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06-25-2019 Agenda with backupMEETING AGENDA City Council REGULAR SESSION CITY COUNCIL June 25, 2019 SCHERTZ, TEXAS 78154 CITY OF SCHERTZ CORE VALUES Do the right thing Do the best you can Treat others the way you want to be treated Work cooperatively s a team Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Gutierrez) Presentations • Proclamation for National Park and Recreational Month. • Presentation - The 2019 . Spring /Summer Parks Program Guide was given an Award of honor (3rd place) from the Texas Association Municipal Information Officers (TAMIO). City Events and Announcements • Announcements of upcoming City Events (B. James /S. Gonzalez) • Announcements and recognitions by the City Manager (M. Browne) • Announcements and recognitions by the Mayor (M. Carpenter) 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. June 25, 2019 City Council Agenda Page 1 Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and /or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered. 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. j. Minutes — Consideration and/or action regarding the approval of the minutes of the meeting of June 11, 2019. (B. Dennis) Z Appointments to the various City Boards, Commissions and Committees - Consideration and /or action regarding appointments to the Building and Standards Commission and to the Economic Development Corporation Board. (Mayor /Council /B. Dennis) 3 Resolution No.19 -R -71 - Consideration and/or action approving a resolution by the City Council of the City of Schertz, Texas authorizing EMS debt revenue adjustments, Utility Billing debt revenue adjustments and Schertz Magazine debt revenue adjustments for certain inactive outstanding receivables and other matters in connection therewith. (.B. James /J. Walters) 4 Resolution No. 19 -R -79 - Consideration and/or action approving a resolution by the City Council of the City of Schertz, Texas authorizing purchases up to $250,000 with HydroPro Solutions for water meters and other matters in connection therewith. (B. James /J. Walters) 5 Resolution No. 19 -R -74 - Consideration and/or action approving a resolution by the City Council of the City of Schertz, Texas authorizing an amendment to the Schertz Main Street Local Flavor Economic Development Program and other matters in connection therewith. (B. James) (, Resolution No. 19 -R -75 - Consideration and /or action approving a resolution by the City Council of the City of Schertz, Texas on a request for a Historical Incentive Program for the Schertz Main Street Local Flavor Economic Development Grant for 533 Main Street and related matters in connection therewith. (B. James) 7 Resolution 19 -R -76- Consideration and/or action approving a resolution by the City Council . of the City of Schertz, Texas authorizing the Schertz Seguin Local Government Corporation (SSLGC) Budget Amendment for Fiscal Year 2018 -19 in the amount of $3,000,000 as a transfer to the SSLGC Repair / Replacement Fund and in the amount of $500,000 as a transfer to the Rate Stabilization fund and other matters in connection therewith. (C. Kelm /A. Beard) June 25, 2019 City Council Agenda Page 2 g Resolution No. 19 -R -77 - Consideration and /or action approving a resolution by the City Council of the City of Schertz, Texas approving the Schertz /Seguin Local Government Corporation Fiscal Year 2019 -2020 Annual Budget and other matters in connection therewith. (SSLGC Resolution #SSLGC R19 -04) (C. Kelm /A. Beard) 9. Resolution No. 19 -R -78 - Consideration and /or action approving a resolution by the City Council of the City of Schertz, Texas approving the Schertz /Seguin local Government Corporation Fiscal. Year 2019 -2020 Water Rates and other matters in connection therewith. (SSLGC Resolution #SSLGC R19 -05) (C.Kelm /A. Beard) Discussion and Action Items 10. Resolution No. 19 -R -80 - Consideration and/or action approving a resolution by the City Council of the City of Schertz, Texas authorizing a program and expenditures, Project E -052, to provide a possible incentive of up to $200,000 for a project related to the creation or retention of up to 87 primary jobs. (M. Browne/K. Kinateder) 11 Resolution No. 19 -R -72 - Consideration and /or action approving a resolution by the City Council of the City of Schertz, Texas, requesting assistance from the Texas Department of Transportation in the form of a planning study for intersection improvements including an overpass structure on FM 3009 across the Union Pacific railroad tracks and FM 78 in Schertz and other matters in connection therewith. (B. James /K. Woodlee) Roll Call Vote Confirmation Closed Session 12. City Council will meet in closed session under Section 551.087 of the Texas Government Code, Deliberation Regarding Economic Development Negotiations; Closed Meeting. The governmental body is not required to conduct an open meeting (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect. • Project E -058 Reconvene into Regular Session 1.2a. Take any action based on discussion held in closed session under Agenda Item 12. Roll Call Vote Confirmation June 25, 2019 City Council Agenda Page 3 Requests and Announcements • Announcements by the City Manager. • Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. • 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 Information available in City Council Packets - NO DISCUSSION TO OCCUR 13. Pickrell Park Basketball Goals Update 14 Dedicated Trail Funding Request from the Parks & Recreation Advisory Board 15 Update on Planning and Zoning Commission evaluation of PIT Pads and Short Term Rentals Adjournment 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 21 ST DAY OF JUNE 2019 AT 1:30 P.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE. MR4961316MUMM 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 2019. This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. ff 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 closed 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. Closed Sessions Authorized: This agenda has been reviewed and approved by the City's legal counsel and the presence of any subject in any Closed Session portion of the agenda constitutes a June 25, 2019 City Council Agenda Page 4 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. COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS Mayor Carpenter Councilmember Scagliola — Place 5 Main Street Committee Interview Committee for Boards and Commissions - Alternate Hal Baldwin Scholarship Committee Schertz- Seguin Local Government Corporation. Cibolo Valley Local Government Corporation - Alternate Councilmember Davis— Place 1. Councilmember Gutierrez — Place 2 Audit Committee Audit Committee Schertz Housing Authority Board Investment Advisory Committee Interview Committee for Boards and Interview Committee for Boards and Commissions Commissions Main Street Committee — Chair TIRZ II Board Councilmember Larson — Place 3 Councilmember Edwards — Place 4 Main Street Committee — Vice Chair Interview Committee for Boards and Commissions Cibolo Valley Local Government Corporation Main Street Committee Councilmember Heyward — Place 6 Councilmember Brown — Place 7 — Schertz Animal Services Advisory Audit Committee Commission Schertz- Seguin Local. Government Corporation - Investment Advisory Committee Alternate June 25, 2019 City Council Agenda Page 5 ei Olum City Council June 25, 2019 Meeting: Agenda No. 1. Department: City Secretary Subject: Minutes — Consideration and /or action regarding the approval of the minutes of the meeting of June 11, 2019. (B. Dennis) The City Council held a Regular City Council meeting on June 1.1, 2019. FISCAL IMPACT None Staff recommends Council approve the minutes of the regular meeting of June 11, 2019. Attachments 06/11/2019 minutes DRAFT MINUTES REGULAR MEETING June 11, 2019 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on June 11, 2019, 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: Present: Mayor Michael Carpenter; Mayor Pro -Tem Allison Heyward; Councilmember Mark Davis; Councilmember Ralph Gutierrez; Councilmember Cedric Edwards; Councilmember David Scagliola; Councilmember Tim Brown Absent: Councilmember Scott Larson City City Manager Dr. Mark Browne; Assistant City Manager Brian James; Staff. Assistant City Manager Charles Kelm; City Attorney Megan Santee; Deputy City Secretary Gayle Wilkinson Call to Order — City Council Regular Session Mayor Carpenter called the regular meeting to order at 6:01 p.m. Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Davis) Employee Recognition • Presentation by EMS recognizing the team work of PD Communication Officers in locating a suicidal patient. Their work is credited with saving the life of this patient. (M. Hansen/J. Mabbitt) EMS Director Jason Mabbit gave a brief introduction, thanked Dispatch for their hard work and introduced Paramedic Dave Yergin who thanked our dispatchers for their help in saving the life of a suicidal man. Dispatch tracked down the location of the suicidal man with very little information which resulted in saving his life. Communications Manager Kim Harris recognized the night shift involved with the call. They are as follows: Supervisor Monica Kuehn, Dispatcher Lisa Marie Cimins, Dispatcher Sarah Morin and Dispatcher Matt Llanez. Dispatch Supervisor Monica Kuehn spoke about the event and expressed her thankfulness for the positive outcome. City Events and Announcements • Announcements of upcoming City Events (B. James /S. Gonzalez) Assistant City Manager Brian James announced the following: Wednesday, June 12 Schertz Blood Drive 8:00 am - noon Community Center Parking Lot Call X 1410 to schedule your appointment. Thursday, June 13 Northeast Partnership Meeting 11:30 am Olympia Hills Golf and Conference Center, Universal City Tuesday, June 18 Chamber Luncheon 11:30 am Civic Center Friday, June 21 Music in the Park Featuring Marcy Grace 7:00 pm -10:00 pm Pickrell Park Saturday, June 22 Tee -Off for the Library 10:00 am — 6:00 pm Schertz Public Library 4th Annual mini -golf fundraiser, $5.00 cash per person To raise money to purchase noise reducing panels in the Library foyer. Star Party 8:00 pm -11:00 pm Crescent Bend Nature Park -12805 W. Schaefer Road Telescopes for viewing provided by the San Antonio Astronomical Association. Contact the Parks Department for more information X1850 Sunday, June 23 B irding Walk 7:30 am-10:30 am Crescent Bend Nature Park -12805 W. Schaefer Road Bring your binoculars, cameras, water, and snacks. Tuesday, June 25 City Council Meeting 6:00 pm Council Chambers N • Announcements and recognitions by the City Manager (M. Browne) None at this time. . Announcements and recognitions by the Mayor (M. Carpenter) None at this time. 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. Mayor Carpenter recognized the following: D.J. Thompson - P.O. Box 52, Cibolo, Texas - Mrs. Thompson acknowledged and thanked those from Council for coming to the Northcliffe meeting referencing their Golf Course on June 8th 2019. She also mentioned a letter she brought with her acknowledging a Councilmember. She asked Council to contact the owner of the Golf Course in their behalf with an option recommended by the Northcliffe residents to save the Golf Course. 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. The following Consent items were read into record: 1. Minutes — Consideration and /or action regarding the approval of the minutes of the meeting of June 4, 2019. (B. Dennis) 3 2. Resolution No. 19 -R -69 — Consideration and /or action by the City Council of the City of Schertz, Texas authorizing the approval of the Bexar Metro 911 budget for fiscal year 2020. (M. Browne /C. Kelm) 3. Resolution No. 19 -R -70 - Consideration and /or action authorizing a resolution by the City Council of Schertz for purchases up to $95,000 with WatchGuard Video for vehicle and officer recording systems. (C. Kelm/M. Hansen) Moved by Councilmember Cedric Edwards, seconded by Councilmember Mark Davis to approve Consent Items 1 -3. AYE: Mayor Pro -Tem Allison Heyward, Councilmember Mark Davis, Councilmember Ralph Gutierrez, Councilmember Cedric Edwards, Councilmember David Scagliola, Councilmember Tim Brown Passed Discussion and Action Items The following item was read into record: 4. Resolution No. 19 -R -49 — Consideration and /or action approving a resolution authorizing the City Manager to enter into an agreement with Management Advisory Group International, Inc. to conduct a Classification and Compensation Study and other matters in connection therewith. (C. Kelm/J. Kurz) Human Resources & Purchasing Director Jessica Kurz gave an overview of the Management Advisory Group International, Inc., their process of Classification and Compensation Study and answered questions from Council. Moved by Councilmember Ralph Gutierrez, seconded by Councilmember Mark Davis to approve Resolution No. 19 -R -49. AYE: Mayor Pro -Tem Allison Heyward, Councilmember Ralph Gutierrez, Councilmember Cedric Edwards, Councilmember David Scagliola, Councilmember Tim Brown Passed The following item was read into record: 0 5. Resolution No. 19 -R -48 - Consideration and /or action approving a resolution authorizing the City Manager to enter into an agreement with Matrix Consulting Group to conduct a Staffing Study and other matters in connection therewith. (C. Kelm /J. Kurz) Human Resources Director Jessica Kurz gave a summary on the agreement with Matrix Consulting Group, their methodology and introduced Alan Pennington to answer questions from Council. Moved by Councilmember Mark Davis, seconded by Councilmember Tim Brown to approve Resolution No. 19 -R -48. AYE: Mayor Pro -Tem Allison Heyward, Councilmember Mark Davis, Councilmember Ralph Gutierrez, Councilmember Cedric Edwards, Councilmember David Scagliola, Councilmember Tim Brown Passed Roll Call Vote Confirmation Deputy City Secretary Gayle Wilkinson provided the roll call. Workshop 6. Discussion regarding the Street Preservation and Maintenance Program Update. (B. James /J. Nowak) Engineer John Nowak presented a Power Point updating and discussing strategic planning for Street Preservation and Maintenance (SPAM). City Engineer Kathy Woodlee, Engineer John Nowak, and Assistant City Manager Brian James addressed questions from Council. Closed Session Mayor Carpenter went into closed session at 7:06 p.m. after introducing Megan Santee as our legal representative. 7. City Council will meet in Closed Session under Section 551.071, to seek advice of its attorney on legal matters, Section 551.072, for deliberations regarding real estate; to wit: discuss all groundwater leases executed by the Cibolo Valley Local Government Corporation for groundwater in Wilson County, Texas. Reconvene into Regular Session Mayor Carpenter reconvened into regular session at 7:38 p.m. 7a. Take any action based on discussions held in closed session under agenda item 7. No action taken at this time. Requests and Announcements • Announcements by the City Manager. City Manager Dr. Browne commended the Fire Department for their Fire Academy for Middle Schoolers and High Schoolers. Dr. Browne also mentioned next week will be the Jr. Police Academy. • Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. None at this time. • 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 Mayor Pro -Tem Heyward attended the following events: • JBSA P -14 Meeting • Newly Elected Workshop at AGOG • Movie in the Park - Aquaman Councilmember Gutierrez attended the following events: • Newly Elected Workshop at ACOG • Movie in the Park - Aquaman Adjournment As there was no further business, Mayor Carpenter adjourned the meeting at 7:41. 6 ATTEST: Gayle Wilkinson, Deputy City Secretary Michael R. Carpenter, Mayor Agenda No. 2. ei IRIUM City Council June 25, 2019 Meeting: Department: City Secretary Subject: Appointments to the various City Boards, Commissions and Committees - Consideration and /or action regarding appointments to the Building and Standards Commission and to the Economic Development Corporation Board. (Mayor /Council /B. Dennis) BACKGROUND On June 10, 2019, the Interview Committee met and conducted interviews for the vacancies which exist on the Building and Standards Commission and the Economic Development Corporation Board. GOAL Re- populate /re- appoint vacancies on the Building and Standards Commission and the Economic Development Corporation Board. COMMUNITY BENEFIT Involving the City of Schertz Citizens with their City. Based on the recommendations by the Interview Committee, staff recommends Council approve the appointment of Melissa Villarreal to the Building and Standards Commission as an alternate member and the appointment of Jesse Carrasco to the Economic Development Corporation Board as a regular member. FISCAL IMPACT N/A RECOMMENDATION Based on the recommendations by the Interview Committee, staff recommends Council approve the appointments as stated above. ei IRIUM City Council June 25, 2019 Meeting: Department: Finance Agenda No. 3. Subject: Resolution No.19 -1t -71 - Consideration and/or action approving a resolution by the City Council of the City of Schertz, Texas authorizing EMS debt revenue adjustments, Utility Billing debt revenue adjustments and Schertz Magazine debt revenue adjustments for certain inactive outstanding receivables and other matters in connection therewith. (B. James /J. Walters) In the EMS, Utility Billing, and Magazine functions, services are provided to customers up front and billing is settled later. Since services are provided before receiving payment, inevitably the City has customers that do not pay for the services provided. When this occurs, staff reaches out to the customer to try to collect the outstanding payment including follow up notices and phone calls to try and reach out to the customer to remind them of the outstanding balance and encourage payment. However, the longer the customer account goes without a payment the less likely that any payment will be received. Once a customer account reaches 180 days without payment, Staff brings those accounts to the City Council to be "written off'. This process is an accounting procedure following the Generally Accepted Accounted Principles (GAAP), which lays the framework of accounting practices in the U.S. This designation means it is unlikely those outstanding balances will ever be collected. This leads to an accounting adjustment on the City's Financial Statements to accurately show how much is still outstanding and is reasonable to expect collection. If a customer's account has been written off, this does not erase or forgive that debt. The city can and does collect some portion of the amount owed by those customers. This can be through the debt collection agency used by EMS or if the customer returns to the City and requests new services through the Magazine or Utility Billing. The resolution authorizes the debt for these areas that is more than 180 days outstanding as of June 01, 2019 to be written off. These write -offs come before council quarterly and last came before council on March 26, 2019. Previous Write o February 2017: June 2017: September 2017: . January 2018: March 2018: June 2018: September 2018: December 2018: March 2019: Ff Amount: $621,1.38.97 $544,944.16 $510,51.6.01 $510,637.79 $433,427.15 $439,627.14 $521,281.82 $727,307.39 $564,227.77 GOAL To approve write -offs of bad debt in accordance with the standards laid out by GAAP. COMMUNITY BENEFIT This will show the City's Financial Statements according to national standards and City policy. SUMMARY OF RECOMMENDED ACTION Approve Resolution 19 -R -71 to write off receivables that are older than 180 days. 10 0WR 01►I I WXOM 11 This accounting adjustment will not affect the City's Budget or financial standing. The amount written . off is estimated during the budget process and is accounted for in the revenue estimations and the bad debt expense accounts. The action taken tonight will reduce the amount shown as owed to the City by $580,155.10 and set it equal to the amount seen as still reasonably collectible. The breakdown is as follows: EMS - $563,110.56 Utility Billing - $17,044.54 Magazine - $0.00 RECOMMENDATION Staff recommends Council approve Resolution No 19 -R -71 Attachments Resolution 1.9 -R -71 RESOLUTION NO. 19 -R -71 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING EMS DEBT REVENUE ADJUSTMENTS, UTILITY BILLING DEBT REVENUE ADJUSTMENTS AND SCHERTZ MAGAZINE DEBT REVENUE ADJUSTMENTS FOR CERTAIN INACTIVE OUTSTANDING RECEIVABLES AND OTHER MATTERS IN CONNECTION THEREWITH. WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the City maintains quarterly debt revenue adjustments for inactive outstanding accounts; and WHEREAS, the City Council has determined that it is in the best interest of the City that all inactive outstanding accounts after 180 days nonpayment will be sent to City Council for consideration for write offs. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the write off in the amount and distribution of accounts below: Function I Amount EMS $563,110.56 Utility Billing $17,044.54 Magazine $0.00 Total $580,155.10 Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and finding of the City Council. Section 3. All resolutions or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 25th day of June 2019. CITY OF SCHERTZ, TEXAS Mayor Michael R. Carpenter City Secretary, Brenda Dennis (CITY SEAL) ei IRIUM City Council June 25, 2019 Meeting: Department: Finance Agenda No. 4. Subject: Resolution No. 19-R-79 - Consideration and/or action approving a resolution by the City Council of the City of Schertz, Texas authorizing purchases up to $250,000 with HydroPro Solutions for water meters and other matters in connection therewith. (B. James /J. Walters) BACKGROUND Hydropro Solutions is the provider of water meters for the City fo Schertz. Due to the proprietary technology, they are the only vendor who can supply the city with meters compatible with the current system. In the past four (4) years, the City has purchased between $90,000 and $150,000 in new meters per year. Due to the meter change out and upgrade project, additional meters will need to be purchased in the current fiscal year. The contract amount for the new meters was taken from a count of active meters at the beginning of 2018. This amount did not include all the meters that were installed afterward or any inactive meters that didn't show up on the report. Hydropro and staff estimate an additional $100,000, or 420 residential meters, will need to be purchased. Additional meters will also need to be purchased from now until the end of the fiscal year for new development. GOAL To obtain authorization from City Council to purchase water meters in an amount not to exceed $250,000. The amount should finish the meter change outs and provide meters for new development. C� The City will be able to track water usage using one citywide system for existing and new accounts. SUMMARY OF RECOMMENDED ACTION Staff recommends that Council authorizes the purchase of water meters not to exceed $250,000 for fiscal year 2018 -19. FISCAL IMPACT The existing budget for water meters is $125,000. Staff is proposing to use existing budgeted funds from water maintenance and contingency for the additional $125,000. RECOMMENDATION Approval of Resolution Attachments Resolution 19 -R -79 RESOLUTION NO. 19 -R -79 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING PURCHASES WITH HYDROPRO SOLUTIONS OF UP TO $250,000.00 AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Schertz (the "City ") has budgeted expenditures for water meters, new and replacements; and WHEREAS, City staff has determined that meters HydroPro Solutions are the only ones compatible with our metering system; and WHEREAS, City staff are requesting to approve an amount up to $250,000 for annual expenditures for HydroPro Solutions in the fiscal year 2018 -2019. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes expenditures up to $250,000 for FY 2018- 2019 for HydroPro Solutions for water meters. 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 25th day of June 2019. ATTEST: Brenda Dennis, City Secretary (CITY SEAL) CITY OF SCHERTZ, TEXAS -2- Michael R. Carpenter, Mayor e' City Council June 25, 2019 Meeting: Department: Executive Team Agenda No. 5. I M40111LIM I ELVA I 010A Subject: Resolution No. 19-R-74 - Consideration and/or action approving a resolution by the City Council of the City of Schertz, Texas authorizing an amendment to the Schertz Main Street Local Flavor Economic Development Program and other matters in connection therewith. (B. James) BACKGROUND On December 11, 2018, the City Council approved Resolution 18-R-152, creating the Schertz Main Street Local Flavor Economic Development Program. The Schertz Main Street Local Flavor Economic Development Program is intended to encourage and expansion and attract small businesses that create local charm and help develop a sense of place in and around Main Street, promote commercial development, stabilize and improve property values, foster civic pride, and protect and enhance the attractiveness of the Main Street area to residents and visitors. The Schertz Main Street Local Flavor Economic Development Program will enhance other city efforts to improve, beautify, and promote economic development in the Main Street area. Funding for the Schertz Main Street Local Flavor Economic Development Program is provided annually through the City's General Fund. Funds are made available on a first -come- first -serve rst- serve basis. The program, also stipulated that grants will not be provided for work already completed or which has begun prior to the approval of the grant application. Funds are provided on a 50150 matching basis, in-kind contributions may be counted toward the matching requirement. The program also stipulated that no more than one of the four grant types (Signage Improvement Grant, Facade Improvement Grant, Site Improvement Grant and Capital Equipment Grant) may be received per property per year. All I improvements must conform to City regulations and building codes and receive advance approval by the City Council. All grants are paid out upon completion of the project. Staff is recommending a few changes to the program that was approved in December. The first is to remove the restriction that only one type of grant may be received per property per year. The maximum amount allowed for the grants varies: the signage grant is capped at $5,000, the capital equipment grant is capped at $2,500 and the Facade Improvement Grant and Site Improvement Grant are both capped at $20,000. In order to allow greater flexibility, but still cap the amount that can be awarded per grant per year, staff is recommending limiting the amount that can be awarded among all four grants to $20,000 per year. This will also allow a property owner to apply for a second grant of the same type that has already been awarded as long as don't exceed the annual cap for that grant per year as well as the $20,000 total cap. Another change is to allow projects to be eligible for a grant as long as they contact staff about the grant prior to commencing the work and in the case of a repair or replacement of capital equipment that has broken within 14 days of the work commending. This would allow the owner of a property that has to replace a piece of equipment over the weekend to still apply for the grant. Finally, grant payments can be paid in phases - allowing an owner to use grant monies to help cash flow the project. GOAL To amend the local flavor grant program to encourage more property owners in the Main Street corridor to utilize the program. COMMUNITY BENEFIT The program was created after the City Council heard from residents, business owners and community organizations. As has been the past practice new programs or ordinances are monitored and amended to increase their effectiveness. SUMMARY OF RECOMMENDED ACTION Staff recommends approval of the resolution amending the Schertz Local Flavor Main Street Local Flavor Economic Development Program. FISCAL IMPACT The fiscal impact will be limited as these changes do not increase the total amount a property can receive in a year. RECOMMENDATION Staff recommends approval of Resolution 19 -R -74. Attachments Resolution 19 -R -74 Amended Grant Program RESOLUTION NO. 19 -R -74 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN AMENDMENT TO THE SCHERTZ MAIN STREET LOCAL FLAVOR ECONOMIC DEVELOPMENT PROGRAM; AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, Section 380.001 of the Texas Local Government Code, as amended, allows the governing body of a municipality to establish and provide for the administration of one or more programs to promote state and local economic development and to stimulate business and commercial activity in the municipality; and WHEREAS, the Schertz Main Street Local Flavor Economic Development Program is intended to encourage and expansion and attract small businesses that create local charm and help develop a sense of place in and around Main Street, promote commercial development, stabilize and improve property values, foster civic pride, and protect and enhance the attractiveness of the Main Street area to residents and visitors; and WHEREAS, funding for the Schertz Main Street Local Flavor Economic Development Program will be provided annually through the City's General Fund; and WHEREAS, the Schertz Main Street Local Flavor Economic Development Program will enhance other city efforts to improve, beautify, and promote economic development in the Main Street area. WHEREAS, changes are recommended to the program to improve its benefit to the community. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes amendments to the Schertz Main Street Local. Flavor Economic Development Program 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 25th day of June, 2019. CITY OF SCHERTZ, TEXAS Michael Carpenter, Mayor Brenda Dennis, City Secretary AMENDED SCHERTZ MAIN STREET LOCAL FLAVOR ECONOMIC DEVELOPMENT PROGRAM Schertz Main Street Local Flavor Economic Development Program The City of Schertz finds that promotion and enhancement of commercial activity along Main Street is necessary to promote the economic, cultural, and general welfare of the public. The area around Main Street in Schertz once served as the commercial and social hub of the community. The City seeks to improve the image of the area around Main Street through an inducement of public money to promote local economic development and to stimulate business and commercial activities in the City. The program is intended to: a) Encourage the attraction of small businesses that will create local chan-n and help develop a sense of place in and around Main Street; b) Promote commercial development; C) Stabilize and improve property values; d) Foster civic pride in the beauty and accomplishments of the past, and to promote the use of the historic structures for the culture, education, and general welfare of residents, and: e) Strengthen the economy of the city by protecting and enhancing the attractiveness of the Main Street area to residents and visitors, as well as provide support and stimulus to businesses. In order to facilitate the promotion and enhancement of commercial activity, the City of Schertz is offering grants that will serve to help new and existing businesses and properties within this area. The program will be administered by the City Manager and or his/her designee. Section 1.3 Eligibility Criteria All of the following eligibility criteria must be met: a) The business and property must be located along Main Street between Schertz Parkway and Aviation Boulevard. b) All taxes and government fees must be current on the property. C) The business and property owner has acquired and maintained all necessary rights, licenses, permits, and authority to carry on its business in the City of Schertz and will continue to use its best efforts to maintain all necessary rights, licenses, permits, and authority. mlaca= Funding for this program is provided annually through the City of Schertz General Fund in accordance with Chapter 380.001 of the Texas Local Government Code. The amount of money allocated each year shall be at the discretion of the City Council. Funds are made available on a first-come-first-serve basis. Grants will not be provided for work already completed unless it is a repair or replacement and for which the grant is applied for within 14 days of beginning the work or which has begun prior to submittal of the grant application. Funds are provided on a 50150 matching basis, in-kind contributions may be counted toward the matching requirement. No more than $20,000 in grants may be received per property per year. All improvements must conform to City regulations and building codes and receive approval by the City Council. All grants are paid out upon completion of the project or increments of the project. a) Signage Improvement Grant — grants are available for both new signs and the renovation of existing signs. Signage Improvement Grant recipients may receive up to $5,000 per property. b) Faqade Improvement Grant — grants are available for faqade improvements that help improve the curb appeal of the property. Qualifying faqade improvements include: painting, roof, windows, foundation, facade restoration including replacing windows, wall repairs, brick re-pointing, replacing and exposing transom windows; and improvements necessary to stabilize a structure. Facade Improvement Grants recipients may receive up to $20,000 per property. C) Site Improvement Grant — grants are available for site improvements that help add visual appeal and functional use of the property. Qualifying site improvements include: landscaping, exterior lighting, sidewalks and driveway improvements, parking lot improvements, and outdoor seating areas. Site Improvement Grant recipients may receive up to $20,000 per property. d) Capital Equipment Grant — grants are available for capital equipment. Qualifying capital equipment are durable items used to produce a good or service and has a life expectancy of more than five years. Capital Equipment Grant recipients may receive up to $2,500 per property. At the start of the fiscal year, the city will promote the amount of funding available. Applications will be received throughout the fiscal year, subject to the availability of funds. a) Property owner submit an application along with any required supporting documentation (i.e. drawings, total project cost estimate, photographs, contactor bids, tax certificates, etc.). Applications will be reviewed by the City Manager's Office for completeness. b) After submittal of a grant request, a preliminary site visit will be made by a representative of the City Manager's Office. C) City Council will decide which entities qualify for assistance based on the perceived value of their proposed projects to the City of Schertz, the compatibility of the proposed projects with the Main Street Area, and the cost effectiveness of the proposed project in relation to the proposed amount of the grant. d) The property owner and City will execute a Grant Agreement detailing the obligations of the grantee, the method and timing of reimbursement, and outlining the scope of work eligible for reimbursement. e) Work must be completed within one year from the date of execution of the Grant Agreement, however; the City Manager may grant an extension of up to one year. ei IRIUM City Council June 25, 2019 Meeting: Department: Executive Team Agenda No. 6. Subject: Resolution No. 1.9 -R -75 - Consideration and/or action approving a resolution by the City Council of the City of Schertz, Texas on a request for a Historical Incentive Program for the Schertz Main Street Local Flavor Economic Development Grant for 533 Main Street and related matters in connection therewith. (B. James) BACKGROUND The owner of the property at 533 Main which is the Bar House has applied for a Schertz Main Street Local Flavor Economic Development Grant. He is the first person to apply for this grant, though staff is in conversations with another property owner about applying for the Main Street grants. The application is for projects estimated to cost $35,818. The applications are for a facade improvement grant and a flatwork grant to repair the building's foundation and to do work to create an outdoor bar area. Staff is recommending approval of the grant and seeking council approval for up to $20,000. The grant program is 1 for 1 matching grant program, and although the current estimate for the work is only $35,818 of which the City would match $17,909, as staff has seen from past projects on Main Street, unexpected issues can arise creating additional costs, thus staff is seeking authorization to pay up to $20,000 of approved documented costs. If the project cost does not increase, the grant amount paid would only be $1.7,909. GOAL Promote and enhance commercial activity along Main Street to promote the economic, cultural, and general welfare of the public. The area around Main Street in Schertz once served as the commercial and social hub of the community. The City seeks to improve the image of the area around Main Street through an inducement of public money to promote local economic development and to stimulate business and commercial activities in the City. COMMUNITY BENEFIT Encourage the attraction of small businesses that will create local charm and help develop a sense of place in and around Main Street. Promote commercial development. Stabilize and improve property values. Foster civic pride in the beauty and accomplishments of the past, and to promote the use of the historic structures for the culture, education, and general welfare of residents. Strengthen the economy of the city by protecting and enhancing the attractiveness of the Main Street area to residents and visitors, as well as provide support and stimulus to businesses. Staff recommends approval of Resolution 19 -R -75 approving the Schertz Main Street Local Economic Flavor Grant for up to $20,000 subject to the applicant entering into the incentive agreement with the City. Up to $20,000 for the grant. RECOMMENDATION Approval of Resolution 19 -R -74. Attachments Resolution No. 19 -R -75 Grant Agreement 533 Main RESOLUTION NO. 19 -R -75 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING A REQUEST FOR A HISTORICAL INCENTIVE PROGRAM FOR THE SCHERTZ MAIN STREET LOCAL FLAVOR ECONOMIC DEVELOMENT GRANT FOR 533 MAIN STREET IN THE CITY OF SCHERTZ, TEXAS, AND RELATED MATTERS IN CONNECTION THEREWITH WHEREAS, The City of Schertz desires to protect, enhance, and preserve the historic resources and landmarks which represent distinctive elements of Schertz' historic, architectural, economic, cultural, and social heritage by providing property owners and incentive for protecting their property; and WHEREAS, the City of Schertz desires to encourage the attraction of small businesses that will create local charm and help develop a sense of place in and around Main Street; WHEREAS, the City of Schertz desires to stabilize and improve property values; and WHEREAS, Foster civic pride in the beauty and accomplishments of the past, and to promote the use of the historic structures for the culture, education, and general welfare of residents; and WHEREAS, Strengthen the economy of the city by protecting and enhancing the attractiveness of the Main Street area to residents and visitors, as well as provide support and stimulus to businesses. WHEREAS, the City Council approved the Schertz Main Street Local Flavor Economic Development Grant; WHEREAS, staff is in support of this program and recommended approval of the grant request for 533 Main Street for up to $20,000; NOW THEREFORE, BE IT RESOLVED, THAT THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby approves the Schertz Main Street Local Flavor Economic Development Grant request for 533 Main Street subject to the approved criteria of the program and execution of a funding agreement generally as outlined in Exhibit "A ". Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 25th day of June, 2019. CITY OF SCHERTZ, TEXAS Michael R Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) Exhibit A STATE OF TEXAS § COUNTY OF BEXAR § SCHERTZ MAIN STREET LOCAL FLAVOR ECONOMIC DEVELOPMENT PROGRAM FUNDING AGREEMENT BETWEEN THE CITY OF SCHERTZ, TEXAS AND Main Street Legacy LLC, FOR EXPENDITURE OF HOTEL OCCUPANCY TAX FUNDS This Hotel Tax Funding Agreement (AGREEMENT) is made and entered into by and between the City of Schertz, Texas (CITY) and Main Street Legacy, (ENTITY). WHEREAS, the ENTITY has developed a proposal to Make additional improvements to the foundation and add a deck and bar at 533 Main (the "Project" ); and WHEREAS, Section 380.001 of the Texas Local Government Code, as amended, allows the governing body of a municipality to establish and provide for the administration of one or more programs to promote state and local economic development and to stimulate business and commercial activity in the municipality; and WHEREAS, the Schertz Main Street Local Flavor Economic Development Program is intended to encourage and expansion and attract small businesses that create local charm and help develop a sense of place in and around Main Street, promote commercial development, stabilize and improve property values, foster civic pride, and protect and enhance the attractiveness of the Main Street area to residents and visitors; and WHEREAS, funding for the Schertz Main Street Local Flavor Economic Development Program will be provided annually through the City's General Fund; and WHEREAS, the Schertz Main Street Local Flavor Economic Development Program will enhance other city efforts to improve, beautify, and promote economic development in the Main Street area. WHEREAS, the area around Main Street in Schertz once served as commercial and social hub of the community; and WHEREAS, the City seeks to improve the image of the area around Main. Street through restoration and rehabilitation of structures in the Main Street area to serve as a commercial, social, cultural and tourism hub of the City; and WHEREAS, the City Council of the City of Schertz desires to provide funds to Main Street Legacy LLC (ENTITY). NOW, THEREFORE, it is mutually agreed by and between the CITY and ENTITY as follows: GENERAL, PROVISIONS Section 1. Purpose. The purpose of this Agreement is to provide funding to the ENTITY for the project identified in the attached Exhibit "A" (the "Project "), the intent of which is to promote state and local economic development and to stimulate business and commercial activity in the municipality to encourage and expansion and attract small businesses that create local charm and help develop a sense of place in and around Main Street, promote commercial development, stabilize and improve property values, foster civic pride, and protect and enhance the attractiveness of the Main Street area to residents and visitors. Section 2. Obligation of the ENTITY. The ENTITY shall use all of the awarded funds provided by the CITY in accordance with Chapter 351 of the Texas Tax Code, the ENTITY'S funding application, and the attached Exhibit "A ". Section 3. Reporting Requirements of the ENTITY. The ENTITY shall deliver a detailed accounting of the expenditures for the Project within thirty (30) days after completion of the Project (the "Post Event Report "). The Post Event Report shall include copies of receipts and other documents establishing the expenditures for the project. The CITY shall not make reimbursements for expenditures where no receipt or invoice is provided. Partial or incomplete reports will not be accepted. Section 4. Authorization of Payment. Subject to the ENTITY'S satisfactory performance and compliance with the terms of this AGREEMENT, the CITY agrees to pay the ENTITY up to fifty percent (50 %) of the Project. The Project is estimated to be $26,818.00 and fifty percent of which is $13,414.00 Payment will be made within forty -five (45) days of acceptance of the complete Post Event Report. Partial or incomplete reports will not be accepted. Only expenditures that meet Chapter 351 of the Tax Code and this AGREEMENT shall be reimbursed. Section 5. Appeal Process. Any ENTITY wishing to appeal the decision of the CITY must present their appeal in writing within ten (10) business days of funding denial. Section 6. Rights. The City of Schertz has the right, at any time, to inspect the books or records of the ENTITY that may relate to performance of this AGREEMENT. The CITY, at its sole expenses, has the right to conduct an audit of the ENTITY or Project. Section 7. Term. The AGREEMENT shall become effective as of the date entered below. The AGREEMENT shall terminate one year from its effective date or once the terms have been met, whichever occurs first. Section 8. Indemnification. The ENTITY agrees to defend, indemnify and hold harmless the CITY, its officers, agents and employees, against any and all claims, lawsuits, judgments, cause of action, costs and expenses for personal injury (including death), property damage or other harm for which recovery of damages is sought, suffered by any person or persons, that may arise out of or be occasioned by the ENTITY's breach of any of the terms or provisions of this AGREEMENT, or by any negligent act or omission of the ENTITY, its officers, agents, servants, employees, contractors, or subcontractors, in the performance of this AGREEMENT; except that the indemnity provided for in this paragraph shall not apply to any liability resulting from the sole negligence of the CITY, its officers, agents, employees or separate contractors, and in the event of joint and concurrent negligence of both the ENTITY and the CITY under Texas law and without waiving any defenses of the parties under Texas law. The provisions of this paragraph are solely for the benefit of the parties hereto and not intended to create or grant any rights, contractual or otherwise, to any other person or entity. Both parties expressly agree that this AGREEMENT does not assign any responsibility for civil liability to the City of Schertz that may arise by virtue of this AGREEMENT. Section 9. Termination. A party may terminate this AGREEMENT in whole or in part if the other party fails to comply with a term of the AGREEMENT, including the inability of the ENTITY to conform to any change required by federal, state or local laws or regulations; or for the convenience of either party. The terminating party shall provide written notification to the other party of the decision to terminate this AGREEMENT within thirty (30) days before the effective date of termination. A party may terminate the AGREEMENT for breach of any provision of this AGREEMENT, upon written notice of the breach and the breaching party shall have ten (10) days after receipt of the written notice in which to cure the breach to the satisfaction of the non - breaching party. Section 10. Notice. All notices required or permitted under this AGREEMENT shall be in writing and shall be delivered in person or mailed as follows: to the CITY at: City of Schertz Attention: City Manager 1400 Schertz Parkway Schertz, TX 78154 (210) 61.9 -1000 To the Main Street Legacy LLC. at: Attention: Nick Marquez 534 Mission Hill Run New Braunfels, Texas 781.32 MISCELLANEOUS Section 11. Entire Agreement. This AGREEMENT constitutes the entire agreement of the parties regarding the subject matter contained herein. The parties may not modify or amend this AGREEMENT, except by written agreement approved by the governing bodies of each party and duly executed by both parties. Section 12. Approval. This AGREEMENT has been duly and properly approved by each party's governing body and constitutes a binding obligation on each party. Section 13. Assignment. Except as otherwise provided in this AGREEMENT, a party may not assign this AGREEMENT or subcontract the performance of services without first obtaining the written consent of the other party. Section 14. Non - Waiver. A party's failure or delay to exercise right or remedy does not constitute a waiver of the right or remedy. An exercise of a right or remedy under this AGREEMENT does not preclude the exercise of another right or remedy. Rights and remedies under this AGREEMENT are cumulative and are not exclusive of other rights or remedies provided by law. Section 15. Paragraph Headings. The various paragraph headings are inserted for convenience of reference only, and shall not affect the meaning or interpretation of this AGREEMENT or any section thereof. Section 16. Attorney fees. In any lawsuit concerning this AGREEMENT, the prevailing party shall be entitled to recover reasonable attorney's fees from the nonprevailing party, plus all out -of- pocket expense such as deposition costs, telephone, calls, travel expenses, expert witness fees, court costs, and their reasonable expenses, unless otherwise prohibited by law. Section 17. Severability. The parties agree that in the event any provision of this AGREEMENT is declared invalid by a court of competent jurisdiction that part of the AGREEMENT is severable and the decree shall not affect the remainder of the AGREEMENT. The remainder of the AGREEMENT shall be in full force and effect. Section 18. Venue. The parties agree that all disputes that arise of this AGREEMENT are governed by the laws of the State of Texas and venue for all purposes herewith shall be in Milam County, Texas. Section 1.9. Certificate of Insurance. The ENTITY agrees to provide a certificate of insurance for liability and worker's compensation insurance or letter of self-insurance on its letterhead indicating its self - insured status before any event awarded funding under this AGREEMENT. The cost of the insurance herein mentioned to be secured and maintained by the ENTITY shall be borne solely by the ENTITY. IN WITNESS HEREOF, the CITY and ENTITY make and execute this AGREEMENT to be effective this day of 120 CITY OF SCHERTZ, TEXAS ENTITY City Manager r:' City Secretary (Title) (Title) [Describe the project to be performed] PAGE 5 OF 5 Agenda No. 7. ei Olum City Council June 25, 2019 Meeting: Department: City Secretary Subject: Resolution 19 -R -76- Consideration and /or action approving a resolution by the City Council of the City of Schertz, Texas authorizing the Schertz Seguin Local Government Corporation (SSLGC) Budget Amendment for Fiscal Year 2018 -19 in the amount of $3,000,000 as a transfer to the SSLGC Repair/ Replacement Fund and in the amount of $500,000 as a transfer to the Rate Stabilization fund and other matters in connection therewith. (C. Kelm /A. Beard) I YXI G X 010k'I7 The Schertz /Seguin Local Government Corporation has a Retained Earnings Policy that sets a threshold for the minimum retained earnings to be held in the operating fund. By previous SSLGC Board action, the minimum is set at three months of operating expenditures. Based upon this policy, there is $3,500,000 above this threshold currently in this reserve account available for use, verified by the Annual Audit for FY2017 -2018. SSLGC Staff is recommending a transfer to the SSLGC Repair /Replacement Fund in the amount of $3,000,000 and a transfer to the Rate Stabilization fund in the amount of $500,000. $1,197,850 of this will be used to provide for repairs, maintenance and upgrades of existing facilities. The SSLGC Board approved this action at their regularly scheduled board meeting on April 18, 2019. GOAL Approve the SSLGC Budget Amendment transferring $3,000,000 from the operating reserve fund to the SSLGC Repair /Replacement Fund and transferring $500,000 from the operating reserve fund to the Rate Stabilization Fund. COMMUNITY BENEFIT The City of Schertz is a member of the SSLGC. It is through the SSLGC that the City provides water to its citizens. Approval of the budget amendment will ensure that the citizens of Schertz will continue to receive this vital resource and service. SUMMARY OF RECOMMENDED ACTION Staff recommends approval of the Resolution for the Budget Amendment to the FY2018 -2019 Annual Budget. FISCAL IMPACT No fiscal impact. This budget is based on SSLGC revenue. Staff recommends approval. Attachments Resolution 19 -R -76 SSLGC budget amend RESOLUTION NO. 19 -R -76 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION (SSLGC) BUDGET AMENDMENT FOR FISCAL YEAR 2018 -2019 IN THE AMOUNT OF $3,000,000. AS A TRANSFER TO THE SSLGC REPAIR /REPLACEMENT FUND AND IN THE AMOUNT OF $500,000. AS A TRANSFER TO THE RATE STABILIZATION FUND AND OTHER MATTERS IN CONNECTION THEREWITH. WHEREAS, the Schertz Seguin Local Government Corporation (SSLGC) has a retained earnings policy that sets a reserve operating fund balance at three months of operating revenue; and WHEREAS, after the Fiscal Year 2017 -2018 Comprehensive Annual Financial. Report was completed, it showed that the SSLGC reserve operating fund balance exceeded its recommended balance by over $3,500,000; and WHEREAS, the SSLGC Board of Directors has recommended and approved reallocating $3,000,000 to the SSLGC Repair /Replacement Fund for use in future water system improvement projects and /or for unanticipated maintenance or repairs and $500,000 to the Rate Stabilization Fund; and WHEREAS, the City staff of the City of Schertz (the "City ") agrees with the SSLGC Board's action and has recommended that the City approve the Schertz /Seguin Local Government Corporation Fiscal Year 2018 -2019 budget amendment; and WHEREAS, the City Council has determined that it is in the best interest of the City to approve the budget amendment to ensure that the citizens and businesses of Schertz continue to receive excellent and vital water service. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS Section 1. The City Council hereby authorizes the approval of the Schertz /Seguin Local. Government Corporation Fiscal. Year 201.8 -2019 budget amendment. 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 25th day of June, 2019. CITY OF SCHERTZ, TEXAS Mayor, Michael R. Carpenter ATTEST: City Secretary, Brenda Dennis (CITY SEAL) RESOLUTION AMENDING YEAR 2019 SCHERTZ LOCAL GOVERNMENT CORPORATION BUDGET. NOW, THEREFORE, RESOLVED 2019 SCHERTZ SEGUIN LOCAL GOVERNMENT •''•' • N BUDGET IS AMENDED AS FOLLOWS: certz- Seguin Local Government Corporation Operating Fund Amount Increase: Increase: $3,000,000 SSLGC- Operating SSLGC- Operating Intragovernmental Transfers Non - Departmental Transfers to Repair & Replacement Fund Use of Retained Earnings 058- 9000 - 826100 058- 9800 - 960000 retained Reason requested: The Corporation has a Retained Earnings policy. This policy set a threshold for the minimum earnings to be - r in the operating fund. This minimum policy months set at three operating expenditures. -t upon this policy and the results of audit, there is $3,500,000 above this threshold available for use. Amount a $ 500,000 SSLGC- Operating SSLGC - Operating Intragovermentai Transfers Non- Departmental Transfers to Rate Stabilization Fund Use of Retained Earnings 058- 9000 - 825700 058- 9800 - 960000 Reason requested- To transfer - remaining required • • the Rate Stabilization Fund as approved by Board in 2017 in the Rate Stabilization Policy. Repair r Replacement Fur;r Amount Increase: $ 171,500 Repair and Replacement Fund Capital Outlay Instrumentation & Automation 061- 9000 - 703000 $ 611,450 Repair and Replacement Fund Capital Outlay Pipeline Maintenance 061- 9000 - 703000 $ 422,650 Repair and Replacement Fund Capital Outlay Plant & Pump Station Maintenance 061 -9000- 703000 061-391058 Repair and Replacement Fund Intragovernmental 061-391058 - Repair and Replacement Fund Intragovernmental 061-391058 - $1,794,400 Repair and Replacement Fund Intragovernmental Transfers Transfers from Operating Fund 061-391058 a . -• Stabilization Fund Amount Increase: Increase: $ 500,000 Rate Stabilization Fund Rate Stabilization Fund Intragovemmental. Transfers Transfers from Operating Fund Retained Earnings 057-391058 061-297020 Reason requested: To transfer the remaining required funds to the Rate Stabilization Fund as approved by the Board in 2017 in the Rate Stabilization Policy. The Board • Directors • the Schertz-Seguin Local Government Corporation finds that these budget adjustments are required because changes and unforeseen conditions that could not have been anticiX2ated in the original budget, PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION, on this the 18th day of April, 2019. nows WA President - Schertz-Seguin Local Government C rporatic ATTEST: t' Secretary 10M Assistant Secretary ei Olum City Council June 25, 2019 Meeting: Department: City Secretary Agenda No. 8. Subject: Resolution No. 19 -R -77 - Consideration and /or action approving a resolution by the City Council of the City of Schertz, Texas approving the Schertz /Seguin Local Government Corporation Fiscal Year 2019 -2020 Annual Budget and other matters in connection therewith. (SSLGC Resolution #SSLGC R19 -04) (C. Kelm /A. Beard) A proposed annual budget for the period commencing October 1, 2019, and ending September 30, 2020, has been prepared by the Schertz /Seguin Local Government Corporation (SSLGC) General Manager and Staff. This proposed budget shows a minimal increase in total expenses of approximately .06 %. It is the desire of SSLGC to have the FY2019 -20 SSLGC Budget approved by the City of Schertz City Council. The SSLGC Board of Directors approved the FY 2019 -20 Budget on May 16, 2019. GOAL To approve the SSLGC FY2019 -20 Annual Budget. COMMUNITY BENEFIT The City of Schertz is a member of the Schertz /Seguin Local Government Corporation. It is through SSLGC that the City provides water to it citizens and businesses. Approval of the budget will ensure that the citizens and businesses of Schertz will continue to receive this vital resource and service. SUMMARY OF RECOMMENDED ACTION Staff recommends approval of the Resolution approving the proposed SSLGC FY2019 -20 Annual Budget. FISCAL IMPACT This budget is based on SSLGC revenue. RECOMMENDATION Staff recommends approval. Attachments Resolution No. 19 -R -77 SSLGC Budget Summary SSLGC Resolution RESOLUTION NO. 19 -R -77 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION FISCAL YEAR 2019 -2020 ANNUAL BUDGET, AND OTHER MATTERS IN CONNECTION THEREWITH. (SSLGC RESOLUTION #SSLGC R19 -04) WHEREAS, the Schertz Seguin Local Government Corporation (SSLGC) is a corporation for the provision of and transportation of water wholly owned by both the City of Schertz and the City of Seguin; and WHEREAS, SSLGC By -Laws require that the corporation establish an annual budget and said annual budget must be approved by the SSLGC Board of Directors and both the City of Schertz and the City of Seguin; and WHEREAS the proposed FY 2019 -20 Fiscal Year Budget, provided herein as Attachment A, has been approved by the SSLGC Board of Directors at their regularly scheduled May Board Meeting; and WHEREAS, the City staff of the City of Schertz (the "City ") recommends that the City approve the Schertz /Seguin Local Government Corporation Fiscal Year 2019 -20 Annual Budget; and WHEREAS, the City Council has determined that it is in the best interest of the City to approve the budget to ensure that the citizens and businesses of Schertz continue to receive excellent and vital water service. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the approval of the Schertz /Seguin Local Government Corporation Fiscal Year 2019 -20 Annual Budget. 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 25th day of June,2019. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor Brenda Dennis, City Secretary (CITY SEAL) 2019 -20 Budget - SSLGC Expenses FY 2018 FY 2019 FY 2019 FY 2019 FY 2020 Actual Budget 03/31/19 Estimates Budget 063 - SSLGC OPERATING DEPT. 55 - SSLGC 11 - Salaries 063 - 5500 - 110100 Regular Salaries 757,915.75 803,838.00 274,617.22 803,838.00 901,573.00 063 - 5500 - 112000 Overtime /On Call 34,892.61 40,000.00 19,246.12 40,000.00 80,500.00 11- Salaries Totals: 792,808.36 843,838.00 293,863.34 843,838.00 982,073.00 12 - Benefits 063 - 5500 - 121000 Payroll Taxes 58,956.04 64,554.00 21,89110 64,554.00 75,129.00 063 - 5500 - 122000 Retirement 159,719.21 184,864.00 64,047.42 184,864.00 220,181.00 063 - 5500 - 123000 Health Insurance 106,930.43 111,572.00 42,623.82 111,572.00 114,283.00 063 - 5500 - 123100 Life Insurance 2,122.47 1,070.00 433.18 1,070.00 1,070.00 063 - 5500 - 124000 Workers' Compensation 6,718.60 15,488.00 3,714.93 15,488.00 10,170.00 12 - Benefits Totals: 334,446.75 377,548.00 132,711.45 377,548.00 420,833.00 32 - Professional Services 063 -5500- 320500 Professional Services 25,260.15 22,800.00 12,760.02 22,800.00 76,200.00 063 - 5500 - 321000 Annual Audit 13,800.00 15,000.00 0.00 11,835.00 15,000.00 063 - 5500- 321200 Consultant Services 126,161.83 161,000.00 59,639.13 104,550.00 86,500.00 063 -5500- 321500 Attorney Fees 65,080.24 60,000.00 14,634.61 20,500.00 50,000.00 063 - 5500- 321600 Landfill Opposition 142,099.89 200,000.00 3,813.01 3,813.00 10,000.00 063 -5500- 323500 Solid Waste Contract 2,127.51 2,400.00 1,274.94 2,400.00 3,000.00 32 - Professional Services Totals: 374,529.62 461,200.00 92,121.71 165,898.00 240,700.00 34 - Technical Services 063 - 5500 - 342100 Gonzales Underground Water District 93,775.73 91,000.00 100,435.70 93,000.00 100,000.00 063 - 5500 - 342400 GCGCD Permit Fee 148,686.84 148,000.00 87,960.32 174,700.00 174,000.00 063 -5500- 342500 GCUWCD Mitigan Fund Pymt 112,921.56 166,000.00 0.00 69,149.00 75,000.00 063 - 5500- 343000 Testing /Inspection Fees 16,604.56 25,000.00 8,760.10 16,000.00 22,400.00 34 - Technical Services Totals: 371,988.69 430,000.00 197,156.12 352,849.00 371,400.00 41- Utilities Services 063-5500-411000 Electric 1,796,199.76 2,000,000.00 796,50832 1,700,000.00 2,250,000.00 063 -5500- 412000 Water 835.77 1,300.00 328.23 670.00 800.00 063 -5500- 413000 Sewer 656.56 1,000.00 344.16 700.00 800.00 063 -5500- 414000 Gas - Centerpoint 879.59 1,000.00 557.66 900.00 1,000.00 063 - 5500- 415000 Telephone Service 428.87 500.00 317.47 296.00 0.00 063 - 5500 - 415100 Long Distance 0.00 100.00 0.00 0.00 0.00 063 - 5500- 415200 Telephone- Mobile Phone 3,887.51 4,257.00 1,829.95 4,257.00 5,000.00 063 -5500- 415300 Internet Access 2,499.96 2,500.00 1,249.98 2,500.00 2,500.00 41- Utilities Services Totals: 1,805,388.02 2,010,657.00 801,135.77 1,709,323.00 2,260,100.00 43 - Repair and Maintenance 063 - 5500 - 431100 Office Maintenance- Equipment 0.00 2,500.00 0.00 0.00 0.00 063-5500-431200 Office Maintenance- Computer 0.00 0.00 0.00 0.00 11,155.00 063 -5500- 432100 V &E Maint. -Motor Vehicles 10,718.33 14,000.00 4,286.40 9,000.00 14,000.00 063 - 5500- 432200 V &E Maint.- Machine & Tool 5,640.93 20,000.00 1,268.07 10,000.00 20,000.00 063 -5500- 432300 V &E Maint. -Heavy Equipment 227.01 20,000.00 2,747.24 4,125.00 15,000.00 063 - 5500- 432400 V &EMaint.- Communications 18,158.81 30,000.00 13,250.75 30,000.00 31,000.00 063 -5500- 432500 V &E Maint. -Pumps & Motors 110,991.80 200,000.00 37,167.84 175,000.00 250,000.00 063 -5500- 433000 Buildings Maintenance 10,895.68 20,000.00 29,965.52 20,000.00 20,000.00 063 -5500- 434601 L &I Maint. -WATER System 135,479.80 125,000.00 14,225.02 78,000.00 127,500.00 063 - 5500- 436000 Property Maintenance 5,616.38 4,000.00 2,404.82 4,000.00 4,000.00 43 - Repair and Maintenance Totals: 297,728.74 435,500.00 105,315.66 330,125.00 492,655.00 44 - Rental 063 - 5500 - 441000 Equipment Rental 6,877.54 10,000.00 1,846.00 10,000.00 10,500.00 FY 2018 FY 2019 FY 2019 FY 2019 FY 2020 Actual Budget 03/31/19 Estimates Budget 063 -5500- 443500 Water Leases 2,479,889.29 2,500,000.00 1,280,484.59 2,500,000.00 2,603,000.00 44 - Rental Totals: 2,486,766.83 2,510,000.00 1,282,330.59 2,510,000.00 2,613,500.00 52 - Insurance 063 -5500- 521000 Building /Auto Liability 63,911.59 66,000.00 87,800.00 118,432.00 117,000.00 52 - Insurance Totals: 63,911.59 66,000.00 87,800.00 118,432.00 117,000.00 54 - Advertising 063 -5500- 541000 Publication of Notices 1,639.00 2,000.00 964.00 2,000.00 2,500.00 54 - Advertising Totals: 1,639.00 2,000.00 964.00 2,000.00 2,500.00 61- General Supplies 063 -5500- 611000 Office Supplies 3,097.61 4,000.00 2,511.92 3,800.00 6,500.00 063 -5500- 612000 Postage 1,001.20 1,000.00 843.00 1,000.00 1,300.00 063 - 5500 - 613000 Operating Supplies 4,563.35 7,000.00 4,649.77 7,000.00 8,000.00 063 -5500- 613300 Chemicals 464,810.65 525,000.00 201,006.79 460,000.00 525,000.00 063 - 5500- 613500 Laboratory Supplies 10,012.56 10,000.00 2,450.45 10,000.00 10,500.00 063 -5500- 614300 Safety Supplies 1,099.88 7,800.00 419.55 7,800.00 1,300.00 063 - 5500- 616000 Uniforms 4,541.37 5,000.00 3,454.12 5,000.00 5,000.00 063 -5500- 618000 Minor Tools and Equipment 2,717.19 5,000.00 402.95 5,000.00 6,500.00 61- General Supplies Totals: 491,843.81 564,800.00 215,738.55 499,600.00 564,100.00 62 - Energy and Fuel 063 - 5500 - 621000 Gasoline 17,123.65 17,000.00 7,364.12 19,500.00 17,000.00 62 - Energy and Fuel Totals: 17,123.65 17,000.00 7,364.12 19,500.00 17,000.00 65 - Miscellaneous 063 -5500- 655100 Employee Recognition 0.00 6,000.00 5,644.95 6,000.00 2,000.00 65 - Miscellaneous Totals: 0.00 6,000.00 5,644.95 6,000.00 2,000.00 66 - Education 063 - 5500 - 661000 Seminar Tuition 5,305.00 12,000.00 2,776.95 10,000.00 15,700.00 063 - 5500 - 662000 Certification Fees 1,350.00 1,900.00 1,248.00 1,900.00 2,000.00 063 -5500- 665000 Travel and Lodging 2,772.58 3,000.00 7,307.33 3,000.00 9,000.00 063 - 5500- 665500 Meals 2,179.10 2,500.00 370.65 2,500.00 1,500.00 063 -5500- 666000 Dues 1,461.00 1,850.00 0.00 1,850.00 3,400.00 063 - 5500- 667000 Subscriptions 325.00 300.00 50.00 300.00 200.00 66 - Education Totals: 13,392.68 21,550.00 11,752.93 19,550.00 31,800.00 67 - Public Relations 063 -5500- 671000 Public Relations 6,648.76 7,000.00 3,579.56 5,000.00 5,000.00 67 - Public Relations Totals: 6,648.76 7,000.00 3,579.56 5,000.00 5,000.00 70 - Capital Outlay 063 -5500- 706100 Mach. & Equip.-Office 3,233.76 11,500.00 6,241.80 11,000.00 15,000.00 063 -5500- 706500 Machine & Equipment -Small Equipm, 0.00 0.00 0.00 0.00 10,500.00 063 - 5500- 707100 Transportation - Vehicles 0.00 1,500.00 0.00 0.00 0.00 70 - Capital Outlay Totals: 3,233.76 13,000.00 6,241.80 11,000.00 25,500.00 82 - Intragvrmmntl. Transfers 063 -5500- 825700 Rate Stabilization Fund 250,000.00 250,000.00 125,000.00 250,000.00 0.00 063 -5500- 826100 Repair & Replacement Fund 600,000.00 600,000.00 300,000.00 600,000.00 600,000.00 063 - 5500- 826200 Future Development Fund 500,000.00 500,000.00 250,000.00 500,000.00 375,000.00 82 - Intragvrmmntl. Transfers Totals: 1,350,000.00 1,350,000.00 675,000.00 1,350,000.00 975,000.00 98 - Depreciation 063 -5500- 984500 Depreciation / SSLGC 98 - Depreciation Totals: 55 - SSLGC Totals: 063 - SSLGC OPERATING DEPT. Totals: FY 2018 Actual 3,240,324.63 FY 2019 Budget 0.00 FY 2019 03/31/19 0.00 FY 2019 Estimates 0.00 FY 2020 Budget 0.00 3,240,324.63 0.00 0.00 0.00 0.00 11,651,774.89 9,116,093.00 3,918,72055 8,320,663.00 9,121,161.00 11,651,774.89 9,116,093.00 3,918,720.55 8,320,663.00 9,121,161.00 STATE OF TEXAS COUNTY OF r •r.• KIM V •, I ! I • i Local WHEREAS, in accordance with the Schertz/Seguin • vernment Corporatio to WHEREAS, adopt a budget for the fiscal year 2019-2020; and WHEREAS, a proposed annual budget for the period commencing October 1. 2019 and ending September 30, 2020 has been prepared by the Schertz/Seguiin Local Government Corporation Financial Officer and the City of Seguin Director of Finance, and the Board of Directors has considered the proposed budget; and the budget for the fiscal year 2019 -2020 for the Schertz /Seguin Local Government Corporation is attached. The budget for the fiscal year commencing October 1, 2019 and ending September 30, 2020 is hereby approved and adopted. 1 I I IRM Ville 1of1 SIGNED O IGTIN L ()a 1 Agenda No. 9. ei 10um City Council June 25, 2019 Meeting: Department: City Secretary Subject: Resolution No. 19 -R -78 - Consideration and /or action approving a resolution by the City Council of the City of Schertz, Texas approving the Schertz /Seguin local Government Corporation Fiscal Year 2019 -2020 Water Rates and other matters in connection therewith. (SSLGC Resolution #SSLGC R19 -05) (C.Kelm /A. Beard) BACKGROUND In order for the City's corporate partner, the Schertz /Seguin Local Government Corporation (SSLGC) to provide water at the lowest rate possible, SSLGC utilizes the services of Willdan Financial Services as a rate consultant to evaluate and advance its 5 -year rate model annually. This helps to keep rate increases minimal and to keep SSLGC revenue appropriate for current and future operations. For Fiscal Year 2019 -20, the SSLGC Board is recommending and has approved with SSLGC Resolution SSLGC R19 -05 a $0.02 per 1,000 gallons of water rate increase. This increase is necessary to keep up with revenue targets and to plan for the reduction of future excess water sales to SAWS. Attached you will find SSLGC Resolution #SSLGC R19 -05 and the FY2019 -20 SSLGC Water Rates. GOAL To have the City of Schertz City Council approve the SSLGC FY201.9 -20 water rates. COMMUNITY BENEFIT The City of Schertz is a member of the Schertz /Seguin Local Government Corporation. It is through the SSLGC that the City provides water to its citizens and businesses. Approval of the water rates will ensure that the citizens and businesses of Schertz will continue to receive this vital service. SUMMARY OF RECOMMENDED ACTION Staff recommends approval of the Resolution adopting the SSLGC FY2019 -20 water rates. FISCAL IMPACT This $0.02/1,000 gallons of water rate increase from SSLGC will lead to a rate increase for the citizens of Schertz in the next fiscal year. The City of Schertz will not only see the two -cent rate increase but our debt obligations to SSLGC are also increasing as we begin making bond payments on the parallel pipeline and the planned Guadalupe County well field and treatment facility currently in design totaling $2,102,634.47 for FY2019 -20. RECOMMENDATION Staff recommends approval of the SSLGC proposed water rates for FY 2019 -20. Attachments Resolution 19 -R -78 Water rates SSLGC R19 -05 RESOLUTION NO. 19 -R -18 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION FISCAL YEAR 2019 -20 WATER RATES, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Schertz is a partner in and receives the majority of its potable drinking water supply from a local government corporation known as the Schertz Seguin Local Government Corporation ( SSLGC); and WHEREAS, the SSLGC is required to produce and follow an annual budget for each fiscal year and revenue to conduct operations is a key piece of this annual budget; and WHEREAS, the SSLGC has determined that to meet operating needs in FY 2019 -20 and known increases in expenses in future years that a $0.02/1,000 gallons of water rate increase is necessary for FY 2019 -20; and WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the City approve the proposed Schertz /Seguin Local Government Corporation Fiscal Year 2019 -20 Water Rates as adopted by the SSLGC Board of Directors; and WHEREAS, the City Council has determined that it is in the best interest of the City to approve the rates to ensure that the citizens and businesses of Schertz continue to receive excellent and vital water service. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS MIDI II,4 Section 1. The City Council hereby authorizes the approval of the Schertz /Seguin Local Corporation Fiscal Year 2019 -20 Water Rates. 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 25th day of June, 2019. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor Brenda Dennis, City Secretary (CITY SEAL) 50506221.1 - 2 - SSLGC WATER RATES FOR FY2019 -2020 Effective October 1, 2019 1. Water Rate for Schertz and Seguin - Gonzales Operations and Maintenance $0.91 Water Leases $D.73 Rate per 1,000 gallons $1.64 *Schertz Annual Debt Service Payment $3,845,465 *Seguin Annual Debt Service Payment $2,132,019 2. Water Rate for Selma and Universal City Operations and Maintenance $0.91 Water Leases $0.73 Transportation $0.38 Cities Distribution 0.19 Rate per 1,000 gallons $2.21 3. Water Rate for Springs Hill Operations & Maintenance $0.91 Water Leases 0.73 Rate per 1,000 gallons $1.64 *Annual Debt Service Payment $ 258,398 4. Water Rate for Selma 2015 (Selma 2 Contract) Operations & Maintenance $0.91 Water Leases $0.73 Cities Distribution 0.19 Rate per 1,000 gallons $1.83 *Selma 2 Annual Debt Service Payment $ 156,912 VNI,(, .I!.3,13 {l?. /l' (SF t;J," 05 -16-2019 SSLGC WATER RATES FOR FY2019 -2020 Effective October 1, 2019 5. Water Rate for SAWS — T1 Operations & Maintenance 0.91 Rate per 1,000 gallons $0.91 *SAWS (SSLGC) — T1 Annual Debt Svc Payment $ 727,492 *SAWS (2012 Bond) — T1 Annual Debt Svc Payment $1,510,187 Total SAWS T1 Debt Svc $2,237,679 6. Water Rate for SAWS — T2 Operations and Maintenance $0.91 Water Leases $D.73 Rate per 1,000 gallons $1.64 *SAWS — T2 Annual Debt Service Payment $ 230,669 Total Debt Service Payments $8,861,143 *Note: The monthly amounts may vary in order to accommodate the due dates of the debt service payment schedule. 11'11RO! 'ID 0 46-2019 •; • O RP • ',, ON STATE OF COUNTY OF AD • • �• • �r 'kMej My v LIVE W r WHEREAS, the water rate schedule for the fiscal year 2019 -2020 for the Schertz/Seguin Local Government Corporation is attached. • •' ` • i • • i '' • -' • Men i • •' •' • • , r r • r' Im a 1 • •1 •. 1of SIGNED ORIGINAL(S)� 1. ei Olum City Council June 25, 2019 Meeting: Department: Economic Development Corporation Agenda No. 10. Subject: Resolution No. 19-R-80 - Consideration and /or action approving a resolution by the City Council of the City of Schertz, Texas authorizing a program and expenditures, Project E -052, to provide a possible incentive of up to $200,000 for a project related to the creation or retention of up to 87 primary jobs. (M. Browne /K. Kinateder) The City of Schertz Economic Development Corporation ( "SEDC ") held a public hearing and approved SEDC Resolution 2019 -13 at their meeting on June 20, 2019. The SEDC resolution approved, subject the City Council's authorization of funds, an Economic Development Performance Agreement ( "Agreement ") with Nexus Enterprises Inc ( "Nexus ") attached as part of the City's Resolution 19 -R -80 hereto attached. Nexus is a healthcare, insurance, and services solutions provider with customers throughout the United States. Under the Agreement, Nexus will enter a 10 -year lease and relocate its headquarters to a new 36,000 square foot office building that will be located at 5600 Schertz Parkway. As part of the agreement, Nexus must create at least 87 full time jobs with an annual payroll of $4,616,770 and maintain certain personal property requirements as identified in the Agreement. Nexus chose Schertz as a strategic location as the company continues to grow and focus on the betterment of its employees. The Schertz location offers Nexus the ability to locate in a new standalone office building that is more centralized to its workforce. The SEDC has offered Nexus the ability to reduce its clawback by 12.5% or $25,000 if they promote the key drivers noted above on why they chose Schertz. City Council Resolution 19 -R -80 authorizes the program and expenditures outlined in the Agreement. GOAL To approve Resolution 19 -R -80. C/ This project will produce a positive economic benefit for the City of Schertz. This project creates new high paying jobs and introduces new office development in Schertz. All economic development incentives will come from the SEDC, the City of Schertz will realize the full economic benefit of this project. Y1104 104 / \ "I]a7OW93 /I►II1401111Do 17_TIhI[ /7►1 To approve Resolution 19 -R -80 authorizing the Agreement. The SEDC Board and Staff recommends this action. At the SEDC Board Special Called Meeting held on June 20, 2019, the SEDC Board of Directors voted to approve SEDC Resolution 2019 -1.3. A motion was made by Mr. Richard. Seconded by Ms. Morrill. Motion passed 5 -0. FISCAL IMPACT Resolution 19 -R -80 authorizes up to $200,000 of SEDC funds for the Agreement. The funds will be added to SEDC's FY 2019 -20 budget. � i 1• / To approve Resolution 19 -R -80 authorizing the Agreement. Attachments Resolution 19 -R -80 RESOLUTION NO. 19 -R -80 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A PROGRAM AND EXPENDITURES AS PROVIDED FOR IN THE ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT BETWEEN THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION (THE "SEDC ") AND NEXUS ENTERPRISES, LLC (THE "COMPANY "); AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the Development Corporation Act of 1 979, as amended (Section 501.001 et seq, Texas Local Government Code, formerly the Development Corporation Act of 1979) (the "Act ") authorizes a development corporation to fund certain projects as defined by the Act and requires development corporation to enter into performance agreements to establish and provide for the direct incentive or make an expenditure on behalf of a business enterprise under a project; and WHEREAS, Section 501.101 of the Act authorizes the use of Corporation funds for land, buildings, equipment, facilities, expenditures, targeted infrastructure and improvements for the creation or retention of primary jobs when found by the board of directors to be required or suitable for the development, retention, or expansion of manufacturing and industrial facilities; and WHEREAS, Section 501.158 of the Act requires an incentive agreement to provide at a minimum for a schedule of additional payroll or jobs to be created or retained and capital investment to be made as consideration for any direct incentives provided or expenditures made by the corporation under the agreement and to specify the terms under which repayment must be made if the business enterprise does not meet the performance requirements specified in the agreement; and WHEREAS, Section 501.1.59 of the Act requires that a corporation hold at ]east one public hearing on the proposed project before spending money to undertake the project, the public hearing was held on June 20, 2019; and WHEREAS, the SEDC Board of Directors approved SEDC Resolution 2019 -13 which, subject to the authorization of funds by the City of Schertz City Council, approved the Economic Development Performance Agreement attached hereto as Exhibit A between the Corporation, and the Company, pursuant to the Act, and the SEDC's Board of Directors meeting on June 20, 2019; and WHEREAS, Section 501.073 of the Act requires that the corporation's authorizing unit to approve all programs and expenditures of a corporation; and WHEREAS, the SEDC has recommended that the City authorize the program and expenditures associated therewith; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the program and expenditures as provided for in the Economic Development Performance Agreement as 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 25th day of June 2019. . CITY OF SCHERTZ, TEXAS Michael Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary imall ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT NEXUS ENTERPRISES, LLC. [SEE ATTACHED] ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT NEXUS ENTERPRISES, LLC. THIS ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT — NEXUS ENTERPRISES, LLC., ( "Agreement ") is entered into as of the Effective Date (as defined in Article III below), by and between the City of Schertz Economic Development Corporation, located in Guadalupe County, Texas, a Texas non -profit industrial development corporation under the Development Corporation Act and governed by TEX. Loc. Gov. CODE chapters 501, 502 and 505 and the Texas Non -Profit Corporation Act (hereinafter called "Corporation ") created by and for the benefit of the City of Schertz, Texas (hereinafter the called the "City "), and Nexus Enterprises, LLC., a Texas limited liability company, its successors or assigns (hereinafter called "Company "), the Corporation and the Company collectively known as the "Parties" to this Agreement. WHEREAS, the Development Corporation Act of 1979, as amended (Section 501.001 et seq, Texas Local Government Code, formerly the Development Corporation Act of 1979) (the "Act ") authorizes a development corporation to fund certain projects as defined by the Act and requires development corporations to enter into performance agreements to establish and provide for the direct incentive or make an expenditure on behalf of a business enterprise under a project; and WHEREAS, Section 501.101 of the Act authorizes the use of SEDC funds for land, buildings, equipment, facilities, expenditures, targeted infrastructure and improvements for the creation or retention of primary jobs when found by the board of directors to be required or suitable for the development, retention, or expansion of manufacturing and industrial facilities; and WHEREAS, Section 501.1.58 of the Act requires a performance agreement to provide at a minimum for a schedule of additional payroll or jobs to be created or retained and capital investment to be made as consideration for any direct incentives provided or expenditures made by a corporation under the agreement and to specify the terms under which repayment must be made if the business enterprise does not meet the performance requirements specified in the agreement; and WHEREAS, the Company desires to relocate and expand its headquarters, management, scientific, and technical consulting services operations to the Facility located in Schertz, Texas; and WHEREAS, prior to the execution of this Agreement, with the Corporation's consent, the Company or its affiliates has entered into a ten year lease at the Facility that will be constructed on the Property for the specific use of the Company; and WHEREAS, the Corporation adopted the Schertz Incentive Policy in May 2017 . to guide and ensure consistency when providing incentives within the City to promote economic development; and WHEREAS, the Corporation authorizes a variance from the Schertz Incentive Policy by acknowledging that the Company has executed its lease prior to the approval of this Agreement; and WHEREAS, the location of the Company, as proposed, will contribute to the economic development of the City by creating new jobs and increased employment, promoting and developing expanded business enterprises, increased development, increased real and personal property value and tax revenue for the City, and will have both a direct and indirect positive overall improvement/stimulus in the local and state economy; and WHEREAS, the Parties are executing and entering into this Agreement to set forth certain terms and obligations of the Parties with respect to such matters herein; and WHEREAS, the Parties recognize that all agreements of the Parties hereto and all terms and provisions hereof are subject to the laws of the State of Texas and all rules, regulations and interpretations of any agency or subdivision thereof at any time governing the subject matters hereof, and WHEREAS, the Parties agree that all conditions precedent for this Agreement to become a binding agreement have occurred and been complied with, including all requirements pursuant to the Texas Open Meetings Act and all public notices and hearings; if any, have been conducted in accordance with Texas law; and WHEREAS, on the Effective Date, the commitments contained in this Agreement shall become legally binding obligations of the Parties. NOW, THEREFORE, in consideration of the mutual covenants, benefits and agreements described and contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and further described herein, the Parties agree as follows: ARTICLE I RECITALS The recitals set forth above are declared true and correct by the Parties and are hereby incorporated as part of this Agreement. ARTICLE II AUTHORITY AND TERM 1. Authority. The Corporation's execution of this Agreement is authorized by the Act and constitutes a valid and binding obligation of the Corporation. The Corporation acknowledges that the Company is acting in reliance upon the Corporation's performance of its obligations under W this Agreement in making the decision to commit substantial resources and money to the construction and establishment of the Project (as defined below), hereinafter constructed and established. 2. Term. This Agreement shall become enforceable upon the Effective Date, hereinafter established, and shall continue until the Expiration Date, hereinafter established, unless terminated sooner or extended by written mutual agreement of the Parties in the manner provided for herein. 3. Purpose. The purpose of this Agreement is to formalize the agreements between the Company and the Corporation for the granting of funds to cover certain costs associated with the Project and specifically state the covenants, representations of the Parties, and the incentives associated with the Company's commitment to abide by the provisions of the Act and to abide by the terms of this Agreement which has been approved by the Corporation and the Company as complying with the specific requirements of the Act. It is expressly agreed that this Agreement constitutes a single transaction. A failure to perform any obligation by the Parties may constitute a Default and shall terminate any further commitments (if any) by the non - defaulting Party unless an alternative penalty or remedy is provided for herein. 4. Administration of Agreement. Upon the Effective Date, the Corporation delegates the administration and oversight of this Agreement to the Executive Director of the Corporation. Any proposed amendments to the Agreement shall require the approval of the Board of Directors of the Corporation. ARTICLE III DEFINITIONS As used in this Agreement, the following terms shall have the meanings ascribed below. All undefined terms shall retain their usual and customary meaning as ascribed by common and ordinary usage. "Annual Payroll" shall mean the total wages paid during the calendar year, exclusive of employee benefits, to all Full -Time Employees working at or based out of the Facility. "Bankruptcy" shall mean the dissolution or termination of a Party's existence as a going business, insolvency, appointment of receiver for any party of such Party's property and such appointment is not terminated within ninety (90) days after such appointment is initially made, any general assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against such party and such proceeding is not dismissed within ninety (90) days after the filing thereof. "Calendar Year" shall mean. January l through December 31. "Certificate of Occupancy" shall mean the signed certificate issued by the City of Schertz Inspection Division confirming that the entire work covered by the building permit and plans are in place for the Facility or Facilities. "Default" unless otherwise specifically defined or limited by this Agreement shall mean failure by any Party to timely and substantially comply with any performance requirement, duty, or covenant set forth in this Agreement. "Effective Date" shall be the date upon which the last party hereto executes this Agreement. "Expiration Date" shall mean the earlier of: 1. December 31, 2023; 2. The date of termination provided for under Article VII of this Agreement. "Facility" shall mean the approximate thirty -six thousand (36,000) square foot office building located on the Property. "Force Majeure" shall mean any contingency or cause beyond the reasonable control of a Party, including, without limitation, acts of God or the public enemy, war riot, civil commotion, insurrection, government or de facto governmental action (unless caused by the intentionally wrongful acts or omissions of a Party), fires, explosions or floods, strikes, slowdowns or work stoppages. "Full Time Employee" or "Full Time Employees" shall mean: (1) an employee with a regular work schedule of at least 36 hours per week as reported to the Texas Employers Quarterly Wage Report from the Texas Workforce Commission, and (2) are entitled to at least the customary employer- sponsored employee benefits package afforded by the Company to its similarly situated employees at other locations. "Primary Jobs" shall mean the definition established by Sec. 501.002 (12) of the Act. "Project" shall mean the creation and retention of Primary Jobs at the Facility as demonstrated through the annual compliance to the Minimum Performance Criteria. "Property" shall mean the approximate 4.1.67 acre tract of land located within the City of Schertz, Texas at the Verde Enterprise Business Park Unit #10A, Block 12, Lot 1 whereon the Facility will be constructed. "State of Texas" shall mean the Office of the Texas Comptroller, or its successor. "Personal Property" shall mean the total taxable personal property ad valorem tax value reported by the Guadalupe County Appraisal District. ARTICLE IV CORPORATION OBLIGATION 1. Operation Grant. Subject to the satisfaction of all the terms and conditions of this Agreement and the obligation of the Company to repay the Operation Grant pursuant to Article VIII hereof, the Corporation shall pay the Company an Operations Grant in an amount not to exceed TWO HUNDRED THOUSAND and NO/ 100 ($200,000.00), (the "Operation Grant "). M 2. Current Revenue. The Operation Grant shall be paid solely from lawfully available funds of the Corporation. Under no circumstances shall the obligations hereunder be deemed to create any debt within the meaning of any constitutional or statutory provision. The Corporation represents and warrants that it has funds available for distribution sufficient to fully and timely pay the full the Operation Grant, will reserve such funds solely for such purpose, and will not make any special or general allocations of the Corporation's current and future funds that would render the Corporation unable to timely make the full Operation Grant along with its other obligations. None of the obligations under this Agreement shall be pledged or otherwise encumbered in favor of any commercial lender and /or similar financial institution. 3. Confidentiality. The Corporation agrees to keep all information and documentation received pursuant to this Agreement confidential to the extent allowed under the Texas Public Information Act (TPIA). In the event a request is made for such information, Corporation will notify the Company and follow the process stated in the TPIA for determining what information must be released and what information should be withheld until seeking a ruling from the Attorney General of Texas. ARTICLE V PERFORMANCE OBLIGATIONS OF COMPANY The obligation of the Corporation to pay funds from the Operations Grant shall be conditioned upon the Company's continued compliance with and satisfaction of each of the performance obligations set forth in this Agreement. 1. Execution of Lease. Prior to the execution of this Agreement, the Company must have executed a Ten (1.0) year lease for the Facility. The Company shall provide access to the lease agreement to the Executive Director of the Corporation as proof of the satisfaction of this condition. 2. Promotion. Company must actively promote their operations at the Facility identifying the City of Schertz as a preferred location for office development, during the term of this Agreement. 3. Certificate of Occupancy. The Company must obtain a Certificate of Occupancy, for the Facility on or before December 31, 2020 and maintain operations at said Facility throughout the Term of this agreement. 4. Minimum Performance Criteria. Throughout the Term of the Agreement, the Company must create and maintain the following minimum Full Time Employees, Annual Payroll, and Personal Property. Time Period Minimum Performance Criteria Full -Time Employees Annual Payroll Personal Property Year 0 — 2020 68 Not Required Not Required Year 1 — 2021 87 $4,616,770 $475,000 Year 2 — 2022 87 $4,616,770 $381,250 Year 3 — 2023 87 $4,616,770 $310,250 0 5. Annual Certification Report. The Company shall submit an Annual Certification Report (an "Annual Report") for the preceding Calendar Year to the Executive Director of the Corporation each year no later than February 15th. The Annual Report should substantially conform to the Annual Report Form attached as Exhibit A to this Agreement. The first Annual Report will be due February 15th, 2021. 6. Payment of Legal Fees. Each Party shall bear its own legal fees in connection with the negotiation of this Agreement. The Company commits to reimburse the Corporation for the necessary legal fees in the preparation of any amendments to this Agreement, if and when such amendment is required by the Company. Timely payment shall be made within sixty (60) days of submittal of invoice to the Company by the Corporation or its assigns. ARTICLE VI COVENANTS AND DUTIES 1. The Company's Covenants and Duties. The Company makes the following covenants and warranties to the Corporation, and agrees to timely and fully perform the obligations and duties contained in Article V of this Agreement. Any false or substantially misleading statements contained herein or failure to timely and fully perform those obligations and duties within this Agreement shall be an act of Default by the Company. (a) The Company is authorized to do business and is in good standing in the State of Texas and shall remain in good standing in the State of Texas during any Term of this Agreement. (b) The execution of this Agreement has been duly authorized by the Company's authorized agent, and the individual signing this Agreement is empowered to execute such Agreement and bind the Company. Said authorization, signing, and binding effect is not in contravention of any law, rule, regulation, or of the provisions of the Company's operating agreement, or of any agreement or instrument to which the Company is a party to or by which it may be bound. (c) The Company is not a party to any Bankruptcy proceedings currently pending or contemplated, and the Company has not been informed of any potential involuntary Bankruptcy proceedings. (d) To its current, actual knowledge, the Company has acquired and maintained all necessary rights, licenses, permits, and authority to carry on its business in the City and will continue to use its best efforts to maintain all necessary rights, licenses, permits, and authority. (e) The Company agrees to obtain or cause to be obtained, all necessary permits and approvals from City and/or all other governmental agencies or private authorities having jurisdiction over the construction of the Facility. 0 (f) The Company shall be responsible for paying, or causing to be paid, to the City and all other governmental agencies or private authorities the cost of all applicable permit fees and licenses required for construction of the Facility. The Company agrees to construct the Facility in accordance with the ordinances, rules, and regulations of the City in effect on the date the Road Plan Set is approved by the City. The Company, in its sole discretion, may choose to comply with any or all City rules promulgated after the Effective Date of this Agreement. (g) The Company agrees to commence and complete the Project in strict accordance with this Agreement. (h) The Company shall cooperate with the Corporation in providing all necessary information to assist them in complying with this Agreement. (i) During the Term of this Agreement, Company agrees to not knowingly employ any undocumented workers as part of the Project, and, if convicted of a violation under 8 U.S.C. Section 1324a (1), Company shall be in Default (subject to the remedies in Article V above). Company is not liable for an unknown violation of this Section by a subsidiary, affiliate, or franchisee of Company or by a person . with whom Company contracts provided however that identical federal law requirements provided for herein shall be included as part of any agreement or contract which Company enters into with any subsidiary, assignee, affiliate, or franchisee for which the Operation Grant provided herein will be used. 0) Company shall not be in arrears and shall be current in the payment of all taxes and fees. 2. Corporation's Covenants and Duties. (a) The Corporation is obligated to pay the Company an Operations Grant in the amount not to exceed TWO HUNDRED THOUSAND and NO /100 ($200,000.00). The Operations Grant shall be paid in accordance with Article IV, Section 1 within forty -five (45) days after receiving written notice from the Company that they have received a Certificate of Occupancy for the Facility. (b) The Corporation represents and warrants to the Company that this Agreement is within their authority, and that they are duly authorized and empowered to enter into this Agreement, unless otherwise ordered by a court of competent jurisdiction. 3. Compliance and Default. Failure by the Company to timely comply with any performance requirement, duty, or covenant shall be considered an act of Default and shall give the Corporation the right to terminate this Agreement and collect the Recapture Amount (as defined below), if applicable. 7 ARTICLE VII TERMINATION 1. Termination. This Agreement shall terminate upon the earliest occurrence of any one or more of the following: (a) The written agreement of the Parties, or their affiliates, successors or assigns; (b) The Agreement's Expiration Date; or (c) Default by the Company of the terms and conditions set forth herein. ARTICLE VIII DEFAULT 1. The Company's Events of Default. The following shall be considered an Event of Default by the Company: (a) Failure of the Company to perform any term, covenant or agreement contained in this Agreement; (b) The Corporation determines that any representation or warranty contained herein or in any financial statement, certificate, report or opinion prepared and submitted to Corporation in connection with or pursuant to the requirements of this Agreement was incorrect or misleading in any material respect when made; (c) Any judgment is assessed against the Company or any attachment or other levy against the property of the Company with respect to a claim remains unpaid, unstayed on appeal, not discharged, not bonded or not dismissed for a period of ninety (90) days; (d) The Company makes an assignment for the benefit of creditors; files a petition in bankruptcy; is adjudicated insolvent or bankrupt; petitions or applies to any tribunal for any receiver or any trustee of the Company; commences any action relating to the Company under any reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction whether now or hereafter in effect; or if there is commenced against the Company any such action and such action remains undismissed or unanswered for a period of ninety (90) days from such filing; or (e) The Company changes its present ownership more than fifty -one (51%) without written notification to the Corporation within thirty (30) days of such change. 2. Corporation Events of Default. The Corporation fails to fulfill an obligation set forth within the terms and conditions of this Agreement. 3. Remedies for Default (a) The Company's sole remedy under this Agreement is specific performance for Corporation's Default of its obligations under Section IV of this Agreement. (b) In the event of Default by the Company the Corporation shall, as its sole and exclusive remedy for Default hereunder, have the right to terminate this Agreement and to recapture eighty -seven and one -half percent (87.5 %) of the Operation Grant plus two percent (2.00 %) annual interest (the "Recapture Amount "). The Recaptured Amount shall be paid by the Company within one hundred twenty (120) days after the date the Company is notified by the Corporation of such Default (the "Payment Date "). In the event the Recaptured Amount is not repaid by the applicable Payment Date, the unpaid portion thereof shall accrue interest at the rate of five percent (5.00 %) per annum from the Effective Date until paid in full. (c) In the event of Default is related to a failure to comply with Article V, (2), Promotion, the recapture amount stated in (b) above shall be 100% of the Operations Grant plus two percent (2.00 %) annual interest. The Recaptured Amount shall be paid by the Company within one hundred twenty (120) days after the date the Company is notified by the Corporation of such Default (the "Payment Date "). In the event the Recaptured Amount is not repaid by the applicable Payment Date, the unpaid portion thereof shall accrue interest at the rate of five percent (5.00 %) per annum from the Effective Date until paid in full. 4. Limitation on Use of Funds in the Event of Default. Under no circumstances will the funds received under this Agreement be used, either directly or indirectly, to pay costs or attorney fees incurred in any adversarial proceeding regarding this Agreement against the City or the Corporation. ARTICLE IX MISCELLANEOUS I . Binding Agreement. The terms and conditions of this Agreement shall be binding on and inure to the benefit of the :Parties, and their respective successors and assigns. The Executive Director of the Corporation shall be responsible for the administration of this Agreement and shall have the authority to execute any instruments, duly approved by the Corporation, on behalf of the Parties related thereto. 2. Mutual Assistance. The Parties will do all things reasonably necessary or appropriate to carry out the terms and provisions of this Agreement and to aid and assist each other in carrying out such terms and provisions. 3. Assignment. The Company shall have the right to assign all or part of its rights, duties, and obligations under this Agreement to a duly qualified third party with prior written approval of the Corporation, which approval shall not be unreasonably withheld, conditioned or delayed. Any assignment provided for herein shall not serve to enlarge or diminish the obligations and requirements of this Agreement, nor shall they relieve the Company of any liability to the 0 Corporation including any required indemnity in the event that any Assignee hereof shall at any time be in Default of the terms of this Agreement The Corporation may demand and receive adequate assurance of performance including the deposit or provision of financial security by any proposed assignee prior to its approval of an assignment. 4. Independent Contractors. (a) It is expressly understood and agreed by all Parties hereto that in performing their services hereunder, Company at no time will be acting as an agent of the Corporation and that all consultants or contractors engaged by Company respectively will be independent contractors of Company; and nothing contained in this Agreement is intended by the Parties to create a partnership or joint venture between the Parties and any implication to the contrary is hereby expressly disavowed the Parties hereto understand and agree that the Corporation will not be liable for any claims that may be asserted by any third party occurring in connection with services performed by Company respectively under this Agreement, unless any such claims are due to the fault of the Corporation. (b) By entering into this Agreement, except as specifically set forth herein, the Parties do not waive, and shall not be deemed to have waived, any rights, immunities, or defenses either may have, including the defense of parties, and nothing contained herein shall ever be construed as a waiver of sovereign or official immunity by the Corporation with such rights being expressly reserved to the fullest extent authorized by law and to the same extent which existed prior to the execution hereof. (c) No employee of the Corporation, or any board member, or agent of the Corporation, shall be personally responsible for any liability arising under or growing out of this Agreement. 5. Notice. Any notice required or permitted to be delivered hereunder shall be deemed delivered by actual delivery, or on the first business day after depositing the same in the hands of a reputable overnight courier (such as United States Postal Service, FedEx or UPS) and addressed to the Party at the address set forth below: If intended for SEDC: City of Schertz Economic Development Corporation Attention: Exec. Dir. of Economic Development 1400 Schertz Parkway Schertz, TX 78154 With a copy to: Denton, Navarro, Rocha, Bernal, & Zech, PC Attention: Charles E. Zech 251.7 North Main Avenue San Antonio, TX 78212 1.0 If to Cop1pan Nexus Enterprises, LLC. Attention: Ed Bolton, President and Chief Executive Officer 1650 Independence Dr. New Braunfels, TX 78132 Any Party may designate a different address at any time upon written notice to the other Parties. 6. Governmental Records. All invoices, records and other documents required for submission to the City pursuant to the terms of this Agreement are Governmental Records for the purposes of Texas Penal Code Section 3 7. 10. 7. Governing La . The Agreement shall be governed by the laws of the State of Texas, and the venue for any action concerning this Agreement shall be in the Courts of Guadalupe County. The Parties agree to submit to the personal and subject matter jurisdiction of said court. 8. Amendment. This Agreement may be amended by mutual written agreement of the Parties, as approved by the Board of Directors of the Corporation. 9. Legal Construction. In the event any one or more of the provisions contained in this Agreement shall, for any reason, be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect other provisions of this Agreement, and it is the intention of the Parties to this Agreement that, in lieu of each provision that is found to be illegal, invalid, or unenforceable, a provision be added to this Agreement which is legal, valid and enforceable and is as similar in terms as possible to the provision found to be illegal, invalid, or unenforceable. 10. InteKpretation. Each of the Parties has been represented by counsel of their choosing in the negotiation and preparation of this Agreement. Regardless of which Party prepared the initial draft of this Agreement, this Agreement shall, in the event of any dispute, whatever its meaning or application, be interpreted fairly and reasonably and neither more strongly for or against any Party. 11. Entire Agreeme . This Agreement constitutes the entire agreement between the Parties with respect to the subject matter covered in this Agreement. There is no other collateral oral or written agreement between the Parties that, in any manner, relates to the subject matter of this Agreement, except as provided for in any Exhibits attached hereto or duly approved amendments to this Agreement, as approved by the Board of Directors of the Corporation. 12. Paragrqph Headings. The paragraph headings contained in this Agreement are for convenience only and will in no way enlarge or limit the scope or meaning of the various and several paragraphs. 13. CounteTqrts. This Agreement may be executed in counterparts. Each of the counterparts shall be deemed an original instrument, but all of the counterparts shall constitute one and the same instrument. 1.4. Exhibits. Any exhibits attached hereto are incorporated by reference for all purposes. 15. Survival of Covenants. Any of the representations, warranties, covenants, and obligations of the Parties, as well as any rights and benefits of the Parties, pertaining to a period of time following the termination of this Agreement shall survive termination. 1.6. Indemnification. COMPANY AGREES TO DEFEND, INDEMNIFY AND HOLD THE CORPORATION AND THE CITY, AND THEIR RESPECTIVE OFFICERS, AGENTS AND EMPLOYEES HARMLESS FROM AND AGAINST ANY AND ALL REASONABLE LIABILITIES, DAMAGES, CLAIMS, LAWSUITS, JUDGEMENTS, ATTORNEY FEES, COSTS, EXPENSES AND ANY CAUSE OF ACTION THAT DIRECTLY RELATES TO ANY OF THE FOLLOWING: ANY CLAIMS OR DEMANDS BY THE STATE OF TEXAS THAT THE CORPORATION WAS BEEN ERRONEOUSLY OR OVER -PAID SALES AND USE TAX FOR ANY PERIOD DURING THE TERM OF THIS AGREEMENT AS A RESULT OF THE FAILURE OF COMPANY TO MAINTAIN A PLACE OF BUSINESS AT THE PROPERTY OR IN THE CITY OF SCHERTZ, OR AS A RESULT OF ANY ACT OR OMISSION OR BREACH OR NON - PERFORMANCE BY COMPANY UNDER THIS AGREEMENT EXCEPT THAT THE IMDEMNITY PROVIDED HEREIN SHALL NOT APPLY TO ANY LIABILITY RESULTING FROM THE ACTION OR OMISSIONS OF THE CORPORATION OR CITY. THE PROVISIONS OF THIS SECTION ARE SOLELY FOR THE BENEFIT OF THE PARTIES HERETO AND NOT INTENDED TO CREATE OR GRANT ANY RIGHTS, CONTRACTUAL OR OTHERWISE, TO ANY OTHER PERSON OR ENTITY. IT BEING THE INTENTION OF THE PARTIES THAT COMPANY SHALL BE RESPONSI.BLE FOR THE REPAYMENT OF ANY FUNDS PAID TO COMPANY HEREIN THAT INCLUDES CITY SALES TAX RECEIPTS THAT THE STATE OF TEXAS WAS DETERMINED WAS ERRONEOUSLY PAID, DISTRIBUTED OR ALLOCATED TO THE CORPORATION. 17. Additional Instruments. The Parties agree and covenant to cooperate, negotiate in good faith, and to execute such other and further instruments and documents as may be reasonably required to fulfill the public purposes provided for and included within this Agreement. 1.8. Force Majeure. Whenever a period of time is herein prescribed for action to be taken by Company, Company shall not be liable or responsible for, and there shall be excluded from the computation of any such period of time, any delays due to causes of any kind whatsoever which are caused by Force Majeure. 19. Time Periods. Unless otherwise expressly provided herein, all periods for delivery or review and the like will be determined on a "calendar" day basis. If any date for performance, approval, delivery or Closing falls on a Saturday, Sunday or legal holiday (state or federal) in the State of Texas, the time therefor will be extended to the next day which is not a Saturday, Sunday or legal holiday. [SIGNATURE PAGE IMMEDIATELY FOLLOWING] 1.2 Executed on this day of 12019. COMPANY: Nexus Enterprises, LLC. a Texas limited liability company Lo STATE OF TEXAS COUNTY OF COMAL Larry Edward Bolton President and Chief Executive Officer This information was acknowledged before me on this day of 1 2019 by Larry Edward Bolton, as President and Chief Executive Officer Nexus Enterprises, LLC., a Texas limited liability company, on behalf of said company. Notary Public, State of Texas Notary's typed or printed name My commission expires 13 Executed on this day of , 2019. CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION Lo Name: Paul Macaluso Title: President COUNTY OF GUADALUPE This information was acknowledged before me on this day of , 2019 . by Paul Macaluso, as President of the City of Schertz Economic Development Corporation, a Texas non - profit industrial development corporation, on behalf of said agency. APPROVED AS TO FORM: : , SEDC Attorney 1.4 Notary :Public, State of Texas Notary's typed or printed name My commission expires EXHIBIT A / 10` 10 `1 MEN WoN.MIIIIUMY[110MRm01ItyY (See Attached) 1.5 Annual Certification Report Reporting Period: January 1 to December 31, 20_ The Annual Certification Report for the Economic Development Performance Agreement between the City of Schertz Economic Development Corporation and Nexus Enterprises, LLC., is due on February 15, 20_. Please sign and return the Annual Certification Report form with accompanying narrative. Project Information: The Company's legal name: Project address subject to incentive: The Company's primary contact: Phone number: Employment and Wage Information: E -mail address: Has the Company employed undocumented workers? Yes No Title: What is the total number of Full -Time Employees located at the Facility during the calendar year? What is the total Annual Payroll for the Schertz Facility during the calendar year? Investment Information: What is the Company's Personal Property value for the reporting period? Narrative: Please attach a brief narrative explaining the current year's activities and /or comments relating to any potential defaults. Employment: Total Full -Time Employees: [Number of direct hires: Number of contract employees: ] Total Annual Payroll: Number of Full -Time Employees added in past year: Number of employees that live in Schertz, Texas: Interested in being contacted about workforce training opportunities? Yes No Interested in being contacted for assistance with City permits? Yes No 16 I certify that, to the best of my knowledge and belief, the information and attachments provided herein are true and accurate and in compliance with the terms of Economic Development Performance Agreement. I further certify that the representations and warranties contained within the Agreement remain true and correct as of the date of this Certification, and Nexus Enterprises, LLC., remakes those representations and warranties as of the date hereof. I further certify that the employment and wage information provided is true and accurate to the best of my knowledge and I can provide documentation from the Texas Workforce Commission to support my claim if so requested. I understand that this Certificate is being relied upon by the SEDC in connection with the expenditure of public funds. 1 have the legal and express authority to sign this Certificate on behalf of Nexus Enterprises, LLC. Name of Certifying Officer Phone Number Certifying Officer's Title E -Mail Address Signature of Certifying Officer Date STATE OF TEXAS X COUNTY OF X This information was acknowledged before me on this day of by for Nexus Enterprises, LLC., a Texas limited partnership, on behalf of said agency. Notary Public, State of Texas Notary's typed or printed name My commission expires The Annual Certification Report is to be completed, signed and returned on or before February 15, 20_. Please send an original to the following address: Attention: Executive Director City of Schertz Economic Development Corporation 1400 Schertz Parkway, Bldg. No. 2 Schertz, TX 78154 1.7 ei IRIUM City Council June 25, 2019 Meeting: Department: Engineering Agenda No. 11. Subject: Resolution No. 19-R-72 - Consideration and/or action approving a resolution by the City Council of the City of Schertz, Texas, requesting assistance from the Texas Department of Transportation in the form of a planning study for intersection improvements including an overpass structure on FM 3009 across the Union Pacific railroad tracks and FM 78 in Schertz and other matters in connection therewith. (B. James /K. Woodlee) 1 YXI GX i IGIl►17 Over past years, both the City of Schertz and the Texas Department of Transportation (TxDOT) have explored the possibilitiy of and need for improvements to FM 3009 at its intersection with FM 78 and its extension from that intersection south to IH 10. Since 2002, the extension of FM 3009 has been part of the City's adopted Master Thoroughfare Plan due to a demonstrated need for the additional north -south arterial connection in that vicinity. The purpose of having a planned future roadway on the City's Thoroughfare Plan is to preserve a feasible alignment from development so that the connection can be made when needed without. One of the biggest challenges with respect to the extension of FM 3009 is the identification of the specific alignment and right of way that needs to be preserved through dedication for an interchange that includes a grade separation from the railway that parallels FM 78. Several owners and developers of property in proximity to the intersection of FM 3009 and FM 78 have indicated an intention to entitle and develop the property. Staff has recognized that these properties are likely impacted by a need for right of way for the potential interchange. In order to not unduly further delay decisions regarding the development process, right of way needs must be identified. Due to the technical complexity of such a project, assistance and expertise of other sources is also needed. Based on the magnitude of expected costs associated with an extension of FM 3009 (or a grade separation from the railroad alone), the majority of funding will need to come from state and federal sources. In order to be eligible for various types of funding, it is important that this potential project be added to TxDOT and AAMPO long range plans. The first step toward that end is for the City to officially reach out to the organizations to request assistance. City Staff has sought direction from Council regarding the right of way dedication requirements for a potential overpass structure on FM 3009 over the railroad tracks at the intersection with FM 78. Discussion during the March 26, 2019, regular meeting, Council indicated a desire for Staff to initiate an investigation of feasibility and route determination for a future overpass toward an extension of FM 3009 to the south and to enlist the input and assistance first of the Texas Department of Transportation (TxDOT) and then the Alamo Area Metropolitan Planning Organization ( AAMPO) to that end. Staff met with TxDOT and they indicated their support for the project. TxDOT suggested that the City take the lead in the form of a formal request for their involvement. GOAL The proposed resolution serves multiple goals. Primarily, it provides a formal request to TxDOT to assist the City with a study of the intersection of FM 3009 and FM 78 with respect to a railroad overpass and the ultimate extension of FM 3009 to IH 10. One of the outcomes of that study will be identification of the right of way needs for the interchange at the intersection. It is also the first step toward inclusion on the long and short range plans for TxDOT and AAMPO. COMMUNITY BENEFIT A grade - separated crossing of FM 78 and the railroad tracks at FM 3009 will help to eliminate significant traffic backup issues in all directions around that intersection. The ultimate extension of FM 3009 will provide an additional direct north -south connection of IH 35 and IH 10 within the City to support long -term thoroughfare needs of the community. Staff recommends that Council approves the resolution formally requesting assistance from TxDOT with planning related to the intersection of FM 3009 and FM 78. FISCAL IMPACT There is no fiscal impact directly tied to this Resolution. City Staff recommends approval of Resolution 19 -R -72. Attachments Resolution 19 -R -72 RESOLUTION NO. 19 -R -72 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, REQUESTING ASSISTANCE FROM THE TEXAS DEPARTMENT OF TRANSPORTATION IN THE FORM OF A PLANNING STUDY FOR INTERSECTION IMPROVEMENTS INCLUDING AN OVERPASS STRUCTURE ON FM 3009 ACROSS THE UNION PACIFIC RAILROAD TRACKS AND FM 78 IN SCHERTZ AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City Council of Schertz has determined the need for a future extension of FM 3009 from FM 78 to IH 10 as evidenced by its inclusion in the City's Master Thoroughfare :Plan; and WHEREAS, the extension of FM 3009 to the south will include a grade separation over the railroad tracks for which right of way needs must be accurately determined; and WHEREAS, the City Council of Schertz wishes to request that the Texas Department of Transportation (TxDOT) provide assistance with determination of those right of way needs; and WHEREAS, the extension of FM 3009 to the south will improve mobility within Schertz and in the greater Schertz region; and WHEREAS, the City Council of Schertz further wishes to request that TxDOT provide input with respect to the inclusion of the FM 3009 overpass and ultimate extension to IH 10 in TxDOT and AAMPO long range plans for future funding eligibility; and BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, THAT: 1. The City Council of Schertz requests that TxDOT provide assistance to the City in the form of a planning study at the intersection of FM 3009 and FM 78, including a railroad grade separation of FM 3009 and the right of way needs for a feasible interchange at the intersection. 2. The City Council of Schertz further requests that TxDOT consider and assist the City with the steps necessary to have the extension of FM 3009 from FM 78 to IH 10 added to the long range plan of the Alamo Area Metropolitan Planning Organization ( AAMPO). 3. 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. 4. 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. 5. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. 6. 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. 7. 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. 8. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 25th day of June, 2019 CITY OF SCHERTZ, TEXAS Michael Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) Agenda No. 13. ei Olum City Council Meeting: June 25, 2019 Department: Parks, Recreation & Community Servic Subject: Pickrell Park Basketball Goals Update Staff started to notice some failures in the metal the basketball goals hung from and had one break and fall. Staff brought in a structural engineer to evaluate the situation as it appeared some of the roof beams may be damaged. The structural engineer's report cited that the structure wasn't likely engineered to hold hanging basketball goals, and recommended we not add any additional weight to the roof structure. Our original plans to add new retractable goals was then halted. Since it was in the engineer's opinion that the goals had been up in their current condition for many years they would probably be fine going back up as they were but raised in height (previously they weren't at regulation height so everyone was dunking on them.) This would eliminate some of the wear and tear which ultimately results in metal fatigue. Staff proceeded with repairing the goals and asked the structural engineer to assess the repaired condition. As part of that review they had a specialist look at the welds and they did not pass the inspection. Since the original engineer's assessment did not confirm that the integrity of the roof could indeed hold the weight, and ultimately the installation of these goals were not done in a manner that follows best practices, staff is not recommending that we continue to invest money in ceiling- mounted basketball goals. Staff is going to proceed with installing new post- mounted basketball goals that have fiberglass backboards and breakaway rims (current backboards are metal welded to metal which doesn't give and throws off the shot) and the breakaway rims will hinder excessive dunking and prolong the life of the goals. The goals will be installed under the pavilion in the concrete (like was there many years ago.) The plan is to install them at the edge of the slab and/or mount them in a sleeve so they are removable, so as not to interfere with special events that are hosted at this multi - purpose facility. GOAL The goal is to install basketball goals back at Pickrell Park in a cost - effective and safe manner. COMMUNITY BENEFIT The new basketball goals will provide a shaded basketball court for the central Schertz area and bring back a heavily used feature at Pickrell Park. Staff is going to proceed with installing new post- mounted basketball goals that have fiberglass backboards and breakaway rims (current backboards are metal welded to metal which doesn't give and throws off the shot) and the breakaway rims will hinder excessive dunking and prolong the life of the goals. The goals will be installed under the pavilion in the concrete (like was there many years ago.) The plan is to install them at the edge of the slab and/or mount them in a sleeve so they are removable, so as not to interfere with special events that are hosted at this multi - purpose facility. Hmffie �Q" Four new basketball goals will cost approximately $4,000 RECOMMENDATION Staff is going to proceed with installing new post- mounted basketball goals that have fiberglass backboards and breakaway rims (current backboards are metal welded to metal which doesn't give and throws off the shot) and the breakaway rims will hinder excessive dunking and prolong the life of the goals. The goals will be installed under the pavilion in the concrete (like was there many years ago.) The plan is to install them at the edge of the slab and/or mount them in a sleeve so they are removable, so as not to interfere with special events that are hosted at this multi- purpose facility. Agenda No. 14. ei Olum City Council June 25, 2019 Meeting: Department: Parks, Recreation & Community Servic Subject: Dedicated Trail Funding Request from the Parks & Recreation Advisory Board At the May 21, 2019 Parks & Recreation Advisory Board meeting the board made a motion for staff to provide a written update to Council on their request to add $250,000 in dedicated trail funding to the Parks budget. Advisory Board Vice Chair John Sullivan gave a presentation regarding the need for trails in Schertz based on the results of the 2016 Citizen Satisfaction Survey and the 2013 Parks & Recreation Master Plan, both of which showed trails and hiking and biking opportunities as top priorities. There was much discussion about how trails have been talked about for many years, but only short segments or loops in parks have been added and the desire is to create a system of off -road trails (not sidewalks) that traverse longer distances and connect the different areas of the city. It was recognized that a dedicated funding mechanism was needed to accomplish this vision and the board felt —just like in the same vein that council injected $200,000 into deferred maintenance projects - a similar amount would need to be designated for trail development to be able to see a tangible difference in the miles of trails that are added each year and begin to achieve the goal. GOAL The goal is to have a dedicated funding mechanism to develop an off -road trail system in the City of Schertz. COMMUNITY BENEFIT The Parks & Recreation Advisory Board feels like an off -road trail system is something that Schertz could be known for in the region. Several members made the point that we don't have the rivers that New Braunfels have, we don't have the River Walk that San Antonio has, but we can be the city that has the best trail system in the region. k111104 104 Ell "0 a 7 0[93 41►/ 1140 11 0111XIXON I [11L, The Parks & Recreation Advisory Board made a motion to recommend $250,000 in dedicated trail funding be added to the Parks Budget each year. The fiscal impact would be $250,000 in dedicated trail funding to be added to the Parks Budget each year. RECOMMENDATION The Parks & Recreation Advisory Board made a motion to recommend $250,000 in dedicated trail funding be added to the Parks Budget each year. Agenda No. 15. ei IRIUM City Council June 25, 2019 Meeting: Department: Planning & Community Development Subject: Update on Planning and Zoning Commission evaluation of PIT Pads and Short Term Rentals After several presentations and discussions the City Council instructed the Planning and Zoning Commission, with the aid of staff, to evaluate and provide a recommendation regarding Pilot in Training (PIT) Pads and short term rentals. Staff subsequently conducted a series of workshop discussions with public hearings at the March 27, 2019; May 8, 2019; and June 12, 2019 Planning and Zoning Commission meetings. During those meetings staff presented on various aspects including surrounding and target city regulations, land use definitions, and building code regulations. The Commission evaluated and discussed different options for regulation, resident concerns and the scope and scale of the rental occurrence. It was the consensus of the Commission that no new regulations should be created at this time for either the PIT Pads or Short Term Rentals and for Staff to continue to monitor these issues and if there is a change in condition, to return to the Commission. This recommendation is based on relatively few properties being utilized as rentals and that the citizen complaints related to them were similar to those you would find in any traditional neighborhood (such as cars parked on street, landscape maintenance, and occasional litter). Additionally, regulations are already in place to address the issues brought up of noise or cars blocking driveways, and residents with these complaints should contact the Police Department so that an Officer can be dispatched to immediately address the concerns.