Parks & Recreation Foundation By-lawsBYLAWS
OF
SCHERTZ PARKS AND RECREATION FOUNDATION
ARTICLE 1
NAME, LOCATION, AND PURPOSE
Foundation.
1.1 Name. The name of the corporation is Schertz Parks and Recreation
1.2 Principal Office. The principal office of the corporation shall be located
in the City of Schertz, Guadalupe County, Texas.
1.3 P_ urpose. The corporation is organized and shall be operated exclusively
for charitable, scientific, and educational purposes within the meaning of section 501{c)(3) of the
Internal Revenue Code of 1986, as amended (the "Code") and in support of parks and recreation
in the City of Schertz, Texas. The corporation shall be operated exclusively for such purposes,
and, except that the corporation shall be authorized and empowered to pay reasonable
compensation far services rendered and to make payments and distributions in furtherance of
such purposes, no part of its net earnings shall inure to the benefit of, or be distributable to, any
trustee, director, officer, or other private person. No substantial part of the activities of the
corporation shall be carrying on propaganda, or otherwise attempting, to influence legislation,
and it shall not participate in, or intervene in (including the publishing or distributing of
statements), any political campaign on behalf of or in opposition to any candidate for public
office.
ARTICLE 2
NO MEMBERS
2.1 Members. The corporation shall have no members.
ARTICLE 3
BOARD OF DIRECTORS
3.1 Number, Tenure, Election, and Vacancies. Until this Section is modified
as peiynitted by Section 8.1, the direction and management of the affairs of the corporation and
the control and disposition of its properties and funds shall be vested in a Board of Directors (the
"Board") which shall consist of seven (7) persons. The members of the Board shall be appointed
as provided in this Section.
The initial directors named in the Certificate of Formation of the corporation shall
serve the following terms:
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Name Term Ends
John Bierschwale December 31, 2013
Tim Jacobs December 31, 2013
Eddie McNew December 31, 2013
Cindy Raleigh December 31, 2011
Nancy Kotzur December 31, 2011
Don McCrary December 31, 2012
Robert Cantu December 31, 2012
Upon the expiration of the term of a director, the- directors whose tertrrs have not
expired shall appoint a successor director. Each such successor director shall be a person who
supports the purposes of the corporation as set forth in Section 1.3.
Each director shall serve for his or her tern of office and until his or her successor
is duly appointed to the Board and accepts such appointment. Each successor director shall serve
a term of three {3} years. There is no limit on the total number of terms which a person may
serve on the Board.
Any director who fails to attend three (3) consecutive regular meetings of the
Board or any director who fails to attend one-half (%2) of the regular meetings of the Board in any
calendar year shall be deemed to have resigned from the Board. Such person shall be eligible for
reappointment to the Board:
Any director shall be removed from the Board, with or without cause, upon the
affirmative vote oftwo-thirds (213) of the remaining directors.
Upon the death or resignation of a director, or upon the disability of any director
rendering him or her permanently incapable of participating in the management and affairs of the
corporation, a successor director shall be appointed to complete the term of any such director
whose position is being filled, and, for purposes of determining eligibility for reappointment, if
the remaining term for which a successor is appointed is eighteen (18) months or longer, the
successor director shall be deemed to have served a complete term. For purposes of this Section,
an initial director's term shall be deemed to be a complete term.
3.2 Annual Meeting. The annual meeting of the Board shall be held in
January of each year an a date and at a time determined by the Board for the election of officers
and the transaction of such other business as may lawfully come before the meeting. It shall be
the duty of the secretary of the corporation: to give ten {10) days' notice of such meeting to each
director or by mail to each director not personally notified.
3.3 Regular Meetings. Regular meetings of the Board shall be held at such
_ times as may be fixed from time to time by resolution of the Board. Such meetings shall take
place at such place as the Board may determine.
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3.4 Special Meetings. Special meetings of the Board shall be held whenever
called by the secretary of the corporation upon the direction of the president of the corporation or
upon written request of any two (2) directors.
3.5 Notice. Except as provided herein, notice of the time and place of special
meetings of the Board shall be given not less than three (3) days before the meeting, either
personally (including by telephone or any electronic means) or by mailing such notice to each
director at his or her address as the same appears on the records of the corporation. Such notice
need not be given to any director who shall attend such meeting in person, nor to any director
who shall waive notice of such meeting, whether before or after such meeting. Except as
otherwise expressly provided herein or by statute, notice of any meeting of the Board need not
state the business to be transacted thereat.
3.6 uarum and Prox Maori Vote. A quorum for the transaction of
business by the Board shall be the presence of at least a majority of the number of directors
constituting the whole Board; provided, however, that directors present by proxy may not be
counted toward a quorum. The act of the majority of the directors present in person or by proxy
at a meeting at which a quorum is present shall be the act of the Board, except as otherwise
specifically provided by law, by the Articles of Incorporation, or by these bylaws. The directors
present at any meeting, whether or not less than a quoi~m, by a majority vote may adjourn the
meeting from time to time and a meeting may be held as adjourned without further notice, at
which, if a quorum shall be present, any business may be transacted which might have been
transacted at the meeting as originally noticed.
3.7 Executive Committee. The Executive Committee of the Board shall be
composed of the president, vice president, secretary, and treasurer of the corporation. Actions of
the Executive Committee shall be subject to approval by the Board, except to the extent provided
otherwise in a resolution of the Board pertaining to a particular matter, transaction, or
undertaking (or class or series of matters, transactions, or under-takings), in which case the
Executive Committee shall have and may exercise all of the authority of the Board in the
management of the business and affairs of the corporation with respect to the subject of such
resolution. The Executive Committee shall keep regular minutes of its proceedings and report
the same to the Board when requested by the Board.
3.8 Other Committees. The Board may, by resolution passed by a majority of
the whole Board, designate additional committees, each committee to consist of two or more
persons, and each such committee shall have such power and authority and shall perform such
functions as may be provided in such resolution; provided, however, such committee(s) shall not
have the power to have and exercise the authority of the Board. The Board shall appoint a
committee chairperson of each designated committee. Such committee or committees shall have
such name or names as may be designated by the Board and shall keep regular minutes of their
proceedings and report the same to the Board when requested by the Board. Any member of a
committee may be removed, for or without cause, by the affii7native vote of two-thirds (213) of
the whole Board. If any vacancy or vacancies occur in a committee, such vacancy or vacancies
shall be filled by the affirmative vote of a majority of the whole Board.
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3.9 Action Without a Meeting. Any action required by to be taken at a
meeting of the directors of the corporation (or any action that may be taken at a meeting of any
committee of the corporation) may be taken without a meeting if a consent in writing, setting
forth the action to be taken, is signed by a sufficient number of directors (or committee
members} as would be necessary to take that action at a meeting at which all of the directors (or
committee members) were present and voted. Each written consent shall bear the date of
signature of each director (or committee member) who signs the consent. Prompt notice of the
taking of any action by directors or committee members without a meeting by less than
unanimous written consent shall be given to all directors or committee members, as the case may
be, who did not consent in writing to the action.
3.10 Partici ation b Conference Tele hone. Members of the Board or
members of any committee designated by the Board may participate in and hold a meeting of the
Board or such committee by means of conference telephone or similar communications
equipment by means of which all persons participating in the meeting can hear each other, and
participation in such a meeting shall constitute presence in person at such meeting, except where
a person participates in the meeting for the express purpose of objecting to the transaction of any
business on the ground that the meeting is not lawfully called or convened.
3.11 Conflict of Interest Policy. The cozporation shall have and enforce a
conflict of interest policy. The Board shall adopt a conflict of interest policy.
ARTICLE 4
GENERAL OFFICERS
~.1 Election. The officers of the corporation shall be a president, vice
president, secretary, treasurer, and such other officers as may be detez7nined and selected by the
Board. The Board, at its first meeting and annually thereafter at the annual meeting, shall elect
the officers. The officers so elected shall hold office for a period of one year and until their
successors are elected and qualify. The offces of secretary and treasurer may be filled by the
same person. The offices of president, vice president, secretary, and treasurer shall be held by
members of the Board. Other offices are not required to be held by a member of the Board.
4.2 Attendance at Meetings. The president, and in his absence any other
officer, shall call meetings of the Board to order and shall act as the presiding officer of such
meetings, and the secretary of the corporation shall act as secretary of all such meetings, but in
the absence of the secretary the presiding officer may appoint any person present to act as
secretary of the meeting.
4.3 Duties. The principal duties of the several officers are as follows:
(a) President. The president shall be the chief executive officer of the
corporation and, subject to the control of the Board, shall have general charge and supervision of
the administration of the affairs and business of the corporation. The president shall see that all
orders and resolutions of the Board are carried into effect, shall sign and execute all legal
documents and instruments in the name of the cozporation when authorized to do so by the
Board, and shall perform such other duties as may be assigned to him or her from time to time by
SOD57788.1
the Board. The president shall also have the power to appoint and remove subordinate
employees. The president shall submit to the Board plans and suggestions for the work of the
corporation, shall direct its general correspondence, and shall present recommendations in each
case to the Board for decision. The president shall submit a report of the activities and business
affairs of the corporation at each annual meeting of the Board and at other times when called
upon so to do by the Board.
(b) Vice President. The vice president shall discharge the duties of the
president in the event of the president's absence or disability for any cause whatever and shall
perform such additional duties as may be prescribed from time to time by the Board.
(c) Secretary. The secretary shall have charge of the records and
correspondence of the corporation under the direction of the president and shall be the custodian
of the seal (if any) of the corporation. The secretary shall give notice of and attend all meetings
of the Board and shall take and keep accurate minutes of all meetings of the Board of which, ex
officio, he or she shall be the secretary. The secretary shall discharge such other duties as shall
be assigned to the secretary by the president or the Board. In case of the absence or disability of
the secretary, the Board may appoint an assistant secretary to perform the duties of the secretary
during such absence or disability.
(d) Treasurer. The treasurer shall keep account of all money, credit, and
property of the corporation and shall keep an accurate account of all money received and
discharged. Except as otherwise ordered by the Board, the treasurer shall have the custody of all
the funds and securities of the corporation and shall deposit the same in such banks or
depositories as the Board shall designate. The treasurer shall keep proper books of account and
other books showing at all times the amount of the funds and other property belonging to the
corporation, all of which books shall be open at all times to the inspection of the Board. The
treasurer shall also submit a report of the accounts and financial condition of the corporation at
each annual meeting of the Board. The treasurer shall, under the direction of the Board, disburse
all money and sign all checks and other instruments drawn on or payable out of the funds of the
corporation, which checks, however, may also be required by the Board to be signed by the
president or vice president, or in case of their absence or disability, by such other member of the
Board as the Board shall designate. The treasurer shall also make such transfers and alterations
in the securities of the corporation as may be ordered by the Board. In general, the treasurer
shall perform all the duties which are incident to the office of treasurer, subject to the direction of
the Board, and shall perform such additional duties as may be prescribed from time to time by
the Board, The treasurer shall give bond only if required by the Board. In case of absence or
disability of the treasurer, the Board may appoint an assistant treasurer to perform the duties of
the treasurer during such absence or disability.
4.4 Vacancies. Whenever a vacancy shall occur iri any general office of the
corporation, such vacancy shall be filled by the Board by the election of a new officer who shall
hold office until the next annual meeting and until his successor is elected and qualifies.
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ARTICLE 5
ADDITIONAL OFFICERS AND AGENTS
5.1 Additional Officers and Agents. The Board may appoint such officers and
agents in addition to those provided for in Article 4 as may be deemed necessary, which officers
and agents shall have such authority and perform such duties as shall fiom time to time be
prescribed by the Board. All officers and agents shall hold their respective offices or positions at
the pleasure of the Board and may be removed from office or discharged by the Board at any
time with or without cause; provided that removal without cause shall not prejudice the contract
rights, if any, of such officers and agents.
ARTICLE 6
GENERAL PROVISIONS
6.1 Rules. The deliberations of the Board shall be in accordance with rules
established by the president. In the absence of such established rules, deliberations shall be in
accordance with the latest edition of Robert's Rules of Order.
6.2 Fiscal Year. The fiscal year of the corporation shall be the fiscal year.
6.3 Seal. The coiforation may have a seal, and said seal may be used by
causing it or a facsimile thereof to be impressed or affixed or in any manner reproduced. Any
officer of the corporation shall have authority to affix the seal to any document requiring it.
6.4 Resignation. Any director, officer, or committee member may resign at
any time by giving written notice to the president or the secretary. Such resignation shall take
effect at the time specified therein or, if no date be specified, on the date of its receipt.
b.5 Notices. Whenever under the provisions of these bylaws notice is required
to be given to any director or committee member, and no provision is made as to how such
notice shall be given, it shall not be construed to mean personal notice, but any such nonce may
be given electronically, by facsimile, or by mail, postage prepaid, addressed to such director or
committee member at such address as appears on the books of the corporation. Any notice
required or permitted to be given by mail shall be deemed to be given at the time when the carne
be thus deposited, postage prepaid, in the United States mail. Whenever any notice is required to
be given to any director or committee member under these bylaws, a waiver thereof in writing
signed by the person or persons entitled to such notice, whether before ar after the time stated
therein, shall be equivalent to the giving of such notice.
6.6 Construction. Article and section headings in these bylaws are for
convenience only and shall not affect the construction hereof. Pronouns used in these bylaws
shall be construed as feminine, masculine, or neuter, as the context requires, and wards of
singular number in these bylaws shall be construed as plural, as the context requires.
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ARTICLE 7
INDEMNIFICATION OF DIRECTORS AND OFFICERS
7.1 Persons Indemnified. The ca~poration shall, subject to the limitations
provided in this Article, indemnify any person who is yr was a director, officer, employee, or
agent of the corporation and any person who is or was serving at the request of the corporation as
a director, officer, partner, venturer, proprietor, employee, agent, or similar functionary of
another foreign or domestic corporation, partnership, joint venture, sole proprietorship, trust,
employee benefit plan, or other enterprise who, because such person is or was serving in such
capacity, was, is, ar is threatened to be made a named defendant ar respondent in (a) any
threatened, pending, or completed action, suit, or proceeding, whether civil, criminal,
administrative, arbitrative, or investigative; {b} any appeal in such an action, suit, or proceeding;
and (c) any inquiry or investigation that could lead to such an action, suit, or proceeding, against
judgments, penalties (including excise and similar taxes}, fines, settlements, and reasonable
expenses (including court costs and attorneys' fees) actually incurred by such person in
connection with any such action, suit, proceeding, appeal, inquiry, or investigation, but if such
action, suit, proceeding, appeal, inquiry, or investigation was brought by or on behalf of the
corporation, such indemnification shall be limited to reasonable expenses actually incurred by
such person in connection with such action, suit, proceeding, appeal, inquiry, or investigation.
7.2 Indemnification Allowed. A person shall be indemnified by the
corporation under this Article only if he has been wholly successful, on the merits or otherwise,
in the defense of the action, suit, proceeding, appeal, inquiry, or investigation described in
Section 7. i or if it is determined in accordance with Section 7.5 that such person (a) conducted
himself in good faith; (b) reasonably believed, in the case of conduct in his or her official
capacity, that his or her conduct was in the best interests of the corporation and, in all other
cases, that his or her conduct was at least not opposed to the best interests of the corporation; and
(c} in the case of any criminal proceeding, had no reasonable cause to believe his or her conduct
was unlawful.
7.3 No Indemnification. A person shall not be indemnified by the corporation
under this Article for obligations resulting from any action, suit, proceeding, appeal, inquiry, or
investigation in which such person is found liable (a) on the basis that personal beneft was
improperly received by him or her, whether or not the benefit resulted from an action taken in
such person's official capacity, or (b) to the corporation.
7.4 Advancements. The corporation may pay or reimburse reasonable
expenses (including court costs and attorneys' fees) in advance of the final disposition of an
action, suit, proceeding, appeal, inquiry, or investigation described in Section 7.1, but only after
(a) the corporation receives a written affrmation of the person receiving the payment or
reimbursement of his or her good faith belief that he or she has met the standard of conduct
necessary for indemnification under this Article and a written undertaking by or on behalf of
such person, consisting of an unlimited general obligation, secured or unsecured, of such person,
to repay the amount paid or reimbursed if it is ultimately determined that he or she has not met
those requirements, which undertaking shall be accepted without reference to financial ability to
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make repayment, and (b) a detei7nination made in accordance with Section 7.5 that the facts then
known to thane making the determination would not preclude indemnification under this Article.
7.5 Standard for Indemnifcation. Any deteiYnination of indemnity under
Sections 7.1 thxough 7.3, any determinations as to reasonableness of expenses, and any
determination or authorization of payment under Section 7.4 must be made {a) by a unanimous
vote of the directors who at the time of the vote are not named defendants or respondents in the
action, suit, proceeding, appeal, inquiry, or investigation described in Section 7.1; (b) if such a
quorum cannot be obtained, by a majority vote of a committee of the Board, designated to act in
the matter by a majority vote of all directors, consisting solely of two or more directors who at
the time of the vote are not named defendants or respondents in such action, suit, proceeding,
appeal, inquiry, or investigation; (c) by special legal counsel selected by the Board or a
committee of the Board 6y vote as set forth in (a} or (b) above, ar, if such quorum cannot be
obtained and such a committee cannot be established, by a majority vote of all directors;
provided, however, that if a determination that indemnification is permissible is made by special
legal counsel, authorization of indemnification and detei7ninatian as to reasonableness of
expenses must be made in the manner specified in (c) above for the selection of special legal
counsel.
7.6 Insurance. The corporation may purchase and maintain insurance an
behalf of any person described in Section 71 against any liability asserted against him or her and
incurred by him or her in a capacity described in Section 7.1 ar arising out of his or her status as
such a person, whether or not the corporation would have the power to indemnify him against
that liability under this Article.
7.7 Indemnification. The corporation shall indemnify any director or officer
or foi7ner director or officer of the corporation, against any and all losses, costs, and expenses
{including attoi~eys' fees) actually and necessarily incui-~-ed by such person in connection with
the defense of any action, suit, or proceeding, whether civil or criminal, in which such person is
made a party by reason of being or having been such director or officer, except in relation to
matters as to which such person shall be finally adjudged in such action, suit, or proceeding to be
liable for negligence or misconduct in performance of duty. The corporation shall also
reimburse any such director or officer ar former director or officer for the reasonable cost of
settlement of any such action, suit, or proceeding, if it shall be found by a majority of the
directors not involved in the matter in controversy, whether or not a quorum, that it was in the
best interests of the corporation that such settlement be made, and that such director or officer or
former director or officer was not guilty of negligence or misconduct in performance of duty.
Such indemnification shall not be deemed exclusive of any other rights to which such director or
officer or former director or officer may be entitled, under any bylaw, agreement, insurance
policy, or otherwise.
ARTICLE S
AMENDMENTS AND GOVERNING LAW
S.1 Amendments. These bylaws may be altered, amended, or repealed and
new bylaws may be adopted by the Board at any regular meeting or at any special meeting called
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for that purpose; provided, however, that written notice of such amendment shall be given to the
Board not less than ten (10} days prior to the meeting at which such amendment is voted on.
8.2 Texas Law. 7t is expressly recognized that when these bylaws are silent as
to the manner of performing any corporate function, the provisions of the Texas Business
Organizations Code shall control.
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