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08-09-2016 Agenda with backupCity Council Agenda REGULAR SESSION CITY COUNCIL AUGUST 9,2016,6:00 P.M. HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 COMMUNITY.SERVICE.OPPORTUNITY Call to Order — City Council Regular Session Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Fowler) City Events and Announcements • Announcements of upcoming City Events (B. James /D. Wait /S. Gonzalez) • Announcements and recognitions by City Manager (J. Kessel) Workshop • Presentation and discussion of the FY 2016 -17 Proposed Budget. (J. Kessel/ J. Walters) 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 08-09 -2016 Council Agenda 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. Minutes — Consideration and /or action regarding the approval of the minutes of the Special Meeting of July 29, 2016 and the minutes of the Regular Meeting of August 2, 2016. (J. KesselB. Dennis) 2. Excused Council Absences — Consideration and /or action excusing City Council Member absences for the following date: August 2, 2016. . (B. Dennis /Mayor /Council) Discussion and Action Items 3. Resolution No. 16 -R -62 — Consideration and/or action approving a Resolution authorizing an agreement for Provisions of Professional Services between the City of Schertz and the Schertz Economic Development Corporation. (J. Kessel /K. Kinateder) 4. Resolution No. 16 -R -63 - Property Tax Rate — Consideration and/or action approving a Resolution taking a Record Vote on setting the Preliminary Maximum Tax Rate for FY 2016 -17 and Scheduling of Public Hearings on the proposed FY 2016 -17 Budget and Tax Rate. (J. Kessel /J. Walters) 5. Resolution No. 16 -R -64 — Consideration and /or action approving a Resolution authorizing the pursuit of a "Power UP" Grant from the Guadalupe Valley Electric Cooperative, Inc., to fund Restrooms at the Playscape in Schertz, Texas. (B. James /C. VanZandt) Roll Call Vote Confirmation Requests and Announcements 6. Announcements by City Manager • Citizen Kudos • Recognition of City employee actions • New Departmental initiatives 7. Future Agenda Item Request for City Council: This is an opportunity for City Council members to request that items be placed on a future agenda. No discussion of the merits of the item may be taken at this time. Should a Council Member oppose placement of the requested item on a future agenda, the Mayor, without allowing discussion, shall ask for the consensus of the other City Council members to place or not place the item on a future agenda. 08 -09 -2016 City Council Agenda Page - 2 - 8. 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 Adiournment 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 5th DAY OF AUGUST, 2016 AT 12:00 P.M. WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE. -F,re"R Devwl,is Brenda Dennis, City Secreta I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON DAY OF 2016. 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. COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS Mayor Carpenter Councilmember Fowler — Place 1 Audit Committee Interview Committee for :Boards and Commissions 08 -09 -2016 City Council Agenda Page - 3 - Interview Committee for Boards and Commissions Schertz Housing Board Liaison Investment Advisory Committee Randolph Joint Land Use Study (JLUS) Executive TIRZ II :Board Committee Schertz Seguin Local Government Corporation Councilmember Azzoz — Place 2 Councilmember John — Place 3 Animal Control Advisory Committee Lone Star Rail District Sweetheart Advisory Committee Mayor Pro -Tem Edwards — Place 4 Councilmember Thompson Place 5 Audit Committee Audit Committee Hal Baldwin Scholarship Committee Investment Advisory Committee Interview Committee for Boards and Commissions Cibolo Valley Local Government Corporation 08 -09 -2016 City Council Agenda Page - 4 - Lei' 1 City Council Meeting: August 9, 2016 Department: Subject: BACKGROUND City Secretary Minutes Agenda No. 1 The City Council held a Special Meeting on July 29, 2016 and a Regular Meeting on August 2 2016. FISCAL IMPACT 1• Iti0011011010101117%1[Il►1 Staff recommends Council approve the minutes of the Special Meeting of July 29, 2016 and the minutes of the Regular Meeting of August 2, 2016. ATTACHMENTS Regular Meeting of July 29, 2016 & August 2, 2016. . MINUTES SPECIAL MEETING July 29, 2016 A Special Meeting was held by the Schertz City Council of the City of Schertz, Texas, on July 29, 2016, at 8:30 a.m., at the Fairfield Inn & Suites, 5008 Corridor Loop Road, Schertz, Texas. The following members present to -wit: Mayor Michael Carpenter Councilmember Jim Fowler Councilmember Robin Thompson Staff Present: Executive Director Brian James City Attorney Dan Santee Assistant to the City Manager Sarah Gonzalez Myles Clauser, IT Director Guests Present: Robert Brockman Tom Turke Mayor Pro -Tem Edwards and Cound Welcome /Overview Glen W absent. Finance Direct Asst. Finance City Manager John Kessel provided information on the following topics: • 20 Mile March, as referenced in Jim Collins book "Great by Choice" Mr. Kessel referenced the above book stating this was a story about Robert Scott and Ronald Amundsen and their race to the South Pole in 1912. Scott's and Amundsen's ships, the Terra Nova and the Fram, met at the South Pole before the expeditions began. Scott trained in Norway and, on the expedition, used mechanical sleds and ponies. The sleds' motors cracked in a few days and the ponies died as their sweat froze and their legs post - holed. Amundsen used techniques he learned from time living with Eskimos, 07 -29 -2016 Minutes Page -1- including Eskimo clothing, dog sleds, blubber diet, and management of exertion (energy reserves and perspiration). Remember, the key characteristics of a "Twenty Mile March" are the abilities of a city to: 1. both perform well in difficult times and to hold back in good times 2. to achieve long term consistency, 3. to maintain control in uncertain times (self - imposed disciplitio), 4. and to build ca aci for unexpected events (good or bad). Councilmember Daryl John arrived at 9:28 a.m. Cali to Order Mayor Carpenter called the meeting to order at 9: Topics of discussion continued regarding the 20 Mile doinc, in the pity tncinv M re there was a quorum the correlations with what we are Mile March and how it Twenty Mile March to a Balanced City Core Services, Quality of Life, and Economic Engine: we have several key areas that need our major focus that we should keep in mind when considering roadway funding: — roadways (new & existing) — buildings /facilities (new & existing) — park facilities (new & existing) 07 -29 -2016 Minutes Page - 2 - — water and waste water utilities (new & existing) — drainage (floodplain and clean water) — economic development /development process — personnel (staffing levels & competitive salaries) — technology (new & existing) — and many more important areas (these are just a few) ISSUE: We tend to focus on what is most apparent to us and what we know best, and we tend not to focus on things that are less apparent to us and about which we know little., We have to be aware of this and make a conscious effort to identify all of the issues we face, not jistthe ones we see. POLICY 1: We need to continue to invest in our full range of city services, from roadways to parks to economic development. An over emphasis in one area will inherently be ttt the expense of another. A ISSUE: The t' one to achieve t (short iime�- hi long time). POLICY 2: Agi and appropriate ISSUE: The size and time while still maint lity: pick two" is true, yet we can't simply forgo any atter. This is based on the laws of competing demands = long time or low quality, high quality = high cost or e of cost, time, and quality in order to achieve a thoughtful. °x of our projects limits our abilities to perform in a reasonable period of day to day operations. POLICY 3: Chip away at a variety of things every year, not just one thing each year: a balanced approach. POLICY 4: Distribution of work to many departments, not just one department: a balanced approach. ISSUE: We learn from the work we do. Rather than committing larger resources (time, money) up front, we are wiser to perform smaller jobs and learn what works best and then commit to larger projects /more aggressive timetables. Calibration allows scaling up what we have learned. 07 -29 -2016 Minutes Page - 3 - POLICY 5: Perform smaller jobs and learn what works best, recognize limitations in skills or resources and then commit to larger projects /more aggressive timetables. ISSUE: Conditions, priorities, and understanding change over time; rather than committing larger resources (time, money) up front, we are wiser to perform the higher priority yet properly scaled jobs first. POLICY 6: Perform phased or scaled jobs that allow success, learning, and agility when possible, while not over - committing resources. This promotes greater calibration and prepares us for addressing unexpected needs. ISSUE: The success of new projects can come at the expense of existing responsibilities. POLICY 7: Recognize and address the resources that are needed to maintain current responsibilities when considering taking on additional responsibilities. Strategic Plan: Key Operational Values Systems management allows us to integrate and ponsbliA achieve greater results and efficiencies across the organi2 get at the individual or departmental level. Being innovative seeks to create new value for our comm Being proactive creates a professional environment that choice and meets stakeholder expectations. Mr. Kessel broke for an outside demonstration at 10:00 a.m. Members present discussed and T demonstration. Public Works Manager Doug provided further information regarding the diffc City. Members present suggested that at a future s, share best practices, and settling for the results we meaningful change. ency, offers greater ranges of ck seal repair by the Public Works Department lied their comments regarding the value of the )etter and Street Supervisor Robert Martinez types of road maintenance they provide to the munity forum they discuss these processes. Mr. Kessel stated that this all telates back to our Strategic Plan. He addressed Systems Management, being motivatea and being proactive.. Mr. Kesel recognized Executive Tiector Dudley Wait who provided a PowerPoint presentation regarding itaformation on the fallowing. - Crack Sealing - Slurry Seals - Chip Seal - Mill and Overlay Roadway Stewardship 07 -29 -2016 Minutes Page - 4 - What is roadway stewardship? Roadway stewardship helps us more effectively spend scarce roadway funds in order to maximize the benefits to our city. Roadway stewardship helps us extend the life of our existing roads by making earlier, smaller investments to gain greater road life. Roadway stewardship attempts to answer the questions which road, which repair, who to do it, and when to do it. The Committee of Committees Advisory Board (CCAB) co Mile March philosophies, the Maintenance information, and on Wednesday, July 20, 2016. The CCAB supported this roadways. City Staff arrived at 12:53 p.m. The Staff Leadership Team (SLT) reviewed and refined the 28, 2016. The SLT supported this direction and approach to Policy Strategic Tactics Plan Council Boards SLT Roadway Stewardship With roadways', ?ve hay( • nacxz rna��z�av rrt Each one needs a separate strategy to be effective. New roadway and other contri Operations Et version of the Twenty Stewardship information approach to addressing le March x roadways. Line Staff ophies on July hinging on a leverage strategy, seeking partnerships, grants, We can consider Roadway Impact Fees "partnership" funds as they come from development that typically would not have otherwise contributed towards their fair share of the roadway burden. Focusing on our TXDOT partnership is important, particularly as we work towards funding for phase two of the FM 1518 roadway. In -house maintenance requires the city to have a better understanding and management of what we can do well and what we need to outsource. 07 -29 -2016 Minutes Page - 5 - Our strategy should revolve around knowing the right road, the right repair and the right agency to do the work needed, as well as only taking on the things we can do well enough to make a lasting difference. Outsourced maintenance requires the city understand where we can get the best value for the dollars spent (Return On Investment) and where we lack the ability to perform at minimum levels or where it would prevent us from performing other required maintenance. It doesn't make sense for us to buy the equipment, train our staff, and try to do all things in- house. Our strategy should be to look for areas we can innovate our maintenance practices less expensively or more quickly than we could taking those tasks on in- house, as well as those things that would consume too great a percentage of the street department's time eachpycar, Discussion began with the seven (7) policies discussed earlier; alignment in respect to roadways. We still need to focus o should help drive our mechanism for priorities, both which ro repairs to do in order to foster the best results for every dollar sl What is PCI? The following example was provided: all agreed to them. We are all in 'y & the' strategic plan. The PCI to work on in and what type of ISSUE: All roads in every area of Schertz should be treated fairly and the best use of our taxpayer dollars for road maintenance should be strived for. How do we best use our PCI data to make wise choices that maximize our roadway maintenance funds (ROI)? POLICY: Our PCI should be the foundation that drives our maintenance priorities, both which roads to work on first and what type of repairs to do in order to foster the best results for every dollar spent. Maintain trust — transparency, planning, and following the strategic plan. Our PCI should be the "foundation" that drives it. Mr. Kessel recognized Assistant to the City Manager Sarah Gonzalez who provided a Power Point presentation regarding some results of the recent Employee Engagement Survey: 07 -29 -2016 Minutes Page - 6 - Strategic Plan: • An engaged workforce provides better service to our internal and external customers and is the foundation for continuous growth and progress. Overview: nd • 2 Employee Engagement Survey • Administered by the University of Texas at Austin • Institute for Organizational Excellence • 84% response rate from Employees (up 13.5 %) The first survey was conducted in 2014, plan on conc years) next one will be summer of 2018. The organiza years of experience surveying hundreds of organizatioi We cannot quite see a trend with this second data pointy 273 employees responded out of 325, which is c demonstrates that employees are willing to take the time The 2016 score is in the healthy range. Overall score in increase of 4.8 %. We are moving the needle in, the right • Levels of Employee Engagement 18% Highly 30% Engag( 41 % Mader, 11% Disene 345 to 369 — this represents an Survey Results —'Interpreting-the Data — Presented by Executive Director Kyle Kinateder • Score — averaging all items responses on a 5 point scale. A year over year change of 0.2 is significant and should be looked at closer to either celebrate or focus our attention. The score is also shown by multiplying the average score by 100. • Benchmark — ability to compare previous years and similar organizations. • Standard Deviation — the level of agreement between the responses. Larger deviations indicate grater disagreement. • Lowest 0.71 (Score 4.24) — Question #6: I know how my work impacts others in the organization. • Highest 1.24 (Score 3.26) — Question #34: Health insurance benefits are competitive with similar jobs in the community. 07 -29 -2016 Minutes Page - 7 - • Construct — groups similar items together. Survey Results Highlights: • Consisted of 48 primary questions. • In the specific questions about pay (questions 30 -32), while still low with regard to the agreement percentage, we moved the needle in the right direction. • For those questions that reflected a past score (43 out of 48), we moved the needle to the right in all but one question. Shorter iteration this time; reduced from 71 in 2014. Question 30 (which was "My pay keeps pace with the cost of living" — increased from 1.92 to 2.61. Question ,34 (which was "salaries are competitive with similar jobs in the community " — increased from" 1:95 to 1:80. Question 32 — (which was "I feel I am paid fairly for the work I do ") increased from 2.17 to 2.89; -The one question was regarding health insurance benefits, which many organization are also similarlyfacing. Comparison of constructs: Constructs are similar items that are grouped together;,the produce the scores. These constructs capture the concep organizational performance and engagement. Result of that 2014 low scores — Pay — 201, Internal Communication -305, 2014 high scores — Employee Engagement 369; mpIQyee 2016 low scores — Pay — 277, Internal Communication ---- 346 2016 high scores — Employee Engagement 388, Employee D Don't look at us r agree; and moving the group. and to ed by leadership and drive in the breakdown. 3 379, strategic — 380 —351. nt 389, strategic 402 /e everyone all the, way to strongly agree. Moving the neutrals to to neutrals is a start* Examples of success of this were provided to Going forward our 'employees ha high expectations from this leadership team to act upon the survey results. From the §urvey 1 in 5 employees believe the information from this survey will go unused. It's more than looking at the Employee Engagement and Construct pages. The survey itself isn't a report card but the foufi4iition for a discussion. Communication: Talk to your employees. Mr. Kessel reviewed the constructs which going forward it's more than looking at the employee engagement survey and construct pages, its individual and organizational satisfaction. He discussed the following major engagement drivers: Level 1: Fundamental resources & Equipment Level 2: Individual Contributions Level 3: Team Contributions Level 4: Organizational Improvement Mr. Kessel discussed the following major drivers for individuals: Level 1: Since of Purpose Level 2: Mastery of Job 07 -29 -2016 Minutes Page - 8 - Level 3: Workplace Autonomy Mr. Kessel reviewed an "Engaged Workforce" utilizing and from our Strategic Plan — "Healthy Balance ". An engaged workforce provides better service to our internal and external customers and is the foundation for continuous growth and progress. Mr. Kessel mentioned that we will possibly have four (4) new Councilmembers, all members' present discussed items for a new council orientation program and what it should include. Some items of suggestion included: Meet staff/departments (overview v. detail) Budget 101 and Municipal Finance briefing Council Rules, Procedures and Code of Ethics Strategic Plan overview Glossary of terms Boards, commissions, intergovernmental par and staff. City tour with lots of maps (zoning, ETJ, etc.) Open meetings training /legal topics review Media Training Retreat /personality profiles (DiSC, leadership Governance Model Charter 101 EDC overview Comprehensive Development Plan Final comments Adiournment Mayor ATTEST: Brenda Dennis, City 07 -29 -2016 Minutes Page - 9 - with Council members of Council that were present. Michael Carpenter, Mayor MINUTES REGULAR MEETING August 2, 2016 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on August 2, 2016, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to -wit: Mayor Michael Carpenter Councilmember Grumpy Azzoz Staff Present: Executive Director Brian James City Attorney Charles Zech Mayor Pro -Tem Edwards and Councilmember John Call to Order — City Council Regular Session Councilmember Jim Fowler Councilmember Robin Thoi City Manager John Kessel Executive Director Dudley Wait City Secretary Brenda Dennis Mayor Carpenter called the meeting to order at 6:00 p.m. (Councilmember Thompson) Councilmember Thompson provided the openin flags of the United States and tli State of Texas. t. the pledges of allegiance to the Mayor Carpenter recognized Boy Scants Jack and Gavan Dusbabek with Troop 467 who were in the audience this evening. Boys Scouts Jack and Gavan Mated that they were here tonight as they were working on the Communication Merit 1adg,�. Mayor Carpenter welcomed them. vents (B. James /D. Wait /S. Gonzalez) Executive Director Brian. James who provided the following • Fridays August 5 TML Region 7 Meeting Kerr Arts and Cultural Center 228 Earl Garrett Street, Kerrville Those attending need to meet in the City Manager's Office area before 4:00 p.m. to depart for Kerrville. • Saturday, August 6 Pack the Bus Throughout the month of July, Communities in Schools of South Central Texas will collect school supplies and will hold an all -day event at three area H -E -B locations, one being our Schertz H -E -B, 8 am. -4 pm. 08 -2 -2016 Minutes Page - 1 - • Thursday, August 11 Community Budget Meeting Corbett Middle School 6:30 PM 12000 Ray Corbett Drive • Friday, August 19 Senior Center Boogie Disco Dinner Dance Schertz Civic Center, 6:00 -10:00 pm • Announcements and recognitions by City Manager (J. Kessel) Mayor Carpenter recognized City Manager John Kessel who stated he wanted to acknowledge all the departments who have been working on their budgets, particularly the Finance Department. Mr. Kessel stated that recently we held tw (2) great retreats, (1) on Thursday with Staff and (2) on Friday with Council. Mr. Kes 'sell congratulated all departments for the work they have done so far. New Employee Recognitions: Workshop • Discussion, presentation : and- update regarding the Schertz Seguin Local Government Corporatidtf - regarding current water supply, future water development, water pipeline construction and f ancling forpire projects. (D. Wait /A. Cockrell /A. Friedman) Carpenter recognized Executive Director Dudley Wait who introduced SSLGC Manager Allen, Cockrell, Assistant General Manager Amber Briggs and Vice tt: with Willdan. Financial Services Dan Jackson. Mayor Carpenter recognized Mr. I whd,,stated that the following presentation will cover the following topics: • Project Organization • Project Idistory • Project Map • Current Facilities • SSLGC Sales • Wholesale Customers • Guadalupe Project • Parallel Pipeline • SWIFT Funding • Risks • Water Rates 08 -2 -2016 Minutes Page - 2 - Mr. Cockrell provided the following information regarding the Project organization: • SSLGC was formed under Subchapter D of Chapter 431 of the Texas Transportation Code in December 1998 • SSLGC is governed by a Board of Directors (5) appointed by each city council • Staggered five year terms with majority control shifting each year between owner cities • One ex- officio member from each city • Management Services Agreements were developed between each city and SSLGC SAWS Sales: 08 -2 -2016 Minutes Page - 3 - 15UUU 1 .0 14M 0 12,00. 0 1000.0 &,00.0 6,00.0 400.0 2 0,0 -2,00,.0 -4000 Wholesale Customers: 0 Water delivery began in Sept 02 1 • SSLGC wholesale water supplier & Feb 03 to im —4—T1 —0--T2 --*—Total T2 water for CY 2017 only • Provide Treatment and Transport for SAWS TI Water (11,688 ac-ft./yr.) Guadalupe Proiect: • Included in 2006, 2011 & 2016 Regional Plans • Needed for Summer Peaking and Projected Growth in Schertz 08-2-2016 Minutes Page - 4 - • Adjacent to SSLGC Pipeline in Guadalupe County Groundwater Conservation District (GCGCD) • Sites for Well Locations & Treatment Plant Purchased Carrizo Water Rights 3,791 ac- ft. /yr. Permitted Wells 3,226 ac- ft. /yr. Wells 5 7,763,910.37 Wilcox Water Rights 1,320 ac- ft. /yr. Permitted Wells 1,290 ac- ft. /yr. Wells 2 7,763,910.37 • SSLGC Estimated Expenditures to Date = $12,860,364 Guadalupe Proiect Breakdown GUADALUPE CATEGORY I COST 1 JENGINEERING 758,282.65 2 LAND $ 7,763,910.37 3 WATER LEASES $ 2,958,829.15 4 LEGAL FEES" $ 125,778.04 5 CONSULTING, FEES $ 24,332.16 6 WELL:TESTING $ 46,209.00 7 PERMITTING FEES $ 230,470.15 8 MISCELLANEOUS $ 1,286.00 9 BOND EXl E SES (interest & issuance fees) $ 951,266.81 TOTAL EXPENDITURES $ 12,860,364.33 SWIFT Funding: • SWIFT Funding: ❖ Low Interest Loan (30 yr. term) - $43,670,000 -TWDB Subsidy of $5.6M -Total Estimated Combined Interest Savings of $9.5M ❖ TWDB Participation Agreement - $22,830,000 - Pipeline Ownership: TWDB 71% & SSLGC 29% - Deferred Payments of $6.5M for ten years (0% interest) • SWIFT Schedule: 08 -2 -2016 Minutes Page - 5 - ❖ TWDB Board Action on Master Agreement — July 21, 2016 ❖ SSLGC Board Action on Master Agreement — August 18, 2016 ❖ City Councils Actions on Master Funding Agreement — TBA ❖ TWDB & SSLGC Closing — November 16, 2016 • Project Schedule: ❖ Design Phase Complete — September 2017 ❖ Start Construction — June 2019 ❖ Construction Complete — February 2021 Project Risks: Mayor Carpenter recognized Mr. Dan J provided information on the following, a< IMDact on Rates: 2016 is rst such adjustment in 5 years Wished need for annual water and wastewater rate • SSLGC costs increases only yp rt of reason why annual rate adjustments are required Other reasons include increase in general utility operating costs and capital spending to repl.e aging infrastructure within the City Mayor Carpenter ""recognized Mr. Andrew Friedman, Financial Advisory with SAMCO who came forward addressing Council's questions regarding funding and interest rates. Mayor Carpenter recognized Allen Cockerell who lastly spoke regarding the City of Schertz impact on average monthly charges. He provided the following information: 08 -2 -2016 Minutes Page - 6 - Water WW Prior Effective Oct -15 Effective Oct -16 Effective Oct -17 Effective Oct -18 Effective Oct -19 5/8" Meter 5,000 W 5,000 WW 333.14 380.93 428.05 458,33 483.64 Current Rate Plan $ 55.04 $ 60.56 $ 65.12 $ 69.67 $ 73A7 $ 75.67 Seen 2 -- No SAWS Excess 55.04 60.56 67.49 74.75 79.19 82.68 5/8" Meter Current Rate Plan Seen 2 -- No SAWS Excess V Meter (Business] Current Rate Plan Seen 2 -- No SAWS Excess 2" Meter (Business] Current Rate Plan Seen 2 -- No SAWS Excess 67.56 73.84 78.93 84.02 87.81 90.61 67.56 73.84 82.22 91.10 96.19 100.36 85.56 33114 370.29 405.19 431.26 452.14 85.56 333.14 380.93 428.05 458,33 483.64 92.58 1,324,30 1,502.19,_ 1, 615.76 1,78&79 '1,88T53 92.58 1,324.30 1,537.98 1,742.71. 1,877.88 1,993.55 In addressing Councilmember Thompson' Parallel Pipeline, what affects would it ha to our future growth, to our future econoi we may want to bring in? Mr. Cockrell st be able to supply his customers of their supply all your water needs, There hasn't options are for Schertz to do this. "It woul we don't have water to sumnly for all the u Mayor Carpenter reco; growth in the City of c No more homes, no i+ damage of doing tl is significant but if we Mr. Cockrell c( century. Those: choice that the extra in your w comes down to. control of Sch fill to ii nding the Guadalupe Project and 51 to consumers, what is the cost r eost impact to any businesses I the corporation side he will not ertz, they would not be able to that will cost and even what the nic impact on this community if jackso,tilwbo stated that you would probably have a moratorium on Iy shortly,, which uv6uld be devastating from an economic stand point. sirnoe ses, businesses that are already here might leave. The economic i incalculable. Councilmember Thompsons stated that the 66 million vn it could be even more significant the other way. Mr. Jackson and an investment in the City of Schertz. Water is the oil of the 21't water resources control their future. Those who do not, cannot! The .as as well as other cities have is do you want to pay a few dollars that your children and grandchildren will have water. That's what it Mr. Wait came forward stating the very project we are involved with as a City, SSLGC both well fields the Gonzalez has been on since 2003 and the upcoming CVLGC projects, all of these are timed to meet what we expect for our growth pattern. If we don't do this, instead of us being a water seller we become a water purchaser. If you are a water purchaser you do not control your destiny, the people that sell the water control your destiny. If there are water shortages the seller gets to decide who gets the water. Mayor Carpenter recognized Councilmember Azzoz who stated that there were two (2) things that his dad taught him that have no alternatives: air and water. We cannot put a price cap on water; we must 08-2 -2016 Minutes Page - 7 - constantly look for it. His question was he hopes that we own more than we are leasing. Mr. Cockrell addressed his question with the following rough breakdown. In Gonzalez County we own 2500 acres and it is one acre foot per acre, so that is 4500 acre feet per year, and the remainder we lease for local landowners around our well field throughout the county. Mr. Cockrell also addressed the price of leasing as well as other questions. Mayor Carpenter stated that water is critical. One of the things when he first ran for City Council, the first thing they showed him was where the Council Chambers were. The second thing they said was this is the ACUZ, this is the danger zone on the north and south sides of Randolph and we can't develop there because we have to protect the mission of the base. The thud thing we talked about was water. It has been critical to our success both economically and a,a quality of life that we have water in this city as we have. Former Councilmember Greenwald w h6 is in the audience and who is now serving as President of the Local Government Corporation got this', tarted twenty years ago. It was absolutely the right thing to do then and it is absolutely the right thing t()" do now. His comment to them would be, you know it is kind of like building a school, and whatever eve build it already is not going to be big enough. Press on. Find more. What you have before us is pr6bably Phase I of many others. Not only do we need to press on but we also need to be thinking about other sources as well, and he knows they are. Also, as a little brief history on one c of the things that our good water source has provided us. When we were in negotiations td bang `Amazon into Schertz, we told them, and as a requirement from the insurance company, they needed 60 pounds of water pressure in the hydrants in the area they are now. Sam Willoughby, former Public Works Director at the time, told them that actually it would be 90 pounds or, better, At that time Amazon said there was no way; they asked them to show them right now. We went iip"there and sure enoug , put the meter on and it was above 90 pounds. Because we were able to do that, wvitcut hesitation it had a direct effect on our economic development success in that project and many otheirs.wi l,be like that as we go on. This has an effect on the entire community both in our coninercial and in our residential space and our ability to do everything else that:wv ��A e do. you say, it is the oil of the 21st century; the precious metal of the 21st century that we eontrol our water source here in Schertz is a material advantage over our competition. Our competition is every municipality and county and pseudo governmental agency around us. Great work and bl a e continue.— Mayor Carpenter recognized Mr. ,Cockrell who stated that he would like to reiterate a comment that Mr. Jackslo, n made earlier about SAWS,,., ""They have been a fantastic partner for us as a customer and it has Wvored ,very well that arrangement for them purchasing our excess water, both on the water resource side at SAWS and us never, saw this coming, this little hiccup where they wouldn't buy excess water.e are still trying, to work through this. The next big hurdle is the Vista Ridge Project and he can guarantee that SAWS upper management is committed to that project. We will see what happens. What we ogld life to do is secure a firmer agreement on excess water between now and 2021or 2022 when Vista Ridge comes on. We are talking to SAWS about this and working on getting this arranged. That wiltprovide more stability, at least in the short term, five years as far as our rates. Hearing of Residents No one spoke. Consent Agenda Items 08 -2 -2016 Minutes Page - 8 - 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. I Minutes — Consideration and/or action regarding the approval of the minutes of the Regular Meeting of July 26, 2016. (J. Kessel/13. Dennis) 2. Ordinance No. 16-M-26 — Consideration and/or action approving an Ordinance setting the Fee Schedule of the City of Schertz for FY 2016/17. Final Reading (J. Kessel/J. Santoya/J. Walters) The following was read into record: ORDINANCE NO. 16-M-26 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING THE CITY OF SCHERTZ CODE OF ORDINANCES AND CERTAIN OTHER ORDINANCES BY AMENDING AND ESTABLISHING FEES FOR CERTAIN LICENSES, PERMITS, AND OTHER SERVICES PROVIDED BY THE CITY OF SCHERTZ. 3. Ordinance No. 16-T-21 — Conside budget adjustment to the General Wait/D. Covington) The following was or action approving an Ordinance authorizing a the FY 201546, Budget. Final Reading (D. 16-T-21 AN ORDINANCE BY�THE: CITY 'COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A'' BUDGET ':,`AI)JUS'TMENT TO THE GENERAL FUND; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE ,-'AND PROVIDING AN EFFECTIVE DATE Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by Councilmember Fowler to approve consent agenda items 1-3. The vote was unanimous with Councilt0embers Fowler, Azzoz, and Thompson voting for and no one voting no. Mayor Pro-Tem Edwards and Councilmember John were absent. Motion passed. 4. Resolution No. 16-R-61 — Consideration and/or action approving a Resolution authorizing expenditures with Verizon Wireless, a DIR Vendor totaling no more than $133,100.00 for Mobile Device Services, Air Cards for Public Safety Fleet, laptop connect, 1pads and MiFi's. (B. James/M. Clauser) The following was read into record: 08-2-2016 Minutes Page - 9 - RESOLUTION NO. 16 -R -61 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING EXPENDITURES WITH VERIZON WIRELESS TOTALING NO MORE THAN $113,100.00 FOR MOBILE DEVICE SERVICES, AIR CARDS FOR PUBLIC SAFETY FLEET, LAPTOP CONNECT, IPADS AND MIFI'S AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized IT Director Myles Clauser who said the City of Schertz has been continuously working to move our City and Public Safety fleets into a more reliable, faster service provider due to the City's large wireless demand. AT&T notified the City that the tunnel to the City of San Antonio would no longer be a viable, service. The City looked to Verizon services to expand to our mobile fleet. The City desires to continue to purchase services from Verizon Wireless, pursuant to the terms and conditions of the State of Texas Department of Information Resources (DIR) Agreement. A So as we, move services from AT &T, the AT &T monthly expense will go down while the Verizon expense would increase. This will not require any additional funding to the City budget. Verizon has continued to provide the City with excellent wireless and customer service and this agreement will allow the City to maintain the highlevel of service that we provide to the Community. Staff recommends approval. 5. Consideration of Bids - ity of Schez, , Texas'' Combination ition, Series 2016A' ; considers mendation convening this matter; 1 /7::Santoya /J. Walters /A. Friedman) bids relating to the Sale of Obligations Designated Tax and Limited Pledge Revenue Certificates of lion and approval of Financial. Advisor's and other matters in connection therewith. (J. Mayor Carpenter recognized Financial Advisory, Managing Director Andrew Friedman who stated that today between 10:00 a.m. and 11:00 a.m.; they took the bids for $2,500,000 Combination TaX,,and Limited Pledge Revenue Certificates of Obligation, Series 2016A. As a result we had two bidders: (1) Fidelity Capital Markets for 2.26% and (2) Robert W. Baird & Co., Inc. for 2.35 %. The low bidder was Fidelity Capital Markets for 2.26 %. Mr. Friedman recommended the Council award the bid to Fidelity Capital Markets. Mr. Friedman also stated that they are pleased with the rate. Mayor Carpenter recognized Councilmember Azzoz who moved that a motion by Trustee Azzoz seconded by Trustee Thompson that the City Council accept the financial advisor's recommendation concerning the acceptance of bids relating to the sale of obligations designated as "City of Schertz, Texas Combination Tax and Limited Pledge Revenue 08 -2 -2016 Minutes Page - 10 - Certificates of Obligation, Series 2016A ". The vote was unanimous with Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no. Mayor Pro -Tem Edwards and Councilmember John were absent. Motion passed. 6. Ordinance No. 16 -13-22 - Consideration and approval of an Ordinance authorizing the issuance of "City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016A "; providing for the payment of said certificates by the levy of an ad valorem tax upon all taxable property within the city and further securing said certificates by a lien on and pledge of the pledged revenues of the system, providing the terms and conditions of said certificates and resolving other matters incident and relating to the issuance, payment, security, sale, and delivery of said certificates, including the approval and distribution of an official statement pertaining thereto,";, authorizing the execution of a paying agent /registrar agreement and an official bid fora; eornP g with the requirements of the letter of representations previously executed with the 'depository trust company; authorizing the execution of any necessary engagement a grcements with the City's Financial Advisors and /or Bond Counsel; and providing an effective date. First and Final (J. Kessel /J. Santoya /J. Walters /A. Friedman). The following was read into record: Mayor Carpenter recognized Financial Advisory Andrew Friedman who stated the Certificate Ordinance before the Council tonight is to authorize the sale of approximately $1,600,000 Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016A. Mayor Carpenter recognized Councilmember Fowler who made a motion and seconded by Councilmember Thompson that the City Council adopt an ordinance authorizing the issuance of "City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016A ". The vote was unanimous with Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no. Mayor Pro -Tem Edwards and Councilmember John were absent. Motion passed. 08 -2 -2016 Minutes Page - 11 - 7. Consideration of Bids - Consideration of bids relating to the sale of Obligations designated as "City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 201613", consideration and approval of Financial Advisor's recommendation concerning this matter; and other matters in connection therewith. (J. Kessel /J. Santoya /J. Walters /A. Friedman) Mayor Carpenter recognized Financial Advisor, Managing Director Andrew Friedman who stated that today they took the $1,400,000 Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 2016B to bid. As a result we had two bidders: (1) Robert W. Baird & Co., Inc., for 3.17% and (2) Raymond Jai es & Associates, Inc. for 3.20 %; the low bidder was Robert W. Baird & Co., Inc. for a rate of 3.17 %. Mr. Friedman recommended that Council award the bid to Robert W. Baird &: Co., Inc. Mr. Friedman also stated that they are pleased with the rate. Mayor Carpenter recognized Councilmember Azzo Azzoz seconded by Trustee Thompson that the 'City recommendation concerning the acceptance: of big designated as "City of Schertz, Texas Combinati Certificates of Obligation, Taxable Series 2011 Councilmembers Fowler, Azzoz, and Thompson v+ Pro -Tem Edwards and Councilinember John were who moved that'a motion by Trustee Council accepts the Financial advisor's s relating to the sale. of, obligations ,n Tax, and Limited Pledge Revenue ". The vote was unanimous with ting for and no one voting no. Mayor absent. Motion passed. 8. Ordinance No. 16 -B -23- Consideration- and, ,approval of an Ordinance authorizing the Issuance of "City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable series 2016131" providing for the payment of said certificates by the le v of an ad valorem tax upon all taxable property within the city and of trust company; auto City's Financial adv Finch O. Kessel /J. S The followine was and/ ,a /J. by a lien, on and pledge of the pledged revenues of the conditions of said certificates and resolving other matters �e, payment; security, sale, and delivery of said certificates, 4tion of an official statement pertaining thereto; authorizing gistrar agreement and an official bid form; complying of representations previously executed with the depository cecution of any necessary engagement agreements with the �ond Counsel; and providing an effective date. First and ters /A. Friedman) record: ORDINANCE NO. 16 -B -23 AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, TAXABLE SERIES 2016B "; PROVIDING FOR THE PAYMENT OF SAID CERTIFICATES BY THE LEVY OF AN AD VALOREM TAX UPON ALL TAXABLE PROPERTY WITHIN THE CITY AND FURTHER SECURING SAID CERTIFICATES BY A LIEN ON AND PLEDGE OF THE PLEDGED REVENUES OF THE SYSTEM; PROVIDING THE TERMS AND CONDITIONS OF SAID CERTIFICATES AND RESOLVING OTHER MATTERS INCIDENT AND RELATING TO THE ISSUANCE, PAYMENT, SECURITY, SALE, AND DELIVERY 08 -2 -2016 Minutes Page - 12 - OF SAID CERTIFICATES, INCLUDING THE APPROVAL AND DISTRIBUTION OF AN OFFICIAL STATEMENT PERTAINING THERETO; AUTHORIZING THE EXECUTION OF A PAYING AGENT /REGISTRAR AGREEMENT AND AN OFFICIAL BID FORM; COMPLYING WITH THE REQUIREMENTS OF THE LETTER OF REPRESENTATIONS PREVIOUSLY EXECUTED WITH THE DEPOSITORY TRUST COMPANY; AUTHORIZING THE EXECUTION OF ANY NECESSARY ENGAGEMENT AGREEMENTS WITH THE CITY'S FINANCIAL ADVISORS AND /OR BOND COUNSEL; AND PROVIDING AN EFFECTIVE DATE Mayor Carpenter recognized Financial Advisor Andrew Friedman. who stated the Certificate Ordinance before the Council tonight is to authorize the sale of approximately $1,400,000 Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016B. Mayor Carpenter recognized Councilmember Councilmember Fowler that the City Council "City of Schertz, Texas Combination Tax Obligation, Series 2016B ". The vote was unai and Thompson voting for and no one Councilmember John were absent. Motion x 9. Consideration of bids - Consid( "City of Schertz, Texas General of financial advisor's recommeni connection therewith. Q. Kc of bids relating itQn Bonds, Sc -oncerniruz this A. Friedman) Mayor Carpenter recognized Financial Advisor, Managing Director Andrew Friedman who stated that today they took the $6,000,000 General Obligation Bonds, Series 2016 to bid. As a result we had two bidders: (!),Fidelity Capital Markets for 2.47 %, and (2) Robert W. Baird & Co., Inc. for 2.48 %. The low bidder was Fidelity Markets for 2.47 %. Mr. Friedman recommended that C runcit sward the bid to Fidelity Capital Markets. Mr. Friedman also Mayor Carpenter recognized ,Councilmember Azzoz who moved that a motion by Trustee Azzoz seconded by Trustee Fowler that the City Council accept the financial advisor's ree�itnendation conee�ping the acceptance of bids relating to the sale of obligations designated, as "City of 'Schertz, Texas General Obligation Bonds, Series 2016. The vote was unanimottwith Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no. 'Mayor Pro -Tem Edwards and Councilmember John were absent. Motion passed. 10. Ordinance No. - Consideration and approval of an Ordinance authorizing the issuance of "City of Schertz, Texas General Obligation Bonds, Series 2016 "; levying a continuing direct annual ad valorem tax, within the limitations prescribed by law, for the payment of the bonds; prescribing the form, terms, conditions, and resolving other matters incident and related to the issuance, sale, and delivery of the bonds, including the approval and distribution of an official statement pertaining thereto; authorizing the execution of a paying agent/registrar agreement and an official bid form; complying with the provisions of the depository trust company's letter of representations; authorizing the execution of any necessary engagement agreements with the City's Financial Advisors and /or Bond Counsel; 08 -2 -2016 Minutes Page -13 - and providing for an effective date. First and Final (J. Kessel /J. Santoya/J. Walters /A. Friedman) The following was read into record: ORDINANCE NO. 16 -B -24 AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY OF SCHERTZ, TEXAS GENERAL OBLIGATION BONDS, SERIES 201699; LEVYING A CONTINUING DIRECT ANNUAL AD VALOREM: TAX, WITHIN THE LIMITATIONS PRESCRIBED BY LAW, FOR THE PAYMENT OF THE BONDS; PRESCRIBING THE FORM, TERMS, CONDITIONS" AND RESOLVING OTHER MATTERS INCIDENT AND RELATED TO THE ISSUANCE, SALE, AND DELIVERY OF THE BONDS, INCLUDING THE APPROVAL AND DISTRIBUTION COUNSEL; AND PROVIDING 'OR AN EFFECTIVE DATE Mayor Carpenter recognized Financial Advisor Andrew Friedu 4fi who stated the Certificate Ordinance before the Council tonightig to authorize the sale of approximately $6,000,000 in General Obligation Bonds, Series 2016. Mayor Carpenter recognized agenda items 1-through 10. 11. Announcements by City Manager Brenda Dennis who provided the roll call votes for • Citizen Kudos • Recognition of City employee actions • New Departmental initiatives No further announcements were made. 12. Future Agenda Item Request for City Council: This is an opportunity for City Council members to request that items be placed on a future agenda. No discussion of the merits of 08-2 -2016 Minutes Page -14 - the item may be taken at this time. Should a Council Member oppose placement of the requested item on a future agenda, the Mayor, without allowing discussion, shall ask for the consensus of the other City Council members to place or not place the item on a future agenda. No items were requested. 13. Announcements by Mayor and Councilmembers • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) • Continuing education events attended and to be attended, • Recognition of actions by City employees • Recognition of actions by community volunteers Mayor Carpenter recognized Councilmember Fowler who stated that 1,lypsterday he has survived 57 years with the same woman. Mayor, and Co-diie, il congratulated Councilmember Fowler and his wife Pat. Mayor Carpenter recognized Councilmember Azzoz who said that two weeks ago he held a fundraising event for the fallen Police Officer's family. They, were able to raise over $10,000 and more funds are still coming in. H6 ihanked all those that fi4rticipated and contributed and he is sure that the family will thank everyone. Mayor Carpenter stated it management of our more the top of his head count we have been able to save last several years. o gr� is amazing as he watches the things that they do with regard to our It is about four and half million dollars he can immediately off from bond refunding and having an advantageous bond rating that payers and therefore ourselves as resident taxpayers over the is to the Council and to staff for doing an excellent job with t i also a reflection of the relative power of Council that in .ted bytouncil the Mayor shall sign, and he pointed over to a large package, he gets to for the next hour sign documents s hew it works. at 7:42 p.m. Michael Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary 08 -2 -2016 Minutes Page -15 - 08 -2 -2016 Minutes Page -16 - Agenda No. 2 CITY COUNCIL MEMORANDUM City Council Meeting: August 9, 2016 Department: Mayor /Council Subject: Excused Council Absences — Consideration and/or action excusing City Council Member absences BACKGROUND Per the revised Charter approved by voters on November 3, 2015, regarding Council absences, Section 4.06 (3) Vacancies, Forfeiture, Filling of Vacancies, "Failure to regularly attend City Council meetings without an approved absence obtained by a majority vote by City Council either before or after the absence. There shall be a presumption of failure to regularly attend when three (3) regular meetings are missed during a term year without obtaining an approved absence from City Council." An affirmative vote of a majority of Council approving the Council's absences is required for the following: 8 -2 -2016 Regular Council Meeting 8 -2 -2016 Regular Council Meeting FISCAL IMPACT None Mayor Pro -Tem Edwards Councilmember Daryl John Staff recommends Council approve the absences as listed above. lu 1 010 [o] 7_1101111/1011 City Council Meeting: Department: Subject: Agenda No. 3 August 9, 2016 Economic Development Resolution No. 16 -R -62 - Consider /Discuss /Act on the Agreement for Provisions of Professional Services between the City of Schertz and the SEDC Background Goal: To establish the Agreement for Provision of Professional Services between the City of Schertz and the Schertz Economic Development Corporation ( "Service Agreement ") which outlines the professional services rendered by the City of Schertz to the SEDC. Overview: As part of our regular operations for many years, the SEDC has transferred funds to the City of Schertz for expenses that related to the SEDC and our mission. The Service Agreement formalizes the transfer of funds by detailing the specific services that will be provided to the SEDC by the City of Schertz. The services include: providing administrative staff (Executive Director, Business Retention Manager, Marketing and Recruitment Manager, and Executive Assistant) and support (Human Resources, IT, Payroll, City Management, City Secretary, etc.), managing financial records, preparing the budget, and providing office space. The amount of the Service Agreement was determined during the budget period for the Personnel Services and Interfund Charges -Admin accounts. Going forward, the Service Agreement will be renewed annually in connection with the annual budget process. Summary of Recommended Action: Consider, discuss and act on the approval of the Service Agreement and authorize the associated expenditures on behalf of the SEDC. Fiscal Impact The total amount of the Service Agreement is $430,445.00 for the FY 2016 -17 budget. The funds will be transferred from the SEDC to the City of Schertz in two equal transfers on October 1, 2016 and April 1, 2017. The funds will be distributed to the Personnel Services and the Interfund Charges -Admin accounts. Staff Recommendation The SEDC Board of Directors met on July 28, 2016 at their regular board meeting to consider, discuss and act on the Agreement for Provision of Professional Services between the City of Schertz and the Schertz Economic Development Corporation and to make a recommendation the City Council to authorize the funds in connection with the agreement. A motion was made by Mr. Macaluso. Seconded by Ms. Kiser to approve the Provision of Professional Service and to recommend that he City Council authorize the expenditures without contingency. Staff Recommendation Staff recommends approval of the Service Agreement. Attachment(s) • Resolution No. 16 -R -62 Agreement for Provision of Professional. Services Between the City of Schertz and the Schertz Economic Development Corporation RESOLUTION NO. 16 -R -62 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN AGREEMENT FOR PROVISIONS OF PROFESSIONAL SERVICES BETWEEN THE CITY OF SCHERTZ AND THE SCHERTZ ECONOMIC DEVELOPMENT CORPORATION, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the Development Corporation Act of 1979, as amended (Section 501.001 et seq, Texas Local Government Code, formerly the :Development Corporation Act of 1979) (the "Act ") provides a corporation those powers incidental or necessary to the purposes of the corporation; and WHEREAS, the Schertz Economic Development Corporation (the "Corporation ") desires to engage the City for the provision of certain professional and other services to assist the Corporation in carrying out its goals and objectives; and WHEREAS, the Act prohibits the City from providing things of value, including professional services, in aid of corporation without receiving fair value compensation in return; and WHEREAS, the City Council has determined that it is in the best interest of the City to approve the Agreement for Provisions of Professional Services Between the City of Schertz and the Schertz Economic Development Corporation and that such agreement constitutes fair value for the services to be rendered under the agreement. �,CHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to execute and deliver the Agreement for Provisions of Professional Services Between the City of Schertz and the Schertz Economic Development Corporation in substantially the form set forth on Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 9th day of August, 2016. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) EXHIBIT A AGREEMENT FOR PROVISIONS OF PROFESSIONAL SERVICES BETWEEN THE CITY OF SCHERTZ AND THE SCHERTZ ECONOMIC DEVELOPMENT CORPORATION AGREEMENT FOR PROVISION OF PROFESSIONAL SERVICES BETWEEN THE CITY OF SCHERTZ AND THE SCHERTZ ECONOMIC DEVELOPMENT CORPORATION THE STATE OF TEXAS KNOWN ALL MEN BY THESE PRESENTS: COUNTY OF GUADALUPE THIS AGREEMENT, executed the day of , 20161 by and between the CITY OF SCHERTZ, a municipal corporation, acting by and through its City Council, situated in Guadalupe County, Texas (hereinafter referred to as "City "), and the City of Schertz Economic Development Corporation, a Texas non - profit industrial development corporation (hereinafter referred to as "SEDC ") acting by and through its President of the Board is as follows: WITNES SETH: 1. The City agrees to provide management, professional, administrative, financial and investment services to the SEDC according to the terms of this agreement. Direct services the City shall perform for the SEDC shall include: 1. Providing Salary, workers' compensation, health, and retirement expenses for City employees assigned to the SEDC. 2. Preparing all financial and investment reports and keeping all financial books and records required by applicable law. 3. Preparing a budget for the forthcoming year for review and approval by the Board and City Council. 4. Providing all necessary budgeting, accounting, financial management and investment management through the City's Finance Department. 5. Providing accounts payable, payroll, purchasing and other bookkeeping services with oversight and training of such services. 6. Providing for a repository of records, office and conference space. 7. Providing technology support of hardware, software and phone systems through the City's Information Technology Department. 8. Providing automotive support of vehicles through the City's Fleet Department. Page 1 of 3 9. Providing for legal services through the City Attorney's office at the rate that those services are provided to the City. 10. Providing executive and administrative support, review and oversight by various City departments including but not limited to City Manager, City Secretary, and Executive Director and appropriate staffing. 11. Providing for project management services. It is understood and agreed that access to City staff resources by the SEDC is secondary to the needs of the City Council of the City of Schertz. II. Subject to the SEDC continuing to contract with the City for management services, the SEDC will pay to the City for its services pursuant to this agreement, in the form of a flat fee (the Service Fee) in the amount of four hundred thirty thousand four hundred forty five and zero cents ($430,445.00) per year. Said amount to be paid in two equal payments on October 1, 2016 and April 1, 2017. In addition to the Service Fee, the SEDC will pay to the City the City attorney's hourly fees as charged to the City for all attorney services. In the event of the termination of this agreement, the SEDC will be responsible for paying the City only the portion of the cost allocated to periods prior to the effective date of the termination of the agreement. III. It is the express purpose of this agreement for the City to provide certain management, professional, administrative and financial services to the SEDC. IV. Subj ect to early termination as provided in Article V below, this agreement shall be in effect for a period of one year commencing October 1, 2016 and ending September 30, 2017, and said agreement shall be extended for additional one -year terms thereafter under the same terms and conditions unless one party gives to the other party written notification at least thirty (3 0) days prior to the end of the existing term of its desire to terminate the agreement. V. Page 2 of 3 1. This contract may be terminated by the City or SEDC, in whole, or from time to time, in part, upon thirty (3 0) days notice from the terminating party to the other party. Termination shall be effective thirty (3 0) days after delivery of Notice of Termination specifying to what extent performance or work under the contract shall be terminated thirty (30) days after receipt by the notified party. 2. After receipt of a Notice of Termination the City shall: a. Stop work on the date as specified in the thirty (30) day Notice of Termination to the extent possible. b. Place no further orders or subcontracts except as may be necessary for completion of the work not terminated. C. Terminate all orders and subcontracts to the extent that they relate to the performance of work terminated by the Notice of Termination in so far as possible. d. The SEDC shall pay all expenses incurred through the date of termination. VI. This Agreement shall take effect on the day of execution. IN WITNESS WHEREOF, the parties have executed this Contract in the year and on the day indicated. CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION lh� Tim own President CITY SCHERTZ, TEXAS John Kessel City Manager Page 3 of 3 Agenda No. 4 CITY COUNCIL MEMORANDUM City Council Meeting: August 9, 2016 Department: Subject: Finance Resolution No. 1.6 -R -63- A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A PRELIMINARY MAXIMUM TAX RATE FOR FISCAL YEAR 2016 -17, SCHEDULING PUBLIC HEARINGS, AND OTHER MATTERS IN CONNECTION THEREWITH On July 25, 2016 the City received the certified property tax rolls from the Guadalupe, Comal, and Bexar appraisal districts. The Guadalupe Tax Assessor - Collector used this information, and information provided by the City of Schertz, to calculate the Effective and Rollback tax rates for the 2016 Tax Year. The Effective Rate is a calculated rate that would provide the city with about the same amount of revenues it received the year before on properties taxed in both years. The Rollback Rate is a calculated maximum rate allowed by law without voter approval. The 2016 Tax Year Effective Rate is $0.4803 per $100 of valuation and the 2016 Rollback Rate is $0.5080 per $100 of valuation. Staff is recommending a preliminary maximum property tax rate of $0.4911 per $100 which is the same overall rate as for the 2015 Tax Year. In accordance with Chapter 26.05(d) of the State's Property Tax Code, a governing body must hold 2 public hearings on the tax rate if the proposed tax rate exceeds the lower of the Effective or Rollback Tax Rate. In this case the hearings are required as the proposed rate exceeds the effective rate. A one - quarter page "Notice of 2016 Tax Year Proposed Property Tax Rate for the City of Schertz" must be published in the local newspaper and online in compliance with Senate Bill 1510. The notice will contain information based upon a preliminary tax rate to be determined by the City Council and the dates of the public hearings, if necessary. During the final tax rate adoption process Council can approve a lower rate at that time, however they will not be able to approve a rate higher than this without republishing the notices and holding additional public hearings. Due to timing constraints set by the State Tax Code 26.05(a), City Council Memorandum /Resolution Page 2 the latest council could set a new preliminary rate is August 30, 2016 . without calling special meetings. FISCAL IMPACT The proposed maximum rate maintains quality service to residents and businesses and provides growth in service offerings based on input staff received from Citizens and Council from Retreats, Community Meetings, and elections. The current property tax rate is $0.4911 per $100 valuation. The proposed maximum tax rate will remain the same at $0.4911 per $100 valuation. The M &O portion of the property tax rate will increase to $0.31.68 from $0.31.59 per $100 valuation. The I &S portion will decrease to $0.1743 from $0.1752 per $100 valuation. RECOMMENDATION Staff recommends the Council take a Record Vote on the preliminary maximum tax rate of $0.4911 per $100 valuation and schedule two Public Hearings for August 23, 2016 and August 30, 2016. Final adoption vote is scheduled for September 6, 2016. ATTACHMENTS Resolution No. 16 -R -63 RESOLUTION NO. 16 -R -63 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A PRELIMINARY MAXIMUM TAX RATE FOR FISCAL YEAR 2016 -17, SCHEDULING PUBLIC HEARINGS, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the City Council approve a preliminary maximum tax rate for Fiscal Year 2016 -17; and WHEREAS, the Local Government Code states two public hearings on the tax rate are required when setting a preliminary tax rate above the effective rate; and WHEREAS, the City Council has determined that it is in the best interest of the City to establish a preliminary maximum tax rate. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS Section 1. The City Council hereby authorizes a preliminary maximum tax rate of $.4911 per $100 valuation which is composed of the Maintenance & Operation Tax Rate of $0.3168 and the Interest & Sinking Tax Rate of $0.1743. Section 2. The City Council hereby schedules public hearings on the tax rate for August 23, 2016 and August 30, 2016. 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 Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 4. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 5. This Resolution 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 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 7. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 8. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 9th day of August, 2016. CITY OF SCHERTZ, TEXAS Mayor, Michael R. Carpenter City Secretary, Brenda Dennis (CITY SEAL) 50506221.1 - 2 - Agenda No. 5 CITY COUNCIL MEMORANDUM City Council Meeting: August 9, 2016 Department: Parks Subject: Resolution No. 16 -R -64 - Pursuit of funding for a restroom building at the Playscape through GVEC POWER UP Grant The new playscape near the Library and Recreation. Center has proven to be a very popular destination with children, parents, and grandparents. It was even mentioned in the August issue of San Antonio Magazine in an article about Schertz as being a great place for families to live. While the restrooms at the library are available to the pubic during most of the hours that the playscape is also commonly used, there are times (particularly during the evening and on weekends) that the library is closed with no access to the restrooms. Staff has received numerous comments from parents and grandparents identifying the need for permanent restroom facilities at the Playscape. In addition, the Parks Advisory Board has indicated that construction of permanent restroom facilities on site is their number one priority in response to public input. Goal: To obtain $20,000 in funding through a grant from GVEC to help offset the cost of construction of a permanent restroom facility near the playscape. Community Benefit: Construction of a permanent restroom facility near the Playscape will enhance the overall visitor experience for such an important community and regional asset. Summary of Recommended Action: Staff recommends that Council approve the request to pursue funding from GVEC to help fund the restroom facility near the playscape. FISCAL IMPACT The estimated cost of the restroom construction is between $120,000 and $140,000. In addition to seeking this grant, staff anticipates asking the Parks and Recreation Foundation to provide some funding. Approve Resolution No. 16 -R -64 authorizing the City Manager to apply for the GVEC Power Up Grant for $20,000. ATTACHMENT(S) Resolution No. 16 -R -64 RESOLUTION NO. 16 -R -64 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE PURSUIT OF A "POWER UP" GRANT FROM THE GUADALUPE VALLEY ELECTRIC COOPERATIVE, INC. TO FUND RESTROOMS AT THE PLAYSCAPE IN SCHERTZ, TEXAS AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City ") has received numerous comments from parents and grandparents about the desperate need for restrooms near the playscape; and WHEREAS, the City of Schertz Parks and Recreation Advisory Board indicated construction of these much needed restrooms was the highest priority park project; and WHEREAS, small children often need to use the restroom on very short notice, the City Council has determined that it is in the best interest of the City to pursue grant funding to support this project through the Guadalupe Valley Electric Cooperative, Inc. "POWER UP" grant program to do so now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to apply for a "POWER UP" grant from the Guadalupe Valley Electric Cooperative, Inc. in the amount of $20,000 for the construction of restrooms at the playscape. 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 9th day of August 2016. . CITY OF SCHERTZ, TEXAS Mayor, Michael R. Carpenter City Secretary, Brenda :Dennis (CITY SEAL) 50506221.1 - 2 -