his/her designee) summarizes economic and market trend information and presents recommendations for investments strategy based on economic and market conditions to the City Council and the Investment Advisory Committee. Reconciling Investment Records and General Ledger The City Manager (or his/her designee) prepares a monthly report that includes information such as identifying investments at par value, identifying CUSIP number, disclosing the premium or discount, and the interest purchased for the City's investments. The report includes monthly and year-to-date interest accruals and amortization/accretion of premium/discount. This report should reconcile to the investment accounts in the General Ledger. Allocating Interest Revenue The City Manager (or his/her designee) allocates the interest revenue earned from investments proportionately to all accounts that participate in the investment function. Providing Revenue Estimates for All Portfolios The City Manager (or his/her designee) provides an estimate of the investment revenue for the annual budget by August 1 of each year. Prudence Investments of the City shall be made with judgment and the exercise of due care, under prevailing circumstances, that a person of prudence, discretion and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital, as well as the probable income to be derived for the City. Unless authorized by law, a person may not deposit, withdraw, transfer, or manage in any other manner the funds of the City. Business Relationships of City Manager (or his/her designee) The City Manager (or his/her designee) must file a statement with the City Council and the Texas Ethics Commission of any personal business relationship that the City Manager (or his/her designee) may have with a business organization as defined in the Act offering to engage 6 in an investment transaction with the City. A personal business relationship is defined by Section 2256.005 of the Act to exist if (1) The investment officer owns 10% or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization; (2) Funds received by the investment officer from the business organization exceed 10% of the investment officer's gross income for the previous year; or (3) The investment officer has acquired from the business organization during the previous year investments with a book value of $2,500 or more for the personal account of the investment officer. Liability of City Manager (or his/her designee) The City Manager (or his/her designee) is not responsible for any loss of the City funds through the failure or negligence of a depository bank or other financial or investment institution as described in Article VI of this Policy. IV. INVESTMENT REPORTING Quarterly Report The City Manager (or his/her designee) will continually monitor and evaluate the City's investments, and report quarterly to the City Council as provided in Section 2256.023 of the Act. The report must: (1) describe in detail the investment position of the City on the date of the report; (2) be prepared jointly by all investment officers of the City; (3) be signed by each investment officer of the City; (4) contain a summary statement, prepared in compliance with generally accepted accounting principles, of each pooled fund group that states the: (a) beginning market value for the reporting period; (b) additions and changes to the market value during the period; (c) ending market value for the period; and (d) fully accrued interest for the reporting period; 7 (5) state the book value and market value of each separately invested asset at the beginning and end of the reporting period by the type of asset and fund type invested; (6) state the maturity date of each separately invested asset that has a maturity date; (7) state the account or fund or pooled group fund in the City for which each individual investment was acquired; and (8) state the compliance of the investment portfolio of the City as it relates to: (a) the investment strategy expressed in the City's investment policy; and (b) relevant provisions of the Act. The report shall be presented not less than quarterly to the City Council and the City Manager of the City within a reasonable time after the end of the period. If the City invests in other than money market mutual funds, investment pools or accounts offered by its depository bank in the form of certificates of deposit, or money market accounts or similar accounts, the reports prepared by the investment officers under this section shall be formally reviewed at least annually by an independent auditor, and the result of the review shall be reported to the City Council by that auditor. Investment Advisory Committee An Investment Advisory Committee composed of the City Manager (as Chair), Executive Directors, the Mayor, Chief of Staff, Finance Director, Assistant Finance Director, Budget/Financial Analyst, and one member of the City Council will meet no less than once semiannually to review the last two quarterly reports prepared by the City Manager (or his/her designee) and review the Investment Objectives, Investment Responsibility and Control, and Investment Instruments as established by this Policy and the Act. Annual Review This Policy and investment strategy will be reviewed by City Council annually. The City Council shall adopt a written rule, order, ordinance, or resolution stating that it has reviewed the Policy and investment strategy and shall record in the order, ordinance or resolution any changes made to either the Policy or investment strategy. Investment Training City staff preparing or signing the investment report are required to receive 10 hours training pertaining to the Texas Public Funds Investment Act within the first 12 months after assuming duties and 10 hours every 2 years thereafter. Training for city council officials on the 8 Investment Committee is recommended to provide education and knowledge pertaining to the Public Funds Investment Act but the training is not mandatory. Notification of Investment Changes or Defaults It shall be the duty of the City Manager (or his/her designee) to notify the City Council of any significant changes in current investment methods and procedures prior to their implementation and to immediately notify the City Council in the event of a default or nonpayment of any investment acquired with City funds. In addition, the City Council in its annual review of the Policy shall adopt any order, ordinance, or resolution establishing its annual review and record any changes to the Policy or investment strategies. Compliance Audit The City, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the Policy. V. INVESTMENT INSTRUMENTS Authorized Investment Instruments The City Manager (or his/her designee) shall use any or all of the following authorized investment instruments consistent with governing law: (1) Obligations, including letters of credit, of the United States or its agencies and instrumentalities; (2) Direct obligations of the State of Texas or its agencies and instrumentalities; (3) Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency of instrumentality of the United States; (4) Other obligations, the principal of and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of the State of Texas or the United States or their respective agencies and instrumentalities; (5) Obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; 9 (6) Certificates of deposit issued by a state or national bank domiciled in this State, a savings bank domiciled in this State or a state or federal credit union domiciled in this State that are (A) Guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor; or (B) Secured by obligations that are described by subdivisions (1)-(6) of this subsection, including mortgage-backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates or in any other manner and amount provided by law for deposits of the City; or (C) Secured in any other manner and amount provided by law for deposits of the City; (7) Prime domestic bankers' acceptances if it (A) Has stated maturity of 270 days or fewer from the date of its issuance; (B) Will be, in accordance with its terms, liquidated in full at maturity; (C) Is eligible for collateral for borrowing from a Federal Reserve Bank; and (D) Is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less than A-1 or P-1 or an equivalent rating by at least one nationally recognized credit rating agency; (8) Commercial paper if it (A) Has a stated maturity of 270 days or less from the date of its issuance; and (B) Is rated not less than A-1, P-1, or the equivalent by at least (1) Two nationally recognized credit rating agencies; or (2) One nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank 10 organized and existing under the laws of the United States or any state thereof; (9) Fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by subdivision (1) of this subsection, pledged to the City, held in the City?s name, and deposited at the time the investment is made with a third party selected and approved by the City, and placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this State; (10) A guaranteed investment contract is an authorized investment for bond proceeds under the Act if the guaranteed investment contract (A) Has a defined termination date; (B) Is secured by obligations described by subdivision (1) in an amount at least equal to the amount of bond proceeds invested under the contract; and (C) Is pledged to the City and deposited with the City or with a third party selected and approved by the City; and (11) Bond proceeds, other than bond proceeds representing reserves and funds maintained for debt service purposes, may not be invested under the Act in a guaranteed investment contract with a term of longer than five years from date of issuance of the bonds; to be eligible as an authorized investment (A) The City Council must specifically authorize guaranteed investment contracts as an eligible investment in the ordinance or resolution authorizing the issuance of bonds; (B) The City must receive bids from at least three separate providers with no material financial interest in the bonds from which proceeds were received; (C) The City must purchase the highest yielding guaranteed investment contract for which a qualifying bid is received; (D) The price of the guaranteed investment contract must take into account the reasonably expected drawdown schedule for the bond proceeds to be invested; and 11 (E) The provider must certify the administrative costs reasonably expected to be paid to third parties in connection with the guaranteed investment contract. In addition to the investments described by items (1) - (11) above, the City may invest funds under its control in eligible public funds investment pools as permitted under the Act. A public funds investment pool must be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one nationally recognized rating service or no lower than investment grade by at least one nationally recognized rating service with a weighted average maturity no greater than 90 days. In addition to the investments described by items (1) - (11) above, the City may, in accordance with the Act, purchase, sell, and invest funds, after receiving a prospectus and other information required by the SEC, under its control in an SEC-regulated, no-load money market mutual fund with a dollar-weighted average stated maturity of 90 days or less and whose investment objectives include seeking to maintain a stable net asset value of $1 per share or a no- load mutual fund which is registered with the SEC, has an average weighted maturity of less than two years, is invested exclusively in obligations approved by the Act, is continuously rated as investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent and conforms to the requirements set forth in Sections 2256.016(b) and (c) of the Act relating to the eligibility of investment pools to receive and invest funds of the City. The City shall not (i) invest in the aggregate more than 15% of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service in mutual funds as described by the Act; (ii) invest any portion of bond proceeds, reserves and funds held for debt service, in mutual finds described by the Act; or (iii) invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service in any one mutual fund described by the Act in an amount that exceeds 10% of the total assets of the mutual fund. VI. INVESTMENT INSTITUTIONS Investment Institutions Defined The City Manager (or his/her designee) shall invest City funds with any or all of the following institutions or groups consistent with federal and state law and the current depository bank contract: (1) The City?s Depository bank; (2) Other state or national banks domiciled in Texas that are insured by FDIC; (3) Savings and loan associations domiciled in Texas that are insured by FDIC; (4) Public funds investment pool; or (5) Government securities brokers and dealers acceptable to the City. 12 Selection of Bank and Securities Dealers All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must be given a copy of the Policy and must supply the City Manager (or his/her designee) with the information specified below. First, a broker/dealer must submit audited financial statements for the financial institution or broker/dealer. Second, a broker/dealer must provide evidence of appropriate registration by the qualified representative of the business organization as such terms are defined in the Act. For bank dealers, this requires a statement from a senior bank official that the bank dealer is appropriately registered with its primary regulatory agency (the Office of the Comptroller of the Currency for National Banks) as a government securities dealer, municipal securities dealer, or both. For a securities firm, this requires a statement from a senior official that the firm is registered with the National Association of Securities Dealers. Third, a broker/dealer must provide a completed Broker/Dealer questionnaire furnished by the City Manager (or his/her designee). Finally, a broker/dealer must deliver a written statement, acceptable to the City, by the qualified representative, offering to engage in an investment transaction with the City, that they have received and thoroughly reviewed the Policy and acknowledged that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the City and the business organization that are not authorized by this Policy and other investment policies, except to the extent that this authorization is dependent on an analysis of the makeup of the City's entire portfolio or requires an interpretation of subjective investment standards. The City Manager (or his/her designee) will recommend both primary and secondary securities dealers to the City Council for final approval. The City Manager (or his/her designee) may not acquire or otherwise obtain any authorized investment described in this Policy from a person who has not delivered to the City the written statement required in this section. The City Council or the designated Investment Advisory Committee member shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. VII. INVESTMENT COLLATERAL AND SAFEKEEPING Collateral or Insurance for Deposits The City Manager (or his/her designee) shall ensure that all deposited and invested City funds are, to the extent required, fully collateralized or insured consistent with federal and state law and the current bank depository contract in one or more of the following manners: (1) FDIC insurance coverage; (2) Obligations of the United States or its agencies and instrumentalities; (3) Direct obligations of the State of Texas or its agencies; 13 (4) Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States or its agencies and instrumentalities; or (5) Any other manner allowed by law. Safekeeping All purchased securities shall be held in safekeeping by the City, or a City account in a third party financial institution, or with a Federal Reserve Bank. All certificates of deposit, insured by FDIC, purchased outside the depository bank shall be held in safekeeping by either the City or a City account in a third party financial institution. All pledged securities by the depository bank shall be held in safekeeping by the City, or a City account in a third party financial institution, or with a Federal Reserve Bank. All certificates of deposit, pledged by the depository bank shall be held in custody of a Federal Reserve Bank for safekeeping, be the subject of a valid pledge agreement designating the City as the beneficiary of the pledge agreement; be insured by the FDIC; be described in detail by a safekeeping receipt issued to the City by the Federal Reserve Bank having custody of the certificates; and be issued with the City as registered owner. Delivery vs. Payment It will be the policy of the City that all transactions, except investment pool funds and mutual funds, shall be purchased using the delivery vs. payment method through the Federal Reserve System. By so doing, City funds are not released until the City has received, through the Federal Reserve wire, the securities purchased. 14 Agenda No. 9 CITY COUNCIL MEMORANDUM City Council Meeting: September 24, 2013 Department: City Secretary Subject:Boards, Committees, and Commission appointments/reappointments and Resignations BACKGROUND The City has received a resignation from Mr. Chris Montgomery of the Board of Adjustments Board. FISCAL IMPACT None RECOMMENDATION Staff recommends Council ratify the resignation of Chris Montgomery from the Board of Adjustment. Attachments Mr. Chris Montgomery resignation Agenda No. 10 CITY COUNCIL MEMORANDUM City Council Meeting: September 24, 2013 Department: Finance Subject: Ordinance No.13-T-42 Fiscal Year 2013- 14 Library Board Budget ? First & Final BACKGROUND rd The Library Board was established by City Council on January 3, 1978 to provide citizen input to the City on Library policy and operation and to raise community awareness of the library and its services. Today the Board oversees various fund raising activities including the Read Before Bookstore, paper recycling, and book consignment sales with all proceeds dedicated to the benefit of the Library. th The Library Board voted and approved the Library Fund budget on September 9, 2013 at their regular board meeting. The Library Board is considered a component unit of the City and its revenues are restricted to be spent on the library only. As such, Council is not required to approve the Library Fund budget. However, in continuing with the City?s commitment to financial transparency the budget for the Library Fund is being brought before Council for their approval. In the future the Library Fund Budget will be included with the All Funds budget that is brought before Council in August. For those not familiar with the expense categories or how they might apply to the Library Fund, Supplies are for items like book carts, Clorox wipes, pens pencils, etc. for the library and bookstore City Support Services includes things like supplies and incentives for the summer and winter reading club City Assistance includes contributions that are made to the library to honor community members Operating Equipment is for things like new computers Capital Outlay are any items for the library that are considered capital FISCAL IMPACT Supplies$ 2,500 City Support Services $12,000 City Assistance $ 1,000 Operating Equipment $19,000 City Council Memorandum Page 2 Total$34,500 RECOMMENDATION Staff recommends that the City Council approve this budget on the first and final reading of Ordinance No. 13-T-42, adopting the budget for the fiscal year beginning October 1, 2013, and ending September 30, 2014. ATTACHMENT Ordinance No. 13-T-42 ORDINANCE NO. 13-T-42 AN ORDINANCE ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2013,AND ENDING SEPTEMBER 30, 2014, FOR THE SCHERTZ LIBRARY BOARD; PROVIDING THAT IT HAS BEEN APPROVED BY THE BOARD; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE; AND DECLARING AN EMERGENCY. WHEREAS, the City needs to Adopt a Budget for the Library Board; and WHEREAS, the City Council finds that all provisions pertaining to the adoption of a budget contained in the City Charter have been in all things complied with; and th WHEREAS, the Library Board adopted their budget of $34,500 on September 9, 2013; and WHEREAS, after a full and final consideration, the City Council is of the opinion that the budget should be approved and adopted; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, THAT: Section 1. The budget of the Expenditures of the City of Schertz Library Board for the ensuing Fiscal Year beginning October 1, 2013 and ending September 30, 2014, be, and the same is, in all things, adopted and approved as the said City of Schertz Library Board budget for the Fiscal Year beginning the first day of October, 2013 and ending the thirtieth day of September, 2014. Section 2. The sums below are hereby appropriated from the respective categories for the payment of expenditures on behalf of the City government as established in the approved budget document: 2013-2014 Budget Supplies$ 2,500 City Support Services $12,000 City Assistance $ 1,000 Operating Equipment $19,000 Total$34,500 Section 3. 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 Council. Section 4. All ordinances and codes, 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 resolved herein. Section 5. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 6. 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 City hereby declares that this Ordinance would have been enacted without such invalid provision. Section 7. It is officially found, determined, and declared that the meeting at which this Ordinance is 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. Section 8. Pursuant to Section 4.09(e) of the City Charter, by vote of not less than two-thirds of the members of the City Council present at the meeting at which this Ordinance was first considered, the City Council has determined that an emergency exists which requires immediate action, and this Ordinance is hereby adopted on a single reading, and this Ordinance shall be effective upon the date hereof and any publication required by law. PASSED, APPROVED AND ADOPTED ON FIRST AND FINAL READING THIS 24th DAY OF SEPETMBER 2013. ___________________________ Mayor, Michael R. Carpenter ATTEST: _____________________________ City Secretary, Brenda Dennis APPROVED AS TO FORM AND LEGALITY: ___________________________________ City Attorney FUND: 609 LIBRARY FUND DESCRIPTION The purpose of the Library Advisory Board is to provide citizen input to the City of Schertz on Library policy and operation and to raise community awareness of the library and its services. The Library Advisory Board oversees various fund- raising activities including the operation of the Read Before Bookstore, paper recycling and book consignment sales with all proceeds providing supplementary funding for library materials, programs, projects and building enhancements. 2011-12 2012-13 2013-14 Budget Actual Estimate Budget Revenue Fees $21,515 $21,400 $21,200 Fund Transfers 0 0 10,000 Miscellaneous 1,134 1,960 4,060 Total $22,649 $23,360 $35,260 Expenses Supplies $3,526 $1,500 $2,500 City Support Services 6,895 7,800 12,000 City Assistance 0 0 1,000 Operating Equipment 1,310 7,200 19,000 Capital Outlay 5,750 0 0 Total $17,480 $16,500 $34,500 PROGRAM JUSTIFICATION AND ANALYSIS Revenues Revenues will increase with the use of reserves to fund one time projects in FY 2013-14. Expenses The increase in budgeted expenditures in FY 2013-14 is to fund a Hal Baldwin Memorial sculpture and additional computer replacements for the Library. Agenda No. 11 CITY COUNCIL MEMORANDUM City Council Meeting: September 24, 2013 Department: Development Services Subject: Resolution No.13-R-87 BACKGROUND Information will be provided to Council on Monday, September 23, 2013. FISCAL IMPACT RECOMMENDATION ATTACHMENT