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09-16-2014 Agenda with backupREGULAR SESSION CITY COUNCIL September 16, 2014, 6:00 P.M. HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 City of Schertz Core Values Do the right thing Do the best you can Treat others the way you would want to be treated Work together cooperatively as a tea Call to Order — City Council Regular Session Invocation and Pledges of Aliedance to the Flaas of the United States and State of Texas. (Associate Pastor Carnell Durant, Everyday Christian Church) City Events and Announcements • Announcements of upcoming City Events (J. BierschwaleB. James) • Announcements and recognitions by Deputy City Manager (J. Bierschwale) Hearing of Residents This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker's register prior to the meeting. Presentations should be limited to no more than 3 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. Consent Agenda Items The Consent Agenda is considered 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 of the Mayor or a Councilmember. 09 -16 -2014 Council Agenda 1. Minutes — Approve the minutes of the regular meeting of September 2, 2014. (J. Bierschwale /B. Dennis) 2. Appointment Boards, Commission Committees — Consideration and /or action appointing Mrs. Lynn Foehrkolb as a regular member to the Historical Preservation Committee, and consideration and /or action moving Mrs. Janice Manzo from Alternate #2 of the Library Board to Alternate #1 and appointing Ms. Patti Paulson as Alternate #2 to the Library Board. (B. Dennis /Mayor /Council) 3. Resolution No. 1.4 -R -74 — Consideration and/or action approving an agreement with Randolph Air Force Base relating to stray animal control. (J. Bierschwale /M. Harris /S. Roman) Discussion and Action Items 4. Resolution No. 14 -R -78 — Consideration and approval of a Resolution by the Schertz City Council approving a Bond Resolution previously adopted by the Board of Directors of the Schertz /Seguin Local Government Corporation authorizing the issuance of Bonds designated as "Schertz /Seguin Local Government Corporation Contract Revenue Refunding Bonds, New Series 201.4 ", acknowledging that these obligations will be sold to Raymond James & Associates, Inc., as the Authorized Representative of a Group of Underwriters Pursuant to the provisions of a Purchase Contract; Ratifying, Reconfirming, and Readopting the Provisions of a Regional Water Supply Contract Executed between the City of Schertz, Texas, The City of Seguin, Texas, and the Schertz /Seguin Local Government Corporation; authorizing the Mayor, the City Manager, and the City Secretary of the City of Schertz, Texas to execute on behalf of the City of Schertz, Texas all documents in connection with this transaction; and other matters in connection therewith. (J. Bierschwale /M. McLiney /A. Friedman) 5. Resolution No. 14 -R -80 — Consideration and/or action approving a .Resolution authorizing an agreement with Propertyroom.com. (J. Bierschwale /C. Raleigh/J. Harshman) 6. Resolution No. 14 -R -81 — Consideration and/or action approving a Resolution appointing Ken Greenwald to the Board of Directors Place D3 of the Schertz Seguin Local Government Corporation and appointing Steve White to the :Board of Directors Place D1 of the Schertz Seguin Local Government Corporation. (J. Bierschwale /J. Bierschwale) Roll Call Vote Confirmation Requests and Announcements 7. Announcements by Deputy City Manager • Citizen Kudos • Recognition of City employee actions • New Departmental initiatives 09 -16 -2014 City Council Agenda Page - 2 - 8. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. 9. 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 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 12th DAY OF SEPTEMBER 2014 AT 11:30 A.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. grevuLo 2 T�)eww'bs Brenda Dennis CPM, TRMC, MMC, City Secreta 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 2014. 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. The City Council for the City of Schertz reserves the right to adjourn into executive session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act. Executive Sessions Authorized: This agenda has been reviewed and approved by the City's legal counsel and the presence of any subject in any Executive Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion. 09 -16 -2014 City Council Agenda Page - 3 - COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS Mayor Carpenter Mayor Pro -Tem John — Place 3 Audit Committee Lone Star Rail District Hal Baldwin Scholarship Committee Interview Committee for Boards and Commissions Investment Advisory Committee TIRZ II Board Councilmember Fowler — Place 1 Councilmember Sca2liola — Place 2 Interview Committee for Boards and Commissions Animal Control Advisory Committee Schertz Housing Board Liaison Cibolo Valley Local Government Corporation Randolph Joint Land Use Study (JLUS) Executive Schertz Seguin Local Government Corporation Committee Interview Committee for Boards and Commissions Sweetheart Advisory Committee Councilmember Edwards — Place 4 Councilmember Duke — Place 5 Audit Committee Audit Committee Hal Baldwin Scholarship Committee Investment Advisory Committee 09 -16 -2014 City Council Agenda Page - 4 - Agenda No. 1 CITY COUNCIL MEMORANDUM City Council Meeting: September 16, 2014 . Department: Subject: City Secretary Minutes The City Council held a regular meeting on September 2, 2014. WLTG • �On None RECOMMENDATION Staff recommends Council approve the minutes of the regular meeting on September 2, 2014. Minutes — regular meeting September 2, 2014 MINUTES REGULAR MEETING September 2, 2014 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on September 2, 2014, 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 Carpenter Councilmember Jim Fowler Councilmember Cedric Edwards Staff Present: Deputy City Manager John Bierschwale Chief of Staff Bob Cantu City Secretary Brenda Dennis Call to Order Mayor Carpenter called the Regular Invocation and P1edtes of Allegiance to Texas (Councilmember Cedric Edwards) Councilmember Edwardsprtiled the invc Flags of the United States and the State of T PrvcPntntiane Jones to accept) to order at 6: of the United °States and the State of the Pledges of Allegiance to the Week (Mayor Carpenter) (Andrea Spanley/ Ma r Carpenter introduced Speaker Coordinator of the Alamo Chapter of the American Payroll .Association l?I Andrea Spanley and Web Master of the Alamo Chapter of the American Payroll Association Ms. Sandra Jones. Mayor Carpenter read and presented the proclamation. Ms. Spanley thanked Mayor and Council. Councilmember Edwards left the meeting at 6: 07 p.m. City Events and Announcements • Announcements of upcoming City Events Q. Bierschwale /B. James) Mayor Carpenter recognized Executive Director of Development Brian James who provided the following announcements: 09 -2 -201.4 Minutes Page -1- • Saturday, September 6, National POW /MIA Recognition Day Ceremony, 1000 FM 78, VFW Post 8315, 11:00 a.m. • Monday, September 8, 2014, Ribbon Cutting for Mattenga's Pizzeria, 6044 FM 3009, Suite 290, 11:00 a.m. • Thursday, September 11, 2014, North East Partnership Meeting, Olympia Hills Golf & Conference Center, Universal City, 11:30 a.m. RSVP to Donna or Brenda by Monday, September 8 if you will be attending. • Tuesday, September 1.6, 2014, Chamber Luncheon, Schertz Civic Center, Building #5, Guest Speaker, Michael Brough — Topic: "Translating Your Vision into Words, 11:30 a.m. SAVE THE DATE: • Monday, October 20, Wendy Swan Manorial Park Dedication, Northcliffe Subdivision, 6:00 p.m. • Announcements and recognitions by City'lager (!,,Kessel) Mayor Carpenter recognized City Manager John Kessel who stated he wanted to cover one big topic and highlight two different groups of individuals. Mr. Kessel stated that it is hard working City Employees, and provided the following examples: (1) Tonight you will have a presentation by Mr. Walters who has been running the City budget presentations for two (2) years now, and you are going to see one (1) particular slide that addresses a concern of a citizen, Mr. Brockman, who brought it up last week. Mr. Kessel stated that Mr. Walters does this remarkably well throughout the entire process, which starts in the spring. Mr. Kessel stated that all the comments we say; the comments from citizens, comments from Council and comments from staff, Mr. James captures and tries to address almost seamlessly so that you do not notice that it has happened. Mr. Kessel stated that Mr. Walters has done a tremendous job, and when you see that particular slide of information, no one had to ask him to add it, he did it on his own. Mr. Kessel stated the other thing is a hidden group of individuals. Although they should not be hidden, this is about our Public Works staff. Mr. Kessel stated that it has been in the upper 90's, and 100 degrees for the last several weeks, and our Public Works staff are out in the field, not in air conditioning, working on streets and water and sewer lines. He stated it is really warm outside and our Public Works staff is trying to stay hydrated. Mr. Kessel asked that when you see these individuals and the crews, realize they are working day in and day out getting the job done just the same as if the weather was nice. It takes a toll on them and by Friday it is tough for them to work in those conditions and we just wanted everyone to know how much it is appreciated. Mayor Carpenter recognized Boy Scout Ben Reeder with Troop 343 who was in the audience this evening. Mayor Carpenter came down from the dais and asked Ben to join him at the podium and explain why he was here. Ben stated that he was here this evening to observe a 09 -2 -2014 Minutes page - 2 - Council meeting as it was a requirement on achieving his Citizenship in the Community Merit badge. Mayor and Council welcomed Ben. Workshop • Discussion and update regarding Main Street related projects — Historic grant program, proposed zoning district, and Main Street bond project. (B. James /K. Woodlee /M. Sanchez) Mayor Carpenter recognized Director of Development ,Services Brian James who provided a PowerPoint presentation regarding Main Street Focus with the following highlights and answering questions from Council: Projects - Thoroughfare Plan update - Main Street Bond Projects - Parking Lot improvement - Historic Preservation Incentive Program - Main Street Mixed Use Zoning District the turning movements at FM 1518, First a pedestrian friendly environment. s - clenated as a truck route which also plan update is to address connectivity issues Parking Lot Iniprovement - The City controls the small vacant tract of land at the eastern corner of Main. Street and First Street. - Staff has developed a design for the parking lot that provides for 15 spaces, additional landscaping and screening. - The lot can also be used during various Schertz festivals and events for exhibits, grandstand seating, food vendors, etc. 09 -2 -201.4 Minutes Page - 3 - Historic Preservation Incentive Program - The program is intended to protect and preserve the City's historic resources and strengthen the economy by promoting the Main Street area to tourists and residents. - Eligibility — must be at least 50 years old, within the area and all taxes and fees must be current. - Matching grant program of up to $20,000 with proposed work approved in advance by the Schertz Historical Preservation Committee. - Funding to come from the Hotel Occupancy Tax of up to $40,000 per year. Main Street Mixed Use Zoning District Per the Gateway Plan, new zoning regulations should b, put Evaluate non - conforming standards and amend thm setbacks, lot size, lot coverage, etc. Evaluate use standards. Revise off - street parking standards to fit the context and Provides for reduced parking requirements. Includes single family dwellings and commercial Neighborhood Services) Has less stringent setback and lot size requirements. Mr. James addressed Hearing of Residents: Mayor Carpenter recogniz w came forward providing information -tuber 8, '2014 ;Ribbon Cutting and Grand Opening for Mattenga's FM 3009, Suite 29q, I 1:00 a.m. -tuber 16" 2014, Chamber Luncheon, Schertz Civic Center, Building iker, Michael Brough — Topic: "Translating Your Vision into Words ", )e having their Membership 101 Class. terrber 18, 2014, After -Hours Mixer, 5:30 to 7:00 p.m. hosted by IH 35 North in Schertz. Mrs. Titteringtdn also stated that they are still accepting their Leadership Core applications, deadline is October 31, 2014, and you do not have to be a Chamber member to apply, go to Schertzchamber.org. She stated the class is half full and she is excited that Amazon will be leading a half morning class in industry and Caterpillar will be taking the second half. Mrs. Titterington also thanked Councilmember Scagliola and Fowler for attending the Grand Opening and Ribbon cutting ceremony at Suzie's Thrift and Gifts and thanked Mayor Carpenter, Councilmembers Scagliola and Fowler who came out last Friday to the Senior Center for the check presentation by the HyPer Group. 09 -2 -201.4 Minutes Page - 4 - Finally, Mrs. Titterington stated that there will be 6 prints, 5 with a signature from Tim Duncan, at the September 16th Schertz Chamber Luncheon. The Schertz Chamber will begin the silent auction for these prints at the luncheon and will end the auction with the other items October 3rd at the Caterpillar Golf Classic. Fifty percent of the proceeds from the October 3rd Golf Classic will be donated to the Clemens and Steele High. School students which includes the sale of these auction items. • Mr. Robert Brockman, 1001 Elbel Road, who came forward stating that as the public watch dog for the City one of his duties is to check the pedestrian crossing signals before school starts. He stated that the crossing signal at Schertz Parkway, and Woodland Oaks failed his test. He contacted 311- Customer Service, who,, placed a work order to the Public Works Department advising them of the problem. As it turned out, a switch had gone out and they would have to order it. Mr. Brockman stated that it has been over ten (10) days ago and inquired as to when the signal uvonld be fixed. Mayor Carpenter stated that they would get with Public Works to .find out the status and: get back to Mr. Brockman on the progress. • Mr. Stephen Jameson, 673 Cotton Patch, who came' forward stating that he has a situation with the parking of his company vehicle. He stated that according to the Ordinance anything over a 1 ton vehicle is ,not allowed to be parked on the City streets. He was requesting information why an F55:ihat is less than 6000 pounds and does not require a DOT sticker cannot be parked on this street. He inquired as :'to where he could obtain a permit to park his company vehicle on the street as" his driveway is to short. He indicated that he has been parking his vehicle in an area that is unsafe. Mayor Carpenter directed Mr. Jameson to meet with',City Marshal Michael Harris to obtain the information he was seeking. Mayor Carpenter from the consent. 0 Fowler who requested that items 2 & 3 be removed of the regular meeting of August 26, 2014. (J. Kessel /B. Resolution, No. 14 =R -77 — Consideration and /or action approving a Resolution authorizing a Management Services Agreement with Schertz Seguin Local Government Corporation (SLGC). (J. Bierschwale /S. Willoughby /A. Cockerell) The following was read into record: RESOLUTION NO. 14 -R -77 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 09 -2 -201.4 Minutes Page - 5 - GOVERNMENT CORPORATION WITH SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Councilmember Scagliola who moved, seconded by Councilmember Duke to approve the consent agenda items 1 and 4. The vote was unanimous with Mayor Pro -Tem John, Councilmembers Fowler, Scagliola, and Duke voting yes and no one voting no. Councilmember Edwards was absent. Motion Carried. Discussion and Action Items 2. Resolution No. 1.4 -R -75 - Schertz Seguin Local Fiscal Year 2014 -15 Annual Budget SSLGC Rt - Consideration and/or action approving the Corporation (SSLGC) FY 2014 -15 Budget. (1: Biei The following was read into record: ON NO. 1.4- en Corporation (SSLGC) # SSLGC #SSLGC R -14 -08 Seguin Local Government S. Willou2hWA. Cockerell) A RESOLUTION BY THE CITY ,COUNCIL OF TIE CITY OF SCHERTZ, TEXAS APPROVING THE S HERT /SEGUIN LOCAL GOVERNMENT CORPORATION FISCAL YEAR 2014 15 ,ANNUAL BUDGET, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpentrrecognized Mr. Alan Cockerell who stated it is actually a $2.7 million dollar project. 'He stated that it is in their Capital Improvements Plan that they have and that every five (5) years this is updated. Mr. Cockerell stated they knew this activity needed to be done but it was a matter of finding a source of revenue to complete this task. He stated that one thing that has happened for the next fiscal year with the onset of the SAWS project is selling them access to water and then also treating and transporting their water. They will have increased revenues, and with the increased revenues the SSLGC Board decided that it would be an appropriate source to fund this project. Mr. Cockerell stated that what they have had in the past, as you can see by the large percentage increase in capital projects, is in the past they have had modest capital projects (i.e., bought a 09 -2 -2014 Minutes Page - 6 - vehicle or two), and last year they did computer upgrades, so this large percentage increase is surprising but because of the increased revenues they are able to fund the majority of this project with cash on hand from their revenues next year. They felt it appropriate to do this in the budget. Councilmember Fowler stated that as he understands it and looks at the percent changes in the different fund accounts, overall percent changes, taking out item 2, is running at a 50 percent increase in budget. He understands with revenue coming in the impact upon the citizens is only about a 2 percent increase in their water rates. Mr. Cockerell stated that the Corporations water rates are remaining the same. Mr., Cockerell provided information that was provided by their rate consultant showing that the rates are 1.55 and forecast them to be constant for the next four (4) year, . Mr,, Cockerell stated that they will revisit this every year and look at the numbers but right now, their forecast shows that their rates are going to be level for the next four (4), years, Councilmember Fowler stated that it looks like they, covered and that was the important thing eves though tb the impact to the citizens for the next four and five ye Mr. Cockerell concurred that this is their projection.; He have with SAWS is very beneficial to the Corporatit n revenues, their costs are going up,ru not at the same gives us some additional revenue to do some things lik e this next year and not have to go out and borrow the moni Mayor Carpenter reeOgi the 2% that the City has old lines in Aviation H( of work to be continued out and issue more b6u side that it will be have the ey are seeing a lot of increases; ars is not going to be changing. stated that the contract that they in providing some additional ate ,as their revenues are so that the Cathotic Protection project Deputy City Manager John Bierschwale who stated that on ased that is for our line maintenance repair; we have a lot of Parkland Heights and also Northcliff where we have a lot 2% is covering this cost so that we do not have to go back r. ier,,schwale stated that we are talking two different items. Seguin' is' stable and they are projecting from the Schertz )Ie for another four years. Councilmember Fowler stated, that this information answered his questions and he doesn't believe it is necessary for him to ask any more questions on Item 3. No further questions from Council: Mayor Careter,' ' recognized Councilmember Fowler who moved, seconded by Councilmembeir',,Scagliola to approve Item 2, Resolution No. 14 -R -75. The vote was unanimous with Mayor Pro -Tem John, Councilmembers Fowler, Scagliola, and Duke voting yes and no one voting no. Councilmember Edwards was absent. Motion Carried. 3. Resolution No. 14 -R -76 - Schertz Seguin Local Government Corporation (SSLGC) Fiscal Year 2014 -15 Water Rates SSLGC Resolution # SSLGC #SSLGC R -14 -09 - Consideration and /or action approving the Schertz Seguin Local Government 09 -2 -201.4 Minutes Page - 7 - Corporation (SSLGQ FY 2014-15 Water rates. (J. Bierschwale/S. Willoughby/A. Cockerell) The following was read into record: RESOLUTION NO. 14-R-76 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING THE SCHERTZ/SEGUIN LOCAL GOVERNMENT CORPORATION FISCAL YEAR 2014-15 WATER ,,:`RATES, AND OTHER MATTERS IN CONNECTION THEREWITH Council had no discussion on this item as Mayor Carpenter recognized Councilmember Foi Councilmember Scagliola to approve Item 3, Resoll unanimous with Mayor Pro-Tem John,,,Cb ncilmem voting yes and no one voting no. Councilmemb Carried. 5. Ordinance No. 14-T-42 - City of action approving an Ordinance on Kessel/J. Walters) The following F.11►we7 19 11 11M.1101 VIDING 1INANCE A record: INANCE FY 2014-15 )sed FY 201 14-T-42 )roVided on item 2. - Consideration and/or Iget. Final Reading (J. Mayor Carpenter recognized Senior Budget/Finance Analyst James Walters who provided a PowerPoint presentation on the FY2014-15 budget with a few reflected changes from last, week. The changes are: 1) the City is planning to hold the upcoming Charter election in November of 2015, and 2) the funding for the election will be in the FY 2015-16 Budget and will be removed from the current proposed budget. Mayor Carpenter added that since the Charter requires us to seat a Charter Review Commission for 180 days, even if we seated the commission within the next 30 days that 180 days would push us out past the time when we have to call for the election. This would not be enough time for the public to review it properly and would be a disservice to them. It makes more sense to not be in a rush to try and meet state law and simply have the election in November. 09-2-2014 Minutes Page - 8 - 0 Mr. Walters showed a new slide of the local property tax rates of our neighboring cities as had been requested by resident Robert Brockman at last week's council meeting. Schertz is in the middle (0.4974) of its benchmark cities (population of about 50,000) of New Braunfels and San Marcos. Schertz is lower than New Braunfels, Live Oak, Seguin, San Marcos, San Antonio and Converse. Selma, Garden Ridge, and Cibolo are all below this mark. Most of the cities either went with the effective rate or stayed flat. The one exception was Live Oak who went up with their rate due to a bond issue. Mr. Walters continued with his presentation answering questions from Council. Mayor Carpenter recognized Councilmember Scagliola who stated this budget is balanced using the current rate and staff did an exceptional fob on it. However it is not conservatie based on his definition. He does not disagree with the expenditures listed but believes the budget is founded on overly pessimistic assumtions. He thinks the assumptions ignore the efficiencies of our ,staff and the potential "of our economic development strategy and the opportunity to eturn some of those benefits to the residents in lower taxes. He thinks we could reduce the 1x rate below it and still come up with an exceptionally balanced budget. Mayor carpenter recognized Councilmember Fowler, who said he disagreed with Councilmember Scagliola; he believes-,in making a mid ourse correction when you can make very small changes and not wait until a big change is:needed and you may not be able to pull off a realignment. At this time,,tte would rather we be more conservative now than wait four or five years later when we wishe,e had done otherwise. Mayor Carpenter recognized Councilmember Fowler who moved, seconded by Councilmember Duke to approve Ordinano No. 14 -T -42 final reading. The vote was 3 -1 with Mayor Proem Jahn- Councilmebers Fowler and Duke voting yes and Councilmember Carried. Councilmember Edwards was absent. The followina,.was read into record: ORDINANCE NO. 14 -T -43 AN ORDINANCE APPROVING THE APPRAISAL ROLL; SETTING THE TAX RATE; LEVYING AND ASSESSING GENERAL AND SPECIAL AD VALOREM TAXES FOR THE USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT OF THE CITY OF SCHERTZ, TEXAS; APPORTIONING THE LEVIES FOR SPECIFIC PURPOSES; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. 09 -2 -201.4 Minutes Page - 9 - Mayor Carpenter stated he was going to hold off on Item 6 for a minute while he went back to read the caption on Item 5. Mayor Carpenter proceeded to read the caption for Item 5 and then he returned to Item 6. Mayor Carpenter recognized Senior Budget /Finance Analyst James Walters who presented a PowerPoint slide of the Target Tax Rates Target Tax Rate Tax Current Recommended Alternative Rate Maximum Mayor Carpenter recognized Councilor community and we need to meet the ne'N quality of life ten years from now that we change. The Recommended Rate is the w� Duke Who stated this is a booming coming up, to ensure we have the same ,day. If we don't stay up to it, things can to ensure we can be consistent. Councilmember 'Fowler stated, suppose in a few years we have another major rainstorm or tornado and it. goes through our maintenance shop or equipment. He prefers to be conservative knowing the ' type of weather we have can change everything; he is comfortable with stav%ti with 6Ur ,OA974 rate. Mayor Carpenter Mated we Darned something when we lowered the tax rate by three cents ,some eight years ago,: There i , danger in being too aggressive with either a reduction or an increase in taxation. After that three cent reduction, a recession followed it and we had to draw, down on our reserves to maintain our status. We also had to raise the tax rate to address that. We are in a growth position now and will continue for a while. We have to manage th4t We have deliberately gone after driving our economic engine and have had some success;" He suggests if we are talking about a quarter cent reduction or increase, if we stay within that realm, we are doing our job as a council. The impact to each family will be small. Being that we just had a strong year he would advocate that we go with the alternative rate of 0.4949, or like Mr. Fowler suggested a 0.4962. He stated when we are in a strong year position, we should evaluate whether it makes sense to make that quarter cent reduction. He stated when we are in a lean year, work to hold the tax rate, and in a difficult or down year look at a quarter cent increase. We can manage those positions. He thinks this has been a strong year and we can afford to go with a small reduction in the tax rate. 09 -2 -201.4 Minutes Page - 10 - Mayor Carpenter recognized Councilmember Scagliola who moved that property taxes be increased by the adoption of a tax rate of 0.4949, which is effectively a 1.9% increase in the tax rate, seconded by Councilmember Fowler. The vote was 2 -2 with Mayor Pro - Tem John, and Councilmember Scagliola voting yes and Councilmembers Fowler and Duke voting no. Mayor Carpenter voted in the af'f'irmative and broke the tie vote, resulting in a final vote of 3 -2. Councilmember Edwards was absent. Motion Carried. 7. Cancellation of September 9, 2014 City Council Meeting — Consideration and /or action cancelling the September 9, 2014 City Council meeting, due to lack of agenda items. (J. Bierschwale /Council) Councilmember Edwards returned to the meeting at 7.15 p.m. The' mayor read Section 9.14, to the council: "To Take Action or reconsider an Action; 1!Iain Motions. These main motions state proposed policy or action on a substantive issue being considered by ':the Council. As such, the motion can be an initial call to take particular action; to reconsider action taken; or to rescind a prior decision. Although lowest in precedence among all motions, main motions are clearly the most important: through their content, the business decisions of the Council are determined. A main motion can be made only when, a prior main motion has been disposed of. It cannot interrupt a speaker; a second is required; it is debatable and amendable; and an affirmative vote of three (3) Councilmembers is required unless a greater vote is prescribed by the Charter or State law. Mayor Carpenter recognized Councilmember Duke who stated the reason for the fact that we believe we shouldn't be talking about $68,000 is, we have a lot going on in Schertz and the budget is not fat by any means; to ask the staff to go back and cut $68,000 is not appropriate. It's a blip one way or the other for the families here. Looking at the five (5) year forecast, it looks like we are just getting back to even on that reserve fund. The budget is a responsible one and we shouldn't go back and ask staff to cut more programs 09 -2 -201.4 Minutes Page - 11 - r and we shouldn't just rely on that big win to come in the future. That's why I asked now that the full Council is present to go back and reconsider Item 6. Mayor Carpenter recognized Councilmember Scagliola who asked Mr. Walters at what rate was the anticipated increase for health insurance set at in this proposed budget? The answer was 8 %. The actual increase turned out to be 0 %. So that is 8% right there, which according to calculations turns out to be $1.40,000, which was overestimated for this year's budget. All he is asking for is $68,000. That's all he had to say. Mayor Carpenter recognized Councilmember Duke who On the capital improvements that we need to make for t those expenditures? Mr. Walters said, no, we had alread improvements. So we are pushing a lot of those thing living with. So there is a lot of the 8% that is gone, here staff has done to balance all the variables out there. The3 Now what we have gotten down to is we hve approv afterward approved a tax rate that does not fund that bud Mayor Carpenter reminded everyone that the motif we are going to reconsider the item (Item 6); if we process again and have lots of time to talk about the asked Mr Walters this question: ie Civic Center, are we making all t I planned over $100,000 of capital aside 0 make the budget we are and it exemplifies all the work the put together a balanced budget. a budget and then irr This is irresbonsible. ntly before us is whether or not to do so we will start the debate ORDINANCE NO. 14 -T -43 AN ORDINANCE APPROVING THE APPRAISAL ROLL; SETTING THE TAX RATE; LEVYING AND ASSESSING GENERAL AND SPECIAL AD VALOREM TAXES FOR THE USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT OF THE CITY OF SCHERTZ, TEXAS; APPORTIONING THE LEVIES FOR SPECIFIC PURPOSES; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Mayor Carpenter recognized Councilmember Fowler who stated he agrees with Councilmember Duke, but what he remembers from what we said a few weeks ago, if we went with the 0.4949 tax rate we would not be able to hire an employee because of the lack of money there. He made an offer a few weeks ago because he was not comfortable going that low but was willing to go to a 0.4962, which indicates we would lose about $30,000. 09 -2 -201.4 Minutes Page -12 - His position is to go with this 0.4962 tax rate and we could still hire the employee and then just find the rest of the money elsewhere. Mayor Carpenter recognized Councilmember Edwards who asked City Manager John Kessel if since he came on board as City Manager, hasn't he said that there are no sacred cows; we need to trim where we need to trim and be more efficient. Is this not a model of efficiency we are continuously looking for? Mr. Kessel replied yes and we will continue to look regardless of other items that will be approved; the staff has clear direction that our goal is not to spend above the approved budget item but try and get the job done and meet the goal for that amount or less if possible. Councilmember Edwards said so we have department heads who we have told to manage their budgets and now we don't have faith in funding that particular budget. This makes no, sense and is irresponsible. To Councilmember Fowlers point, 0.4962, he could live with that tax rate. As elected officials, we are supposed to set the vision; we have a city manage , said this is what our forecast is. We have residents and our future at stake. He thinks it is irresponsible to pass the budget and then come back and lowilr the tax rate. Mayor Carpenter summarized by saying what wd, bav -before us is we are taking another vote on the original motion of setting the tax rate at ,'0. 949. That motion remains before us and we can debate this as long as we want and then take ,a vote on it again. Then when that action is completed, if there is another motion to consider a different tax rate we will consider that separately. Mayor Carpenter recognized , Coui cilmember Duke who wanted to clarify that he feels Councilmember Scagli la is being consistent. His comment of the irresponsibleness earlier this evening was addressed only at the action of voting for a budget that was approved and then turning around and approving a tax rate that doesn't fund that budget. Mr. Scagliola qated the process is fundamentally broken and it happens every year. By first approving ' Jhc budget you have essentially established that it is mandatory that you establish the ta rate. The process should be reversed. There is flexibility built into the budget. It takes into consideration there will be some ebb and flow in the market. These are not fixed numbers. Mayor Carpenter stated the budget numbers are inter - related, not absolutely related. A budget gives staff direction; a not -to exceed amount unless they come back to council for an adjustment. Then we move to a policy decision about what the tax rate should be set at that funds a budget to a certain level. We don't know if we are going to cover that 09 -2 -201.4 Minutes Page -13 - difference in the future or if we are going to have another recession in a quarter where the budget is not viable after all, because we don't have the funds to fund the approved budget. When we make a policy decision to set a different tax rate that does not match to the budget we are not mandating the future but making an educated guess based on experience and current conditions that we believe we will get there anyway. If we do not get there, we will take some action to adjust it. The amount of tax revenue that will come into the city based on what we set today as a tax rate cannot be perfectly envisioned. Small incremental changes simply set a desired direction and do not set absolutes because the macro economic conditions can change at any time. He is comfortable with 0.4974 or 0.4949 or anywhere in between. The macro economic conditions are -;not going to conform to our actions in these chambers. Therefore setting a tax rate is a statement of policy and intended direction only. isked if this budget does not that is not,correct. It assumes •cial and residential properties who moved, seconded by the setting of the tax rate at and Mayor Pro -Tem John �, ating no. Motion Failed. Mayor Carpenter rcognized' 'Councilmember Edwards who moved, seconded by Councilmember Duke that property taxes be increased by the adoption of a tax rate of 0.4974; ,which is effectively a 2.4% increase in the tax rate. The vote was 3 -2, with Councilmember Fowler, Edwards and Duke voting yes, Mayor Pro -Tem John, and Councilmember S agliola voting no. Motion Carried. all Mayor Carpenter recognized Deputy City Secretary Donna Schmoekel who recapped the votes of items 1 through 7. Requests and Announcements 8. Announcements by City Manager 09 -2 -201.4 Minutes Page -14 - O • Citizen Kudos • Recognition of City employee actions • New Departmental initiatives Mayor Carpenter took time to thank Council for conducting the budget voting items tonight in a very professional manner. No further announcements were provided. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. Mayor Carpenter recognized Councilmember S this put on the agenda but in comparison of the like a clear definition of gambling, specifically gambling. He has been approached by people a Bunco in the City. City Manager John Kesse Police Department to provide a report on that in Mayor Carpenter recognized Coyne update request he had made last weel confirmed with City Secretary Bren' from now for September 23, when Ov and available to answer uuestions and Announc ;Bola who stated he really did not need ings we talked about tonight, he would nco, and does it fit into the category of they want to know why they can't play ffered uts Lt. Michael Carev from the r Duke who asked about the natatorium tive Director oAI)evelopment Brian James is that this item is scheduled three weeks ;presentative Phil. Gaudreau will be in town the most recent information. Mayor Carpenter recognized Councilmember Fowler who stated he attended the following: • Friday, August 29, Senior Center check presentation by Schertz Chamber Hyper Group, 12 noon. • Tuesday, September 2, Suzie's Thrift & Gifts Ribbon Cutting, 205 First Street Councilmember Fowler stated his church, the Cibolo Valley Church on FM 1103, had a back -to- school bash for the kids last Saturday, August 30, from 5 -8 p.m. There were two Schertz police officers who came with some literature and gave away safety locks for guns to the people attending the event. A lot of people were speaking with the police officers and he was happy to see them there showing the good relationship our police 09 -2 -201.4 Minutes Page -15 - department has with our citizens in the community. Officers Jeffrey Krivaka and Chris McWhirt were very cordial and spent time talking to the people there. He appreciates what our city staff does for the residents. Mayor Carpenter recognized Councilmember Scagliola who stated he attended the following: • Thursday, August 28, Cibolo Valley Local Government Corporation meeting. • Friday, August 29, Senior Center, two check(s) presentation by Schertz Chamber Hyper Group. • Tuesday, September 2, Suzie's Thrift & Gifts Ribbciri Cutting, 205 First Street Mayor Carpenter recognized Councilmember Ec the councilmembers for sticking through it with mentioned that his son has been accepted to pl Military Academy for next year. He now has '1 Carpenter stated that this was fantastic. Adiournment As there was no further business, the meeting was ATTEST: Brenda Dennis, 09 -2 -201.4 Minutes Page -16 - it, v'anted to thank the rest of et &, to rate debate. He also starting roster for West Point attending West Point. Mayor 10 p. m. R. Carpenter, Mayor Agenda No. 2 CITY COUNCIL MEMORANDUM City Council Meeting: September 16, 2014 . Department: Subject: BACKGROUND City Secretary Boards, Commissions and Committee Member Appointments /Resignations The City Secretary office has an application from Mrs. Lynn Foehrkolb who has shown interest in serving on the Historical Preservation Committee. The Historical Preservation Committee has a vacant position and Mrs. Foehrkolb application was submitted to the Interview Committee and approved. The City Secretary office has also received an application from Ms. Patti Paulson who has shown interest on serving on the Library Board. The Library Board has a vacant Alternate #2 position. and Ms. Paulson's application was submitted to the Interview Committee and approved. WLTG • �On None RECOMMENDATION Staff recommends the appointment of Mrs. Lynn Foehrkolb as a regular member to the Historical Preservation Committee. Staff also recommends moving Mrs. Janice Manzo from Alternate #2 to Alternate #1 and appointing Ms. Patti Paulson as Alternate #2 to the Library Board. Agenda No. 3 CITY COUNCIL MEMORANDUM City Council Meeting: September 16, 2014 Department: Marshal's Office: Animal Services Division Subject: Resolution No. 14 -R -74 - RAFB Agreement Goal Our goal is to continue the relationship with Randolph Air Force Base by providing them a service for stray animal pick -up. In addition, we will assist them by providing an approved rabies quarantine facility for animal bite cases that occur on base. Community Benefit The animals that are picked up from RAFB are held at the Schertz Animal Services facility, given the appropriate care, and returned to their owners if claimed. If they are not claimed, they are evaluated for overall wellness and behavior and possibly placed for adoption. In addition, if the animal is involved in a bite incident, they will be observed and/or tested for possible rabies exposure in accordance with the Texas Department of State Health Services. Summary of Recommended Action Animal Services recommends that we proceed with the approval of the agreement with RAFB. FISCAL IMPACT No fiscal impact. All fees are addressed accordingly in Exhibit 1 Agreement for Stray Animal Control Between Joint Base San Antonio Randolph and the City of Schertz. 50077367.2 RECOMMENDATION Animal Services recommends the approval of the agreement for animal pick up at RAFB. ATTACHMENT(S) Resolution No. 14 -R -74 Agreement for Stray Animal Control between Joint Base San Antonio Randolph and the City of Schertz. 50077367.2 11114 sJuntimiuslonni1w, A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN AGREEMENT WITH RANDOLPH AIR FORCE BASE, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the City enter into an agreement with Randolph Air Force Base relating to stray animal control; and WHEREAS, the City Council has determined that it is in the best interest of the City to contract with Randolph Air Force Base pursuant to the Agreement attached hereto as Exhibit A (the "Agreement "). 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 Agreement with Randolph Air Force Base 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 16th day of September, 2014. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor Brenda Dennis, City Secretary (CITY SEAL) 50234811.1 EXHIBIT A GI! ' 50234811.1 A -1 DEPARTMENT OF THE AIR FORCE 502n Ali{ BASE WING JOINT BASE SAN ANTONIO AGREEMENT FOR STRAY ANIMAL CONTROL BETWEEN JOINT BASE SAN ANTONIO RANDOLPH AND THE CITY OF SCHERTZ TERMS DEFINED: BDOC - Base Defense Operations Center (JBSA RND Security Forces Dispatch) CES - Civil Engineer Squadron (oil JBSA RND) City - City of Schertz Animal Shelter FMCS - Energy Management Control Systems Feral - Refers to domesticated cats and dogs that have become wild that can no longer be maintained by humans as pets. Government -The United States Government JBSA RND - Joint Base San Antonio Randolph MO U - Memorandum of Understanding SFS - Security Forces Squadron (on JBSA RND) Stray Animal - Refers to domesticated cats and dogs that are not in the immediate control of their owner Wildlife - Refers to raccoons, squirrels, rabbits, skunks, opossums, coyotes and other animals that are not routinely maintained as household pets 1. The health and safety of installation personnel must be protected by timely removal of Stray or Feral animals which possess potential hazardous situations, this will not include Wildlife. Certain minimum requirements must be met by the City before they will be utilized. 2. JBSA RND desires to implement procedures utilizing the City to remove Stray Animals as needed and within the City's capabilities. Stray Animals will be captured and removed by the City (if possible). Calls for services will be lhnited to the City's duty hours, 0800 - 1700 Mon /Sat; calls during non -duty hours will only be for Life threatening emergencies or the endangerment of personnel in public places by aggressive animals. 3. The City participating must be willing to meet minimum standards set by the United States Air Force and the State or Texas. 4. Insurance: The City agrees to carry medical and Liability insurance on all personnel, vehicles and facilities. 5. Both parties agree that no Party is an agent, servant, or employee of the other Party and each Party agrees it is responsible for its individual acts and deeds, as well as the acts and deeds of its employees, representatives, and agents relating to this agreement. 6. Licensure: The City shall possess and maintain a current valid business license at all times while participating in the agreement. 7. Notice of individuals authorized to make calls: The City will not accept calls for pickup from base residences at any time. All calls for pickup will come from only the Randolph CES EMCS or Randolph Pest Management. Calls during non -duty hours will come from the BDOC after approval has been obtained from the SFS on -duty flight chief or higher, from EMCS or Pest Management Personnel for CES. 8. Billing: The following fees for services will be paid to the City. The City will provide the JBSA RND with a 60 -day notice prior to any price increases; (Bill to be sent to JBSA Randolph/CES, 1651 5`h St West, Randolph AFB TX, 78150) (ATTN: CEO) See Exhibit 1 9. Collection of fees: The City will make every attempt to collect fees from owners. The City will attempt to put unclaimed animals up for adoption to collect required fees. 10. Notification of captured animals: The City will maintain a listing of captured animals on JBSA RND. This list should include the animal type, breed, color, tag number and if chipped, if available. This will provide the installation (upon request) the capability of verifying captured animals with owner, upon owner's request. The housing contractor should have contact with Schertz ACS professionals to determine if any of their customer's pets have been captured upon their request. 11. Health of captured animals: All captured animals will receive a health check -up and any required vaccination or medication as deemed necessary by the City. This also includes the costs associated with rabies quarantine and /or rabies testing. The cost will be billed to the owner. 12. Eradication of animals: All attempts to contact owners must be made before captured animals are euthanized and should be accomplished by checking vaccination tags and microchip implants (if and when available /detected by the City). Otherwise, unidentified animals are to be treated as strays. a. Captured animals with tags will be held for five days before adoption or euthanasia. b. Captured animals /strays without identification (tagshnicrochip) will be held for three days before adoption or euthanasia. c. Feral /wild /stray animals caught may be euthanized (especially when involved in a bite incident) when captured by the City or turned in by base personnel. They will then be submitted for evaluation and results reported back to JBSA RND. 13. Flight line /Controlled areas: The City will not enter the flight line, aircraft taxiways or controlled areas without escort, authorization, or notification under any circumstances. 14. Firearms /Tranquilizer /Dart guns: It is the understanding of JBSA RND that the City will not utilize firearms, tranquilizer guns or dart guns. In the event these devices will be used, coordination with the SFS /S3 or Commander must be accomplished before they are used on JBSA RND. 15. Trapping animals: The City may trap animals on JBSA RND with proper coordination/notification through Pest Management. 16. Installation Access: Coordination will be made with the SFSNisitor Control Center to receive a pass after proper vetting to expedite entry of the Animal Control Officer (s). Passes will be renewed every 12 months unless otherwise directed. It is the City's responsibility to collect and return the passes when an employee quits, is terminated or this agreement is terminated or expires. Passes are only valid while performing ACO duties or for accessing the installation for official business with installation agencies in performance of this agreement. City vehicles used in the performance of this agreement will be clearly marked. The City will provide a current employee listing to SFS and Pest Management. (An updated list will be provided when any changes are made.) 17. Response /pick up: City employees entering JBSA RND requiring an escort will proceed to building #235. Escorts will respond depending on availability. Escorts are required anytime the City must enter the flight line, aircraft taxiways or controlled areas to ensure the City is aware of all prohibited areas. 18. Compliance with traffic laws: The City agrees that operators of its vehicles will comply with all JBSA RND and state traffic laws while on JBSA RND property. In addition, all operators entering JBSA RND will comply will all federal guidelines /policies and regulations. 19. This agreement will be reviewed annually and is valid for one year from the date signed or until terminated. A change in personnel does not constitute re- accomplishment for currency of this agreement through its effective period during which the change occurred and can be changed when its annual review is due. ANTONY /SON Chief, Operations Flight 502 Civil Engineer Squadron Joint Base San Antonio, TX 78236 JOHN C. KESSEL City Manager, City of Schertz DEPARTMENT OF TFIE AIR FORCE 602n AIR BASE WING JOINT BASE SAN ANTONIO AGREEMENT FOR STRAY ANIMAL CONTROL BETWEEN JOINT BASE SAN ANTONIO RANDOLPH AND THE CITY OF SCHERTZ Exhibit 1 (a) $100 per call out fee during hours or $150 for call out with capture (b) In the case of owned animals the impoundment fee collected from the owners will be deducted from JBSA RND fee. (c) $150 for non -duty hours (Limited to life threatening situations). (d) Quarantine fee: $50 plus daily boarding fee of $15 (e) EuthauasiafDecapitation (rabies testing) fee: $155 Agenda No. 4 CITY COUNCIL MEMORANDUM City Council Meeting: September 16, 2014 . Department: Administration Subject: Resolution 14 -R -78 - APPROVAL OF A BOND RESOLUTION PREVIOUSLY ADOPTED BY THE BOARD OF DIRECTORS OF THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION AUTHORIZING THE ISSUANCE OF BONDS DESIGNATED AS "SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION CONTRACT REVENUE REFUNDING BONDS, NEW SERIES 2014"; ACKNOWLEDGING THAT THESE OBLIGATIONS WILL BE SOLD TO RAYMOND JAMES & ASSOCIATES, INC., AS THE AUTHORIZED REPRESENTATIVE OF A GROUP OF UNDERWRITERS PURSUANT TO THE PROVISIONS OF A PURCHASE CONTRACT; RATIFYING, RECONFIRMING, AND READOPTING THE PROVISIONS OF A REGIONAL WATER SUPPLY CONTRACT EXECUTED BETWEEN THE CITY OF SCHERTZ, TEXAS, THE CITY OF SEGUIN, TEXAS, AND THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION; AUTHORIZING THE MAYOR, THE CITY MANAGER, AND THE CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS TO EXECUTE ON BEHALF OF THE CITY OF SCHERTZ, TEXAS ALL DOCUMENTS IN CONNECTION WITH THIS TRANSACTION; AND OTHER MATTERS IN CONNECTION THEREWITH BACKGROUND The SSLGC has been working with Southwest Securities and Samco Capital Markets, the LGC's Co- Financial Advisors, on Refunding the LGC's outstanding Series 2005 Bonds for interest rate savings. The interest rate on the Series 2005 Bonds range from 4 %- 4.375 %. FISCAL IMPACT The Bonds will be solely paid from the Pledged Revenues as outlined in the Regional Water Supply Contract that became effective November 15, 1999 and entered into by and among the Schertz /Seguin Local Government Corporation, the City of Schertz, and the City of Seguin. City Council Memorandum Page 2 Preliminary interest rate indications show that Net Savings, after all costs of issuance and contributions, will be in excess of $400,000. Savings will benefit Schertz and Seguin equally. Staff recommends proceeding with the refunding to lock in the savings and approving Resolution 14 -R -78. Council must read the following motion: A MOTION BY COUNCILMEMBER AND SECONDED BY COUNCILMEMBER THAT THE CITY COUNCIL APPROVE A RESOLUTION APPROVING A BOND RESOLUTION PREVIOUSLY ADOPTED BY THE BOARD OF DIRECTORS OF THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION AUTHORIZING THE ISSUANCE OF SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION CONTRACT REVENUE REFUNDING BONDS, NEW SERIES 2014" ATTACHMENT Resolution 14 -R -78 RESOLUTION 14 -R -78 APPROVING A BOND RESOLUTION PREVIOUSLY ADOPTED BY THE BOARD OF DIRECTORS OF THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION AUTHORIZING THE ISSUANCE OF BONDS DESIGNATED AS "SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION CONTRACT REVENUE REFUNDING BONDS, NEW SERIES 201419; ACKNOWLEDGING THAT THESE OBLIGATIONS WILL BE SOLD TO RAYMOND JAMES & ASSOCIATES, INC., AS THE AUTHORIZED REPRESENTATIVE OF A GROUP OF UNDERWRITERS PURSUANT TO THE PROVISIONS OF A PURCHASE CONTRACT; RATIFYING, RECONFIRMING, AND READOPTING THE PROVISIONS OF A REGIONAL WATER SUPPLY CONTRACT EXECUTED BETWEEN THE CITY OF SCHERTZ, TEXAS, THE CITY OF SEGUIN, TEXAS, AND THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION; AUTHORIZING THE MAYOR, THE CITY MANAGER, AND THE CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS TO EXECUTE ON BEHALF OF THE CITY OF SCHERTZ, TEXAS ALL DOCUMENTS IN CONNECTION WITH THIS TRANSACTION; AND OTHER MATTERS IN CONNECTION THEREWITH NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council of the City of Schertz, Texas (the "City ") has reviewed and hereby approves (i) the Bond Resolution as to form and content, including the factual findings contained therein and all documents referenced therein, adopted by the Board of Directors of the Schertz /Seguin Local Government Corporation (the "Corporation ") relating to the issuance of obligations designated as "Schertz /Seguin Local Government Corporation Contract Revenue Refunding Bonds, New Series 2014" (the "Bonds "), (ii) the Bonds that were sold to Raymond James & Associates, Inc., as the authorized representative of a group of underwriters (the "Underwriters "), (iii) the Regional Water Supply Contract, including the factual findings contained therein, previously approved and executed among the City of Schertz, Texas, the City of Seguin, Texas (collectively, the "Cities "), and the Schertz /Seguin Local Government Corporation (the "Contract ") which provides certain security for the payment of these obligations, (iv) the bond purchase contract (the "Purchase Contract ") authorizing the sale of the Bonds to the Underwriters, (v) the Sale and Offering Documents (as defined in the Contract), including, but not limited to, the City's annual continuing disclosure requirements in accordance with the Rule (as defined in the Contract), (vi) the City's obligations under the Contract and acknowledges that the payment of principal of and interest on such Bonds is payable, in whole or in part, from the Annual Payments to be made by the Cities to the Corporation under and pursuant to the Contract, and (vii) the refunding of the Refunded Obligations and acknowledges that this refunding will provide present value savings to the Corporation. The Mayor, the City Manager, and the City Secretary of the City of Schertz, Texas are hereby authorized to execute on behalf of the City, the Purchase Contract, and any and all documents in connection with this transaction. This resolution may be relied upon by the appropriate representatives of the parties to this transaction and the Texas Attorney General in his review and approval of this transaction. 57348782.3 Section 2. The City Council recognizes that Section 53 of the Bond Resolution contains covenants of the City relating to the Bonds. Since certain financial information, financial status, operating data, and annual audits of the City's utility system will be entirely within the control and disposition of the City, and the Preliminary Official Statement and the Final Official Statement prepared in connection with the issuance of the Bonds (together, the "Official Statement "), describe a continuing disclosure undertaking agreement (the "Undertaking ") of the City, the City Council specifically adopts the covenants hereinafter described, which comprise the Undertaking, and shall comply therewith for so long as all or any portion of the Annual Payments made by the City under the Contract act as security for or a source of repayment of the Bonds. A. Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: EMMA means the MSRB's Electronic Municipal Market Access system, accessible by the general public, without charge, on the internet through the uniform resource locator (URL) http://www.emma.msrb.org. MSRB means the Municipal Securities Rulemaking Board. Rule means SEC Rule 15c2 -12, as amended from time to time. SEC means the United States Securities and Exchange Commission. B. Annual Reports. The City shall file annually with the MSRB, (1) within six months after the end of each fiscal year of the City ending in or after 2014, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized by Section 35 of the Bond Resolution, being the information described in Exhibit C thereto, and (2) if not provided as part of such financial information and operating data, audited financial statements of the City, when and if available. Any financial statements so to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit C thereto, or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation, and (ii) audited, if the City commissions an audit of such financial statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, then the City shall file unaudited financial statements within such period and audited financial statements for the applicable fiscal year to the MSRB, when and if the audit report on such financial statements becomes available. Under current Texas law, including, but not limited to, Chapter 103, as amended, Texas Local Government Code, the City must have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit. The annual financial statement, including the auditor's opinion on the statement, shall be filed in the office of the City Secretary within 180 days after the last day of the City's fiscal year. Additionally, upon the filing of this financial statement and the annual audit, these documents are subject to the Texas Open Records Act, as amended, Texas Government Code, Chapter 552. 57348782.3 -2- If the City changes its fiscal year, it will file notice of such change (and of the date of the new fiscal year end) with the MSRB prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. C. Notice of Certain Events. The City shall file notice of any of the following events with respect to the Bonds to the MSRB in a timely manner and not more than 10 business days after occurrence of the event: (1) Principal and interest payment delinquencies; (2) Non - payment related defaults, if material; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB), or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) Modifications to rights of holders of the Bonds, if material; (8) Bond calls, if material, and tender offers; (9) Defeasances; (1.0) Release, substitution, or sale of property securing repayment of the Bonds, if material; (11) Rating changes; (12) Bankruptcy, insolvency, receivership, or similar event of the City, which shall occur as described below; (13) The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) Appointment of a successor or additional paying agent /registrar or the change of name of a paying agent/registrar, if material. For these purposes, any event described in the immediately preceding paragraph (12) is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has 57348782.3 -3 assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. The City shall file notice with the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with this Section by the time required by this Section. D. Limitations Disclaimers and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give notice of any deposit that causes the Bonds to be no longer Outstanding. The provisions of this Section are for the sole benefit of the holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITH OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under the Bond Resolution for purposes of any other provision of the Bond Resolution. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or 57348782.3 -4- sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the holders of a majority in aggregate principal amount (or any greater amount required by any other provision of the Bond Resolution that authorizes such an amendment) of the Outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the holders and beneficial owners of the Bonds. The City may also repeal or amend the provisions of this Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may amend the provisions of this Section in its discretion in any other manner or circumstance, but in either case only if and to the extent that the provisions of this sentence would not have prevented an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds, giving effect to (a) such provisions as so amended and (b) any amendments or interpretations of the Rule. If the City so amends the provisions of this Section, the City shall include with any amended financial information or operating data next provided in accordance with this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. E. Information Format — Incorporation by Reference. The City information required under this Section shall be filed with the MSRB through EMMA in such format and accompanied by such identifying information as may be specified from time to time thereby. Under the current rules of the MSRB, continuing disclosure documents submitted to EMMA must be in word - searchable portable document format (PDF) files that permit the document to be saved, viewed, printed, and retransmitted by electronic means and the series of obligations to which such continuing disclosure documents relate must be identified by CUSIP number or numbers. Financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document) available to the public through EMMA or filed with the SEC. Section 3. Authorized Officials of the City will review and approve the Official Statement. Information appearing in the Official Statement concerning the City (including, particularly, the description of the Undertaking and Appendices C and E thereto), as of its date, were and are true and correct in all material respects. Insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. Insofar as the descriptions and statements, including financial data, of or pertaining to entities, other than the City, and their activities contained in such Official Statement are concerned, such statements and data have been obtained from sources which the City believes to be reliable, and the City has no reason to believe that they are untrue in any material respect. Section 4. 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. 57348782.3 -5- Section 5. All ordinances and 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 6. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 7. 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 8. 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, as amended, Texas Government Code. Section 9. This Resolution shall be in force and effect from and after the date of its adoption, and it is so resolved. [The remainder of this page intentionally left blank.] 57348782.3 -6- APPROVED • DAY OF ATTEST: Brenda Dennis, City Secretary Michael R. Carpenter, Mayor 57348782.3 -7- RESOLUTION 14 -R -78 APPROVING A BOND RESOLUTION PREVIOUSLY ADOPTED BY THE BOARD OF DIRECTORS OF THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION AUTHORIZING THE ISSUANCE OF BONDS DESIGNATED AS "SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION CONTRACT REVENUE REFUNDING BONDS, NEW SERIES 201499; ACKNOWLEDGING THAT THESE OBLIGATIONS WILL BE SOLD TO RAYMOND JAMES & ASSOCIATES, INC., AS THE AUTHORIZED REPRESENTATIVE OF A GROUP OF UNDERWRITERS PURSUANT TO THE PROVISIONS OF A PURCHASE CONTRACT; RATIFYING, RECONFIRMING, AND READOPTING THE PROVISIONS OF A REGIONAL WATER SUPPLY CONTRACT EXECUTED BETWEEN THE CITY OF SCHERTZ, TEXAS, THE CITY OF SEGUIN, TEXAS, AND THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION; AUTHORIZING THE MAYOR, THE CITY MANAGER, AND THE CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS TO EXECUTE ON BEHALF OF THE CITY OF SCHERTZ, TEXAS ALL DOCUMENTS IN CONNECTION WITH THIS TRANSACTION; AND OTHER MATTERS IN CONNECTION THEREWITH NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council of the City of Schertz, Texas (the "City ") has reviewed and hereby approves (i) the Bond Resolution as to form and content, including the factual findings contained therein and all documents referenced therein, adopted by the Board of Directors of the Schertz /Seguin Local Government Corporation (the "Corporation ") relating to the issuance of obligations designated as "Schertz /Seguin Local Government Corporation Contract Revenue Refunding Bonds, New Series 2014" (the "Bonds "), (ii) the Bonds that were sold to Raymond James & Associates, Inc., as the authorized representative of a group of underwriters (the "Underwriters "), (iii) the Regional. Water Supply Contract, including the factual findings contained therein, previously approved and executed among the City of Schertz, Texas, the City of Seguin, Texas (collectively, the "Cities "), and the Schertz /Seguin Local Government Corporation (the "Contract ") which provides certain security for the payment of these obligations, (iv) the bond purchase contract (the "Purchase Contract ") authorizing the sale of the Bonds to the Underwriters, (v) the Sale and Offering Documents (as defined in the Contract), including, but not limited to, the City's annual continuing disclosure requirements in accordance with the Rule (as defined in the Contract), (vi) the City's obligations under the Contract and acknowledges that the payment of principal of and interest on such Bonds is payable, in whole or in part, from the Annual Payments to be made by the Cities to the Corporation under and pursuant to the Contract, and (vii) the refunding of the Refunded Obligations and acknowledges that this refunding will provide present value savings to the Corporation. The Mayor, the City Manager, and the City Secretary of the City of Schertz, Texas are hereby authorized to execute on behalf of the City, the Purchase Contract, and any and all documents in connection with this transaction. This resolution may be relied upon by the appropriate representatives of the parties to this transaction and the Texas Attorney General in his review and approval of this transaction. 57348782.3 Section 2. The City Council recognizes that Section 53 of the Bond Resolution contains covenants of the City relating to the Bonds. Since certain financial information, financial status, operating data, and annual audits of the City's utility system will be entirely within the control and disposition of the City, and the Preliminary Official Statement and the Final. Official Statement prepared in connection with the issuance of the Bonds (together, the "Official Statement "), describe a continuing disclosure undertaking agreement (the "Undertaking ") of the City, the City Council specifically adopts the covenants hereinafter described, which comprise the Undertaking, and shall comply therewith for so long as all or any portion of the Annual Payments made by the City under the Contract act as security for or a source of repayment of the Bonds. A. Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: EMMA means the MSRB's Electronic Municipal Market Access system, accessible by the general public, without charge, on the internet through the uniform resource locator (URL) http://www.emma.msrb.org. MSRB means the Municipal. Securities Rulemaking Board. Rule means SEC Rule 15c2 -12, as amended from time to time. SEC means the United States Securities and Exchange Commission. B. Annual Reports. The City shall file annually with the MSRB, (1) within six months after the end of each fiscal year of the City ending in or after 2014, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized by Section 35 of the Bond Resolution, being the information described in Exhibit C thereto, and (2) if not provided as part of such financial information and operating data, audited financial statements of the City, when and if available. Any financial statements so to be provided shall be (i) prepared in accordance with the accounting principles described in Exhibit C thereto, or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation, and (ii) audited, if the City commissions an audit of such financial statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, then the City shall file unaudited financial statements within such period and audited financial statements for the applicable fiscal year to the MSRB, when and if the audit report on such financial statements becomes available. Under current Texas law, including, but not limited to, Chapter 103, as amended, Texas Local Government Code, the City must have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit. The annual financial statement, including the auditor's opinion on the statement, shall be filed in the office of the City Secretary within 180 days after the last day of the City's fiscal year. Additionally, upon the filing of this financial statement and the annual audit, these documents are subject to the Texas Open Records Act, as amended, Texas Government Code, Chapter 552. 57348782.3 -2- If the City changes its fiscal year, it will file notice of such change (and of the date of the new fiscal year end) with the MSRB prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. C. Notice of Certain Events. The City shall file notice of any of the following events with respect to the Bonds to the MSRB in a timely manner and not more than 10 business days after occurrence of the event: (1) Principal and interest payment delinquencies; (2) Non - payment related defaults, if material; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB), or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) Modifications to rights of holders of the Bonds, if material; (8) Bond calls, if material, and tender offers; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Bonds, if material; (1.1) Rating changes; (12) Bankruptcy, insolvency, receivership, or similar event of the City, which shall occur as described below; (13) The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) Appointment of a successor or additional paying agent /registrar or the change of name of a paying agent /registrar, if material. For these purposes, any event described in the immediately preceding paragraph (12) is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has 57348782.3 -3- assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. The City shall file notice with the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with this Section by the time required by this Section. D. Limitations. Disclaimers. and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give notice of any deposit that causes the Bonds to be no longer Outstanding. The provisions of this Section are for the sole benefit of the holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITH OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under the Bond Resolution for purposes of any other provision of the Bond Resolution. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or 57348782.3 -4- sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the holders of a majority in aggregate principal amount (or any greater amount required by any other provision of the Bond Resolution that authorizes such an amendment) of the Outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the holders and beneficial owners of the Bonds. The City may also repeal or amend the provisions of this Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may amend the provisions of this Section in its discretion in any other manner or circumstance, but in either case only if and to the extent that the provisions of this sentence would not have prevented an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds, giving effect to (a) such provisions as so amended and (b) any amendments or interpretations of the Rule. If the City so amends the provisions of this Section, the City shall include with any amended financial information or operating data next provided in accordance with this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. E. Information Format — Incorporation by Reference. The City information required under this Section shall be filed with the MSRB through EMMA in such format and accompanied by such identifying information as may be specified from time to time thereby. Under the current rules of the MSRB, continuing disclosure documents submitted to EMMA must be in word- searchable portable document format (PDF) files that permit the document to be saved, viewed, printed, and retransmitted by electronic means and the series of obligations to which such continuing disclosure documents relate must be identified by CUSIP number or numbers. Financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document) available to the public through EMMA or filed with the SEC. Section 3. Authorized Officials of the City will review and approve the Official Statement. Information appearing in the Official Statement concerning the City (including, particularly, the description of the Undertaking and Appendices C and E thereto), as of its date, were and are true and correct in all material respects. Insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. Insofar as the descriptions and statements, including financial data, of or pertaining to entities, other than the City, and their activities contained in such Official Statement are concerned, such statements and data have been obtained from sources which the City believes to be reliable, and the City has no reason to believe that they are untrue in any material respect. Section 4. 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. 57348782.3 -5- Section 5. All ordinances and 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 6. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 7. 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 8. 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, as amended, Texas Government Code. Section 9. This Resolution shall be in force and effect from and after the date of its adoption, and it is so resolved. [The remainder of this page intentionally left blank.] 57348782.3 -6- ATTEST: City Secretary 57348782.3 -7- Mayor Agenda No. 5 CITY COUNCIL MEMORANDUM City Council Meeting: September 16, 2014 Department: Public Works — Fleet Division Subject: Resolution No. 14 -R -80 — A Resolution by the City Council of the City of Schertz, Texas authorizing an agreement with PropertyRoom.com, Inc. and other matters in connection therewith 1 ��O Kei till 11►17 The City has several city vehicles and equipment that are out of commission that need to be sold and removed from our property. The City also stores abandoned, seized, forfeited, and impound vehicles that cannot be sold until released by the appropriate court for disposition in accordance with State Law. Traditionally, the City has utilized GovDeals for the sale of the surplus property. While GovDeals is a good source to liquidate surplus items, there are many negative aspects when selling vehicles and equipment on GovDeals. These include but are not limited to: 1. Excess staff time — time is needed to prepare, photograph, and post units for sale. Staff also must answer questions, meet buyers, and coordinate all aspects of the sale. 2. Length of time for sale — traditionally vehicles on GovDeals have a longer period before they are sold. When vehicles are stored and not utilized for long periods of time, the engine and other major components begin to deteriorate. Pests and rodents will create a habitat in the body of the vehicle, creating expensive repairs that lower the resale value. (Vehicles are posted for 2 weeks at a time on GovDeals.) 3. Limited Protection — buyers meet staff and visit storage areas to pick up units. Employees are exposed to conditions of accepting cash, meeting buyers with no protection for personal safety, and buyers are on City Property, sometimes for long periods of time. The Fleet Division has researched other means of disposition for these vehicles. PropertyRoom.com specializes in auction services for government vehicles and property. PropertyRoom.com has three programs that the City can utilize: 1. Gold Program — in this "do -it- yourself' program, vehicles will be sold on the PropertyRoom.com website and representatives will assist with the money transfer and title process. City Council Memorandum Page 2 2. Titanium Program — an in- between of the "do -it- yourself' program and the Platinum. Program. Tow and storage fees are charged to the City in this program. 3. Platinum Program — in this program, PropertyRoom.com handles every aspect of the transaction from cleaning and preparing vehicles for sale to title transfer and money transaction. Tow and storage fees are not charged to the City in this program. PropertyRoom.com provides an overall better service than GovDeals in regards to fleet disposition. With GovDeals, the City is on its own from start to finish with the disposition of fleet vehicles. GovDeals is a basic website sale service and they charge low fees to the seller, but high fees to the buyer, resulting in less movement of product. PropertyRoom.com statistically receives higher resale value for vehicles and equipment than GovDeals. In addition, PropertyRoom.com reaches a larger number of potential buyers. Other cities in Texas that are currently utilizing PropertyRoom.com for their fleet disposition include: Alamo Heights, Alvarado, Arlington, Aubrey, Balch. Springs, Bay City, Beaumont, Bedford, Bellmead, Burleson, Burnet County Sheriff, Cedar Hill, Cedar Park, Cibolo, Duncanville, Killeen, Lewisville, Cleveland, Cockrelle, Comanche, Corpus Christi, DeSoto, Denison, El Paso, Ennis, Flower Mound, Forest Hill, Fort Worth, Friendswood, Frisco, Gainesville, Garland ISD, Godley, Harlingen, Hays County Sheriff, Heath, Highland Village, Houston, Hurst, Jersey Village, Kerrville, La Marque, Lakeway, Lancaster, Leander, Mansfield, Memorial Village, Nacogdoches, Oak Ridge North, Ovilla, Pittsburg, Port Lavaca, Richmond, :Round Rock, Rowlett, San Angelo, San Antonio, Santa Fe, Seagoville, Seguin, Shenandoah, Stafford, The Colony, Tri- County Auto Burglary and Theft Prevention Unit, Universal City, Victoria, and Wylie The Public Works Department has made contact with Mike Williams who is the South Central Regional Sales Director with PropertyRoom.com who made a presentation to key Public Works Staff along with Mr. Bierschwale and Mr. Cantu. The same key staff met with Management, Purchasing, and Finance to discuss the program and all recommend that the City go forward with the Platinum Program with PropertyRoom.com. We feel that the Platinum Program will be the best route in helping the City dispose of surplus fleet vehicles and equipment. We recommend approval of the enclosed agreement with PropertyRoom.com for one year. The agreement is non - exclusive, therefore the City can continue to utilize GovDeals, but trial PropertyRoom.com for one year. If PropertyRoom.com returns as promised, then we can extend the contract for a longer period of time. We propose utilizing PropertyRoom.com for Fleet disposition; however, they do handle other types of property disposition, including but not limited to furniture, computer equipment, and cell phones. Goal Enter into an agreement with PropertyRoom.com for fleet disposition by the Public Works Department and other property disposition as deemed appropriate by the Purchasing Department. City Council Memorandum Page 3 Community Benefit Fleet disposition that results in quicker turn- around and a higher sale value results in lower costs for the City including the use of funds towards the purchase of new vehicles and equipment. Summary of Recommended Action Staff is recommending approval of Resolution No. 14 -R -80. FISCAL IMPACT No fiscal impact to the City to enter into the agreement and use PropertyRoom.com for disposition of the vehicles. Upon the sale of a vehicle or equipment by PropertyRoom.com, the City will pay a commission to PropertyRoom.com in the amount of 12.5 %. There are no tow fees or storage fees to the City on the Platinum Program. I.7toEel 0G /10IU17rY010 1 Staff recommends approval of Resolution 14 -R -80 approving the agreement with PropertyRoom.com. ATTACHMENTS 041 TINS 4::1 Attachment A — PropertyRoom.com Property Disposition. Service Agreement RESOLUTION NO. 14 -R -80 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN AGREEMENT WITH PROPERTYROOM.COM, INC. AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Schertz, Texas (the "City "), owns certain City vehicles that are no longer operational and need to be sold; WHEREAS, the City also stores certain abandoned, seized, forfeited, and impounded vehicles and equipment that cannot be sold until released by the appropriate court for disposition in accordance with State Law; WHEREAS, PropertyRoom.com specializes in auction services for government vehicles and property; and WHEREAS, the City Council (the "City Council ") of the City has determined that it is in the best interest of the City to enter into an agreement with PropertyRoom.com for the disposition of certain City -owned property; now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS II I_749 Section 1. The City Council hereby authorizes the City Manager to execute and deliver the Property Disposition Service Agreement and related documentation in substantially the form set forth on Exhibit A, with such minor modifications that may be authorized by the City Manager, in consultation with the City Attorney, provided that no such modifications shall be contrary to, or inconsistent with, the Property Disposition Service Agreement. 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 16 th day of September, 2014 CITY OF SCHERTZ, TEXAS Mayor, Michael R. Carpenter City Secretary, Brenda :Dennis (CITY SEAL) 50506221.1 - 2 - 5257 Buckeystown Pike, Suite 475 Frederick, MD 21704 Tel: 240.751.9123 Fax: 240.230.0229 Federal Tax ID: 86- 0962102 Version date: 2014 -June Owner Name: NJPA Agreement: City of Schertz Yes ❑ No X Mailing Address: NJPA Member #: N/A 1400 Schertz Parkway City, State, Zip Signature Date: Schertz, Texas 78154 Telephone: Automatic Renewal: 210 - 619 -1000 Yes ❑ No X Fax: Expiration Date: (if not automatic 210 - 619 -1849 renewal) One Year Primary Contact Name: Jon Harshman, Nancy Tumlinson, and Primary Contact Email: Jerry McFarland iharshman@schertz.com Primary Contact Phone: 210 - 619 -1000 ntumlinson@schertz.com Mcfarland schertz.com This agreement ( "Agreement ") documents the terms and conditions under which PropertyRoom.com, Inc., a Delaware corporation ( "Contractor "), will provide storage, auction and disposition services ( "Services ") on behalf of owner named above ( "Owner "). At request of Owner, Contractor agrees to establish separate accounts under the terms of this Agreement for any other departments or agencies related to Owner for purposes of complying with Owner's financial accounting requirements. Contractor also recognizes the common practice in many jurisdictions to permit related agencies the opportunity to use the services in this Agreement (to "Piggyback ") according to the terms and pricing contained herein. Contractor further stipulates that any municipal, county, or state governmental agency located in the same state as Owner may also Piggyback this Agreement. Owner acknowledges Contractor has advised Owner about Contractor's nationally awarded contract vendor status from the National Joint Powers Alliance ( "NJPA ") for Services described in this Agreement, and Owner can obtain complete details of the related RFP process at www.NJPAcoop.org. This Agreement comprises the entire agreement between Contractor and Owner relating to the storage, auction and disposition of property and supersedes any prior understandings, agreements, or representations by or between the parties, be they written or oral. PropertyRoom.com P a J e 11 of 7 PropertyRoom.com Property Disposition Service Agreement 1. Items Requiring Services. Owner will designate items of property ( "Property ") it desires to provide to Contractor for Services. For the sake of clarity, in this Agreement, Property means smaller items, such as jewelry, electronics, bicycles and surplus spare parts, as well as larger items, such as cars, trucks, planes or industrial compressors. Contractor retains the right to accept or reject certain Property in its sole discretion. 2. Title to Property. Owner shall retain legal title to Property until it is purchased by auction or otherwise disposed of in accordance with the Agreement, at which time Owner will be deemed to have transferred title to the purchaser or other acquirer of the Property (the "Buyer "). Owner appoints Contractor as its representative and instrumentality to hold and offer for sale on Owner's behalf the Property, in accordance with this Agreement. Owner appoints Contractor as its attorney -in -fact to sign any and all documents necessary to assign to Buyers all of Owner's right, title and interest in and to Property sold or disposed. Owner's Property shall, at all times before sale or disposition, be subject to the direction and control of Owner. Cash receipts, accounts receivable, contract rights, notes, general intangibles, and other rights to payment of every kind, arising out of the sales and dispositions of Property (collectively the "Proceeds ") belong to Owner, subject to payment of amounts owed by Owner to Contractor and to third parties pursuant to this Agreement, which amounts shall be disbursed by Contractor on behalf of Owner as provided herein. 3. Services Offered. Contractor offers four Services for storage, auction and disposition of Property. Owner may use all or any combination of Services depending on Owner's needs as well as the type and nature of Property. Descriptions below summarize the four Services. As and when applicable, for all four Services, Contractor agrees to use commercially reasonable efforts to store and auction Property as well as to dispose of Property not purchased at auction, subject to the ultimate control of Owner. Contractor shall sell and dispose of Property "as is" without any liability to Owner. Contractor is solely responsible for identifying and resolving sales and use tax issues arising from Property sales, including charging, collecting and remitting such taxes. a. Portable Service. The Portable Service applies to Property items small enough to be picked -up and loaded onto box trucks. Contractor will, on Owner's behalf as its representative, pick -up, test (if applicable and practicable), erase or destroy (in the case of electronic goods) hard disks and SIM cards, photograph, research, store, and list Property for sale by internet auction to the public on one or more domains selected by Contractor. Typical Property processed under the Portable Service include law enforcement property and evidence items approved for disposition, seized items, municipal surplus, and abandoned property as well as lost and found items. b. Gold Service. The Gold Service applies to Property items too large for pick -up in a box truck and for which Owner agrees to auction -in- place. At Owner's request, Contractor will list such Property for sale by internet auction to the public on one or more domains selected by Contractor. Contractor will use descriptions and digital photographs supplied by Owner. For the sake of clarity, with Gold Service, Contractor will not pick -up and store Property but rather Owner will maintain physical control until transfer of title to Buyers. Contractor will complete auctions and collect funds from Buyers and then provide Owner and Buyers mutual contact information to facilitate Property pick -up by Buyers. Typical Property processed under the Gold Service includes cars and trucks located too far from storage yards to make it economically feasible to tow; additional items include large compressors, generators, etc. c. Titanium Service. The Titanium Service applies to Property vehicles seized and or impounded by law enforcement agencies. At Owner's request, Contractor will receive tows of seized and impounded vehicles at local yard facilities ( "Yards "), storing vehicles while awaiting Owner decision on whether to release a vehicle to a citizen or send to auction. For release -to- citizen vehicles ( "Released Vehicles "), Contractor will process paperwork and collect storage fees from citizens. Alternatively, Contractor will, on Owner's behalf as its representative, clean, photograph, store and list the Property for sale by internet auction to the public. Contractor offers Titanium Services in conjunction with subcontractor, Copart, Inc., a publicly traded company ( "Subcontractor ") with approximately 150 Yards around the U.S. PropertyRoom.com P a g c l2of7 PropertyRoom.com Property Disposition Service Agreement Platinum Service. The Platinum Service applies to the auctioning of municipal fleet vehicles and surplus equipment, i.e., Property. At Owner's request, Contractor will tow the Property to, or take delivery at Yards. Contractor will, on Owner's behalf as its representative, tow, verify drivability, clean, photograph, store and list Property for sale by internet auction to the public. Contractor offers Platinum Services in conjunction with Subcontractor. Typical Property sold under this service include municipal fleet vehicles such as automobiles and light trucks as well as specialty equipment such as fire trucks, ambulances, trash collection trucks, and other large public works equipment. 4. Term and Termination. a. The Agreement will become effective upon signature by the parties (the "Signature Date ") and, as indicated in the top section of this Agreement, will continue for either: (1) An initial term of 1 -year from the Signature Date and thereafter will automatically renew for consecutive 1 -year terms unless written notice of non - renewal is provided by either party to the other at least 60 days prior to the expiration of the then current term; or (2) An initial term specified by the Owner of at least 1 -year, after which a renewal agreement will be required by the Owner. If Owner selects this option, Contractor will send Owner a Notice of Renewal 60 days prior to Agreement expiration. b. The Agreement may be terminated by either party upon 30 days prior written notice to the other party. c. The rights of the parties to terminate the Agreement are not exclusive of any other rights and remedies available at law or in equity, and such rights will be cumulative. The exercise of any such right or remedy will not preclude the exercise of any other rights and remedies. d. Notwithstanding any termination by either party of the Agreement, Contractor will continue to remit Proceeds arising under the Agreement (net of amounts owed by Owner to Contractor and to third parties pursuant to the Agreement) in connection with any sales made before the effective date of the termination. At the time of termination, any unsold inventory shall continue to be auctioned by Contractor or disposed on behalf of Owner or returned to Owner, at Owner's election and cost. 5. Allocation of Sales Proceeds. For all Services, "Winning Bid" means the highest amount committed and paid by any auction participant ( "Buyer ") for a Property item sold. For the sake of clarity, Winning Bid does not include shipping, buyer or other fees, nor does Winning Bid mean or include an amount that a Buyer commits to pay but later fails to pay. a. Portable Service (1) Sales Price. Total Proceeds paid by Buyer shall be called "Sales Price." Sales Price shall include the Winning Bid plus fees (the "Fees "), such as shipping and handling, taxes, and insurance costs associated with the transaction and paid by Buyer. (2) Transaction Costs. Contractor shall utilize Fees, and not the Winning Bid, to pay or remit costs for shipping and handling, taxes, and insurance. (3) Contractor Commission. For each item of Property, Owner will pay to Contractor a fee (the "Contractor Commission ") equal to 50% of the first $1,000 of the Winning Bid and 25% of the Winning Bid portion, if any, that exceeds $1,000. The amount of the Winning Bid remaining after deduction and payment of the Contractor Commission will be called "Owner's Gross Proceeds ". (4) Processing Costs. Credit card processing costs ( "Credit Card Cost ") and affiliate processing fees (the "Affiliate Fees," which include commissions and processing costs paid to third parties if such a third party sent the winning bidder to the website), will be borne by Owner and Contractor in proportion to the ratio of Owner's Gross Proceeds to Contractor Commission. Owner's portion of Credit Card Cost and Affiliate Fees (collectively, the "Processing Costs ") will be paid by Contractor to applicable third parties on Owner's behalf. (5) Net Proceeds. "Owner's Net Proceeds" shall mean the amount of the Winning Bid paid to Owner after deduction and payment of Contractor Commission and Processing Costs. PropertyRoom.com Page 13 of 7 PropertyRoom.com Property Disposition Service Agreement (6) Fuel Surcharge. For Portable Services, Contractor does not charge pick -up fees, hourly labor rates or mileage charges. However, if and when fuel prices rise above a level as shown in the schedule below, a fuel surcharge ( "Fuel Surcharge ") will be paid to Contractor out of Owner's Net Proceeds for each manifest of Portable items. Contractor tracks benchmark average retail diesel prices as published online by the Energy Information Administration of the U.S. Department of Energy and resets the Fuel Surcharge quarterly based on average weekly pricing from the prior quarter. Fuel Surcharges, if any, are deducted from monthly Owner's Net Proceeds. Fuel Surcharge Schedule Retail Diesel (per gal) Fuel Surcharge* < $ 2.50 $ 0.00 $ 2.50 to $ 2.99 $ 12.40 $ 3.00 to $ 3.49 $ 24.80 $ 3.50 to $ 3.99 $ 37.20 $ 4.00 to $ 4.49 $ 49.60 ** * Divides across locations and /or sub - accounts picked -up same day ** Table continues at same rate of $12.40 increments per $0.50 per gal change in Retail Diesel. (7) Disposal. To the extent that Property is not sold by auction, Contractor will dispose of Property in a commercially reasonable manner, including, but not limited to, sending to recycling, landfill, or scrap processor. Owner understands and agrees: (a) For Property not sold by Auction, disposition activities create additional Contractor processing costs (the "Disposal Costs ") and potentially a disposition Sales Price (the "Disposition Proceeds "). (b) Disposal Costs include, but are not limited to, labor cost of reloading Property onto a truck, labor and vehicle costs associated with transporting Property for disposition, and third -party fees, such as landfill, recycling, and hazardous material disposal fees. (c) Disposition Proceeds include, but are not limited to, a Sales Price obtained for scrap metal. (d) Contractor will bear the burden of Disposal Costs. (e) Contractor will retain Disposition Proceeds, if any, as an offset to Disposal Costs, except if Disposition Proceeds for an item of Owner Property exceed $250, in which case Owner shall be entitled to retain a portion of Disposition Proceeds calculated in accordance with Section 5a above, provided that Disposition Proceeds will be deemed be equivalent to "Winning Bid" and the Disposal Costs will be deducted as a processing cost under Section 5a(4) above. b. Gold Service (1) Sales Price, Transaction Costs, Processing Costs & Net Proceeds. Same as in 5a(1), 5a(2), 5a(4) and 5a(5). (2) Contractor Commission. For each item of Property sold at auction, Owner will pay to Contractor a fee equal to 5% of the Winning Bid. In addition, Contractor will separately charge Buyer a 15% buyer's premium paid directly to Contractor by Buyer (the "Buyer's Premium "). Titanium Service. Owner will pay Contractor a "Contractor Commission ", "Tow Fees ", and "Storage Fees" as described below (1) Contractor Commission. For each item of Property sold at auction, Owner will pay to Contractor a fee equal to 12.5% of the Winning Bid. (2) Tow Fees. For vehicles that can be hauled on a standard vehicle transporter, such as automobiles and light trucks, tow services are provided for free within thirty nautical miles of any Yard. A $10 tow fee applies for every additional 10 nautical miles, or portion thereof, over PropertyRoom.com Page 14 of 7 PropertyRoom.com Property Disposition Service Agreement the first 30 free nautical miles. For over -sized vehicle tows (e.g., cranes, buses, backhoes, etc.) Contractor will seek competitive bids from several haulers and Owner may choose which company to use. In addition, fees for acquiring titles on behalf of Owner, if any, will be borne entirely by Owner. (3) Buyer Fees. Subcontractor will charge fees to Buyers for additional services, such as lot access, vehicle loading assistance, shipping and transportation, and other services. (4) Storage Fees. For Owner vehicles sold at auction, daily storage fees ( "Owner Storage Fees) equal $5.00 per vehicle per day. For Release Vehicles, daily storage fees ( "Citizen Storage Fees ") equal $10.00 per vehicle per day. Owner has the right to charge citizens higher storage fees for Release Vehicles and Contractor will collect such fees along with other citizen fees set by Owner, such as tow charges, administrative charges, court processing fees, etc. ( "Citizen Payments "). (5) Net Proceeds. "Owner's Net Proceeds" shall mean the amount of the Winning Bid plus Citizen Payments (if any) paid to Owner after deduction and payment of Contractor Commission, Tow Fees (if any), Owner Storage Fees, Citizen Storage Fees, and any other fees for ancillary services requested by Owner, such as title fees, decal removal, etc. Platinum Service. Owner will pay Contractor a "Contractor Commission" and "Tow Fees" as described below. Note: There are no storage fees for Platinum accounts. (1) Contractor Commission. Same as 5c(1). (2) Tow Fees. Same as 5c(2). (3) Buyer Fees. Same as 5c(3). (4) Net Proceeds. Same as 5c(5) 6. Payment Terms. Once a month, Contractor will remit to Owner the Owner's Net Proceeds arising from completed sales and Services rendered during the prior month. Sales are deemed completed when all items comprising a line item on the original manifest or other list of Property are sold. With each payment of Owner's Net Proceeds, Contractor will make available to Owner, online, a report setting forth the following information for the immediately preceding month: a. Completed sales during the prior month, including the total amount of related Proceeds collected, Citizen Remittances (if any), Contractor Commissions, the Owner and Contractor share of Processing Costs, Tow Fees (if any), Owner and Citizen Storage fees (if any), any applicable Title Fees and /or Fuel Surcharges, and Owner's Net Proceeds; b. Other dispositions of Property during the month; and c. The Property, if any, inventoried by Contractor at end of month. 7. Contractor Obligations. With respect to Contractor's delivery of Services: a. Contractor will exercise due care in the handling and storage of Property; b. Contractor shall keep Property free of liens, security interests, and encumbrances, and shall pay when due all fees and charges with respect to the Property; c. Contractor shall sign and deliver to Owner any UCC -1 financing statements or other documents reasonably requested by Owner; d. Contractor shall obtain and maintain insurance in an amount (determined by Contractor) not less than the replacement value of Property in its possession. The insurance will cover the Property against fire, theft, and extended coverage risks ordinarily included in similar policies. Contractor shall give Owner a certificate or a copy of each of the above upon Owner's request. e. Contractor agrees, in order to help Owner comply with local public notification statutes, if any, as well as to help Owner achieve higher Winning Bids, to allow Owner to place one or more clickable links (the "Links ") from one or more Owner websites to www.PropertyRoom.com or other websites Contractor uses for sale of Owner items. Contractor agrees to supply technical requirements for Links to Owner. 8. Owner Obligations. While this Agreement is not exclusive and has no minimum requirements, Owner will use reasonable efforts to provide Contractor such Property as becomes available for sale. Owner will complete paperwork reasonably necessary to convey custodial possession of Property PropertyRoom.com Page 15 of 7 PropertyRoom.com Property Disposition Service Agreement items to Contractor, including a written manifest or list that describes the items of Property in sufficient detail for identification. Owner agrees it will not knowingly provide Property that is illegal or hazardous or infringes the intellectual property rights of any third party ( "Prohibited Property "), including but not limited to explosives, firearms, counterfeit or unauthorized copyrighted material ( "knock- offs "), poisons or pharmaceuticals. In the event Contractor determines in good faith that any Property consists of Prohibited Property, Contractor shall have the right to immediately suspend or cancel (even if completed) any auction or disposal of such Property and may refuse to sell, offer to sell or otherwise dispose of such Property. To the extent requested by Contractor, Owner will provide reasonable assistance in determining whether such Property in fact consists of Prohibited Property. In the event any Buyer asserts a claim that any Property consists of Prohibited Property and Contractor determines in good faith that such claim is reasonably likely to be determined to be correct, Contractor may, in its discretion, accept the return of such Property and refund the Sales Price for such Property to Buyer, in which event Contractor may then destroy such Property or return such Property to Owner and such refunded Sales Price shall be deducted from future remittances of Owner's Net Proceeds made by Contractor. 9. Restrictions on Bidding. Contractor and its employees and agents may not directly or indirectly bid for or purchase auctioned Property on Contractor websites. 10. Representations and Warranties of Owner. Owner hereby represents warrants and covenants as follows (the "Conditions Precedent "): a. Property delivered to Contractor is available for sale to the general public without any restrictions or conditions whatever and does not consist of Prohibited Property; and b. Owner has taken necessary actions for Owner to auction the Property or to transfer title to the Property to Buyers. 11. Books and Records. Contractor will keep complete and accurate books of account, records, and other documents with respect to the Agreement ( "Books and Records ") for at least 3 years following Agreement expiration or termination. Upon reasonable notice, Books and Records will be available for inspection by Owner, at Owner's expense, at the location where Books and Records are regularly maintained, during normal business hours. 12. Assignment. The Agreement may not be assigned, in whole or in part, by either of the parties without the prior written consent of the other party (which consent may not be unreasonably withheld or delayed). Notwithstanding the foregoing, an assignment of the Agreement by either party to any subsidiary or affiliate or a third party acquisition of all or substantially all of the assets of such party will not require the consent of the other party, so long as such subsidiary, affiliate or acquiring entity assumes all of such party's obligations under the Agreement. No delegation by Contractor of any of its duties hereunder will be deemed an assignment of the Agreement, nor will any changes in control or any assignment by operation of law by either party. Subject to the restrictions contained in this section, the terms and conditions of the Agreement will bind and inure to the benefit of each of the respective successors and assigns of the parties hereto. 13. Notices. Any notice or other communication given under the Agreement will be in writing and delivered by hand, sent by facsimile (provided acknowledgment of receipt thereof is delivered to the sender), sent by certified, registered mail or sent by any nationally recognized overnight courier service to the addresses provided on the signature page of the Agreement. The parties may, from time to time and at any time, change their respective addresses and each will have the right to specify as its address any other address by at least 10 days written notice to the other party. 14. Interpretation. Whenever possible, each provision of the Agreement will be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of the Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent PropertyRoom.com Page 16 of 7 PropertyRoom.com Property Disposition Service Agreement of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of the Agreement. The Agreement headings are inserted for convenience of reference only and shall not constitute a part hereof. 15. Governing Law. The internal law, and not the law of conflicts, of the state in which Owner is located will govern all questions concerning construction, validity and interpretation of the Agreement and the performance of the obligations imposed by the Agreement. The proper venue for any proceeding at law or in equity will be the state and county in which the Owner is located, and the parties waive any right to object to the venue. 16. Further Assurances. Contractor and Owner will each sign such other documents and take such actions as the other may reasonably request in order to effect the relationships, Services and activities contemplated by the Agreement and to account for and document those activities. 17. Relationship of the Parties. No representations or assertions will be made or actions taken by either party that could imply or establish any joint venture, partnership, employment or trust relationship between the parties with respect to the subject matter of the Agreement. Except as expressly provided in the Agreement, neither party will have any authority or power whatsoever to enter into any agreement, contract or commitment on behalf of the other, or to create any liability or obligation whatsoever on behalf of the other, to any person or entity. Whenever Contractor is given discretion in the Agreement, Contractor may exercise that discretion solely in any manner Contractor deems appropriate. Contractor shall not be liable to Owner for any Losses incurred by reason of any act or omission performed or omitted by Contractor in good faith on behalf of the Owner and in a manner reasonably believed to be within the scope of authority conferred on Contractor by the Agreement, except that Contractor shall be liable for any such Losses incurred by reason of Contractor's fraud, gross negligence or willful misconduct. 18. Force Majeure. Neither party will be liable for any failure of or delay in performance of the Agreement for the period that such failure or delay is due to acts of God, public enemy, war, strikes or labor disputes, or any other cause beyond the parties' reasonable control (each a "Force Majeure "), it being understood that lack of financial resources will not to be deemed a cause beyond a party's control. Each party will notify the other party promptly of any Force Majeure occurrence and carry out the Agreement as promptly as practicable after such Force Majeure is terminated. The existence of any Force Majeure will not extend the term of the Agreement. This Agreement, including all of the terms and conditions set forth above as well any addendum prepared by the Owner (indicate inclusion of Owner Addendum by checking here: ) comprises the entire Agreement between the Parties. This Agreement cannot be modified except in writing by the duly authorized representatives of both parties. Signor Name: John C. Kessel Signor Title: City Manager Signature: Date: PropertyRoom.com Page 17 of 7 Agenda No. 6 CITY COUNCIL MEMORANDUM City Council Meeting: September 16, 2014 Department: City Manager Subject: Resolution No. 14 -R -81 - Schertz Seguin Local Government Corporation Board Appointments A position on the board of directors (Place D3) of the Schertz Seguin Local Government Corporation ( "SSLGC ") became available upon Larry Dublin entering into eternal life. The City of Schertz is responsible for appointing a new board member to fill this vacancy. It is the staff's recommendation to appoint Ken Greenwald to the SSLGC board of directors for Place D3, an unexpired term commencing September 16, 2014 and ending December 31, 2016. Mr. Greenwald currently sits on the SSLGC board in Place Dl and has a long tenure and corporate knowledge of SSLGC. Staff also recommends consideration be given to the appointment of Steve White to fill the remaining term of Ken Greenwald (Place D1) commencing September 16, 2014 and ending December 31, 2014. FISCAL IMPACT None 119 00304 104 1 010117_%11 [I7►1 Approve Resolution No. 14 -R -81 ATTACHMENT(S) Resolution No. 14 -R -81 for consideration Board of Directors Terms RESOLUTION NO. 14 -R -81 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, APPOINTING KEN GREENWALD TO THE BOARD OF DIRECTORS PLACE D3 AND APPOINTING STEVE WHITE TO THE BOARD OF DIRECTORS OF PLACE D1 OF THE SCHERTZ SEGUIN LOCAL GOVERNMENT CORPORATION, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the City appoint Ken Greenwald to serve on the Schertz Seguin Local Government Corporation ( "SSLGC ") Board of Directors Place D3 for the unexpired term commencing on September 16, 2014 and ending on December 31, 2016 (the "Term "); and WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the City appoint Steve White to serve on the Schertz Seguin Local Government Corporation ( "SSLGC ") Board of Directors Place D1 for the unexpired term commencing on September 16, 2014 and ending on December 31, 2014 (the "Term "); and WHEREAS, the City Council has determined that it is in the best interest of the City to move Ken Greenwald from his current appointment from SSLGC Board of Directors Place Dl into the vacant position in the SSLGC Board of Directors Place D3 for the Term; and WHEREAS, the City Council has determined that it is in the best interest of the City to appoint Steve White to the SSLGC Board of Directors Place Dl for the Term; and BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS II RAN Section 1. The City Council hereby appoints Ken Greenwald and Steve White to serve on the SSLGC Board of Directors for their respective recommended Term. 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. 50457908.1 1 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 16th day of September, 2014. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor Brenda Dennis, City Secretary (CITY SEAL) 50457908.1 2 S 14ER Z /SEGUIN Item 613 LOCAL GOVERNMENT CORPORATION BOARD OF DIRECTORS TERMS DIRECTORS January 1, 2001 Place 131 Name S dne Bauer DIRECTORS Term Length 5 Yeats Dates ofTerms 01 -01 -2000 through 12 -31 -2004 D2 January 1, 1999 Se uin Place Name D3 Appointment Term Length Dates of Terms Dl S'dnc Bauer Jim Wolverton Seguin 1 Year 01 -01 -1999 through 12 -31 -1999 D2 Ramon Cook Iseguin Schertz 2Years 01 -01 -1999 through 12 -31 -2000 23 Robin Dw er sepi. 3 Years 01- 01-1999 throw h 12 -31 -2001 D4 Jim Wolverton Schertz 4 Years 01 -01 -1999 throu h 12 -31 -2002 DS I Gloria Rivera ISeguin 5 Years O1 -01 -1999 tl xou h 12 -31 -2003 DIRECTORS January 1, 2001 Place 131 Name S dne Bauer DIRECTORS Term Length 5 Yeats Dates ofTerms 01 -01 -2000 through 12 -31 -2004 D2 January 1, 2000 Se uin Place Name D3 Appointment Term Length Dates ofTenns D1 Sydney Bauer Jim Wolverton Schettz 5 Years 01 -01 -2000 throng h 12-31 -2004 D2 Ramon Cook Iseguin Schertz 2 Years 01 -01-1999 throu h 12-31-20 D3 Robin Daer Segum 3 Years 01 -01 -1999 throw h 12 -31 -2001 D4 Jim 'Wolverton Schertz 4 Years 01 -01 -1999 through 12- 31.2002 D5 IGIoria Rivera Iseguin 5 Yars 01 -01 -1999 through 12 -31 -2003 DIRECTORS January 1, 2001 Place 131 Name S dne Bauer Appointment Schertz Term Length 5 Yeats Dates ofTerms 01 -01 -2000 through 12 -31 -2004 D2 Ramon Cook Se uin 5 Years 01 -2001 thrott h 12-31 -20DS D3 Robin Dwyer Seguin 3 Years throu h 12 -31 -2001 D4 Jim Wolverton Schertz 4 Years throe h 12 -31 -2002 DS IGIoria Rivera Iseguin 15 Years 01 -01 -1999 throw h 12 -31 -2003 11 Ji. ,1'6 W9t2 {1141(111 AM -,,t i * w. DIRECTORS January 1, 2011 Place Name Appointment Term Length Dates of Terms Dl Ken Greenwald Schertz 5 Years 01 -01 -2010 through 12 -31 -2014 D3 Robin Dwyer SeRuin 5 Years 01 -01 -2007 through 12 -31 -2011 D4 Him Wolverton ISchertz 15 Years 01 -01 -2008 through 12 -31 -2012 D5 Andrew Koenig Isegui. 5 Years 07 -21 -2009 through 12 -31 -2013 Position D2- Patricia Ranvrez- Resigned January= 2011 due to mode out of the City of Sci ertz, I-Ter 5 y'r term expired 12.31 -2010, however she continued to Serve far January 2011 until her resignation. She served as SSLGC Board mernber for die January 13, 2011 SSLGC Board meeting, It vas Seguin s turn to fill this position and Seguin appointed KeMy Koehler to fill the vacancy left by \ls, rumurez, The 5 year term rulers from 01 -01 -2011 through 12 -31 -2015. h1r. Koehler would complete Ms. Rarnirers 5 pr tcon, from 02 -18 -2011 through 12 -31- 2015, Uaw. /'d'une Y'nni d: 4/9 {2014 M41 AN! j. SCHERTZ/SEGUIN 10.41AM,,f