2005R24- AMENDING BY-LAWS OF THE SSLGC
City of Schertz
State of Texas
County of Guadalupe
RESOLUTION No. 05-R~24
A RESOLUTION AMENDING THE BY-LAWS OF THE
SCHERTZ SEGUIN LOCAL GOVERNMENT CORPORATION
WHEREAS, it is in the best interest of the Schertz Seguin Local Government
Corporation to amend the By-Laws of Corporation,
WHEREAS, subject to approval by the City Councils of Schertz and Seguin, the
Corporation By-Laws are hereby amended to incorporate the position of General
Manager.
WHEREAS, the By-Laws attached hereto as Exhibit "A" and incorporated herein for all
purposes represents the proposed amendments of the Schertz Seguin Local
Government Corporation,
NOW, THEREFORE, BE IT RESOLVED and ORDERED by the City Council of the City
of Schertz that:
1. The City of Council of the City of Schertz hereby approves the amended
By-Laws of the Schertz Seguin Local Government Corporation.
2. The By-Laws of the Schertz Seguin Local Government Corporation are
hereby amended.
PASSED AND APPROVED THIS, A8 tb
DAY OF
,2005.
H Baldwin, Mayor
City of Schertz
Attest:
'-_.f
BY-LAWS
OF THE
SCHERTZ/SEGUIN LOCAL GOVERNMENT CORPORATION
Table of Contents
A1:ticle I: Purpose and Powers
Section 1.1 Name
Section 1.2 Purpose
Section 1.3 Powers
Section 1. 4 Nonprofit Corporation
A1:ticle II: Board of Directors
Section 2.1 Powers, Number and Term of Office
Section 2.2 Additional Powers
Section 2.3 Meetings of Directors
Section 2.4 Open Meetings Act
Section 2.5 Quorum
Section 2.6 Conduct of Business
Section 2.7 Committees of the Board
Section 2.8 Compensation of Directors
A1:ticle III: Officers
Section 3.1 Tides and Terms of Office
Section 3.2 Powers and Duties of the President
Section 3.3 Vice President
Section 3.4 Treasurer
Section 3.5 Secretary
Section 3.6 General Managet
Section 3.7 Additional Pruvisions Relating to Officers
Section 3.8 Compensation
A1:ticle IV: Functional Corporate Duties and Requirements
Section 4.1 Schertz/Seguin Local Government Corporation Plan
Section 4.2 Annual Corporate Budget
Section 4.3 Books, Records and Audits
Section 4.4 Deposit and Investment of Corporation Funds
Section 4.5 Expenditure of Corporate Money
Section 4.6 Issuance of Obligations
A1:ticle V: Miscellaneous Provisions
Section 5.1 Principal Office
Section 5.2 Fiscal Year
Section 5.3 Seal
Section 5.4 Resignations
Section 5.5 Approval or Advice and Consent of the Governing Body
Section 5.6 Indemnification of Directors, Officers and Employees
A1:ticle VI: Effective Date, Amendments and Miscellaneous
Section 6.1 Effective Date
Section 6.2 Amendments to A1:ticles of Incorporation and Bylaws
Section 6.3 Interpretation of Bylaws
Section 6.4 Dissolution
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ARTICLE I
PURPOSE AND POWERS
Section 1.1 Name.
The name of the nonprofit corporation is the SCHERTZ/SEGUIN LOCAL
GOVERNMENT CORPORATION.
Section 1.2 Pw:pose. The Schertz/Seguin Local Government Corporation (the
"Corporation") is incorporated for the purposes set forth in Article N of its Articles of
Incorporation, the same to be accomplished on behalf of the City of Schertz, Texas ("Schertz")
and the City of Seguin, Texas ("Seguin") as their duly constituted authority and instrumentality in
accordance with Subchapter D of Chapter 431, as amended, Texas Transportation Code (the
"Act"), and other applicable laws of the State of Texas (the "State").
Section 1.3 Powers. In the fulfillment of its corporate purpose, the Corporation shall be
governed by the Act, and shall have all the powers set forth and conferred in its A1:ticles of
Incorporation, in the Act, and in other applicable law, subject to the limitations prescribed therein
and herein and to the provisions thereof and hereof.
Section 1.4 Nonprofit Corporation. The Corporation shall be a public, nonprofit
corporation, and no part of its net earnings remaining after payment of its bonds and expenses
shall inure to the benefit of any person other than Schertz and Seguin (collectively, the "Cities").
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ARTICLE II
BOARD OF DIRECTORS
Section 2.1 Powers. Number and Term of Office.
(a) The property and affairs of the Corporation shall be managed and
controlled by a Board of Directors (the "Board'~ subject to the restrictions imposed by law, the Act,
the Articles of Incorporation, and these Bylaws, the Board shall exercise all of the powers of the
Corporation.
(b) The Board shall consist of five (5) directors. Two (2) directors shall be
appointed initially by a resolution adopted by the Schertz City Council and three (3) directors shall
be appointed initially by a resolution adopted by the Seguin City Council. These initial directors
shall be appointed by, serve the initial terms, be replaced by, and have the subsequent terms as
disclosed in the following table:
Initially Length of Replacement Length of Replacement
Place Annointed Bv Initial Term Annointed Bv Term Annointed Bv
1 Seguin 1 Year Schertz 5 Years Seguin
2 Schertz 2 Years Seguin 5 Years Schertz
3 Seguin 3 Years Schertz 5 Years Seguin
4 Schertz 4 Years Seguin 5 years Schertz
5 Seguin 5 Years Schertz 5 Years Seguin
Thereafter, each member of the Board shall be appointed for five-year terms on a
rotating basis by Schertz or Seguin, as appropriate, until the Corporation is dissolved. A director is
subject to reappointment but must be a resident of either Schertz or Seguin, as appropriate. If any
member of the Board is unable to complete his or her term of office by reason of death,
resignation, disqualification, failure to be a resident of Schertz or Seguin, as appropriate, or for
any other incapacity, a replacement director shall be appointed by the Schertz City Council or
Seguin City Council, as appropriate, based upon the Governing Body that initially appointed the
person to the Board. This replacement director shall be appointed within thirty (30) days of written
notice by the Executive Committee to either the Schertz City Council or the Seguin City Council,
as appropriate, of the need for a replacement director.
In addition, a member of the Schertz City Council and the Seguin City Council,
including either Mayor, shall serve as an ex-officio, non-voting member of the Board for the
purpose of serving as a liaison between the Board and the Schertz City Council or Seguin City
Council, as appropriate. These ex-officio members shall be appointed by, be replaced by, and be
subject to removal by the Schertz City Council or Seguin City Council, as appropriate.
(c) The Schertz City Council and the Seguin City Council are referred to
herein as the "Governing Bodies".
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(d) The number of directors may be changed by amendment to these Bylaws,
but such number must be at least three (3). Any such amendments to the Bylaws shall establish
the methodology for the appointment and terms of the directors.
(e) The directors constituting the initial Board shall be those directors named
in the Articles of Incorporation. Successor directors shall have the qualifications and shall be
appointed to the terms set forth herein.
(f) Any director may be removed from office by the Governing Body that
appointed the director for cause or at any time without cause.
(g) In case of a vacancy in the Board through death, resignation, disqualification,
or other cause or incapacity, a successor to hold office shall be appointed by the appropriate
Governing Body.
Section 2.2 Additional Powers. In addition to the powers and authorities by these Bylaws
expressly conferred upon them, the Board may exercise all such powers of the Corporation and
do all lawful acts and things as are not by statute, other law, or by these Bylaws prohibited.
Without prejudice to such general powers and other powers conferred by statute, other law, and
by these Bylaws, it is hereby expressly declared the Board shall have the powers set forth in the
Act.
Section 2.3 Meetings of Directors. (a) The directors may hold their meetings at such place
or places in Guadalupe County, Texas as the Board may from time to time determine; provided,
however, in the absence of any such determination by the Board, the meetings shall be held at the
principal '!ffice of the Corporation as specified in Section 5.1(a) of these Bylaws. The Corporation
shall also conduct at least one annual regular meeting of the Corporation on September 1 or the
next business day thereafter. In addition, regular meetings of the Board shall be held without the
necessity of notice to directors at such times and places as shall be designated from time to time by
the Board. Special meetings of the Board shall be held whenever called by the president, by the
secretary, by the general manager, by a majority of the directors, or by a majority of either
Governing Body.
(a) Subject to Section 2.4 hereof, the secretary shall give notice to each director of
each special meeting in person or by mail, telephone or e-mail, at least two (2) hours before the
meeting. Unless otherwise indicated in the notice thereof, any and all matters pertaining to the
purposes of the Corporation may be considered and acted upon at a special meeting. At any meeting
at which every director shall be present, even though without any notice, any matter pertaining to
the purpose of the Corporation may be considered and acted upon consistent with applicable law.
(b) Subject to Section 2.4 hereof, except for an emergency meeting, whenever any
notice is required to be given to the Board, said notice shall be deemed to be sufficient if given by
depositing the same in a post office box in a sealed postpaid wrapper addressed to the person
entitled thereto at his or her post office address as it appears on the books of the Corporation, and
such notice shall be deemed to have been given on the day of such mailing. Attendance of a director
at a meeting shall constitute a waiver of notice of such meeting, except attendance of a director at
a meeting for the express purpose of objecting to the transaction of any business on the grounds
that the meeting is not lawfully called or convened. Neither the business to be transacted at nor
the purpose of any regular or special meeting of the Board need be specified in the notice to
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directors or waiver of notice of such meeting, unless required by the Board. A waiver of notice in
writing, signed by the person or persons entitled to said notice, whether before or after the time
stated therein, shall be deemed equivalent to the giving of such notice.
Section 2.4 Open Meetingl' Act. All meetings and deliberations of the Board shall be
called, convened, held, and conducted, and notice shall be given to the public, in accordance with
the Texas Open Meetings Act, as amended, Chapter 551, Texas Government Code.
Section 2.5 Quorum. A majority of the entire membership of the Board shall constitute
a quorum to conduct official business of the Corporation. The act of a majority of the Board
present at a meeting at which a quorum is in attendance shall constitute the act of the Board and of
the Corporation, unless the act of a greater number is required by law.
Section 2.6 Conduct of Business.
(a) At the meetings of the Board, matters pertaining to the business of the
Corporation shall be considered in accordance with rules of procedure as from time to time prescribed
by the Board.
(b) At all meetings of the Board, the president shall preside. In the absence of
the president, the vice president shall preside. In the absence of both the president and vice-
president, a member of the Board selected by the members present, shall preside.
(c) The president shall be a voting member of the Board.
(d) The secretary of the Corporation shall act as secretary of all meetings of
the Board, but in the absence of the secretary, the presiding officer may appoint any person to act
as secretary of the meeting. The general manager, treasurer, and any assistant secretary may, at the
option of the Board, be employees of either Schertz or Seguin and each member of the Board with
the exception of the president, vice president or secretary, may be appointed as assistant secretaries.
Section 2.7 Committees of the Board The Board may designate two (2) or more directors to
constitute an official committee of the Board to exercise such authority, as approved by resolution of
the Board. It is provided, however, that all final, official actions of the Corporation may be
exercised only by the Board. Each committee so designated shall keep regular minutes of the
transactions of its meetings and shall cause such minutes to be recorded in books kept for that
purpose in the principal office of the Corporation and any such meetings must be conducted in
accordance with the provisions of the Texas Open Meetings Act, as amended, Chapter 551, Texas
Government Code, if applicable.
Section 2.8 Compensation of Directors. Directors shall not receive any salary or
compensation for their services as directors. However, they shall be reimbursed for their actual
expenses incurred in the performance of their official duties as directors.
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ARTICLE III OFFICERS
Section 3.1
Tides and Terms of Office.
(a) The officers of the Corporation shall be a president, a vice president, treasurer,
and a secretary, and such other officers as the Board may from time to time elect. One person may
hold more than one office, except that the president shall not hold the office of secretary. Officers
shall serve for three-year terms or until his or her successor is elected or appointed. Upon the
expiration of the terms, each officer shall have the right to be reappointed or reelected.
(b) All officers shall be subject to removal from office at any time by a vote of a
majority of the Board.
(c) An executive committee will consist of the president of the board, the city
manager of Schertz and the city manager of Seguin or the designated representative of each.
Section 3.2 Powers and Duties of the President. The president shall be the chief operating
executive officer of the Corporation, and subject to the authority of the Board, the president shall
be in general charge of the properties and affairs of the Corporation, and execute all contracts,
conveyances, franchises, bonds, deeds, assignments, mortgages, notes and other instruments in the
name of the Corporation. The President shall preside over the meetings of the Corporation.
Section 3.3 Vice President. The vice president shall have such powers and duties as may
be prescribed by the Board and shall exercise the powers of the president during that officer's
absence or inability to act, in their respective order. Any action taken by the vice president in the
performance of the duties of the president shall be conclusive evidence of the absence or inability
to act of the president at the time such action was taken.
Section 3.4 Treasurer. The treasurer shall be the chief fiscal officer of the Corporation,
and shall have the responsibility to see to the handling, custody, and security of all funds and
securities of the Corporation in accordance with these Bylaws. When necessary or proper, the
treasurer may endorse and sign, on behalf of the Corporation, for collection or issuance, checks,
notes, and other obligations in or drawn upon such bank, banks or depositories as shall be
designated by the Board consistent with these Bylaws. The treasurer shall see to the entry in the
books of the Corporation full and accurate accounts of all money received and paid out on
account of the Corporation. The treasurer shall, at the expense of the Corporation, give such bond
for the faithful discharge of his/her duties hi such form, and amount as the Board may require.
All check writing authority will follow all applicable policies adopted by the Governing Bodies
concerning authorizations, signatures and disbursements. It is intended that all checks, drafts, or
other payment obligations of the Corporation must be approved by the President or Vice
President of the Board and City Managers of the two cities.
Section 3.5 Secretal;y. The secretary shall be responsible for keeping the rninutes of all
meetings may sign with the president in the name of the Corporation, and! or attest the signature
thereto, all contracts, conveyances, franchises, bonds, deeds, assignments, mortgages, notes and
other instruments of the Corporation, shall have charge of the corporate books, records,
documents and instruments, except the books of account and financial records and securities, and
such other books and papers as the Board may direct, all of which shall at all reasonable times be
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open to public inspection upon application at the office of the Corporation during business hours,
and shall in general perform all duties incident to the office of secretary subject to the control of
the Board.
Section 3.6 General Manager. The Board of Directors shall appoint a General
Manager of the corporation that shall have full authority to manage the affairs of the
Corporation, subject to the orders of the Board of Directors and to provide administrative
support services for the Corporation and perform any other duties as prescribed by the Board..
Section 3.7 Additional Provisions Relating to Officers. The president, vice president,
treasurer and the secretary shall be named from among the members of the Board. The General
Manager, and any assistant secretary may, at the option of the Board, be employees of Schertz
andf or Seguin. The General Manager shall retain legal counsel and financial advisors for the
Corporation, subject to the approval of the majority of the Board.
Section 3.8 Compensation. Officers who are members of the Board shall not receive any
salary or compensation for their services, except that they shall be reimbursed for the actual
expenses incurred in the performance of their official duties as officers.
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ARTICLE IV
FUNCTIONAL CORPORATE DUTIES AND REQUIREMENTS
Section 4.1
Schertz/Seguin Local Government Corporation Plan.
(a) It shall be the duty and obligation of the Board to establish, fInance, and
implement the Schertz/Seguin Local Government Corporation Plan, subject to approval or
disapproval by each Governing Body.
(b) In carrying out its obligations under subsection (a), the Corporation shall be
authorized to exercise all rights and powers granted under the Act.
(c) The Board shall submit an annual report to each Governing Body as to the
status of its activities in carrying out its obligations under this Section and shall report periodically
as requested in writing by either Governing Body.
(d) Any and all agreements between the Corporation and other parties shall be
authorized, executed, and approved, and delivered in accordance with applicable law.
Section 4.2 Annual Corporate Budget. Prior to the commencement of each fiscal year of
the Corporation, the Board shall adopt a proposed budget of expected revenues from sources set
out in Section 4.5 of this article and proposed expenditures for the next ensuing fIscal year. The
budget shall contain such classifications and shall be in such form as may be prescribed from time
to time by either Governing Body. The budget shall not be effective until the same has been
approved by each Governing Body, which approval shall not be unreasonably withheld.
Section 4.3 Books. Records and Audits.
(a) The Corporation shall keep and properly maintain in accordance with generally
accepting accounting principles, complete books, records, accounts, and financial statements
pertaining to its corporate funds, activities, and affairs.
(b) At the direction of each Governing Body, the books, records, accounts,
and financial statements of the Corporation may be maintained for the Corporation by the
accountants, staff and personnel of the either Schertz and/or Seguin.
(c) The Corporation, or the person selected above, if the option of subsection
(b) is selected, shall cause its books, records, accounts, and financial statements to be studied at
least once each fiscal year by an outside, independent auditing and accounting firm selected by each
Governing Body and approved by the Board. Such an audit shall be at the expense of the
Corporation and shall be delivered to each Governing Body within 150 days of the end of the fiscal
year of the Corporation.
(d) All books and records of the Corporation may be inspected by any director
or his or her agent or attorney for any purpose at any reasonable time and at all times each Governing
Body shall have access to the books, records, and financial statements of the Corporation.
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Section 4.4 Deposit and Investment of Corporation Funds.
(a) All proceeds from loans or from the issuance of bonds, notes, or other
debt instruments ('Obligations") issued by the Corporation in accordance with the provisions of the
Act shall be deposited and invested as provided in the resolution, order, indenture, or other
documents authorizing or relating to their execution or issuance.
(b) Subject to the requirements of contracts, loan agreements, indentures or
other agreements securing Obligations, all other money of the Corporation, if any, shall be
deposited, secured, and/or invested in the manner provided for the deposit, security, and/or
investment of the public funds of Texas municipalities. The Board shall designate the accounts and
depositories to be created and designated for such putposes, and the methods of withdrawal of funds
therefrom for use by and for the purposes of the corporation upon the signature of its treasurer and
such other persons as the Board designates. The accounts, reconciliation, and investment of such
funds and accounts shall be performed by the General Manager, or his designee.
Section 4.5 Expenditure of Corporate Money. The proceeds from the investment of funds
of the Corporation, the proceeds from the sale of property, revenues generated by and payable to the
Corporation pursuant to the Act or any other source of revenues that are payable to the Corporation,
and the proceeds derived from the sale of Obligations, may be expended by the Corporation for any
of the purposes authorized by the Act, subject to the following limitations:
(i) Expenditures that may be made from a fund created with the proceeds of
Obligations, and expenditures of money derived from sources other than the
proceeds of Obligations may be used for the putpose of financing or otherwise
providing for the acquisition, construction, rehabilitation, renovation, repair,
equipping, furnishing and placement in service of public facilities of the
Corporation under the terms of the Act; or
All other proposed expenditures shall be made in accordance with and shall
be set forth in the annual budget required by Section 4.2 or in contracts
meeting the requirements of Section 4.1(d) of this A1:ticle.
Section 4.6 Issuance of Obligations. No Obligations, including refunding obligations, shall
be authorized or sold and delivered by the Corporation unless each Governing Body approves such
Obligations by action taken prior to the date of initial delivery of the Obligations to the initial
purchasers thereof.
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ARTICLE V
MISCElLANEOUS PROVISIONS
Section 5.1 Principal Office.
(a) The principal office and the registered office of the Corporation shall be
located at 600 River Drive West, Seguin, Texas 78155.
(b) The Corporation shall have and shall continually designate a registered agent
at its office, as required by the Act.
Section 5.2 Fiscal Year. The fiscal year of the Corporation shall commence on October 1"
and shall conclude on September 30'" of each year.
Section 5.3 Seal. The seal, if any, of the Corporation shall be determined by the Board.
Section 5.4 Resignations. Any director or officer may resign at any time. Such resignation
shall be made in writing and shall take effect at the time specified therein, or, if no time is specified,
at the time of its receipt by the president or secretary. The acceptance of resignation shall not be
necessary to make it effective, unless expressly so provided in the resignation.
Section 5.5 Approval or Advice and Consent of the Governing Body. To the extent that
these Byhws refer to any approval by the Governing Body or refer to advice and consent by the
Governing Body, such advice and consent shall be evidenced by a certified copy of a resolution,
order, ordinance, or motion duly adopted by the Governing Body.
Section 5.6 Indemnification of Directors. Officers and Employees.
(a) The Corporation is, for the purposes of the Texas Tort Claims Act
(Subchapter A, Chapter 101, Texas Civil Practices and Remedies Code), a governmental unit and its
actions are governmental functions.
(b) The Corporation shall indemnify each and every member of the Board, its
officers and its employees and each member of the Board and each employee of the Corporation, to
the fullest extent permitted by law, against any and all liability or expense, including attorneys fees,
incurred by any of such persons by reason of any actions or omissions that may arise out of the
sanctions and activities of the Corporation; provided, however, that the Corporation may not
plOovide indemnity in any manner if the director, officer, employee, or agent is guilty of negligence
or misconduct in relation to the matter. The legal counsel for the Corporation is authorized to
provide a defense for members of the Board, officers, and employees of the Corporation.
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ARTICLE VI
EFFECTIVE DATE, AMENDMENTS; MISCELLANEOUS
Section 6.1. Effective Date. These Bylaws shall become effective upon the occurrence of
the following events:
(1) the approval of these Bylaws by each Governing Body, which approval may
be granted prior to the creation of the Corporation; and
(2) the adoption of the Bylaws by the Board.
Section 6.2 Amendments to A1:ticles of Incorporation and Bylaws. The A1:ticles of
Incorporation of the Corporation and these Bylaws may be amended only in the manner provided
in the A1:ticles ofIncorporation and the Act.
Section 6.3 Interpretation of Bylaws. These Bylaws shall be liberally construed to
effectuate the purposes set forth herein. If any word, phrase, clause, sentence, paragraph, section or
other part of these Bylaws, or the application thereof to any person or circumstances, shall ever be
held to be invalid or unconstitutional by any court of competent jurisdiction, the remainder of these
Bylaws and the application of such word, phrase, clause, sentence, paragraph, section or other part
of these Bylaws to any other person or circumstance shall not be affected thereby.
Section 6.4 Dissolution. Upon the dissolution of the Corporation after payment of all
obligations of the Corporation, all remaining assets of the Corporation shall be transferred to the
Schertz and Seguin, on an equal basis.
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SCHERTZ SEGUIN LOCAL GOVERNMENT CORPORATION
COUNTY OF GUADALUPE
STATE OF TEXAS
A RESOLUTION AMENDING THE BY.LAWS OF THE
SCHERTZ SEGUIN LOCAL GOVERNMENT CORPORATION
WHEREAS, it is in the best interest of the Corporation to amend the By-Laws of
Corporation.
WHEREAS, subject to approval by the City Councils of Schertz and Seguin, the
Corporation By-Laws are hereby amended to incorporate the position of General
Manager.
WHEREAS, the By-Laws attached hereto as Exhibit "A" and incorporated herein for all
purposes represents the proposed amendments of the Board.
NOW, THEREFORE, BE IT RESOLVED and ORDERED by the Board of Directors of
the Schertz-Seguin Local Government Corporation that:
1. The Board hereby approves the amended By-Laws of the Schertz Seguin
Local Government Corporation.
PASSED AND APPROVED THIS 16TH day of 140vember , ~.
SCHERTZ-SEGUIN LOCAL
GOVERNMENT CORPORATION
ATTEST:
,.