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05-02-2017 Agenda with backupMEETING AGENDA City Council JOINT MEETING CITY COUNCIL AND ECONOMIC DEVELOPMENT CORPORATION AND REGULAR SESSION CITY COUNCIL May 2, 2017 HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 City.2f Schertz Core Values Do the right thing Do the best you can Treat others the way you would want to be treated Work together cooperatively as a team Call to Order — Joint Workshop Session Call meeting to order A. City of Schertz City Council B. City of Schertz Economic Development Corporation Workshop Items • Schertz Economic Profile (requested by Councilmember Davis) (J. Kessel/K. Kinateder) • Comparison of Neighboring City Incentive Programs (requested by Mayor Pro-Tem Edwards) (J. Kessel/K. Kinateder) • Hotel Occupancy Tax Funds Discussion - Main Street (B. James) Discussion Items 2. Resolution No. 17-R-30 Consideration and/or action approving a Resolution by the City Council to approve and authorizing the new Schertz Incentive Policy to be effective immediately; and other matters in connection therewith. (J. Kessel/K. Kinateder) 3. Resolution No. 17-R-31 — Conduct a Public Hearing and consideration and/or action approving a Resolution authorizing the program and expenditures of the City of Schertz Economic Development Corporation as provided for in the Economic Development Incentive Agreement between Evestra, Inc., and the City of Schertz Economic Development Corporation. (J. Kessel/K. Kinateder) Roll Call Vote Confirmation Adiouru Special Joint Workshop Meeting A. Schertz City Council 05-02-17 Council Agenda B. Schertz Economic Development Corporation Call to order — Regular Session City Council Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Mayor Pro -Tern Edwards) Proclamations • Proclamation recognizing Economic Development Week. (M. Carpenter /K. Kinateder) • Proclamation recognizing Building Safety Month. (M. Carpenter /L. Wood) • Proclamation recognizing Better Hearing Month. (M. Carpenter /Angelica Garza) • Proclamation recognizing Lupus Awareness Month. (M. Carpenter /Farelle Woodard) New Employee Recognition • EMS - Part -Time EMT's Angel Carpenter, Domingo Guerrero, Jr., Dylan. Ott, Ryan. Taylor, Frank Trifilio (D. Wait/T. Bradford) • Finance - Assistant Director of Finance Chad Garcia (B. James /J. Walters) • Police - Communications Officer Loretta Bilderback (D. Wait /R. Rutkowski) • Public Works - Water & Wastewater Service Man I Zachary Jura, Anthony Munoz (D. Wait /J. Hooks) City Events and Announcements • Announcements of upcoming City Events (B. James /D. Wait /S. Gonzalez) • Announcements and recognitions by City Manager (J. Kessel) 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 Actual 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. 05 -02 -2017 City Council Agenda Page - 2 - 1. Minutes — Approval of the minutes of the Regular Meeting of April 25, 2017. (J. Kessel /B. Dennis) 2. Excused Council Absences — Consideration and/or action excusing City Council Member absences for the following dates: April 25, 2017. (B. Dennis /Mayor /Council) 3. Main Street Committee Appointments — Consideration and /or action ratifying the appointment of Mayor Carpenter, Mayor Pro -Tem Edwards, Councilmember Mark Davis and appointing Councilmember Scott Larson to the Main Street Committee. (M. Carpenter /Council) Roll Call Vote Confirmation Requests and Announcements 4. Announcements by City Manager. 5. 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. 6. 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 Executive Session 7. City Council will meet in closed session under section 551.074 of the Texas Government Code, Personnel Matters to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of the City Manager. Reconvene into Regular Session 7a. Take any action based on discussions held in closed session under Agenda Item 7. Roll Call Vote Confirmation 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 05 -02 -2017 City Council Agenda Page - 3 - THE OFFICIAL BULLETIN BOARDS ON THIS THE 28th DAY OF APRIL 2017 AT 3:15 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. grewda 1�)eww'Ls Brenda Dennis, City Secretar 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 2017. 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. Mayor Carpenter Councilmember Davis— Place 1 Audit Committee Schertz Housing Authority Board Interview Committee for Boards and Commissions Interview Committee for Boards and Investment Advisory Committee Commissions TIRZ II Board Councilmember Gutierrez — Place 2 Councilmember Larson — Place 3 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 Councilmember Kiser — Place 6 Councilmember Crawford — Place 7 Schertz Animal Services Advisory Commission Schertz- Seguin Local Government Corporation Interview Committee for Boards and Commissions 05 -02 -2017 City Council Agenda Page - 4 - IU I0IU [o7 71L,1111101 City Council: Department: Subject: C• � 1 Agenda No. 2 May 2, 2017 Economic Development Resolution No. 17 -R -30 - Schertz Incentive Policy The City Council, on March 7, 2017 reviewed the draft Schertz Incentive Policy during a workshop item. The policy was developed with input from Schertz businesses, The Chamber, the City of Schertz Economic Development Corporation (the "SEDC ") Board of Directors, and the Economic Development Department Staff. The proposed Schertz Incentive Policy (the "Policy ") seeks to establish programs and guidelines for the City of Schertz' Chapter 380 program and the use of the SEDC funds. • The proposed Policy provides a unified approach for business retention and attraction by the City of Schertz and the SEDC. • The policy clarifies the difference between the incentives offered by the City and the SEDC and establish parameters for when each program will be used. • The policy places greater demand on the SEDC for economic development incentives while providing alignment with the council for the strategic use of SEDC funds. The Policy has three major programs: The Assistance Center, SEDC Incentive Policy, and Chapter 380 Incentive Policy. The first two programs are managed by the SEDC and will utilize SEDC funds. The Chapter 380 Incentive Policy will utilize the City's General. Fund. During the March 7, 2017 City Council Workshop to discuss the proposed Schertz Incentive Policy, Council made a recommendation to lower the minimum number of years from 5 to 3 that an existing Business must have been in operations to be considered for the grant. At the March 23, 2017 SEDC Board Meeting, the SEDC Board accepted the recommendation. The proposed Schertz Incentive Policy was discussed and approved with the current changes by the SEDC Board of Directors during their Regular Monthly Meeting held on March 23' as follows: A Motion to approve the Schertz Incentive Policy with the proposed changes recommended by City Council during their meeting on Feb. 28th was made by Mr. P. Macaluso. Seconded by Mr. G. Howell. Motion passed unanimously. RECOMMENDED ACTION It is recommended that the City Council approved the Schertz Incentive Policy by Resolution No. 17 -R -30. IIGW -W_ 01u1AWN There are no immediate expenditures associated with the approval of the Policy. All future incentives will be review by the SEDC and City Council and approved at their discretion. ATTACHMENTS Resolution No. 17-R-30 Schertz Incentive Policy RESOLUTION NO. 17 -R -30 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN 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, the Development Corporation. Act of 1979, . as amended (Section 501.001. Texas Local Government Code, formerly the Development Corporation Act of 1979) (the "Act ") authorizes a development corporation to fund certain projects as defined by the Act and requires development corporations to enter into performance agreements to establish and provide for the direct incentive or make an expenditures on behalf of a business enterprise under a project; and WHEREAS, the City of Schertz Economic Development Corporation ( "SEDC ") Board approved and recommended that the City Council authorize the Schertz Incentive Policy set forth on Exhibit A attached hereto and incorporated herein at the SEDC's Board meeting on March 23, 2017; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: Section 1. The City Council hereby authorizes the Schertz Incentive Policy as set forth in Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 2ND day of May, 2017. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) EXHIBIT A SCHERTZ INCENTIVE POLICY SCHERTZ INCENTIVE POLICY All economic development opportunities are encouraged to visit with the Economic Development Department to see how they fit into the overall efforts of creating a stronger business community. This policy is intended to act as a guideline for economic development incentives, specific Project details and amounts will be determined by the positive economic impacts created for the City of Schertz. Purpose The Schertz Incentive Policy has been created to increase job opportunities, add taxable value, create high quality of life, and diversify our local economy. The Schertz Incentive Policy will guide and ensure consistency between the City Council, the SEDC Board of Directors, and the Economic Development Department when engaging new and expanded business activities within the City of Schertz and its extraterritorial jurisdiction. Organizations Affected The City Council, SEDC Board of Directors, City Manager's office and Economic Development Department. Definitions Chapter 380 Incentive Agreement — formalized written agreement between the City of Schertz and a Company named to reflect the authorizing statute found in Chapter 380 of the Texas Local Government Code. Chapter 380 Incentive Agreements enact incentives authorized by the City of Schertz Chapter 380 Incentive Policy as defined in Section 3 of the Policy. City of Schertz Economic Development Corporation — abbreviated "SEDC" is a Texas, non - profit industrial development corporation. City Staff — Includes employees of all city departments. Company —a business enterprise. Economic Development Department — Under the Direction of the City Manager, the Executive Director and department staff are responsible for all economic development activities of the SEDC. Administrative expenses will be paid by the SEDC through the "Agreement For Provision Of Professional Services Between The City of Schertz and the Schertz Economic Development Corporation" which will be approved annually. Development Fee Grant — incentive for all or part of the fees paid to the City of Schertz in connection for a new or expanded business location. A Development Fee Grant is awarded by the SEDC through a Performance Agreement. Infrastructure Grant — incentive for infrastructure improvements which shall be limited to: streets and roads, rail spurs, water and sewer utilities, electric utilities, or gas utilities, drainage, site improvements, and related improvements; telecommunications and internet improvements. An Infrastructure Grant is awarded by the SEDC through a Performance Agreement. Performance Agreement — formalized written agreement between the SEDC and a Company. The Performance Agreement must include: a schedule of additional payroll or jobs to be created or retained and capital investment to be made as consideration for direct incentives provided or expenditures made by the SEDC under the agreement; and the terms under which repayment Approved: May 2, 2017 Page 1 of 7 must be made if the Company does not meet the performance requirements specified in the agreement. Performance Grant — a one time or multiyear incentive given in consideration for the creation or retention of Primary Jobs. A Performance Grant is awarded by the SEDC through a Performance Agreement. Primary Jobs — defined by Chapter 501 of the Texas Local Government Code: (A) a job that is: (i) 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 (ii) included in one of the following sectors of the North American Industry Classification System (NAICS): 111 Crop Production 112 Animal Production 113 Forestry and Logging 11411 Commercial Fishing 115 Support Activities for Agriculture and 211 -213 221 311 -339 42 48 -49 51 (excluding 512131 and 512132) 523 -525 5413, 5415, 5416, 5417, and 5419 551 56142 922140 Forestry Mining Utilities Manufacturing Wholesale Trade Transportation and Warehousing Information (excluding motion picture theaters and drive -in motion picture theaters) Securities, Commodity Contracts, and Other Financial Investments and Related Activities; Insurance Carriers and Related Activities; Funds, Trusts, and Other Financial Vehicles 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 Management of Companies and Enterprises Telephone Call Centers Correctional Institutions (B) a job that is included in North American Industry Classification System (NAICS) sector number 928110, National Security, for the corresponding index entries for Armed Forces, Army, Navy, Air Force, Marine Corps, and Military Bases. Approved: May 2, 2017 Page 2 of 7 Project — defined in Chapters 501 and 505 of the Texas Local Government Code. Real and Personal Property Investment Grant — a one time or multiyear incentive given in consideration for an increase in the Total Taxable value and the ventures overall positive economic impacts to the City of Schertz. The Real and Personal Property Investment Grant is awarded by the City of Schertz through a Chapter 380 Incentive Agreement. Sales and Use Tax Grant — a one time or multiyear incentive given in consideration for gross retail sales and use tax that is subject to local collection and the company's overall positive economic impacts to the City of Schertz. The Sales and Use Tax Grant is awarded by the City of Schertz though the Chapter 380 Incentive Agreement. Small Business Grant — a one time or multiyear incentive given in consideration for the creation or retention of Primary Jobs or new Total Taxable Value. A Small Business Grant is proportionally greater than a Performance Grant; however, the overall amount is not as large. A Small Business Grant is awarded by the SEDC through a Performance Agreement. Total Taxable Value — Includes Real Property (land and improvements) and Tangible Personal Property (machinery and equipment, inventory) as found on the official county appraisal district tax roll. Background The City of Schertz, Texas and the SEDC are focused on growing our local economy through the attraction and retention of Primary Jobs and by attracting new capital investment throughout the City of Schertz and within its extraterritorial jurisdiction. Since the City of Schertz' incorporation in 1958, Schertz has grown rapidly utilizing various tools to promote economic development. On August 9, 1997, Schertz residents voted to establish the SEDC and to collect one -half of one percent of sales and use tax to be used for economic development. Over the past 20 years, the City of Schertz and the SEDC have partnered to bring about multiple projects that have benefited the residents of Schertz. The partnership involved leveraging incentive tools such as abatements, rebates, grants and loans to strategically invest in infrastructure for our industrial parks, create loans for emerging industries, and to provide grants for both small and large companies who made significant capital investment within our City and created jobs for our residents. Today, the City of Schertz and the SEDC continue to present a partnered approach towards economic development; however, as we move forward greater focus will be placed on utilizing SEDC resources for economic development incentives to ensure that City resources are utilized for basic city services and quality of life amenities. Through this practice, our community will have greater ability to achieve the Schertz Complete City Model which includes the simultaneous accomplishment of the three key areas: Economic Engine, Core Services and Quality of Life. Programs Under the direction of the City Manager, the Economic Development Department will implement the following initiatives and processes. 1. Assistance Center— Information is critical to making business decisions. The Assistance Center is a collection of resources needed to learn more about the Schertz market, find the best location, start or expand a business, lower operating costs, or connect with area partners. The Assistance Center is a free resource available to new and expanded businesses seeking to pursue a Project within the City of Schertz and its extraterritorial jurisdiction. The information will be available Approved: May 2, 2017 Page 3 of 7 online at www.schertzedc.com or by contacting the Economic Development Department. The Assistance Center consists of the following: a. Site Selection Data — local Schertz information used to make preliminary site decisions. i. Market Information — aerial imagery, demographic reports, consumer spending, labor trends, traffic counts, education attainment, and other datasets to better understand the Schertz market. ii. Available Property Information — Commercial real estate listings. iii. Utility Information — water, wastewater, electricity, natural gas, and telecommunications capacity, availability and rate information. iv. Tax Information — local property and sales tax breakdowns. b. Schertz Development Assistance —development and business codes for constructing and opening a business in Schertz. i. Local Development Codes — reference library to Schertz Unified Development Codes, building and fire codes. ii. Development Guide — general procedural overview for opening a business in Schertz. iii. Predevelopment Meetings — a preliminary meeting and review of development and construction documents by the Engineering, Fire, GIS, Marshal, Parks, Planning & Community Development, and Public Works departments to ensure a quicker permit review timeline. c. Existing Local Tax Exemptions — a list of local tax exemptions that are available to lower business operating costs in Schertz. Freeport Exemption - a property tax exemption by the local jurisdiction on inventory that is detained in Texas less than 175 days. Properties within Schertz are entitled to a triple freeport exemption because of the participation by the City of Schertz, the County and the School District. The following jurisdictions participate in the Freeport Exemption: City of Schertz, Bexar County, Comal County, Guadalupe County, Comal ISD, and SCUC ISD. (Texas Tax Code Chapters 11.,25'1 ii. Manufacturing Exemption — a state and local sales tax exemption on leased or purchased machinery, equipment, replacement parts, and accessories that are used or consumed in the manufacturing, processing, fabricating, or repairing of tangible personal property for ultimate sale. Additionally, Texas businesses are exempt from paying state sales and use tax on labor for constructing new facilities. (Texas Tax Code Chapters 151:.315 iii. Natural Gas & Electricity Exemption — companies that use over 50% of their electricity or natural gas consumption in manufacturing, processing, or fabricating tangible personal property are exempt from paying state and local sales and use tax on electricity and natural gas. (Texas Tax Code Section 151;315; 151.318J5 d. Partner Resources — Alamo area partners that can help create, grow and improve your business. Approved: May 2, 2017 Page 4 of 7 i. Local Chamber of Commerce — Schertz has multiple regional chambers serving our area which help support their members through training and networking opportunities. ii. Regional, State and Federal Programs — list of governmental programs to assist entrepreneurs, small businesses, non - profits, and industry specific organizations develop business plans, access new markets and obtain financing for new product lines. iii. Trade Organizations — created to help that assist businesses and owner's network, advocate and gain industry specific education. 2. SEDC Incentive Policy— On August 9, 1997, Schertz residents voted to establish the City of Schertz Economic Development Corporation and for the collection of one -half of one percent of sales and use tax to be used for eligible economic development Projects. The SEDC was established as a Type B corporation under the Development Corporation Act, as amended (Title 12, Subtitle C1, Texas Local Government Code), and other applicable laws. The SEDC is governed by Chapter 501, 502 and 505 of the Local Government Code which give cities the discretionary ability to finance new and expanded business enterprises. The SEDC can fund all allowable Projects that are authorized for a Type B corporation. The Economic Development Department is responsible for identifying Projects and their economic impacts to the community. The SEDC Board of Directors is responsible for making a finding that a Projects and programs are within the constraints of the law. The City Council is responsible for authorizing all programs and expenditures for the SEDC. The SEDC Board of Directors and City Council will utilize all tools authorized by Chapters 501, 52 and 505 of the Texas Local Government Code to structure performance based incentives. Additionally, the following categories and guidelines will be used to consider individual Projects: a. Company Direct Incentives — in connection with the creation and retention of Primary Jobs, the SEDC will evaluate companies under the following categories: i. Existing Businesses — a business with at least 3 years of operation within the City of Schertz or its extraterritorial jurisdiction may receive a Performance Grant and /or Development Fee Grant to help create or retain Primary jobs in Schertz and to encourage new capital investment. ii. Small Businesses — a business with fewer than 50 full -time jobs or annual sales less than $10 million that seeks to establish or expand operations in Schertz may receive a Small Business Grant. Each year, the SEDC will budget $500 thousand to be used exclusively for Small Business Grants. iii. Large Impact Businesses — a business that seeks to create Primary Jobs and increase the Total Taxable Value in order to maintain and diversify our local economy may receive a Performance Grant. A Performance Grant will be used exclusively for all Projects with a Total Taxable Value of up to $100 million. iv. Extra Large Impact Businesses — for those Projects that exceed a Total Taxable Value over $100 million, the City and SEDC will use a combination of a Performance Grant and /or a Chapter 380 Incentive Agreement to leverage the creation of new Primary Jobs and Total Taxable Value. Approved: May 2, 2017 Page 5 of 7 b. Infrastructure Incentives — Certain infrastructure improvements, such as streets and roads for retail or office developments, may qualify for an Infrastructure Grant if the infrastructure expenditures adheres to state law and are found by the Board of Directors to be necessary to promote or develop new or expanded business enterprises. c. Other Authorized Projects — The SEDC retains its right to utilize any Project authorized for Type B Corporations. All Projects will be subject to the execution of a Performance Agreement. 3. Chapter 380 Incentive Policy— in accordance with Chapter 380.001 of the Texas Local Government Code, the governing body of a municipality may establish and provide for the administration of a program to promote state or local economic development and to stimulate business and commercial activity in the municipality. Chapter 380 Incentive Agreements allow for the provision of loans and grants of city funds, as well as use of City Staff, city facilities or city services, at minimal or no charge. Under the direction of the City Manager, City Staff is responsible for the administration of the Chapter 380 Incentive Policy. City Staff will identify ventures that align with the policy and demonstrate the positive economic impacts that will be created. The SEDC Board of Directors will review Chapter 380 Incentive Agreements and make recommendations to the City Council on the venture's overall ability to positively impact the City's economic conditions. Chapter 380 Incentive Agreements will be approved by resolution at the sole discretion of the City Council by a majority vote. For best practice, Chapter 380 Incentive Agreements should be used in combination with an SEDC Performance Agreement incentive. Additionally, the City of Schertz prefers to continue the practice of utilizing performance based tools such as abatement /rebates over other tools, however, the City Council retains its ability to utilize every tool available. The City Council must find that a Chapter 380 Incentive Agreement meets the following program guidelines: a. Real & Personal Property Investment —Ventures that create a minimum of $100 million in new Total Taxable Value may qualify to receive a Real & Personal Property Investment Grant. b. Gross Sales and Use Tax— Retail ventures that create a minimum of $35 million in annual gross retail sales, that is subject to local sales and use tax collection, may receive a Sales and Use Tax Grant. Incentive Process Incentives are used on a discretionary basis to stimulate economic development and create a positive economic impact for the City of Schertz. Prior to the purchase of property, execution of a lease, or submittal of a permit for an expansion a Company must execute a Performance Agreement or a Chapter 380 Incentive Agreement. Additionally, within 30 days of the execution of Performance Agreement or Chapter 380 Incentive Agreement, the Company will be required to provide documentation of their commitment to proceed. The following is an outline of the incentive process: 1. The Company will contact the Economic Development Department to discuss and review possible incentive programs. The Company will provide basic Project information such as the number of jobs, anticipated capital investment, project timeline, and demonstrate the positive economic impacts of the project. Approved: May 2, 2017 Page 6 of 7 2. The Economic Development Department will complete an impact analysis for the Project and /or venture. 3. As appropriate, The Economic Development Department will meet with the SEDC Board of Directors and /or City Council in executive session to deliberate potential economic development negotiations. 4. The Economic Development Department will submit a preliminary incentive offer to the Company. 5. The Economic Development Department will draft a Performance Agreement and /or Chapter 380 Incentive Agreement with the specified terms. The agreement will be submitted to the Company for execution. 6. The SEDC Board of Directors and /or the City Council will meet in open session to execute the SEDC Performance Agreement and /or Chapter 380 Incentive Agreement. 7. Once the Performance Agreement and /or Chapter 380 Incentive Agreement is in place, the Economic Development Department will monitor the Company's compliance and continued success in Schertz. Open Meetings Act and Public Information Act The City of Schertz and the SEDC are subject to the Texas Open Meetings Act and the Public Information Act. The City and SEDC will to the extent allowed by law, keep all Company information and documentation confidential. In the event that an information request is made, the City and SEDC will make a good faith effort to notify the Company so that an appeal can be made to the Attorney General of Texas to withhold information. (Texas Government Code Chapters 551; 552) Approved: May 2, 2017 Page 7 of 7 MEMORANDUM City Council Meeting: Department: Subject: C• � 1 Agenda No. 3 May 2, 2017 Economic Development Resolution No. 17 -R -31 Authorizing a program and expenditures in connection with the Economic Development Performance Agreement with Evestra, Inc. The City of Schertz Economic Development Corporation (SEDC) has established a Small Business Grant which may be offered to businesses with fewer than 50 full -time jobs or annual sales less than $10 million. The SEDC has allocated $500,000 to be used each year for the retention or attraction of small businesses to the City of Schertz. The SEDC elects to use this program to attract Evestra to the City of Schertz. Evestra, Inc. (Evestra) is an emerging biopharmaceutical research and development company with a therapeutic focus in women's healthcare. Evestra's competitive advantage is based on its founders' extensive experience in pharmaceutical R &D, combined with a proven track record in commercializing women's healthcare products. Evestra launched in 2008 as a spin -off from Texas Biomedical Research Institute, the largest private biomedical research institute in Texas. Evestra seeks to expand and relocate its corporate headquarters, manufacturing operations, and scientific research and development services at an existing facility located at 6410 Tri County Parkway. Evestra seeks a Small Business Grant to offset associated expansion costs. ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT As part of the economic development performance agreement, Evestra must commence operations for its corporate headquarters and manufacturing operations with six employees during the 2017 . calendar year. During the 2018 calendar year, Evestra will increase to 10 employees with an annual payroll of $775,000. During the 2019 calendar year, and throughout the remainder of the agreement, Evestra will expand its operations by adding six employees and their scientific research and development services operations. In total, Evestra will maintain 16 employees with an annual payroll of 1,225,000. Lastly, commencing in the 2018 calendar year, Evestra must maintain $2,684,513 in cumulative Real and Personal Property which is $1,900,000 increase in taxable value. In consideration, Evestra will receive a $200,000 Small Business Grant upon receipt of the certificate of occupancy and commencement of operations in Schertz. Evestra must maintain its compliance to the agreement until 2022. if Evestra defaults on the agreement, they will repay the Small Business Grant plus interest. FISCAL IMPACT The $200,000 Small Business Grant will be paid from the SEDC Small Business Grant fund which has an annual balance of $500,000. The Small Business Grant will be paid to Evestra once they have met the requirements outlined in the agreement. STAFF RECOMMENDATION Staff recommends that the City Council authorize the program and expenditures as listed in the Agreement. The SEDC Board of Directors will meet to consider, discuss, and act on the project in connection with the Joint City Council meeting on May 2, 2017. . ATTACHMENT(S) Resolution No. 17 -R -31 Economic Development Performance Agreement (Evestra) RESOLUTION NO. 17 -R -31 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A PROGRAM AND EXPENDITURES AS PROVIDED FOR IN THE ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT BETWEEN THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION AND EVESTRA, INCORPORATED; AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the Development Corporation Act of 1979, as amended (Section 501.001 Texas Local Government Code, formerly the Development Corporation Act of 1979) (the "Act ") authorizes a development corporation to fund certain projects as defined by the Act and requires development corporations to enter into performance agreements to establish and provide for the direct incentive or make an expenditures on behalf of a business enterprise under a project; and WHEREAS, Section 501.1.58 of the Act requires an incentive agreement to provide at a minimum for a schedule of additional payroll or jobs to be created or retained and capital investment to be made as consideration for any direct incentives provided or expenditures made by the corporation under the agreement and to specify the terms under which repayment must be made if the business enterprise does not meet the performance requirements specified in the agreement; and WHEREAS, Section 505.1.59 of the Act requires that a corporation hold at ]east one public hearing on the proposed project before spending money to undertake the project, the public hearing was held on May 2, 2017; and WHEREAS, the City of Schertz Economic Development Corporation ( "SEDC ") Board approved the Economic Development Incentive Agreement Evestra, Inc.. set forth on Exhibit A attached hereto and incorporated herein (the "Agreement ") between the SEDC, and Evestra, Inc. (the "Company "), pursuant to the Act, at the SEDC's Board meeting on May 2, 2017; . and WHEREAS, Section 501.073 of the Act requires that the corporation's authorizing unit to approve all programs and expenditures of a corporation; and WHEREAS, the SEDC has recommended that the City authorize the program and expenditures associated therewith; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: Section 1. The City Council hereby authorizes the program and expenditures as provided for in the Economic Development Incentive Agreement with Evestra, Inc. as set forth in Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 2ND day of May, 2017. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) EXHIBIT A ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT EVESTRA. INC. AWME !NkSUx INC. WHEREAS, the Parties recognize that all agreements of the Patties hereto and all terms and provisions hereof are subject to the laws of the State of Texas and all rules, regulations and interpretations of any agency or subdivision thereof at any time governing the subject matters hereof; and No ". loom flMMMMIMIN I accordance with Texas law; and WHEREAS, on the Effective Date, the commitments contained in this Agreement shall become legally binding obligations of the Parties. I M No V IVEI-11 I . Recitals. The recitals set orth above are declared true and correct by the Parties and are hereby incorporated as part of this Agreement. M = "UNIEUMMA "MIMPINUF IM that Company is acting in reliance upon the Corporation's performance of its obligations under this Agreement in making the decision to commit substantial resources and money to the establishment of the Project, hereinafter established. 2. lerm. This Agreement shall become enforceable upon the Effective Date, hereinafter established, and shall continue until the Expiration D , . tIr 11 . PAILU111-11--i terminated sooner or extended by mutual agreement of the Parties in the manner provided for herein. 2 4. Adminimi2na af-Amemo. Upon the Effective Date, the Corporation delegates Any proposed atneb(ftlftentS to tile Agreement snail require tne approval ot the -;oard ot,Wirectors of the Corporation. As used in this Agreement, the following terms shall have the meanings ascribed below. All undefined terms shall retain their usual and customary meaning as ascribed by common and ordinary usage. "Annual Payroll" shall mean the total wages paid, exclusive of employee benefits, to Full- time Employees at the Facility. "Expiration Date" shall mean the earlier of- "Force Majeure" shall mean any contingency or cause beyond the reasonable control of a party, including, without limitation, acts of God or the public enemy, war riot, civil commotion, insurrection, government or de facto governmental action (unless caused by the intentionally wrongful acts or omissions of a party), fires, explosions or floods, strikes, slowdowns or work stoppages. "Full-time Employee" shall mean: (1) an employee with a regular work schedule of at least 36 hours per week as reported on the Texas Employers Quarterly Wage Report from the Texas Workforce Commission and (2) are entitled to at least the customary employer-sponsored em-wi'lo-wee benefits:, ackall e afforded b ni I-w situated emAlow,� oth,.4,r the Comfian-i to its similar—, locations. "Real Property" shall mean the land, building and all improvements thereto and added to Guadalupe County Appraisal District. "Scientific Research and Development Services" shall mean an establishment engaged in conducting original investigation, undertaken on a systematic basis to gain new knowledge *,jcf&ch), and irethic of new or significantly improved products or processes. "Small Business Grant" shall mean cash payment from Corporation to Company in the amount of TWO HUNDRED THOUSAND DOLLARS and NO/100 ($200;000.00). M20, 111!1 111 Jill 1 11111 SMILE'! "Tangible Personal Property" shall mean tangible personal property, equipment, machinery, fixtures and inventory owned or leased by Company that is added to the Project subsequent to the execution of this Agreement and is accounted on the tax rolls by the County Appraisal District. ARIMM ZEN V LIN Y ► I I • 4 obligations hereunder be deemed to create any debt within the meaning of otalstitu ov.-Aailr stitut S—r-lauviallic. _11WA3t Wjj similar financial institution. 2. Confidentigh . The Corporation agrees to the extent allowed by law, to keep all tax information and documentation received, pursuant to this Agreement hereof, confidential. In the event a request is made for such information, Corporation will not disclose the information unless required to do so ♦ the Attorney General of Texas. ARTICLE V The obligation of the Corporation to pay funds in the form of a Small Business Grant shall be conditioned upon Company's continued compliance with and satisfaction of each of the performance obligations set forth in this Agreement. Im 031MILI I 11 111 my-W4111timal fillatill . I (c) SIXTEEN (16) Full-time Employees with a minimum Annual Payroll of ONE MILLION TWO l"DRED TWENTY-FIVE THOUSAND DOLLARS AND NO/ 100 ($1,225,000.00) on or before the beginning and throughout the entirety of the 2019 Calendar Year. (d) SIXTEEN (16) Full-time Employees with a minimum Annual Payroll of ONE MILLION TWO HUNDRED i DOLLARS i ($1,225,000. 1 or • throughout the entirety of the 2020 Calendar (e) SIXTEEN (16) Full-time Employees with a minimum Annual Payroll of ONE MILLION TWO HUNDRED TWENTY-FIVE THOUSAND DOLLARS AND • ($1,215,000.00) w the 202 1 Calendar (f) SIXTEEN (16) Full-time Employees with a minimum Annual Payroll of ONE MILLION TWO HUNDRED TWENTY-FIVE THOUSAND DOLLARS AND t ($1,225,000.00) the 2022 Calendar 5. Real w TqngLble Pers2nal PlOpM ! • e r � 2 G� (k) Company shall be not be in arrears and shall be current in the payment of all City taxes and fees. (m) Company shall, upon written request from Corporation, provide to Corporation a copy of the Texas Workforce Commission Texas Employers Quarterly Wage Report for the requested quarter. 2. Comoration's Covenants and Duties. 3. Comoliance and Default. Failure by Company to timely comply with any performance requirement, duty, or covenant shall be considered an act of Default and shall give the Corporation the right to terminate this Agreement and collect the Recapture Amount, as determined by the Board of Directors of the Corporation. ARTICLE VII TERMINATION I . Termination. This Agreement shall terminate upon the earliest occurrence of any one or more of the following: 1, Company's sole remedy under this Agreement is specific performance for Corporations Default of its obligation under Section IV of this Agreement. 0 ARTICLE IX MISCELLANEOUS e (a) It is expressly understood and agreed by all Parties hereto that in performing their services hereunder, Company at no time will be acting as an agent of the Corporation and that all consultants or t by Company respectively independent If intended for SEDC: City of Schertz Economic Development Corporation Attention: Exec. Dir. of Economic Development 1400 Schertz Parkway Schertz, TX 78154 ee Denton, Navarro, e. d Bemal, P. Attention: 2517 North Main Avenue San Charles Antonio, f If to the Coma an : Evestra, Inc. Attention: Ze'ev Shaked, Ph.D. President, CEO and Director 6410 Tri County Parkway Schertz, Texas 78154 H 1 i. Indemnification. I1 t 19. F2rce Ma*MM. Whenever a period of time is herein prescribed for action to be Company, taken by the Company shall not be liable or responsible for, and there shall be excluded from the cornywation of ami such i eriod of i whatsoever which are caused by Force s 12 Executed on this *;p day of , 20 /° Executed on this i CITY OF " ECONOMIC DEVELOPMENT COR° M APPROVED AS To FORM: , S EDC Attorney Notary Public, State of Texas Notary's typed or printed name My commission expires msm�� m Reporting Period: January I to December 31, 20_j Economic Development Corporation and Evestra, Inc., is due on February 15, 20—. Please sign and return the Annual Certification Report form with accompanying narrative, I NO Investment Information: What taxable ad valorem value for Real Property for the reporting period? What is the taxable ad valorem value for Tangible Personal Property for the reporting period? Narrative: Please attach a brief narrative explaining the current year's activities and/or comments relating to any potential defaults, [a Name • Certifying Officer Certifying Officer's Title fflpmv�, Signature of Certifying Officer DaLl STATE OF TEXAS X COUNTY OF X This information was acknowledged before me on this day of by — for Evestra, Inc., a Texas corporation, on behalf of said agency. 11,11110iM,111M Iw� M��= The Annual Certification Report is to be completed, signed and returned on or before February 15, 20—. Please send an original to the following address: Attention- Executive Director 140o Sttiertz Ipaekwq� Bldg. Sthertz, TX 78154 M Agenda No. 1 CITY COUNCIL MEMORANDUM City Council Meeting: May 2, 2017 Department: Subject: City Secretary Minutes The City Council held a Regular Meeting on April 25, 2017. . RM RECOMMENDATION Staff recommends Council approve the minutes of the Regular meeting on April 25, 2017. ATTACHMENTS Regular Meeting of April 25, 2017 . minutes. MINUTES REGULAR MEETING April 25, 2017 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on April 25, 2017, 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 Pro -Tem Cedric Edwards Councilmember Mark Davis Councilmember Scott Larson Councilmember Robin Thomp� Councilmember Angelina Kiser Councilmember Bert Crawford Staff Present: City Manages John Kel Executive Director Brian James Executive Director Dudley W& City Attorney Charles Zech Assistant to City Manager Sara City Secretary Brenda Dennis Mayor Carpenter and Councilmember Gutierrez were abs ntt, to Order — Mayor Pro -Tem Edwards called the meeting to order at 6:00 p.m. t Gonzalez opening prayer followed by the pledges of allegiance to the of Texas. a reminder, if there are any students present who wish to sign up ,sign -up sheet is on the table out in the foyer. Check Presentation to CTRC, and Award Presentations. (S. pence) Mayor Pro -Tem Edwards recognized Public Affairs Director Linda Klepper, Events Manager Mary Spence, and Events Specialist Natalie Keaney. Ms. Spence stated that once again she would like to thank the main sponsor of the event "HEB' ; she stated that they cover the costs so that all the proceeds raised goes to CTRC. Ms. Spence thanked the following volunteers who assisted with the Wilenchik Walk for Life event: City Staff, Boy Scout Troop 51, the National Honor Society of Samuel Clemens, Nathan Whyte, Miss Schertz, Sydney Fischer and Kali Haetner, Schertz Family Y. Ms. Spence announced the following 5K Winners: 4 -25 -2017 Minutes Page - 1 - • Men I" Place —Daniel Oakes, 2nd Place — Keith Click, 3rd Place Pascal Aldinger Ladies I" Place — Alexandria Pascal, 2nd Place Pearl Gardner, 3rd Place Sarah Gonzalez Medals were presented to each individual. Ms. Spence announced the `Best - Shirt" design winner: Team Gonzales, Ms. Spence presented them with a trophy. Ms. Spence introduced Ms. Mary Burch, UT Health San Antonio.nd Vicki Shapiro, Cancer Survivor and who leads the Sarcoma Support Group and had them come forward for the check presentation. Ms Spence presented a check in the amount of $9,1,16.32 which was raised this year and stated that the total to date donated was $169,878.2 1. Mi., Burch thanked the City of Schertz and the donation stating that the money is used f6r�research­ft r cancer. Mayor Pro -Tem Edwards asked Ms. Spence if this infon found on our website. Ms. Spence stated that here is a those will be posted. Mayor Pro -Tem Edwards and Council thanked all thosc,that • Emergency Re Mayor Pro -Tem EdA, world today, we all situations we may be entation. (D. Wait /M. n and photos of the event can be on our Visit Schertzcom where made the event successful. 15, from St. Thomas Church .ship in the Community merit ;d. Mayor Pro -Tem Edwards Bane) recognized Assistant Police Chief Marc Bane who stated in the 4',101'eiar, understanding how important it is to be prepared with with whethcr its weather incidents, fire, or intruders; having a plan . beeps us safe in our community. This preparedness also applies to 'Police Department has been working with the Schertz- Cibolo- Schooll0istrict on a standard response protocol. It will allow staff ty to respond to any given situation that they may face. This rgeant Mixon and Corporal Halbardier with our School Resource ig a standard response protocol that is now been adopted by the In true fashion, Sergeant Mixon and Corporal Halbardier went above and beyond in their work creating campus specific videos and literature that is based on age group at each campus. You can't show a high school video to students in first and second grade, so videos were prepared and made for each age specific groups. During the process of making one particular video, Corporal Halbardier worked with Principal Allison Miller with Paschal Elementary producing a video specifically for elementary students. Most recently, we learned that this video will be used nationwide, as no one else has made such a video. 4 -25 -2017 Minutes Page - 2 - Assistant Police Chief Bane introduced Sergeant Mixon who came forward explaining the School Resource Program (SRP), providing detailed information. He stated in 2011 the Schertz Police Department joined with the Schertz Cibolo Universal City Independent School District and created the School Resource Program. The main objective was to provide a safe and secure learning environment for students and staff. A large portion of this objective was to develop or enhance the way that campuses and first responders respond to emergencies. Over the years, we have learned that campuses themselves, are very good at responding to their individual emergencies. It is clear to us that the campuses employees, from the principals to maintenanef, 'staff, teachers to office aids, food service and transportation workers, all have the student's Best, interests at heart. We have little doubt that all of them would put themselves in harm's'way to protect even one student. While each individual campus has good pro emergencies, the one thing that was missing phrases like: • Hard lockdown • Soft lockdown • Secure an area • Code red • Evacuation Reverse evacuation Using these type of not understand wh what to do, others c at a different camp trained on that narti a wide range of hools often use ;t and foremost, most first responders will hough the campus personell understands for school district employees that may be bstitute teacher who may not have been filling in for someone else. g that the Schertz Police Department has tried to address. Enforcement Conferences and with the cooperation the researched the Standard Response Protocol from the The ILov Uguys Foundation is a non - profit foundation that was developed out of tragedy. On September 27th, 2006, a gunman entered Platte Canyon High School not far from Columbine High school in Colorado and held seven girl's hostage in an AP English classroom. The only communication one student hostage, Emily Keyes, had with her parents was by text messaging. As the event unfolded, all but one student, Emily, was released. Not long after that, the gunman made a statement that it was all about to end and the Police had to make an attempt to rescue Emily. During the attempt, the gunman shot and killed Emily and he in turn was killed by the :Police. The last communication Emily had with her father was a short text message that read, "I Love you guys ". 4 -25 -2017 Minutes Page - 3 - After that tragedy, Emily's father John Michael Keyes established the ILoveUguys Foundation with the sole purpose of improving school safety. During his research, he found the same issues existed with the lack of standard terminology. From Emily's tragedy, the ILoveUguys Foundation introduced the Standard Response Protocol. The Standard Response Protocol is based on 4 actions, Lockout- Lockdown- Evacuate - Shelter. Each action is accompanied by a simple response that is spoken in plain English and easily understood by everyone. The protocol is simplistic in its design but offers a wider range of options along with specific instructions on how to respond to,, different emergencies. At this point, the entire SCUCISD will be adopting the S have set a deadline for it to be completely in place by a member will be trained on its use and the procedures campus will have the same standard protocol, and iri drn. appropriate response. As of now, every member of the I the EMS and Fire Departments are soon to follow. The division made the decision that the best way to train tI videos outlining the program. Each video that was produce campus within the City. We specifically made a series of first being that we want to show the community that we ha and students and the second being that we fo` nd that stud( information if they can relate it to their iudividual oarnpus. rd Response Protocol and they ;ust' of: this year. Every facility follow. This means that every First Responders will know the cc Department has been trained; students was to make a series of was tailor made to every specific i campus videos for two reasons; t a vested interest in our children . is are more likely to retain more My partner, Corporal Halhardier, is going to show you cane specific video that she produced. Sergeant Mixon introduced Corporal Halbardier who played one of the elementary standard response videb's,that was produced. Sergeant Mixon and Corporal Halbardier introduced the voice of "Officer btue" who appeared in the video, Rachael. Sergeant Mixiin stated 'something to not ,- in the video section where you were told "this message was brought to you by the Schertz Police Department" was from this beautiful little ladv here. [guys's Standard Response Protocol is quickly becoming the standard in school everal other districts in our metrocom and surrounding areas are looking to adopt the same This had been a very long project and the logistics have been a challenge. Creating all the videos has been months of work to include producing, filming and editing. The best news for us came at the beginning of this month. As Corporal Halbardier mentioned, the foundation did not have many resources to train elementary school age children. With the permission of the district, we submitted 2 videos —to include the one we just watched- to the ILoveUguys Foundation. Within a day, I received a telephone call from CEO John Michael Keyes. He expressed so much gratitude for the work Corporal Halbardier had done it was hard for him to put it in words. I asked him if he would like copies of the videos produced by the Department and he graciously accepted them. The videos produced by Corporal Halbardier will be used nationwide to train others. 4 -25 -2017 Minutes Page - 4 - The videos produced by Halbardier will be used nationwide to train everyone in the I Love You Guys Foundation. Corporal Halbardier received a standing ovation. In closing, Sergeant Mixon stated that this year the Police Department and the School District have made more headway than they had in a very long time. Sergeant Mixon recognized Ms. Amy Sirizzotti, who is the EPAC Chair with the SCUCISD and has also been a driving force partnering with us to get this program into place. All of us involved have no doubt that this program can better protect our children and save lives. We will continue to work with the ILoveUguys Foundation and already have plans for future productions. Mayor Pro -Tem Edwards stated that when you see these types of r9jects coming from the Police Department in a town of 38,300- 40,000 people, and it's going nationwide, that speaks volumes about the level of commitment and the level of leadership that you are receiving. Don't take it for granted, we see you are out in the community, we love what you"are doing, and please leave no stone unturned. You have done a great jab! Mayor Pro -Tem Edwards recognized Councilmember 'I`hompson who stated it is wonderful having been a former substitute teacher, and seeing the heed, especially because when you walk onto a campus you do not kntiw what is going on arid, being able to provide this to a substitute teacher to say this is what the prot1 is, is helpful and great work. Mayor Pro -Tem Edwards recognized Co it takes to produce a video: he also stated • Announcements of tuber Larson who stated he knows how long s was Qreat work. ames /D. Wait /S. Gonzalez) Pro -Tern Edwards recognized Executive Director Brian James who provided the Tuesday, May 2 City Council Meeting Council Chambers 6:00 p.m. Wednesday, May 3 Blood Drive 8:00 am — noon Parking lot of Community Center. For more information, contact Kellie Burnam X 1430 4 -25 -2017 Minutes Page - 5 - Thursday, May 4 Sweetheart Coronation 6:00 p.m. Civic Center Saturday, May 6 Community Clean -up Day 8:00 a.m. - 4:00 p.m. Heritage / Historical Neighborhood. For more information, contact Jesse Hamilton X 1671 Music in the Park 1:00 p.m. — 4:00 p.m. Pickrell Park — Soulful Flow Jazz Band Tuesday, May 9 Heritage Oaks Park Dedication 5:15 p.m. Parks Department would like to announce the 11700 Long Leaf Parkway City Council Meeting 6:00 p.m. Council Chambers Thursday, May 11. Olympia Hills Golf and Conference Tuesday, May 16 Monday, May 22 141h Annual Hog Wild — hosted by Denton Navarro Rocha Bernal Hyde & Zech 7:30 a.m. — 6:00 p.m., Texas State University Student Center, 301 Student Center Drive Wednesday, May 24 CVLGC Joint Budget Workshop Schertz Civic Center Bluebonnet Hall 6:30 p.m. 4 -25 -2017 Minutes Page - 6 - Monday, May 29 City Offices Closed in Observance of Memorial Day Friday, June 30 TML Legislative Wrap -up 7:45a — 2:30 p.m. Contact Brenda or Donna to register — Event held at the Double Tree by Hilton Austin. • Announcements and recognitions by City Manager (J. Kessel) Mayor Pro -Tem Edwards recognized City Manager John essel who recognized the Purchasing & Asset Management Department who provides,aaining for our staff. An example we had recently was a Safety and Risk Management cla' for - supervisors. Risk and Safety Specialist Nancy Tumlinson spearheaded this effort and she also mad &'sure that this was made available to other cities, such as Live Oak and Cibolt and perhaps others: attended this as well. This is some great training and he wanted Council to 'know that the City provides those training opportunities. Hearing of Residents Discussion by the Council:f 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 /Qr, proposal to place the item bh a future agenda. The presiding officer, during the Hearing of esidentr tion of the agenda, will call on those persons who have signed up to speak in the order thev have rezistrd Mayor Pra =Te ni Edwards recognized the following who spoke: • Ms. Maggie Titterington, The Chamber President who provided information on their upcoming events. She also spoke about and thanked the City for considering a Small Business Inc ntive .Program and explained how beneficial it would be to small businesses ..:............... and their owners in Schertz. • Mr. Mark Moody, 2901 Bent Tree Drive, also a small business owner, who spoke on the need of a Small. Business Incentive Program and the benefits. • Ms. Hengameh Stanfield, small business owner, who spoke on the benefits and needs of a Small Business Incentive Program. • Ms. Tanya Sammis, small business owner, who also spoke on the benefits /incentives and needs of a Small Business Incentive Program. 4 -25 -2017 Minutes Page - 7 - Mayor Pro -Tem Edwards thanked those that spoke and stated that when he owned their store he knew exactly what the business owners are going through. Nothing ever will trump your persistence in what you are trying to accomplish with your family and your life. Persistence, persistence, persistence! We have heard you and he promises as long as he is on the dais, we will work toward that goal of getting some type of small business incentive program incubated into the City. Some things will have to be done by some incubation from maybe another source, but we will work as hard as we can on your behalf. He thanked them for being here. Consent Agenda Items The Consent Agenda is considered self - explanatory and will be motion. There will be no separate discussion of these items unless Agenda upon the request of the Mayor or a Councilmember. 1. Minutes — Approval of the minutes of the meeting of April 1.8, 2017. . (J. Kessel /B. I 2. Ordinance No. 17 -D -14 — Approval of an ( prohibited 2541 in front of drainage inlet on Camei Final Reading (B. James /K. Woodlee /C. Palomo) The following was read into record: 11 33 kill 13 ILI by the Council with one emoved from the Consent of April 11, 2,11'7 and the Special amending Chapter 86, parking in the Fairway Ridge Subdivision. The following -*as, read into record: ORDINANCE NO. 17 -5 -12 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING THE OFFICIAL ZONING MAP BY REZONING APPROXIMATELY 4 ACRES OF LAND FROM GENERAL BUSINESS, (GB) TO PLANNED DEVELOPMENT DISTRICT (PDD). 4 -25 -2017 Minutes Page - 8 - 4. Boards, Commissions and Committee Member Appointments — Appointment of Mr. Robert Sheridan as an alternate member to the Parks & Recreation Advisory Board. (B. Dennis /Mayor /Council) Mayor Pro -Tem Edwards recognized Councilmember Thompson who moved, seconded by Councilmember Kiser to approve consent agenda items 1 -4. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Davis, Larson, Thompson, Kiser and Crawford voting for and no one voting no. Councilmember Gutierrez was absent. Motion passed. Discussion Items 5. Establishing a Committee of the City Council to study and make recommendations to the full. City Council with regards to improvements or other changes or policies that affect or might affect Main Street. (Mayor Carpenter /Mayor Pro -Tem Edwards) COUNCIL RVLE 17 -CR -01 Council discussed waiting until the next council meeting to double check with Couricili'nember Gutierrez to ensure he is fine with withdrawing his original offer to serve on this committee and allow Councilmember Larson to serve in his stead. Mayor Pro -Tem Edwards stated he feelsahis committee should start meeting post haste. Executive Director Brian James stated once the councilmembers are ready to go staff will start scheduling those meetings on a regular basis. If the members have things they want researched or polled, they need to let him know so they can get that information together so their first meeting is more productive. Councilmember Larson also stated that he had no problem with council moving forward assigning Councilmember Gutierrez as one of the members; that way action could be taken on this item tonight. 4 -25 -2017 Minutes Page - 9 - Mayor Pro -Tem Edwards recognized Councilmember Thompson who moved, seconded by Councilmember Kiser to approve establishing a Committee of the City Council to study and make recommendations to the full City Council with regards to improvements or other changes or policies that affect or might affect Main Street and Council Rule 17- CR -01. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Davis, Larson, Thompson, Kiser and Crawford voting for and no one voting no. Councilmember Gutierrez was absent. Motion passed. Roll Call Vote Confirmation Mayor Pro -Tem Edwards recognized City Secretary Brenda for agenda items 1 -5. Mayor Pro -Tem Edwards announced that tomorrow was you see him tomorrow, wish him a `Happy Birthday!' Requests and Announcements 6 7 Announcements by City Manager. No announcements were made. Mayor dead enc ig. Mr. K d retreat. the roll call votes 's birthday, so if This is an opportunity for City Council tu,ie genda.: No discussion of the merits of Council Member oppose placement of the ,ithout allowing discussion, shall ask for the to place or not place the item on a future l Councilmember Crawford who asked for an item on the ;cussing the traffic light/stop sign where Old Wiederstein Road — we need something in order to help get the traffic cation, this was the same subject that was discussed at the Mayor Prd -Tem Edwards recognized Councilmember Larson who requested either a workshop or "discussioni regarding the city's pension plan, its current assets, liabilities and its current standiri ; :and if possible, projections of what that might look like in the short term and long -term future,,, 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 4 -25 -2017 Minutes Page -10 - Mayor Pro -Tem Edwards recognized Councilmember Thompson who thanked city staff for the information he was supplied regarding his request from last week on the city water fountains repairs or replacements. Mayor Pro -Tem Edwards recognized Councilmember Kiser who thanked the Police Department and the Fire Department. She was able to go out and do the repelling and zip lining with the Fire Department and headed out to the shooting range with the :Police Department. She believes next up is `explosives'. Mayor Pro -Tem Edwards stated he was able to meet last w0ek with representatives of MPO and Mayor Dunn of Cibolo — they are working together trying to rectify the situation with the Cibolo Toll Road Project. They have postponed it until next month'nd asked for information to be pulled for reconsideration. 9. Information available in City Council Packets ­NO DISCUSSION TO OCCUR • Schertz Economic Development Corporation Q. K ssel/K. Kinateder) 2016 . Tax Year reimbursement per the Development Agreement with Amazon.com.kydc, LLC. Executive Session Mayor Pro -Tem Edwards recessed the regular meeting jnto executive session at 6:55 p.m. • Project E -028 Mayor Pro -Tem Edwards reconvened the regular meeting at 7:21 p.m. 10a. Take any action based on discussions held in closed session under Agenda Item 10. No action was taken. 4 -25 -2017 Minutes page - 11 - Mayor Pro -Tem Edwards recognized Councilmember Thompson who commended Boy Scout Troop 515 for staying at the council meeting, even through the Executive Session. A lot of citizens from the city will not, so congratulations to the Boy Scouts! Adjournment Mayor Pro -Tem Edwards adjourned the meeting at 7:23 p.m. Mayor Pro -Tem ATTEST: Brenda Dennis, City Secretary 4 -25 -2017 Minutes Page -12 - Agenda No. 2 CITY COUNCIL MEMORANDUM City Council Meeting: May 2, 2017 Department: Mayor /Council Subject: Excused Council Absences — Consideration and/or action excusing City Council Member absences 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: 4 -25 -201.7 Regular Council Meeting 4 -25 -2017 Regular Council Meeting FISCAL IMPACT None RECOMMENDATION Mayor Michael Carpenter Councilmember Ralph Gutierrez Staff recommends Council approve the absences as listed above. Agenda No. 3 CITY COUNCIL MEMORANDUM City Council Meeting: May 2, 2017 Department: City Council Subject: Ratification of the appointment of members to the Main Street Committee and appointment of Councilmember Larson BACKGROUND At the City Council meeting of April 25, 2017, discussion occurred regarding the appointment of members to the committee. At that meeting Councilmember Larson stated that he had no problem with council moving forward assigning Councilmember Gutierrez as one of the members; since that time, Councilmember Gutierrez indicated at the retreat meeting that he did concede to Councilmember Larson to be placed on the committee. The purpose of this memo is to ratify the appointments of Mayor Carpenter, Mayor Pro -Tem Edwards and Councilmember Mark Davis and to appoint Councilmember Scott Larson to the Main Street Committee. FISCAL IMPACT None RECOMMENDATION Staff recommends Council ratify the appointments of Mayor Michael Carpenter, Mayor Pro -Tem Cedric Edwards, Councilmember Mark Davis and appoint Councilmember Scott Larson.