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10-21-2014 Agenda with BackupREGULAR SESSION CITY COUNCIL October 21, 2014, 6:00 P.M. HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 Policy Values Economic Prosperity Fiscally Sustainable Family Friendly for All Ages High Quality of Life Safe Community Essential Services Attractive Community Innovative and Proactive Service Oriented Friendly City AGENDA TUESDAY, OCTOBER 21, 2014 AT 6:00 P.M. Call to Order – City Council Regular Session Invocation and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Scagliola) Employee Recognition • Recognition of newly hired employees from the Police Department, Engineering Department and Development Services Department. (M. Bane/M. Sanchez/K. Woodlee) Presentation • Proclamation recognizing Texas Chamber of Commerce Week. (Mayor/Council/M. Titterington) • Guadalupe Regional Medical Center – Prescription Assistance Program update (J. Bierschwale/J. Riggs) • Presentation and award from the National Automobile Dealers Charitable Foundation for a 4 Pack of Little Anne CPR Training Manikins. (J. Bierschwale/D. Wait) (General Managers from Gunn Chevrolet and Gunn Buick GMC will be present) City Events and Announcements • Announcements of upcoming City Events (J. Bierschwale/B. James) • Announcements and recognitions by City Manager (J. Kessel) 10-21-2014 Council Agenda Hearing of Residents This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker’s register prior to the meeting. Presentations should be limited to no more than 3 minutes. All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and/or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered. Consent Agenda Items The Consent Agenda is considered self-explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request of the Mayor or a Councilmember. 1. Minutes – Approve the minutes of the regular meeting of October 14, 2014. (J. Kessel/B. Dennis) 2. Ordinance No. 14-T-44 – Consideration and/or action approving an Ordinance by the City Council renewing the existing Economic Development Incentive Policy; providing an effective date; and other matters in connection therewith. Final Reading (J. Kessel/C. Sherman) 3. Ordinance No. 14-T-45 – Consideration and/or action approving an Ordinance authorizing a Budget Adjustment to the Schertz Economic Development Corporation Fund to correct the approved budget. Final Reading (J. Kessel/J. Walters) Discussion and Action Items 4. Resolution No. 14-R-88 – Consideration and/or action approving a Resolution adopting the By-Laws of the City of Schertz Area Senior Center Advisory Board. (B. James/B. James) Roll Call Vote Confirmation Requests and Announcements 5. Announcements by City Manager • Citizen Kudos • Recognition of City employee actions • New Departmental initiatives 10-21-2014 City Council Agenda Page - 2 - 6. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. 7. Announcements by Mayor and Councilmembers • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) • Continuing education events attended and to be attended • Recognition of actions by City employees • Recognition of actions by community volunteers • Upcoming City Council agenda items Adjournment CERTIFICATION I, BRENDA DENNIS, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 17th DAY OF OCTOBER 2014 AT 11:30 A.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE. Brenda Dennis Brenda Dennis CPM, TRMC, MMC, City Secretary I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON _____DAY OF _______________, 2014. ____________________________Title:__________________________ This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services please call 210-619-1030. The City Council for the City of Schertz reserves the right to adjourn into executive session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act. Executive Sessions Authorized: This agenda has been reviewed and approved by the City’s legal counsel and the presence of any subject in any Executive Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion. 10-21-2014 City Council Agenda Page - 3 - COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS Mayor Carpenter Audit Committee Hal Baldwin Scholarship Committee Interview Committee for Boards and Commissions Investment Advisory Committee TIRZ II Board Mayor Pro-Tem John – Place 3 Lone Star Rail District Councilmember Fowler – Place 1 Interview Committee for Boards and Commissions Schertz Housing Board Liaison Randolph Joint Land Use Study (JLUS) Executive Committee Councilmember Scagliola – Place 2 Animal Control Advisory Committee Cibolo Valley Local Government Corporation Schertz Seguin Local Government Corporation Interview Committee for Boards and Commissions Sweetheart Advisory Committee Councilmember Edwards – Place 4 Audit Committee Hal Baldwin Scholarship Committee Councilmember Duke – Place 5 Audit Committee Investment Advisory Committee 10-21-2014 City Council Agenda Page - 4 - Total number of patients served by the program 1165 Total number of Schertz residents served by the program 37 Total number of prescriptions provided by the program 10716 Retail dollar value of prescriptions provided by the PAP 3,579,250.17$ Retail dollar value of prescriptions provided to Schertz residents by PAP 122,246.56$ Number of prescriptions per Schertz patient per month 1.67 Average prescription retail price (3 month supply) per Schertz patient 329.74$ Average annual retail prescription benefit per Schertz patient 6,607.92$ SOURCES OF PROGRAM FUNDS (ANNUAL) Schertz contribution to the program 5,000.00$ Contributions to the PAP of other cities & other goverments (Seguin)-$ Contributions to program by GRMC -$ Payments by patients ($15.00/month/patient)130,321.00$ Grants received for the program (United Way)8,000.00$ Other sources of funds (identify sources) Private 2,500.00$ 145,821.00$ TOTAL REVENUE Exhibit A Report Information Guadalupe Regional Medical Center Prescription Assistance Program for Schertz Enrollees February 1, 2014 to July 31, 2014 BENEFIT (311,592.37)$ (165,771.37)$ TOTAL EXPENSES TOTAL NET Presentation CITY COUNCIL MEMORANDUM City Council Meeting: October 21, 2014 Department: EMS Subject: Presentation of CPR Manikins from Gunn Automotive BACKGROUND Back in the summer, EMS was notified of a grant opportunity to obtain a set of CPR manikins from National Automobile Dealers Charitable Foundation. EMS Community Health Manager, Kellie Scurlock saw the need we had for more CPR manikins and pursued this grant. In order to apply, the Foundation required the grant application to be sponsored by a local automotive dealer. Kellie reached out to Tony Rhodes at Gunn Automotive to see if they would be willing to sponsor our effort. Mr. Rhodes immediately agreed to be our sponsoring entity. Tonight, we have Mr. Charley O’Daniel the General Manager of Gunn Chevrolet and Mr. Phil Kandera, the General Manager of Gunn Buick / GMC are here to present our new CPR manikins. We are receiving a four-pack of Little Anne CPR manikins along with supplies, kneeling pads, and a carrying case. This package has a retail value of $850. Community Benefit Schertz EMS trains hundreds of citizens, teachers and healthcare providers CPR every year. These four manikins increases our ability to teach more individuals every year with high quality tools that will increase the educational experience. Agenda No. 1 CITY COUNCIL MEMORANDUM City Council Meeting: October 21, 2014 Department: City Secretary Subject: Minutes BACKGROUND The City Council held a regular meeting on October 14, 2014. FISCAL IMPACT None RECOMMENDATION Staff recommends Council approve the minutes of the regular meeting on October 14, 2014. ATTACHMENT Minutes –regular meeting October 14, 2014 MINUTES REGULAR MEETING October 14, 2014 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on October 14, 2014, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to-wit: Mayor Michael Carpenter Mayor Pro-Tem Daryl John Councilmember Jim Fowler Councilmember David Scagliola Councilmember Cedric Edwards Staff Present: City Manager John Kessel Executive Director Brian James Chief of Staff Bob Cantu City Attorney Charles Zech City Secretary Brenda Dennis Councilmember Matthew Duke was absent. Call to Order Mayor Carpenter called the meeting to order at 6:00 p.m. Invocation and Pledges of Allegiance to the Flags of the United States and the State of Texas (Councilmember Fowler) Councilmember Fowler provided the invocation followed by the Pledges of Allegiance to the Flags of the United States and the State of Texas. Mayor Carpenter recognized Boy Scout Nicholas Moore with Troop 398 who was here this evening. Mr. Moore came forward stating that he was here as he was working on his Communication and Citizenship in the Community merit badges. Mayor and Council welcomed Nicholas to the meeting. Presentation • Presentation and announcement regarding the National Registry of Historic Places for St. Joseph’s Chapel. (B. James/D. Weirtz) Mayor Carpenter recognized the Chair of the Historical Preservation Committee Dean Weirtz who came forward officially announcing that as of August this year, the United States of Interior selected St. Joseph’s Chapel as an entity structure to be listed on the National listing of historic places. He stated that this was a distinct honor for those who built and preserved the chapel in Comal County as well as a distinct honor for our City. Mr. Weirtz stated the Chapel was over 120 years old. He stated that this particular listing has some of the most historic places in the United States among its register, and many of our most historic sites appear on this register, such as the Alamo, the Gunter Hotel and 10-14-2014 Minutes Page - 1 - various Court houses in the state. Mr. Weirtz stated that we as a City can be proud that we now have a historic structure in our community listing on the National Registry. Mayor and Council congratulated Mr. Weirtz and his committee for their work in obtaining this honor and invited those that have not been able to go out and see the Chapel to please do so. Mayor Carpenter stated that much of the work in the Chapel was done by hand and this is a rarity to have such a preservation in our community. City Events and Announcements • Announcements of upcoming City Events (J. Bierschwale/B. James) Mayor Carpenter recognized Executive Director of Development Brian James who provided the following announcements: • Thursday, October 16, After Hours Mixer hosted by SurePoint Self Storage, 17305 IH 35 N, 5:30-7:00 p.m. • Monday, October 20, Wendy Swan Memorial Park Dedication, Northcliffe Subdivision, 6:00 p.m. • Monday, October 20, Early Voting Begins, please see City Website for early voting locations and times. • Tuesday, October 21, Chamber Luncheon, Guest Speaker Heather Garcia, Schertz Civic Center Bldg#5. RSVP by Oct. 14 to 210-566-9000. • Wednesday, October 22, Biz Ed, Chamber offices 7:30 a.m. Guest presenter ETC HR, Breakfast provided by RBFCU. RSVP to 566-9000. • Thursday, October 23, Meet the Candidates, sponsored by RBFCU, 6:00 to 8:00 p.m., Schertz Civic Center, Bldg#5. Candidates running for Public Office in Schertz and Cibolo will be in attendance. • Thursday, October 30, Community Volunteer Banquet & Steve Simonson Award, Schertz Civic Center-Bldg#5, 6:30 p.m.-9 p.m. • Announcements and recognitions by City Manager (J. Kessel) City Manager John Kessel stated that over behind the Animal Adoption Center and Skate Park the City has a large unused parking lot. Mr. Kessel stated the City was contacted by Van Pool Park and Ride looking for a location to park five or six cars during the day, and the City provided that location. He stated that what is interesting about this is that one of our employees Superintendent of Fleet/Streets Doug Letbetter and his staff took it upon themselves to go out and re-stripe that parking lot area as the area had aged with weather. He stated that this is going to be a big benefit to those that use it for the park and ride as well as the other citizens who also use it. Mr. Kessel thanked Mr. Letbetter and his staff. Hearing of Residents: Mayor Carpenter recognized the following who spoke: 10-14-2014 Minutes Page - 2 - • Mr. Lucas Watkins, of Kung Jung Mu Sul of Schertz, who came forward announcing that October is Breast Cancer Awareness month and Kung Jung Mu Sul and the Alamo Breast Cancer Foundation are taking donations. He stated that every Saturday from 12:00 1:30 p.m., they are hosting a free women self-defense class, October 17, 2014, is parents night out at a cost of $20.00 per child, October 24, 2014 is the costume party, and October 25, 2014 is double sparing. He stated that if you donate $20.00 this month you will receive the coveted pink belt. Mayor Carpenter joined Mr. Watkins at the speaker podium and stated that as part of their training and their tenets, one of the characteristics is the ability of demonstrating an indomitable spirit, and Lucas has come forward this evening and from memory provided this information to us. • Mr. Robert Brockman, 1000 Elbel Road who came forward requesting an update on the status of the replacement windows at the Recreation Center. City Manager John Kessel stated that nothing has changed since he visited last with Mr. Brockman. Mr. Kessel stated they received information back with a single round of bids where they came in much higher than our budgeted number and they are looking at this again to either re-bid or consider folding this into the aquatic center project to get some order of magnitude scale to try and reduce that cost per unit. He stated these are very large windows and this project is too small for large companies to bid and too large for the small companies. Executive Director of Development Services Brian James concurred, stating they are looking at folding this into the aquatics center project, again to get some economies to scale and have a big firm interested in doing all the work. Mr. Brockman also commented on the flags being flown on Sunday at half-staff and wanted to know if anyone knew why. Mayor Carpenter recognized Mrs. Sherry Davis of the 311 Customer Relations Department who stated that they received a proclamation on Friday, October 10, 2014 from President Obama to fly the United States Flag at half-staff on Sunday, October 12, 2014 for National Fallen Fighters Memorial Service recognizing Fire Prevention Week. Mr. Brockman commented that this was not advertised very well and thanked Mrs. Davis for providing the correct information. Worksession • Presentation, discussion and consideration and/or action with Mr. Jeff Chapman, Construction Counsel regarding the use of Alternative Procurement Methods for City- owned Construction projects. (J. Chapman/S. Willoughby/C. Raleigh) Mayor Carpenter recognized Public Works Coordinator Cindy Raleigh who introduced this item stating that in preparation to proceed to bid for a Public Works Project, City Attorney Charlie Zech was asked to review the bid documents for the project. Mr. Zech 10-14-2014 Minutes Page - 3 - recommended that staff utilize the Chapman Firm to review these documents based on their extensive construction law experience. It was upon the review of these documents that Jeff Chapman informed staff that the documents were outdated in accordance with their references to the State Legislature and Local Government Code. Mr. Chapman met with management and staff and reviewed the issues as well as his suggestions to proceed to Council for approval of the appropriate Procurement Method under Chapter 2269 of the Texas Local Government Code. Ms. Raleigh stated Mr. Chapman will make a presentation to Council regarding the different Procurement Methods that are allowed under the code and answer any questions. Ms. Raleigh introduced Mr. Chapman who came forward stating that he has been doing construction law for twelve (12) years, and has worked with a number of cities in the area. What he typically does for municipal owners is assists them with their procurement compliance documentation, their construction and design contracts and their contract management and dispute resolution. He stated that he was brought in to help the City of Schertz and discuss and bring some procurement documentation for the aquatic center and the replacement of the windows in the recreation center. He stated that in speaking to staff and City Manager John Kessel it came to his attention that the city has an interest in using procurement methods that are not solely the low dollar bid method. Primarily he was approached regarding using the construction manager risk method for the aquatics center. In these discussions, it became apparent that the City Council needed to make a specific delegation of authority or a specific declaration as to how they wanted to do the procurement for this project. Mr. Chapman stated that in discussing this with staff we felt it would be beneficial for him to come before Council and explain in-depth about Chapter 2269 of the Government Code. This is the statutory code that governs procurement for most municipalities and local governments in the state after the legislature’s enactment in the last two sessions. Mr. Chapman stated he is going to discuss each of those methods the chapter allows as well as the issues regarding compliance that the Council needs to be aware of so that the City can move efficiently and effectively through its Public Works program both on the horizontal and vertical side moving forward. Mr. Chapman spoke on Chapter 2269 and explained why the resolution coming before them is necessary. He also addressed questions from Council. Discussion and Action Items 1. Resolution No. 14-R-89 – Consideration and/or action approving a Resolution Delegating the Authority of Procurement Method to City Staff (J. Chapman/S. Willoughby/C. Raleigh) The following was read into record: 10-14-2014 Minutes Page - 4 - RESOLUTION NO. 14-R-89 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, DELEGATING AUTHORITY OF BEST VALUE PROCUREMENT METHOD UNDER CHAPTER 2269 OF THE TEXAS LOCAL GOVERNMENT CODE Mayor Carpenter recognized Councilmember Scagliola who stated that one of the concerns he has is that this resolution delegates the authority to the City Manager, Deputy City Manager, Executive Director of Development, and the Chief of Staff, all of whom are identified as our Senior Staff. The biggest concern he has is where is the expertise? Where is the engineering, the legal and construction advice? Where do these entities come in and where does the City Council come in when actually determining the best type of competitive bid to put out there? Mr. Chapman answered that in this situation you have city staff that you trust with the daily management of the city, and those individuals use their judgment to do their job. They have engaged, as a matter of fact, in this case for the City, consultants who have particular expertise in construction law, and they consult with him and others to determine the best method. They do not make the decision based on his experience as a whim. They do their research and that is what you expect of them. This is why you delegate authority to them; they come back with reports to you about the various things the city is doing and you can appraise that judgment. They use their judgment and that is what the resolution envisions. Councilmember Scagliola stated that the City Manager is the one that runs the city, so why wouldn’t it be his responsibility, and for us to delegate the authority for him to make that decision? Are we opening this up for democracy within the senior staff? Who is the real individual that is ultimately responsible for determining this? Mayor Carpenter recognized City Attorney Charles Zech who stated he was the one who wrote the resolution. The statute says specifically that the city can delegate its authority for purposes of determining: What is the best value? The statute requires you to list titles. What he chose to do, and of course you are free to change it to a different title or a person you choose, but his thought process was in conjunction with Mr. Kessel; ultimately, your decision maker is the City Manager. As such, you should delegate the authority to make those decisions to the City Manager who is your ultimate decision maker at staff level. He will consult with and involve the appropriate level of expertise necessary to make those decisions. Ultimately, as the final decision maker, he would make that determination to consult with those necessary individuals as to the best value. Then City Council would approve whatever that best method is when that item is brought forward to Council for consideration. That is how the process would work. Councilmember Scagliola stated that his understanding of leadership is you have one (1) individual who’s both responsible and accountable. If you have more than one individual then you have nobody who is responsible or accountable. He stated that one person should be listed on the resolution in his opinion and that should be the City Manager, and being as wise as he is, he is sure he will also consult with the senior staff. 10-14-2014 Minutes Page - 5 - Mayor Carpenter recognized City Manager John Kessel who stated that he has no concern whatsoever if you want the resolution to list him, and he is happy to do so. He also wanted to say that Mr. Bierschwale, Mr. James, and Mr. Cantu also go through these different processes, primarily for horizontal work with Mr. Bierschwale and vertical work with Mr. James; therefore, they also have expertise. He doesn’t know of anyone who has built more water and sewer lines in the city or in any city as Mr. Bierschwale, and certainly between himself and Mr. James we’ve built lots of buildings, and so our experience also tells us because we’ve built just enough, that we need to get outside counsel and outside expertise. You learn very quickly that you don’t know as much as you think you know. We certainly practice that and he does not mind being the sole person listed there but he doesn’t want to devalue the expertise you have on your staff. He thinks this goes all the way down to all the departments. Mayor Carpenter commented that all we are delegating is the ability to choose the method by which they will go out to bid. Everything still comes back before the City Council; we are just letting some of the early ground work be done by staff, that’s all we are delegating. There was a question from Councilmember Fowler who asked, ‘Is this stated in the resolution?’ City Attorney Charles Zech answered and read what it states, with the exception of the word designates, which should be delegates, that the City Council delegates it’s authority to determine which method provides the best value, because that is the only thing that the statute authorizes them to delegate. We are just choosing the method by which to go out to bid. Mayor Carpenter recognized City Manager John Kessel who stated that certainly from a practical perspective what happens after we go out for bid and we receive those bids back and grade them, then we come back to Council with a contract which is voted up or down based on the criteria, and there is often discussion of the details, but it is Council who takes action on the large items. It is his opinion that very few of these things are going to be less than $50,000 for big construction projects. There will be some projects that are less than $50,000 and those would be the ones that would not need any Council action, but you have already authorized the City Manager to enter into contracts less than $50,000, so it would seem odd to have him come back with a method of procurement question for Council and then be authorized on his own to then sign the contract. He believes that the concern is on the large items over $50,000 that Council would have full control over. Certainly Council sets the budget at the beginning of the year so you know what the projects are, for the most part, and certainly he wouldn’t be overly concerned, but again he would be happy to be the one person on the resolution. It doesn’t give any additional authority beyond what it says. Mayor Carpenter recognized Councilmember Edwards who stated that he thinks sometimes we tend to confuse leadership with authority. We confuse management styles. This is the way he views it; we hire Mr. Kessel to run the City, like a CEO of a Corporation, and this is the City he is running. We are not here every day doing the 10-14-2014 Minutes Page - 6 - hands on work. We need him to have the leeway to get his job done and the tasks accomplished without having to come to them all the time. We have also said that the authority comes back to Council; we know that, we have that right. He does not have a problem going forward and approving this resolution. Mayor Carpenter recognized Councilmember Edwards who moved, seconded by Mayor Pro-Tem John to approve Resolution No. 14-R-89 changing the word designates to delegates in Section 1. The vote was unanimous with Mayor Pro-Tem John, Councilmembers Fowler, Scagliola and Edwards voting yes and no one voting no. Councilmember Duke was absent. Motion passed. 2. Minutes – Approve the minutes of the regular meeting of September 23, 2014. (J. Kessel/B. Dennis) Mayor Carpenter recognized Councilmember Edwards who moved, seconded by Councilmember Fowler to approve the meeting minutes of September 23, 2014. The vote was unanimous with Mayor Pro-Tem John, Councilmembers Fowler, Scagliola and Edwards voting yes and no one voting no. Councilmember Duke was absent. Motion passed. 3. Charter Review Commission Appointments – Discussion and consideration and/or action appointing the FY 2014/15 Charter Review Commission. (B. Dennis/Mayor/Council) Mayor Carpenter recognized City Secretary Brenda Dennis who introduced this item stating at the August 26, 2014 City Council meeting the Charter Review Commission appointment process was discussed. One option discussed was that each member of the Council would appoint one person to the Commission. It was also decided to solicit applications from citizens willing to serve on the commission. The application process was advertised on the City's Website utilizing the banner process. In addition to the application, a letter from the Mayor encouraging citizens to apply was also posted. Ms. Dennis stated that at this time the City has received six (6) applications and in answering Councilmember Fowler, read the following names of the applicants: Mr. Richard Dziewit, Mr. Mark Davis, Mr. Michael Dahle, Mrs. Betty Sinclair, Mrs. Jana Volitis, and Mrs. Reginna Agee. Ms. Dennis stated that City Council may also submit additional individuals for consideration at this time. It is important that Council select the five candidates who are both "most qualified" and "willing to serve”. There may be additional individuals who through their unique service and experience also merit consideration. She stated staff recommends Council review the submitted applications and decide to appoint the five (5) required members to the Charter Review Commission either out of the submitted applications or make additional nominations. 10-14-2014 Minutes Page - 7 - Mayor Carpenter recognized Councilmember Edwards who stated that since Councilmember Duke was not here yet, could they move to the next item to allow time for Councilmember Duke to arrive. Council concurred. 4. Ordinance No. 14-T-44 – Consideration and/or action approving an Ordinance by the City Council renewing the existing Economic Development Incentive Policy; providing an effective date; and other matters in connection therewith. First Reading (J. Kessel/C. Sherman) The following was read into record: ORDINANCE NO. 14-T-44 AN ORDINANCE BY THE CITY COUNCIL RENEWING THE EXISTING ECONOMIC DEVELOPMENT INCENTIVE POLICY; PROVIDING AN EFFECTIVE DATE; AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Economic Development Specialist Colin Sherman who introduced this item and answered questions from Council. Mr. Sherman provided an overview with the following information: • An Economic Development Incentive Policy allows municipalities to assist in job creation, business attraction and business expansion with public resources • State Law requires a review of the Policy every two years • Proposed Ordinance No. 14-T-44 establishes an Economic Development Policy Mr. Sherman stated that the Economic Development Incentive Policy takes the City’s vision and joins it with State regulations to allow the City to assist in the development and enhancement of our local economy. The purpose provides a framework for the City to provide public resources for development assistance, promotion and retention of high quality development and primary jobs. The Economic Development Corporation awards development incentives on a case-by-case basis to achieve the City’s economic development objectives. He stated that the projects that request City assistance must be prepared to: invest in the community through jobs and/or capital investment, demonstrate long-term commitment and expect consequences for breaching an agreement. He also stated that the City should follow transparent guidelines when awarding incentives and the amount of incentive is based on the impact to the community, but most importantly incentives are only used when required. Schertz Economic Development Corporation held a meeting on September 25, 2014 to consider and approve the proposed Policy, and it was approved by a unanimous vote. Staff recommends Council approve first reading. Mayor Carpenter recognized Councilmember Scagliola who moved, seconded by Councilmember Edwards to approve Ordinance No. 14-T-44 on first reading. The vote was unanimous with Mayor Pro-Tem John, Councilmembers Fowler, Scagliola and 10-14-2014 Minutes Page - 8 - Edwards voting yes and no on voting no. Councilmember Duke was absent. Motion passed. 5. Ordinance No. 14-T-45 – Consideration and/or action approving an Ordinance authorizing a Budget Adjustment to the Schertz Economic Development Corporation Fund to correct the approved budget. First Reading (J. Kessel/J. Walters) The following was read into record: ORDINANCE NO. 14-T-45 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A BUDGET ADJUSTMENT TO THE SCHERTZ ECONOMIC DEVELOPMENT CORPORATION FUND TO CORRECT THE APPROVED BUDGET; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE Mayor Carpenter recognized Senior Budget/Finance Analyst James Walters who stated that on the FY 2014/15 Budget Adoption, the EDC amount was stated incorrectly on the Ordinance. It was actually the previous year’s amount. To correct this error, staff recommends council adjust the budget back down to $50,744 less than the adopted budget amount. Mayor Carpenter recognized Councilmember Fowler who moved, seconded by Councilmember Edwards to approve Ordinance No. 14-T-45 on first reading. The vote was unanimous with Mayor Pro-Tem John, Councilmembers Fowler, Scagliola, and Edwards voting yes, and no one voting no. Councilmember Duke was absent. Motion passed. 6. Resolution No. 14-R-90 - Consideration and/or action approving a Resolution accepting the Semiannual Report with respect to the progress of the Capital Improvements Plan, and other matters in connection therewith. (B. James/B. James) The following was read into record: RESOLUTION NO. 14-R-90 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS ACCEPTING THREE SEMIANNUAL REPORTS WITH RESPECT TO THE PROGRESS OF THE CAPITAL IMPROVEMENTS PLAN, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Executive Director of Development Services Brian James who stated Council has seen this item a few times in the past. We are trying to move forward in compliance with the local government code in regard to impact fees, or capital recovery fees as they are called. The Planning & Zoning Commission is tasked with 10-14-2014 Minutes Page - 9 - taking a look at the status of these fees and providing a report to you. Looking back through the years, we ran a report from October 1, 2012 through March 31, 2013. There was an item associated with a loan made from the capital recovery account to purchase water meters. We came to realize there was an error in that last report, so the finance department worked with the public works and engineering departments to correct it. What we are bringing back to you now is the corrected report(s), October 1, 2012 through March 31, 2013, April 1, 2013 through September 30, 2013, October 1, 2013 through March 31, 2014. At the end of September we hit another window of reporting time, but we wanted to get caught up with these three reports for you now. You will have the next report by the end of November or December and then consistently for every six months. What you have in your packet tonight is an explanation for the correction of the loan document and the three reports. What the real value here is that it shows how much money we have starting out at that six month window in the water fees and sewer impact fees, where we spend it, how much we collect in interest and where we end up with those amounts. For example, for the period ending March 31, 2014, we had $4,519,502.99 in water impact fees/capital recovery fees and $3, 698,280.82. This is over eight (8) million dollars in those two fees. Mayor Carpenter recognized Councilmember Edwards who stated he is glad for the transparency of these finances and if we (the city) find we made a mistake, we own up to it and correct it. You don’t see these things in the newspaper. You usually just hear about a bad council and what they did wrong. We have integrity here in Schertz and we are doing a good job. Mayor Carpenter recognized Councilmember Edwards who moved, seconded by Councilmember Fowler to approve Resolution No. 14-R-90. The vote was unanimous with Mayor Pro-Tem John, Councilmembers Fowler, Scagliola, and Edwards voting yes, and no one voting no. Councilmember Duke was absent. Motion passed. Mayor Carpenter moved back to agenda item 3. 3. Charter Review Commission Appointments – Discussion and consideration and/or action appointing the FY 2014/15 Charter Review Commission. (B. Dennis/Mayor/Council) As Councilmember Duke had not arrived, it was Council’s concurrence to take no action and place this item on next week’s agenda. Roll Call Vote Confirmation Mayor Carpenter recognized City Secretary Brenda Dennis who recapped the votes of items 1 through 6, noting that regarding item 3 it would be brought back to Council at the next meeting. Requests and Announcements 7. Announcements by City Manager 10-14-2014 Minutes Page - 10 - o Citizen Kudos o Recognition of City employee actions o New Departmental initiatives No further announcements were made. 8. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. Mayor Carpenter recognized Councilmember Fowler who stated he realized Mayor Carpenter has already been in discussions regarding the drainage area issues near Lowes and he feels we need to look at who actually owns this property. He would also like to see some future discussion on how we can approach the access roads especially by Cabana and how we can tie that into a storm drainage system. Maybe we could get TxDOT to help us get this problem solved. It was suggested to have staff prepare an updated report within the next two or three weeks. Another item he would like a report on is the storm ditch in the Arroyo Verde subdivision. Apparently we had to take out some very old trees in that area and a citizen observed that we had a backhoe and one dump truck hauling out dirt and then when the truck left to unload, a whole team of people were sitting around idle waiting for the truck to get back. Councilmember Fowler stated he thinks the bottom line question is: ‘What is the estimated/actual cost of cleaning out this ditch?’ Mayor Carpenter requested staff provide a progress report and cost estimate for Council within the next few weeks. 9. Announcements by Mayor and Councilmembers o City and community events attended and to be attended o City Council Committee and Liaison Assignments (see assignments below) o Continuing education events attended and to be attended o Recognition of actions by City employees o Recognition of actions by community volunteers o Upcoming City Council agenda items Mayor Carpenter recognized Councilmember Fowler who stated he knows we have individually thought about this before, but can we start thinking about how we can get more information out to the public. He stated Executive Director of Development Brian James already gives us a bi-annual project report, so is there a way we can start putting these project status reports into the Schertz Magazine on a quarterly basis. Maybe we could have a workshop on this topic in the near future. Mayor Carpenter recognized City Manager John Kessel who responded by saying we can definitely look into this. He suggested that maybe we could put it out on the website where it could be updated quickly by staff, accessed easily by the citizens and therefore be more dynamic in its usefulness. We can discuss both options with Mr. James and see whether it will be more useful out on the city website or in the magazine. 10-14-2014 Minutes Page - 11 - Mayor Carpenter recognized Councilmember Scagliola who stated he attended the following: o September 30-October 3, 2014, Texas Municipal League (TML) Annual Conference, Houston, TX. o October 7, 2014, National Night Out, various neighborhood stops within the City. He thanked staff for putting this together, especially our Police, Firefighters, and EMS. He specifically thanked Lt. Correu and Officer Morehouse who accompanied him to the various events. Mayor Carpenter recognized Councilmember Edwards who stated he attended the following: o September 30-October 3, 2014, Texas Municipal League (TML) Annual Conference, Houston, TX. o October 7, 2014, National Night Out, various neighborhood stops within the City. He specifically thanked staff member Special Projects Officer Cpl. Shawn Ceeko for organizing this event. Mayor Carpenter stated he wanted to share that they did have an honorary dedication of the street naming at Tri-County Parkway two Saturdays ago in honor of former mayor Robert C. Bueker, who with his family came out for the dedication. He thanked staff members who arranged this event and those that also made the signs that were put up. This was a great event honoring our former mayor. Mayor Carpenter recognized Councilmember Edwards who stated he promised his nephew something. He announced that his nephew, Donovan Edwards, was named Homecoming King of New Mexico Military Institute this past week. Adjournment As there was no further business, the meeting was adjourned at 7:39 p.m. __________________________________ Michael R. Carpenter, Mayor ATTEST: __________________________________ Brenda Dennis, City Secretary 10-14-2014 Minutes Page - 12 - Agenda No. 2 CITY COUNCIL MEMORANDUM City Council Meeting: October 21, 2014 Department: Economic Development Subject: Ordinance No. 14-T-44– City of Schertz Development Incentive Policy (Final Reading) BACKGROUND Goal: To consider and adopt an active Development Incentive Policy (“Policy”) for the City of Schertz (the “City”) and the City of Schertz Economic Development Corporation (“SEDC”). Under Texas Local Government Code, Chapter 380 (“380 Program”), a governing body of a municipality may 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. Without an adopted policy and program, a municipality cannot provide public resources to facilitate development. The current Policy, as established by Ordinance 12-T-15, has expired. The SEDC met on September 25, 2014, and recommended approval. City Council approved this on first reading at their meeting of October 14, 2014. Community Benefit: An active 380 Program allows the city to promote state and local economic development and stimulate business and targeted development for the community. Summary of Recommended Action: Approve final reading of Ordinance 14-T-44 which adopts and renews the current 380 Program. FISCAL IMPACT Ordinance 14-T-44 will enable the City to provide development incentives to appropriate investment projects and initiative. SEDC BOARD RECOMMENDATIONS The SEDC held a meeting on September 25, 2014 to consider and approve the proposed Policy. A motion was made by Marvin Thomas and Second by Angelia Kiser, the motion passed unanimously. STAFF RECOMMENDATIONS Staff recommends approval of Final Reading of Ordinance 14-T-44 ATTACHMENT(S) Ordinance No. 14-T-44 Exhibit A: City of Schertz Economic Development Incentive Policy ORDINANCE NO. 14-T-44 AN ORDINANCE BY THE CITY COUNCIL RENEWING THE EXISTING ECONOMIC DEVELOPMENT INCENTIVE POLICY; PROVIDING AN EFFECTIVE DATE; AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, Chapter 380, 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, on January 27, 2009, the City Council of the City of Schertz, Texas (the “City”) adopted Ordinance 09-T-02, adopting the City of Schertz 380 Program (the “380 Program”) for the purpose of promoting state and local economic development and stimulating business and commercial activity in the City; and Whereas, on August 14, 2012, the City Council of the City of Schertz, Texas (the “City”) repealed the existing 380 Program and adopted and implemented a new Economic Development Incentive Policy for the City; WHEREAS, the City Council now desires to renew the policy for another two years. WHEREAS, the City Council desires to renew, adopt and implement the Economic Development Incentive Policy for the City; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: Section 1. The City Council hereby renews and adopts the City of Schertz Economic Development Incentive Policy attached hereto as Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the Council. Section 3. All ordinances and codes, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance or the City of Schertz Economic Development Incentive Policy established hereby are repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters resolved herein; provided, however, the repeal of the 380 Program shall not affect any contract previously entered into, or action previously taken, in furtherance of the 380 Program. Section 4. This Ordinance 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 Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City hereby declares that this Ordinance would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. Section 7. This Ordinance shall be effective upon the date of final adoption hereof and any publication required by law. PASSED ON FIRST READING, the 14th day of October, 2014. PASSED, APPROVED and ADOPTED ON SECOND READING, the 21st day of October, 2014. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) 50310827.1 - 2 - EXHIBIT A: CITY OF SCHERTZ ECONOMIC DEVELOPMENT INCENTIVE POLICY I. Purpose of Policy The City of Schertz (the “City”) and the City of Schertz Economic Development Corporation (“SEDC”), pursuant to state law, are authorized to offer a variety of incentives to industries and commercial enterprises for the purpose of local economic development. The City is committed to the promotion and retention of high quality development and jobs in all areas of the City and to an ongoing improvement in the quality of life for its citizens. Insofar as new or expanded business enterprises fulfill these objectives, the City and the SEDC will, on a case-by-case basis, give consideration to a company requesting incentives as stimulation for economic development. The City will consider providing any type of economic development incentive not prohibited by state or federal law including, but not limited to, tax phase-ins, Freeport exemptions, revenue bonds, sales tax grants, cost participation in the construction of infrastructure and the waiver of certain development fees. All economic development incentives will be provided by contract with the applicant, and shall be subject to procedural and other requirements set forth in such contract as well as applicable federal, state and local laws. The purpose of this policy is to establish guidelines for making local incentives available for projects that promote the City’s economic development objectives. Nothing herein shall imply or suggest that the City or the SEDC is under any obligation to provide any business incentive to any applicant. II. Premises 1. The City should, in appropriate instances, offer incentives to stimulate certain types of new and existing business development. 2. The City’s priority is to offer incentives to projects that will create new primary jobs (i.e. jobs that form the economic base of the community, created by enterprises that import new wealth into the local economy). What constitutes a “primary job” is described in greater detail below. 3. Our community believes that a new primary job created by an existing employer is as valuable as a new primary job created by a new company. Therefore, the City will consider appropriate incentives to qualifying existing businesses as well as those recruited from outside the City. 4. It is the policy of the City to provide economic development incentives on a case-by-case basis. This individualized design of a total incentive package is intended to allow maximum flexibility in addressing the unique aspects of each applicant and its proposed project while enabling the City to better respond to the changing demands and needs of the community. 5. If developers and/or companies seek financial assistance from the public sector in order to start up or expand their operations, they must be prepared to: • Invest in the community through job creation and capital investment • Make a long-term commitment to the community 50526586.3 Page 1 of 10 • Treat local governments as they would any other contracting party • Expect consequences for breaching their agreement 6. Although nearly every economic development project has unique requirements, the City has an existing set of guidelines that can be explained to a prospect in advance. These guidelines may be modified over time as appropriate. In addition, the City has flexibility to accommodate different types of economic development opportunities or special situations. 7. The amount or level of local incentives offered to prospective developers and/or companies should ultimately be based on the projected increases in the value and size of the local workforce (both in number of jobs and the level of wages), real property, business machinery, personal property, and other forms of revenue that inure to the local taxing entities. 8. Incentives will only be used when they will make a difference in a project's likelihood of success and/or the City’s competitive advantage in securing the project. Incentives may also be provided to a company when the City is convinced that the incentives are needed to retain existing primary jobs which would otherwise be lost. III. Scope The City is authorized to offer economic development incentives under various sections of the Texas Local Government Code (the "Code") including Chapter 380 and the Development Corporation Act (the “4B Act”). Chapter 380 provides that Texas municipalities may create programs to promote local economic development. This legislation permits, on a case by case basis, the City to evaluate and, where appropriate, to offer certain economic development incentives under the Code. Incentives may include loans and/or grants of public money, as well as other City services, to businesses and entities that the City determines will promote local economic development and stimulate business and commercial activity in the City in return for specific and verifiable commitments and results from such businesses or entities to cause specific infrastructure and other public benefits and amenities to be made and/or invested in the City. The 4B Act allows municipalities to create nonprofit development corporations, which are funded by a special sales tax. The SEDC is such a corporation. These corporations promote the creation of new and expanded industry and manufacturing activity within the municipality and its vicinity. The sales tax proceeds are distributed to the SEDC by the City, which then uses the money for economic development projects as outlined in Sections 501.002, 501.101-501.103, 501.105, 505.002, 505.151-505.1561, 505.160, 505.201-505.206 of the 4B Act. Any activities of a development corporation must always be in furtherance of and attributable to a “project.” The SEDC is responsible for managing economic development projects in the City. Except in certain specific instances, SEDC projects must result in the “creation or retention of primary jobs.” The term primary job means: 50526586.3 Page 2 of 10 1. A job that is available at a company for which a majority of the products or services of that company are ultimately exported to regional, statewide, national or international markets infusing new dollars into the local economy; and 2. Is included in certain of the enumerated North American Industry Classification System (NAICS) sector codes (the “Sector Codes”) listed in § 501.002 (12)(A)(ii) of the Code. The City and the SEDC, for purposes of this policy, shall limit the Sector Codes to be considered for purposes of determining the creation or retention of primary jobs to the specifically enumerated Sector Codes as follows: NAICS Sector Number Description 221 Utilities 311-339 (excluding 317-320; 328-330) Manufacturing 42 Wholesale Trade 48-49 Transportation and Warehousing 51 (excluding 512131 and 512132) Information (excluding movie theaters and drive-in motion picture theaters) 523-525 Securities, Commodity Contracts, and Other Financial Investments and Related Activities; Insurance Carriers and Related Activities; Funds, Trusts, and Other Financial Vehicles 5413, 5415, 5416, 5417, 5419 Architectural, Engineering, and Related Services; Computer System Design and Related Services; Management, Scientific, and Technical Consulting Services; Scientific Research and Development Services; Other Professional, Scientific, and Technical Services 551 Management of Companies and Enterprises 56142 Telephone Call Centers Eligible Section 4B Projects The SEDC will consider spending sales tax proceeds on land, buildings, equipment, facilities, targeted infrastructure, and improvements that create or retain primary jobs and are found by the SEDC’s board of directors to be required or suitable for the development, retention, or expansion of: • manufacturing and industrial facilities • research and development facilities 50526586.3 Page 3 of 10 • transportation facilities (including but not limited to airports, ports, mass commuting facilities and parking facilities) • distribution centers • sewage or solid waste disposal facilities • recycling facilities • air or water pollution control facilities • small warehouse facilities • primary job training facilities for use by institutions of higher education • regional or national corporate headquarters facilities; and • projects which promote or develop new or expanded business enterprises including projects that provide public safety facilities, streets and roads, drainage and related improvements, demolition of existing structures, or generally municipally-owned improvements Additionally, the SEDC may fund the acquisition of land, buildings, equipment, facilities, and improvements found by the board of directors to promote or develop new or expanded business enterprises that create or retain primary jobs, including projects that provide: • Public safety facilities • Streets and roads • Drainage and related improvements • Demolition of existing substandard or inefficient structures • General municipally-owned improvements The SEDC will consider any improvements or facilities that are related to any of those projects and any other projects that the board, in its discretion, determines promotes or develops new or expanded business enterprises and creates or retains primary jobs. Eligible Projects Which Are Not Required to Create or Retain Primary Jobs The SEDC will consider funding projects that do not create or retain primary jobs if the project is related to: • Job training classes- Certain job training required or suitable for the promotion or development and expansion of business enterprises; • Certain targeted infrastructure improvements which promote or develop new or expanded business enterprises; o Limited to streets and roads, rail spurs, water and sewer utilities and electric utilities, gas utilities, drainage, site improvements and related improvements, and telecommunications and internet improvements; • Land, buildings, equipment facilities, improvements and expenditures required or suitable for a career center, provided the area benefited is not located in the taxing jurisdiction of a junior college district; • Professional and amateur sports and athletic facilities; entertainment, tourist, convention facilities; public parks and related open space improvements; and 50526586.3 Page 4 of 10 related store, restaurant, concession, automobile parking facilities, roads, streets, and water and sewer facilities; • Affordable housing; • Water supply facility or water conservation program (this use must be approved by a majority of the City’s voters in an election held for that purpose); • Development, improvement, expansion or maintenance of facilities relating to the operation of commuter rail, light rail or motor buses; and • Certain airport facilities IV. Eligibility and Evaluation Criteria for Development Incentives 1. Eligibility Criteria The following criteria must be met for an applicant to be considered eligible to contract for an economic development incentive: • The company must have a profitable operating history and be well-managed; • The proposed development and/or redevelopment must create and maintain jobs that are at or above the Alamo region average wage rate for the industry sector according to Labor Market and Career Information from the Texas Workforce Commission; • The project must conform to community character and economic development goals; and • The project must conform to the requirements of the City’s zoning ordinance, building codes and other applicable City ordinances. 2. Evaluation Criteria In addition to the minimum requirements stated above, the following criteria will be considered to determine what level of incentives will be provided to the applicant. The City will consider various factors to determine the viability, extent and size of the development incentive. Eligibility for incentives will be considered on the basis of the initial eligibility criteria listed in part 1 of this Section IV. After such eligibility has been determined, the SEDC will evaluate the following factors to determine whether any public subsidy is warranted: A. Employment Impact • Wage levels of jobs to be created or retained, as well as benefits offered to full- time employees; and • Number of jobs brought to the City. B. Investment • Type and value of proposed private and/or public improvements; • Amount of any local taxes or revenues (sales, ad valorem, utilities) to be generated directly; and 50526586.3 Page 5 of 10 • The costs, if any, to be incurred by the City to provide facilities or services directly resulting from the improvements. C. Other Factors Considered • Likelihood of a development incentive being a determining factor in a business’ decision to locate or expand its operations; • The financial capacity of the applicant to undertake, complete and sustain the proposed project; • Other incentive programs and matching grants relating to the project for which the applicant has applied or is qualified; and • Other, unanticipated factors deemed relevant by the board at its discretion; D. Community Impact • Appropriate type of activity (e.g. office, retail, etc.); • The positive or negative impact on the opportunities of existing businesses; • The impact on the opportunities of attracting additional business or residents to the community; • The market conditions and growth potential for the business activity. • The productive life of proposed improvements; • Whether high quality architecture and site design including landscaping and public amenities beyond the minimum required by the City will be provided; and • Whether the project is environmentally compatible with no appreciable negative impact on quality of life perceptions. V. Application Procedure After review of the application for the economic development incentive, the SEDC will make a recommendation to the City Council. The City Council will then determine whether it is in the best interests of the City to provide the economic development incentive to the applicant. The City Council may consider criteria other than those set forth in this policy, including but not limited to, such matters as the relative degree to which the project/applicant furthers the goals and objectives of the community or meets or compliments a special need identified by the City Council. Any person or company requesting that the City and/or the SEDC provide an economic development incentive shall comply with the following procedure: • The applicant shall submit a completed application form for the requested incentive on a form provided by the City and/or the SEDC. • The applicant shall provide a plat, map or survey showing the location of the property and the proposed project, all streets, land uses, and zoning within 500 feet of the project site. • The applicant shall describe in detail the proposed project and the type of economic development incentives requested. 50526586.3 Page 6 of 10 • The applicant shall provide all other documentation required in the Economic Development Incentives Application. • The application will be reviewed initially by the SEDC, which, if favorably approved, shall make a recommendation to the City Council, as described above, prior to the City Council’s review of the proposed incentives, the application will be distributed to the applicable departments of the City for review and comment. Additional information related to the application and the project may be requested by the SEDC and/or the City. Failure to timely submit and additionally requested information will cause the application to be rejected and will be deemed withdrawn by the applicant without further action by the SEDC and/or the City. • The City Council will consider the SEDC recommendation and the requested incentive pursuant to this policy. • The City Council will call and conduct public hearings when required by law. • When appropriate under this policy, the City Council will, at a regular meeting and when allowed by law at a special meeting, consider the approval of an economic development incentive agreement. • Information submitted by the applicant regarding the requested incentive is confidential to the extent allowed by law. VI. Expiration and Modification This Economic Development Incentive Policy is effective upon the date of its adoption and will remain in force for two years, at which time, all project incentives provided pursuant to its provision will be reviewed by the SEDC board and City Council to determine whether the goals of the program have been achieved. Based upon that review, the Economic Development Incentive Policy may be modified, renewed or eliminated. Prior to the date for review, as defined above, the Economic Development Incentive Policy may be modified by a super- majority 4/5th vote of the City Council. 50526586.3 Page 7 of 10 Index of Available Economic Development Incentives 1 Abatement of municipal ad valorem property taxes Sec. 312.204 of the Texas Tax Code The City and Comal, Guadalupe, and Bexar Counties may grant up to 100% abatement of property taxes on buildings, fixed machinery and other business property for up to ten years. Tax abatements do not apply to the value of land but to the value of improvements constructed as a result of a particular economic development project. Minimum qualifications for tax abatements are the creation of new primary jobs. Tax abatements are sometimes structured as tax phase-ins. Freeport property tax exemption Texas Constitution Art. VIII, §1-j The freeport exemption exempts personal property consisting of inventory, goods or ores, other than oil, natural gas and petroleum. Eligible property must be transported out of the State of Texas within 175 days of acquisition but may first be assembled, stored, manufactured, processed or fabricated locally. The goods must be in Texas only for a limited purpose. Freeport property, by definition, includes goods, wares, merchandise, ores, and certain aircraft and aircraft parts as defined under Article VIII, Section 1-j of the Texas Constitution. The City, Comal, Guadalupe, and Bexar Counties, as well as four local independent school districts in the city (Schertz/Cibolo/Universal City ISD, East Central ISD, Judson ISD, and Comal ISD) allow personal property tax exemptions for companies that deal with goods-in-transit or inventories used in the manufacturing process. The tax exemption applies to items classified as “freeport property.” Municipal grants Chapter 380 of the Texas Local Government Code The City may provide loans and grants of City funds as well as City employees and equipment to promote economic development projects within the city. Owners of eligible projects involving significant investment may contract with the City to receive sales tax grants, franchise fee grants, water or sewer line extensions, building permit fee waivers and grants for capital recovery fees. Foreign Trade Zone The Tri-County Industrial Park in the City is one of ten General Purpose sites eligible for incentives arising from operating in a Foreign Trade Zone (FTZs). Businesses locating in FTZs can take advantage of the incentives offered including 1) relief from inverted tariffs; 2) duty exemption on re-exports; 3) duty elimination on waste, scrap, and yield loss; and 4) duty deferral until merchandise 1 The incentives listed below are not all-inclusive of what is legally available, and the available incentives may be modified from time to time by the Texas Legislature. 50526586.3 Page 8 of 10 is imported from the FTZ into the FTZ. The purpose of an FTZ is the creation of jobs realized from the cost savings from delayed or forgiven tariffs. The City currently has an FTZ located at the Tri-County Industrial Park and will have potential for an FTZ in the new Enterprise Industrial Park. More information can be found at http://www.sanantonio.gov/edd/IndustryDev/PDF/11FNLFTZ8- 23.pdf Tax Increment Financing Chapter 311 of the Texas Tax Code The City may create a Tax Increment Reinvestment Zone where construction of public improvements using tax increment funds is likely to result in significant commercial investment. The cost of improvements within the Zone is repaid by the contribution of future tax revenues by each taxing unit that agrees to participate, but in all events excluding school districts that levy taxes on the affected properties. Once the City initiates tax increment financing, counties and school districts may also participate in the tax increment financing program. The costs of selected public improvements are paid by additional tax dollars generated by the growth of real property value in the designated area. Creation of Industrial District in ETJ and Agreement to not Annex Section 42.044 of the Texas Local Government Code To attract a business into an area, the City may choose to encourage the business to locate in the City’s extraterritorial jurisdiction (“ETJ”). If the business locates in the City’s ETJ, the City may enter into an agreement not to annex the business property for a set period of time (maximum of 15 years). The agreement may call for the business to pay the City an annual fee in lieu of taxes for the use of City facilities. The City may also provide certain contractual services (i.e. firefighting services) to the business during the non-annexation period. Municipal programs used to help finance business development projects. Industrial Development Bonds (Issued by the City for construction of leased facilities) Chapter 1509 of the Texas Government Code The City may issue industrial development bonds to finance the construction or purchase of a manufacturing facility for lease to a private entity. Bonds are payable from the project revenues unless approved by the voters to be payable from property taxes. Industrial Development Revenue Bonds (Issued by SEDC) 4B Act, Subchapter E of Chapter 501 and Chapter 505, both in the Texas Local Government Code 50526586.3 Page 9 of 10 The SEDC may issue bonds for economic development projects. Generally all debt services on the bonds is paid by the business under the terms of a lease, sale or loan agreement. This does not constitute a debt of obligation by the City or the SEDC. Public Improvement Districts Chapter 372 of the Texas Local Government Code A Public Improvement District (“PID”) enables a commercial area to make improvements benefiting the area and spread the cost equally among all properties in the designated area. Property owners are assessed based on uniform benefit criteria. These assessments may be used to pay the debt service on bonds or they may be used to pay for services directly if no bonds are issued. PID funds may be used to purchase real property in connection with improvements. Improvements include a wide variety of enhancements such as water and wastewater, streets, drainage, parking, landscaping, etc. Municipal Management Districts Chapter 375 of the Texas Local Government Code Municipal Management Districts allow commercial property owners to enhance a defined business area by financing facilities, infrastructure and services beyond those already provided by the City. The improvements may be paid for by a combination of self imposed property taxes, special assessments and impact fees. A District is created to supplement not supplant the City services available to the area. Empowerment Zone The City has the ability to create Empowerment Zones within the City limits. The purpose of creating the Empowerment Zone is to encourage investment in certain areas lacking adequate water and sewer lines and paved streets. Small Business Administration Loan Guaranty Program The City’s Economic Development Department can direct businesses to lenders and special funds designed for small businesses. The SBA provides a guaranty on loans made by private lenders and Community Development Corporations (CDCs). Adopted:________________ 50526586.3 Page 10 of 10 Agenda No. 3 CITY COUNCIL MEMORANDUM City Council Meeting: October 21, 2014 Department: Finance Subject: Ordinance No. 14-T-45– Fiscal Year 2014- 15 Budget Amendment Final Reading BACKGROUND In accordance with applicable statutes and the City Charter, the City Manager submitted a budget proposal to the City Council for consideration. The City Council held public hearings for the Proposed Budget on August 19th, 2014 and August 26th, 2014, including the budget of the Schertz Economic Development Corporation. The Budget was adopted September 2nd, 2014 in compliance with the Local Government Code. During the creation of the Budget Adoption Ordinance a clerical error was made showing a different stated value for the Economic Development Corporation Budget than what was in the proposed budget document. During the preparation of the budget ordinance, the budget value for the FY 2013-14 year, $3,074,554, was used instead of the proposed value for FY 2014-15, $3,023,810, resulting in a difference of $50,744. FISCAL IMPACT General Fund $25,386,088 Special Events Fund $ 153,800 PEG Fund $ 209,000 Water & Sewer Fund $17,788,563 EMS Fund $ 8,151,501 Drainage Fund $ 1,094,618 Hotel Tax Fund $ 302,730 Park Fund $ 60,000 Tree Mitigation $ 116,125 Capital Recovery-Water $ 536,109 Capital Recovery-Sewer $ 1,160,497 Tax I&S Fund $ 5,636,157 Library Fund $ 30,000 Historical Committee $ 11,100 Parks & Recreation Foundation $ 297,900 SEDC $ 3,023,810 Total $63,957,998 Above is the corrected City Budget. There will be no fiscal impact as the approved services are reflected in the corrected budget. City Council approved this on first reading at their meeting of October 14, 2014. City Council Memorandum Page 2 RECOMMENDATION Staff recommends that the City Council approve final reading of Ordinance No. 14-T-45, amending the Schertz Economic Development Corporation Budget for the fiscal year beginning October 1, 2014 and ending September 30, 2015. ATTACHMENT Ordinance No. 14-T-45 ORDINANCE NO. 14-T-45 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A BUDGET ADJUSTMENT TO THE SCHERTZ ECONOMIC DEVELOPMENT CORPORATION FUND TO CORRECT THE APPROVED BUDGET; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, pursuant to Ordinance 14-T-42, the City of Schertz (the “City”) adopted the budget for the City for the fiscal year 2014-2015 (the “Budget), which provides funding for the City’s operations throughout the 2014-2015 fiscal year; and WHEREAS, the City needs to adjust the Budget to reduce the Schertz Economic Development Corporation funding by $50,744.00 to correct a clerical error on the original Ordinance 14-T-42; and WHEREAS, City staff recommends that the City Council of the City adjust the Budget and approve the correction of funding for the Schertz Economic Development Corporation; and WHEREAS, the City Council of the City has determined that it is in the best interests of the City to adjust the Budget and reduce the adopted budget, as more fully set forth in this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: Section 1. The City shall adjust the Budget and shall reduce the Economic Development Corporation Budget by $50,744.00 to match the adopted FY 2014-15 Budget to the proposed budget. Section 2. The sums below show the corrected total for the FY 2014-15 Budget as originally intended: 2014-2015 Budget General Fund $25,386,088 Special Events Fund $ 153,800 PEG Fund $ 209,000 Water & Sewer Fund $17,788,563 EMS Fund $ 8,151,501 Drainage Fund $ 1,094,618 Hotel Tax Fund $ 302,730 Park Fund $ 60,000 Tree Mitigation $ 116,125 Capital Recovery-Water $ 536,109 Capital Recovery-Sewer $ 1,160,497 Tax I&S Fund $ 5,636,157 Library Fund $ 30,000 Historical Committee $ 11,100 Parks & Recreation Foundation $ 297,900 SEDC $ 3,023,810 Total $63,957,998 Section 3. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the Council. Section 4. All ordinances and codes, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters resolved herein. Section 5. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 6. If any provision of this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City hereby declares that this Ordinance would have been enacted without such invalid provision. Section 7. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. Section 8. This Ordinance shall be effective upon the date of final adoption hereof and any publication required by law. 50558021.1 - 2 - PASSED ON FIRST READING, the 14th day of October, 2014. PASSED, APPROVED and ADOPTED ON SECOND READING, the 21st day of October, 2014. CITY OF SCHERTZ, TEXAS Michael Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) 50558021.1 - 3 - Agenda No. 4 CITY COUNCIL MEMORANDUM City Council Meeting: October 21, 2014 Department: Engineering Subject: Resolution No. 14-R-88 - Consideration and/or action approving a Resolution adopting By- Laws of the Advisory Board of the Schertz Area Senior Center. (B. James/B. James) BACKGROUND In order to increase transparency, improve communication, and increase participation the Schertz Area Senior Center Advisory Board worked to develop a set of by-laws to guide their actions. The by-laws stipulate the frequency of meetings, outline the composition of the Board, stipulate the election process, and define duties of members. At this time the Senior Center Advisory Board is not a “formal” board or commission of the City. Goal To approve the by-laws of Schertz Area Senior Center Advisory Board. Community Benefit To increase transparency, improve communication, and increase participation at the Senior Center. Summary of Recommended Action Approve the resolution adopting the Schertz Area Senior Center Advisory Board by-laws. FISCAL IMPACT None RECOMMENDATION Approval of Resolution 14-R-88 adopting the Schertz Area Senior Center Advisory Board by-laws. ATTACHMENT(S) Resolution 14-R-88 Exhibit A: Senior Center Advisory Board By-Laws RESOLUTION NO. 14-R-88 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS ADOPTING THE BY-LAWS OF THE SCHERTZ AREA SENIOR CENTER ADVISORY BOARD, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Schertz operates the Schertz Area Senior Center; and WHEREAS, in an effort to increase transparency, improve communication, and increase participation, the Schertz Area Senior Center Advisory Board worked to develop a set of by-laws to guide their actions; then BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby adopts the Schertz Area Senior Center Advisory Board By-Laws as shown in the attached Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this ____ day of _________, 2014. CITY OF SCHERTZ, TEXAS 50459012.1 Michael R. Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) 50459012.1 EXHIBIT A 50459012.1 A-1 EXHIBIT B 50459012.1 A-2 Schertz Area Senior Center Advisory Board By-Laws ARTICLE 1 GENERAL Section 1 PURPOSE The purpose of the Schertz Area Senior Center is to promote healthy aging and well-being in our community and envisions a community where seniors lead full, healthy, and inspired lives. This will be accomplished by a strong and active membership comprised of the local area senior residents; through programs, services, resources, and civic engagement; and the representation of the Schertz Area Senior Center membership through its Advisory Board. The Advisory Board will act as a liaison between the members of the Schertz Area Senior Center and the City Council of Schertz to communicate about operations, programs and other items and areas. ARTICLE II MEMBERSHIP Section 1 ELIGIBILITY Any individual fifty (50) years or older may apply for a Membership and pay dues based on the current year's dues structure and will have the opportunity to attend and participate in the center’s activities. Section 2 DUES Membership dues shall be at such rates prescribed by the Schertz City Council, payable annually from the start of the calendar year, which is January 1st . Memberships not renewed 60 days past the renewal month will be considered expired. ARTICLE III MEETINGS Section 1 ANNUAL MEETING The annual meeting of the Schertz Area Senior Center shall be held at a date determined by the Center Director and/or Advisory Board. The time and place shall be fixed and notice thereof posted at the Schertz Area Senior Center at least 14 days before said meeting. The Annual meeting is open to all members. Section 2 ADDITIONAL MEETINGS: (a) Regular meetings of the Advisory Board will be held on the first Monday of the month at 9:00 a.m. (b) General meetings of the Advisory Board may be called by the Chair at any time, or upon petition in writing of any (10) members in good standing. (c) Special Meetings of the Senior Center Members. Notice of special meetings shall be posted at least 72 hours prior to such meetings. (d) Emergency Meetings of the Advisory Council. Emergency Meetings may be called by the Director of the Center from time to time as needed. Section 3 QUORUMS: Three members of the Advisory Council shall constitute a quorum at meetings. ARTICLE IV ADVISORY BOARD Section 1 COMPOSITION OF THE ADVISORY BOARD The Advisory Board shall be comprised of (5) members. All Board members must be active members of the Schertz Area Senior Center The Center Director shall appoint the Senior Center Kitchen Representative and Senior Center Volunteer Representative. Three members of the council shall be elected by the membership of the center. The Advisory Board members shall serve for a two (2) year term. Board members are limited to serving 2 consecutive terms (4 years). Section 2 NOMINATION, SELF-NOMINATION, AND ELECTION OF ADVISORY BOARD (a) Nomination. At the regular May Advisory Board meeting, names for nominees for the open Advisory Board positions shall be submitted by Board members. (b) Publicity of Nominations. The Advisory Board Chair shall immediately notify the membership by public announcement and posted at the Schertz Area Senior Center of the names of persons nominated as candidates and their right of self-nomination. (c) Self-Nominations. Additional names of nominees can be submitted in writing to the Advisory Board within five (5) days after notice has been given of the names of those nominated. (d) The names of all candidates shall be arranged on a ballot, in alphabetical order. Instructions will be to vote for three (3) names. Identification shall be made on the ballot to identify those candidates nominated by the Advisory Board. The Advisory Board Chair shall make this ballot available at the Schertz Area Senior Center front desk to all active members at least 5 days before the regular June Board meeting. (e) All voting shall be by ballot and no proxies shall be allowed. All active members of the Schertz Area Senior Center shall be eligible to vote for the nominees. (f) Ballot Tallying. All ballots will be placed in a locked box. The Advisory Board Chair shall appoint two (2) members who are not candidates to act as Tellers 1 and 2 as well as an assigned Recorder to tally the ballots. After set voting period has passed, the ballot shall be declared closed. Teller 1 shall examine and acknowledge the vote on each ballot; Teller 2 shall re-verify the cast ballots and the assigned Recorder shall finalize the tally. In case of a tie, the choice shall be determined by a runoff between those receiving tied votes. The Advisory Board Chair shall announce the results to the membership, and shall declare the candidates receiving the highest number of votes cast duly elected. The Schertz Area Senior Center Director, at the same time, shall appoint a Senior Center Kitchen Representative and a Senior Center Volunteer Coordinator Representative, Section 3 SEATING OF NEW ADVISORY BOARD MEMBERS All newly elected Advisory Board members shall be seated at the regular June meeting and shall be participating members thereafter. Section 4 VACANCIES (a) Any vacancy occurring in the Advisory Board shall be filled as soon as possible. At-Large representatives shall be filled by Special Election by the Advisory Board from Board Member recommendations. An approval by a majority vote of the Advisory Board present at a meeting at which a quorum is present shall elect a nominee for the unexpired term created by the vacancy. Other vacancies, such as, Senior Center Kitchen Representative and Senior Center Volunteer Coordinator Representative shall be appointed by the Center Director or the Advisory Board. ( b)Termination: Any Advisory Board member missing more than (3) three consecutive meetings will be subject to removal. Any member may be removed by a two-thirds vote of the Advisory Board at a regularly scheduled meeting of the council and after notice and opportunity for a hearing are afforded the member complained against. Section 5 POLICIES: Recommendations from the Advisory Board will be utilized in the formulating of the policies of the Schertz Area Senior Center. These policies shall be maintained in a Policy Manual, to be reviewed annually and revised as necessary. Section 6 COUNCIL MEMBERS AND DUTIES THEREOF Chair -shall serve as the head of the Advisory Board. The Chair will prepare and provide an agenda from inputs received from the Board and conduct the meetings. The Chair is a voting Board member. Vice Chair – shall assist the Chair in coordination of meetings and assume the role of Chair in leading meetings in the absence of the Chair. The Vice Chair is a voting Board member. Recording Secretary – shall serve in the recording of minutes of meetings, supplying copies of previous month’s meeting minutes for approval and shall maintain the Policy Book of the Advisory Board. The Recording Secretary is a voting Board Member. Senior Center Kitchen Representative - shall be in charge of the kitchen in the areas of inventory, serving, and code compliance of volunteer staffing concerning food handler’s permits and working with the Senior Center Volunteer Coordinator for kitchen staffing needs. The Senior Center Kitchen Representative is a voting Board Member. Senior Center Volunteer Coordinator Representative – shall coordinate all volunteers for the Senior Center to include front desk, kitchen, cleanup, open and closing personnel and RSVPs to events and happenings. The Volunteer Coordinator will also track the hours of volunteers and submit a monthly report to the City of Schertz. The Senior Center Volunteer Coordinator Representative is a voting Board member. Schertz Area Senior Center Director - shall participate in Board discussions; provide helpful insights and suggestions for programs and other areas of work within the Senior Center. The Center Director is not a voting Board member. Article V MISCELLANEOUS Section 1 Amendments. These By-Laws may be amended at any general meeting of the Advisory Board by 2/3 vote of members present provided the amendment has been submitted and read at a previous business meeting. ARTICLE VI COMMITTEES AND DIVISIONS Section I APPOINTMENT AND AUTHORITY: The Advisory Board shall appoint all committees and committee chairmen. They may appoint committees and their chairmen as they deem necessary to carry out the programs of the Schertz Area Senior Center. It shall be the function of the committee(s) to make investigations, conduct studies, and hearings, make recommendations, to the Advisory Board and to carry on such activities as may be delegated to them by the Advisory Board. ARTICLE VII FINANCES Section 1 FUNDS: All money paid to the Schertz Area Senior Center shall be placed in a general operating fund, unless designated for specific restricted fund programs.