05-23-2017 Agenda with backupMEETING AGENDA
City Council
REGULAR SESSION CITY COUNCIL
May 23, 2017
HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS
1400 SCHERTZ PARKWAY BUILDING #4
SCHERTZ, TEXAS 78154
City of Schertz Core Values
Do the right thing
Do the best you can
Treat others the way you would want to be treats
Work together cooperatively as a tea
Call to order — Regular Session
Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of
Texas. (Councilmember Crawford)
City Events and Announcements
• Announcements of upcoming City Events (B. James /D. Wait /S. Gonzalez)
• Announcements and recognitions by City Manager (J. Kessel)
Presentations:
A. Resolution No. 17 -R -32 — Consideration and/or action approving a Resolution by the
City Council of the City of Schertz, Texas approving the 2017 Recipient of the Hal
Baldwin Scholarship. (J..Kessel /S. Gonzalez)
B. Introduction of the FY201.7 -18 Sweetheart Court Ambassadors. (S. Gonzalez /L.
Klepper /E. Matlock)
- Miss Schertz — Corinne Mittelstadt
- Miss Jubilee — Karla Sanchez
- Miss Friendly City — Ashly Poerner
- Miss Sunshine — Trinity Monteverdi
C. Presentation by the University of Incarnate Word MBA Students regarding the
Capstone Project on Schertz Municipal Solid Waste Program. (D. Wait)
D. Presentation of the " Schertz City Council — Half Century of Service, Looking Back"
publication, by the Schertz Historical Preservation Committee. (B. James /D. Weirtz)
05 -23 -17 Council Agenda
E. Presentation by DXE Medical — AED Donation to BVYA (D. Wait /J. Mabbitt /K.
Burnam)
F. Presentation by the EMS Department regarding Cardiac Arrest Survivors. (D. Wait/J.
Mabbit)
Proclamations:
• Proclamation recognizing National EMS Week. (Mayor Carpenter /J. Mabbitt)
Hearing of Residents
This time is set aside for any person who wishes to address the City Council. Each person should
fill out the speaker's register prior to the meeting. Presentations should be limited to no more
than 3 minutes.
All remarks shall be addressed to the Council as a body, and not to any individual member
thereof. Any person making personal, impertinent, or slanderous remarks while addressing
the Council may be requested to leave the meeting.
Discussion by the Council of any item not on the agenda shall be limited to statements of specific
factual information given in response to any inquiry, a recitation of existing policy in response to
an inquiry, and /or a proposal to place the item on a future agenda. The presiding officer, during
the Hearing of `Residents portion of `the agenda, will call on those persons who have signed up to
speak in the order they have registered.
Workshop Items
• Update and Discussion on Jubilee and SchertzQue Events. (S. Gonzalez /L. Klepper)
• Update regarding the Schertz Facilities Master Plan (B. James) (Item requested by
Councilmember Davis)
Discussion Items
1. Minutes — Approval of the minutes of the Regular Meeting of May 9, 2017 and the
Special Meeting of May 16, 2017. (J..Kessel /B. Dennis)
2. Application for Landmark or Heritage Neighborhood Property Designation —
Consideration and /or action approving a Landmark Property Designation for 7720
Trainer Hale :Road. (B. James /D. Weirtz)
3. Application for Landmark or Heritage Neighborhood Property Designation —
Consideration and /or action approving a Landmark Property Designation for 207 First
Street. (B. James /D. Weirtz)
4. Ordinance No. 17 -B -16 - Consideration And Approval Of An Ordinance Authorizing
The Issuance Of "City Of Schertz, Texas Combination Tax And Limited Pledge Revenue
05 -23 -2017 City Council Agenda Page - 2 -
Certificates Of Obligation, Series 2017"; 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 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. First and Final Reading (J. Kessel /J. Walters /J. Kuhn/M. McLiney)
5. Ordinance No. 17 -13-17 - Consideration And Approval Of An Ordinance Authorizing
The Issuance Of "City Of Schertz, Texas General Obligation Bonds, Series 2017";
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; And Providing For An Effective Date. First and Final Reading (J.
Kessel /J. Walters /J. Kuhn/M. McLiney)
6. Resolution No. 17 -R -28 — Consideration and /or action approving a Resolution
authorizing the City Manager to enter into an Agreement with Schertz 1518 LTD to
purchase approximately 5.3 acres of land for the construction of a Fire Station. (D. Wait)
7. Resolution No. 17 -R -33 — Consideration and /or action approving a Resolution
authorizing the City Manager to enter into an agreement with Ford Engineering, Inc., for
design, bid, and construction of Phase Engineering Services for the FM 1103 Water and
Wastewater Facilities Relocation Project. (B. James /K. Woodlee)
8. Ordinance No. 17 -T -18 — Consideration and /or action approving an Ordinance by the
City Council of the City of Schertz authorizing a budget amendment to fund the 42nd
Annual Fourth of July Jubilee Event. First Reading (S. Gonzalez /L. Klepper /M. Spence)
Roll Call Vote Confirmation
Requests and Announcements
9. Announcements by City Manager.
10. 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.
05 -23 -2017 City Council Agenda Page - 3 -
11. 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
1.2. 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 Secretary.
Reconvene into Regular Session
1.2a. Take any action based on discussions held in closed session under Agenda Item 1.2.
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
THE OFFICIAL BULLETIN BOARDS ON THIS THE 19th DAY OF APRIL 2017 AT 4:45 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,revu, lP veww'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
05 -23 -2017 City Council Agenda Page - 4 -
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 Davis— Place I
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 -23 -2017 City Council Agenda Page - 5 -
Agenda No. A
CITY COUNCIL MEMORANDUM
City Council Meeting: May 23, 2017
Department: City Manager
Subject: Resolution No. 17 -R -32 - Hal Baldwin
Scholarship
BACKGROUND
By Resolution No. 09 -R -03 in 2009, the City Council established the Hal Baldwin Scholarship
and on February 7, 2017 . the City Council appointed an Advisory Committee to assist the City
Council with the Scholarship process for 2017. At the City Council meeting on May 9, 2017, the
Advisory Committee presented their recommendation of the 2017 recipient for the Scholarship:
Grace Harper - $5,000
FISCAL IMPACT
$5,000 to come from Hal Baldwin Scholarship Fund
RECOMMENDATION
Adoption of Resolution 17 -R -32
ATTACHMENT
Resolution 17 -R -32
RESOLUTION NO. 17-R-32
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
APPROVING THE 2017 RECIPIENT OF THE HAL BALDWIN SCHOLARSHIP, AND
RESOLVING OTHER MATTERS IN CONNECTION THEREWITH
WHEREAS, on February 10, 2009, the City Council of the City of Schertz, Texas created the Hal Baldwin
Scholarship to honor Mayor Hal Baldwin for his many years of public service to the City of Schertz by awarding
deserving graduating high school seniors who live in the City of Schertz who desire to pursue a career in public
service; and
WHEREAS, the City Council appointed an Advisory Committee to assist the City Council with the
scholarship process by recommending potential scholarship winners to the City Council; and
WHEREAS, the Advisory Committee has recommended that Grace Harper receive the Hal Baldwin
Scholarship for 2017.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS:
Section 1. The City Council hereby awards the 2017 Hal Baldwin Scholarship in the amount of
$5,000 to Grace Harper.
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 ordained 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, as amended,
Texas Government Code.
Section 7. This Resolution shall be in force and effect from and after its final passage.
PASSED AND APPROVED on the 23' day of May, 2017.
Mayor Carpenter
City Secretary
(City Sea])
Agenda No. C
0111 &WOL11"LlusINU 10I01 [o7 710 Rod 1
City Council Meeting: May 23, 2017
Department: City Manager
Subject: Presentation by the University of
Incarnate Word MBA Students regarding
the Capstone Project on Schertz
Municipal Solid Waste Program.
BACKGROUND
At a Council on the Go meeting held at Corbett Junior High on February 21, 2017. One of the
presentations on that agenda was a discussion about our solid waste services. During that
discussion, various issues were brought to light including number of pick -ups per week, use of
recycling and cost of the service.
The week after this public meeting, Councilmember Kiser reached out to the City Manager and
introduced us to Dr. David Vequist, a professor of Management and Strategy in the MBA
program at the University of Incarnate Word. He works with MBA students in their final .
semester on completing capstone projects. He works to bring in governmental and not - for - profit
organizations that are wrestling with a specific issue for his students to adopt, research, analyze
and develop a plan to solve.
Mr. Kessel and Mr. Wait presented the situation with our solid waste service to the students in
late March and a group of five students (Madelyn Buhler, Meredith Garza, Blue Hybner, Daryl
Irby and Luis Guajardo) chose our project.
These students spent the month of April interviewing City staff, Bexar Waste leadership and
researching best practices across the nation. Then, on May 10, they presented their project and
proposed solutions as their final class project at UIW.
City staff believes the work these 5 students put into this project was outstanding. They
developed a plan that would set a course for transforming the method in which we handle solid
waste over the next 10 — 1.5 years, minimize cost to the citizens, allows our vendor to be
successful and potentially set a model for other communities of our size to follow.
Although this plan may not be the complete solution for the City, staff feels that it was
important to allow these MBA graduates to present their work to City Council. This allows them
to receive appropriate recognition for the work they did on behalf of the City and allows City
Council, City Staff and our citizens to understand where the solid waste industry is heading and
to better grasp different ideas in keeping costs low for our citizens while being better stewards of
our community.
Goal
To set the stage for more informed discussions and decisions regarding solid waste management
as our City continues to grow.
City Council Memorandum
Page 2
Community Benefit
More intelligent decisions in solid waste management practices will reduce overall costs and
minimize the financial impact this critical service will have on our citizens.
FISCAL IMPACT
None at this time.
ATTACHMENT
Final Project Paper, Schertz Solid Waste Capstone Project
City of Schertz;
Residential Municipal Waste Management
Madelyn Buhler, Meredith Garza, Blue Hybner, Daryl Irby, Luis Guajardo
May 10, 2017
Dr. David Vequist
BMGT 63CS-MBA Capstone
University of the Incarnate Word
San Antonio, Texas
Executive Summary
This document presents an analysis of residential municipal waste management in the
City of Schertz, a rapidly growing suburb of San. Antonio. The culmination of the following
pages is a goal of 50 percent residential municipal waste diversion from landfills by 2030, as
well as strategies created in order to help Schertz achieve this goal in a way more cost efficient,
manageable and equitable than the current waste management system. Currently, Schertz's
residential municipal solid waste management (RMSW) involves the utilization of two service
zones, one which is serviced by the City's exclusive waste management franchisee, Bexar Waste,
once a week, and the other which is serviced twice weekly. This current program has not only
been identified as unsustainable from a financial standpoint, but has caused residents to voice
displeasure over perceived service inequities stemming from a discrepancy in the number of
weekly waste collections.
Strategies have been devised to assist Schertz in developing a waste management system
which when compared to current practices is fairer in the eyes in the City's citizens, while
remaining both manageable and cost efficient as the municipality's population continues to grow.
These strategies include the achievement of a 50 percent residential municipal waste diversion
rate, to be achieved by the adoption of a variable rate pricing method, the creation of a public
awareness campaign and communication platform, and increased emphasis on the enforcement
of current waste management ordinances, as well as the implementation of citywide once weekly
waste collection.
Also discussed are other factors that determined the development of the strategies,
including waste generation forecasting, finances, and a summary of the current operations of the
Schertz waste management program.
F
Table of Contents
ProblemStatement ..................................................................... ............................... 4
Scopeof Project ......................................................................... ............................... 5
Executive Leadership ................................................................. ............................... 6
Internal Organizational Analysis ............................................... ............................... 7
Best Practices from Selected Cities ........................................... ............................... 9
WasteGeneration ........................................................................ ............................1.2
Goal: Increase Residential. Diversion Rate to 50 percent by 2030 ......................... 22
Phase 1: Implementation of Once Weekly Waste Collection & Recycling Can
Distribution.............................................................................. ............................... 23
Phase 2: Organic Waste Recycling Can Distribution & Implementation ............... 31.
Phase 3: Implementation of Variable Rate Pricing with 3 Options for Waste
Capacity................................................................................... ............................... 33
City of Schertz - Monetization of 50 percent Diversion Rate and Strategies ......... 41
The Solid Waste Communication Platform ............................. ............................... 47
Public Awareness Campaign ................................................... ............................... 52
3
Problem Statement
In our initial contacts with public officials from the City of Schertz, they identified two
primary concerns of their current municipal waste management system. This first of these
concerns was the growing perception of service inequalities. Schertz currently provides two
classes of waste management services, known in City documents as Zone 1 and Zone 2, in which
residential municipal waste is collected twice and once weekly, respectively. Although there is a
discrepancy in the frequency of collection, both classes of services are charged the same monthly
rate, and citizens are not given the option of which service class they participate in.
The second primary concern of the City was the realization that as the population of
Schertz continued to increase, it would be accompanied by an increase costs associated with
operation of the municipal waste management system. Officials indicated that they wished to
implement a system which considered the expected increase in population and subsequent waste
generation, and allowed citizens to continue to enjoy high qualities of service, while also
controlling future costs, which would be passed on to citizens in the form of increased utility
fees.
In additional meetings with City officials, it was revealed that the municipality is
primarily concerned with their residential municipal waste management services, which include
single family housing units and duplex housing. This residential waste management, according to
Schertz officials, are currently an expense center, subsidized by profits from commercial waste
management activity.
51
Scope of Project
Considering the concerns voiced by the City of Schertz, as well as additional extenuating
circumstances which have been provided by representatives of the City, a report has been drafted
which addresses solid waste management services pertaining to the residential sector of the City
of Schertz, Texas.
R
Executive Leadership
Michael Carpenter
Mayor
Michael Carpenter was first elected mayor in November of 2012. . He has since been re- elected
twice. Mayor Carpenter previously served on the city council beginning in May of 2005, and was
re- elected in 2007, 2009, and 2011.
John Kessel
City Manager
John Kessel became the City Manager of Schertz in June of 2011. . Before becoming City
Manager, Kessel served as Executive Director of the Schertz Economic Development
Corporation. As Chief Executive Officer, Kessel oversees the daily operations of 332 employees
who serve a citizenry of an estimated 38,000 people living within 32 square miles of property
located in three counties. As the City Manager, Mr. Kessel manages a $68 million annual
operating budget.
Dudley Wait
Executive Director
Dudley Wait has been employed by the City of Schertz since June 2001. Prior to serving as
Executive Director, Wait served as the EMS Director for Schertz EMS. Wait has been in the
EMS industry since 1985 . when he joined the volunteer ambulance service at Texas A &M
University. He took the position of Executive Director in April of 2015.
[:
Internal Organizational Analysis
Operations
Residential waste collection ordinances currently pertain to both single family housing
units and duplexes. Citizens are compelled to pay a waste management service fee, which is
incorporated into utilities, and are only allowed to have their waste serviced by a Schertz -
designated franchisee, currently Bexar Waste, Incorporated. Bexar Waste was established in
1988 and provides both waste and recycling collection services. In 2013, Bexar Waste was
granted rights to 7 -year exclusive franchisee status by the City of Schertz, and in 2015, . these
exclusive franchise rights were extended 1.0 years, and will expire August 2025. According to
Schertz city officials, the franchisee is entitled to 85 percent of revenues derived from waste
management fees and 100 percent of revenues from fees related to recycling.
City of Schertz - Municipal Solid Waste Service Map
a(
Collection
Schedule
cal pan Day
.d 7 r
T ...y.19 Frd.,
w i Wg
f-my
Schertz is separated by Bexar
Waste into 4 collection days, which can
be categorized into two zones based on
the frequency of pickup. One zone
(Zone 1) is provided with a single
weekly pickup. All households in this
once a week pickup zone are provided
with a single 96- gallon capacity
wheeled garbage can as well as a recycling bin. Collection from households within service Zone
1 occur on either Wednesday or Friday. Service Zone 2 sees pickup twice weekly. Households
FA
in this zone are provided with a single 55- gallon garbage receptacle as well as a recycling bin.
Collection from properties in service Zone 2 occur on either Monday and Thursday, Tuesday and
Friday. Regular waste collection currently includes garbage, small brush and limbs, rubbish, and
landscape waste other than nonhazardous bulky waste of any type, which is defined as an
unusual accumulation. 12 pickups of these unusual accumulations are allowed free of charge,
Res1�8 -6 I
Permits (2030-201.0)
-
after which a city determined fee per pickup is
imposed.
As evidenced by a map of residential
permits issued from 2010, most residential growth
in Schertz has occurred in areas currently
receiving once - weekly waste collection.
Best Practices from Selected Cities
Austin, Texas
Austin Texas began the formulation of a new waste management strategic plan after a
2009 study indicated that the value of waste sent to landfills at over $40 million. Under the new
master plan, accepted in 2011, the City set goals to move from the 38 percent diversion rate
experienced at the time of the study to a 75 percent rate by 2020, and a 90 percent rate by 2030.
Austin's focus on the achievement of this goal is based on changes to their Circle of
Influence, which includes private business, residential, multifamily, and commercial generators,
all of whom are responsible for their own separation of recycling, composting, and garbage
services. The counterpart to this Circle of influence is identified as a Circle of Control, in which
is included services which are provided to the city and involve mostly residential customers. The
City itself has direct influence of this Circle of Control, however change would require the
implementation of new services, which are likely to increase costs.
By focusing on the private sector, Austin reduced the need to develop new programs and
minimized costs associated with increases in services, however because the City lacks direct
control over entities populating this Circle, changes require voluntary participation. Should
stakeholders resist, or not participate as expected, goals may not be achieved (EPA, 2017)
San Francisco, California
San Francisco is widely regarded as having one of the most successful and effective
waste management and recycling programs in the United States. In 2002, the City adopted a Zero
Waste goal, and set benchmarks of 75 percent diversion by 2010, and the achievement of zero
waste landfilled by 2020. In 2009, after assessment of the program determined diversion rates
under a voluntary participation basis were stagnating, the city implemented a Mandatory
Recycling and Composting Ordinance, requiring all waste generators municipal, residential and
E
commercial to separate waste into recyclables, compostable, and landfilled trash. This
implementation of various trash separation, known in the city as the "Fantastic Three" came with
the adoption of a variable rate pricing model and varied trash can sizes.
The city has a long term contractual agreement with an exclusive franchisee, Recology,
Inc, under which the city provides oversight, research, and rate approval. Recology upholds its
part of the contract by providing collection and services, as well as reporting of pertinent data.
Regular contact is maintained between the entities to review performance and tasks, as well as
resolve outstanding issues.
The advantages of San Francisco's waste management system include strong political
leadership that has resulted in the passing of innovative and original initiatives such as
mandatory recycling, the nation's first plastic bag, and outreach programs which included
residences, commercial entities, schools, and public events. The use of a single service provider
allows for simplification of communication, administration and information gathering, while
allowing flexibility, collaboration, and bargaining power for the creation of long term plans. San.
Francisco also utilizes a pricing system which charges fees based on actual diversion, providing
a strong incentive to recycle and compost eligible waste
Disadvantages of the system include the lack of a contractual pricing agreement, resulting
in deliberation over rates and percentages due to each stakeholder. Additionally, although the
program implemented by the city is effective, San Francisco's use an exclusive provider stifles
competition, and is not agreeable to the entrance of new business which is potentially of net
benefit to the city (EPA, 201.6).
T
Renton, Washington
The City of Renton and Waste Management created an innovative contract that cost
effectively transitioned the community from weekly garbage and recycling services to every
other week collection of recycling and garbage, and weekly collection of compostable materials.
Justification of the switch was made on the basis that organic materials, which could spoil and
cause both a public nuisance and potential health hazard, would be collected more often than
recyclable and trash, both of which were composed of inorganic and supposedly non- putrescible
materials.
As a result of implementing the new system, overall system costs were reduced, higher
diversion rates were achieved, and the amount of greenhouse gas and pollutant emissions
resulting from the operation of waste collection vehicles was reduced. Waste Management also
saw benefit from the reduction of collection frequency. While wear and tear and operational
costs were decreased, the fact the WM remained the sole franchisee meant that the total amount
of waste collected by the company was the same, although more waste was diverted.
Overall system costs were reduced by transitioning to garbage and recycling collection every
other week, while compostable were collected weekly organics.
Drawbacks from the acceptance and use of a new collection frequency did come with one
particular disadvantage. It was found that citizens began complaints and raised concerns about
waste which not compostable but was also found to be putrescible, such as diapers and pet
wastes. These materials must be stored for two weeks with other trash to be landfilled (EPA,
2016).
HF
Waste Generation
Total Residential Solid Waste Generation and Makeup
Data provided by Schertz exclusive waste management franchisee indicates that during
2016, . households in the municipality combined to generate 83,362 tons of municipal solid waste.
This equates to a daily generation rate of nearly 36 pounds daily, and 6.6 tons over the course of
the year.
Total Residential Waste Generation Rate
Households Daily Generation Rate Annual Generation Rate
1 35.9 6.55175
Of this total. MSW figure,
82.6 percent was disposed of in
landfill facilities, while the remaining
1.7.4 percent of waste collected was
set out for recycling.
Waste Generation Forecasting
Household Unit Forecast
Residential Solid Waste Makeup - 2016
Cai•d�illed'a'uaste
According to data provided by Bexar Waste, Incorporated, in 2016 . the waste
management franchisee utilized approximately 68,894 tons of landfill space to service waste
collected from residences in the City of Schertz, with each household generating approximately
29.71bs. of landfilled waste daily ( Bexar Waste). By calculating the weight of landfilled
generated by residences daily (377,501 lbs.), and dividing this daily generation rate by the
approximate pound of waste generated daily, an estimate of the number of households in Schertz
was calculated, found to be 12,7 10.
i,
Projected Residential
Housing Units
'Blear
: =Hc�� elcr�
2017
1.2,827
2018
12,945
2019
13,064
2020
13,184
2021
1.3,305
2022
13,427
2023
1.3,550
2024
13,674
2025
1.3,800
2026
13,927
2027
14,054
2028
14,183
2029
1.4,314
2030
14,445
Per United States Census Bureau data, in 2010 the
last year for which actual data is available, there were 12,047
households in Schertz. This increase from 12,047 households
in 2010 . to an estimated 1.2,71.0 households in 2016 represents
a growth rate of 5.51 percent, or an average annual growth
rate of .92 percent. By extrapolating this average annual rate
of growth, a projection of the number of households in
Schertz has been developed. According to this projection, the
number of households in Schertz will grow to 1.3,184 by
2020, and 1.4,445 by 2030.
Household Landfill Disposal Generation Rates
Per data requested from Bexar Waste, households in the City of Schertz generate an
average of 29.7 pounds of solid waste daily. Although historical data specific to Schertz was not
provided, according to data collected from multiple editions of Municipal Solid Waste in Texas,
an annual publication issued by the Texas Commission on Environmental Quality (TECQ),
yearly per capita disposal has remained relatively constant for the last 3 years for which data has
been collected, Fiscal Years 2013, 2014, and 2015. . The three -year average yearly disposal rate
for the Alamo Area Council of Governments (AACOG), a political subdivision of Texas in
which Schertz is located, was 2,356.68 lbs. per year, or 6.46 lbs. per day (AACOG, TCEQ 2014, .
2015, 201.6).
This figure is comparable to the per capita disposal rate across the entire state, which according
to data provided by TECQ, is 2,382.23 lbs. per year, or 6.53 lbs. per day.
IN
Because of the relatively constant nature of waste generation rates across the AACOG
and the State of Texas it is assumed that the citizens of Schertz likewise to not experience much .
variation in their waste generation patterns year over year, and the 29.7 pound per household, per
day figure calculated by Bexar Waste is used throughout waste generation forecasts. It is also
assumed that the number of persons per household in Schertz will remain relatively constant over
this period. At this generation rate, a single household in Schertz generates 5.4 tons of landfilled
solid waste annually.
YinI
1 29.7 5.4
Projected Annual Residential Landfill Waste
Applying the constant 29.7 -pound generation rate to previously mentioned household
unit projections allows the creation of a projection of total annual residential landfill generation,
T
provided below. In 2017, r � aleiyyIIrd�r ltil;;
households across the City of 2016 68,894
Schertz are expected to contribute 2017 69,526
2018 70,165
69,526 tons of waste to landfill 2019 70,809
2020 71,459
facilities, and by 2030, this 2021 72,115
2022 72,776
landfilled waste is expected to grow
2023 73,444
to 78,296 tons, current practices 2024 74,119
2025 74;799
withstanding. 2026 75,486
2027 76,178
Recycling Generation Rates 2028 76,878
Per Bexar Waste, Inc., 2029 77,583
2030 78,296
approximately 14,468 tons of
recyclable materials were collected from households in the City of Schertz in 2016. By
determining the total number of pounds of recyclables generated daily by households (79,277),
and dividing that amount by the number of households derived from calculations using landfilled
waste statistics, a generation rate of 6.2 pounds daily, and 1.1 tons per annum of recyclables was
determined. It is again assumed that this generation rate for recyclables will remain relatively
constant minus outside influence.
Households Household Daily Landfill Generation (ibs.) Total Annual Landfill Generation (tons)',
1 6.2 1.1
1
Projected Annual Residential Recycling Generation
2017 14,601
2018
14,735
2019
14,870
2020
15,007
2021
15,144
2022
15,283
2023
15,424
2024
15,565
2025
15,708
2026
15,852
2027
15,998
2028
16,145
2029
16,293
2030
16,442
Landfill Disposal Prices
In a similar fashion to landfilled waste,
daily recyclable generation data was applied to
previously calculated household unit estimations to
create projections of the amount of recyclables
generated by households in Schertz until 2030. In
2017, . households are expected to recycle a
combined 14,601 tons of material, and by 2030, it
is expected that the weight of recyclables collected
from households will total 1.6,442.
Per the 2015 . edition of Municipal Solid Waste in Texas, during the fiscal year 2014, .
average tipping fees charged by MSW landfills in the state of Texas was $33.96 per ton, with
142 disposal facilities reporting. Bexar Waste disclosed that their tipping fees are approximately
40$ per ton, not including fuel cost and environmental fees, which add an additional 6 to 10
percent in tonnage fees. The median of this additional fee range, 8 percent is applied to the
approximated costs to develop an estimated total tipping fee charge of $43.20 per ton, for
landfilled waste deposited by services by Bexar Waste.
'II:
Trends in Landfill Tipping Fee :Pricing
According to multiple editions of Municipal Solid
Waste in Texas, average tipping fees increased from $32.00
per ton in 2011 to $33.96 per ton in 2015, in increase of
6.1.3 percent total, and a year over year increase of 1.23
percent.
Ordinances relating to Bexar Waste's granting of
exclusive franchisee status make no mention of
contractually set prices for tipping fees charged by the
waste management company, so it is not assumed that
tipping fees remain constant. Applying the average annual
1.23 percent change in the pricing of all landfills reporting
to the TCEQ to the approximated $43.20 cost of current
tipping fees charged by Bexar Waste allows for projections
of the tipping fee per ton charged to the City of Schertz.
Tipping fees are expected to be $43.73 in 2017, . and
increase to $51.23 by 2030.
1F
2017
$43.73
2018
$44.26
2019
$44.81
2020 !
$45.36
2021
$45.91
2022
$46.47
2023
$47.04
2024
$47.62
2025
$48.20
2026
$48.79
2027
$49.39
2028
$50.00
2029
$50.61
2030
$51.23
1F
Projected Landfill Disposal Costs
tlat�d
Rei�►a1lGndili 17�ilp��lt ;`±fit
'ntlpppe: ;
2017
$3,040,333.20
2018
$3,105,826.67
2019
$3,1.72,730.98
2020
$3,241,076.51
2021
$3,31.0,894.31.
2022
$3,382,216.09
2023
$3,455,074.25
2024
$3,529,501.89
2025
$3,605,532.82
2026
$3,683,201.57
2027
$3,762,543.42
2028
$3,843,594.43
2029
$3,926,391.39
2030
$4,010,971.93
Recyclable Disposal Pricing
Tipping fee projections have been applied to
projections of landfilled waste generation to estimate
total annual costs of landfilling residential waste in
the City of Schertz. In 2017, . total cost of tipping fees
for disposal of residential solid waste are expected to
eclipse $3 million. By 2030, these costs are expected
to have pass $4 million, an increase of approximately
another million dollars.
In 2015, the average statewide tipping fees of MSW Type V processing facilities, which
include recycling and composting facilities among others, was found to be $49.17 per ton, with
57 facilities reporting (TCEQ 2016). During initial conversations with Schertz city officials, it
was stated that each truckload of landfilled waste cost the city $20.00 to dispose, while each
truckload of recycling cost $4.00. Although it is assumed that these numbers are either rounded
or approximations, they represent the most current data about pricing relations between recycling
and landfill fees, as tipping fee rate information was not provided by Bexar Waste. According to
provided data, recycling tipping fees per ton are 20 percent of the per ton tipping fees of
landfilled waste. Applying this ratio to the $40 landfill tipping fee rate provided by Bexar Waste
results in a per ton tipping fee rate of $8.
IM,
Trends in Recycling Tipping Fee Pricing
As no mention of fixed or contractually set recycling
fees are mentioned in waste management ordinances, it is
again assumed that these prices change over time. Tipping
fees for Type V facilities in Texas increased from $47.63 to
$49.17 from 2013 to 2015, per data coIlected from the 201.5,
2014, and 2013, editions of Municipal Solid Waste in Texas. This represents an increase of 3.23
percent over the period, and 1.08 percent annually. Data regarding tipping fees specific to
recycling facilities was not found, it is assumed for the purposes of projection that tipping fees
for recycling facilities are similar to that of all Type V facilities.
Applying the 1.08 percent growth in Type
V facility tipping rates to the previously estimated
$8.00 per ton tipping fee in 2016 . results in a
projection of Bexar Waste's per ton tipping fee
rates for recyclable materials.
er ;
TipPr,T€iau
2017
$8.09
2018
$8.17
2019
$8.26
2020
$8.35
2021
$8.44
2022
$8.53
2023
$8.62
2024
$ 8.72'
2025
$8.81
2026
$8.91
2027
$9.00
2028
$9.10'
2029
$9.20
2030
$9.30
Applying the 1.08 percent growth in Type
V facility tipping rates to the previously estimated
$8.00 per ton tipping fee in 2016 . results in a
projection of Bexar Waste's per ton tipping fee
rates for recyclable materials.
Projected Recycling Disposal Costs
Projections of recyclable material
generation attributable to households in Schertz
have been combined with projections estimating
Bexar Waste's tipping rates for recyclable
materials to generate a third projection of the
tipping costs associated with residential recyclable
disposal. In 2017, total cost of recyclable tipping is
expected to be over $118,000, and by 2030 this
amount is expected to eclipse 1.50,000.
Total Cost of Residential Municipal Waste Disposal
A forecast of the total tipping fees associated with residential disposal is provided.
Total Residential MSW Disposal Casts by Waste
Category
$4,500.000,00
�a
R $3,50M00.00
r-J
2016 2018 2020 2022 2024 20,26 2020 ° 030
`(P- a
Total!
Recycling
Tipping
Fees
Total
Landfill
Tipping
Fees
G e,
r2017
$118,065.31
2018
$120,433.17
2019
$122,848.53
2020
$125,312.32
2021
$127,825.53
2022
$130,389.14
2023
$133,004.1.7
2024
$135,671.64
2025
$138,392.61.
2026
$141,168.15
2027
$ 143,999.35
2028
$146,887!.34
2029
$149,833.25
2030
$152,838.24
Projections of recyclable material
generation attributable to households in Schertz
have been combined with projections estimating
Bexar Waste's tipping rates for recyclable
materials to generate a third projection of the
tipping costs associated with residential recyclable
disposal. In 2017, total cost of recyclable tipping is
expected to be over $118,000, and by 2030 this
amount is expected to eclipse 1.50,000.
Total Cost of Residential Municipal Waste Disposal
A forecast of the total tipping fees associated with residential disposal is provided.
Total Residential MSW Disposal Casts by Waste
Category
$4,500.000,00
�a
R $3,50M00.00
r-J
2016 2018 2020 2022 2024 20,26 2020 ° 030
`(P- a
Total!
Recycling
Tipping
Fees
Total
Landfill
Tipping
Fees
G e,
21
nla1 'iniai �uinplic ias
:Tot La%l 1�.n,lisarta
ie,li'I iip T,tl 1I� Tplsl
2017
$3,040,333.20
$118,065.31
$3,158,398.51.
2018
$3,105,826.67
$120,433.17
$3,226,259.85
2019
$3,172,730.98
$1.22,848.53
$3,295,579.51.
2020
$3,241,076.51
$125,312.32
$3,366,388.83
2021
$3,310,894.31
$1.27,825.53
$3,438,719.84
2022
$3,382,216.09
$130,389.14
$3,512,605.23
2023
$3,455,074.25
$133,004.17
$3,588,078.42
2024
$3,529,501.89
$135,671.64
$3,665,173.53
2025
$3,605,532.82
$138,392.61
$3,743,925.43
2026
$3,683,201.57
$141,168.15
$3,824,369.72
2027
$3,762,543.42
$1.43,999.35
$3,906,542.78
2028
$3,843,594.43
$146,887.34
$3,990,481.77
2029
$3,926,391.39
$149,833.25
$4,076,224.64
2030
$4,010,971.93
$152,838.24
$4,163,810.17
21
Goal: Increase Residential Diversion Rate to 50 percent by 2030
Recycling has come of age as a series of strategies to combine waste collection with
selective recovery of some of the materials of the waste stream. Municipal recycling is to some
degree motivated by the commercial value of waste materials, as well as the environmental
effects of discarding certain materials, but far more by the sink value of waste absorption
capacity offered by the private recycling industry. This sink value refers to the ability to divert
the amount of waste deposited in landfills and other disposal facilities, which, when the cost of
recycling is less than that of landfill disposal, saves money. As the amount waste generated
increases, the associated increase in costs to deposit waste in landfills makes the sink function of
recycling increasingly attractive, especially when combined with the ability to earn income on
high value materials.
Local authorities and users interested in the sink value of recycling do so with the goal of
improving environmental performance and conservation of financial and environmental.
resources. Private recyclers are primarily focused on the value of traded materials. On the other
hand, companies which operate landfills, while also focused on the value of materials, generate
revenues from charging municipalities and other parties for dumping materials in landfills
(tipping fees), as well as the reclamation of materials which can be sold on secondary markets,
such as landfill gas or organics composting.
City of Schertz Diversion Rate Comparison
From September 2009 to August 2010 . the North Central Texas Council of Governments
(NCTCoG) undertook a study attempting to determine recycling rates throughout the region. The
NCTCoG consists of Wise, Denton, Collin, Hunt, Palo Pinto, Parker, Tarrant, Dallas, Rockwall,
.Kaufman, Erath, Hood, Johnson, Ellis, Somerville, Ellis, and Navarro Counties and per US
Census, had a population of 6.5 million in 2010, compared to the Alamo Area Council of
►,
Government's regional population of 2.2 million during the same period (AACOG, NCTCoG).
Sixty -two cities were considered, and recycling diversion rates ranged from 0 to greater than 35
percent. The average recycling diversion rate for the sixty -two cities was found to be 1.9.0
percent. This is in comparison to the 1.7.4 percent recycling diversion rate in Schertz.
Phase 1: Implementation of Once Weekly Waste Collection & Recycling Can
Distribution
Overview:
It is estimated that in 2017, . there will be 12,71.0 households in Schertz, with a projected
growth of 0.92 percent annually. Within these households, 39,986 persons are expected to reside,
according to U.S. Census averages of 2.91 persons per household. Although residential housing
units in Schertz are divided into 4 collection zones, these 4 zones are priced at only 2 different
rates, known as Zones 1 and 2. Zone 1.
denotes collection zones which sees once a
week garbage collection, and that are
charged for pickup of a single can at a rate
of $1.2.05 a month, with an additional $1.99
fee for recycling. Zone 2 refers to
households being serviced biweekly, which
must provide their own garbage cans and
are charged $17.59 monthly, along with a $1.99 recycling fee.
Households are not allowed to self - select their collection frequency, and many residents
in Zone 1 of the City have voiced perceptions of inequity stemming from the fact that they are
only provided with a once a week pickup while residents in Zone 2 have twice as many
collections. This is despite households in Zone 1 being provided with a 96- gallon waste
23
container free of charge. Households in Zone 2 are in general content with collection services,
although according to city officials, the main benefit of this twice weekly collection is not that it
allows for the collection of an overall greater volume of waste, but rather simple fact that it
allows them the opportunity to forget or neglect to set out waste for one of the collection days.
Total volume collected in both zones is similar at 96 gallons for Zone 1 versus 110 gallons in
Zone 2.
Weekly Collection
Year
KIWI
(Estimated Housing Units Zone 12017 ( 6413.577329
Base Household Monthly Fee ( $ 12.411
Bexar Waste Claim (85 %) $ 67,653.62
Recyclable Fee per Household $ 2.05
Monthly Zone 1 Fees to Bexar Waste ( $ 78,829.28
Base Household Monthly Fee I $ 18.11
Bexar Waste Claim (85 %) $ 98,727.40
Recyclable Fee per Household $ 2.05
Monthly Zone 2 Fees to Bexar Waste ( $ 111,875.24
The initial
recommendation to the City of
Schertz is to switch all residential
housing units to a once a week
pickup service. The primary
financial benefit of this strategy is
the reduction in the costs owed to
Bexar Waste by the City of
Schertz. Another effect of the
strategy will be the creation of a
system which is more likely to be
perceived as equitable by citizens
in different waste collection zones
of the city.
The number of household
units in 2017 is estimated to be
1.2,827. The number of households in each zone is unknown, as is the number of households
which participate in multiple bin or residential removal services, where waste haulers retrieve
and return garbage cans to a location other than the curbside.
For the purposes of cost projection, the total number of housing units in each zone has
been divided by two, resulting in an estimate of 6,41.4 household units for both. Zones 1 and 2.
According to City legislation, Bexar Waste has claim to 85 percent of revenues generated from
waste collection fees, and the City is entitled to the remaining 1.5 percent. Additionally, Bexar
Waste has ownership of 1.00 percent of revenues from recycling fees. Applying these percentages
to fee revenues results in an estimate of approximately $2,279,884 payment from the City to the
waste franchisee, with approximately 942,01.4 attributable to Zone 1, and 1,336,868 from fee
payments in Zone 2.
Should the City of Schertz continue to not allow households the option of choosing their
collection frequency rate there are two alternate options to address collections, not including the
continuation of current practices. The first of these options is the implementation of city -wide
once a week pickup for residential households. This option results in the reduction in the amount
of total costs due to Bexar Waste, the Lessening of waste collection fees for households currently
receiving twice a week pickup, and a collection schedule that sees all households serviced at the
same frequency.
The second option is the implementation of biweekly pickup for all households. Although
this change is considered inadvisable, it will be used as a means of comparison, along with the
keeping of current collection practices. City -wide biweekly collections have been found to be
inadvisable for several reasons. Firstly, the increase in costs to the City of Schertz associated
with more frequent collection would have to be passed onto citizens, who bear the costs of waste
F:
management services. Secondarily, citizens living in twice weekly collections zones have voiced,
according to city officials, that the primary benefit of the extra collection day is not the
allowance of greater amounts of waste generation, but rather the opportunity to forget or neglect
one collection day without serious effect. Additionally, conversations with waste collection
franchisee Bexar Waste, Inc. have revealed that should Schertz resort to more frequent
collections, the purchase of additional capital machinery would be necessary, potentially
increasing costs to the City and citizens at even greater rates than projected. Should Bexar waste
not be able or willing to make these purchases, another or an additional waste collection
franchisee would need to be contracted, which would have an unknown effect on costs and
related fees.
After an analysis of documents relating to waste collection fees, it was discovered that
waste collection fees increased at an average of 1.75 percent from 2007 to 2017. . Recycling fees
increased at a higher rate during the same period, an average of 5.82 percent annually. When
projecting the amount of payments due to Bexar Waste, these trends were considered, along with
the previously stated rate of growth for households (92 percent) as well as the fact that the
franchisee is entitled to 85 percent of garbage collection proceeds and 100 percent of recycling
fee revenue.
While all 3 methods result in a steady increase in the amount of money due to Bexar
Waste, the Weekly collection schedule is consistently the least expensive in these terms. By
2020, the once a week collection frequency is estimated to cost the city more than $865,000 less
than biweekly pickup, and over 430,000 less than current practices. By 2030, the cost difference
of these comparisons is expected to swell to over $1.1 million and $580,000, respectively.
F.
Makeup of Municipal Solid Waste
To form a realistic goal of diversion rates, it is not only necessary to determine the
materials which MSW is comprised of, but also the degree to which each of those materials
l�tls 1�t M"'
Paper and Paperboard
t114.
26.5%
Food
14.9%
Yard Trimmings
13.3%
Plastics
12.9%
Metals
9.0%
Textiles
6.3%
Wood
6.2%
Glass
4.4%
Rubber and Leather
3.2%
Other
1.8%
Misc. Inorganic Waste
1.5%
Total
100.0%
contribute to the overall makeup of residential MSW. According to
the Environmental Protection Agency, in 2014, MSW was
composed of the following materials, organized by their percentage
contribution to total MSW (U.S. Environmental Protection
Agency).
These materials can be classified and bundled into
categories. Recyclable materials, which consist of Paper, Plastics,
Metals, and Glass, are collected as a part of the City of Schertz
current recycling program, which lists newspaper, mixed paper, glass and plastic containers,
along with corrugated cardboard, boxboard, and aluminum, tin, Unadjusted MSW Makeup 2014
and bimetal cans. Food, Yard Trimmings, and Wood are included Retycble
Paper 26.50%
in the Organic materials group. The remainder of the waste Plastics 12.9%
Metals 9.0%
categories, Rubber, Leather, and Textiles, and Other are Glass 4.4%
considered to make up Trash. Organics
Food 14.9%
Although materials such as paper and plastics are indeed Yard Trimmings 13.3%
Wood 6.2%
recyclables, not all the material included in this category are Trash
feasible candidates for recycling. To determine the percentage of
each recyclable material category that is in fact recyclable, EPA.
data tables regarding the contribution of specific materials to
Rubber & Leather
3.2%
Textiles
6.3%
Other
1.8%
Misc. Inorganic Waste
1.5%
Total
100.00%
each waste category were consulted, and materials deemed to be unrecyclable were deducted.
WA
Materials considered unrecyclable are based on data provided by Schertz's current recycling
program.
+lis
Durable Goods 19.86%
Non - Recyclable 19.86%
Adjusted MSW Makeup'
Rccy l ble9
Paper
24.08%
Plastics
6.23%
Metals
1.46%
Glass
3.53%
Total Recyclables
35.29%
Organics'
Food
14.9%
Yard Trimming
13.3%
Wood
6.2%
Total Organics
34.4%
Trash
Rubber & Leather
3.2%
Textiles
6.3%
Other
1.8%
Misc. Inorganic Waste
19.0%
Total Trash
30.3%
Durable goods indicate instances where the
material is a component of another product not assumed
to be of short term use, such as metals and glass in
washing machines.
The above calculations were used to adjust
estimates of the contribution of each recyclable,
materials, the difference of these recyclable estimates was
added to the `Miscellaneous Inorganic' category of waste.
EPA data regarding the makeup of municipal solid waste
include both commercial and residential waste. The
development of the 50 percent goal considers this fact
and does not assume the entirety of recyclable and organic waste, which is estimated at nearly 70
percent (69.69 percent) of the total waste stream will be diverted.
Durable Goods
82.03%
Aluminum Foils & Closures
1.76%
Non - Recyclable
83.79%
Durable goods indicate instances where the
material is a component of another product not assumed
to be of short term use, such as metals and glass in
washing machines.
The above calculations were used to adjust
estimates of the contribution of each recyclable,
materials, the difference of these recyclable estimates was
added to the `Miscellaneous Inorganic' category of waste.
EPA data regarding the makeup of municipal solid waste
include both commercial and residential waste. The
development of the 50 percent goal considers this fact
and does not assume the entirety of recyclable and organic waste, which is estimated at nearly 70
percent (69.69 percent) of the total waste stream will be diverted.
Diversion Rate Schedule
Own cs
Rash
The achievement of an increase from a 1.7.36 percent diversion rate to 50 percent in 2030
requires an annual increase of 2.51 percent, resulting in a diversion rate of over 30 percent by
2023, 40 percent by 2027, and the achievement of the 50 percent goal by 2030.
Forecasted Residential MSW Disposal - Implementation of 50 percent Recycling Goal by
2030
This scheduled increase in recycling rates is applied to the previously generated forecast
of residential waste generation to achieve an alternate forecast of Residential MSW Disposal
after implementation of the 50 percent diversion rate goal. With the application of a 50 percent
diversion rate goal, the total amount of waste deposited in landfills is expected to begin
contraction in the first year. By 2020, at a diversion rate of nearly 25 percent, almost 65,000 tons
of residential MSW are expected to be landfilled, while approximately 21,500 tons of waste are
diverted. By 2030, amounts of residential waste landfilled and diverted are expected to become
equal, with over47, 000 tons of each type of waste.
100000
75000
50000
25000
0
Landfilled vs. Diverte-d Mste - 50% Diversion
Goal
— Diverted
Waste
— Landfiled
VVaste
,2019 2020 2022 2024 2026 2028 2030
MM
30
Phase 2: Organic Waste Recycling Can Distribution & Implementation
Organic Waste Recycling
Overview
Organic, or green waste recycling, involves the diversion of organic materials from
landfills for alternative uses. Organic material commonly considered eligible for municipal
organic recycling includes yard waste, food scraps, and animal waste. When these materials
decompose in anaerobic conditions such as that of a landfill, methane, a greenhouse gas which
has been shown to have a warming effect between 4 and 86 times that of carbon dioxide is
generated (Scientific American, 2015). When decomposed in aerobic conditions, such as that of
an organic recycling facility, the opportunity to produce compost arises. Compost is a nutrient
rich product which is often utilized as soil amendment in landscaping as mulch, as well as in
agriculture and horticulture as fertilizer (Environmental Protection. Agency).
Organic Waste Recycling Tipping Fees
Data regarding tipping fees specific to organic waste recycling facilities is largely
unavailable, on regional, state and national levels. Beyond Recycling, a 2005 EPA funded report
developed by the Center for a Competitive Waste Industry found that tipping fees for organics
processing range from $15 -$90 per ton (Anderson, 2005). The City of San Antonio recently fully
implemented the first green waste recycling program in Texas, and contracts its organic
recycling services to New Earth Compost, a San Antonio based company with composting
facilities in Katy, Houston, and San Antonio (New Earth Compost). The nearest of these landfills
is located approximately 1.0 miles from Schertz, according to a Google Maps search.
31
Per a February 2017 . article in the San Antonio Express -News, the City of San Antonio is
charged a $16.50 per ton tipping fee by the recycling company. The article makes mention of a
contractual agreement between the municipality and the franchisee. It is assumed that in
exchange for assurance that certain volume of waste is deposited at the landfill, reduced rates are
available to San Antonio, a common practice by waste management service companies (Taylor,
201.7). Non - contract market rates for per ton disposal of organics at New Earth's composting
facility are not made available. Although it is possible that Schertz could arrange an agreement
that sees tipping fees at the same or similar rates as San Antonio, to generate a more conservative
projection of pricing, San Antonio's current organics recycling tipping fees have been averaged
with estimates for average per ton tipping fees for all Type V disposal facilities in Texas in 2017
($50.24), to form a tipping fee estimate of $33.37 per ton. These tipping fees are expected to
trend upward at the same rate found for all Type V disposal facilities in the state, 1.08 percent.
W
Phase 3: Implementation of Variable Rate Pricing with 3 Options for Waste
Capacity
Variable Rate Pricing
Overview
Variable rate pricing, also known as a "unit based" or "pay as you throw" pricing model,
is a strategy that has been adopted by municipalities across the United States and abroad. This
model of waste collection charging is considered attractive for multiple reasons, many of which
are directly relevant to the City of Schertz. In Massachusetts, it was found that municipalities
using unit based pricing models have seen an average of .37 tons of waste per capita disposed
weekly, in comparison to a .42 -ton per capita weekly waste disposal rate by municipalities which
have not implemented a unit based model. According to the EPA and Vermont's Agency of
Natural Resources, variable rate pricing models can reduce municipal waste disposal rates by 25
to 45 percent (Lambert, 2004). This reduction in disposal rates is caused by a "price signal" sent
to waste generators indicating that the more trash they produce, the more they will be charged
(Vermont Agency of Natural Resources, 2014).
This reduction in waste production and disposal rates, which lowers the cost of landfill
dumping by cities, has been found to go hand in hand with significant increases in recycling
rates. Per a study of nine Massachusetts communities done by the Massachusetts Department of
Environmental Protection, the implementation of a variable rate pricing models saw increases in
recycling rates of up 28 percent in the first year after implementation. The town of Shutesbury,
Massachusetts saw recycling rates increase from 25 percent to with a 52 percent during this
period.
There are many methods by which variable rate pricing models can be implemented. The
most common of these methods include:
33
Marked Trash :Bags /Stickers /Punch Cards - Residents purchase or acquire these
identifiers directly from a waste collector or municipality. The price of these items either covers
all costs associated with collection and disposal or is recorded upon collection, and residents are
charged accordingly. And waste haulers are instructed to accept only properly marked bags or
trash cans.
Weight -Based - Trash containers or bags are weighed, and customers are charged based
on a per pound rate. This method required the use of certified scales to ensure accuracy of
charges.
Containers or Cans - Residents are either offered garbage receptacles of varying size,
with collection charges increasing for the collection of larger containers, or offered a single size
can, with additional fees charges for each additional can serviced.
Implementation of a container based pricing method utilizing scalable trash carts is
suggested for the city of Schertz. This method provides citizens the opportunity to self - select the
size cart they feel best fits their household, while assigning a different price for each can,
charged monthly. A 96 gallon can, already provided to residents receiving waste collection
services once weekly would be available to household producing large amounts of waste, and be
assigned the highest rate. Household producing less waste retain the option of choosing either a
64 or 48- gallon cart.
Prices developed for variable rate cans have been based off the
current $.24 price per gallon paid by citizens. The 64- gallon can has
been assigned as average, and is priced at the current rate for single
week collection. 48 and 64- gallon containers have volume of 1.6 gallons less, and 32 gallons
more respectively, and have had their monthly rates adjusted accordingly.
34
48 Gallon
$8.66
64 Gallon
$12.50
96 Gallon
$20.18
Prices developed for variable rate cans have been based off the
current $.24 price per gallon paid by citizens. The 64- gallon can has
been assigned as average, and is priced at the current rate for single
week collection. 48 and 64- gallon containers have volume of 1.6 gallons less, and 32 gallons
more respectively, and have had their monthly rates adjusted accordingly.
34
The program according to the vendor Bexar Waste, should take 4 -6 months to implement
in full. It is also estimated that each of the other can distribution cycles, one for recycling and
another for organic collection carts, will take a similar amount of time. Bexar Waste would be
manage the purchasing and distribution of the carts as they do currently. Households currently
provided a 96- gallon cart that choose to switch to a smaller will have the opportunity to do so,
and those 96- gallon carts will be available for redistribution to other households.
San Antonio Variable Rate Pricing Model
A variable rate pricing method based on the size of carts is was implemented in San
Antonio in 2015, and remains currently used. David McCary, the director of solid waste
management, explained as reasoning for the switch that, "an average family of six currently
generates about eight kitchen trash bags a week, or about 73 pounds. Of those eight bags,
however, three could go to a green organics cart and two could go into the blue recycling cart.
The remaining three bags, he said, would fit into the 48- gallon cart." (Baugh, 2014).
The pricing structure for San
Antonio households is based on the size of
a city- issued "brown cart", meant for trash.
According to city officials, beginning in
the fiscal year 2016 . residents pay monthly, $21.69 for a 48- gallon cart, $22.18 for a 64- gallon
cart, and $23.43 for a 96- gallon cart, that which was most widely used at the time of the
strategy's implementation (Baugh, 201.4). As an additional incentive to reduce landfilled waste
generation by San Antonio households, costs associated with each of the differently sized cans
change at varying rates. According to a provided schedule of proposed fees provided below, the
price of a large cart increases over 27 percent from 2016 to 2019, . at a rate of nearly 7 percent per
year. Fees for medium sized carts increase at lower rates, 9 percent over the 4 -year period, or
35
2.25 percent annually. The fees for utilization of the smallest garbage cans decrease nearly 3.5
percent between 20] 6 and 2019, . or an average of -.86 percent annually.
Applicability of Variable Rate Pricing to Schertz
A variable rate pricing structure is believed to be a good fit for the City of Schertz for
several reasons. Although there are zones with different rates of collection throughout the city,
the amount of waste collected per week is similar. Current ordinances state that to be eligible for
base pricing, households are allowed to set out a single waste container for collection by the
waste management vendor. Zone with twice weekly pickup are allowed a 55- gallon container for
trash, while once a week pickup zones are provided a 96- gallon container. This results in a 110-
gallon pickup capacity for twice weekly collection households and a 96- gallon capacity for zones
with weekly collection. After discussions with city staff, it was pointed out common practice is
for households in twice weekly pickup zones to only take advantage of the second day, due
either to them forgetting to put their trash containers out on the first collection day, or for
convenience. During this second day, 2 55- gallon cans are often set out for collection.
Implementation of a system in which citizens are provided a uniform sized is therefore not
thought to cause a major effect on the activity
Although recommendations include the offering of different sized cans, the adoption of a
standardized waste receptacle format would eliminate variation of containers and allow the
possibility of a switch to an automated system, which would subsequently lower labor costs
charged to Schertz., as well as offer the possibility of reduction in the time it takes to collect
trash on a truck route. Currently, households receiving once a week collection, which represent a
substantial portion of all households in Schertz, are provided by Bexar Waste 96 gallon
containers. This allows the possibility of recalling containers already in use and assigning them
36
to households which request the largest size cans, reducing costs of a transition to the
recommended system.
The allowance of smaller containers city -wide may also solve another issue brought to
attention, that of residents not being able to bring 96 gallon containers curbside because of their
weight. This issue is most prevalent in the elderly community of the city, and although Bexar
Waste does provide a service in which waste haulers retrieve cans from property during
collection and return them, this comes with an additional fee. These elderly residents are also
less likely to be generating waste at a level that necessitates use of 96 gallon cans, making the
availability of a cheaper, lighter, and easier to move container more attractive.
The use of a variable rate pricing system also offers a financial incentive for households
which successfully divert waste from the landfill. According to UN Habitat, the offering of
"modest financial incentives" is one of the traits common in high performing recycling and
organic waste systems (UN Habitat, 201.0). This is easily recognized as a fairer system than that
of a flat rate pricing model, for the simple fact that if you throw away less trash, you will be
charged less. Low - volume waste generators will no longer subsidize the collection costs of high-
volume waste generators, instead those high - volume are charged according to their output.
Containers of the smallest size (48 gallons) are set at lower prices than currently charged
for any residential collection service in Schertz, providing the incentive to throw less trash away.
The middle container (64 gallons) is set at the current price paid by $12.50. This signals to
households that to continue paying the same rate for waste collection services, changes in the
form of increased recyclable and green waste diversion must be made. The largest container (96
gallons) is priced higher in the recommended pricing guide than currently current rates as a
deterrent from its utilization.
WA
Enforcement of Ordinances
Conversations with city officials revealed that although citizens are currently charged on
a per can basis, it is common for households to set out additional bags of garbage for collection
should they run out of capacity in their assigned receptacles. This issue is thought more prevalent
in service zones where waste is collected bi- weekly, as resident's tendency to forget or neglect to
set out waste for collection on one of the two collection days is combined with their lack of a
high capacity garbage can. Although this practice does not comply ordinances passed by the City
of Schertz City Council, waste collection franchisee Bexar Waste routinely collects waste that is
set out in this fashion without consequence to the generator. Additionally, it is well known that
the practice occurs, but data is not available on either the frequency of non- compliant waste
collection or the amount of waste which is set out in this fashion, making it impossible to
identify the actual effect of this phenomenon.
To end this practice, it is recommended that the City of Schertz more stringently enforce
pre - existing waste management ordinances. This will be especially important with the
implementation of the suggested variable rate pricing system, which is heavily based in the
concept that household pay for the amount of waste they generate. Should Schertz choose not to
implement variable pricing, increased enforcement of ordinances will still allow the municipality
to generate additional revenues from households which currently generate waste at higher
amounts than they pay for.
WP
Solid Waste Management in the World's Cities, a report drafted by the United Nations
Human Settlement Program, outlines global solid waste management best practices around the
world, and specifically identifies two American municipalities, San Francisco, California, and
Tompkins County, New York. At the time of the study, these communities boasted 77 percent
and 61 percent recovery rates, respectively. To encourage compliance to municipal solid waste
ordinances, these municipalities have developed and put into enforcement mechanisms which are
similar in nature to one another, as well as the suggested enforcement mechanisms.
Suggested Ordinance Enforcement Practices
Source separation, the practice of tasking waste generators with the categorization of
their waste into separate receptacles, is currently utilized in Schertz. This practice, which
separates waste at its point of generation is used by many municipalities worldwide and is
thought to be a more efficient and cost effective means of waste separation than that which takes
place at Material Recovery Facilities (MRF), landfills or other end of the chain facilities. It is
recommended that the city of Schertz allow Bexar Waste, or any future MSW service franchisee
the option to refuse collection of waste which has not been properly separated or prepared in
ways which are not compliant with MSW ordinances.
This newly adopted practice would utilize a tag system allowing households several
chances to comply before waste is refused. The tag requires waste haulers, upon arrival at a
household, to perform a spot check of waste, to determine if there is waste which has been set
39
out improperly, as well as waste placed in containers in which it does not belong (ex, organics or
trash in recycling container, recycling or trash in organics container).
Should it be found that waste has indeed been set out improperly, the waste hauler
collects the waste, and leaves a tag on the container identifying the offense. On the second
instance of improper curbside setting or separation within a three -month period, the container
leaves another tag, and sends correspondence by email or mail to the subscriber of the collection
service. On additional offenses, collectors may elect to refuse collection of the non - compliant
container. Under these circumstances, the collector leaves a note identifying what must actions
must be taken for materials to be collected. The waste collection franchisee shall maintain a
record of subscribers who have received tags, notices, or who have had their waste refused, and
will upon request provide these records to Schertz.
The rate at which households have been or would be non - compliant with enforcements is
unknown, as there is no current data on the matter. Because of this, the number of tags used
monthly, which may end up being financed by Schertz, is unknown.
In 2017, . Schertz is estimated to have 12,827 households. With the implementation of all
recommendations provided in this document, each of the households would have 3 garbage
containers, totaling 38,481. With a weekly pickup schedule, each of these cans would have 52
possible instances of being found noncompliant with an ordinance and provided with a tag,
totaling 2,001,012. A rounding of this figure, 2 million, is used to estimate the number of tags
needed for enforcement of this recommendation. A simple search of Costso.com for bulk paper
40
indicates the price for a pallet of 10 percent recycled copy paper is $1,569.99, with each pallet
containing 200,000 sheets of paper (Costco Wholesale). It is assumed that each of these sheets
can be cut in half for notifications, resulting in a single pallet yielding 400,000 notifications, and
5 pallets satisfying the estimate of necessary notifications. In total, these 5 pallets would cost
$7,849.95 annually, or about $655 per month.
It should be noted that the estimate utilized for this costing of this recommendation does
not consider the probable occurrence of households reducing the frequency at which they are
found non - compliant with ordinances, and so it is likely a grossly conservative estimate of actual
costs.
City of Schertz - Monetization of 50 percent Diversion Rate and Strategies
Costs
The vast majority of monetary costs associated with implementation of the 50
percent diversion rate goal will be borne by Bexar Waste, the exclusive franchisee. These
costs include the purchase and distribution of recyclables and organics recyclables cans,
as well as the purchase and distribution of different sized trash cans. Costs to be borne by
the City of Schertz include the costs of public awareness campaigns. Although there are
few financial considerations by the City the passage of legislation and rules associated
with the diversion goal have the potential to cost considerable political capital.
Benefit
Citizens
41
There are two primary benefits to citizens related the implementation of
recommended strategies, related to equality and equity. In terms of equality, all
residences will see their waste disposed of at a uniform frequency, and until variable rate
pricing is implemented, at an equal cost. After the introduction of variable rate pricing,
rather than have all households pay an equal rate regardless of generation, households
will be charged equitably, based on the volume of waste generated.
Bexar Waste (Franchisee)
City wide once weekly collection, while reducing the amount of revenue sent to
Bexar Waste in the form of fees, is not likely to affect the amount of waste collected. By
keeping revenue generated from tipping fees the same while decreasing the costs incurred
by the company for labor, Bexar Waste may see a net positive effect from this strategy.
The increase in recyclables will also benefit Bexar Waste monetarily. Whereas the
value of landfilled goods only comes from tipping fees, recyclables can be used to
generate revenue twice, once on deposit at a facility, and once again at the time at which
the recyclables are sold. According to Republic Services the current average commodities
price of recyclables is $155 per ton, while the University of Massachusetts estimates that
organic compost has a value of $45 per ton. By 2025, the time at which. Bexar Waste's
exclusive contract with the city expires, the company is expected to have collected, as a
direct result of diversion goal implementation, an increased amount of recyclables with a
value estimated to be over $3 million dollars. This revenue has a high likelihood of
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offsetting any increased implementation and operational costs which have been incurred
by the company because of the adapting to the 50 percent goal.
Schertz
The City of Schertz will also see benefit from the recommended strategies.
Operational costs of collection will be reduced by the reduction of all households to
weekly garbage service, while the amount of waste which citizens are able to dispose of
will remain for the most part unchanged. The emphasis of traditional recycling and the
introduction of organics recycling, both of which have tipping fees estimated to be less
than that of landfilling, will result in lower average per ton tipping fees for waste
collected from residences.
Monetization
There have been identified two primary ways in which the City of Schertz can
monetize the strategies previously described, both of which require renegotiations with
Bexar Waste, although they have 2 separate implementation periods.
Fee Restructure - Implementation of Variable Rate Pricing
The first monetization strategy, a fee restructure, would be applicable after the
introduction of variable rate pricing, and is derived from a similar model used by San
Antonio. Currently, Bexar Waste is estimated to receive approximately $2.3 million from
the City of Schertz, according to a fee structure that see the franchisee claim 85 percent
of waste collection fees and 1.00 percent of recycling fees. This amount, according to
43
projections, will increase at a rate of 3 percent annually until 2030, at which point it will
reach over $3.5 million. We propose that Schertz develop a long-term contract with
Bexar Waste that will guarantee them this annual amount for the near future.
After the city has implemented variable rate pricing, we propose that they then
use a differentiated price increase model to increase the fees of the largest cans at higher
annual percentages than middle sized cans, and have the annual percent increase for the
Small, Medium, and Large Garbage Can Fees
$40-00
$30.00 ........ .. . ........ ..
—Small - 1
75%
Medium -
3.5%
Large. - S.
25%
2019 2021 2023 2025 2027 2029
2020 2022 2024 2026 2028 2030
Year
smallest volume cans smaller yet. An annual fee increase of 1.75 percent for small cans,
3.5 percent for medium cans, and 5.25 percent for the largest 96 gallon cans is provided
below. This pricing strategy will provide further incentive for households to divert waste
and utilize smaller waste collection bins.
44
In addition, it is believed that by switching to this pricing model there will be a
marked increase in revenues from waste collection. In 2019, the projected start of
implementation of variable rate pricing, it is assumed that 20 percent of households will
use 48 gallon bins, 30 percent will use 64 gallons, and the remaining 50 percent will
continue to utilize 96 gallons of landfilled waste capacity. Under this assumption, the city
will make over $640,000 in profit, considering the amount due to Bexar Waste. It is
assumed that household in the city will gradually settle into a 25, 50, and 25 percent
utilization of the small, medium, and large containers. Using this ration by 2030, the
profits due to Schertz will have swelled to over $1.1 million annually
i ALM "Em- LO E.M.
2020 202-2 2024 2026 2028 2030
CM
Difference
Paid to
chrt
Bexar
Waste 5%
rate c
t roje to
Increase
In 2025 the point at which the contract granting Bexar Waste exclusive rights to
service MSW in Schertz expires, it is estimated that the total combined revenue from the
FIR
implementation of strategies recommended will be over $4 million dollars, with $3.5
million dollars in tipping fees being incurred that same year. This is not only due to the
increase in revenue generated from the variable rate pricing, but also from an increase in
the total value of recyclables collected during the time. In 2015 the value of collected
recyclable is expected to be over $780,000, when compared to the amount projected to be
collected should the City continue with current practices. This provides another
opportunity for the City to renegotiate with the Bexar Waste.
Until 2025, it is
assumed that Bexar Waste
will retain ownership of all
recyclables collected,
including organic material for
composting. Although the
company would be tasked
with what may be significant
operational costs due to procurement and distribution of additional trash cans, during the
period from 2017 . until 2025, the franchisee will see as estimated increase in recyclables
value of over $3 million dollars, likely offsetting any costs of implementation.
46
Projetted 7ripping Fees vs Recyclable Reven
& Fee Profit i
MMMMMMM
$5,500,000.00
$4,500.000.00
IIMM�
c
,52,500,000.00
20,25
,2026 2027 20,28 2029 2030
149 a, r
The Solid Waste Communication Platform
Tipping
Fees
Recyclable
Revenue +
Froj a cte d
Fee Fro fit
There is increasing acceptance of the need for stakeholder mobilization during the
planning and development process, but active inclusivity is seldom maintained once the
system is in place. A successful waste management system also should stabilize and
institutionalize practices and mechanisms for two-way communication between all
stakeholders, including municipal authorities, service users, formal and informal service
providers, and the wider community.
A platform maintains open lines of communication between actors who are
normally isolated from, or even antagonistic to each other. The difference between a
platform and a series of meetings is its continuity over time, and the fact it persists
Fly
A
through elections, along with it providing a safe social space for discussing differences,
resolving problems, and arriving at a common way of looking at a problem.
Importance of Communication
Communication fuels a good collection service. According to the UN Human Settlement
Program, engaging users and facilitating their communication with the city and providers is
arguably the most important factor for effective waste collection. Specific examples of the need
for communication channels are related to the building of recycling programs, whose success is
dependent on users changing their behavior and following rules. Any change in service will
probably require that both users and providers change their ideas, modify established behaviors,
and communicate what works and does not work.
In general, the public genuinely confused about what waste prevention means and many
people tend to think that it is equivalent to only recycling, and nothing else. Recycling has
become such a well - developed norm that is hard for people to think past it. Although the prolific
nature of this prevention method is not necessarily a bad thing, it presents an opportunity to
engage the public in the teaching of other prevention activities.
Users of municipal services cooperate better if they understand why solid waste systems
have been set up in a particular fashion. Many municipalities utilize only unilateral
communication channels. Although this one -way communication, such as an advertising
campaign helps, it places users in the position of passive receivers. Active feedback systems that
engage users have been proven to work better long tern, particularly those which feature
FIN
permanent and multidirectional communication channels. Citizens affected by or taking
advantage of municipal waste management systems are in a unique position, not only to monitor
effectiveness, but also to inform both providers and municipal governments how the system is
working.
Creation of Communication Platforms
Per the UN, inclusivity and fairness for users is one of the 3 key governance features of
successful integrated sustainable waste management systems, along with financial sustainability
and sound institutions and proactive policies. This inclusivity concerns issues relating to equity
of service for users, and the assurance that all waste generators to have their waste removed
regularly reliably. This inclusivity can be divided roughly into subcategories which include:
• Consultation, communication and involvement of users, both in decision making and
action, such as home composting and waste prevention.
• Participatory and inclusive planning and design, including inclusivity in waste
management sites.
• Institutionalizing inclusivity such as feedback mechanisms, client surveys, and solid
waste forums and platforms.
Key Features of Effective Platforms
Non - Ownership by Authorities
Local authorities need not own platforms, nor control their activities. This feature
makes platforms a long -term feature of a waste management service that persists through
49
elections or other changes in municipal leadership, helping to create a bridge to new
administrations.
Permeable Boundaries
The allowance of permeable boundaries ensures that members of communication .
platforms are self - selecting and represent themselves as well as their communities or
organizations. This gives a voice to groups or communities which normally would have
been marginalized in the sense that their collection needs, issues, or desires are not
brought to attention.
Feedback Mechanisms
Feedback Mechanisms exist in many forms, the most direct and commonly thought of is
the allowance of direct communication between residents and the city government or a waste
management provider. As with any service, determining the degree to which consumer's
expectations are met is critical. Much feedback is related to complaints, such as incomplete
pickup, or illegal dumping. In these cases, it is essential for Schertz to provide rapid follow up to
establish the nature of non - compliance and to correct it. This will, in many cases, require the
inclusion of the City's waste management franchisee. The creation of relationships and
environments where all parties feel comfortable sharing their thoughts and perceptions on
collection services will likely lead to a clarification of these expectations, and increased
understanding between parties.
w
Compliance and payment behavior are also forms of communication, although less
commonly considered as so. The case of Schertz, citizens communicate their satisfaction or
discontent with a collection practice or service by obeying or violating rules for disposal or
recycling. When communication is incomplete or there is lack of trust between users and
providers the result is often poor levels of household separation, leading to high post collection
sorting costs or low market value of recyclables due to cross contamination.
Effective Feedback Mechanisms
The creation of different windows for receiving feedback, providing accurate and
timely follow up to user questions of comments, and incorporation of user ratings in
employee or franchisee evaluations are identified as components of effect feedback
platforms by the UN. Campaigns or competitions for the cleanest city compared to
neighbors can strengthen feedback mechanisms and foster the sense that all stakeholders
are involved in contributing to the cleanliness of a city. Such action can cause city
councils to become committed to achieving higher levels of cleanliness and maintaining
or achieving status as the cleanest city.
Data Collection
Two things need to be considered when developing communication platforms;
what approaches and interventions work, and what messages should be used. Evidence
will often need to be collected from future campaigns, because historical data is often
weak. A challenge exists to put in place a system which can capture evidence as it is
51
generated, as robust and quantitative data is a primary and critical gap in the evidence, of
success in many, if not most, waste diversion campaigns and waste management
platforms.
Public Awareness Campaign
Phase I
Below are two sample Public Service Announcements (PSA's) that will be sent to each Schertz
citizen outlining Schertz's recycling campaign during Phase 1 of our public outreach program. In
this we aim to highlight the benefits of recycling, and inform the public about the plethora of
items that are recyclable. These PSA's will be placed on the city's website, distributed at town
hall meetings, and placed into each resident's utility bill. The cost of printing these PSA's will be
approximately $10,000, a cost we believe the city of Schertz could either pass on to or split with
Bexar Waste Management (BWM). Since BWM would receive a huge benefit from more
recycling in the form of lower tipping cost at the landfill, it is justified that BWM should also aid
and support the recycling plan presented by the city of Schertz. This will not be the only cost that
BWM will be asked to assist with regarding the recycling plans outreach program. Along with
the PSA's we have written up, we also included two flyers that will instruct citizens on how they
can reduce their organic waste. The flyers will be posted on the website and distributed at town
halls or town gatherings, but will not be mailed individually to each resident.
W
The city of Schertz is excited to introduce our new recycling campaign to its citizens! You will
soon be receiving a recycling waste bin, compliments of Bexar Waste Management. By the year
2030, we plan to divert 50% of our municipal waste in Schertz to recyclable material. Below are
some of the benefits that recycling can bring to our city!
Benefits of Recycling
Saves Natural Resources - By making products from recycled materials instead of virgin
materials, we conserve land and reduce the need to drill for oil and dig for minerals.
Saves Energy - It usually takes less energy to make recycled products; recycled aluminum,
for example, takes 95% less energy than new aluminum from bauxite ore.
Saves Clean Air and Water - In most cases, making products from recycled materials
creates less air pollution and water pollution than making products from virgin materials.
Saves Landfill Space - When the materials that you recycle go into new products, they don't
go into landfills or incinerators, so landfill space is conserved.
Saves Money and Creates Jobs - The recycling process creates far more jobs than landfills
or incinerators, and recycling can frequently be the least expensive waste management method
for cities and town.
53
Materials that currently can be recycled:
Newspaper & Mixed Paper: Newspaper, including the slick, glossy inserts, can be Recycled,
unless wet or discolored by the sun. Protection from the
Glass Containers: Clear, brown, or green glass containers which have been rinsed (no lids) can
be recycled.
Plastic Containers: Plastic containers which have been rinsed (no lids) and are designated with
a recycling code of (1) to (7) can be recycled.
Corrugated Cardboard & Boxboard
Aluminum, Tin, or Bi -metal Cans: Rinsed soft drink /soda, juice, or beer cans can be recycled.
Recycling Hotspots
In the Kitchen
In the Office
Aluminum & steel cans
Ad circulars
Cereal & cracker boxes
Catalogs
Frozen dinner boxes
Copy & printer paper
Glass bottles & jars
Envelopes
Meat trays
File folders
Paper milk & juice cartons
Junk mail
Paper towel cores
Magazines
Plastic bottles
Newspaper
Styrofoam® egg cartons
Phone books
Plastic Bags
"W711WR / /
Toothpaste boxes
Pill /Medicine Containers
Plastic spray bottles (remove
nozzle)
Shampoo & lotion bottles
Toilet paper tubes
Schertz residents can recycle plastic bags as well. All they need to do is stuff a group of dry and
clean bags together in one bag, no black bags, then tie the handles together tightly. Now toss that
soccer ball size bundle in the cart to be recycled. It's that easy!
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Along with sending out PSA's to the citizens of Schertz, an educational program for the city's
students will be developed and implemented. The School Outreach Program seeks to educate
students about waste reduction and responsible environmental behaviors through the "3 Rs"
concepts (reduce, reuse, and recycle) and deliver presentations, activities, and programs based on
the best practices in educational learning. The city council should work with the local schools
and have them set aside a specific day, presumably Earth Day, April 22, to teach the students
about the importance of recycling.
Pre -K —1st Grade
Introduces the "3 Rs" and natural resources. Explains how to use, conserve, and correctly
dispose of natural resources and materials. Teaches how to conserve, reuse, or recycle paper,
plastic, metal, and glass.
2nd — 3rd Grade
Explains how to use, conserve, and correctly dispose of natural resources and materials. Teaches
how to conserve, reuse or recycle paper, plastic, metal, and glass. Covers how people depend on
natural resources and strategies to conserve and replenish those natural resources. Learn to make
informed choices in the use and conservation of natural resources by recycling or reusing
recyclable materials. Explores the characteristics of natural resources that make them useful.
products. Describes the effects of conservation and pollution in shaping the landscape.
4th Grade
Teaches how to make informed choices in the use and conservation of natural resources by
recycling or reusing recyclable materials. Teaches about Earth's renewable and nonrenewable
resources and the importance of conservation. Explores the characteristics of natural resources
that make them useful products. Describes the effects of conservation and pollution in shaping
the landscape, and the impact on habitats and wildlife as well as air and water quality.
5th Grade
WP
Teaches how to make informed choices in the use and conservation of natural resources by
recycling or reusing recyclable materials. Teaches about Earth's renewable and nonrenewable
resources and the importance of conservation. Explores the characteristics of natural resources
that make them useful products. Describes the effects of conservation and pollution in shaping
the landscape, and the impact on habitats and wildlife as well as air and water quality. Identifies
alternative energy resources such as wind, solar, hydroelectric, geothermal, and biofuels.
6th Grade
Discusses appropriate use and conservation of resources, including disposal, reuse, or recycling
of materials. Teaches about Earth's renewable and nonrenewable resources and the importance
of conservation. Identifies the location of renewable and nonrenewable natural resources and
how extracting those resources has modified the physical environment. Shows alternate energy
sources such as coal, oil, natural gas, nuclear power, biomass, wind, hydropower, geothermal,
and solar power.
7th Grade
Discusses appropriate use and conservation of resources, including disposal, reuse, or recycling
of materials. Explains the effects of human activity on groundwater and surface water in a
watershed. Relates recycling practices to individual and community health such as climate
change. Teaches about the decay of biomass in the process of composting.
8th Grade
Discusses appropriate use and conservation of resources, including disposal, reuse, or recycling
of materials. Explains how human activities such as runoff, artificial reefs, or use of resources
have modified ocean systems. Teaches about the decay of biomass in the process of composting.
Relates recycling practices to individual and community health such as climate change.
High School — General
Discusses appropriate use and conservation of resources, including disposal, reuse, or recycling
of materials. Investigates causes and types of air, soil, and water pollution and the effect on
W
global warming. Explores the use of renewable and nonrenewable resources and the importance
of conservation. Explains the impact of waste management methods such as reduction, reuse,
recycling, and composting on resource availability. Describes the effects of conservation and
pollution in shaping the landscape, and the impact on habitats and wildlife as well as air and
water quality. Learn about the cost of manufacturing materials from raw resources versus from
recycled materials.
High School — Environmental Sciences
Discusses appropriate use and conservation of resources, including disposal, reuse, or recycling
of materials. Explores a timeline of the history of environmental science and contributions of
scientists. Investigates causes and types of air, soil, and water pollution and the effect on global
warming. Explores the use of renewable and nonrenewable resources and the importance of
conservation. Explains the impact of waste management methods such as reduction, reuse,
recycling, and composting on resource availability. Describes the effects of conservation and
pollution in shaping the landscape, and the impact on habitats and wildlife as well as air and
water quality. Teaches about the decay of biomass in the process of composting. Learn about the
cost of manufacturing materials from raw resources versus from recycled materials. Explore
careers in environmental sciences.
For each age group, we devised activities for the students, allowing them to use and exercise the
knowledge just acquired about recycling. The groups are divided by grade and will focus on the
specific knowledge brought to them in the presentation.
. r,
Hands -On Sorting
Grade range: Pre -K — First Grade
Students will gather in a group and take turns choosing recyclable items from each category
(paper, plastic, etc.) and placing them in a small blue recycle bin. Activity helps reinforce what
kinds of items can be recycled.
Recycling Trivia
Grade range: Second Grade — Eighth Grade
Students are divided into teams to answer questions based on the material covered in the
recycling presentation. Points are earned to determine a winning team. Questions developed
based on grade level.
Recycling Bingo
Grade range: Second Grade — Fifth Grade
Students receive a bingo card with a mixture of blue cart accepted and non -blue cart accepted
materials. The presenter flashes image on screen and explains whether items are acceptable or
not acceptable in the blue cart. Activity helps to reinforce the DOs & DON'Ts of recycling.
Recycling Relay
Grade range: Kinder — Fifth Grade Location: outdoors or inside gyro
Students line up and run, one at a time, to where the recycling and garbage containers are located
(side by side). Students sort the items on the ground, then run back to the starting line. Each
student sorts one item at a time until all items are sorted.
M.
Recycling Jeopardy!
Grade range: Second Grade — Fifth Grade (large groups only) Sixth Grade — Twelfth Grade
(any size group)
Students are divided into groups and a representative from each group is selected to compete in
an official. Jeopardy! game with question categories about recycling. The student / group with the
highest score will win. Questions developed based on grade level.
Phase 2
In preparation for the distribution of the organic bins, we recommend that the city council send
out the following PSA to ensure that the public is notified of the newest addition to the Schertz
municipal waste program. Like phase 1, this PSA will be sent out with a utility bill, posted on the
website, and made available to the public at town gatherings. Once again, the city of Schertz is
recommended to ask Bexar Waste to pitch in on the cost, estimated to be about $5,000, since the
recycling of organic material is beneficial to them as well.
What Goes in the Organic Bin
Our city has recently entered the second phase of our recyclable program, the organic phase. You
will soon receive an organic waste bin to compliment your recently added recycling bin. Though
they are both beneficial to the environment and their utilization can save you money, what goes
in them is very different. Below is a list of what can go in the new organics bin that's on its way
to you!
Food
Vegetables and fruit
• Prepared foods
• Baked goods
• Cereal, flour, grains, pasta, and rice
FA
• Eggs and eggshells
• Daisy products
• Meat, fish, bones and nuts
Food - Soiled Paper
• Paper towels and napkins
• Paper plates
• Coffee filters and tea bags
• Paper bags
• Paper trays
Leaf + Yard Waste
• Leaves
• Grass clippings
• Garden trimmings
• Plants
NR
RETWOM
Alamo Area Council of Governments. (n.d.). AACOG Region 2000 - 2010 Population Change.
Retrieved May 2, 2017, . from https : / /www.aacog.com /DocumentCenter /Home /View /238
Alamo Area Council of Governments. (n.d.). Who We Are. Retrieved May 02, 2017, from
https: / /www.aacog.com /27 /Who -We -Are
Anderson, P., Center for a Competitive Waste Industry, Gary Liss & Associates, & Steven
Sherman. (2005). Beyond Recycling: Composting - Food Scraps and Soiled Paper.
Retrieved May 5, 2017, . from https: / /archive.epa.gov /region9 /organics /web /pdf /2-
pager_final.pdf
Baugh, J. (2014, August 28). Variable -rate pricing for trash services headed to S.A. Retrieved
May 5, 2017, from http: / /www.mysanantonio.com /news /local /article/
City Manager. (n.d.). Retrieved May 09, 2017, from http://schertz.com/?page—id=244
City of Schertz. (n.d.). City of Schertz Recycling Program. Retrieved May 2, 2017, . from
http:/ /schertz.com/wp - content/uploads /2011 /05 /recyclingprogram.pdf
Costco Wholesale. (n.d.). Copy and Multipurpose Paper. Retrieved May 06, 2017, from
https: / /www.costco.com /copy - multipurpose- paper.html
David Bodamer I Apr 28, 2017. (2017, . April 28). Republic Services Posts Strong Earnings
Growth. Retrieved May 10, 2017, from http: / /www.waste360.com /financials /republic-
services- posts- strong - earnings- growth
Environmental Protection Agency. (n.d.). Organics: Compost. Retrieved May 05, 2047, . from
https: / /archive.epa.gov /region9 /organics /web /html /index- 3.html
Faculty Biographies. (n.d.). Retrieved May 3, 2017, from http: / /txemsa.com /wp-
content/uploads /201.5 /1.0 /Bios- EMS - EVOLUTION- 2016.pdf
ME
Mayor Michael Carpenter. (n.d.). Retrieved May 09, 2017, from
http://schertz.com/?page_id=444
New Earth Compost. (n.d.). New Earth Compost: About Us. Retrieved May 05, 2017, from
http: / /www.newearthcompost.com /about -us
North Central Texas Council of Governments. (n.d.). 2010 Census Population by Race and
Hispanic Origin and Occupancy Status for North Central Texas Region. Retrieved May
02, 2017, . from http: / /www.nctcog.org /ris/ census /2010 /PL.asp ?Geo= region
North Central Texas Council of Governments. (2011, . August). North Central Texas Council of
Governments: Regional Recycling Rate Update. Retrieved May 2, 2017, from
http:// www. nctcog. org /envir /SEELT /reductionINCTCOG Regional_Recycling_Update_
FINAL 0831II.pdf
Taylor, M. (2017, . February 15). Making Money on Organic Trash. Retrieved May 05, 2017,
from http: / /www.leonardhc.com/ making - money -on- organic- trash/
Texas Commission on Environmental Quality. (2014, October). Municipal Solid Waste in Texas:
A Year in Review - FY 2013 Data Summary and Analysis (Rep.). Retrieved May 2,
2017, from Texas Commission on Environmental Quality website:
https://www.tceq.texas.gov/assets/public/comm—exec/pubs/as/I 87_14.pdf
Texas Commission on Environmental Quality. (2015, October). Municipal Solid Waste in Texas:
A Year in Review - FY 2014 Data Summary and Analysis (Rep.). Retrieved May 2,
2017, from Texas Commission on Environmental Quality website:
https://www.tceq.texas.gov/assets/public/comm—exec/pubs/as/I 87-15.pdf
Texas Commission on Environmental Quality. (2016, . October). Municipal Solid Waste in Texas:
A Year in Review - FY 2015 Data Summary and Analysis (Rep.). Retrieved May 2,
5
2017, . from Texas Commission on Environmental Quality website:
https://www.tceq.texas.gov/assets/public/comm—exec/pubs/as/I 87-16.pdf
The Commonwealth of Massachusetts Department of Environmental Protection, & Lambert, J.
(2004, January). Pay -As- You - Throw: An Implementation Guide for Solid Waste Unit-
Based Pricing Programs. Retrieved May 5, 2017, from
http: / /www.mass. gov /eea /docs /dep /recycle /reduce /m- thru- x /pguide04.pdf
United States Environmental Protection Agency. (2016, December). Advancing Sustainable
Materials Management: 2014 . Tables and Figures. Retrieved May 5, 2017, from
https://www.epa.gov/sites/production/files/2016-
11 /documents /201.4_smm tablesfigures_508.pdf
United States Environmental Protection Agency. (2016, December 01). Zero Waste Case Study:
Renton, WA. Retrieved May 09, 2017, . from https: / /www.epa.gov /transforming- waste-
tool /zero - waste- case - study - renton -wa
United States Environmental Protection Agency. (2016, December 01). Zero Waste Case Study:
San Francisco, CA. Retrieved May 09, 2017, from https:/ /www.epa.gov /transforming-
waste- tool/zero- waste - case - study- san- francisco -ca
United States Environmental Protection Agency. (2017, . May 08). Zero Waste Case Study:
Austin, TX. Retrieved May 09, 2017, from https: / /www.epa.gov /transforming- waste-
tool / zero - waste -case- study - austin -tx
University of Massachusetts Office of Waste Management. (n.d.). How the UMass Composting
System Works. Retrieved May 1.0, 2017, . from
http: / /www.umass. edu /wastemanagement/how- umass- composting- system -works
..,
Vaidyanathan, G., & C. (2015, December 22). How Bad of a Greenhouse Gas Is Methane?
Retrieved May 05, 2017, from https://www.scientificamerican.com/article/how-bad-of-a-
greenhouse-gas-is-methane/
Vermont Agency of Natural Resources. (2014). Variable Rate Pricing (aka unit-based pricing)
Guide and Sample Ordinance. Retrieved May 5, 2017, from http://cswd.net/wp-
content/uploads/2014/1 0/Variable-Rate-Pricing-GuideOrdinance.2014.pdf
5YA
CITY COUNCIL MEMORANDUM
City Council Meeting: May 23, 2017
Department:
Subject:
City Secretary
Minutes
Agenda No. 1
The City Council held a Regular Meeting on May 9, 2017, and a Special Meeting on May 16,
2017.
FISCAL IMPACT
None
RECOMMENDATION
Staff recommends Council approve the minutes of the Regular meeting of May 9, 2017 and the
minutes of the special meeting of May 16, 2017.
ATTACHMENTS
Regular Meeting of May 9, 2017 minutes
Special Meeting of May 16, 2017 minutes
MINUTES
REGULAR MEETING
May 9, 2017
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on May 9,
2017, at 6:00 p.m. in the Hal Baldwin Municipal Complex Council Chambers, 1.400 Schertz Parkway,
Building #4, Schertz, Texas. The following members present to -wit:
Mayor Michael Carpenter
Councilmember Mark Davis
Councilmember Scott Larson
Councilmember Angelina Kiser
Staff Present:
City Attorney Charles Zech
City Secretary Brenda Dennis
Call to Order — City Council Regular Session
Mayor Pro -Tem
Councilmember
Assistant to
Mayor Carpenter called the meeting to order at 6:00 p.m.
Thompson
rawford
Manager Sitrah,Gonzalez
and State of Texas.
the pledges of allegiance to the
Mayor Carpenter recognized Executive Director Brian .lames who has the helm this evening in the
absence of Mr. Kessel.
•Announcements of upcoming City Events (B. James /D. Wait /S. Gonzalez)
Assistant, to the City Manager Sarah Gonzalez provided the following announcements:
Thursday May 11
Northeast Partnershiti Meeting 11:30 a.m.
Olympia Hills Golf and Conference Center
TML Region 7 Meeting 5:30 p.m.
Live Oak Hilton Garden Inn, 81.01 Pat Booker Road
May 15 -19
Annual Food Drive for Randolph Area Christian Assistance Program _ (RACAP)
Drop -off locations Schertz, Cibolo, Garden Ridge, Universal City and Selma City Halls
5 -9 -2017 Minutes Page - 1 -
Tuesday, May 16
Chamber Luncheon 11:30 a.m.
Schertz Civic Center
Council on the Go Town Hall Meeting 6:30 p.m.
Norma J. Paschal Elementary Cafeteria
Friday, May 19
Park Tour -North Route 1:00 -5:00 p.m. (North of Elbel Ro
Meet at Council Chambers Parking Lot — RSVP with City
Saturday, May 20
Park Tour -South Route 8:00 a.m.- noon. (South of
Meet at Council Chambers Parking Lot — RSVP wi
May 14 -20 National. Police Week
Wednesday, May 17
Police Memorial 10:00 a.m.
Ceremony will take place in front of the Municipal Cout
The Schertz and Cibolo Police Department will host a e
men and women in law enforcement who have made the
Friday, May 19
1 ally 1vu1- l�vl�l
Meet at Council
Saturday, May
Park Tour -South
Meet at Council
1 �
y to honor those
to sacrifice.
ers Parking Lot =RSVP with City Secretary's Office
8:00 .m.- noon. (South of.Elbel Road)
ers Parking Lot — RSVP with City Secretary's Office
1T !'11111ua11111gy vyllu — /.JV x.111. — V.VV j2.111.
Hosted by DNRBH &Z. Held at Texas State University Student Center, 301 Student Drive
Tuesday, May 23
City Council Meeting 6:00 p.m.
Council Chambers
Wednesday, May 24
Ribbon Cutting McGarrell Orthodontics 4:30 p.m.
6051 FM 3009 # 248
5 -9 -2017 Minutes Page - 2 -
CVLGC Joint Budget Workshop 6:30 p.m.
Schertz Civic Center Bluebonnet Hall
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 (B. James)
No announcements were provided.
Hearing of Residents
This time is set aside for any person who wishes to address the City Council. Each parson, should fill
out the speaker's register prior to the meeting. Presentations should be limited to amore 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, irr, slanderous remain s 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 respo se to any inquiry; a recitation of existing policy in response to an
inquiry, and /or a proposa to place the item on a future agenda. The presiding officer, during the
Hearing of Residents potion of the "agenda, will call on those persons who have signed up to speak in
the order they have registered.
Mayor Carpe]
• Ms
Can
fiir
2:0
Roc
Presentation
Laura Tc
forward
ers In uL
they are
Curtis A
• Presentation re
Gonzalez)
olunteer Recruitment Coordinator for CASA of Central Texas, who
ng information on CASA and the roles volunteers play and the need
dalupe County. She stated that on May 1.3tt' and May 20th, 9:00 a.m. to
costing a Sehertz training class, at the Sehertz GVEC Community
enue. She encourages those to get involved and become a volunteer.
the Hal Baldwin Scholarship Award Recommendations. (B. James /S.
Mayor Carpenter recognized Assistant to the City Manager Sarah Gonzalez who stated that
back in February Council appointed the members to serve on the scholarship committee. At
the end of April, they closed out the application process. Six applications were received. The
Hal Baldwin Scholarship Committee met today to go over the six applications and they
concluded and made a recommendation to Council that a full scholarship in the amount of
5 -9 -2017 Minutes Page - 3 -
$5,000 be awarded to Ms. Grace Harper of St. John Paul II Catholic High School, and who
was the first student to win from this school. Ms. Gonzalez stated on May 23, 2017 the
Committee and Council will award and present the scholarship.
• Presentation by DXE Medical — AED Donation to BVYA (D. Wait /J. Mabbitt /K. Burnam)
Mayor Carpenter stated that this has been postponed to the May 23rd meeting.
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
Dennis)
Mayor Carpenter
agenda items 1-2.
3.
nests. and Ann
4. Council mein'
merits of the
the requested
the consensus
agenda.
by
were made.
by the Council with one
emoved from the Consent
of May 2",,2017. (J. Kessel/B.
ntments — Consideration and/or
regular member to the Historical
c moved, seconded by Mayor
The vote was unanimous with
errez, Larson, Thompson, Kiser
who provided the roll call votes for
to request that items be placed on a future agenda. No discussion of the
may be taken at this time. Should a Council. Member oppose placement of
i on a future agenda, the Mayor, without allowing discussion, shall ask for
the other City Council members to place or not place the item on a future
Mayor Carpenter recognized Councilmember Kiser who asked for information regarding the
current employee pension plan. Executive Director Brian James stated that Finance Director
James Walters will be presenting this at the June 6th Council meeting under the Financial
report.
5 -9 -2017 Minutes Page - 4 -
5. 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 Davis who
Department, Public Works and other departments and
Where You Live cleanup event held this past Saturday.
Mayor Carpenter recognized Councilmember Thompsor
Recreation Department on the park dedication cerciuo' ny
that Parks Director Chuck VanZandt mentioned that we s1
He also stated that until you walk there and see" what it is
impact. He believes that it is the best $90;60{0 the City
benefit our residents greatly.
ATTEST:
Brenda Dennis, City Secretary
- NO DISCUSSION TO OCCUR
Noman Hcillering Creek Sewer Project. (B. James /K. Woodlee)
Mayor Carpenter adjourned the meeting at 6:14 p.m.
5 -9 -2017 Minutes Page - 5 -
Michael R. Carpenter, Mayor
MINUTES
SPECIAL TOWN HALL MEETING
May 16, 2017
A Special Town Hall Meeting was held by the Schertz City Council of the City of Schertz, Texas, on
May 16, 2017, at 7:00 p.m., in the Norma J. Paschal Elementary Cafeteria, 590 Savannah Drive,
Schertz, Texas. The following members present to -wit:
Mayor Michael Carpenter
Councilmember Mark Davis
Councilmember Scott Larson
Councilmember Angelina Kiser
Staff Present:
Executive Director Brian. James
Executive Director Kyle Kinateder
City Secretary Brenda Dennis
Fire Chief David Covington
City Engineer Kathy Wood] ee
GIS Coordinator Tony McFalls
Finance Director James Walters
Municipal Court Administrator Patty Veliz
Public Affairs Director Linda Klepper
Director of Planning /Comm. Dev.Lesa Wood
Marketing /Comm. Mgr. Melissa Geedman
Chief Building Official Gilbert,Dur4nt
Environmental Health Manager Jesse Hamiltc
Deputy Marshal Steve,Pulaski
Parks & Rec Director Chuck VanZaudt
Sr. Admin. Asst. Sandy Bryant
Sr. Support System Engineer Eric, -Iaugeri
Meet and Greet (6:30 D.M. to 7:
Mayor Carpenter called the
011
Kiser)
Mayor Pro -Tem Cedric Edwards
Councilmember Ralph Gutierrez
Councilmember Robin Thoinpso
Councilmember crt,Crawford
ary Donna Schmoekel
orks Director Jimmy Hooks
Melissa Uhlhorn
Director Chad Garcia
,jer Sharma O'Brien
Rodolfo Rosales
enior Planner Bryce Cox
'ode Enforcement Officer Thomas Brooks
leputy Marshal William Sutton
,,sst."Parks & Rec Director Lauren Shrum
MS Operations Mgr. Toni Bradford
'lient Services Tech I Ray Nichols
to order at 7:00 p.m.
of Allegiance to the Flats of the United States. (Councilmember
Councilmember Kiser provided the opening prayer and led everyone in the pledge of allegiance to the
flags of the United States and Texas.
Welcome and Introduction
• Mayor Michael Carpenter
05 -16 -2017 Minutes
Mayor Carpenter welcomed everyone and encouraged the attendees to complete their
comment cards at the end of the meeting and drop them off with a staff member. He provided
a verbal outline of how the evening events would be presented.
Mayor Carpenter recognized Mayor Pro -Tem Cedric Edwards and stated that this concept and
idea was brought forward by him to bring these types of meeting out to the citizens.
Mayor Pro -Tem Edwards came forward expressing his appreciation for everyone attending
and recognized all the staff members present that made this happen. He welcomed everyone
in attendance.
Presentations re2ardinl! the specific topics:
• Central Schertz Development Updates.
Mayor Carpenter recognized Director of Ply
who provided information on updated plans
following:
Residential Development:
- Approximately 67 acres of new,
construction.
- A total of 176 new single famil
- Projects include: Misty Woods,
• Bindseil F
- Includes 84 Single Family
and Community Development Lesa Wood
s area: Information present d included the
lots.
approved or under
Farms
Lots, ultimate extension of Live Oak
• Misty Wands Subdivision and Mesa teaks Estates Subdivision:
tisty�Woods is, 36 Single Family Residential. Lots
-
Mesa Oaks Estates ,s 56 Single Family Residential Lots
• Brake Check
• Schertz Parkway Medical Office — Savannah Drive & Schertz Parkway
• Schertz Business Park
• Starbucks & Retail Space — Elbel. Road & FM 3009
• Murphy Express — Elbel Road & FM 3009
• Staybridge Suites
05 -16 -2017 Minutes
• Candlewood Suites
• Focal. Point Vision
• Park Updates.
Mayor Carpenter recognized Parks Director Chuck VanZandt and Assistant Parks Director
Lauren Shrum who provided information regarding the following:
Schertz Aquatics Center
Pickrell Park Pool Improvements
Heritage Oaks Parks — ] ] 700 Longleaf Parkway
Community Playscape Restroom — Schertz Playscape.
Rhine Valley Park — 9958 Mulhouse Drive
Palm Park, 200 Block of FM 78
No Name Park — 3100 Block of Schertz Parkway
Hilltop Park — 6300 Block of Jimmy Walker
Homestead Park
Program Updates
• Trunk or Treat & Movie in the
• 2017 Music & Movies in thet
- June 3 — Pirates! T
October 28 — Hotel.
December 9 — Dr.
Crescent Bend Nature Park Proura
Awards Received:
construction, trail construction, and bike lane striping (6.97
has been recommended for funding by the MPO's Bicycle and
ty Advisory Committees
Next steps include MPO presentation of the projects at the Transportation. Policy
Board meeting on Monday May 22, a funding recommendation at the TAC meeting on
d
June 2 , and Transportation Policy Board action on the funded project at their meeting
on Monday June 26, 2017.
Mayor Carpenter took the opportunity to introduce the Councilmembers who were present; each
Councilmember stood and was recognized.
05 -16 -2017 Minutes
• Public Safety Facility Update (Fire Station #3).
Mayor Carpenter recognized Fire Chief David Covington who provided information regarding
proposed future facilities, existing coverage areas and information regarding the new Fire
Station No. 3 and its proposed coverage area. Chief Covington also explained that Fire
Station No.3 will have community rooms.
• Schertz Parkway Repair Update.
Mayor Carpenter recognized City Engineer Kathy Woodlee who provided information
regarding Schertz Parkway improvements — Maske Road to Liv teak Road.
Points of Interest included:
Current Project Schedule:
✓ 50% Design — mid April 2017
• 1.00% Design- mid Mai 2017
• Construction Start,- Summer 2017
• Construction Period ,6-'9 months -- complete Spring 2018
• ,,,FM Road Upda
City Engineer who provided information regarding the
FM 1103 Schertz:
• Two Projects
- Bridge over IH 35 — replace existing bridge, construct new turnarounds, and
intersection operational improvement.
- Project design complete
- TxDOT scheduling construction to begin springs /summer 2017
- Look for updates from City regarding construction schedule, possible rerouting
of traffic
• 1H 35 to Old Wiederstein Road — expand to 4 lanes with medians, turn lanes, sidewalk,
and bike lanes.
05 -16 -2017 Minutes
FM 1103 Schertz:
- TxDOT currently completing environmental clearance
- Right of Way acquisition process (12 -18 months)
- Utility relocations
- Construction
FM 1518 IH 10 to FM 78:
- City of Schertz Bond - $5 Million
- TxDOT Contribution - $5 Million
- Alamo Area Metropolitan Planning Organi
(AAMPO) — Federal. Funding - $9.5 Millio
- Project currently programmed for 1021 - $f
- Surveying and conceptual Design Process
- Strategic improvements (key intersections)
Traffic Signal Improvements:
- New signal — Schaeffer Road at FM 151
Installed, flash mode corning soon, fully
- New Signal —Deer Creel.at
Fully Operational
9.5 Million
- Existing Signal — East Live Oak at FM 3009
- FM
er Improvem j
- FM
completed
-2 weeks later
of signals during train passing
Completing handrails and cleaning up
Be on the_lookout for a celebration event
City Council will host a citizens' communication meeting to hear citizen issues and provide general
policy and factual information as to issues brought up by citizens. No action shall be taken except to
place an item on a future agenda as appropriate.
Mayor Carpenter recognized the following citizens who spoke:
• Ms. Beverly Landry, 3601 Macon Avenue who addressed concerns regarding trash on
Schertz Parkway. She wanted to know who is in charge of picking up the trash. Executive
Director Brian James addressed her concerns and let her know that he would look into it.
05 -16 -2017 Minutes
• Ms. Cynthia Patterson, 3533 Peachtree Lane who expressed concerns regarding the
intersection of Woodland Oaks and Schertz Parkway.
• Mr. Rodney Phillips, 2441 Woodbridge Way who addressed concerns regarding traffic
lights.
• Ms. Helen Lafitte, Schertz Police department who invited everyone to join them tomorrow
to recognize the fallen officers at a Police Memorial being held at 1.0:00 a.m. at the
Schertz Civic Center.
• Mr. Edward Fair, 2584 Cove Trail who addressed concerns regarding traffic visibility
obstructions.
As there were no further questions or comments, Mayor. Carpenter thanked the residents for
attending /participating and all the City Staff members for"'i'llakitig this a very successful meeting. He
stated members of Council and staff are available should the residents wish to speak to them. He also
stated that he is placing his cards on the back table and encouraged those to reach out to' him.
Mayor Carpenter adjourned the meeting at 8:05 p.m.
R. Carpenter, Mayor
ATTEST:
Brenda Dennis, City S
05 -16 -2017 Minutes
Agenda No. 2
CITY COUNCIL MEMORANDUM
City Council Meeting: May 23, 2017
Department: Development Services
Subject: Application for Landmark or Heritage
Neighborhood Designation —
Consideration and /or action of the
designation request for 7720 Trainer Hale
Road. (C. Gould /D. Weirtz)
Section 21.4.9 Designation of Landmark Properties and Heritage Neighborhoods of the City
of Schertz' Unified Development Code (UDC) establishes the requirements and process for
designating a property as a Schertz Landmark Property. The property being proposed for
designation is 7720 Trainer Hale Road. This property was nominated by the Schertz Historical
Preservation Committee (SHPC) as a Landmark Property and was recommended for
designation by the SHPC on April 27, 2017.
The Landmark Property designation does not trigger any additional. City development
regulations or restrictions.
Community Benefit
To recognize and encourage the preservation of those areas of specific buildings or structures
of significance to the City.
Summary of Recommended Action
Staff recommends the Designation of 7720 Trainer Hale Road as a Landmark Property.
FISCAL IMPACT
RM
RECOMMENDATION
Designate 7720 Trainer Hale Road as a Landmark Property
ATTACHMENTS
7720 Trainer Hale Road Application for Landmark Property
Schertz Historical Preservation Committee
Application for Landmark Property or Heritage Neighborhood
Designation
This application is to serve as the means by which citizens may apply for approval to
have a structure, residence, neighborhood, or designated area within the city limits and /or
extra territorial jurisdiction (ETJ) of Schertz, Texas designated as either a "Landmark"
property or a Heritage Neighborhood. "Landmark" shall mean any site or structure,
designated by the Schertz Historical Preservation Committee (Commission) (SHPC) and
declared as such by a majority vote of the Schertz City Council that is of exceptional
cultural, archaeological, or architectural significance. "Heritage Neighborhood" shall .
mean a significant concentration, linkage, or continuity of sites or structures united
architecturally, archaeologically, or culturally, by plan or physical development.
NAME OF APPLICANT / NOMINATOR: Schertz Historical Preservation. Committee
ADDRESS OF APPLICANT / NOMINATOR: 1.400 Schertz Parkway, Schertz, Texas
78154
TELEPHONE NUMBER: 210- 619 -1100
NOMINATION FOR: Landmark Property
NOMINEE: 7720 Trainer Hale Road, Schertz, Texas
SECTION A. DESIGNATION REQUEST
STATEMENT OF JUSTIFICATION: (Source: Research survey conducted by members
of the Farm and Ranch Committee of the Bexar County Conservation Society)
In the spring of 1.850, Karl Josef Stapper bought a farm along the banks of the Cibolo
Creek (now Schertz, Texas). He bought the farm (1,326 acres) from Mr. William Van
Marschall. William Puetz (aka: Putz) bought 665 acres of that land from Mr. Marschall.
Puetz decided to return to his native Germany and in 1852 sold his acreage to
PeterWallerath (aka: Wallrath). Puetz had begun construction on the home (now 7720
Trainer Hale Road) prior to 1852 and Wallerath finished the construction after purchasing
the property. The Wallerath family maintained ownership of the home from 1852 to
1925 at which time the family (Paul and Agnes —Son and daughter -in -law of Peter) sold it
to Oscar and Agnes Stapper. Oscar and Agnes's daughter(Meta) and her husband (Arno
Fritz) purchased the house in 1954 and owned it until 1994 when it was sold to the
Kalinowski family (Michael & Janet). The Kalinowski family sold the property to the
Cibolo Creed Municipal Authority (CCMA) in 2014. The CCMA currently owns the
property.
Schertz Historical Preservation Committee
Application for Landmark Property Designation Page 2
The Walerath and Stapper families were among the first settler families to establish
themselves in the Bexar County area (now Schertz, Texas) at about the 1850s.
The home's age and its ownership by original settler families makes it a significant
historical structure worthy of designation as a Schertz Landmark Property.
SECTION B. COMMITTEE ACTION — April 27, 2017
X APPROVED ❑APPROVED WITH MODIFICATION ❑DENIED
SECTON C. CITY COUNCIL ACTION
ATTACHMENTS:
1. Photos of home at 7720 Trainer Hale Road, Schertz, Texas
14
Nomination for Designaiton as Schertz Historic Landmark Property — 2217 Trainer
Hale Road, Schertz, Texas
In the spring of 1850, Karl Josef Stapper bought a farm along the banks of the
Cibolo Creek (now Schertz, Texas). He bought the farm (1,326 acres) from Mr.
William Van Marschall. William Puetz (aka: Putz) bought 665 acres of that land
from Mr. Marschall. Puetz decided to return to his native Germany and in 1852
sold his acreage to PeterWallerath (aka: Wallrath). Puetz had begun construction
on the home (now 7720 Trainer Hale Road) prior to 1852 and Wallerath finished
the construction after purchasing the property. The Wallerath family maintained
ownership of the home from 1852 to 1925 at which time the family (Paul and
Agnes —Son and daughter -in -law of Peter) sold it to Oscar and Agnes Stapper.
Oscar and Agnes's daughter(Meta) and her husband (Arno Fritz) purchased the
house in 1954 and owned it until 1994 when it was sold to the Kalinowski family
(Michael & Janet). The Kalinowski family sold the property to the Cibolo Creed
Municipal Authority (CCMA) in 2014. The CCMA currently owns the property.
The Walerath and Stapper families were among the first settler families to establish
themselves in the Bexar County area (now Schertz, Texas) at about the 1850s.
The home's age and its ownership by original settler families makes it a significant
historical structure worthy of designation as a Schertz Landmark Property.
Agenda No. 3
CITY COUNCIL MEMORANDUM
City Council Meeting: May 23, 2017
Department: Development Services
Subject: Application for Landmark or Heritage
Neighborhood Designation —
Consideration and /or action of the
designation request for 207 First Street.
(C. Gould /D. Weirtz)
Section 21.4.9 Designation of Landmark Properties and Heritage Neighborhoods of the City
of Schertz' Unified Development Code (UDC) establishes the requirements and process for
designating a property as a Schertz Landmark Property. The property being proposed for
designation is 207 First Street. This property was nominated by the Schertz Historical
Preservation Committee (SHPC) as a Landmark Property and was recommended for
designation by the SHPC on April 27, 2017. .
The Landmark Property designation does not trigger any additional. City development
regulations or restrictions.
Community Benefit
To recognize and encourage the preservation of those areas of specific buildings or structures
of significance to the City.
Summary of Recommended Action
Staff recommends the Designation of 207 First Street as a Landmark Property.
FISCAL IMPACT
RM
RECOMMENDATION
Designate 207 First Street as a Landmark Property
ATTACHMENTS
207 First Street Application for Landmark Property
Schertz Historical Preservation Committee
Application for Landmark or Heritage Neighborhood Designation
This application is to serve as the means by which citizens may apply for approval to
have a structure, residence, neighborhood, or designated area within the city limits or
extra territorial jurisdiction (ETJ) of Schertz, Texas designated as either a "Landmark"
Property" or a "Heritage Neighborhood ". "Landmark Property" shall mean any site or
structure situated within the City of Schertz or its ETJ, designated by the Schertz
Historical Preservation Committee (Commission) (SHPC) and declared by a majority
vote of the Schertz City Council to be representative of a period of importance to the
City's early development and/or representative of exceptional cultural, archaeological,
architectural or personal significance. "Heritage Neighborhood" shall mean any
significant concentration, linkage or continuity of sites or structures united by an early
City development period, architecturally, archaeologically, or culturally by plan or
physical development.
NAME OF APPLICANT / NOMINATOR: Schertz Historical Preservation. Committee
ADDRESS OF APPLICANT / NOMINATOR: 1.400 Schertz Parkway, Schertz, Texas
78154
TELEPHONE NUMBER: 210- 619 -1000
NOMINATION FOR: Landmark Property
NOMINEE: 207 First Street, Schertz, Texas
SECTION A. DESIGNATION REQUEST
STATEMENT OF JUSTIFICATION:
The exact date of construction for the Grapevine Fellowship Church Building at 207 First
Street, Schertz, Texas is unknown. What is known through photographic evidence (see
attached photos) is that the building and two others beside it were the first to be built on
the south side of First Street sometime prior to the turn of the 20th century (1.900). It is
the only building of the three still standing. The building was first known to be occupied
by the Gerlich, Schulz and Co. General. Merchandise Store. Mr. Emil. Gerlich, co-
ownerof the store served as the Schertz Postmaster from October 1914 to November 1938
(24 years). Gerlich's partner, William W. Schulz served as Schertz Postmaster from
December 1953 to March 1973 (20 years). The building was later used for different
purposes but most notably as the :Red and White Grocery owned and operated by Elgen.
Beck and his brother Arron Beck. Since 1992 the building has been owned by Mr. David
Post of San Antonio who has leases it to Juan Rodriquez for use as a non - denominational
church.
Schertz Historical Preservation Committee
Application for Landmark Designation - Page 2
STATEMENT OF JUSTIFICATION CONT.
The purpose for which the building has been used from its earliest beginnings through
today has made it an essential component to the development of the economic and social
structure of the Schertz community. Its ownership has been made up of citizens of
notable accomplishment and dedicated service to the community.
Based upon its age and purposeful service to the Schertz community the building is
deserving of designation as a City of Schertz Landmark Property.
SECTION B. COMMITTEE ACTION DATE: April 27, 201.7
SECTON C. CITY COUNCIL ACTION - DATE
❑APPROVE ❑APPROVE WITH MIDIFICATION
ATTACHMENT:
Photo of 207 First Street Building
Photo circa 1900 .
■t
❑DENIED
Photo circa 2017
Nomination for Designation as Schertz Historic Landmark Property — 207 First
Street Schertz Texas
The exact date of construction for the Grapevine Fellowship Church Building at
207 First Street, Schertz, Texas is unknown. What is known through photographic
evidence (see attached photos) is that the building and two others beside it were the
first to be built on the south side of First Street sometime prior to the turn of the
20' century (1900). It is the only building of the three still standing. The building
was first known to be occupied by the Gerlich, Schulz and Co. General
Merchandise Store. Mr. Emil. Gerlich, co- ownerof the store served as the Schertz
Postmaster from October 1914 to November 1938 (24 years). Gerlich's partner,
William W. Schulz served as Schertz Postmaster from December 1953 to March
1973 (20 years). The building was latter used for different purposes but most
notably as the Red and White Grocery owned and operated by Elgen Beck and his
brother Arron Beck. Since 1992 the building has been owned by Mr. David Post
of San Antonio who has leases it to Juan Rodriquez for use as a non-
denominational church.
The purpose for which the building has been used from its earliest beginnings
through today has made it an essential component to the development of the
economic and social structure of the Schertz community. Its ownership has been
made up of citizens of notable accomplishment and dedicated service to the
community.
Based upon its age and purposeful service to the Schertz community the building is
deserving of designation as a City of Schertz Landmark Property.
Agenda No. 4
CITY COUNCIL MEMORANDUM
City Council Meeting: May 23, 2017
Department: Finance
Subject: CONSIDERATION AND APPROVAL OF AN ORDINANCE
AUTHORIZING THE ISSUANCE OF "CITY OF SCHERTZ,
TEXAS COMBINATION TAX AND LIMITED PLEDGE
REVENUE CERTIFICATES OF OBLIGATION, SERIES 2017 ";
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
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
As stated in the December 20, 2016 Council meeting, it is the City's intent to issue Certificates
of Obligation :Bonds (CO) in the 2017 . year for street maintenance, to start building repairs and
renovations in the City Hall complex, parks trails and maintenance, renovation of the Senior
Center, and a fire apparatus for Station #3. By issuing bonds for these projects, the city will be
able to continue to grow its fund balance for future projects while taking advantage of lower
interest rates while they last.
Also included in this issuance proposal is the purchase of 2 ambulances for Emergency Medical
Services (EMS). These ambulances will keep the city's fleet reliable and safe when providing
service to the communities they serve. This proposal was approved during the 2016 -17 Budget
process. The ambulances plus equipment are estimated to cost $550,000 to purchase with an
annual debt payments estimated at $114,000. Originally planned as a separate Tax Note, a short
term debt instrument that the City uses to buy ambulances, by combining it with the CO bonds
the City can save an estimated $10,000 in issuance costs. The total EMS ambulance fleet is made
up of 9 vehicles with an estimated 5 year useful life. This averages out to 2 ambulances being
purchased each year, with 1 year of only 1 being purchased.
In order to sell Certificates of Obligation Bonds (CO), City Council must have approved to
publish a Notice of Intent in our paper of record for two consecutive weeks. The City must wait
30 days after the first notice to review the bids for the sale and to take final action to approve the
sale of the bonds. Council approve the notice on April l lth and the notices were published in the
San Antonio Express News on April 19th and April 26th. Once the projects are ready to begin,
Staff will return to council once again to approve the construction contracts and to move forward
with these items.
Goal
To provide improved infrastructure for the citizens through roadway maintenance and
renovations. To provide a safer working environment, with additional space to accommodate
staffing needs to service a growing population through city buildings remodels and maintenance.
To provide matching funds for the parks trails grant that will improve quality of life for our
citizens. To provide for the funding for a fire apparatus for Station #3, which will reimburse the
General Fund for fronting the purchase as authorized on December 20, 2016. . To continue to
provide safe and reliable EMS service through the replacement of aging ambulances.
FISCAL IMPACT
The Ordinance authorizes the sale of Certificates of Obligation in an amount not to exceed
$5,600,000 for the purposes of making street and drainage repairs, making repairs to municipal
buildings including buildings within the Municipal Complex and the Senior Center, the purchase
of fire- fighting apparatus and making park improvements including the construction of walking
trails. Should the CO's be approved, along with the GO Bond, it is estimated that there will be
little to no impact on the I &S Tax Rate of the City. Delivery of funds will occur on June 20th
Breakdown of the anticipated use of the bond proceeds are projected as follows:
$2,200,000 PCI Streets Funding (plus remainder from year 1 and year 2, $3.2 million total)
$ 700,000 Schertz Pkwy (plus remainder from 2009 bond, $1.5 million total)
$ 250,000 Senior Center Renovation (plus remainder from general fund, $750,000 total)
$ 175,000 City Building Maintenance and Repair
$ 75,000 City Building Remodel
$ 400,000 Fire Station 2 Repair
$ 250,000 Parks Trail Grant Match
$ 50,000 Parks Maintenance
$ 950,000 Fire Apparatus for Station 3
$ 550,000 Two Ambulances
While some of these items have been discussed at length, the prioritization of maintenance,
repairs and remodeling projects has not. Therefore, prior using the bonds funds for any of those
projects, staff will hold a City Council work session to receive direction from Council on
prioritization of those projects. On April 11, 2017 the City Council approved Resolution 17 -R -26
authorizing an amendment to the existing agreement with Thomas S Byrne, Ltd for
Construction Manager at Risk (CM @R) for repairs to Fire Station #2 and alterations to the
Senior Center.
1•
Staff recommends approving the issuance of Certificates of Obligation (along with the General
Obligation Bonds) to the low competitive bidder and to be delivered on June 20th.
ATTACHMENT(S)
Certificate Ordinance No. 17 -B -16
DRAFT 4/24/2017
ORDINANCE NO. 17 -B -16
AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY OF
SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE
REVENUE CERTIFICATES OF OBLIGATION, SERIES 2017";
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 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
WHEREAS, the City Council of the City of Schertz, Texas (the City) has caused notice
to be given of its intention to issue certificates of obligation in the maximum principal amount of
$5,600,000 for the purpose of paying contractual obligations of the City to be incurred for
making permanent public improvements and for other public purposes, to -wit: (1) constructing
street improvements (including utilities repair, replacement, and relocation), curbs, gutters, and
sidewalk improvements, including drainage incidental thereto; (2) designing, renovating,
repairing, and improving the City's Municipal Complex and the Senior Center; (3) purchase of
ambulances and Fire apparatus and constructing improvements to Fire Station No. 2; (4)
designing, constructing, renovating, improving, and equipping the City's parks and recreational
facilities, including the construction of new hike and bike trails; (5) the purchase of materials,
public safety equipment, supplies, equipment, machinery, landscaping, land, and rights -of. -way
for authorized needs and purposes relating to the aforementioned capital improvements; and (6)
the payment of professional services related to the design, construction, project management, and
financing of the aforementioned projects. This notice has been duly published in a newspaper
hereby found and determined to be of general circulation in the City, once a week for two (2)
consecutive weeks, the date of the first publication of such notice being not less than thirty (30)
days prior to the tentative date stated therein for the passage of the ordinance authorizing the
issuance of such certificates of obligation; and
WHEREAS, no petition protesting the issuance of the certificates of obligation described
in this notice, signed by at least 5% of the qualified electors of the City, has been presented to or
28181190.4
filed with the City Secretary prior to the date tentatively set in such notice for the passage of this
ordinance; and
WHEREAS, the City Council hereby finds and determines that the issuance of the
certificates of obligation, under the terms herein specified, is in the best interests of the City and
its residents; and
WHEREAS, the City Council hereby finds and determines that certificates of obligation
in the principal amount of $ described in such notice should be issued and sold at
this time; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT:
SECTION 1. Authorization - Designation - Principal Amount - Purpose. The
certificates of obligation of the City shall be and are hereby authorized to be issued in the
aggregate principal amount of AND
NO /100 DOLLARS ($ ), to be designated and bear the title of "CITY OF
SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE
CERTIFICATES OF OBLIGATION, SERIES 2017" (the Certificates), for the purpose of
paying contractual obligations of the City to be incurred for making permanent public
improvements and for other public purposes, to -wit: (1) constructing street improvements
(including utilities repair, replacement, and relocation), curbs, gutters, and sidewalk
improvements, including drainage incidental thereto; (2) designing, renovating, repairing, and
improving the City's Municipal Complex and the Senior Center; (3) purchase of ambulances and
Fire apparatus and constructing improvements to Fire Station No. 2; (4) designing, constructing,
renovating, improving, and equipping the City's parks and recreational facilities, including the
construction of new hike and bike trails; (5) the purchase of materials, public safety equipment,
supplies, equipment, machinery, landscaping, land, and rights -of -way for authorized needs and
purposes relating to the aforementioned capital improvements; and (6) the payment of
professional services related to the design, construction, project management, and financing of
the aforementioned projects, pursuant to the authority conferred by and in conformity with the
laws of the State of Texas, particularly the Certificate of Obligation Act of 1971, as amended,
Texas Local Government Code Section 271.041 through Section 271.064, Chapter 1502, as
amended, Texas Government Code, and the City's Home Rule Charter.
SECTION 2. Fully Registered Obligations - Authorized Denominations - Stated
Maturities - Interest Rates — Certificate Date. The Certificates are issuable in fully registered
form only; shall be dated May 15, 2017 (the Certificate Date) and shall be issued in
denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and the
Certificates shall become due and payable on February 1 in each of the years and in principal
amounts (the Stated Maturities) and bear interest on the unpaid principal amounts from the
Certificate Date, or from the most recent Interest Payment Date (hereinafter defined) to which
interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the
per annum rates, while Outstanding, in accordance with the following schedule:
28181190.4 -2-
Years of Principal Interest
Stated Maturity Amounts ($) Rates
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
The Certificates shall bear interest on the unpaid principal amounts from the Certificate
Date, or from the most recent Interest Payment Date (hereinafter defined) to which interest has
been paid or duly provided for, to Stated Maturity or prior redemption, while Outstanding, at the
rates per annum shown in the above schedule (calculated on the basis of a 360 -day year of
twelve 30 -day months). Interest on the Certificates shall be payable on February 1 and August 1
in each year (each, an Interest Payment Date), commencing February 1, 2018.
SECTION 3. Payment of Certificates - Paying Agent/Registrar. The principal of,
premium, if any, and interest on the Certificates, due and payable by reason of Stated Maturity,
redemption, or otherwise, shall be payable in any coin or currency of the United States of
America which at the time of payment is legal tender for the payment of public and private debts,
and such payment of principal of, premium if any, and interest on the Certificates shall be
without exchange or collection charges to the Holder (hereinafter defined) of the Certificates.
The selection and appointment of BOKF, NA, Austin, Texas (the
Paying Agent /Registrar) to serve as the initial. Paying Agent/Registrar, for the Certificates is
hereby approved and confirmed, and the City agrees and covenants to cause to be kept and
maintained at the corporate trust office of the Paying Agent/Registrar books and records (the
Security Register) for the registration, payment and transfer of the Certificates, all as provided
28181190.4 -3-
herein, in accordance with the terms and provisions of a Paying Agent /:Registrar Agreement,
attached, in substantially final form, as Exhibit A hereto, and such reasonable rules and
regulations as the Paying Agent /Registrar and City may prescribe. The City covenants to
maintain and provide a Paying Agent /Registrar at all times while the Certificates are
Outstanding, and any successor :Paying Agent /Registrar shall be (i) a national or state banking
institution or (ii) an association or a corporation organized and doing business under the laws of
the United States of America or of any state, authorized under such laws to exercise trust powers.
Such Paying Agent /Registrar shall be subject to supervision or examination by federal or state
authority and authorized by law to serve as a Paying Agent/Registrar.
The City reserves the right to appoint a successor Paying Agent /Registrar upon providing
the previous Paying Agent /Registrar with a certified copy of a resolution or ordinance
terminating such agency. Additionally, the City agrees to promptly cause a written notice of this
substitution to be sent to each Holder of the Certificates by United States mail, first - class postage
prepaid, which notice shall also give the address of the new Paying Agent /Registrar.
Principal of, premium, if any, and interest on the Certificates, due and payable by reason
of Stated Maturity, redemption, or otherwise, shall be payable only to the registered owner of the
Certificates appearing on the Security Register (the Holder or Holders) maintained on behalf of
the City by the Paying Agent /Registrar as hereinafter provided (i) on the Record Date
(hereinafter defined) for purposes of payment of interest thereon, (ii) on the date of surrender of
the Certificates for purposes of receiving payment of principal thereof upon redemption of the
Certificates or at the Certificates' Stated Maturity, and (iii) on any other date for any other
purpose. The City and the Paying Agent /Registrar, and any agent of either, shall treat the Holder
as the owner of a Certificate for purposes of receiving payment and all other purposes
whatsoever, and neither the City nor the Paying Agent /Registrar, or any agent of either, shall be
affected by notice to the contrary.
Principal of and premium, if any, on the Certificates shall be payable only upon
presentation and surrender of the Certificates to the Paying Agent /Registrar at its corporate trust
office. Interest on the Certificates shall be paid to the Holder whose name appears in the
Security Register at the close of business on the fifteenth day of the month next preceding an
Interest Payment Date for the Certificates (the Record Date) and shall be paid (i) by check sent
on or prior to the appropriate date of payment by United States mail, first -class postage prepaid,
by the Paying Agent/Registrar, to the address of the Holder appearing in the Security Register or
(ii) by such other method, acceptable to the Paying Agent /Registrar, requested in writing by the
Holder at the Holder's risk and expense.
If the date for the payment of the principal of, premium, if any, or interest on the
Certificates shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions
in the city where the corporate trust office of the Paying Agent /Registrar is located are
authorized by law or executive order to close, then the date for such payment shall be the next
succeeding day which is not such a day. The payment on such date shall have the same force
and effect as if made on the original date any such payment on the Certificates was due.
In the event of a non - payment of interest on a scheduled payment date, and for thirty (30)
days thereafter, a new record date for such interest payment (a Special Record Date) will be
28181190.4 -4-
established by the Paying Agent /:Registrar, if and when funds for the payment of such interest
have been received from the City. Notice of the Special Record Date and of the scheduled
payment date of the past due interest (the Special Payment Date - which shall be fifteen (15)
days after the Special Record Date) shall be sent at least five (5) business days prior to the
Special Record Date by United States mail, first -class postage prepaid, to the address of each
Holder of a Certificate appearing on the Security Register at the close of business on the last
business day next preceding the date of mailing of such notice.
SECTION 4. Redemption.
A. The Certificates stated to mature on February 1, 20_ are referred to herein as the
"Term Certificates ". The Term Certificates are subject to mandatory sinking fund redemption
prior to their stated maturities from money required to be deposited in the Certificate Fund for
such purpose and shall be redeemed in part, by lot or other customary method, at the principal
amount thereof plus accrued interest to the date of redemption in the following principal amounts
on February 1 in each of the years as set forth below:
Term Certificates
Stated to Mature
on February 1, 20
Principal
Year Amount ($)
*Payable at Stated Maturity.
The principal amount of a Term Certificate required to be redeemed pursuant to the
operation of such mandatory redemption provisions shall be reduced, at the option of the City, by
the principal amount of any Term Certificates of such Stated Maturity which, at least fifty (50)
days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City
and delivered to the Paying Agent /Registrar for cancellation, (2) shall have been purchased and
canceled by the Paying Agent /Registrar at the request of the City, or (3) shall have been
redeemed pursuant to the optional redemption provisions set forth below and not theretofore
credited against a mandatory redemption requirement.
B. Optional Redemption. The Certificates having Stated Maturities on and after
February 1, 2028 shall be subject to redemption prior to Stated Maturity, at the option of the
City, on February 1, 2027, or on any date thereafter, as a whole or in part, in principal amounts
of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and
by lot by the Paying Agent /Registrar), at the redemption price of par plus accrued interest to the
date of redemption.
C. Exercise of Redemption Option. At least forty -five (45) days prior to a date set
for the redemption of Certificates (unless a shorter notification period shall be satisfactory to the
28181190.4 -5-
Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of its decision to
exercise the right to redeem Certificates, the principal amount of each Stated Maturity to be
redeemed, and the date set for the redemption thereof. The decision of the City to exercise the
right to redeem Certificates shall be entered in the minutes of the governing body of the City.
D. Selection of Certificates for Redemption. If less than all Outstanding Certificates
of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent /Registrar
shall select at random and by lot the Certificates to be redeemed, provided that if less than the
entire principal amount of a Certificate is to be redeemed, the Paying Agent /Registrar shall treat
such Certificate then subject to redemption as representing the number of Certificates
Outstanding which is obtained by dividing the principal amount of such Certificate by $5,000.
E. Notice of Redemption. Not less than thirty (30) days prior to a redemption date
for the Certificates, a notice of redemption shall be sent by United States mail, first -class postage
prepaid, in the name of the City and at the City's expense, by the Paying Agent/Registrar to each
Holder of a Certificate to be redeemed, in whole or in part, at the address of the Holder appearing
on the Security Register at the close of business on the business day next preceding the date of
mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to
have been duly given irrespective of whether received by the Holder.
All notices of redemption shall (i) specify the date of redemption for the Certificates,
(ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount
to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv)
state that the Certificates, or the portion of the principal amount thereof to be redeemed, shall
become due and payable on the redemption date specified, and the interest thereon, or on the
portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the
redemption date, and (v) specify that payment of the redemption price for the Certificates, or the
principal amount thereof to be redeemed, shall be made at the corporate trust office of the Paying
Agent /Registrar only upon presentation and surrender thereof by the Holder.
If a Certificate is subject by its terms to redemption and has been called for redemption
and notice of redemption thereof has been duly given or waived as herein provided, such
Certificate (or the principal amount thereof to be redeemed) so called for redemption shall
become due and payable, and if money sufficient for the payment of such Certificates (or of the
principal amount thereof to be redeemed) at the then applicable redemption price is held for the
purpose of such payment by the Paying Agent /Registrar, then on the redemption date designated
in such notice, interest on the Certificates (or the principal amount thereof to be redeemed) called
for redemption shall cease to accrue and such Certificates shall not be deemed to be Outstanding
in accordance with the provisions of this Ordinance. This notice may also be published once in a
financial publication, journal, or reporter of general circulation among securities dealers in the
City of New York, New York (including, but not limited to, The Bond Buyer and The Wall Street
Journal), or in the State of Texas (including, but not limited to, The Texas Bond Reporter).
F. Transfer /Exchange of Certificates. Neither the City nor the Paying
Agent /Registrar shall be required (1) to transfer or exchange any Certificate during a period
beginning forty -five (45) days prior to the date fixed for redemption of the Certificates or (2) to
transfer or exchange any Certificate selected for redemption, provided, however, such limitation
28181190.4 -6-
of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance of a
Certificate which is subject to redemption in part.
SECTION 5. Execution - Registration. The Certificates shall be executed on behalf of
the City by its Mayor or Mayor Pro Tem under its seal reproduced or impressed thereon and
attested by its City Secretary. The signature of either of said officers on the Certificates may be
manual or facsimile. Certificates bearing the manual or facsimile signatures of individuals who
were, at the time of the Certificate Date, the proper officers of the City shall bind the City,
notwithstanding that such individuals or either of them shall cease to hold such offices prior to
the delivery of the Certificates to the Purchasers (hereinafter defined), all as authorized and
provided in Chapter 1201, as amended, Texas Government Code.
No Certificate shall be entitled to any right or benefit under this Ordinance, or be valid or
obligatory for any purpose, unless there appears on such Certificate either a certificate of
registration substantially in the form provided in Section 8C, executed by the Comptroller of
Public Accounts of the State of Texas or his duly authorized agent by manual signature, or a
certificate of registration substantially in the form provided in Section 8D, executed by the
Paying Agent /Registrar by manual signature, and either such certificate upon any Certificate
shall be conclusive evidence, and the only evidence, that such Certificate has been duly certified
or registered and delivered.
SECTION 6. Registration - Transfer - Exchange of Certificates - Predecessor
Certificates. The Paying Agent /Registrar shall obtain, record, and maintain in the Security
Register the name and address of every owner of the Certificates, or if appropriate, the nominee
thereof. Any Certificate may, in accordance with its terms and the terms hereof, be transferred
or exchanged for Certificates of other authorized denominations upon the Security Register by
the Holder, in person or by his duly authorized agent, upon surrender of such Certificate to the
Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or
request for exchange duly executed by the Holder or by his duly authorized agent, in form
satisfactory to the Paying Agent/Registrar.
Upon surrender for transfer of any Certificate at the corporate trust office of the Paying
Agent/Registrar, the City shall execute and the Paying Agent /Registrar shall register and deliver,
in the name of the designated transferee or transferees, one or more new Certificates of
authorized denomination and having the same Stated Maturity and of a like interest rate and
aggregate principal amount as the Certificate or Certificates surrendered for transfer.
At the option of the Holder, Certificates may be exchanged for other Certificates of
authorized denominations and having the same Stated Maturity, bearing the same rate of interest
and of like aggregate principal amount as the Certificates surrendered for exchange upon
surrender of the Certificates to be exchanged at the corporate trust office of the Paying
Agent /Registrar. Whenever any Certificates are so surrendered for exchange, the City shall .
execute, and the Paying Agent /Registrar shall register and deliver, the Certificates to the Holder
requesting the exchange.
All Certificates issued upon any transfer or exchange of Certificates shall be delivered at
the corporate trust office of the Paying Agent/Registrar, or be sent by registered mail to the
28181190.4 -7
Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be the
valid and binding obligations of the City, evidencing the same obligation to pay, and entitled to
the same benefits under this Ordinance, as the Certificates surrendered upon such transfer or
exchange.
All transfers or exchanges of Certificates pursuant to this Section shall be made without
expense or service charge to the Holder, except as otherwise herein provided, and except that the
Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange
of any tax or other governmental charges required to be paid with respect to such transfer or
exchange.
Certificates canceled by reason of an exchange or transfer pursuant to the provisions
hereof are hereby defined to be Predecessor Certificates, evidencing all or a portion, as the case
may be, of the same debt evidenced by the new Certificate or Certificates registered and
delivered in the exchange or transfer therefor. Additionally, the term Predecessor Certificates
shall include any Certificate registered and delivered pursuant to Section 25 in lieu of a
mutilated, lost, destroyed, or stolen Certificate which shall be deemed to evidence the same
obligation as the mutilated, lost, destroyed, or stolen Certificate.
SECTION 7. Initial Certificate. The Certificates herein authorized shall be issued
initially either (i) as a single fully registered Certificate in the total principal amount of
$ with principal installments to become due and payable as provided in Section
2 and numbered T -1, or (ii) as one (1) fully registered Certificate for each year of Stated Maturity
in the applicable principal amount and denomination and to be numbered consecutively from T -1
and upward (the Initial Certificate) and, in either case, the Initial Certificate shall be registered in
the name of the Purchasers or the designee thereof. The Initial Certificate shall be the
Certificates submitted to the Office of the Attorney General of the State of Texas for approval,
certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas
and delivered to the Purchasers. Any time after the delivery of the Initial Certificate to the
Purchasers, the Paying Agent /Registrar, pursuant to written instructions from the Purchasers or
their designee, shall cancel the Initial Certificate delivered hereunder and exchange therefor
definitive Certificates of authorized denominations, Stated Maturities, principal amounts and
bearing applicable interest rates on the unpaid principal amounts from the Certificate Date, or
from the most recent Interest Payment Date to which interest has been paid or duly provided for,
to Stated Maturity, and shall be lettered "R" and numbered consecutively from one (1) upward
for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to
and in accordance with such written instructions from the Purchasers, or the designee thereof,
and such other information and documentation as the Paying Agent/Registrar may reasonably
require.
SECTION 8. Forms.
A. Forms Generally. The Certificates, the Registration Certificate of the Comptroller
of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent /Registrar,
and the form of Assignment to be printed on each of the Certificates shall be substantially in the
forms set forth in this Section with such appropriate insertions, omissions, substitutions, and
other variations as are permitted or required by this Ordinance and may have such letters,
28181190.4 -8-
numbers, or other marks of identification (including insurance legends in the event the
Certificates, or any Stated Maturities thereof, are insured, and any reproduction of an opinion of
Bond Counsel (hereinafter referenced)) and identifying numbers and letters of the Committee on
Uniform Securities Identification Procedures of the American Bankers Association) and such
legends and endorsements (including any reproduction of an opinion of counsel) thereon as may,
consistent herewith, be established by the City or determined by the officers executing the
Certificates as evidenced by their execution thereof. Any portion of the text of any Certificate
may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the
Certificate.
The definitive Certificates shall be printed, lithographed, or engraved, produced by any
combination of these methods, or produced in any other similar manner, all as determined by the
officers executing the Certificates as evidenced by their execution thereof, but the Initial
Certificate submitted to the Attorney General of the State of Texas may be typewritten or
photocopied or otherwise reproduced.
[The remainder of this page intentionally left blank.]
28181190.4 -9-
•
B. Form of Definitive Certificate.
REGISTERED
PRINCIPAL AMOUNT
United States of America
State of Texas
Counties of Guadalupe, Comal, and Bexar
CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND LIMITED PLEDGE REVENUE
CERTIFICATE OF OBLIGATION, SERIES 2017
Certificate Date: Interest Rate:
May 15, 2017
REGISTERED OWNER:
Stated Maturity: CUSIP No.
The City of Schertz, Texas (the City), a body corporate and municipal corporation in the
Counties of Guadalupe, Comal, and Bexar, State of Texas, for value received, acknowledges
itself indebted to and hereby promises to pay to the order of the Registered Owner specified
above, or the registered assigns thereof, on the Stated Maturity date specified above, the
Principal Amount specified above (or so much thereof as shall not have been paid upon prior
redemption) and to pay interest on the unpaid Principal Amount hereof from the Certificate Date,
or from the most recent Interest Payment Date (hereinafter defined) to which interest has been
paid or duly provided for until such Principal Amount has become due and payment thereof has
been made or duly provided for, to the earlier of redemption or Stated Maturity, while
Outstanding, at the per annum rate of interest specified above computed on the basis of a 360 -
day year of twelve 30 -day months; such interest being payable on February 1 and August 1 of
each year (each, an Interest Payment Date), commencing February 1, 2018. .
Principal and premium, if any, of this Certificate shall be payable to the Registered
Owner hereof (the Holder), upon presentation and surrender, at the corporate trust office of the
Paying Agent /Registrar executing the registration certificate appearing hereon or a successor
thereof. Interest shall be payable to the Holder of this Certificate (or one or more Predecessor
Certificates, as defined in the Ordinance hereinafter referenced) whose name appears on the
Security Register maintained by the Paying Agent /Registrar at the close of business on the
Record Date, which is the fifteenth day of the month next preceding each Interest Payment Date.
All payments of principal of and interest on this Certificate shall be in any coin or currency of
the United States of America which at the time of payment is legal tender for the payment of
public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on
or prior to the appropriate date of payment by United States mail, first -class postage prepaid, to
the Holder hereof at the address appearing in the Security Register or by such other method,
acceptable to the Paying Agent /Registrar, requested by the Holder hereof at the Holder's risk and
expense.
28181190.4 -10-
This Certificate is one of the series specified in its title issued in the aggregate principal
amount of $ (the Certificates) pursuant to an Ordinance adopted by the governing
body of the City (the Ordinance), for the purpose of paying contractual obligations of the City to
be incurred for making permanent public improvements and for other public purposes, to -wit:
(1) constructing street improvements (including utilities repair, replacement, and relocation),
curbs, gutters, and sidewalk improvements, including drainage incidental thereto; (2) designing,
renovating, repairing, and improving the City's Municipal Complex and the Senior Center; (3)
purchase of ambulances and Fire apparatus and constructing improvements to Fire Station No. 2;
(4) designing, constructing, renovating, improving, and equipping the City's parks and
recreational facilities, including the construction of new hike and bike trails; (5) the purchase of
materials, public safety equipment, supplies, equipment, machinery, landscaping, land, and
rights -of -way for authorized needs and purposes relating to the aforementioned capital
improvements; and (6) the payment of professional services related to the design, construction,
project management, and financing of the aforementioned projects, under and in strict
conformity with the laws of the State of Texas, particularly Chapter 1502, as amended, Texas
Government Code, the Certificate of Obligation Act of 1971, as amended, Texas Local
Government Code, Section 271.041 through 271.064, and the City's Home Rule Charter.
The Certificates stated to mature on February 1, 20_ are referred to herein as the "Term
Certificates ". The Term Certificates are subject to mandatory sinking fund redemption prior to
their stated maturities from money required to be deposited in the Certificate Fund for such
purpose and shall be redeemed in part, by lot or other customary method, at the principal amount
thereof plus accrued interest to the date of redemption in the following principal amounts on
February 1 in each of the years as set forth below:
Term Certificates
Stated to Mature
on February 1, 20
Principal
Year Amount ($)
*Payable at Stated Maturity.
The principal amount of a Term Certificate required to be redeemed pursuant to the
operation of such mandatory redemption provisions shall be reduced, at the option of the City, by
the principal amount of any Term Certificates of such Stated Maturity which, at least fifty (50)
days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City
and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and
canceled by the Paying Agent /Registrar at the request of the City, or (3) shall have been
redeemed pursuant to the optional redemption provisions set forth below and not theretofore
credited against a mandatory redemption requirement.
28181190.4 -11-
As provided in the Ordinance, the Certificates having Stated Maturities on and after
February 1, 2028 shall be subject to redemption prior to Stated Maturity, at the option of the
City, on February 1, 2027, or on any date thereafter, as a whole or in part, in principal amounts
of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and
by lot by the Paying Agent /Registrar), at the redemption price of par plus accrued interest to the
date of redemption; provided, however, that at least thirty (30) days prior written notice shall be
sent to the Holder of the Certificates to be redeemed by United States mail, first -class postage
prepaid, and subject to the terms and provisions relating thereto contained in the Ordinance. If
this Certificate is subject to redemption prior to Stated Maturity and is in a denomination in
excess of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral
multiple thereof may be redeemed, and, if less than all of the principal sum hereof is to be
redeemed, there shall be issued, without charge therefor, to the Holder hereof, upon the surrender
of this Certificate to the Paying Agent/Registrar at its corporate trust office, a new Certificate or
Certificates of like Stated Maturity and interest rate in any authorized denominations provided in
the Ordinance for the then unredeemed balance of the principal sum hereof.
If this Certificate (or any portion of the principal sum hereof) shall have been duly called
for redemption and notice of such redemption has been duly given, then upon such redemption
date this Certificate (or the portion of the principal sum hereof to be redeemed) shall become due
and payable, and, if the money for the payment of the redemption price, and the interest accrued
on the principal amount to be redeemed to the date of redemption is held for the purpose of such
payment by the :Paying Agent /Registrar, interest shall cease to accrue and be payable hereon
from and after the redemption date on the principal amount hereof to be redeemed. If this
Certificate is called for redemption, in whole or in part, the City or the Paying Agent /Registrar
shall not be required to issue, transfer, or exchange this Certificate within forty -five (45) days of
the date fixed for redemption; provided, however, such limitation of transfer shall not be
applicable to an exchange by the Holder of the unredeemed balance hereof in the event of its
redemption in part.
The Certificates of this series are payable from the proceeds of an ad valorem tax levied
upon all taxable property within the City, within the limitations prescribed by law, and are
further payable from and secured by a lien on and pledge of the Pledged Revenues (identified
and defined in the Ordinance), being a limited amount of the Net Revenues derived from the
operation of the City's combined utility system (the System), such lien on and pledge of the
limited amount of Net Revenues being subordinate and inferior to the lien on and pledge of such
Net Revenues securing payment of any Prior Lien Obligations, Junior Lien Obligations, or
Subordinate Lien Obligations hereafter issued by the City. The City has previously authorized
the issuance of the currently outstanding Limited Pledge Obligations (identified and defined in
the Ordinance) that are payable, in part, from and secured by a lien on and pledge of a limited
amount of the Net Revenues of the System in the manner and as described in the ordinances
authorizing the issuance of the currently outstanding Limited Pledge Obligations. In the
Ordinance, the City reserves and retains the right to issue Prior Lien Obligations, Junior Lien
Obligations, Subordinate Lien Obligations, and Additional Limited Pledge Obligations (all as
identified and defined in the Ordinance), while the Certificates are Outstanding, without
limitation as to principal amount but subject to any terms, conditions or restrictions as may be
applicable thereto under law or otherwise.
28181190.4 -12-
Reference is hereby made to the Ordinance, a copy of which is on file in the corporate
trust office of the Paying Agent /Registrar, and to all of the provisions of which the Holder by his
acceptance hereof hereby assents, for definitions of terms; the description of and the nature and
extent of the tax levied and the revenues pledged for the payment of the Certificates; the terms
and conditions under which the City may issue Prior Lien Obligations, Junior Lien Obligations,
Subordinate Lien Obligations, and Additional Limited Pledge Obligations; the terms and
conditions relating to the transfer or exchange of the Certificates; the conditions upon which the
Ordinance may be amended or supplemented with or without the consent of the Holder; the
rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and
provisions upon which this Certificate may be redeemed or discharged at or prior to the Stated
Maturity thereof, and deemed to be no longer Outstanding thereunder; and for the other terms
and provisions specified in the Ordinance. Capitalized terms used herein have the same meanings
assigned in the Ordinance.
This Certificate, subject to certain limitations contained in the Ordinance, may be
transferred on the Security Register upon presentation and surrender at the corporate trust office
of the Paying Agent /Registrar, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Paying Agent/Registrar duly executed by the Holder hereof,
or his duly authorized agent, and thereupon one or more new fully registered Certificates of the
same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the
same aggregate principal amount will be issued to the designated transferee or transferees.
The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder
hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof
for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this
Certificate as the owner hereof for purposes of receiving payment of principal hereof at its Stated
Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner hereof for
all other purposes, and neither the City nor the Paying Agent /Registrar, or any such agent of
either, shall be affected by notice to the contrary. In the event of a non - payment of interest on a
scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest
payment (a Special Record Date) will be established by the Paying Agent /Registrar, if and when
funds for the payment of such interest have been received from the City. Notice of the Special
Record Date and of the scheduled payment date of the past due interest (the Special Payment
Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five
(5) business days prior to the Special. Record Date by United States mail, first -class postage
prepaid, to the address of each Holder appearing on the Security Register at the close of business
on the last business day next preceding the date of mailing of such notice.
It is hereby certified, covenanted, and represented that all acts, conditions, and things
required to be performed, exist, and be done precedent to the issuance of this Certificate in order
to render the same a legal, valid, and binding obligation of the City have been performed, exist,
and have been done, in regular and due time, form, and manner, as required by the laws of the
State of Texas and the Ordinance, and that issuance of the Certificates does not exceed any
constitutional or statutory limitation; and that due provision has been made for the payment of
the principal of, premium if any, and interest on the Certificates by the levy of a tax and
collection of Pledged Revenues as aforestated. In case any provision in this Certificate or any
application thereof shall be deemed invalid, illegal, or unenforceable, the validity, legality, and
28181190.4 -13-
enforceability of the remaining provisions and applications shall not in any way be affected or
impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be
construed in accordance with and shall be governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City has caused this Certificate to be duly executed under
its official seal.
CITY OF SCHERTZ, TEXAS
C
ATTEST:
City Secretary
(CITY SEAL)
28181190.4 -14-
Mayor
C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on
Initial Certificate Onlv.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER OF §
PUBLIC ACCOUNTS §
§ REGISTER NO.
THE STATE OF TEXAS §
I HEREBY CERTIFY that this Certificate has been examined, certified as to validity and
approved by the Attorney General of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this
Comptroller of Public Accounts
of the State of Texas
(SEAL)
*NOTE TO PRINTER: Not to appear on printed Certificates.
D. Form of Certificate of Paying Agent /Registrar to Appear on Definitive
Certificates Only.
REGISTRATION CERTIFICATE OF PAYING AGENT /REGISTRAR
This Certificate has been duly issued under the provisions of the within - mentioned
Ordinance; the Certificate or Certificates of the above - entitled and designated series originally
delivered having been approved by the Attorney General of the State of Texas and registered by
the Comptroller of Public Accounts, as shown by the records of the Paying Agent /Registrar.
Registered this date: BOKF, NA, AUSTIN, TEXAS, as Paying
Agent /Registrar
By:
Authorized Signature
*NOTE TO PRINTER: Print on Definitive Certificates.
28181190.4 -15-
E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto
(Print or typewrite name, address, and zip code of transferee):
(Social Security or other identifying number):
the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer the within Certificate on the books kept for
registration thereof, with full power of substitution in the premises.
DATED:
NOTICE: The signature on this assignment must
correspond with the name of the registered owner as it
appears on the face of the within Certificate in every
particular.
Signature guaranteed:
F. The Initial Certificate shall be in the form set forth in paragraph B of this Section,
except that the form of a single y registered Initial. Certificate shall be modified as follows:
(i) immediately under the name of the Certificate the headings "Interest Rate and "Stated
Maturity shall both be completed "as shown below";
(ii) the first two paragraphs shall read as follows:
Registered Owner:
Principal Amount:
The City of Schertz, Texas (the City), a body corporate and municipal corporation in the
Counties of Guadalupe, Comal, and Bexar, State of Texas, for value received, acknowledges
itself indebted to and hereby promises to pay to the order of the Registered Owner named above,
or the registered assigns thereof, the Principal Amount specified above stated to mature on the
first day of February in each of the years and in principal amounts and bearing interest at per
annum rates in accordance with the following schedule:
28181190.4 -16-
Years of Principal Interest
Stated Maturity Amounts ($) Rates
(Information to be inserted
from schedule in Section 2 hereof)
(or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the
unpaid Principal Amounts hereof from the Certificate Date specified above, or from the most
recent Interest Payment Date (defined below) to which interest has been paid or duly provided
for until the Principal Amount has become due and payment thereof has been made or duly
provided for, to the earlier of redemption or Stated Maturity, at the per annum rates of interest
specified above, computed on the basis of a 360 -day year of twelve 30 -day months; such interest
being payable on February 1 and August 1 of each year (each, an Interest Payment Date),
commencing February 1, 2018.
Principal of this Certificate shall be payable to the Registered Owner hereof (the Holder),
upon its presentation and surrender, to Stated Maturity or prior redemption, while Outstanding, at
the corporate trust office of BOKF, NA, Austin, Texas (the Paying Agent /Registrar). Interest
shall be payable to the Holder of this Certificate whose name appears on the Security Register
maintained by the Paying Agent /Registrar at the close of business on the Record Date, which is
the fifteenth day of the month next preceding each Interest Payment Date. All payments of
principal of and interest on this Certificate shall be in any coin or currency of the United States
of America which at the time of payment is legal tender for the payment of public and private
debts. Interest shall be paid by the :Paying Agent /Registrar by check sent on or prior to the
appropriate date of payment by United States mail, first -class postage prepaid, to the Holder
hereof at the address appearing in the Security Register or by such other method, acceptable to
the Paying Agent /Registrar, requested by, and at the risk and expense of, the Holder hereof.
G. Insurance Legend. If bond insurance is obtained by the City or the Purchasers for
the Certificates, the Definitive Certificates and the Initial Certificate shall bear an appropriate
legend as provided by the insurer.
SECTION 9. Definitions. For all purposes of this Ordinance (as defined below), except
as otherwise expressly provided or unless the context otherwise requires: (i) the terms defined in
this Section have the meanings assigned to them in this Section, and certain terms used in
Sections 27 and 44 of this Ordinance have the meanings assigned to them in Sections 27 and 44
of this Ordinance, and all such terms, include the plural as well as the singular; (ii) all references
in this Ordinance to designated "Sections" and other subdivisions are to the designated Sections
and other subdivisions of this Ordinance as originally adopted; and (iii) the words "herein ",
"hereof, and "hereunder" and other words of similar import refer to this Ordinance as a whole
and not to any particular Section or other subdivision.
A. The term Additional Limited Pledge Obligations shall mean (i) any bonds, notes,
warrants, certificates of obligation or other evidences of indebtedness hereafter issued by the
City payable in part from a limited pledge of and lien on Net Revenues of the System being a
lien on and pledge of Net Revenues that is subordinate and inferior to the lien thereon and pledge
thereof securing the payment of any Prior Lien Obligations, Junior Lien Obligations, or
28181190.4 -17-
Subordinate Lien Obligations hereafter issued by the City, which pledge of revenues is limited
pursuant to Section 1502.052, as amended, Texas Government Code, all as further provided in
Section 20 of this Ordinance, and (ii) any obligations issued to refund the foregoing as
determined by the City Council in accordance with any applicable law.
B. The term Authorized Officials shall mean the Mayor, the Mayor Pro Tem, the City
Manager, the Director of Finance, and /or the City Secretary.
C. The term Certificates shall mean the $ "CITY OF SCHERTZ, TEXAS
COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2017" authorized by this Ordinance.
D. The term Certificate Fund shall mean the special Fund created and established by
the provisions of Section 1.0 of this Ordinance.
E. The term City shall mean the City of Schertz, located in Guadalupe, Comal, and
Bexar Counties, Texas and, where appropriate, the City Council of the City.
F. The term Closing Date shall mean the date of physical delivery of the Initial
Certificates in exchange for the payment of the agreed purchase price for the Certificates.
G. The term Collection Date shall mean, when reference is being made to the levy
and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year
by the City become delinquent.
H. The term Debt Service Requirements shall mean, as of any particular date of
computation, with respect to any obligations and with respect to any period, the aggregate of the
amounts to be paid or set aside by the City as of such date or in such period for the payment of
the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations;
assuming, in the case of obligations without a fixed numerical rate, that such obligations bear
interest at the maximum rate permitted by the terms thereof and further assuming in the case of
obligations required to be redeemed or prepaid as to principal prior to Stated Maturity, the
principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the
mandatory redemption provisions applicable thereto.
I. The term Depository shall mean an official depository bank of the City.
J. The term Fiscal Year shall mean the annual financial accounting period for the
System now ending on September 30th of each year; provided, however, the City Council may
change such annual financial accounting period to end on another date if such change is found
and determined to be necessary for accounting purposes or is required by applicable law.
K. The term Government Securities, as used herein, shall mean (i) direct noncallable
obligations of the United States, including obligations that are unconditionally guaranteed by, the
United States of America; (ii) noncallable obligations of an agency or instrumentality of the
United States, including obligations that are unconditionally guaranteed or insured by the agency
or instrumentality and that, on the date the governing body of the issuer adopts or approves the
proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a
28181190.4 -18-
nationally recognized investment rating firm not less than "AAA" or its equivalent;
(iii) noncallable obligations of a state or an agency or a county, municipality, or other political
subdivision of a state that have been refunded and that, on the date the governing body of the
issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated
as to investment quality by a nationally recognized investment rating firm not less than "AAA"
or its equivalent, or (iv) any additional securities and obligations hereafter authorized by the laws
of the State of Texas as eligible for use to accomplish the discharge of obligations such as the
Certificates.
L. The term Gross Revenues for any period shall mean all revenue during such
period in respect or on account of the operation or ownership of the System, excluding
refundable meter deposits, restricted gifts, and grants in aid of construction, but including
earnings and income derived from the investment or deposit of money in any special fund or
account (except the Certificate Fund) created and established for the payment or security of the
Certificates.
M. The term Folder or Folders shall mean the registered owner, whose name
appears in the Security Register, for any Certificate.
N. The term Interest Payment Date shall mean the date interest is payable on the
Certificates, being February 1 and August 1 of each year, commencing February 1, 2018, while
any of the Certificates remain Outstanding.
O. The term Junior Lien Obligations shall mean (i) any bonds, notes, warrants,
certificates of obligation or any similar obligations hereafter issued by the City that are payable
wholly or in part from and equally and ratably secured by a lien on and pledge of the Net
Revenues of the System, such pledge being junior and inferior to the lien on and pledge of the
Net Revenues of the System that may be pledged to the payment of any Prior Lien Obligations
hereafter issued by the City, but prior and superior to the lien on and pledge of the Net Revenues
of the System that are or will be pledged to the payment of the currently outstanding Limited
Pledge Obligations, and the Certificates, or any Subordinate Lien Obligations or Additional
Limited Pledge Obligations hereafter issued by the City all as further provided in Section 20 of
this Ordinance and (ii) obligations hereafter issued to refund any of the foregoing that are
payable from and equally and ratably secured by a junior and inferior lien on and pledge of the
Net Revenues as determined by the City Council in accordance with any applicable law.
P. The term Limited Pledge Obligations shall mean (i) the Certificates and the
outstanding and unpaid obligations of the City that are payable, in part, from and secured by a
subordinate and inferior lien on and pledge of a limited amount of the Net Revenues of the
System and designated as follows:
(1) "City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 2007 ", dated January 1, 2007, originally issued in the
aggregate principal amount of $9,915,000;
28181190.4 -19-
(2) "City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 2013 ", dated September 1, 2013, originally issued in the
aggregate principal amount of $4,965,000;
(3) "City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 201.6A ", dated August 1, 2016, . originally issued in the
aggregate principal amount of $2,375,000;
(4) "City of Schertz, Texas Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Taxable Series 201613", dated August 1, 2016, originally
issued in the aggregate principal amount of $1,475,000;
(ii) obligations hereafter issued to refund any of the foregoing as determined by the City
Council in accordance with any applicable law.
Q. The term Maintenance and Operating Expenses shall mean all current expenses
of operating and maintaining the System not paid from the proceeds of the Certificates, including
(1) the cost of all salaries, labor, materials, repairs, and extensions necessary to render efficient
service, but only if, in the case of repairs and extensions, they are, in the judgment of the City
Council (reasonably and fairly exercised), necessary to maintain operation of the System and
render adequate service to the City and the inhabitants thereof, or are necessary to meet some
physical accident or condition which would otherwise impair obligations payable from Net
Revenues, (2) payments to pension, retirement, health, hospitalization, and other employee
benefit funds for employees of the City engaged in the operation or maintenance of the System,
(3) payments under contracts for the purchase of water supply, treatment of sewage, or other
materials, goods, or services for the System to the extent authorized by law and the provisions of
such contract, (4) payments to auditors, attorneys, and other consultants incurred in complying
with the obligations of the City hereunder, and (5) any legal liability of the City arising out of the
operation, maintenance, or condition of the System, but excluding any allowance for
depreciation, property retirement, depletion, obsolescence, and other items not requiring an
outlay of cash and any interest on the Certificates or other bonds, notes, warrants, or similar
obligations of the City payable from Net Revenues.
R. The term Net Revenues for any period shall mean the Gross Revenues of the
System less the Maintenance and Operating Expenses of the System.
S. The term Ordinance shall mean this ordinance as finally passed and adopted by
the City Council of the City.
T. The term Outstanding when used in this Ordinance with respect to the Certificates
shall mean, as of the date of determination, all Certificates issued and delivered under this
Ordinance, except:
(1) those Certificates canceled by the Paying Agent /Registrar or delivered to
the Paying Agent /:Registrar for cancellation;
(2) those Certificates for which payment has been duly provided by the City
in accordance with the provisions of Section 29 of this Ordinance; and
28181190.4 -20-
(3) those Certificates that have been mutilated, destroyed, lost, or stolen and
replacement Certificates have been registered and delivered in lieu thereof as provided in
Section 25 of this Ordinance.
U. The term Pledged Revenues shall mean, while the Certificates remain
Outstanding, an amount of Net Revenues not in excess of $1,000. The Pledged Revenues shall
be deposited, allocated, and expended in accordance with Section 10 of this Ordinance.
V. The term Pledged Revenue Amount shall mean the total amount, not to exceed
$1,000 while the Certificates are Outstanding, of Net Revenues that may be transferred in whole
or in part by the City in any given Fiscal Year (however, any amounts transferred prior to the
final maturity date of the Certificates may not exceed the total amount of $1,000) to the
Certificate Fund.
W. The term Prior Lien Obligations shall mean (i) any bonds, notes, warrants,
certificates of obligation or any similar obligations hereafter issued by the City that are payable
in whole or in part from and equally and ratably secured by a first and prior lien on and pledge of
the Net Revenues of the System, all as further provided in Section 20 of this Ordinance, and
(ii) any obligations hereafter issued to refund the foregoing if issued in a manner so as to be
payable from and equally and ratably secured by a first and prior lien on and pledge of the Net
Revenues of the System as determined by the City Council in accordance with any applicable
law.
X. The term Purchasers shall mean the initial purchaser or purchasers of the
Certificates named in Section 26 of this Ordinance.
Y. The term Stated Maturity shall mean the annual principal payments of the
Certificates payable on February 1 of each year the Certificates are Outstanding as set forth in
Section 2 of this Ordinance.
Z. The term Subordinate Lien Obligations shall mean (i) any bonds, notes, warrants,
certificates of obligation, or any similar obligations hereafter issued by the City that are payable,
in whole or in part, from and equally and ratably secured by a lien on and pledge of the Net
Revenues of the System, such pledge being subordinate and inferior to the lien on and pledge of
the Net Revenues of the System that may be pledged to the payment of any Prior Lien
Obligations or Junior Lien Obligations hereafter issued by the City, but prior and superior to the
lien on and pledge of the limited amount of the Net Revenues securing, in part, the payment of
the currently outstanding Limited Pledge Obligations and the Certificates or any Additional
Limited Pledge Obligations hereafter issued by the City, all as further provided in Section 20 of
this Ordinance and (ii) any obligations hereafter issued to refund any of the foregoing if issued in
a manner so as to be payable from and equally and ratably secured by a subordinate and inferior
lien on and pledge of the Net Revenues as determined by the City Council in accordance with
any applicable law.
AA. The term System shall mean all properties, facilities and plants currently owned,
operated, and maintained by the City for the supply, treatment, and transmission of treated
potable water, for the collection and treatment of wastewater, together will all future extensions,
28181190.4 -21-
improvements, replacements and additions thereto, whether situated within or without the limits
of the City and the City expressly reserves the right at its sole discretion to include additional
utility, telecommunications, technology, or similar enterprise services as components of the
System; provided, however, that notwithstanding the foregoing, and to the extent now or
hereafter authorized or permitted by law, the term System shall not mean to include facilities of
any kind which are declared not to be a part of the System and which are acquired or constructed
by or on behalf of the City with the proceeds from the issuance of Special Facilities Bonds,
which are hereby defined as being special revenue obligations of the City which are not payable
from Net Revenues but which are payable from and equally and ratably secured by other liens on
and pledges of any revenues, sources or payments, not pledged to the payment of the Bonds
Similarly Secured including, but not limited to, special contract revenues or payments received
from any other legal entity in connection with such facilities.
SECTION 1.0. Certificate Fund — Investments. For the purpose of paying the interest on
and to provide a sinking fund for the payment, redemption, and retirement of the Certificates,
there shall be and is hereby created a special fund to be designated "COMBINATION TAX
AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2017,
INTEREST AND SINKING FUND" (the Certificate Fund), which fund shall be kept and
maintained at the Depository, and money deposited in the Certificate Fund shall be used for no
other purpose and shall be maintained as provided in Section 27. Authorized Officials of the
City are hereby authorized and directed to make withdrawals from the Certificate Fund sufficient
to pay the purchase price or the amount of principal of, premium, if any, and interest on the
Certificates as the same become due and payable and shall cause to be transferred to the Paying
Agent /Registrar from money on deposit in the Certificate Fund an amount sufficient to pay the
amount of principal and /or interest stated to mature on the Certificates, such transfer of funds to
the Paying Agent /Registrar to be made in such manner as will cause immediately available funds
to be deposited with the Paying Agent /Registrar on or before the business day next preceding
each interest and principal payment date for the Certificates.
The City, at its sole discretion, may deposit the Pledged Revenue Amount to the
Certificate Fund. The Pledged Revenue Amount, if deposited, shall be expended annually to pay
principal of and interest on the Certificates as the same become due and payable. This Pledged
Revenue Amount shall be accounted for and transferred to the Paying Agent/Registrar in
accordance with the provisions of the previous paragraph of this Section.
Pending the transfer of funds to the Paying Agent /Registrar, money deposited in any fund
created and established by this Ordinance may, at the option of the City, be placed in time
deposits, certificates of deposit, guaranteed investment contracts, or similar contractual
agreements, as permitted by the provisions of the Public Funds Investment Act, as amended,
Chapter 2256, Texas Government Code, secured (to the extent not insured by the Federal
Deposit Insurance Corporation) by obligations of the type hereinafter described, or be invested,
as authorized by any law, including investments held in book -entry form, in securities, including,
but not limited to, direct obligations of the United States of America, obligations guaranteed or
insured by the United States of America, which, in the opinion of the Attorney General of the
United States, are backed by its full faith and credit or represent its general obligations, or
invested in indirect obligations of the United States of America, including, but not limited to,
evidences of indebtedness issued, insured or guaranteed by such governmental agencies as the
28181190.4 -22-
Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home
Loan Banks, Government National Mortgage Association, Farmers Home Administration,
Federal Home Loan Mortgage Association, or Federal Housing Association; provided that all
such deposits and investments shall be made in such a manner that the money required to be
expended from such fund will be available at the proper time or times. All interest and income
derived from deposits and investments in any fund established pursuant to the provisions of this
Ordinance shall be credited to, and any losses debited to, such fund. All such investments shall
be sold promptly when necessary to prevent any default in connection with the Certificates.
SECTION 11. Tax Levy. To provide for the payment of the Debt Service Requirements
on the Certificates being (i) the interest on the Certificates and (ii) a sinking fund for their
redemption at Stated Maturity or a sinking fund of 2% (whichever amount shall be the greater),
there shall be and there is hereby levied for the current year and each succeeding year thereafter
while the Certificates or any interest thereon shall remain Outstanding, a sufficient tax, within
the limitations prescribed by law, on each one hundred dollars valuation of taxable property in
the City, adequate to pay such Debt Service Requirements, full allowance being made for
delinquencies and costs of collection; said tax shall be assessed and collected each year and
applied to the payment of the Debt Service Requirements, and the same shall not be diverted to
any other purpose. The taxes so levied and collected shall be paid into the Certificate Fund and
are thereafter pledged to the payment of the Certificates. The City Council hereby declares its
purpose and intent to provide and levy a tax legally and fully sufficient to pay such Debt Service
Requirements, it having been determined that the existing and available taxing authority of the
City for such purpose is adequate to permit a legally sufficient tax in consideration of all other
outstanding indebtedness and other obligations of the City.
The amount of taxes to be provided annually for the payment of the principal of and
interest on the Certificates shall be determined and accomplished in the following manner:
A. Prior to the date the City Council establishes the annual tax rate and passes an
ordinance levying ad valorem taxes each year, the City Council shall determine:
(1) the amount of Debt Service Requirements to become due and payable on
the Certificates between the Collection Date for the taxes then to be levied and the
Collection Date for the taxes to be levied during the next succeeding calendar year;
(2) the amount on deposit in the Certificate Fund after (a) deducting therefrom
the total amount of Debt Service Requirements to become due on Certificates prior to the
Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount
of the Pledged Revenues, if any, to be appropriated and allocated during such year to pay
such Debt Service Requirements, if any, prior to the Collection Date for the ad valorem
taxes to be levied; and
(3) the amount of Pledged Revenues, if any, to be appropriated and to be set
aside for the payment of the Debt Service Requirements on the Certificates between the
Collection Date for the taxes then to be levied and the Collection Date for the taxes to be
levied during the next succeeding Fiscal Year.
28181190.4 -23-
B. The amount of taxes to be levied annually each year to pay the Debt Service
Requirements on the Certificates shall be the amount established in paragraph (1) above less the
sum total of the amounts established in paragraphs (2) and (3), after taking into consideration
delinquencies and costs of collecting such annual taxes.
SECTION 12. Pledge of Revenues. The City hereby covenants and agrees that, subject
to (i) any prior lien on and pledge of the Net Revenues of the System to the payment and security
of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations hereafter
issued by the City and (ii) the lien on and pledge of a limited amount of the Net Revenues to the
payment and security of the currently outstanding Limited Pledge Obligations, the Pledged
Revenues are hereby irrevocably pledged to the payment of the principal of and interest on the
Certificates and the pledge of Pledged Revenues herein made for the payment of the Certificates
shall constitute a lien on the Pledged Revenues in accordance with the terms and provisions
hereof and be valid and binding without any physical delivery thereof or further act by the City.
SECTION 13. System Fund. The City hereby covenants and agrees that all Gross
Revenues derived from the operation of the System shall be kept separate and apart from all
other funds, accounts and money of the City and shall be deposited as collected into the "CITY
OF SCHERTZ, TEXAS UTILITY SYSTEM FUND" (the System Fund. All money deposited
in the System Fund shall be pledged and appropriated to the extent required for the following
purposes and in the order of priority shown:
• First: to the payment of the reasonable and proper Maintenance and Operating
Expenses of the System required by statute or ordinances authorizing the issuance
of any indebtedness of the City to be a first charge on and claim against the Gross
Revenues of the System;
• Second: To the payment of the amounts that must be deposited in the special
funds and accounts created and established for the payment, security, and benefit
of any Prior Lien Obligations hereafter issued by the City in accordance with the
terms and provisions of any ordinance authorizing their issuance;
• Third: To the payment of the amounts that must be deposited in the special funds
and accounts created and established for the payment, security, and benefit of any
Junior Lien Obligations hereafter issued by the City in accordance with the terms
and provisions of any ordinance authorizing their issuance;
• Fourth: To the payment of the amounts that must be deposited in the special
funds and accounts created and established for the payment, security, and benefit
of any Subordinate Lien Obligations hereafter issued by the City in accordance
with the terms and provisions of any ordinance authorizing their issuance; and
• Fifth: To the payment of the amounts that may be deposited in the special funds
and accounts established for the payment of the currently outstanding Limited
Pledge Obligations, including the Certificates, and any Additional Limited Pledge
Obligations hereafter issued by the City in accordance with the terms and
provisions of any ordinance authorizing their issuance.
28181190.4 -24-
Any Net Revenues remaining in the System Fund after satisfying the foregoing
payments, or making adequate and sufficient provision for the payment, security and benefit
thereof, may be appropriated and used for any other City purpose now or hereafter permitted by
law.
SECTION 1.4. Deposits to Certificate Fund — Surplus Certificate Proceeds. The City
hereby covenants and agrees to cause to be deposited in the Certificate Fund prior to a principal
and interest payment date for the Certificates, from the Pledged Revenues in the System Fund,
after the deduction of all payments required to be made to the special funds or accounts created
for the payment, security, and benefit of (i) any Prior Lien Obligations, Junior Lien Obligations,
or Subordinate Lien Obligations hereafter issued by the City and (ii) the currently outstanding
Limited Pledge Obligations, any amounts budgeted to be paid therefrom in such Fiscal Year.
Accrued interest received from the Purchasers of the Certificates shall be deposited to the
Certificate Fund and ad valorem taxes levied and collected for the benefit of the Certificates shall
be deposited to the Certificate Fund. In addition, any surplus proceeds, including investment
income therefrom, from the sale of the Certificates not expended for authorized purposes shall be
deposited in the Certificate Fund, and such amounts so deposited shall reduce the sums otherwise
required to be deposited in said fund from ad valorem taxes.
SECTION 15. Security of Funds. All money on deposit in the funds for which this
Ordinance makes provision (except any portion thereof as may be at any time properly invested
as provided herein) shall be secured in the manner and to the fullest extent required by the laws
of the State of Texas for the security of public funds, and money on deposit in such funds shall
be used only for the purposes permitted by this Ordinance.
SECTION 16. Maintenance of System - Insurance. The City covenants and agrees that
while the Certificates remain Outstanding it will maintain and operate the System with all
possible efficiency and maintain casualty and other insurance (including a system of self. -
insurance) on the properties of the System and its operations of a kind and in such amounts
customarily carried by municipal corporations in the State of Texas engaged in a similar type of
business and that it will faithfully and punctually perform all duties with reference to the System
required by the laws of the State of Texas. All money received from losses under such insurance
policies, other than public liability policies, are held for the benefit of the holders of the
Certificates until and unless the proceeds are paid out in making good the loss or damage in
respect of which such proceeds are received, either by replacing the property destroyed or
repairing the property damaged, and adequate provision for making good such loss or damage
must be made within ninety (90) days after the date of loss. The payment of premiums for all
insurance policies required under the provisions hereof shall be considered Maintenance and
Operating Expenses. Nothing in this Ordinance shall be construed as requiring the City to
expend any funds which are derived from sources other than the operation of the System but
nothing herein shall be construed as preventing the City from doing so.
SECTION 17. Rates and Charges. The City hereby covenants and agrees with the
Holders of the Certificates that rates and charges for utility services afforded by the System will
be established and maintained to provide Gross Revenues sufficient at all times:
28181190.4 -25-
A. to pay, together with any other lawfully available funds, all operating,
maintenance, depreciation, replacement, betterment, and other costs incurred in the maintenance
and operation of the System, including, but not limited to, Maintenance and Operating Expenses;
provided, however, that the City expressly reserves the right to utilize other lawfully available
funds to pay the Maintenance and Operating Expenses;
B. to produce Net Revenues sufficient, together with any other lawfully available
funds, to pay (i) the interest on and principal of any Prior Lien Obligations hereafter issued by
the City as the same becomes due and payable and the amounts required to be deposited in any
special fund created and established for the payment, security, and benefit thereof, (ii) the
interest on and principal of any Junior Lien Obligations hereafter issued by the City as the same
becomes due and payable and the amounts required to be deposited in any special fund created
and established for the payment, security, and benefit thereof, (iii) the interest on and principal of
any Subordinate Lien Obligations hereafter issued by the City as the same becomes due and
payable and the amounts required to be deposited in any special fund created and established for
the payment, security, and benefit thereof, and (iv) the amounts that may be deposited in the
special funds established for the payment of the currently outstanding Limited Pledge
Obligations, the Certificates, or any Additional. Limited Pledge Obligations hereafter issued by
the City; and
C. to pay other legally incurred indebtedness payable from the Net Revenues of the
System and /or secured by a lien on the System or the Net Revenues thereof.
SECTION 18. Records and Accounts - Annual Audit. The City further covenants and
agrees that so long as any of the Certificates remain Outstanding it will keep and maintain
separate and complete records and accounts pertaining to the operations of the System in which
complete and correct entries shall be made of all transactions relating thereto, as provided by
Chapter 1.502, as amended, Texas Government Code, or other applicable law. The Holders of
the Certificates or any duly authorized agent or agents of the Holders shall have the right to
inspect the System and all properties comprising the same. The City further agrees that,
following the close of each Fiscal Year, it will cause an audit of such books and accounts to be
made by an independent firm of Certified Public Accountants. Expenses incurred in making the
annual audit of the operations of the System are to be regarded as Maintenance and Operating
Expenses.
SECTION 19. Remedies in Event of Default. In addition to all the rights and remedies
provided by the laws of the State of Texas, the City covenants and agrees particularly that in the
event the City (a) defaults in the payments to be made to the Certificate Fund, or (b) defaults in
the observance or performance of any other of the covenants, conditions, or obligations set forth
in this Ordinance, the Holders of any of the Certificates shall be entitled to seek a writ of
mandamus issued by a court of proper jurisdiction compelling and requiring the governing body
of the City and other officers of the City to observe and perform any covenant, condition, or
obligation prescribed in this Ordinance.
No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver of any such default or
acquiescence therein, and every such right and power may be exercised from time to time and as
28181190.4 -26-
often as may be deemed expedient. The specific remedies herein provided shall be cumulative of
all other existing remedies and the specification of such remedies shall not be deemed to be
exclusive.
SECTION 20. Issuance of Prior Lien Obligations, Junior Lien Obligations, Subordinate
Lien. Obligations, and Additional Limited :Pled ate. The City hereby expressly
reserves the right to hereafter issue bonds, notes, warrants, certificates of obligation, or similar
obligations, payable, wholly or in part, as appropriate, from and secured by a pledge of and lien
on the Net Revenues of the System with the following priorities, without limitation as to
principal amount, but subject to any terms, conditions, or restrictions applicable thereto under
existing ordinances, laws, or otherwise:
A. Prior Lien Obligations payable from and equally and ratably secured by a first and
prior lien on and pledge of the Net Revenues of the System;
B. Junior Lien Obligations payable from and equally and ratably secured by a lien on
and pledge of the Net Revenues that is junior and inferior to the lien on and pledge thereof
securing the payment of any Prior Lien Obligations hereafter issued by the City, but prior and
superior to the lien on and pledge of the Net Revenues securing, in part, the payment of the
currently outstanding Limited Pledge Obligations, the Certificates, and any Subordinate Lien
Obligations or Additional Limited Pledge Obligations hereafter issued by the City;
C. Subordinate Lien Obligations payable from and equally and ratably secured by a
lien on and pledge of the Net Revenues that is subordinate and inferior to the lien on and pledge
thereof securing the payment of any Prior Lien Obligations or Junior Lien Obligations hereafter
issued by the City, but prior and superior to the lien on and pledge of the Net Revenues securing,
in part, the payment of the currently outstanding Limited Pledge Obligations, the Certificates,
and any Additional Limited Pledge Obligations hereafter issued by the City; and
D. Additional Limited Pledge Obligations secured by a lien on and pledge of a
limited amount of the Net Revenues in accordance with the provisions of the following
paragraph.
Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien Obligations, if
issued, may be payable, in whole or in part, from Net Revenues (without impairment of the
obligation of contract with the holders of the currently outstanding Limited Pledge Obligations
and the Certificates) upon such terms and conditions as the City Council may determine.
Additional Limited Pledge Obligations, if issued and payable, in whole or in part, from Pledged
Revenues (defined in the same or similar terms as provided in Section 9 of this Ordinance or in
the ordinances authorizing the issuance of the currently outstanding Limited Pledge Obligations),
shall not in any event be construed to be payable from the Pledged Revenues authorized by this
Ordinance or in the ordinance authorizing the issuance of the currently outstanding Limited
Pledge Obligations to be budgeted and appropriated for the payment of the Certificates or the
ordinance authorizing the issuance of the currently outstanding Limited Pledge Obligations.
However, the lien on and pledge of the limited amount of Net Revenues securing, in part, the
payment of the Certificates, the Limited Pledge Obligations, and any Additional Limited Pledge
Obligations shall be subordinate and inferior to the pledge of and lien on the Net Revenues
28181190.4 -27-
securing the payment of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate
Lien Obligations hereafter issued by the City.
SECTION 21. Special Covenants. The City hereby further covenants that:
A. it has the lawful power to pledge the Pledged Revenues supporting the
Certificates and has lawfully exercised said powers under the laws of the State of Texas,
including power existing under Chapter 1502, as amended, Texas Government Code, the
Certificate of Obligation Act of 1971, . as amended, Texas Local Government Code, Section
271.041 through Section 271.064, and the City's Home Rule Charter;
B. other than for the payment of the currently outstanding Limited Pledge
Obligations, and the Certificates, the Net Revenues of the System have not in any manner been
pledged to the payment of any debt or obligation of the City or of the System;
C. as long as any Certificates or any interest thereon remain Outstanding, the City
will not sell, lease or encumber (except in the manner provided in Section 20 of this Ordinance)
the System or any substantial part thereof, provided that this covenant shall not be construed to
prohibit the sale of such machinery, or other properties or equipment which has become obsolete
or otherwise unsuited to the efficient operation of the System;
D. to the extent that it legally may, the City further covenants and agrees that, so
long as any of the Certificates, or any interest thereon, are Outstanding, no franchise shall be
granted for the installation or operation of any competing utility systems other than those owned
by the City, and the operation of any such systems by anyone other than the City is hereby
prohibited; and
E. no free service of the System shall be allowed, and should the City or any of its
agents or instrumentalities make use of the services and facilities of the System, payment of the
reasonable value thereof shall be made by the City out of funds from sources other than the
revenues and income of the System.
SECTION 22. Application of the Covenants and Agreements of any Prior Lien
Obligations, Junior Lien Obligations, or Subordinate Lien Obligations. It is the intention of the
City Council and accordingly hereby recognized and stipulated that the provisions, agreements,
and covenants contained herein bearing upon the management and operations of the System, and
the administration and application of Gross Revenues derived from the operation thereof, shall to
the extent possible be harmonized with like provisions, agreements, and covenants contained in
the ordinances authorizing the issuance of any Prior Lien Obligations, Junior Lien Obligations,
or Subordinate Lien Obligations hereafter issued by the City, and to the extent of any
irreconcilable conflict between the provisions contained herein and in the ordinances authorizing
the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien
Obligations, the provisions, agreements and covenants contained therein shall prevail to the
extent of such conflict and be applicable to this Ordinance, especially the priority of rights and
benefits conferred thereby to the holders of any Prior Lien Obligations, Junior Lien Obligations,
or Subordinate Lien Obligations hereafter issued by the City. It is expressly recognized that
prior to the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Subordinate Lien
28181190.4 -28-
Obligations, the City must comply with each of the conditions precedent contained in the
respective ordinances authorizing the issuance of the currently outstanding Limited Pledge
Obligations and the Certificates, as appropriate.
SECTION 23. Notices to Holders — Waiver. Wherever this Ordinance provides for
notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States mail, first -class postage prepaid, to
the address of each Holder as it appears in the Security Register.
In any case where notice to Holders is given by mail, neither the failure to mail such
notice to any particular Holders, nor any defect in any notice so mailed, shall affect the
sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for
notice in any manner, such notice may be waived in writing by the Holder entitled to receive
such notice, either before or after the event with respect to which such notice is given, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Paying Agent /Registrar, but such filing shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver.
SECTION 24. Cancellation. All Certificates surrendered for payment, redemption,
transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be
promptly canceled by it and, if surrendered to the City, shall be delivered to the Paying
Agent /Registrar and, if not already canceled, shall be promptly canceled by the Paying
Agent /Registrar. The City may at any time deliver to the Paying Agent /Registrar for
cancellation any Certificates previously certified or registered and delivered which the City may
have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly
canceled by the Paying Agent /Registrar. All canceled Certificates held by the Paying
Agent /Registrar shall be destroyed as directed by the City.
SECTION 25. Mutilated, Destroyed, Lost, and Stolen. Certificates. If (1) any mutilated
Certificate is surrendered to the Paying Agent /Registrar, or the City and the Paying
Agent /Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any
Certificate, and (2) there is delivered to the City and the Paying Agent /Registrar such security or
indemnity as may be required to save each of them harmless, then, in the absence of notice to the
City or the Paying Agent /Registrar that such Certificate has been acquired by a bona fide
purchaser, the City shall execute and, upon its request, the Paying Agent /Registrar shall register
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Certificate,
a new Certificate of the same Stated Maturity and interest rate and of like tenor and principal
amount, bearing a number not contemporaneously Outstanding.
In case any such mutilated, destroyed, lost, or stolen Certificate has become or is about to
become due and payable, the City in its discretion may, instead of issuing a new Certificate, pay
such Certificate.
Upon the issuance of any new Certificate or payment in lieu thereof, under this Section,
the City may require payment by the Holder of a sum sufficient to cover any tax or other
governmental charge imposed in relation thereto and any other expenses and charges (including
attorney's fees and the fees and expenses of the Paying Agent /Registrar) connected therewith.
28181190.4 -29-
Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed,
lost, or stolen Certificate shall constitute a replacement of the prior obligation of the City,
whether or not the mutilated, destroyed, lost, or stolen Certificate shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and
ratably with all other Outstanding Certificates.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement and payment of mutilated, destroyed,
lost, or stolen Certificates.
SECTION 26. Sale of the Certificates at Competitive Sale — Approval of the Official
Statement. The Certificates authorized by this Ordinance are hereby sold by the City to
, , as the authorized representative of a
group of underwriters at a competitive sale (the Purchasers, having all the rights, benefits, and
obligations of a Holder), in accordance with the provisions of an Official. Bid Form (the Official
Bid Form), dated May 23, 2017, attached hereto as Exhibit B and incorporated herein by
reference as a part of this Ordinance for all purposes, at the price of par, plus a [net] original
issue reoffering premium of $ plus accrued interest to the date of initial delivery of
the Certificates to the Purchasers and is hereby approved and confirmed. The Initial Certificate
shall be registered in the name of It is hereby officially found,
determined, and declared that the Purchasers are the highest bidder for the Certificates whose
bid, received as a result of invitations for competitive bids in compliance with applicable law,
produced the lowest true interest cost to the City. The pricing and terms of the sale of the
Certificates are hereby found and determined to be the most advantageous reasonably obtainable
by the City. Any Authorized Official is hereby authorized and directed to execute the Official
Bid Form for and on behalf of the City and as the act and deed of this City Council, and in regard
to the approval and execution of the Official Bid Form, the City Council hereby finds,
determines and declares that the representations, warranties, and agreements of the City
contained in the Official Bid Form are true and correct in all material respects and shall be
honored and performed by the City. Delivery of the Certificates to the Purchasers shall occur as
soon as practicable after the adoption of this Ordinance, upon payment therefor in accordance
with the terms of the Official Bid Form.
Proceeds from the sale of the Certificates shall be applied as follows:
(1) Accrued interest in the amount of $ and a Bidder's
Premium of $ received from the Purchasers shall be deposited into the Certificate
Fund.
(2) The City received a [net] original issue reoffering premium from the sale
of the Certificates of $ which is hereby allocated by the City in the
following manner: (i) $ to pay the Purchasers' compensation
(ii) $ shall be deposited into the construction account established in
paragraph (3) below, and (iii) $ to pay the remaining costs of issuance.
(3) The balance of the proceeds derived from the sale of the Certificates (after
paying costs of issuance) shall be deposited into the special construction account or
28181190.4 -30-
accounts created for the projects to be constructed with the proceeds of the Certificates
and used to pay costs of such projects. This special construction account shall be
established and maintained at the Depository and shall be invested in accordance with the
provisions of Section 10 of this Ordinance. Interest earned on the proceeds of the
Certificates pending completion of construction of the projects financed with such
proceeds shall be accounted for, maintained, deposited, and expended as permitted by the
provisions of Chapter 1201, as amended, Texas Government Code, or as required by any
other applicable law. Thereafter, such amounts shall be expended in accordance with
Section 1.4 of this Ordinance.
Furthermore, the City hereby ratifies, confirms, and approves in all respects (i) the City's
prior determination that the Preliminary Official Statement was, as of its date, "deemed final" in
accordance with the Rule (hereinafter defined) and (ii) the use and distribution of the Official
Notice of Sale, Official Bid Form, and :Preliminary Official. Statement by the Purchasers in
connection with the public offering and sale of the Certificates. The final Official Statement,
being a modification and amendment of the Preliminary Official Statement to reflect the terms of
sale referenced in the Official Bid Form (together with such changes approved by any
Authorized Official, any one or more of said officials), shall be and is hereby in all respects
approved and the Purchasers are hereby authorized to use and distribute the final Official
Statement, dated May 23, 2017, in the reoffering, sale and delivery of the Certificates to the
public. The Mayor and City Secretary are further authorized and directed to manually execute
and deliver for and on behalf of the City copies of the Official Statement in final form as may be
required by the Purchasers, and such final Official Statement in the form and content manually
executed by said officials shall be deemed to be approved by the City Council and constitute the
Official Statement authorized for distribution and use by the Purchasers. The proper officials of
the City are hereby authorized to execute and deliver a certificate pertaining to such Official
Statement as prescribed therein, dated as of the date of payment for and delivery of the
Certificates.
SECTION 27. Covenants to Maintain Tax - Exempt Status.
A. Definitions. When used in this Section, the following terms have the following
meanings:
Bonds means the $ "CITY OF SCHERTZ, TEXAS GENERAL
OBLIGATION BONDS, SERIES 2017," dated May 15, 2017 and issued on the Closing
Date.
"Closing Date" means the date on which the Certificates are first authenticated
and delivered to the initial purchasers against payment therefor.
"Code" means the Internal Revenue Code of 1986, as amended by all legislation,
if any, effective on or before the Closing Date.
"Computation Date" has the meaning set forth in Section 1.148 -1(b) of the
Regulations.
28181190.4 -31-
"Gross Proceeds" means any proceeds as defined in Section 1.148 -1(b) of the
Regulations, and any replacement proceeds as defined in Section 1.148 -1(c) of the
Regulations, of the Certificates.
"Investment" has the meaning set forth in Section 1.148 -1(b) of the Regulations.
"Nonpurpose Investment" means any investment property, as defined in
section 148(b) of the Code, in which Gross Proceeds of the Certificates are invested and
which is not acquired to carry out the governmental purposes of the Certificates.
"Rebate Amount" has the meaning set forth in Section 1.148 -1(b) of the
Regulations.
"Regulations" means any proposed, temporary, or final Income Tax Regulations
issued pursuant to sections 103 and 141 through 150 of the Code, and 103 of the Internal
Revenue Code of 1954, which are applicable to the Certificates. Any reference to any
specific Regulation shall also mean, as appropriate, any proposed, temporary or final
Income Tax Regulation designed to supplement, amend or replace the specific Regulation
referenced.
"Yield" of
(1) any Investment has the meaning set forth in Section 1.148 -5 of the
Regulations; and
(2) the Certificates means the combined yield on the Bonds and the
Certificates, treating them as a single issue and as calculated pursuant to Section
1.1.48 -4 of the Regulations.
B. Not to Cause Interest to Become Taxable. The City shall not use, permit the use
of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition,
construction or improvement of which is to be financed or refinanced directly or indirectly with
Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on
any Certificate to become includable in the gross income, as defined in section 61 of the Code, of
the owner thereof for federal income tax purposes. Without limiting the generality of the
foregoing, unless and until the City receives a written opinion of counsel nationally recognized
in the field of municipal bond law to the effect that failure to comply with such covenant will not
adversely affect the exemption from federal income tax of the interest on any Certificate, the
City shall comply with each of the specific covenants in this Section.
C. No Private Use or Private Payments. Except to the extent that it will not cause the
Certificates to become "private activity bonds" within the meaning of section 141 of the Code
and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated
Maturity of Certificates:
(1) exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or
indirectly with Gross Proceeds of the Certificates, and not use or permit the use of such
28181190.4 -32-
Gross Proceeds (including all contractual arrangements with terms different than those
applicable to the general public) or any property acquired, constructed or improved with
such Gross Proceeds in any activity carried on by any person or entity (including the
United States or any agency, department and instrumentality thereof) other than a state or
local government, unless such use is solely as a member of the general public; and
(2) not directly or indirectly impose or accept any charge or other payment by
any person or entity who is treated as using Gross Proceeds of the Certificates or any
property the acquisition, construction or improvement of which is to be financed or
refinanced directly or indirectly with such Gross :Proceeds, other than taxes of general
application within the City or interest earned on investments acquired with such Gross
Proceeds pending application for their intended purposes.
D. No Private Loan. Except to the extent it will not cause the Certificates to become
"private activity bonds" within the meaning of section 141 of the Code and the Regulations and
rulings thereunder, the City shall not use Gross Proceeds of the Certificates to make or finance
loans to any person or entity other than a state or local government. For purposes of the
foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if-
(1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to
such person or entity in a transaction which creates a debt for federal income tax purposes; (2)
capacity in or service from such property is committed to such person or entity under a take -or-
pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of
ownership, of such Gross Proceeds or any property acquired, constructed or improved with such
Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a
loan.
E. Not to Invest at Higher Yield. Except to the extent it will not cause the
Certificates to become "arbitrage bonds" within the meaning of section 148 of the Code and the
Regulations and rulings thereunder, the City shall not at any time prior to the final Stated
Maturity of the Certificates directly or indirectly invest Gross Proceeds in any Investment, if as a
result of such investment the Yield of any Investment acquired with Gross Proceeds, whether
then held or previously disposed of, materially exceeds the Yield of the Certificates.
F. Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the
Code and the Regulations and rulings thereunder, the City shall not take or omit to take any
action which would cause the Certificates to be federally guaranteed within the meaning of
section 149(b) of the Code and the Regulations and rulings thereunder.
G. Information Report. The City shall timely file the information required by section
1.49(e) of the Code with the Secretary of the Treasury on Form 8038 -G or such other form and in
such place as the Secretary may prescribe.
H. Rebate of Arbitrage Profits. Except to the extent otherwise provided in section.
148(f) of the Code and the Regulations and rulings thereunder:
(1) The City shall account for all Gross Proceeds (including all receipts,
expenditures and investments thereof) on its books of account separately and apart from
28181190.4 -33-
all other funds (and receipts, expenditures and investments thereof) and shall retain all
records of accounting for at least six years after the day on which the last Outstanding
Certificate is discharged. However, to the extent permitted by law, the City may
commingle Gross Proceeds of the Certificates with other money of the City, provided that
the City separately accounts for each receipt and expenditure of Gross Proceeds and the
obligations acquired therewith.
(2) Not less frequently than each Computation Date, the City shall calculate
the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and
the Regulations and rulings thereunder. The City shall maintain such calculations with its
official transcript of proceedings relating to the issuance of the Certificates until six years
after the final Computation Date.
(3) As additional consideration for the purchase of the Certificates by the
Purchasers and the loan of the money represented thereby and in order to induce such
purchase by measures designed to insure the excludability of the interest thereon from the
gross income of the owners thereof for federal income tax purposes, the City shall pay to
the United States out of the Certificate Fund or its general fund, as permitted by
applicable Texas statute, regulation or opinion of the Attorney General of the State of
Texas, the amount that when added to the future value of previous rebate payments made
for the Certificates equals (i) in the case of a Final Computation Date as defined in
Section 1.148- 3(e)(2) of the Regulations, one hundred percent (100 %) of the Rebate
Amount on such date; and (ii) in the case of any other Computation Date, ninety percent
(90 %) of the Rebate Amount on such date. In all cases, the rebate payments shall be
made at the times, in the installments, to the place and in the manner as is or may be
required by section 148(f) of the Code and the Regulations and rulings thereunder, and
shall be accompanied by Form 8038 -T or such other forms and information as is or may
be required by section 148(f) of the Code and the Regulations and rulings thereunder.
(4) The City shall exercise reasonable diligence to assure that no errors are
made in the calculations and payments required by paragraphs (2) and (3), and if an error
is made, to discover and promptly correct such error within a reasonable amount of time
thereafter (and in all events within one hundred eighty (180) days after discovery of the
error), including payment to the United States of any additional Rebate Amount owed to
it, interest thereon, and any penalty imposed under Section 1.148 -3(h) of the Regulations.
1. Not to Divert Arbitrage Profits. Except to the extent permitted by section 1.48 of
the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the
earlier of the Stated Maturity or final payment of the Certificates, enter into any transaction that
reduces the amount required to be paid to the United States pursuant to Subsection H of this
Section because such transaction results in a smaller profit or a larger loss than would have
resulted if the transaction had been at arm's length and had the Yield of the Certificates not been
relevant to either party.
28181190.4 -34-
J. Certificates Not Hedge Bonds.
(1) The City reasonably expects to spend at least 85% of the spendable
proceeds of the Certificates within three years after such Certificates are issued.
(2) Not more than 50% of the proceeds of the Certificates will be invested in
Nonpurpose Investments having a substantially guaranteed Yield for a period of 4 years
or more.
K. Elections. The City hereby directs and authorizes each Authorized Official, either
individually or any combination of them, to make elections permitted or required pursuant to the
provisions of the Code or the Regulations, as they deem necessary or appropriate in connection
with the Certificates, in the Certificate as to Tax Exemption or similar or other appropriate
certificate, form or document. Such elections shall be deemed to be made on the Closing Date.
L. Qualified Tax - Exempt Obligations. The City hereby designates the Certificates as
qualified tax - exempt obligations for purposes of section 265(b) of the Code. In furtherance of
such designation, the Issuer represents, covenants and warrants the following: (a) during the
calendar year in which the Certificates are issued, the City (including any subordinate entities)
has not designated nor will designate obligations, which when aggregated with the Certificates,
will result in more than $10,000,000 of "qualified tax - exempt obligations" being issued; (b) the
City reasonably anticipates that the amount of tax - exempt obligations issued during the calendar
year 2017 . by the City (including any subordinate entities) will not exceed $1.0,000,000; and the
City will take such action or refrain from such action as is necessary in order that the Certificates
will not be considered "private activity bonds" within the meaning of section 1.41 of the Code.
SECTION 28. Control and Custody of Certificates. The Mayor of the City shall be and is
hereby authorized to take and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas and shall take and have charge and
control of the Certificates pending their approval by the Attorney General of the State of Texas,
the registration thereof by the Comptroller of Public Accounts of the State of Texas and the
delivery of the Certificates to the Purchasers.
Furthermore, each Authorized Official, either individually or any combination of them, is
hereby authorized and directed to furnish and execute such documents relating to the City and its
financial affairs as may be necessary for the issuance of the Certificates, the approval of the
Attorney General of the State of Texas and their registration by the Comptroller of Public
Accounts of the State of Texas and, together with the City's financial advisors, Bond Counsel,
and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial
Certificate to the Purchasers and, when requested in writing by the Purchasers, the initial
exchange thereof for definitive Certificates.
SECTION 29. Satisfaction of Obligation of City. If the City shall pay or cause to be
paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and
interest on the Certificates, at the times and in the manner stipulated in this Ordinance, then the
pledge of taxes levied and the lien on and pledge of the Pledged Revenues under this Ordinance
28181190.4 -35-
and all covenants, agreements, and other obligations of the City to the Holders shall thereupon
cease, terminate, and be discharged and satisfied.
Certificates, or any principal amount(s) thereof, shall be deemed to have been paid within
the meaning and with the effect expressed above in this Section when (i) money sufficient to pay
in full such Certificates or the principal amount(s) thereof at Stated Maturity or to the redemption
date therefor, together with all interest due thereon, shall have been irrevocably deposited with
and held in trust by the Paying Agent /Registrar, or an authorized escrow agent, and/or
(ii) Government Securities shall have been irrevocably deposited in trust with the Paying
Agent /Registrar, or an authorized escrow agent, which Government Securities have, in the case
of a net defeasance, been certified by an independent accounting firm to mature as to principal
and interest in such amounts and at such times as will insure the availability, without
reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay
when due the principal of and interest on such Certificates, or the principal amount(s) thereof, on
and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or
waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have
been made) the redemption date thereof for the Certificates. In the event of a gross defeasance of
the Certificates, the City shall deliver a certificate from its financial advisor, the :Paying
Agent /Registrar, or another qualified third party concerning the deposit of cash and /or
Government Securities to pay, when due, the principal of, redemption premium (if any), and
interest due on any defeased Certificate. The City covenants that no deposit of money or
Government Securities will be made under this Section and no use made of any such deposit
which would cause the Certificates to be treated as arbitrage bonds within the meaning of section
148 of the Code (as defined in Section 27 hereof).
Any money so deposited with the Paying Agent /Registrar, and all income from
Government Securities held in trust by the Paying Agent /Registrar, or an authorized escrow
agent, pursuant to this Section which is not required for the payment of the Certificates, or any
principal amount(s) thereof, or interest thereon with respect to which such money has been so
deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any
money held by the Paying Agent /Registrar for the payment of the principal of and interest on the
Certificates and remaining unclaimed for a period of three (3) years after the Stated Maturity of
the Certificates, or applicable redemption date of the Certificates, such money was deposited and
is held in trust to pay shall upon the request of the City be remitted to the City against a written
receipt therefor, subject to the unclaimed property laws of the State of Texas.
Notwithstanding any other provision of this Ordinance to the contrary, it is hereby
provided that any determination not to redeem defeased Certificates that is made in conjunction
with the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable,
provided that: (1) in the proceedings providing for such defeasance, the City expressly reserves
the right to call the defeased Certificates for redemption; (2) gives notice of the reservation of
that right to the owners of the defeased Certificates immediately following the defeasance;
(3) directs that notice of the reservation be included in any redemption notices that it authorizes;
and (4) at the time of the redemption, satisfies the conditions of (i) or (ii) above with respect to
such defeased debt as though it was being defeased at the time of the exercise of the option to
redeem the defeased Certificates, after taking the redemption into account in determining the
sufficiency of the provisions made for the payment of the defeased Certificates.
28181190.4 -36-
SECTION 30. Printed Opinion. The Purchasers' obligation to accept delivery of the
Certificates is subject to their being furnished a final opinion of Norton Rose Fulbright US LLP,
San Antonio, Texas, as Bond Counsel, approving certain legal matters as to the Certificates, this
opinion to be dated and delivered as of the date of initial delivery and payment for such
Certificates. Printing of a true and correct copy of this opinion on the reverse side of each of the
Certificates, with appropriate certificate pertaining thereto executed by facsimile signature of the
City Secretary of the City is hereby approved and authorized.
SECTION 31. CUSIP Numbers. CUSIP numbers may be printed or typed on the
definitive Certificates. It is expressly provided, however, that the presence or absence of CUSIP
numbers on the definitive Certificates shall be of no significance or effect as regards the legality
thereof, and neither the City nor Bond Counsel are to be held responsible for CUSIP numbers
incorrectly printed or typed on the definitive Certificates.
SECTION 32. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.
SECTION 33. Ordinance a Contract, Amendments - Outstanding Certificates. The City
acknowledges that the covenants and obligations of the City herein contained are a material
inducement to the purchase of the Certificates. This Ordinance shall constitute a contract with
the Holders from time to time, binding on the City and its successors and assigns, and it shall not
be amended or repealed by the City so long as any Certificate remains Outstanding except as
permitted in this Section. The City may, without the consent of or notice to any Holders, from
time to time and at any time, amend this Ordinance in any manner not detrimental to the interests
of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or
omission herein. In addition, the City may, with the written consent of Holders holding a
majority in aggregate principal amount of the Certificates then Outstanding affected thereby,
amend, add to, or rescind any of the provisions of this Ordinance; provided, however, that,
without the consent of all Holders of Outstanding Certificates, no such amendment, addition, or
rescission shall (1) extend the time or times of payment of the principal of and interest on the
Certificates, reduce the principal amount thereof or the rate of interest thereon, or in any other
way modify the terms of payment of the principal of, the redemption price therefor, or interest on
the Certificates, (2) give any preference to any Certificate over any other Certificate, or (3)
reduce the aggregate principal amount of Certificates required for consent to any such
amendment, addition, or rescission.
SECTION 34. Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is
intended or shall be construed to confer upon any person other than the City, Bond Counsel,
Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or
by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being
intended to be and being for the sole and exclusive benefit of the City, Bond Counsel, Paying
Agent /Registrar, and the Holders.
SECTION 35. Inconsistent Provisions. All ordinances and resolutions, or parts thereof,
which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to
the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling
as to the matters ordained herein.
28181190.4 -37-
SECTION 36. Governing. This Ordinance shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
SECTION 37. Severability. If any provision of this Ordinance or the application thereof
to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the
application of such provision to other persons and circumstances shall nevertheless be valid, and
the City Council hereby declares that this Ordinance would have been enacted without such
invalid provision.
SECTION 38. Construction of Terms. If appropriate in the context of this Ordinance,
words of the singular number shall be considered to include the plural, words of the plural
number shall be considered to include the singular, and words of the masculine, feminine or
neuter gender shall be considered to include the other genders.
SECTION 39. Incorporation of Preamble Recitals. The recitals contained in the
preamble hereof are hereby found to be true, and such recitals are hereby made a part of this
Ordinance for all purposes and are adopted as a part of the judgment and findings of the City
Council of the City.
SECTION 40. Authorization of Pang Agent/Registrar Agreement. The City Council of
the City hereby finds and determines that it is in the best interest of the City to authorize the
execution of a Paying Agent /Registrar Agreement concerning the payment, exchange,
registration, and transferability of the Certificates. A copy of the Paying Agent /Registrar
Agreement is attached hereto, in substantially final form, as Exhibit A and is incorporated by
reference to the provisions of this Ordinance.
SECTION 41. Public Meeting. It is officially found, determined, and declared that the
meeting at which this Ordinance is adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered at such meeting, including this
Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code.
SECTION 42. Unavailability of Authorized Publication. If, because of the temporary or
permanent suspension of any newspaper, journal, or other publication, or, for any reason,
publication of notice cannot be made meeting any requirements herein established, any notice
required to be published by the provisions of this Ordinance shall be given in such other manner
and at such time or times as in the judgment of the City or of the Paying Agent /Registrar shall
most effectively approximate such required publication and the giving of such notice in such
manner shall for all purposes of this Ordinance be deemed to be in compliance with the
requirements for publication thereof.
SECTION 43. No Recourse Against City Officials. No recourse shall be had for the
payment of principal of, premium, if any, or interest on any Certificate or for any claim based
thereon or on this Ordinance against any official of the City or any person executing any
Certificate.
SECTION 44. Continuing Disclosure Undertaking.
A. Definitions.
28181190.4 -38-
As used in this Section, the following terms have the meanings ascribed to such terms
below:
EMMA means the MSRB's Electronic Municipal Market Access system, accessible by
the general public, without charge, on the internet through the uniform resource locator (URL)
http://www.emma.msrb.org.
MSRB means the Municipal Securities Rulemaking Board.
Rule means SEC Rule 15c2 -1.2, as amended from time to time.
SEC means the United States Securities and Exchange Commission.
B. Annual Reports.
The City shall file annually with the MSRB, (1) within six months after the end of each
fiscal year of the City ending in or after 2017, financial information and operating data with
respect to the City of the general type included in the final Official Statement authorized by
Section 26 of this Ordinance, being the information described in Exhibit D hereto, and (2) if not
provided as part of such financial information and operating data, audited financial statements of
the City, when and if available. Any financial statements so to be provided shall be (i) prepared
in accordance with the accounting principles described in Exhibit D hereto, or such other
accounting principles as the City may be required to employ from time to time pursuant to state
law or regulation, and (ii) audited, if the City commissions an audit of such financial statements
and the audit is completed within the period during which they must be provided. If the audit of
such financial statements is not complete within such period, then the City shall file unaudited
financial statements within such period and audited financial statements for the applicable fiscal
year to the MSRB, when and if the audit report on such financial statements becomes available.
Under current Texas law, including, but not limited to, Chapter 1.03, as amended, Texas Local
Government Code, the City must have its records and accounts audited annually and shall have
an annual financial statement prepared based on the audit. The annual financial statement,
including the auditor's opinion on the statement, shall be filed in the office of the City Secretary
within 180 days after the last day of the City's fiscal year. Additionally, upon the filing of this
financial statement and the annual audit, these documents are subject to the Texas Open Records
Act, as amended, Texas Government Code, Chapter 552.
If the City changes its fiscal year, it will file notice of such change (and of the date of the
new fiscal year end) with the MSRB prior to the next date by which the City otherwise would be
required to provide financial information and operating data pursuant to this Section.
C. Notice of Certain Events.
The City shall file notice of any of the following events with respect to the Certificates to
the MSRB in a timely manner and not more than 10 business days after occurrence of the event:
(1) Principal and interest payment delinquencies;
(2) Non - payment related defaults, if material;
28181190.4 -39-
(3) Unscheduled draws on debt service reserves reflecting financial difficulties;
(4) Unscheduled draws on credit enhancements reflecting financial difficulties;
(5) Substitution of credit or liquidity providers, or their failure to perform;
(6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB), or other
material notices or determinations with respect to the tax status of the Certificates, or other
material events affecting the tax status of the Certificates;
(7) Modifications to rights of holders of the Certificates, if material;
(8) Certificate calls, if material, and tender offers;
(9) Defeasances;
(10) Release, substitution, or sale of property securing repayment of the Certificates, if
material;
(1.1) Rating changes;
(12) Bankruptcy, insolvency, receivership, or similar event of the City, which shall
occur as described below;
(13) The consummation of a merger, consolidation, or acquisition involving the City
or the sale of all or substantially all of its assets, other than in the ordinary course of business, the
entry into of a definitive agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if material; and
(14) Appointment of a successor or additional paying agent /registrar or the change of
name of a paying agent /registrar, if material.
For these purposes, any event described in the immediately preceding paragraph (12) is
considered to occur when any of the following occur: the appointment of a receiver, fiscal agent,
or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any
other proceeding under state or federal law in which a court or governmental authority has
assumed jurisdiction over substantially all of the assets or business of the City, or if such
jurisdiction has been assumed by leaving the existing governing body and officials or officers in
possession but subject to the supervision and orders of a court or governmental authority, or the
entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or
business of the City.
The City shall file notice with the MSRB, in a timely manner, of any failure by the City
to provide financial information or operating data in accordance with this Section by the time
required by this Section.
28181190.4 -40-
D. Limitations Disclaimers and Amendments.
The City shall be obligated to observe and perform the covenants specified in this Section
for so long as, but only for so long as, the City remains an "obligated person" with respect to the
Certificates within the meaning of the Rule, except that the City in any event will give notice of
any deposit that causes the Certificates to be no longer Outstanding.
The provisions of this Section are for the sole benefit of the holders and beneficial
owners of the Certificates, and nothing in this Section, express or implied, shall give any benefit
or any legal or equitable right, remedy, or claim hereunder to any other person. The City
undertakes to provide only the financial information, operating data, financial statements, and
notices which it has expressly agreed to provide pursuant to this Section and does not hereby
undertake to provide any other information that may be relevant or material to a complete
presentation of the City's financial results, condition, or prospects or hereby undertake to update
any information provided in accordance with this Section or otherwise, except as expressly
provided herein. The City does not make any representation or warranty concerning such
information or its usefulness to a decision to invest in or sell Certificates at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER
OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN
CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM
ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITH OR WITHOUT FAULT
ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT
AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON
ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR
MANDAMUS OR SPECIFIC PERFORMANCE.
No default by the City in observing or performing its obligations under this Section shall
constitute a breach of or default under this Ordinance for purposes of any other provision of this
Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the
duties of the City under federal and state securities laws.
The provisions of this Section may be amended by the City from time to time to adapt to
changed circumstances that arise from a change in legal requirements, a change in law, or a
change in the identity, nature, status, or type of operations of the City, but only if (1) the
provisions of this Section, as so amended, would have permitted an underwriter to purchase or
sell. Certificates in the primary offering of the Certificates in compliance with the Rule, taking
into account any amendments or interpretations of the Rule to the date of such amendment, as
well as such changed circumstances, and (2) either (a) the holders of a majority in aggregate
principal amount (or any greater amount required by any other provision of this Ordinance that
authorizes such an amendment) of the Outstanding Certificates consent to such amendment or
(b) a person that is unaffiliated with the City (such as nationally recognized bond counsel)
determines that such amendment will not materially impair the interests of the holders and
beneficial owners of the Certificates. The City may also repeal or amend the provisions of this
Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final
28181190.4 -41-
jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may
amend the provisions of this Section in its discretion in any other manner or circumstance, but in
either case only if and to the extent that the provisions of this sentence would not have prevented
an underwriter from lawfully purchasing or selling Certificates in the primary offering of the
Certificates, giving effect to (a) such provisions as so amended and (b) any amendments or
interpretations of the Rule. If the City so amends the provisions of this Section, the City shall
include with any amended financial information or operating data next provided in accordance
with this Section an explanation, in narrative form, of the reasons for the amendment and of the
impact of any change in the type of financial information or operating data so provided.
E. Information Format — Incorporation by Reference.
The City information required under this Section shall be filed with the MSRB through
EMMA in such format and accompanied by such identifying information as may be specified
from time to time thereby. Under the current rules of the MSRB, continuing disclosure
documents submitted to EMMA must be in word - searchable portable document format (PDF)
files that permit the document to be saved, viewed, printed, and retransmitted by electronic
means and the series of obligations to which such continuing disclosure documents relate must
be identified by CUSIP number or numbers.
Financial information and operating data to be provided pursuant to this Section may be
set forth in full in one or more documents or may be included by specific reference to any
document (including an official statement or other offering document) available to the public
through EMMA or filed with the SEC.
SECTION 45. Book -Entry OnlySystem.
It is intended that the Certificates will initially be registered so as to participate in a
securities depository system (the DTC System) with the Depository Trust Company, New York,
New York, or any successor entity thereto (DTC), as set forth herein. Each Stated Maturity of
the Certificates shall be issued (following cancellation of the Initial Certificates described in
Section 7) in the form of a single definitive Certificate. Upon issuance, the ownership of each
such Certificate shall be registered in the name of Cede & Co., as the nominee of DTC, and all of
the Outstanding Certificates shall be registered in the name of Cede & Co., as the nominee of
DTC. The City and the Paying Agent /Registrar are authorized to execute, deliver, and take the
actions set forth in such letters to or agreements with DTC as shall be necessary to effectuate the
DTC System, including the Letter of Representations attached hereto as Exhibit D (the
Representation Letter).
With respect to the Certificates registered in the name of Cede & Co., as nominee of
DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any
broker - dealer, bank, or other financial institution for which DTC holds the Certificates from time
to time as securities depository (a Depository Participant) or to any person on behalf of whom
such a Depository Participant holds an interest in the Certificates (an Indirect Participant).
Without limiting the immediately preceding sentence, the City and the Paying Agent /Registrar
shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC,
Cede & Co., or any Depository Participant with respect to any ownership interest in the
28181190.4 -42-
Certificates, (ii) the delivery to any Depository Participant or any other person, other than a
registered owner of the Certificates, as shown on the Security Register, of any notice with
respect to the Certificates, including any notice of redemption, or (iii) the delivery to any
Depository Participant or any Indirect Participant or any other Person, other than a Holder of a
Certificate, of any amount with respect to principal of, premium, if any, or interest on the
Certificates. While in the DTC System, no person other than Cede & Co., or any successor
thereto, as nominee for DTC, shall receive a bond certificate evidencing the obligation of the
City to make payments of principal, premium, if any, and interest pursuant to this Ordinance.
Upon delivery by DTC to the Paying Agent /Registrar of written notice to the effect that DTC has
determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in
this Ordinance with respect to interest checks or drafts being mailed to the Holder, the word
"Cede & Co." in this Ordinance shall refer to such new nominee of DTC.
In the event that (a) the City determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (b) the Representation Letter
shall be terminated for any reason, or (c) DTC or the City determines that it is in the best interest
of the beneficial owners of the Certificates that they be able to obtain certificated Certificates, the
City shall notify the Paying Agent/Registrar, DTC, and the Depository Participants of the
availability within a reasonable period of time through DTC of bond certificates, and the
Certificates shall no longer be restricted to being registered in the name of Cede & Co., as
nominee of DTC. At that time, the City may determine that the Certificates shall be registered in
the name of and deposited with a successor depository operating a securities depository system,
as may be acceptable to the City, or such depository's agent or designee, and if the City and the
Paying Agent/Registrar do not select such alternate securities depository system then the
Certificates may be registered in whatever name or names the Holders of Certificates transferring
or exchanging the Certificates shall designate, in accordance with the provisions hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Certificate is registered in the name of Cede & Co., as nominee of DTC, all payments with
respect to principal of, premium, if any, and interest on such Certificate and all notices with
respect to such Certificate shall be made and given, respectively, in the manner provided in the
Representation Letter.
SECTION 46. Further Procedures. The officers and employees of the City are hereby
authorized, empowered and directed from time to time and at any time to do and perform all such
acts and things and to execute, acknowledge and deliver in the name and under the corporate seal
and on behalf of the City all such instruments, whether or not herein mentioned, as may be
necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial
sale and delivery of the Certificates, the Official Bid Form, the Paying Agent /Registrar
Agreement, and the Official. Statement. In addition, prior to the initial delivery of the
Certificates, any Authorized Official and Bond Counsel are hereby authorized and directed to
approve any technical changes or corrections to this Ordinance or to any of the instruments
authorized and approved by this Ordinance and as described in the Official Statement necessary
in order to (i) correct any ambiguity or mistake or properly or more completely document the
transactions contemplated and approved by this Ordinance, (ii) obtain a rating from any of the
national bond rating agencies, or (iii) obtain the approval of the Certificates by the Texas
Attorney General's office. In case any officer of the City whose signature shall appear on any
28181190.4 -43-
certificate shall cease to be such officer before the delivery of such certificate, such signature
shall nevertheless be valid and sufficient for all purposes the same as if such officer had
remained in office until such delivery.
SECTION 47. Contracts with Financial Advisor and /or Bond Counsel. The City Council
authorizes the Mayor, the Mayor :Pro Tem, and/or the City Manager, or their designees, to take
all actions necessary to execute any necessary financial advisory contracts with SAMCO Capital
Markets, Inc., as the financial advisor to the City (the Financial Advisor). The City understands
that under applicable federal securities laws and regulations that the City must have a contractual
arrangement with its Financial. Advisor relating to the sale, issuance, and delivery of the
Certificates. In addition, the City Council also authorizes the Mayor, the Mayor Pro Tem, and /or
the City Manager, or their designees, to take all actions necessary to execute any necessary
engagement agreement with Norton Rose Fulbright US LLP, as the Bond Counsel to the City.
SECTION 48. City's Consent to Provide Information and Documentation to the Texas
MAC. The Municipal Advisory Council of Texas (the Texas MAC), a non - profit membership
corporation organized exclusively for non -profit purposes described in section 501(c)(6) of the
Internal Revenue Code and which serves as a comprehensive financial information repository
regarding municipal debt issuers in Texas, requires provision of written documentation regarding
the issuance of municipal debt by the issuers thereof. In support of the purpose of the Texas
MAC and in compliance with applicable law, the City hereby consents to and authorizes any
Authorized Official, Bond Counsel to the City, and /or Financial Advisor to the City to provide to
the Texas MAC information and documentation requested by the Texas MAC relating to the
Certificates; provided, however, that no such information and documentation shall be provided
prior to the Closing Date. This consent and authorization relates only to information and
documentation that is a part of the public record concerning the issuance of the Certificates.
SECTION 49. Effective Date. Pursuant to the provisions of Section 1201.028, as
amended, Texas Government Code, this Ordinance shall be effective immediately upon
adoption, notwithstanding any provision in the City's Home Rule Charter to the contrary
concerning a multiple reading requirement for the adoption of ordinances.
[The remainder of this page intentionally left blank.]
28181190.4 -44-
CITY OF SCHERTZ, TEXAS
Mayor
ATTEST:
City Secretary
(CITY SEAL)
28181190.4 S -1
"O1 �I�M
Exhibit A Paying Agent/Registrar Agreement
Exhibit B Official Bid Form
Exhibit C Description of Annual Financial Information
Exhibit D DTC Letter of Representations
28181190.4 S-I
imall
PAYING AGENT /REGISTRAR AGREEMENT
See Tab No.
28181190.4 A -1
OFFICIAL BID FORM
See Tab No.
28181190.4 B -1
imall
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 44 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided
annually in accordance with such Section are as specified (and included in the Appendix or
under the headings of the Official Statement referred to) below:
(1) The City's audited financial statements for the most recently concluded fiscal year
or to the extent these audited financial statements are not available, the portions of the unaudited
financial statements of the City attached to the Official Statement as Appendix D, but for the
most recently concluded fiscal year.
(2) The information in the Official Statement under Table 1 of the Official Statement
and Tables 1 through 10 of Appendix A to the Official Statement.
Accounting Principles
The accounting principles referred to in such Section are generally accepted accounting
principles for governmental units as prescribed by the Government Accounting Standards Board
from time to time.
28181190.4 C -1
imall
1
DTC LETTER OF REPRESENTATIONS
SEE TAB NO.
28181190.4 D -1
Agenda No. 5
CITY COUNCIL MEMORANDUM
City Council Meeting: May 23, 2017
Department: Finance
Subject: CONSIDERATION AND APPROVAL OF AN ORDINANCE
AUTHORIZING THE ISSUANCE OF "CITY OF SCHERTZ,
TEXAS GENERAL OBLIGATION BONDS, SERIES 2017 ";
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; AND
PROVIDING FOR AN EFFECTIVE DATE
The voters authorized the City to issue $15,000,000 for street and bridge improvements and
public safety facilities at an election held November 3, 2015. The Council is requested to
authorize City staff and consultants to proceed with the sale of approximately $4,000,000
General Obligation Bonds, Series 2017. The Proceeds will be used for the construction of Fire
Station No. 3. The Bonds will be amortized over 20 years and will be callable by the City in 10
years as is customary for a financing of this size.
This is the second sale of bonds on the $15,000,000 authorized by voters. The first sale was on
August 2, 20] 6 for $6,000,000. If council authorizes the sale of an additional $4,000,000 tonight,
the total remaining unsold bonds from the 2015 bond election would be $5,000,000.
FISCAL IMPACT
The issuance of the Bonds should not result in a tax rate increase. The proceeds will be
delivered to the City on June 20th. The Bonds are being issued at the same time as the
Certificates of Obligation, to be discussed in greater detail under separate agenda items to follow.
When the CO's are approved, along with this GO Bond, it is estimated that there will be little to
no impact on the I &S Tax Rate.
RECOMMENDATION
Staff recommends authorizing the sale of the Bonds to the competitive low bidder.
ATTACHMENT(S)
Ordinance No. 17 -B -17
DRAFT 4/24/2017
ORDINANCE NO. 17 -B -17
AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY OF
SCHERTZ, TEXAS GENERAL OBLIGATION BONDS, SERIES 2017 ";
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; AND PROVIDING
FOR AN EFFECTIVE DATE
WHEREAS, the City Council (the Governing Body) of the City of Schertz, Texas (the
Issuer or the City) hereby finds and determines that general obligation bonds of the Issuer in the
total amount of $ , being the principal amount of $ and a portion
of premium of $ of the hereinafter defined voter authorization should be issued and
sold at this time, being the second installment of general obligation bonds approved and
authorized to be issued at an election held on November 3, 2015, the respective authorized
purposes and amounts authorized to be issued therefor, amounts previously issued, amounts
being issued pursuant to this ordinance, and amounts remaining to be issued from such voted
authorizations subsequent to the date hereof being as follows:
Date
Voted
Purpose
Amount
Authorized
Previously
Issued
Bonds
Bonds
Issued
Herein
Premium
Allocated
to Voted
Authority
Amount
Unissued
11/03/15
Designing, acquiring,
$7,000,000
$2,000,000
$0.00
$0.00
$0.00
constructing, renovating,
improving, and equipping City
street (primarily FM 1103 and
FM 1518), curb, sidewalk, and
gutter improvements,
demolition, repair, and
rebuilding of new and existing
streets, completing necessary or
incidental utility relocation and
drainage in connection with the
foregoing and the purchase of
land, easements, rights -of -way,
28181154.4
Date
Amount
Previously
Bonds
Premium
Amount
Voted
Purpose
Authorized
Issued
Issued
Allocated
Unissued
Bonds
Herein
to Voted
Authority
and other real property interests
necessary therefor or incidental
thereto
1.1/03/1.5
Acquiring, constructing,
$8,000,000
$4,000,000
$
$
$
improving, renovating, and
equipping public safety
facilities (to include a new fire
station), acquiring lands and
rights-of-way necessary
thereto, and completing related
landscaping
WHEREAS, the Governing Body intends to issue an aggregate principal amount of
$ in general obligation bonds the proceeds of which will be utilized for the
purposes of (i) making permanent public improvements and for public purposes as hereinafter
described; and (ii) payment of costs of issuance of the general improvement bonds; and
WHEREAS, the Governing Body hereby finds and determines that issuance of the
general obligation bonds is in the best interests of the residents of the City, now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
SECTION l: Authorization - Designation - Principal Amount - Purpose. General
obligation bonds of the Issuer shall be and are hereby authorized to be issued in the aggregate
principal amount of AND NO /100
DOLLARS ($ ) to be designated and bear the title "City of Schertz, Texas
General Obligation Bonds, Series 2017" (the Bonds), for the purpose of providing funds for:
(i) acquiring, constructing, improving, renovating, and equipping public safety facilities (to
include a new fire station), acquiring lands and rights -of -way necessary thereto, and completing
related landscaping, and (ii) paying the costs related to the issuance of the general obligation
bonds, all in conformity with the laws of the State of Texas, particularly Chapters 1251 and
1331, as amended, Texas Government Code, this ordinance adopted by the Governing Body on
May 23, 2017, the election referenced in the preamble to this Ordinance, and the Issuer's Home
Rule Charter.
SECTION 2: Fullv Reizistered Bonds - Authorized Denominations - Stated
Maturities - Interest Rates — Dated Date. The Bonds are issuable in fully registered form only;
shall be dated May 15, 2017 (the Bond Date) and shall be issued in denominations of $5,000 or
any integral multiple thereof (within a Stated Maturity), shall be lettered "R" and numbered
consecutively from One (1) upward; and the Bonds shall become due and payable on February 1
in each of the years and in principal amounts (the Stated Maturities) and bear interest on the
unpaid principal amounts from the Bond Date, or from the most recent Interest Payment Date
28181154.4 -2-
(hereinafter defined) to which interest has been paid or duly provided for, to the earlier of
redemption or Stated Maturity, at the per annum rates, while Outstanding (hereinafter defined),
in accordance with the following schedule:
Years of Principal Interest
Stated Maturity Amounts ($) Rates
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
The Bonds shall bear interest on the unpaid principal amounts from the Bond Date, or
from the most recent Interest Payment Date (hereinafter defined) to which interest has been paid
or duly provided for to Stated Maturity or prior redemption, while Outstanding, at the rates per
annum shown in the above schedule (calculated on the basis of a 360 -day year of twelve 30 -day
months). Interest on the Bonds shall be payable on February 1 and August I in each year (each,
an Interest Payment Date), commencing February 1, 2018, while the Bonds are Outstanding.
SECTION 3: Payment of Bonds - Paying A eng t /Re ig strar. The principal of, premium,
if any, and the interest on the Bonds, due and payable by reason of Stated Maturity, redemption,
or otherwise, shall be payable, without exchange or collection charges to the Holder (as
hereinafter defined), appearing on the registration and transfer books maintained by the Paying
Agent /Registrar (hereinafter defined), in any coin or currency of the United States of America
which at the time of payment is legal tender for the payment of public and private debts, and
such payment of principal of, premium, if any, and interest on the Bonds shall be without
exchange or collection charges to the Holder (as hereinafter defined) of the Bonds.
The selection and appointment of BOKF, NA, Austin, Texas, to serve as the initial
Paying Agent/Registrar (the Paying Agent /Registrar) for the Bonds is hereby approved and
confirmed, and the Issuer agrees and covenants to cause to be kept and maintained at the
corporate trust office of the Paying Agent/Registrar books and records (the Security Register) for
28181154.4 -3-
the registration, payment, and transfer of the Bonds, all as provided herein, in accordance with
the terms and provisions of a Paying Agent /Registrar Agreement, attached hereto in substantially
final form as Exhibit A, and such reasonable rules and regulations as the Paying Agent/Registrar
and the Issuer may prescribe. The Issuer covenants to maintain and provide a Paying
Agent /Registrar at all times while the Bonds are Outstanding, and any successor Paying
Agent /Registrar shall be (i) a national or state banking institution, or (ii) an association or a
corporation organized and doing business under the laws of the United States of America or of
any state, authorized under such laws to exercise trust powers. Such Paying Agent /Registrar
shall be subject to supervision or examination by federal or state authority and shall be
authorized by law to serve as a Paying Agent /Registrar.
The Issuer reserves the right to appoint a successor Paying Agent /Registrar upon
providing the previous Paying Agent /Registrar with a certified copy of a resolution or ordinance
terminating such agency. Additionally, the Issuer agrees to promptly cause a written notice of
this substitution to be sent to each Holder of the Bonds by United States mail, first -class postage
prepaid, which notice shall also give the address of the corporate office of the successor Paying
Agent /Registrar.
Principal of, premium, if any, and interest on the Bonds, due and payable by reason of
Stated Maturity, redemption, or otherwise, shall be payable only to the registered owner of the
Bonds (the Folder or Holders) appearing on the Security Register maintained on behalf of the
Issuer by the Paying Agent /Registrar as hereinafter provided (i) on the Record Date (hereinafter
defined) for purposes of paying interest thereon, (ii) on the date of surrender of the Bonds for
purposes of receiving payment of principal thereof upon redemption of the Bonds or at the
Bonds' Stated Maturity, and (iii) on any other date for any other purpose. The Issuer and the
Paying Agent /Registrar, and any agent of either, shall treat the Holder as the owner of a Bond for
purposes of receiving payment and all other purposes whatsoever, and neither the Issuer nor the
Paying Agent /Registrar, or any agent of either, shall be affected by notice to the contrary.
Principal of and premium, if any, on the Bonds, shall be payable only upon presentation
and surrender of the Bonds to the Paying Agent/Registrar at its corporate trust office. Interest on
the Bonds shall be paid to the Holder whose name appears in the Security Register at the close of
business on the fifteenth day of the month next preceding an Interest Payment Date for the Bonds
(the Record Date) and shall be paid (i) by check sent on or prior to the appropriate date of
payment by United States mail, first -class postage prepaid, by the Paying Agent /Registrar, to the
address of the Holder appearing in the Security Register or (ii) by such other method, acceptable
to the Paying Agent /Registrar, requested in writing by the Holder at the Holder's risk and
expense.
If the date for the payment of the principal of, premium, if any, or interest on the Bonds
shall be a Saturday, a Sunday, a legal holiday, or a day on which banking institutions in the
Issuer where the corporate trust office of the Paying Agent /Registrar is located are authorized by
law or executive order to close, then the date for such payment shall be the next succeeding day
which is not such a day. The payment on such date shall have the same force and effect as if
made on the original date any such payment on the Bonds was due.
28181154.4 -4-
In the event of a non - payment of interest on a scheduled payment date, and for thirty (30)
days thereafter, a new record date for such interest payment (a Special Record Date) will be
established by the Paying Agent /Registrar, if and when funds for the payment of such interest
have been received from the Issuer. Notice of the Special Record Date and of the scheduled
payment date of the past due interest (the Special Payment Date - -which shall be fifteen (15) days
after the Special Record Date) shall be sent at least five (5) business days prior to the Special
Record Date by United States mail, first -class postage prepaid, to the address of each Holder
appearing on the Security Register at the close of business on the last business day next
preceding the date of mailing of such notice.
SECTION 4: Redemption.
A. Mandatory Redemption. The Bonds stated to mature on February 1, 20_, are
referred to herein as the "Term Bonds ". The Term Bonds are subject to mandatory sinking fund
redemption prior to their stated maturities from money required to be deposited in the Bond Fund
for such purpose and shall be redeemed in part, by lot or other customary method, at the
principal amount thereof plus accrued interest to the date of redemption in the following
principal amounts on February 1 in each of the years as set forth below:
Term Bonds
Stated to Mature
on February 1, 20
Principal.
Year Amount (S)
*Payable at Stated Maturity
The principal amount of a Term. Bond required to be redeemed pursuant to the operation
of such mandatory redemption provisions shall be reduced, at the option of the Issuer, by the
principal amount of any Term Bonds of such Stated Maturity which, at least fifty (50) days prior
to the mandatory redemption date (1) shall have been defeased or acquired by the Issuer and
delivered to the Paying Agent /Registrar for cancellation, (2) shall have been purchased and
canceled by the Paying Agent /Registrar at the request of the Issuer with money in the Bond
Fund, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth
below and not theretofore credited against a mandatory redemption requirement.
28181154.4 -5-
B. Optional Redemption of Bonds. The Bonds having Stated Maturities on and after
February 1, 2028 shall be subject to redemption prior to Stated Maturity, at the option of the
Issuer, on February 1, 2027, or on any date thereafter, in whole or in part, in principal amounts of
$5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and
by lot by the Paying Agent /Registrar), at the redemption price of par plus accrued interest to the
date of redemption.
C. Exercise of Redemption Option. At least forty -five (45) days prior to a date set
for the redemption of Bonds (unless a shorter notification period shall be satisfactory to the
Paying Agent /Registrar), the Issuer shall notify the :Paying Agent /Registrar of its decision to
exercise the right to redeem the Bonds, the principal amount of each Stated Maturity to be
redeemed, and the date set for the redemption thereof. The decision of the Issuer to exercise the
right to redeem the Bonds shall be entered in the minutes of the governing body of the Issuer.
D. Selection of Bonds for Redemption. If less than all Outstanding Bonds of the
same Stated Maturity are to be redeemed on a redemption date, the Paying Agent /Registrar shall
select at random and by lot the Bonds to be redeemed, provided that if less than the entire
principal amount of a Bond is to be redeemed, the Paying Agent /Registrar shall treat such Bond
then subject to redemption as representing the number of Bonds Outstanding which is obtained
by dividing the principal amount of such Bond by $5,000.
E. Notice of Redemption. Not less than thirty (30) days prior to a redemption date
for the Bonds, the Paying Agent/Registrar shall cause a notice of redemption to be sent by
United States mail, first - class postage prepaid, in the name of the Issuer and at the Issuer's
expense, by the Paying Agent /Registrar to each Holder of a Bond to be redeemed, in whole or in
part, at the address of the Holder appearing on the Security Register at the close of business on
the business day next preceding the date of mailing such notice, and any notice of redemption so
mailed shall be conclusively presumed to have been duly given irrespective of whether received
by the Holder. This notice may also be published once in a financial publication, journal, or
reporter of general circulation among securities dealers in the City of New York, New York
(including, but not limited to, The Bond Buyer and The Wall Street Journal), or in the State of
Texas (including, but not limited to, The Texas Bond Reporter).
All notices of redemption shall (i) specify the date of redemption for the Bonds,
(ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be
redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state
that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due
and payable on the redemption date specified, and the interest thereon, or on the portion of the
principal amount thereof to be redeemed, shall cease to accrue from and after the redemption
date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount
thereof to be redeemed, shall be made at the corporate trust office of the Paying Agent/Registrar
only upon presentation and surrender thereof by the Holder.
If a Bond is subject by its terms to redemption and has been called for redemption and
notice of redemption thereof has been duly given or waived as herein provided, such Bond (or
the principal amount thereof to be redeemed) so called for redemption shall become due and
payable, and if money sufficient for the payment of such Bonds (or of the principal amount
28181154.4 -6-
thereof to be redeemed) at the then applicable redemption price is held for the purpose of such
payment by the Paying Agent /Registrar, then on the redemption date designated in such notice,
interest on the Bonds (or the principal amount thereof to be redeemed) called for redemption
shall cease to accrue and such Bonds shall not be deemed to be Outstanding in accordance with
the provisions of this Ordinance.
F. Transfer /Exchange of Bonds. Neither the Issuer nor the Paying Agent /Registrar
shall be required (1) to transfer or exchange any Bond during a period beginning forty -five (45)
days prior to the date fixed for redemption of the Bonds or (2) to transfer or exchange any Bond
selected for redemption, provided, however, such limitation of transfer shall not be applicable to
an exchange by the Holder of the unredeemed balance of a Bond which is subject to redemption
in part.
SECTION 5: Execution - Registration. The Bonds shall be executed on behalf of the
Issuer by its Mayor or Mayor Pro Tem under the seal of the Issuer reproduced or impressed
thereon and attested by its City Secretary. The signature of any of said officers on the Bonds
may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals
who were, at the time of the Bond Date, the proper officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or either of them shall cease to hold such offices prior to
the delivery of the Bonds to the Purchasers (hereinafter defined), all as authorized and provided
in Chapter 1201, . as amended, Texas Government Code.
No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or
obligatory for any purpose, unless there appears on such Bond either a certificate of registration .
substantially in the form provided in Section 8C, executed by the Comptroller of Public
Accounts of the State of Texas or his duly authorized agent by manual signature, or a certificate
of registration substantially in the form provided in Section 8D, executed by the Paying
Agent /Registrar by manual signature, and either such certificate upon any Bond shall be
conclusive evidence, and the only evidence, that such Bond has been duly certified or registered
and delivered.
SECTION 6: Registration - Transfer - Exchange of Bonds - Predecessor Bonds. A
Security Register relating to the registration, payment, transfer, or exchange of the Bonds shall at
all times be kept and maintained by the Issuer at the corporate trust office of the Paying
Agent /Registrar, and the Paying Agent /Registrar shall obtain, record, and maintain in the
Security Register the name and address of each Holder of the Bonds issued under and pursuant to
the provisions of this Ordinance. Any Bond may, in accordance with its terms and the terms
hereof, be transferred or exchanged for Bonds of other authorized denominations upon the
Security Register by the Holder, in person or by his duly authorized agent, upon surrender of
such Bond to the Paying Agent /Registrar for cancellation, accompanied by a written instrument
of transfer or request for exchange duly executed by the Holder or by his duly authorized agent,
in form satisfactory to the Paying Agent /Registrar.
Upon surrender for transfer of any Bond at the corporate trust office of the Paying
Agent /Registrar, the Paying Agent /Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Bonds executed on behalf of, and
28181 154.4 -7-
furnished by, the Issuer of authorized denominations and having the same Stated Maturity and of
a like interest rate and aggregate principal amount as the Bond or Bonds surrendered for transfer.
At the option of the Holder, Bonds may be exchanged for other Bonds of authorized
denominations and having the same Stated Maturity, bearing the same rate of interest, and of like
aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds
to be exchanged at the corporate trust office of the Paying Agent/ Registrar. Whenever any
Bonds are so surrendered for exchange, the Issuer shall execute and the Paying Agent/Registrar
shall register and deliver new Bonds executed on behalf of, and furnished by, the Issuer to the
Holder requesting the exchange.
All Bonds issued upon any transfer or exchange of Bonds shall be delivered at the
corporate trust office of the Paying Agent/Registrar, or be sent by United States registered mail
to the Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be
the valid and binding obligations of the Issuer, evidencing the same obligation to pay, and
entitled to the same benefits under this Ordinance, as the Bonds surrendered upon such transfer
or exchange.
All transfers or exchanges of Bonds pursuant to this Section shall be made without
expense or service charge to the Holder, except as otherwise herein provided, and except that the
Paying Agent /Registrar shall require payment by the Holder requesting such transfer or exchange
of any tax or other governmental charges required to be paid with respect to such transfer or
exchange.
Bonds canceled by reason of an exchange or transfer pursuant to the provisions hereof are
hereby defined to be "Predecessor Bonds ", evidencing all or a portion, as the case may be, of the
same debt evidenced by the new Bond or Bonds registered and delivered in the exchange or
transfer therefor. Additionally, the term Predecessor Bonds shall include any Bond registered
and delivered pursuant to Section 1.6 in lieu of a mutilated, lost, destroyed, or stolen :Bond which .
shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond.
SECTION 7: Initial Bond. The Bonds herein authorized shall be issued initially either
(i) as a fully registered Bond in the total principal amount of $ with principal
installments to become due and payable as provided in Section 2 and numbered T -1, or (ii) as
one (1) fully registered Bond for each year of Stated Maturity in the applicable principal amount,
interest rate, and denomination and to be numbered consecutively from T -1 and upward (the
Initial Bond and, in either case, the Initial Bond shall be registered in the name of the Purchasers
or the designee thereof. The Initial Bond shall be the Bonds submitted to the Office of the
Attorney General of the State of Texas for approval and certified and registered by the Office of
the Comptroller of Public Accounts of the State of Texas and delivered to the Purchasers. Any
time after the delivery of the Initial Bond to the Purchasers, the Paying Agent /Registrar, upon
written instructions from the Purchasers, or the designee thereof, shall cancel the Initial. Bond
delivered hereunder and exchange therefor definitive Bonds of like kind and of authorized
denominations, Stated Maturities, principal amounts bearing applicable interest rates and shall be
lettered "R" and numbered consecutively from one (1) upward for transfer and delivery to the
Holders named and at the addresses identified therefor; all pursuant to and in accordance with
28181154.4 -8-
and pursuant to such written instructions from the Purchasers, or the designee thereof, and such
other information and documentation as the Paying Agent /Registrar may reasonably require.
SECTION 8: Forms.
A. Forms Generally. The Bonds, the Registration Certificate of the Comptroller of
Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar,
and the form of Assignment to be printed on each of the Bonds shall be substantially in the forms
set forth in this Section with such appropriate insertions, omissions, substitutions, and other
variations as are permitted or required by this Ordinance and may have such letters, numbers, or
other marks of identification (including insurance legends in the event the Bonds, or any Stated
Maturities thereof, are insured and any reproduction of an opinion of Bond Counsel (hereinafter
referenced)) and identifying numbers and letters of the Committee on Uniform Securities
Identification Procedures of the American Bankers Association) and such legends and
endorsements (including insurance legends and any reproduction of an opinion of Bond Counsel)
thereon as may, consistent herewith, be established by the Issuer or determined by the officers
executing the Bonds as evidenced by their execution thereof. Any portion of the text of any
Bond may be set forth on the reverse thereof, with an appropriate reference thereto on the face of
the Bond.
The definitive Bonds shall be printed, lithographed, or engraved, produced by any
combination of these methods, or produced in any other similar manner, all as determined by the
officers executing the Bonds as evidenced by their execution thereof, but the Initial Bond
submitted to the Attorney General of the State of Texas may be typewritten or photocopied or
otherwise reproduced.
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28181154.4 -9-
B. Form of Definitive Bond.
United States of America
State of Texas
REGISTERED
Counties of Bexar, Comal, and Guadalupe
CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION BONDS, SERIES 2017
Dated Date:
May 15, 2017
PRINCIPAL AMOUNT:
Interest Rate: Stated Maturity: CUSIP No.:
DOLLARS
The City of Schertz, Texas (the Issuer), a body corporate and a municipal corporation
located in the Counties of Bexar, Comal, and Guadalupe, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner
named above (the Holder), or the registered assigns thereof, on the Stated Maturity date specified
above, the Principal Amount specified above (or so much thereof as shall not have been paid
upon prior redemption) and to pay interest on the unpaid Principal Amount hereof (computed on
the basis of a 360-day year of twelve 30-day months) from the Bond Date or from the most
recent Interest Payment Date (hereinafter defined) to which interest has been paid or duly
provided for until such Principal Amount has become due and payment thereof has been made or
duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rate of
interest specified above; such interest being payable on February I and August I of each year
(each, an Interest Payment Date), commencing February 1, 2018.
Principal and premium, if any, of this Bond shall be payable to the Registered Owner
hereof (the Holder), upon presentation and surrender, at the corporate trust office of the Paying
Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest
shall be payable to the Holder of this Bond (or one or more Predecessor Bonds, as defined in the
Ordinance hereinafter referenced) whose name appears on the Security Register maintained by
the Paying Agent/Registrar at the close of business on the Record Date, which is the fifteenth
day of the month next preceding the Interest Payment Date. All payments of principal of,
premium, if any, and interest on this Bond shall be in any coin or currency of the United States
of America which at the time of payment is legal tender for the payment of public and private
debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the
appropriate date of payment by United States mail, first-class postage prepaid, to the Holder
hereof at the address appearing in the Security Register or by such other method, acceptable to
the Paying Agent/Registrar, requested by the Holder hereof at the Holder's risk and expense.
28181154.4
This Bond is one of the series specified in its title issued in the aggregate principal
amount of $ (the Bonds) pursuant to an ordinance adopted by the Governing
Body of the Issuer (the Ordinance), for the purpose of (i) acquiring, constructing, improving,
renovating, and equipping public safety facilities (to include a new fire station), acquiring lands
and rights -of -way necessary thereto, and completing related landscaping, and (ii) paying the
costs related to the issuance of the general obligation bonds, all in conformity with the laws of
the State of Texas, particularly Chapters 1.251 and 1331 as amended, Texas Government Code,
an election held in the Issuer on November 3, 2015, the Issuer's Home Rule Charter, and the
Ordinance.
As specified in the Ordinance, the Bonds stated to mature on February 1, 20_, are
referred to herein as the "Term Bonds ". The Term Bonds are subject to mandatory sinking fund
redemption prior to their stated maturities from money required to be deposited in the Bond Fund
for such purpose and shall be redeemed in part, by lot or other customary method, at the
principal amount thereof plus accrued interest to the date of redemption in the following
principal amounts on February 1 in each of the years as set forth below:
Term Bonds
Stated to Mature
on February 1, 20
Principal
Year Amount ($)
*Payable at Stated Maturity
The principal amount of a Term Bond required to be redeemed pursuant to the operation
of such mandatory redemption provisions shall be reduced, at the option of the Issuer, by the
principal amount of any Term Bonds of such Stated Maturity which, at least fifty (50) days prior
to the mandatory redemption date (1) shall have been defeased or acquired by the Issuer and
delivered to the Paying Agent /Registrar for cancellation, (2) shall have been purchased and
canceled by the Paying Agent /Registrar at the request of the Issuer with money in the Bond
Fund, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth
below and not theretofore credited against a mandatory redemption requirement.
As specified in the Ordinance, the Bonds having Stated Maturities on and after
February 1, 2028 shall be subject to redemption prior to Stated Maturity, at the option of the
Issuer, on February 1, 2027, or on any date thereafter, in whole or in part, in principal amounts of
$5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and
by lot by the Paying Agent /Registrar), at the redemption price of par plus accrued interest to the
date of redemption and upon thirty (30) days prior written notice being given by United States
mail, first -class postage prepaid, to Holders of the Bonds to be redeemed, and subject to the
terms and provisions relating thereto contained in the Ordinance. If this Bond is subject to
redemption prior to Stated Maturity and is in a denomination in excess of $5,000, portions of the
28181154.4 -11-
principal sum hereof in installments of $5,000 or any integral multiple thereof may be redeemed,
and, if less than all of the principal sum hereof is to be redeemed, there shall be issued, without
charge therefor, to the Holder hereof, upon the surrender of this Bond to the Paying
Agent /Registrar at its corporate trust office, a new Bond or Bonds of like Stated Maturity and
interest rate in any authorized denominations provided in the Ordinance for the then unredeemed
balance of the principal sum hereof.
If this Bond (or any portion of the principal sum hereof) shall have been duly called for
redemption and notice of such redemption has been duly given, then upon such redemption date
this Bond (or the portion of the principal sum hereof to be redeemed) shall become due and
payable, and, if the money for the payment of the redemption price and the interest accrued on
the principal amount to be redeemed to the date of redemption is held for the purpose of such
payment by the Paying Agent /Registrar, interest shall cease to accrue and be payable hereon
from and after the redemption date on the principal amount hereof to be redeemed. If this Bond
is called for redemption, in whole or in part, the Issuer or the Paying Agent /Registrar shall not be
required to issue, transfer, or exchange this Bond within forty -five (45) days of the date fixed for
redemption; provided, however, such limitation of transfer shall not be applicable to an exchange
by the Holder of the unredeemed balance hereof in the event of its redemption in part.
The Bonds of this series are payable from the proceeds of an annual ad valorem tax
levied within the limitations prescribed by law, upon all taxable property within the Issuer.
Reference is hereby made to the Ordinance, a copy of which is on file in the corporate
trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his
acceptance hereof hereby assents, for definitions of terms; the description of and the nature and
extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the
transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or
supplemented with or without the consent of the Holders; the rights, duties, and obligations of
the Issuer and the Paying Agent /Registrar; the terms and provisions upon which this Bond may
be redeemed or discharged at or prior to its Stated Maturity and deemed to be no longer
Outstanding thereunder; and for the other terms and provisions thereof. Capitalized terms used
herein have the same meanings assigned in the Ordinance.
As provided in the Ordinance and subject to certain limitations contained therein, this
Bond is transferable on the Security Register of the Issuer, upon presentation and surrender of
this Bond for transfer at the corporate trust office of the Paying Agent /Registrar, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to the Paying
Agent /Registrar duly executed by the Holder hereof, or his duly authorized agent, and thereupon
one or more new fully registered Bonds of the same Stated Maturity, of authorized
denominations, bearing the same rate of interest, and of the same aggregate principal amount will
be issued to the designated transferee or transferees.
The Issuer and the Paying Agent /Registrar, and any agent of either, shall treat the Holder
hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof
for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this Bond as
the owner hereof for purposes of receiving payment of principal hereof at its Stated Maturity or
its redemption, in whole or in part, and (iii) on any other date as the owner hereof for all other
28181154.4 -12-
purposes, and neither the Issuer nor the Paying Agent/Registrar, or any such agent of either, shall
be affected by notice to the contrary. In the event of a non - payment of interest on a scheduled
payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a
Special Record Date) will be established by the Paying Agent /Registrar, if and when funds for
the payment of such interest have been received from the Issuer. Notice of the Special Record
Date and of the scheduled payment date of the past due interest (the Special Payment Date -
which shall be fifteen (1.5) days after the Special Record Date) shall be sent at least five (5)
business days prior to the Special Record Date by United States mail, first -class postage prepaid,
to the address of each Holder appearing on the Security Register at the close of business on the
last business day next preceding the date of mailing of such notice.
It is hereby certified, covenanted, and represented that all acts, conditions, and things
required to be performed, exist, and be done precedent to or in the issuance of this Bond in order
to render the same a legal, valid, and binding obligation of the Issuer have been performed, exist,
and have been done, in regular and due time, form, and manner, as required by the laws of the
State of Texas and the Ordinance, and that the issuance of the Bonds does not exceed any
constitutional or statutory limitation; and that due provision has been made for the payment of
the principal of, premium if any, and interest on the Bonds by the levy of a tax as aforestated. In
case any provision in this Bond or any application thereof shall be deemed invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the remaining provisions and
applications shall not in any way be affected or impaired thereby. The terms and provisions of
this :Bond and the Ordinance shall be construed in accordance with and shall be governed by the
laws of the State of Texas.
28181154.4 -13-
IN WITNESS WHEREOF, the Issuer has caused this Bond to be duly executed under its
official seal.
City Secretary
(CITY SEAL)
CITY OF SCHERTZ, TEXAS
Mayor
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28181154.4 -14-
C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on
Initial Bond only.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER OF §
PUBLIC ACCOUNTS §
§ REGISTER NO.
THE STATE OF TEXAS §
I HEREBY CERTIFY that this Bond has been examined, certified as to validity and
approved by the Attorney General of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this
Comptroller of Public Accounts
of the State of Texas
(SEAL)
*NOTE TO PRINTER: Do Not Print on Definitive Bonds.
Only.
D. *Form of Certificate of Paying Agent/Registrar to Appear on Definitive Bonds
REGISTRATION CERTIFICATE OF PAYING AGENT /REGISTRAR
This Bond has been duly issued under the provisions of the within - mentioned Ordinance;
the Bond or Bonds of the above - entitled and designated series originally delivered having been
approved by the Attorney General of the State of Texas and registered by the Comptroller of
Public Accounts, as shown by the records of the Paying Agent/Registrar.
Registered this date:
BOKF, NA, Austin, Texas, as Paying
Agent /Registrar
Authorized Signature
*NOTE TO PRINTER: Print on Definitive Bonds.
28181154.4 -15-
E. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto
(Print or typewrite name, address, and zip code of transferee):
(Social Security or other identifying number):
the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer the within Bond on the books kept for registration
thereof, with full power of substitution in the premises.
DATED:
NOTICE: The signature on this assignment must
correspond with the name of the registered owner as it
appears on the face of the within Bond in every particular.
Signature guaranteed:
F. Initial Bond. The Initial Bond shall be in the form set forth in paragraph B of this
Section, except that the form of the single fully registered Initial Bond shall be modified as
follows:
(1) immediately under the name of the bond the headings "Interest Rate and
"Stated Maturity " shall both be completed "as shown below";
(2) the first two paragraphs shall read as follows:
Registered Owner:
Principal Amount:
The City of Schertz, Texas (the Issuer), a body corporate and municipal corporation
located in the Counties of Bexar, Comal, and Guadalupe, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner
named above (the Holder), or the registered assigns thereof, the Principal Amount specified
above stated to mature on the first day of February in each of the years and in principal amounts
and bearing interest at per annum rates in accordance with the following schedule:
Years of Principal Interest
Stated Maturit Amounts ($) Rates
(Information to be inserted from schedule in Section 2 hereof).
28181154.4 -16-
(or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the
unpaid Principal Amounts hereof from the Bond Date specified above or from the most recent
Interest Payment Date (hereinafter defined) to which interest has been paid or duly provided for
until the Principal Amount has become due and payment thereof has been made or duly provided
for, to the earlier of redemption or Stated Maturity, at the per annum rates of interest specified
above computed on the basis of a 360 -day year of twelve 30 -day months; such interest being
payable on February 1 and August 1 of each year (each, an Interest Payment Date) commencing
February 1, 2018.
Principal of this Bond shall be payable to the Holder, upon presentation and surrender to
Stated Maturity or prior redemption, while Outstanding, at the corporate trust office of BOKF,
NA, Austin, Texas (the Paying Agent /Registrar). Interest shall be payable to the Holder of this
Bond whose name appears on the Security Register maintained by the Paying Agent /Registrar at
the close of business on the Record Date, which is the fifteenth day of the month next preceding
the Interest Payment Date. All payments of principal of, premium, if any, and interest on this
Bond shall be in any coin or currency of the United States of America which at the time of
payment is legal tender for the payment of public and private debts. Interest shall be paid by the
Paying Agent /Registrar by check sent on or prior to the appropriate date of payment by United
States mail, first -class postage prepaid, to the Holder hereof at the address appearing in the
Security Register or by such other method, acceptable to the Paying Agent /Registrar, requested
by the Holder hereof at the Holder's risk and expense.
G. Insurance Legend. If bond insurance is obtained by the Issuer or the Purchasers
(hereinafter defined), the Definitive Bonds and the Initial Bond shall bear an appropriate legend
as provided by the insurer.
SECTION 9: Definitions. For all purposes of this Ordinance (as defined below), except
as otherwise expressly provided or unless the context otherwise requires: (i) the terms defined in
this Section have the meanings assigned to them in this Section, certain terms used in
Sections 18 and 36 of this Ordinance have the meanings assigned to them in such Sections, and
all such terms, include the plural as well as the singular; (ii) all references in this Ordinance to
designated "Sections" and other subdivisions are to the designated Sections and other
subdivisions of this Ordinance as originally adopted; and (iii) the words "herein ", "hereof', and
"hereunder" and other words of similar import refer to this Ordinance as a whole and not to any
particular Section or other subdivision.
A. The term Authorized Officials shall mean the Mayor, Mayor Pro Tem, City
Manager, Director of Finance, and /or the City Secretary.
B. The term Bond Fund shall mean the special fund created and established by the
provisions of Section 10 of this Ordinance.
C. The term Bonds shall mean the $ "CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION BONDS, SERIES 2017" authorized by this Ordinance.
28181154.4 -17
D. The term Certificates shall mean the $ "CITY OF SCHE:RTZ,
TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2017 ".
E. The term Closing Date shall mean the date of physical delivery of the Initial Bond
in exchange for the payment in full by the Purchasers.
F. The term Debt Service Requirements shall mean, as of any particular date of
computation, with respect to any obligations and with respect to any period, the aggregate of the
amounts to be paid or set aside by the Issuer as of such date or in such period for the payment of
the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations;
assuming, in the case of obligations without a fixed numerical rate, that such obligations bear
interest at the maximum rate permitted by the terms thereof and further assuming in the case of
obligations required to be redeemed or prepaid as to principal prior to Stated Maturity, the
principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the
mandatory redemption provisions applicable thereto.
G. The term Depository shall mean an official depository bank of the Issuer.
H. The term Government Securities, as used herein, shall mean: (i) direct noncallable
obligations of the United States, including obligations that are unconditionally guaranteed by, the
United States of America; (ii) noncallable obligations of an agency or instrumentality of the
United States, including obligations that are unconditionally guaranteed or insured by the agency
or instrumentality and that, on the date the governing body of the issuer adopts or approves the
proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a
nationally recognized investment rating firm not less than "AAA" or its equivalent;
(iii) noncallable obligations of a state or an agency or a county, municipality, or other political
subdivision of a state that have been refunded and that, on the date the governing body of the
issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated
as to investment quality by a nationally recognized investment rating firm not less than "AAA"
or its equivalent, or (iv) any additional securities and obligations hereafter authorized by the laws
of the State of Texas as eligible for use to accomplish the discharge of obligations such as the
Bonds.
L The term Folder or Folders shall mean the registered owner, whose name
appears in the Security Register, for any Bond.
J. The term Interest Payment Date shall mean the date interest is payable on the
Bonds, being February 1 and August 1 of each year, commencing February 1, 2018, while any of
the Bonds remain Outstanding.
K. The term Issuer shall mean the City of Schertz, Texas, located in the Counties of
Bexar, Comal, and Guadalupe, Texas and, where appropriate, the Governing Body of the Issuer.
L. The term Ordinance shall mean this ordinance adopted by the Governing Body of
the Issuer on May 23, 2017.
28181154.4 -18-
M. The term Outstanding when used in this Ordinance with respect to Bonds shall
mean, as of the date of determination, all Bonds issued and delivered under this Ordinance,
except:
(1) those Bonds canceled by the Paying Agent /Registrar or delivered to the
Paying Agent/Registrar for cancellation;
(2) those Bonds for which payment has been duly provided by the Issuer in
accordance with the provisions of Section 19 of this Ordinance; and
(3) those Bonds that have been mutilated, destroyed, lost, or stolen and
replacement Bonds have been registered and delivered in lieu thereof as provided in
Section 16 of this Ordinance.
N. The term Purchasers shall mean the initial purchaser or purchasers of the Bonds
named in Section 17 of this Ordinance.
O. The term Stated Maturity shall mean the annual principal payments of the Bonds
payable on February 1 of each year the Bonds are Outstanding, as set forth in Section 2 of this
Ordinance.
SECTION 10: Bond Fund; Investments. For the purpose of paying the interest on and to
provide a sinking fund for the payment, redemption, and retirement of the Bonds, there shall be
and is hereby created a special fund to be designated "GENERAL OBLIGATION BONDS,
SERIES 2017, INTEREST AND SINKING FUND" (the Bond Fund), which fund shall be kept
and maintained at the Depository, and money deposited in such fund shall be used for no other
purpose and shall be maintained as provided in Section 18. Authorized Officials of the Issuer are
hereby authorized and directed to make withdrawals from the Bond Fund sufficient to pay the
purchase price or the amount of principal of, premium, if any, and interest on the Bonds as the
same become due and payable and shall cause to be transferred to the Paying Agent /Registrar
from money on deposit in the Bond Fund an amount sufficient to pay the amount of principal .
and /or interest stated to mature on the Bonds, such transfer of funds to the Paying
Agent /Registrar to be made in such manner as will cause immediately available funds to be
deposited with the Paying Agent /Registrar on or before the business day next preceding each
interest and principal payment date for the Bonds.
Pending the transfer of funds to the Paying Agent /Registrar, money deposited in any fund
created and established pursuant to the provisions of this Ordinance may, at the option of the
Issuer, be placed in time deposits, certificates of deposit, guaranteed investment contracts, or
similar contractual agreements as permitted by the provisions of the Public Funds Investment
Act, as amended, Chapter 2256, Texas Government Code, secured (to the extent not insured by
the Federal Deposit Insurance Corporation) by obligations of the type hereinafter described, or
be invested, as authorized by any law, including investments held in book -entry form, in
securities including, but not limited to, direct obligations of the United States of America,
obligations guaranteed or insured by the United States of America, which, in the opinion of the
Attorney General of the United States, are backed by its full faith and credit or represent its
general obligations, or invested in indirect obligations of the United States of America,
28181154.4 -19-
including, but not limited to, evidences of indebtedness issued, insured or guaranteed by such
governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for
Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, Farmers
Home Administration, Federal Home Loan Mortgage Association, Small Business
Administration, or Federal Housing Association; provided that all such deposits and investments
shall be made in such a manner that the money required to be expended from any fund will be
available at the proper time or times. All interest and income derived from deposits and
investments in any fund established pursuant to the provisions of this Ordinance shall be credited
to, and any losses debited to, such fund. All such investments shall be sold promptly when
necessary to prevent any default in connection with the Bonds.
SECTION 1.1: Levy of Taxes; Surplus Bond Proceeds. To provide for the payment of the
Debt Service Requirements on the Bonds being (i) the interest on the Bonds, and (ii) sinking
fund for their redemption at Stated Maturity or a sinking fund of 2% (whichever amount shall be
the greater), there shall be and there is hereby levied for the current fiscal year and each
succeeding year thereafter while the Bonds or any interest thereon shall remain Outstanding, a
sufficient tax, within the limitations prescribed by law, on each one hundred dollars' valuation of
taxable property in the Issuer, adequate to pay such Debt Service Requirements, full allowance
being made for delinquencies and costs of collection; said tax shall be assessed and collected
each year and applied to the payment of the Debt Service Requirements, and the same shall not
be diverted to any other purpose. The taxes so levied and collected shall be paid into the Bond
Fund and are thereafter pledged to the payment of the Bonds. The Governing Body hereby
declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay such
Debt Service Requirements, it having been determined that the existing and available taxing
authority of the Issuer for such purpose is adequate to permit a legally sufficient tax in
consideration of all other outstanding indebtedness and other obligations of the Issuer.
Accrued interest received from the Purchasers of the Bonds shall be deposited to the
Bond Fund and ad valorem taxes levied and collected for the benefit of the Bonds shall be
deposited to the Bond Fund. In addition, any surplus proceeds from the sale of the Bonds,
including investment income thereon, not expended for authorized purposes shall be deposited in
the Bond Fund, and such amounts so deposited shall reduce the sum otherwise required to be
deposited in the Bond Fund from ad valorem taxes.
SECTION 12: Security for Funds. All money on deposit in the funds for which this
Ordinance makes provision (except any portion thereof as may be at any time properly invested
as provided herein) shall be secured in the manner and to the fullest extent required by the laws
of the State of Texas for the security of public funds, and money on deposit in such funds shall
be used only for the purposes permitted by this Ordinance.
SECTION 13: Remedies in Event of Default. In addition to all the rights and remedies
provided by the laws of the State of Texas, the Issuer covenants and agrees particularly that in
the event the Issuer: (a) defaults in the payments to be made to the Bond Fund; or (b) defaults in
the observance or performance of any other of the covenants, conditions, or obligations set forth
in this Ordinance, the Holders of any of the Bonds shall be entitled to seek a writ of mandamus
issued by a court of proper jurisdiction compelling and requiring the Governing Body of the
28181154.4 -20-
Issuer and other officers of the Issuer to observe and perform any covenant, condition, or
obligation prescribed in this Ordinance.
No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver of any such default or
acquiescence therein, and every such right and power may be exercised from time to time and as
often as may be deemed expedient. The specific remedies herein provided shall be cumulative of
all other existing remedies and the specification of such remedies shall not be deemed to be
exclusive.
SECTION 14: Notices to Holders- Waiver. Wherever this Ordinance provides for notice
to Holders of any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and sent by United States mail, first -class postage prepaid, to
the address of each Holder appearing in the Security Register at the close of business on the
business day next preceding the mailing of such notice.
In any case where notice to Holders is given by mail, neither the failure to mail such
notice to any particular Holders, nor any defect in any notice so mailed, shall affect the
sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for
notice in any manner, such notice may be waived in writing by the Holder entitled to receive
such notice, either before or after the event with respect to which such notice is given, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Paying Agent /Registrar, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.
SECTION 15: Cancellation. All Bonds surrendered for payment, redemption, transfer,
exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly
canceled by it and, if surrendered to the Issuer, shall be delivered to the Paying Agent /Registrar
and, if not already canceled, shall be promptly canceled by the Paying Agent /Registrar. The
Issuer may at any time deliver to the Paying Agent /Registrar for cancellation any Bonds
previously certified or registered and delivered which the Issuer may have acquired in any
manner whatsoever, and all Bonds so delivered shall be promptly canceled by the Paying
Agent /Registrar. All canceled Bonds held by the Paying Agent/Registrar shall be destroyed as
directed by the Issuer.
SECTION 1.6: Mutilated - Destroyed - Lost and Stolen Bonds. If. (i) any mutilated Bond
is surrendered to the Paying Agent /Registrar, or the Issuer and the Paying Agent /Registrar
receive evidence to their satisfaction of the destruction, loss, or theft of any Bond; and (ii) there
is delivered to the Issuer and the Paying Agent /Registrar such security or indemnity as may be
required to save each of them harmless, then, in the absence of notice to the Issuer or the Paying
Agent /Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall
execute and, upon the Issuer's request, the Paying Agent/Registrar shall register and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Bond, a new Bond of the
same Stated Maturity and interest rate and of like tenor and principal amount, bearing a number
not contemporaneously Outstanding.
28181154.4 -21-
In case any such mutilated, destroyed, lost, or stolen Bond has become or is about to
become due and payable, the Issuer in its discretion may, instead of issuing a new Bond, pay
such Bond. Upon the issuance of any new Bond, or payment in lieu thereof, under this Section,
the Issuer may require payment by the Holder of a sum sufficient to cover any tax or other
governmental charge imposed in relation thereto and any other expenses and charges (including
attorney's fees and the fees and expenses of the Paying Agent /Registrar) connected therewith.
Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or
stolen Bond shall constitute a replacement of the prior obligation of the Issuer, whether or not the
mutilated, destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and shall
be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding
Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement and payment of mutilated, destroyed,
lost, or stolen Bonds.
SECTION 17: Sale of Bonds at Competitive Sale; Official Statement; Proceeds of Sale.
The Bonds authorized by this Ordinance are hereby sold by the Issuer to ,
at a competitive sale (the Purchasers, having all of the rights,
duties, and obligations of a Holder), in accordance with the provisions of an Official. Bid Form
(the Official Bid Form), dated May 23, 2017, attached hereto as Exhibit B and incorporated
herein by reference as a part of this Ordinance for all purposes, at the price of par, plus a [net]
original issue reoffering premium of $ , less underwriting discount of
$ , plus accrued interest to the date of initial delivery of the Bonds to the
Purchasers, and is hereby approved and confirmed. The Initial Bond shall be registered in the
name of . It is hereby officially found, determined, and declared
that the Purchasers are the highest bidder for the Bonds whose bid, received as a result of
invitations for competitive bids in compliance with applicable law, produced the lowest true
interest cost to the Issuer. The pricing and terms of the sale of the Bonds are hereby found and
determined to be the most advantageous reasonably obtainable by the Issuer.
Furthermore, the Issuer hereby ratifies, confirms, and approves in all respects (i) the
Issuer's prior determination that the Preliminary Official Statement was, as of its date, "deemed
final" in accordance with the Rule (hereinafter defined) and (ii) the use and distribution of the
Preliminary Official Statement by the Purchasers in connection with the public offering and sale
of the Bonds. The final Official Statement, being a modification and amendment of the
Preliminary Official Statement to reflect the terms of sale (together with such changes approved
by any Authorized Official), shall be and is hereby in all respects approved and the Purchasers
are hereby authorized to use and distribute the final Official Statement, dated May 23, 2017, in
the reoffering, sale and delivery of the Bonds to the public. The Mayor and City Secretary are
further authorized and directed to manually execute and deliver for and on behalf of the Issuer
copies of the Official Statement in final form as may be required by the Purchasers, and such
final Official Statement in the form and content manually executed by said officials shall be
deemed to be approved by the Governing Body and constitute the Official Statement authorized
for distribution and use by the Purchasers. The proper officials of the Issuer are hereby
authorized to execute and deliver a certificate pertaining to such Official Statement as prescribed
therein, dated as of the date of payment for and delivery of the Bonds.
Proceeds from the sale of the Bonds shall be applied as follows:
28181154.4 -22-
(1) Accrued interest on the Bonds (in the amount of $ ), received
from the Purchasers, shall be deposited into the Bond Fund.
(2) The Issuer received a [net] original issue reoffering premium from the sale of
the Bonds of $ which is hereby allocated by the Issuer in the following manner:
(A) $ to pay the Purchasers' compensation, (:B) $ to pay the costs of
issuance, and (C) the remaining $ allocated toward the Issuer's voted authority
and deposited as described in Paragraph (3) below.
(3) The balance of the proceeds (including a portion of the premium in the amount
of $ as described above and principal in the amount of $ , totaling
$ ) derived from the sale of the Bonds (after paying costs of issuance) shall be
deposited into the special construction account or accounts created for the projects to be
constructed with the proceeds of the Bonds. This special construction account shall be
established and maintained at the Depository and shall be invested in accordance with the
provisions of Section 10 of this Ordinance. Interest earned on the proceeds of the Bonds
pending completion of construction of the projects financed with such proceeds shall be
accounted for, maintained, deposited, and expended as permitted by the provisions of Chapter
1.201, as amended, Texas Government Code, or as required by any other applicable law.
Thereafter, such amounts shall be expended in accordance with Section 11 of this Ordinance.
SECTION 18: Covenants to Maintain Tax - Exempt Status.
A. Definitions. When used in this Section, the following terms have the following
meanings:
Closing Date means the date on which the Bonds are first authenticated and
delivered to the initial purchasers against payment therefor.
Code means the Internal Revenue Code of 1986, as amended by all legislation, if
any, effective on or before the Closing Date.
Computation Date has the meaning set forth in Section 1.148 -1(b) of the
Regulations.
Goss Proceeds means any proceeds as defined in Section 1.148 -1(b) of the
Regulations, and any replacement proceeds as defined in Section 1.148 -1(c) of the
Regulations, of the Bonds.
Investment has the meaning set forth in Section 1.148 -1(b) of the Regulations.
Nonpurpose Investment means any investment property, as defined in section
1.48(b) of the Code, in which Gross Proceeds of the :Bonds are invested and which is not
acquired to carry out the governmental purposes of the Bonds.
Rebate Amount has the meaning set forth in Section 1.1.48 -1(b) of the
Regulations.
28181154.4 -23-
Regulations means any proposed, temporary, or final Income Tax Regulations
issued pursuant to sections 103 and 141 through 150 of the Code, and 103 of the Internal
Revenue Code of 1954, . which are applicable to the Bonds. Any reference to any specific
Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax
Regulation designed to supplement, amend or replace the specific Regulation referenced.
Yield of
(1) any Investment has the meaning set forth in Section 1.148 -5 of the
Regulations; and
(2) means the combined yield of the Certificates and the Bonds within .
the meaning set forth in Section 1.148 -4 of the Regulations.
B. Not to Cause Interest to Become Taxable. The Issuer shall not use, permit the use
of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition,
construction or improvement of which is to be financed or refinanced directly or indirectly with
Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on
any Bond to become includable in the gross income, as defined in section 61 of the Code, of the
owner thereof for federal income tax purposes. Without limiting the generality of the foregoing,
unless and until the Issuer receives a written opinion of counsel nationally recognized in the field
of municipal bond law to the effect that failure to comply with such covenant will not adversely
affect the exemption from federal income tax of the interest on any Bond, the Issuer shall comply
with each of the specific covenants in this Section.
C. No Private Use or Private Payments. Except to the extent that it will cause the
Bonds to become "private activity bonds" within the meaning of section 141 of the Code and the
Regulations and rulings thereunder, the Issuer shall at all times prior to the last Stated Maturity
of Bonds:
(1) exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or
indirectly with Gross Proceeds of the Bonds, and not use or permit the use of such Gross
Proceeds (including all contractual arrangements with terms different than those
applicable to the general public) or any property acquired, constructed or improved with
such Gross Proceeds in any activity carried on by any person or entity (including the
United States or any agency, department and instrumentality thereof) other than a state or
local government, unless such use is solely as a member of the general public; and
(2) not directly or indirectly impose or accept any charge or other payment by
any person or entity who is treated as using Gross Proceeds of the Bonds or any property
the acquisition, construction or improvement of which is to be financed or refinanced
directly or indirectly with such Gross Proceeds, other than taxes of general application
within the Issuer or interest earned on investments acquired with such Gross Proceeds
pending application for their intended purposes.
D. No Private Loan. Except to the extent that it will not cause the Bonds to become
"private activity bonds" within the meaning of section 141 of the Code and the Regulations and
28181154.4 -24-
rulings thereunder, the Issuer shall not use Gross Proceeds of the Bonds to make or finance loans
to any person or entity other than a state or local government. For purposes of the foregoing
covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if. (1) property
acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or
entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or
service from such property is committed to such person or entity under a take -or -pay, output or
similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of
such Gross Proceeds or any property acquired, constructed or improved with such Gross
Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan.
E. Not to Invest at Higher Yield. Except to the extent that it will cause the Bonds to
become "arbitrage bonds" within the meaning of section 148 of the Code and the Regulations
and rulings thereunder, the Issuer shall not at any time prior to the final Stated Maturity of the
Bonds directly or indirectly invest Gross Proceeds in any Investment, if as a result of such
investment the Yield on any Investments acquired with Gross Proceeds (or with money replaced
thereby), whether then held or previously disposed of, materially exceeds the Yield of the Bonds.
F. Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the
Code and the Regulations and rulings thereunder, the Issuer shall not take or omit to take any
action which would cause the Bonds to be federally guaranteed within the meaning of section
1.49(b) of the Code and the Regulations and rulings thereunder.
G. Information Report. The Issuer shall timely file the information required by
section 149(e) of the Code with the Secretary of the Treasury on Form 8038 -G or such other
form and in such place as the Secretary may prescribe.
H. Rebate of Arbitrage Profits. Except to the extent otherwise provided in section
148(f) of the Code and the Regulations and rulings thereunder:
(1) The Issuer shall account for all Gross Proceeds (including all receipts,
expenditures and investments thereof) on its books of account separately and apart from
all other funds (and receipts, expenditures and investments thereof) and shall retain all
records of accounting for at least six years after the day on which the last Outstanding
Bond is discharged. However, to the extent permitted by law, the Issuer may commingle
Gross Proceeds of the Bonds with other money of the Issuer, provided that the Issuer
separately accounts for each receipt and expenditure of Gross Proceeds and the
obligations acquired therewith.
(2) Not less frequently than each Computation. Date, the Issuer shall calculate
the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and
the Regulations and rulings thereunder. The Issuer shall maintain such calculations with
its official transcript of proceedings relating to the issuance of the Bonds until six years
after the final Computation Date.
(3) As additional consideration for the purchase of the Bonds by the
Purchasers and the loan of the money represented thereby and in order to induce such
purchase by measures designed to insure the excludability of the interest thereon from the
28181154.4 -25-
gross income of the owners thereof for federal income tax purposes, the Issuer shall pay
to the United States out of the Bond Fund or its general fund, as permitted by applicable
Texas statute, regulation or opinion of the Attorney General of the State of Texas, the
amount that when added to the future value of previous rebate payments made for the
Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.1.48 -
3(e)(2) of the Regulations, one hundred percent (100 %) of the Rebate Amount on such
date; and (ii) in the case of any other Computation Date, ninety percent (90 %) of the
Rebate Amount on such date. In all cases, the rebate payments shall be made at the
times, in the installments, to the place and in the manner as is or may be required by
section 148(f) of the Code and the Regulations and rulings thereunder, and shall be
accompanied by Form 8038 -T or such other forms and information as is or may be
required by section 148(f) of the Code and the Regulations and rulings thereunder.
(4) The Issuer shall exercise reasonable diligence to assure that no errors are
made in the calculations and payments required by paragraphs (2) and (3), and if an error
is made, to discover and promptly correct such error within a reasonable amount of time
thereafter (and in all events within one hundred eighty (180) days after discovery of the
error), including payment to the United States of any additional. Rebate Amount owed to
it, interest thereon, and any penalty imposed under Section 1.148 -3(h) of the Regulations.
I. Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of
the Code and the Regulations and rulings thereunder, the Issuer shall not, at any time prior to the
earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that
reduces the amount required to be paid to the United States pursuant to Subsection H of this
Section because such transaction results in a smaller profit or a larger loss than would have
resulted if the transaction had been at arm's length and had the Yield of the Bonds not been
relevant to either party.
J. Bonds Not Hedge Bonds.
(1) The Issuer reasonably expects to spend at least 85% of the spendable
proceeds of the Bonds within three years after such Bonds are issued.
(2) Not more than 50% of the proceeds of the Bonds will be invested in
Nonpurpose Investments having a substantially guaranteed Yield for a period of four
years or more.
K. Elections. The Issuer hereby directs and authorizes any Authorized Official,
either or any combination of the foregoing, to make such elections in the Certificate as to Tax
Exemption or similar or other appropriate certificate, form, or document permitted or required
pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate
in connection with the Bonds. Such elections shall be deemed to be made on the Closing Date.
L. Qualified Tax - Exempt Obligations. The Issuer hereby designates the Bonds as
qualified tax - exempt obligations for purposes of section 265(b) of the Code. In furtherance of
such designation, the Issuer represents, covenants and warrants the following: (a) during the
calendar year in which the Bonds are issued, the Issuer (including any subordinate entities) has
28181 154.4 -26-
not designated nor will designate obligations, which when aggregated with the Bonds, will result
in more than $10,000,000 of "qualified tax - exempt obligations" being issued; (b) the Issuer
reasonably anticipates that the amount of tax- exempt obligations issued during the calendar year
2017 by the Issuer (including any subordinate entities) will not exceed $10,000,000; and the
Issuer will take such action or refrain from such action as is necessary in order that the Bonds
will not be considered "private activity bonds" within the meaning of section 141 of the Code.
SECTION 19: Satisfaction of Obligation of the Issuer. If the Issuer shall pay or cause to
be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and
interest on the :Bonds, at the times and in the manner stipulated in this Ordinance, then the pledge
of taxes levied under this Ordinance and all covenants, agreements, and other obligations of the
Issuer to the Holders shall thereupon cease, terminate, and be discharged and satisfied.
Bonds, or any principal amount(s) thereof, shall be deemed to have been paid within the
meaning and with the effect expressed above in this Section when: (i) money sufficient to pay in
full such Bonds or the principal amount(s) thereof at Stated Maturity or to the redemption date
therefor, together with all interest due thereon, shall have been irrevocably deposited with and
held in trust by the Paying Agent /Registrar, or an authorized escrow agent; and /or (ii)
Government Securities shall have been irrevocably deposited in trust with the Paying
Agent /Registrar, or an authorized escrow agent, which Government Securities have, in the case
of a net defeasance, been certified by an independent accounting firm to mature as to principal
and interest in such amounts and at such times as will insure the availability, without
reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay
when due the principal of and interest on such Bonds, or the principal amount(s) thereof, on and
prior to the Stated Maturity thereof (or if notice of redemption has been duly given or waived or
if irrevocable arrangements therefor acceptable to the Paying Agent /Registrar have been made)
the redemption date thereof for the Bonds. In the event of a gross defeasance of the Bonds, the
Issuer shall deliver a certificate from its financial advisor, the Paying Agent /Registrar, or another
qualified third party concerning the deposit of cash and/or Government Securities to pay, when
due, the principal of, redemption premium (if any), and interest due on any defeased Bonds. The
Issuer covenants that no deposit of money or Government Securities will be made under this
Section and no use made of any such deposit which would cause the Bonds to be treated as
arbitrage bonds within the meaning of section 1.48 of the Code (as defined in Section 18 hereof).
Any money so deposited with the Paying Agent /Registrar, and all income from
Government Securities held in trust by the Paying Agent /Registrar, or an authorized escrow
agent, pursuant to this Section which is not required for the payment of the Bonds, or any
principal amount(s) thereof, or interest thereon with respect to which such money has been so
deposited shall be remitted to the Issuer or deposited as directed by the Issuer. Furthermore, any
money held by the Paying Agent /:Registrar for the payment of the principal of and interest on the
Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or
applicable redemption date of the Bonds, such money was deposited and is held in trust to pay
shall upon the request of the Issuer be remitted to the Issuer against a written receipt therefor,
subject to the unclaimed property laws of the State of Texas.
Notwithstanding any other provision of this Ordinance to the contrary, it is hereby
provided that any determination not to redeem defeased Bonds that is made in conjunction with
28181154.4 -27-
the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable,
provided that: (1) in the proceedings providing for such defeasance, the Issuer expressly
reserves the right to call the defeased Bonds for redemption; (2) gives notice of the reservation of
that right to the owners of the defeased Bonds immediately following the defeasance; (3) directs
that notice of the reservation be included in any redemption notices that it authorizes; and (4) at
the time of the redemption, satisfies the conditions of (i) or (ii) above with respect to such
defeased debt as though it was being defeased at the time of the exercise of the option to redeem
the defeased Bonds, after taking the redemption into account in determining the sufficiency of
the provisions made for the payment of the defeased Bonds.
SECTION 20: Ordinance a Contract - Amendments - Outstanding_ Bonds. The Issuer
acknowledges that the covenants and obligations of the Issuer herein contained are a material
inducement to the purchase of the Bonds. This Ordinance shall constitute a contract with the
Holders from time to time, be binding on the Issuer, and its successors and assigns, and it shall
not be amended or repealed by the Issuer so long as any Bond remains Outstanding except as
permitted in this Section. The Issuer may, without the consent of or notice to any Holders, from
time to time and at any time, amend this Ordinance in any manner not detrimental to the interests
of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or
omission herein. In addition, the Issuer may, with the written consent of Holders holding a
majority in aggregate principal amount of the Bonds then Outstanding affected thereby, amend,
add to, or rescind any of the provisions of this Ordinance; provided, however, that, without the
consent of all Holders of Outstanding Bonds, no such amendment, addition, or rescission shall:
(i) extend the time or times of payment of the principal of, premium, if any, and interest on the
Bonds, reduce the principal amount thereof, the redemption price thereof, or the rate of interest
thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or
interest on the Bonds; (ii) give any preference to any Bond over any other Bond; or (iii) reduce
the aggregate principal amount of Bonds required for consent to any such amendment, addition,
or rescission.
SECTION 21: Control and Custody of Bonds. The Mayor of the Issuer shall be and is
hereby authorized to take and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas including the printing and supply of
definitive Bonds and shall take and have charge and control of the Initial Bond pending its
approval by the Attorney General of the State of Texas, the registration thereof by the
Comptroller of Public Accounts of the State of Texas and the delivery thereof to the Purchasers.
Furthermore, each Authorized Official, any or all, are hereby authorized and directed to
furnish and execute such documents relating to the Issuer and its financial affairs as may be
necessary for the issuance of the Bonds, the approval of the Attorney General of the State of
Texas, and their registration by the Comptroller of Public Accounts of the State of Texas and,
together with the Issuer's Financial Advisors, Bond Counsel, and the Paying Agent /Registrar, to
make the necessary arrangements for the delivery of the Initial Bond to the Purchasers and the
initial exchange thereof for definitive Bonds.
SECTION 22: Printed Opinion. The Purchasers' obligation to accept delivery of the
Bonds is subject to its being furnished a final opinion of Norton Rose Fulbright US LLP, San
Antonio, Texas, as Bond Counsel, approving the Bonds as to their validity, said opinion to be
28181 154.4 -28-
dated and delivered as of the date of initial delivery and payment for the Bonds. Printing of a
true and correct reproduction of said opinions on the reverse side of each of the Bonds is hereby
approved and authorized.
SECTION 23: CUSIP Numbers. CUSIP numbers may be printed or typed on the Bonds.
It is expressly provided, however, that the presence or absence of CUSIP numbers on the Bonds
shall be of no significance or effect as regards the legality thereof, and neither the Issuer nor
attorneys approving said Bonds as to legality are to be held responsible for CUSIP numbers
incorrectly printed or typed on the Bonds.
SECTION 24: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is
intended or shall be construed to confer upon any person other than the Issuer, the Paying
Agent /Registrar, Bond Counsel, the Purchasers, and the Holders any right, remedy, or claim,
legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance
and all its provisions being intended to be and being for the sole and exclusive benefit of the
Issuer, the Paying Agent /Registrar, Bond Counsel, the Purchasers, and the Holders.
SECTION 25: Inconsistent Provisions. All ordinances, orders, or resolutions, or parts
thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby
repealed to the extent of such conflict and the provisions of this Ordinance shall be and remain
controlling as to the matters contained herein.
SECTION 26: Governing. This Ordinance shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
SECTION 27: Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.
SECTION 28: Severability. If any provision of this Ordinance or the application thereof
to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the
application of such provision to other persons and circumstances shall nevertheless be valid, and
the Governing Body hereby declares that this Ordinance would have been enacted without such
invalid provision.
SECTION 29: Public Meeting. It is officially found, determined, and declared that the
meeting at which this Ordinance is adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered at such meeting, including this
Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code.
SECTION 30: Authorization of Paying Agent/Registrar Agreement. The Governing
Body of the Issuer hereby finds and determines that it is in the best interest of the Issuer to
authorize the execution of a Paying Agent /Registrar Agreement pertaining to the registration,
transferability, and payment of the Bonds. A copy of the Paying Agent/Registrar Agreement is
attached hereto, in substantially final form, as Exhibit A and is incorporated herein by reference
as fully as if recopied in its entirety in this Ordinance.
SECTION 31: Incorporation of Preamble Recitals. The recitals contained in the
preamble to this Ordinance are hereby found to be true, and such recitals are hereby made a part
28181154.4 -29-
of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the
Governing Body of the Issuer.
SECTION 32: Book - Entry sue. The Bonds shall initially be registered so as to
participate in a securities depository system (the DTC System) with the Depository Trust
Company, New York, New York, or any successor entity thereto (the DTC), as set forth herein.
Each Stated Maturity of the Bonds shall be issued (following cancellation of the Initial Bond
described in Section 7) in the form of a separate single definitive Bond. Upon issuance, the
ownership of each such Bond shall be registered in the name of Cede & Co., as the nominee of
DTC, and all of the Outstanding Bonds shall be registered in the name of Cede & Co., as the
nominee of DTC. The Issuer and the Paying Agent /Register are authorized to execute, deliver,
and take the actions set forth in such letters to or agreements with DTC as shall be necessary to
effectuate the DTC System, including the Letter of Representations attached hereto as Exhibit C
(the Representation Letter).
With respect to the Bonds registered in the name of Cede & Co., as nominee of DTC, the
Issuer and the Paying Agent/Registrar shall have no responsibility or obligation to any
broker - dealer, bank, or other financial institution for which DTC holds the Bonds from time to
time as securities depository (a Depository Participant) or to any person on behalf of whom such
a Depository Participant holds an interest in the Bonds (an Indirect Participant). Without
limiting the immediately preceding sentence, the Issuer and the Paying Agent/Registrar shall
have no responsibility or obligation with respect to: (i) the accuracy of the records of DTC, Cede
& Co., or any Depository Participant with respect to any ownership interest in the Bonds; (ii) the
delivery to any Depository Participant or any other person, other than a registered owner of the
Bonds, as shown on the Security Register, of any notice with respect to the Bonds, including any
notice of redemption; or (iii) the delivery to any Depository Participant or any Indirect
Participant or any other Person, other than a Holder of a :Bond, of any amount with respect to
principal of, premium, if any, or interest on the Bonds. While in the DTC System, no person
other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a bond
certificate evidencing the obligation of the Issuer to make payments of principal, premium, if
any, and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying
Agent /Registrar of written notice to the effect that DTC has determined to substitute a new
nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to
interest checks or drafts being mailed to the Holder, the word "Cede & Co." in this Ordinance
shall refer to such new nominee of DTC.
In the event that: (a) the Issuer determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter; (b) the Representation Letter
shall be terminated for any reason; or (c) DTC or the Issuer determines that it is in the best
interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the
Issuer shall notify the Paying Agent /Registrar, DTC, and DTC Participants of the availability
within a reasonable period of time through DTC of bond certificates, and the Bonds shall no
longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that
time, the Issuer may determine that the Bonds shall be registered in the name of and deposited
with a successor depository operating a securities depository system, as may be acceptable to the
Issuer, or such depository's agent or designee, and if the Issuer and the Paying Agent/Registrar
do not select such alternate securities depository system then the Bonds may be registered in
28181154.4 -30-
whatever name or names the Holders of Bonds transferring or exchanging the Bonds shall
designate, in accordance with the provisions hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to
principal of, premium, if any, and interest on such Bond and all notices with respect to such
Bond shall be made and given, respectively, in the manner provided in the Representation Letter.
SECTION 33: Construction of Terms. If appropriate in the context of this Ordinance,
words of the singular number shall be considered to include the plural, words of the plural
number shall be considered to include the singular, and words of the masculine, feminine or
neuter gender shall be considered to include the other genders.
SECTION 34: Unavailability of Authorized Publication. If, because of the temporary or
permanent suspension of any newspaper, journal, or other publication, or, for any reason,
publication of notice cannot be made meeting any requirements herein established, any notice
required to be published by the provisions of this Ordinance shall be given in such other manner
and at such time or times as in the judgment of the Issuer or of the Paying Agent /Registrar shall
most effectively approximate such required publication and the giving of such notice in such
manner shall for all purposes of this Ordinance be deemed to be in compliance with the
requirements for publication thereof.
SECTION 35: No Recourse Against Issuer Officials. No recourse shall be had for the
payment of principal of, premium, if any, or interest on any Bond or for any claim based thereon
or on this Ordinance against any official of the Issuer or any person executing any Bond.
SECTION 36: Continuing Disclosure Undertakinp,.
A. Definitions.
As used in this Section, the following terms have the meanings ascribed to such terms
below:
EMMA means the MSRB's Electronic Municipal Market Access system, accessible by
the general public, without charge, on the internet through the uniform resource locator (URL)
http://www.emma.msrb.org.
MSRB means the Municipal. Securities Rulemaking Board.
Rule means SEC Rule 15c2 -12, as amended from time to time.
SEC means the United States Securities and Exchange Commission.
B. Annual Reports.
The Issuer shall file annually with the MSRB, (1) within six months after the end of each
fiscal year of the Issuer ending in or after 2017, financial information and operating data with
respect to the Issuer of the general type included in the final Official Statement authorized by
28181154.4 -31-
Section 17 of this Ordinance, being the information described in Exhibit D hereto, and (2) if not
provided as part of such financial information and operating data, audited financial statements of
the Issuer, when and if available. Any financial statements so to be provided shall be (i)
prepared in accordance with the accounting principles described in Exhibit D hereto, or such
other accounting principles as the Issuer may be required to employ from time to time pursuant
to state law or regulation, and (ii) audited, if the Issuer commissions an audit of such financial
statements and the audit is completed within the period during which they must be provided. If
the audit of such financial statements is not complete within such period, then the Issuer shall file
unaudited financial statements within such period and audited financial statements for the
applicable fiscal year to the MSRB, when and if the audit report on such financial statements
becomes available. Under current Texas law, including, but not limited to, Chapter 103, as
amended, Texas Local Government Code, the Issuer must have its records and accounts audited
annually and shall have an annual financial statement prepared based on the audit. The annual
financial statement, including the auditor's opinion on the statement, shall be filed in the office
of the City Secretary within 1.80 days after the last day of the Issuer's fiscal year. Additionally,
upon the filing of this financial statement and the annual audit, these documents are subject to
the Texas Open Records Act, as amended, Texas Government Code, Chapter 552.
If the Issuer changes its fiscal year, it will file notice of such change (and of the date of
the new fiscal year end) with the MSRB prior to the next date by which the Issuer otherwise
would be required to provide financial information and operating data pursuant to this Section.
C. Notice of Certain Events.
The Issuer shall file notice of any of the following events with respect to the Bonds to the
MSRB in a timely manner and not more than 10 business days after occurrence of the event:
(1) Principal and interest payment delinquencies;
(2) Non - payment related defaults, if material;
(3) Unscheduled draws on debt service reserves reflecting financial
difficulties;
(4) Unscheduled draws on credit enhancements reflecting financial
difficulties;
(5) Substitution of credit or liquidity providers, or their failure to perform;
(6) Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701 -TEB), or other material notices or determinations with
respect to the tax status of the Bonds, or other material events affecting the
tax status of the Bonds;
(7) Modifications to rights of holders of the Bonds, if material;
(8) Bond calls, if material, and tender offers;
28181154.4 -32-
(9) Defeasances;
(10) Release, substitution, or sale of property securing repayment of the Bonds,
if material;
(11) Rating changes;
(12) Bankruptcy, insolvency, receivership, or similar event of the Issuer, which
shall occur as described below;
(13) The consummation of a merger, consolidation, or acquisition involving the
Issuer or the sale of all or substantially all of its assets, other than in the
ordinary course of business, the entry into of a definitive agreement to
undertake such an action or the termination of a definitive agreement
relating to any such actions, other than pursuant to its terms, if material;
and
(14) Appointment of a successor or additional paying agent /registrar or the
change of name of a paying agent /registrar, if material.
For these purposes, any event described in the immediately preceding paragraph (12) is
considered to occur when any of the following occur: the appointment of a receiver, fiscal agent,
or similar officer for the Issuer in a proceeding under the United States Bankruptcy Code or in
any other proceeding under state or federal law in which a court or governmental authority has
assumed jurisdiction over substantially all of the assets or business of the Issuer, or if such
jurisdiction has been assumed by leaving the existing governing body and officials or officers in
possession but subject to the supervision and orders of a court or governmental authority, or the
entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or
business of the Issuer.
The Issuer shall file notice with the MSRB, in a timely manner, of any failure by the
Issuer to provide financial information or operating data in accordance with this Section by the
time required by this Section.
D. Limitations Disclaimers and Amendments.
The Issuer shall be obligated to observe and perform the covenants specified in this
Section for so long as, but only for so long as, the Issuer remains an "obligated person" with
respect to the Bonds within the meaning of the Rule, except that the Issuer in any event will give
notice of any deposit that causes the Bonds to be no longer Outstanding.
The provisions of this Section are for the sole benefit of the holders and beneficial
owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or
any legal or equitable right, remedy, or claim hereunder to any other person. The Issuer
undertakes to provide only the financial information, operating data, financial statements, and
notices which it has expressly agreed to provide pursuant to this Section and does not hereby
undertake to provide any other information that may be relevant or material to a complete
28181154.4 -33-
presentation of the Issuer's financial results, condition, or prospects or hereby undertake to
update any information provided in accordance with this Section or otherwise, except as
expressly provided herein. The Issuer does not make any representation or warranty concerning
such information or its usefulness to a decision to invest in or sell Bonds at any future date.
UNDER NO CIRCUMSTANCES SHALL THE ISSUER BE LIABLE TO THE
HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN
CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM
ANY BREACH BY THE ISSUER, WHETHER NEGLIGENT OR WITH OR WITHOUT
FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY
RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON
ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR
MANDAMUS OR SPECIFIC PERFORMANCE.
No default by the Issuer in observing or performing its obligations under this Section .
shall constitute a breach of or default under this Ordinance for purposes of any other provision of
this Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the
duties of the Issuer under federal and state securities laws.
The provisions of this Section may be amended by the Issuer from time to time to adapt
to changed circumstances that arise from a change in legal requirements, a change in law, or a
change in the identity, nature, status, or type of operations of the Issuer, but only if (1) the
provisions of this Section, as so amended, would have permitted an underwriter to purchase or
sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account
any amendments or interpretations of the Rule to the date of such amendment, as well as such
changed circumstances, and (2) either (a) the holders of a majority in aggregate principal amount
(or any greater amount required by any other provision of this Ordinance that authorizes such an
amendment) of the Outstanding Bonds consent to such amendment or (b) a person that is
unaffiliated with the Issuer (such as nationally recognized bond counsel) determines that such
amendment will not materially impair the interests of the holders and beneficial owners of the
Bonds. The Issuer may also repeal or amend the provisions of this Section if the SEC amends or
repeals the applicable provisions of the Rule or any court of final jurisdiction enters judgment
that such provisions of the Rule are invalid, and the Issuer also may amend the provisions of this
Section in its discretion in any other manner or circumstance, but in either case only if and to the
extent that the provisions of this sentence would not have prevented an underwriter from
lawfully purchasing or selling Bonds in the primary offering of the Bonds, giving effect to (a)
such provisions as so amended and (b) any amendments or interpretations of the Rule. If the
Issuer so amends the provisions of this Section, the Issuer shall include with any amended
financial information or operating data next provided in accordance with this Section an
explanation, in narrative form, of the reasons for the amendment and of the impact of any change
in the type of financial information or operating data so provided.
28181154.4 -34-
E. Information Format — Incorporation by Reference.
The Issuer information required under this Section shall be filed with the MSRB through
EMMA in such format and accompanied by such identifying information as may be specified
from time to time thereby. Under the current rules of the MSRB, continuing disclosure
documents submitted to EMMA must be in word - searchable portable document format (PDF)
files that permit the document to be saved, viewed, printed, and retransmitted by electronic
means and the series of obligations to which such continuing disclosure documents relate must
be identified by CUSIP number or numbers.
Financial information and operating data to be provided pursuant to this Section may be
set forth in full in one or more documents or may be included by specific reference to any
document (including an official statement or other offering document) available to the public
through EMMA or filed with the SEC.
SECTION 37: Further Procedures. The officers and employees of the Issuer are hereby
authorized, empowered and directed from time to time and at any time to do and perform all such
acts and things and to execute, acknowledge and deliver in the name and under the corporate seal
and on behalf of the Issuer all such instruments, whether or not herein mentioned, as may be
necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial
sale and delivery of the Bonds, the Official Bid Form, the Paying Agent /Registrar Agreement,
and the Official Statement. In addition, prior to the initial delivery of the Bonds, any Authorized
Official and Bond Counsel are hereby authorized and directed to approve any technical changes
or corrections to this Ordinance or to any of the instruments authorized and approved by this
Ordinance and as described in the Official Statement necessary in order to: (i) correct any
ambiguity or mistake or properly or more completely document the transactions contemplated
and approved by this Ordinance; (ii) obtain a rating from any of the national bond rating
agencies; or (iii) obtain the approval of the Bonds by the Texas Attorney General's office. In
case any officer of the Issuer whose signature shall appear on any certificate shall cease to be
such officer before the delivery of such certificate, such signature shall nevertheless be valid and
sufficient for all purposes the same as if such officer had remained in office until such delivery.
SECTION 38: Contracts with Financial Advisor and/or Bond Counsel. The Governing
Body authorizes each Authorized Official, or their designees, to take all actions necessary to
execute any necessary financial advisory contracts with SAMCO Capital Markets, Inc., as the
financial advisor to the Issuer (the Financial Advisor). The Issuer understands that under
applicable federal securities laws and regulations that the Issuer must have a contractual
arrangement with its Financial Advisor relating to the sale, issuance, and delivery of the Bonds.
In addition, the Governing Body also authorizes each Authorized Official, or their designees, to
take all actions necessary to execute any necessary engagement agreement with Norton Rose
Fulbright US LLP, as the Bond Counsel to the Issuer.
SECTION 39: Issuer's Consent to Provide Information and Documentation to the Texas
MAC. The Municipal Advisory Council of Texas (the Texas MAC), a non -profit membership
corporation organized exclusively for non - profit purposes described in section 501(c)(6) of the
Internal Revenue Code and which serves as a comprehensive financial information repository
regarding municipal debt issuers in Texas, requires provision of written documentation regarding
28181154.4 -35-
the issuance of municipal debt by the issuers thereof. In support of the purpose of the Texas
MAC and in compliance with applicable law, the Issuer hereby consents to and authorizes any
Authorized Representative, Bond Counsel to the Issuer, and/or Financial Advisor to the Issuer to
provide to the Texas MAC information and documentation requested by the Texas MAC relating
to the Bonds; provided, however, that no such information and documentation shall be provided
prior to the Closing Date. This consent and authorization relates only to information and
documentation that is a part of the public record concerning the issuance of the Bonds.
SECTION 40: Effective Date. Pursuant to the provisions of Section 1201.028, as
amended, Texas Government Code, this Ordinance shall be effective immediately upon
adoption, notwithstanding any provision in the City's Home Rule Charter to the contrary
concerning a multiple reading requirement for the adoption of ordinances.
28181154.4 -36-
PASSED, APPROVED AND ADOPTED by the Governing Body of the City of Schertz,
Texas, this the 23rd day of May, 2017.
CITY OF SCHERTZ, TEXAS
Mayor
City Secretary
(CITY SEAL)
28181154.4 S -1
ExhibiA----------------------.. Paying Agent/Registrar Agreement
28181154.4 Index-1
lWall
Paying Agent/Registrar Agreement
See Tab No.
28181154.4 A-1
Official Bid Form
See Tab No.
28181154.4 B -1
Imall
DTC Letter of Representations
See Tab No.
28181154.4 C-1
1
Description of Annual Financial Information
The following information is referred to in Section 36 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided
annually in accordance with such Section are as specified (and included in the Appendix or
under the headings of the Official Statement referred to) below:
(1) The City's audited financial statements for the most recently concluded fiscal year
or to the extent these audited financial statements are not available, the portions of the unaudited
financial statements of the City attached to the Official Statement as Appendix D, but for the
most recently concluded fiscal year.
The information in the Official Statement under Table 1 of the Official Statement and
Tables 1 through 10 of Appendix A to the Official Statement.
Accounting Principles
The accounting principles referred to in such Section are generally accepted accounting
principles for governmental units as prescribed by the Government Accounting Standards Board
from time to time.
28181154.4 D -1
Agenda No. 6
CITY COUNCIL MEMORANDUM
City Council Meeting: May 23, 2017
Department: City Manager
Subject: Resolution No. 17 -R -28 — A Resolution by
the City Council of the City of Schertz,
Texas authorizing the City Manager to enter
into an Agreement to purchase
approximately 5.3 acres of land for the
construction of a Fire Station
1 ��4:T J Z111L`I 1
On February 7, 2017 City Council authorized the City Manager to negotiate pricing with Schertz
1518 LTD for the purchase of approximately 5.3 acres of land. The location of the desired piece
of land is approximately 340 feet east of the intersection of Hollering Vine and Lower Seguin
Road, on the north side of Lower Seguin Road. This location was determined to be the best
location based upon a number of factors as studied by Mr. Mike Pietsch, P.E. as a part of an ISO
Based Fire Station Location study in early 2015.
Through negotiations, the parties have agreed to pay $2.88 per square foot for each square foot
that is not included in what will be a Right of Way dedication along Lower Seguin Road at the
front of the property. It is estimated that, after survey, the City will pay $2.88 for approximately
4.5 acres with approximately 0.8 acres being included as a future Right of Way dedication. This
price is the appraised value for the land as determined by a certified land appraiser conforming to
the Uniform Standards of Professional Appraisal Practice and Title XI Regulations and related
standards.
Once this Agreement is signed by both parties, a sixty day due diligence process will begin.
During this time, the Seller will have the land surveyed and the City will perform geo- technical
review of the property. Once all due diligence is complete and both parties are satisfied, the land
purchase will be completed.
If, at any time, an issue arises during due diligence that would preclude this piece of land from
being an appropriate location for a Fire Station, the agreement will be terminated and the City
will begin a new process of obtaining a piece of property from lower ranked locations identified
in our ISO study.
Council Action
Staff is seeking authorization from the City Council to enter into an agreement with Schertz 1518
LTD for the purchase of approximately 5.3 acres of land.
Community Benefit
The construction of Fire Station 3 will improve the overall response capabilities of Schertz
Fire /Rescue. This will be most notable in areas of Schertz south of F.M. 78, but this addition
will improve responses all across the City.
The land we are proposing to purchase will place this new station in a location that will
maximize the exposure to our citizens and will allow for safe ingress and egress of emergency
vehicles for years to come.
Summary of Recommended Action
City staff recommends that City Council approve Resolution 17 — R — 28 authorizing the City
Manager to enter into an agreement to purchase approximately 5.3 acres of land on the north side
of Lower Seguin Road and east of Hollering Vine as the site for Fire Station 3.
FISCAL IMPACT
Based upon the appraisal recently completed, we anticipate the purchase price to be within the
scope of the budget. These funds will come from funding identified within the TIRZ agreement
or from the voter approved GO bonds for Fire Station 3.
RECOMMENDATION
Staff recommends Council approval of Resolution 17 -R -28.
ATTACHMENTS
Resolution 17 -R -28
Draft Site :Plan of Fire Station 3
RESOLUTION NO. 17 -R -28
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER
INTO AN AGREEMENT WITH SCHERTZ 1518 LTD TO PURCHASE
APPROXIMATELY 5.3 ACRES OF LAND FOR THE CONSTRUCTION
OF FIRE STATION THREE.
WHEREAS, the citizens of the City of Schertz voted to approve general obligation bonds
for the construction of a new fire station in the southern section of Schertz; and
WHEREAS, an ISO Based Fire Station Location study was performed by a professional
engineer as a part of the City's overall facility master plan; and
WHEREAS, the Fire Station Location study identified three preliminary locations in the
vicinity of F.M. 1518 and Ray Corbett Drive as appropriate locations for fire station three; and
WHEREAS, additional review was conducted on these three preliminary locations based
upon potential site layout, utility availability and accessibility, drainage and flooding concerns,
emergency travel routes, and options for safely entering into normal traffic flow to rank order the
three locations from most feasible to least feasible; and
WHEREAS, a parcel of land on the north side of Lower Seguin Road, approximately 340
feet east of Hollering Vine was determined to be the most feasible location for the new fire
station; and
WHEREAS, negotiations with Schertz 1518 LTD have resulted in a purchase agreement
being formed; and now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
Section 1. The City Council hereby authorizes the City Manager to enter in an
agreement for the purchase of approximately 5.3 acres of land for the location of Fire Station
Three with a general value conforming to an appraised value for land by a certified land
appraiser conforming to the Uniform Standards of Professional Appraisal. Practice and Title XI
Regulations and related standards.
Section 2. City Council authorizes the City Manager to perform due diligence to
confirm that this parcel of land is suitable in condition for the construction of a fire station.
Section 3. City Council acknowledges that once all due diligence is complete and it
is confirmed that this land is suitable for its intended usage, that the City will then close on the
purchase of the land.
Section 4. 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 5. 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 6. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 7. 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 8. 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 9. 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
Mayor, Michael R. Carpenter
ATTEST:
City Secretary, Brenda Dennis
(CITY SEAL)
50506221.1 - 2 -
REAL ESTATE PURCHASE AGREEMENT
THIS REAL ESTATE PURCHASE AGREEMENT (the "Agreement ") is made and entered into as
of the Effective Date (being the date of last execution hereof by the parties), by and between:
SCHERTZ 1518, LTD., a Texas limited partnership, having an address of 314 E. Commerce, Suite 600,
San Antonio, Texas 78205 (the "Seller "),
W
THE CITY OF SCHERTZ, TEXAS, a Texas municipal corporation, having an address of 1400 Schertz
Parkway, Schertz, Texas 78154 (the "Buyer ").
FOR GOOD AND VALUABLE CONSIDERATION, including without limitation the covenants and
agreements contained herein, the receipt and sufficiency of which are hereby acknowledged, Seller
and Buyer hereby agree as follows:
1. SALE AGREEMENT; PROPERTY. Seller agrees to sell to Buyer and Buyer agrees to purchase
from Seller, on the terms hereinafter stated, approximately 5.3 acres of land located in the City of
Schertz, Bexar County, Texas, the legal description of which will be generated in conjunction with a
survey of such parcel, together with all improvements and fixtures located thereon, if any, and all
and singularly rights and appurtenances pertaining thereto (collectively, the "Property "). The
proposed land is located approximately 340 feet east of Hollering Vine on the north side of Lower
Seguin Road. A proposed site plan with actual dimensions of the land is more particularly described
on Exhibit A attached hereto. The Property includes surface rights only and does not include the
transfer of mineral rights, which shall remain with the Seller.
2. PURCHASE PRICE. Seller agrees to pay to Buyer a purchase price of $2.88 per square foot,
with the exact total amount determined following the survey of the subject parcel (the "Purchase
Price "). The calculation of the Purchase Price shall not include any portion of the Property that is
anticipated to become dedicated right of way. The parties further acknowledge that the Purchase
Price payable by Buyer is subject to certain requirements, rules, regulations and statutes of state and
local governmental agencies. The Purchase Price shall be payable as follows:
2.1 Earnest Money. Upon Seller's execution of this Agreement and delivery thereof to
Buyer (by mail, facsimile or email), Buyer shall deposit $1,000.00 in current U.S. funds (the "Earnest
Money ") with the Title Company (defined below) to be applied against the Purchase Price at Closing
(as defined below) or otherwise disposed of pursuant to the terms of this Agreement.
2.2 Cash Payment. At Closing, Buyer shall pay to Seller the balance of the Purchase
Price, subject to adjustment as hereinafter provided, in immediately available current U.S. funds or
such other form of consideration as may be mutually acceptable to the parties hereto.
TITLE AND SURVEY REVIEW.
3.1 Title Commitment. As soon after the Effective Date as reasonably possible, Seller
shall obtain a commitment for the issuance by Chicago Title Company, (the "Title Company "),
Contact Paula McGee; phone (210)482 -3748; email paula.mcgee @ctt.com of a TLTA owner's title
insurance policy, with extended coverage, insuring title to the Property to be good and marketable
fee simple (the "Commitment "), together with legible copies of all recorded documents constituting
exceptions under the Commitment (collectively, the "Exception Documents "). .
3.2 Survey. As soon after the effective date as reasonably possible, Seller shall obtain
and provide a boundary survey of the Property (the "Survey ") prepared by a registered professional
surveyor.
3.3 Title and Survey Objections; Cure Period. Within twenty (20) days after Buyer's
receipt of the Commitment, Exception Documents and Survey, Buyer shall give written notice to
Seller of (i) any matters contained therein to which Buyer objects, has comments or wants additional
information on; and (ii) any pre - Closing requirements (the "Title Objection Letter "). Any matters
identified in the Commitment as conditions to or requirements for the issuance of the Title Policy (as
defined in Section 16 below) will automatically constitute objections by Buyer. Seller shall have 20
days after receipt of Buyer's Title Objection Letter to use its best efforts to cure and /or satisfy the
same, as the case may be, to the reasonable satisfaction of Buyer. If an objection is not timely cured
or requirement timely satisfied, Buyer shall have the option to either (a) waive the same; (b) extend
Seller's period for curing objections or satisfying requirements; or (c) terminate this Agreement and
receive a refund of the Earnest Money (along with any interest earned thereon), in which event both
parties will be relieved of any further liability hereunder (except as otherwise expressly provided
herein).
4. BUYER'S RIGHT OF INSPECTION; DUE DILIGENCE. Seller agrees that Buyer, its
representatives and agents, will be permitted a period of 60 days, commencing on the Effective Date
(the "Inspection Period "), within which to enter upon and inspect the Property and to conduct, at
Buyer's expense, any and all feasibility, environmental, or other studies, analyses or examinations of
the Property as Buyer deems necessary or desirable, and to satisfy itself with regard to zoning and
permitting issues, availability of utilities, and all other matters related to the Property and /or Buyer's
development thereof. Buyer shall have the option to extend the Inspection Period for one additional
30 -day periods. If during the Inspection Period (as extended, as the case may be) Buyer, in its sole
and absolute discretion, determines that the Property is unsatisfactory in any respect, Buyer shall
have the option to terminate this Agreement by written notice to Seller. In such event, the Earnest
Money, along with any interest earned thereon, shall immediately be returned to Buyer and both
parties will be relieved of all obligations hereunder (except as otherwise expressly provided herein).
S. SELLER'S DELIVERIES BEFORE CLOSING. Within 10 days after the Effective Date, Seller shall
make available to Buyer all plans, engineering or environmental reports, surveys and records, in
Seller's possession or control, which relate to the ownership, development, operation or condition of
the Property or any part thereof.
6. SELLER'S WARRANTIES. Seller represents and warrants the following as of the Effective Date
and the Closing:
6.1 Authority of Seller. Seller has full power and authority to execute, deliver and
perform under this Agreement and such execution, delivery and performance have been specifically
authorized by all requisite organizational action of Seller. Upon execution, this Agreement will be
valid and binding upon Seller, and enforceable against Seller in accordance with its terms.
6.2 No Violations /Conflicts. The execution by Seller of this Agreement and the
consummation by Seller of the transactions contemplated hereby do not and will not (a) conflict with
or result in a breach of any of the terms or provisions of, or constitute a default or a condition which,
with notice or lapse of time, or both, would ripen into a default under (i) any bond, debenture, note
or other evidence of indebtedness, or (ii) any contract, indenture, mortgage, loan agreement, lease,
joint venture or other agreement or instrument to which Seller is a party or by which Seller or any of
its properties are bound; or (b) result in any violation of any governmental requirement, ordinance,
regulation, law or statute.
6.3 Eminent Domain. To Seller's knowledge, there are no pending or threatened
governmental proceedings in eminent domain, for rezoning, for building moratorium or otherwise,
which would affect the Property or any part thereof, nor any facts in existence which may give rise to
any such action or proceeding.
6.4 Litigation. There are no legal actions, suits or other legal or administrative
proceedings or investigations pending or threatened against Seller or the Property, and Seller is not
aware of any facts that might result in any such action, suit, investigation or other proceeding.
6.5 Taxes and Assessments. No claim or liability is pending or has been assessed,
asserted or threatened, or will be assessed or asserted against Seller in connection with any ad
valorem taxes against the Property (and personal property taxes owed by Seller related thereto, if
any) or any special assessments encumbering the Property, which are or may become a lien or
charge against the Property or any part thereof. Seller has not received any notice of any special
assessment or increases in the assessed valuation of taxes or other impositions of any nature which
are pending or being contemplated with respect to the Property, or any part thereof.
6.6 No Agreements or Commitments. Except as disclosed in writing to Buyer prior to
the Effective Date, Seller has not entered into (i) any agreement, lease, option, right of first refusal,
commitment or arrangement granting to any person or entity, other than Buyer, the present or
future right to purchase, occupy, lease or otherwise acquire an interest in the Property or any part
thereof, (ii) any agreement, commitment or arrangement regarding the development of the Property
or any part thereof and from the Effective Date through Closing, Seller will not enter into any such
agreement or arrangement or any service agreement affecting the Property or any part thereof,
without Buyer's prior written approval.
6.7 Governmental Action /Requirement. Seller has not received notice of any violation
of any ordinance, regulation, law or statute from any governmental agency pertaining to the
Property, or any part thereof, and to Seller's knowledge, no governmental or quasi - governmental
authority has imposed any requirement that a developer of the Property pay, whether directly or
indirectly, any special fees or contributions, or incur any expenses or obligations, in connection with
any development of the Property, or any part thereof.
6.8 Environmental. To the best of Seller's knowledge and belief after due inquiry:
(a) no Hazardous Materials (as defined herein) are now located on, under or at the
Property, and neither Seller nor any other person has ever caused or permitted any
Hazardous Materials to be placed, held, located or disposed of on, under or at the Property
or any part thereof;
(b) no part of the Property contains any asbestos or asbestos containing materials,
any polychlorinated biphenyls ( "PCBs "), or any underground storage tanks ( "USTs "), or has
ever been used as a dump site or storage site (whether permanent or temporary) for any
Hazardous Materials;
(c) no property adjoining the Property is being used, or has been used at any
previous time for the disposal, storage, treatment, processing or other handling of
Hazardous Materials nor is any other property adjoining the Property affected by Hazardous
Materials contamination; and
(d) no investigation, administrative order, consent order and agreement, litigation
or settlement with respect to Hazardous Materials or Hazardous Materials contamination is
proposed, threatened, anticipated or in existence with respect to the Property or any
adjoining property.
As used herein, "Hazardous Materials" means those elements or compounds,
including, but not limited to asbestos, petroleum products and PCBs, which are now or at
any time hereafter contained in the list of hazardous substances adopted by the
Environmental Protection Agency ( "EPA ") or the list of toxic pollutants designated by
Congress or the EPA or which are defined as hazardous, toxic, pollutant, flammable,
infectious or radioactive by any of the Environmental Laws. "Environmental Laws" means
any federal, state or local laws, ordinances, statutes, codes, rules, regulations, orders, or
decrees now or hereinafter promulgated relating to (a) pollution, (b) protection of human
health, natural resources or the environment, (c) the treatment, storage or disposal of
Hazardous Materials, or (d) the emission, discharge, release, or threatened release of
Hazardous Materials into the environment.
6.9 Wetlands. No part of the Property is wetlands property.
The foregoing representations and warranties will survive the Closing, will not be merged into the
documents executed at or in conjunction with the Closing, and will not be affected by an
investigation, verification or approval by a party hereto or any person acting on behalf of a party
hereto.
7. OTHER CONDITIONS. The parties agree that, in addition to all of the other terms and
conditions set forth in this Agreement, that: (i) the design of any improvements to be constructed on
the Property shall be approved by The Crossvine Reviewer (composed of Chris Price, Bradley Bechtol,
Brad Pittenger, and Felicia Foster) (including conceptual site plan, schematic building size and
location, preliminary utilities, and exterior materials.) (ii) that Buyer shall be responsible for the costs
and expenses associated with the design and construction of (a) any and all drainage improvements,
including, but not limited to detention or retention facilities, (b) utility infrastructure, (c) traffic
improvements, including, but not limited to traffic signals, turn lanes, acceleration or deceleration
lanes, curb cuts or entrances and that such facilities shall be sized to accommodate any anticipated
improvements by Seller adjacent or proximate to the Property and (iii) Buyer and Seller shall agree
upon the terms of cross access easements, construction of perimeter roads adjacent to the Property
and similar matters prior to the expiration of the Inspection Period. Seller understands and
acknowledges that the intended use of the site is for public safety vehicles and that unrestricted
exclusive vehicle access for emergency vehicles will be mandatory element of the site plan design.
(d) Buyer shall be responsible for platting the parcel and dedicating the required Right of Way,
however, the portion of the parcel dedicated for Right of Way will not be used to calculate the
purchase price of the parcel.
The location will be utilized to build Fire Station # 3, a one or two story structure of approximately
15,000 square feet with typical fire station amenities. Additionally, the Buyer may utilize the land for
other City facilities as determined by the Buyer. The Crossvine Reviewer will have the same approval
capacity on any other facilities constructed on the location as they do with the Fire Station structure.
Site work will include any required street extension design as well as all utilities and the appropriate
number of parking spaces required by the final design.
8. TIME AND PLACE OF CLOSING. The consummation of the transaction contemplated by this
Agreement (the "Closing ") shall take place within sixty (60) days of the end of the Inspection Period
(as extended, as the case may be), with the exact time and date for Closing to be designated by
Buyer upon not less than 2 business days prior notice (which may be provided in writing or by
telephone), subject to the reasonable approval of Seller. The Closing will take place at the offices of
the Title Company (whether in person or as a "paper closing ", as each party elects) or at such other
place as may be agreed to by Buyer and Seller.
9. SELLER'S DELIVERIES AT CLOSING. At Closing, Seller shall deliver (or cause to be delivered)
to Buyer the following:
9.1 Deed. A duly- executed and acknowledged General Warranty Deed conveying to
Buyer marketable fee simple title to all of the Property (the "Deed ") free of all liens and
encumbrances and defects in title. The Deed will be in form prepared by Buyer, subject to the
reasonable approval of Seller.
9.2 Lien and Possession Affidavit(s). An Affidavit or Affidavits executed by Seller, to the
effect that (i) the Property is free from claims for mechanics', materialmen's and laborers' liens and
(ii) there are no parties in possession of the Property or any part thereof, with such Affidavit(s) to be
in form acceptable to the Title Company and sufficient to permit deletion of the pertinent standard
exceptions.
9.3 Possession. Possession of the Property will be delivered at Closing.
9.4 Closing Statement. The closing statement, prepared by the Title Company,
reflecting the financial terms of the transaction contemplated by this Agreement (the "Closing
Statement "), executed by Seller.
9.5 Further Instruments. Any and all further instruments which Buyer or the Title
Company shall request of Seller in order to meet requirements of the Commitment or to otherwise
effect the conveyance of the Property as contemplated in this Agreement.
10. BUYER'S DELIVERIES AT CLOSING. At Closing, Buyer shall deliver to Seller (i) the remainder
of the Purchase Price, subject to proration and adjustment, as provided herein; (ii) the Closing
Statement, executed by Buyer; and (iii) any and all further instruments which Seller or the Title
Company shall request of Buyer in order to meet requirements of the Commitment or to otherwise
effect the conveyance of the Property as contemplated in this Agreement.
11. CLOSING COSTS. The Closing costs of this transaction will be allocated as follows:
BUYER
COST OR EXPENSE
SELLER
Seller's attorney's fees, if any
X
X
Buyer's attorney's fees, if any
Commitment / Title Policy premium (basic coverage)
X
X
Title Policy premium (extended coverage)
Survey, as revised
X
Documentary stamps, transfer taxes or fees, if any
X
Recording fees to clear / un- encumber title
X
X
Recording fees for deed
Y2
Title Company closing or escrow charges
Y2
Broker fees /Commissions
X
12. BROKERAGE. Any broker fees or commissions owed to persons employed by Buyer in
connection herewith shall be paid by Buyer. Seller represents that it has not dealt with any real
estate broker, salesperson or finder, in connection with the transactions contemplated by this
Agreement and agrees to indemnify, defend and hold Buyer harmless from and against any and all
liabilities and claims for broker fees, commissions or similar charges by anyone purporting to have
acted on Seller's behalf, in regard to this Agreement.
13. DEFAULT AND REMEDIES.
13.1 Buyer's Default - Seller's Remedy. If Buyer defaults in its performance hereunder
(except as excused by Seller's default) and fails to cure such default within 10 days after receipt of
written demand therefore from Seller, then Seller shall have the exclusive option to either (i) waive
the default; or (ii) terminate this Agreement by written notice to Buyer and upon such termination
Seller shall be entitled to receive the Earnest Money (along with any interest earned thereon) as
liquidated damages and not as a penalty, it being specifically agreed that the actual damages to
Seller as a result of Buyer's default would be difficult or impossible to ascertain. Upon such
termination and receipt of the Earnest Money, the parties will be discharged from any further
obligations and liabilities hereunder (except as otherwise expressly provided herein).
13.2 Seller's Default - Buyer's Remedy. If Seller defaults in its performance hereunder
(except as excused by Buyer's default) and fails to cure such default within 10 days after receipt of
written demand therefore from Buyer, or in the event any of Seller's representations or warranties
are found to be false in any material respect, Buyer shall have the option to (i) seek specific
performance; (ii) waive such default; or (iii) terminate this Agreement by written notice to Seller and
upon such termination the Earnest Money (along with any interest earned thereon) shall be returned
to Buyer and Buyer may, if it so elects, pursue against Seller any and all available remedies, including
but not limited to damages.
F�lI►TItyI tom NILI1114 LTA ILIIr��/l
14.1 By Buyer. Buyer agrees to hold Seller harmless from any claim, action, demand,
judgment, cost and expense (including without limitation, reasonable attorneys' fees) related to the
Property (except that which by this Agreement is to remain the obligation of Seller), to the extent
arising or accruing subsequent to the date of Closing, whether in tort or contract, and whether the
same be filed in court or not.
14.2 By Seller. Seller agrees to defend, indemnify and to hold Buyer harmless from any
claim, action, demand, judgment, cost and expense (including without limitation, reasonable
attorneys' fees) related to the Property, to the extent arising or relating to an event occurring prior
to the date of Closing, no matter when the same is instituted (i.e. prior to or after the date of
Closing), whether in tort or contract, and whether the same be filed in court or not.
The indemnification obligations of this Section 14 are in addition to any other indemnity obligations
under this Agreement and shall survive the Closing or earlier termination of this Agreement for a
period of four (4) years.
15. CASUALTY LOSS; EMINENT DOMAIN. All risk of loss by fire or other casualty in relation to
the Property will be on Seller up to and including the date of Closing. If eminent domain proceedings
are commenced with respect to any part of the Property prior to the date of Closing, or if Buyer is
advised by any authority having eminent domain powers that a condemnation of any part of the
Property is contemplated, then Buyer, at its option, may (i) terminate this Agreement, in which event
the Earnest Money (along with any interest earned thereon) shall be returned to Buyer and the
parties will be relieved of all obligations hereunder (except as otherwise expressly provided herein);
or (ii) continue this Agreement in force, in which event any condemnation proceeds received by
Seller shall be immediately paid over to Buyer (or escrowed with the Title Company for the account
of Buyer, if prior to Closing), which obligation of Seller will survive the Closing.
16. CONDITIONS PRECEDENT TO OBLIGATION OF BUYER TO CLOSE. In addition to any other
conditions precedent herein, the obligation of Buyer to close under this Agreement is subject to the
following:
16.1 Title. Prior to Closing, Buyer shall have received and approved of the marked -up
Commitment or pro forma title policy, indicating the Title Company's agreement to issue, in due
course, a TLTA owner's policy of title insurance (the "Title Policy ").
16.2 Representations and Warranties. All representations and warranties of Seller shall
be true and correct on the date of Closing with the same force and effect as if then made.
If any condition precedent is not timely satisfied, Buyer shall have the right, at its option, to
terminate this Agreement by written notice to Seller, in which event, the Earnest Money (along with
any interest earned thereon) shall be immediately returned to Buyer and both parties shall be
relieved of all obligations hereunder (except as otherwise expressly provided herein).
17. PRORATION OF TAXES; ROLLBACK TAXES; ESCROW AGREEMENT.
17.1 In General. All general and ad valorem taxes accruing in or assessed with respect to
the Property during the calendar year of the Closing shall be prorated on the basis of such calendar
year between Buyer and Seller as of the date of Closing, with Seller to have the last day. If Closing
shall occur before the tax rate is fixed for the then current year, the apportionment of taxes shall be
upon the basis of the tax rate of the preceding year applied to the latest assessed valuation;
provided that, upon determination of the tax rate and assessment for the calendar year of the
Closing, the parties shall promptly make any monetary adjustment necessary to account for any
variance in such taxes.
17.2 Rollback Taxes; Larger Tax Parcel; Escrow Agreement. Any and all rollback taxes or
other taxes assessed against the Property covering periods prior to Closing (herein, "Additional
Taxes "), irrespective of the triggering event, timing of assessment, or whether notice thereof is
received prior to or after Closing, shall be the sole obligation of Buyer, it being expressly agreed that,
in no event, shall Seller have any responsibility or liability for Additional Taxes, Buyer shall timely pay
the same and Buyer shall indemnify, defend and hold Seller harmless from any claims, damages or
expenses (including but not limited to attorney's fees) related thereto. If it is determined prior to
Closing that (a) the Property is or will be subject to Additional Taxes and /or (b) the Property is part of
a larger tax parcel (the "Primary Tax Parcel "), the parties shall enter into an escrow agreement on or
before Closing, which shall provide for (as applicable) (i) the escrow of sufficient funds by Seller to
pay any Additional Taxes, and (ii) the escrow of sufficient funds by the parties to pay all taxes
assessed (or to be assessed) against the Primary Tax Parcel, in accordance with an agreed upon
formula for reasonably allocating the same between the Property and the remaining portion of the
Primary Tax Parcel (the "Allocation Formula ").
17.3 Insufficient or Surplus Escrow Funds. If there are inadequate funds in escrow to
satisfy any Additional Taxes, Buyer shall pay therein such additional funds as are necessary, within 5
days from the date Seller receives notification of an inadequacy. If there are inadequate funds in
escrow to satisfy taxes attributable to the Primary Tax Parcel, the parties shall pay therein such
additional funds as are necessary, in accordance with the Allocation Formula, within 5 days from the
date the parties receive notification of an inadequacy. In the event there is a surplus of funds after
Additional Taxes and taxes attributable to the Primary Tax Parcel have been paid in full, such surplus
is to be refunded (a) to Seller, as to any surplus escrowed to cover Additional Taxes and /or (b) to
Seller and Buyer, in accordance with the Allocation Formula, as to any taxes attributable to the
Primary Tax Parcel.
18. NOTICE. All notices or other communication hereunder must be in writing (except where
expressly permitted otherwise) and given by personal delivery or sent by (i) registered or certified
mail return receipt requested, postage prepaid, (ii) nationally recognized overnight courier service,
or (iii) facsimile transmission, addressed as follows (unless written notice of change thereof is
provided):
With a copy to:
TO BUYER:
City of Schertz
1400 City of Schertz Parkway
Schertz, Texas 78154
Attn: Dudley Wait
Telephone: (210)619 -1025
Facsimile: (210)619 -1029
E -mail: dwait @schertz.com
With a copy to:
City of Schertz
1400 City of Schertz Parkway
Schertz, Texas 78154
Attn: John Kessell
Telephone: (210)619 -1020
Facsimile: (210)619 -1029
E -mail: jkessell @schertz.com
Notice shall be deemed received on the earlier of (i) actual receipt; (ii) 3 business days after deposit
in the U.S. Mail; (iii) the first business day after deposit with an overnight courier; or (iv) if by
facsimile transmittal, upon receipt of proof of transmission. Any notice or communication not
received because of a change of address or facsimile number, without notice to the other party
thereof, or refusal to accept delivery, will be deemed received, notwithstanding the same, as set
forth above.
19. CONFIDENTIALITY; NON - DISCLOSURE. Buyer and Seller hereby agree that all aspects of the
transaction contemplated by this Agreement shall be kept strictly confidential and acknowledge that
disclosure of the fact that the parties have entered into this Agreement or of any of the terms hereof
could cause irreparable harm to Buyer. Except as may be required by law or as may be necessary to
evaluate the Property in connection with the purchase contemplated by this Agreement, Buyer and
Seller shall not divulge any information to other persons or entities, including, without limitation,
appraisers, real estate brokers, competitors of the parties, or any other prospective purchasers;
provided, however, that the foregoing shall not preclude Buyer from disclosing information to its
employees, agents and professional advisors, or Seller from disclosing information to individuals
upon prior written consent of Buyer, so long as such individuals acknowledge the confidential nature
of the information disclosed to them and agree to be bound by the terms and conditions of this
Section 19. Furthermore, Buyer and Seller, hereby agree that neither will release, or cause or permit
to be released, any press notices, publicity (oral or written), or advertising promotion relating to, or
otherwise announce or disclose or cause or permit to be announced or disclosed, in any manner
whatsoever, the terms, conditions or substance of this Agreement or the transactions contemplated
hereby, without first obtaining the written consent of the other party hereto.
20. MISCELLANEOUS. Time is of the essence in this Agreement. This Agreement embodies the
entire understanding with respect to the subject matter hereof, may not be modified except by a
written instrument signed by the parties and shall be binding upon and inure to the parties, their
respective successors and assigns. The terms hereof shall not be construed in favor of or against
either party, but shall be construed as if Buyer and Seller jointly prepared this Agreement. If any
provisions of this Agreement is held to be void or unenforceable, such provision will be deemed
modified so as to conform as nearly as possible to the void or unenforceable provision while still
remaining valid and enforceable, and the remaining terms of this Agreement shall not be affected.
This Agreement may be executed by facsimile, electronic or original signature of the parties and in
any number of counterparts, each of which (assuming no modification or alteration) will constitute
an original and all of which, when taken together, will constitute one and the same instrument. It is
the intent of the parties that, to the extent lawful, the laws of the State in which the Property is
located govern the validity and interpretation of this Agreement. Except as otherwise provided in
this Agreement, the rights of Seller can be assigned, in whole or in part, only upon the prior written
consent of Buyer. Buyer may assign this Agreement, in whole or in part, provided that the assignee
assumes all obligations of Buyer under this Agreement. If either party commences legal action
against the other to enforce its rights hereunder, the prevailing party in such action shall be entitled
to recover from the other, in addition to any other relief granted, its reasonable attorney's fees,
costs and expenses incidental thereto. If the terms of this Agreement provide for performance of
any act or the expiration of any time period on a Saturday, Sunday or federal holiday, the due date or
expiration date shall take place on the next date that is not a Saturday, Sunday or federal holiday.
IN WITNESS WHEREOF, this Agreement is executed effective as of the Effective Date.
SELLER: SCHERTZ 1518, LTD., a Texas limited partnership,
By: MTR- Schertz 1518 Management Co., LLC, a Texas
limited Liability Company, its general partner
Christopher K. Price, President
Date of Execution: .2017
BUYER: CITY OF SCHERTZ, TEXAS
By:
Name:
Title:
Date of Execution: 2017
EXHIBIT A
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Agenda No. 7
0111 &WOL11"LlusIaU 1 DIU [o7 710 Rod
City Council Meeting: May 23, 2017
Department: Public Works and Engineering
Subject: Resolution No. 17 -R -33— A Resolution by
the City Council of the City of Schertz,
Texas, authorizing the City Manager to enter
into an agreement with Ford Engineering,
Inc., for design, bid, and construction phase
engineering services for the FM 1103 Water
and Waste -water line relocation project in
advance of the FM 1103 road widening
project.
BACKGROUND
The Texas Department of Transportation (TxDOT) is working on a project to widen the right of
way and paving of FM 1103 in the City of Schertz. Citizens of Schertz passed a bond measure to
provide $2 million of funding toward the project. City Council authorized a Fixed Price
Agreement ($181,226) to contribute funds for the acquisition of right of way, and an Advanced
Funding Agreement ($1,818,774) for contribution of funds toward construction of the roadway
improvements.
Before the roadway improvements enter the construction phase, most utilities (including City
water and wastewater facilities) must be relocated outside the ultimate right of way. The
relocation of City facilities that are currently within the existing TxDOT right of way are not
eligible to be considered part of the TxDOT project and their relocations are therefore the
responsibility of the City.
Ford Engineering is very familiar with the location and operation of City utilities on FM 1.103
and has experience with City utility relocation projects along TxDOT roadways.
FM 1103 Water and Waste waterline Relocation Project Budget
Engineering
$
38,013.00
Construction
$
275,000.00 (estimated)
Legal
$
2,500.00
Advertising
$
1,000.00
Easement Acquisition
$
25,000.00 (estimated)
Construction Contingency
$
55,000.00
Project Total
$
396,51.3.00 (estimated)
Goal
To complete the required relocation of water and wastewater lines before the construction phase
of TxDOT's FM 1103 road widening project begins.
City Council Memorandum
Page 2
Community Benefit
The relocation of these lines will ensure the City utilities are provided in an alignment that
allows adequate space for future maintenance.
FISCAL IMPACT
Funding for the design work is available in Water & Sewer Contingencies.
Authorization of $38,01.3 is separate from the previously authorized not -to- exceed expenditures
of $162,000. The updated not to exceed amount is $200,013 for Fiscal Year 2016 -2017.
RECOMMENDATION
Staff recommends that the City Council approve Resolution 1.7 -R -33, authorizing a project
agreement with Ford Engineering, Inc., for design, bid, and construction phase engineering
services for water and wastewater relocations in advance of the FM 1.103 roadway widening
project.
ATTACHMENT
Resolution 17 -R -33
Project Agreement
RESOLUTION NO. 17 -R -33
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER
INTO AN AGREEMENT WITH FORD ENGINEERING, INC., FOR
DESIGN, BID, AND CONSTRUCTION PHASE ENGINEERING
SERVICES FOR THE FM 1103 WATER AND WASTEWATER
FACILITIES RELOCATION PROJECT, IN ADVANCE OF THE TXDOT
FM 1103 ROAD WIDENING PROJECT, AND OTHER MATTERS IN
CONNECTION THEREWITH
WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the
City enter into an agreement for design, bid, and construction phase engineering services for the
FM 1103 water and wastewater facilities relocation project in advance of the TxDOT FM 1103
road widening project; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
contract with Ford Engineering, Inc., for the design, bid, and construction phase services as
described in the Project Agreement attached hereto. (the "Agreement ").
WHEREAS, the City Council authorizes expenditures with Ford Engineering, Inc., for
the FM 1103 Utility Relocation project in addition to the previously authorized not to exceed
amount of $1.62,000 for the 201.6 -2017 Fiscal. Year (for a new total not to exceed amount of
$200,013).
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 execute and
deliver the Agreement with Ford Engineering, Inc., in substantially the form set forth on
AttnAment 1
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 23rd day of May, 2017.
CITY OF SCHERTZ, TEXAS
Michael R. Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
I1 W Iwo me id 111011 lid
PROJECT AGREEMENT
A -1
CITY OF SCHERTZ
PROJECT AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement is entered into in the City of Schertz, Texas, between the City of Schertz, a
Texas municipal corporation, hereinafter called "CITY" and /or "OWNER ", and Ford
Engineering, Inc. hereinafter called "CONSULTANT ".
Engineer(s), duly licensed, and practicing under the laws of the State of Texas, hereinafter called
"CONSULTANT ", this Agreement being executed by City pursuant to appropriate action by the
City Council of CITY and by CONSULTANT, for engineering services hereinafter set forth in
connection with the above designated Project for CITY.
ARTICLE 1
DEFINITIONS
ARTICLE 2
SCOPE OF SERVICES
ARTICLE 3
COMPENSATION FOR SERVICES
ARTICLE 4
METHOD OF PAYMENT
ARTICLE 5
TIME, SCHEDULE, AND PERIOD OF SERVICE
ARTICLE 6
COORDINATION WITH CITY
ARTICLE 7
REVISIONS TO DRAWINGS AND SPECIFICATIONS
ARTICLE 8
OWNERSHIP OF DOCUMENTS
ARTICLE 9
TERMINATION AND /OR SUPENSION OF WORK
ARTICLE 10
CONSULTANT'S WARRANTY
ARTICLE 11
ASSIGNMENT OR TRANSFER OF INTEREST
ARTICLE 12
INSURANCE REQUIREMENTS
ARTICLE 1.3
INDEMNIFICATION
ARTICLE 1.4
CLAIMS AND DISPUTES
ARTICLE 15
SEVERABILITY
ARTICLE 16
ESTIMATES OF COST
ARTICLE 17
INTEREST IN CITY CONTRACTS PROHIBITED
ARTICLE 18
CONFLICTS OF INTEREST DISCLOSURE
ARTICLE 19
STANDARD OF CARE
ARTICLE 20
RIGHT OF REVIEW AND AUDIT
ARTICLE 21
ENTIRE AGREEMENTS
ARTICLE 22
VENUE
ARTICLE 23
NOTICES
ARTICLE 24
INDEPENDENT CONTRACTOR
ARTICLE 25
CAPTIONS
ATTACHMENT 1
PROJECT SCOPE OF SERVICES
ATTACHMENT 2
PROJECT DESIGN PHASES COST
ATTACHMENT 3
BILLING RATE SCHEDULE
ATTACHMENT 4
ADDITIONAL PROJECTS AND /OR EXPANDED SCOPE
OF SERVICES
FM 1103 Utility Relocation Project Page 1
ARTICLE 1: DEFINITIONS
AS USED IN THIS AGREEMENT, THE FOLLOWING TERMS SHALL HAVE MEANINGS
AS SET OUT BELOW:
Agreement means this Master Agreement between CITY and CONSULTANT that
establishes the terms and conditions for all Projects to be carried out under this
Agreement.
Application for Compensation means the form CONSULTANT uses to make a request
to be paid for completed services.
Application for Payment means the form CONSTRUCTION CONTRACTOR uses to
make a request to be paid for completed work.
Certificate for Payment means the form CONSULTANT uses to make
recommendations on CONSTRUCTION CONTRACTOR'S Application for Payment.
CITY means the City of Schertz, Texas.
Claim means a demand or assertion by one of the parties seeking, as a matter of right,
adjustment, or interpretation of the terms of this Agreement, payment of money,
extension of time, or other relief with respect to the terms of this Agreement. The term
"claim" also includes other disputes and matters in question between the OWNER and
CONSULTANT arising out of or relating to this Agreement.
Compensation means amounts paid by CITY to CONSULTANT for completed services
under this Agreement.
CONSTRUCTION CONTRACTOR means the firm hired by CITY to construct the
Project.
Construction Contract Documents means the contract between the CITY and the firm
contracted by CITY to construct the Project and all documents therein.
CONSULTANT means the entity named on the cover page of this Agreement and its
officers, partners, employees, agents, and representatives, and all its subconsultants, if
any, and all other persons or entities for which CONSULTANT is legally responsible.
ENGINEER means CITY's City Engineer.
Final Compensation means the final amounts paid by CITY to CONSULTANT for
completed services under this Agreement.
Final Payment means the final amounts paid by CITY to CONSTRUCTION
CONTRACTOR for completed work under the construction contract.
FM 1103 Utility Relocation Project Page 2
Opinion of Probable Construction Cost means CONSULTANT'S estimate of probable
construction cost for a Project based on its experience and qualifications as a practitioner
of its profession and the current costs in the local area.
OWNER means the City of Schertz, Texas.
Payment means amount paid by CITY to CONSTRUCTION CONTRACTOR for work
performed under the Construction Contract Documents.
Plans and Specifications means the construction documents.
Project means the capital improvement /construction development undertaking of CITY
for which CONSULTANT'S services, as stated in the Scope of Services, and to be
provided pursuant to this Agreement.
Proposal means CONSULTANT'S proposal to provide services for the Project.
Schedule of Values means the fees allocated to services, reimbursable and /or various
portions of the services or Work, prepared in such form, and supported by such data to
substantiate its accuracy as OWNER may require.
Scope of Services means the services described in Article 4, Scope of Services.
Services means professional services performed by CONSULTANT.
Total Compensation means the amount paid to CONSULTANT under Article 2,
Compensation for Basic Services, of this Agreement.
Work means the labor and materials required to complete a Project by
CONSTRUCTION CONTRACTOR in accordance with the Construction Contract
Documents.
ARTICLE 2: SCOPE OF SERVICES
2.1 CONSULTANT shall not commence work until being thoroughly briefed on the scope of
the Project and being notified in writing to proceed. The scope of the Project and
CONSULTANT'S Services required shall be reduced by CONSULTANT to a written
summary of the scope meeting. That Scope of Services and associated cost, once
approved by CITY, will be included as a part of this Agreement as Attachments 1 and 2
herein. Should the scope subsequently change, either CONSULTANT or CITY may
request a review of the anticipated services, with an appropriate adjustment in
compensation.
2.2 Communications by and with CONSULTANT'S subconsultants shall be through
CONSULTANT. Communications by and with subcontractors and material suppliers shall
be through CONSTRUCTION CONTRACTOR.
FM 1103 Utility Relocation Project Page 3
2.3 CONSULTANT, in consideration for the Compensation herein provided, shall render the
professional Services described in this Section that are necessary for the development of
the Project, including plans and specifications, construction management services, any
special and general conditions, and instructions to bidders as acceptable to the Engineer,
or his or her duly authorized representative.
2.4 CONSULTANT shall complete a Project in accordance with the following phases and
CONSULTANT'S Scope of Services attached and incorporated herein as Attachments 1.
and 2.
2.4.2 60% Design Phase
2.4.3 90% Design Phase
2.4.4 Bid Phase
2.4.5 Construction Services including Closeout Phases
2.5 Upon acceptance and approval of the plans, reports or other deliverables required for a
Phase of work, as set forth in the Scope of Services, Engineer shall authorize
CONSULTANT, in writing, to proceed with the next phase of Work.
2.6 During Design Phases CONSULTANT shall:
2.6.1 Coordinate and meet with City staff and Project stakeholders as appropriate
throughout the Project. Assist staff at meetings with stakeholders, workshops,
and presentations to advisory commissions and City Council.
2.6.2 Provide the necessary field survey services to determine the existing field
conditions, including all utilities and surface features to the maximum extent
possible.
2.6.3 CONSULTANT shall make every effort to minimize utility adjustments, where
possible.
2.6.4 In the event electrical, communication, gas or other facilities are encountered,
CONSULTANT shall identify and incorporate those facilities at the completion of
each Project Phase in order to determine the magnitude of any potential
adjustment.
2.6.5 Perform the necessary testing to determine the existing site conditions and proper
design for construction and methods of any necessary demolition.
2.6.6 Follow and comply with the requirements for the Design Phases listed in this
Agreement, CITY'S Unified Development Code, if applicable, and CITY'S
Design Guidance Manual, both of which are incorporated by reference herein.
2.6.7 In case of conflicts, follow and comply with the most stringent requirements for
the Design Phases.
FM 1103 Utility Relocation Project Page 4
2.6.8 Prepare documents for, and coordinate with other utilities and associated local,
state, and federal agencies (including TCEQ, EPA, TxDOT, ACOE, etc.) as
required for the approval of all necessary permits (determined during scoping for
each individual project).
2.6.9 Provide detailed plans and specifications for the Project at appropriate progress
intervals in requested formats (may include hard copy, .pdf, and .dwg).
2.6.10 Provide Opinion of Probably Construction Cost.
2.7 During Bid Phase CONSULTANT shall:
2.7.1 Provide unit price bid quantities in City bid form format for use in bid documents.
2.7.2 Provide bid sets of contract, technical specifications, plans, and any other
necessary documents in hard copy and digital format.
2.7.3 Attend pre -bid conference and prepare responses to questions and addenda as
necessary.
2.7.4 Research qualifications and references of apparent low bidder(s) and provide a
letter of recommendation for contract award.
2.8 During Construction Phase:
2.8.1 CONSULTANT shall monitor construction schedule.
2.8.2 CONSULTANT will make a minimum of two visits per month to the Project Site
at intervals appropriate to the Phases to (1) become generally familiar with and to
keep CITY informed about the progress and quality of the portion of the Work
completed, and (2) endeavor to guard CITY against defects in Work. However,
CONSULTANT will not be required to make exhaustive or continuous on -site
inspections to check the quality or quantity of the Work.
2.8.3 CONSULTANT will neither have control over or charge of, nor be responsible
for, the construction means, methods, techniques, sequences or procedures, or for
the safety precautions and programs in connection with the Work since these are
solely CONSTRUCTION CONTRACTOR'S rights and responsibilities under the
Contract Documents. CONSULTANT'S efforts will be directed toward providing
for CITY a greater degree of confidence that the completed Work will generally
conform to the Contract Documents.
2.8.4 CONSULTANT will not be responsible for CONSTRUCTION
CONTRACTOR'S failure to perform the Work in accordance with the
requirements of the Contract Documents. CONSULTANT will not have control
over or charge of and will not be responsible for acts or omissions of
CONSTRUCTION CONTRACTOR, subcontractors, or their agents or
employees, or any other persons or entities performing portions of the Work.
FM 1103 Utility Relocation Project Page 5
2.8.5 CONSULTANT and CITY have authority to reject Work that does not conform to
the Contract Documents. Whenever CONSULTANT or CITY considers it
necessary or advisable, either CITY or CONSULTANT may require inspection or
testing of the Work whether or not such Work is fabricated, installed or
completed. However, neither this authority of CONSULTANT or CITY, nor a
decision made by either, in good faith, to require or not require an inspection shall
give rise to a duty or responsibility of CONSULTANT or CITY to
CONSTRUCTION CONTRACTOR, subcontractors, material and equipment
suppliers, agents or employees, or other persons or entities performing portions of
the Work.
2.8.6 CONSULTANT will review and approve or take other appropriate action upon
CONSTRUCTION CONTRACTOR'S submittals such as Shop Drawings,
Product Data and Samples, but only for the limited purpose of checking for
conformance with information given and the design concept expressed in the
Contract Documents. CONSULTANT will respond to submittals such as Shop
Drawings, Product Data, and Samples pursuant to the procedures set forth in the
Project specifications. Review of such submittals is not conducted for the purpose
of determining the accuracy and completeness of equipment or systems, all of
which remain the responsibility of CONSTRUCTION CONTRACTOR as
required by the Contract Documents. CONSULTANT'S review of
CONSTRUCTION CONTRACTOR'S submittals shall not relieve
CONSTRUCTION CONTRACTOR of its obligations. CONSULTANT'S review
shall not constitute approval of safety precautions or any construction means,
methods, techniques, sequences or procedures unless otherwise specifically stated
by CONSULTANT. CONSULTANT'S approval of a specific item shall not
indicate approval of an assembly of which the item is a component.
2.8.7 CONSULTANT will, within three work days after receipt of CONSTRUCTION
CONTRACTOR'S Application for Payment review the Application for Payment
and either issue to OWNER and/or the affected utility a Certificate for Payment
for such amount as CONSULTANT determines is properly due, or notify
OWNER, any affected utility, and CONSTRUCTION CONTRACTOR in writing
of CONSULTANT'S reasons for withholding recommendation of approval in
whole or in part.
2.8.8 CONSULTANT'S issuance of a Certificate for Payment will constitute a
representation by CONSULTANT to OWNER, based on CONSULTANT'S
evaluation of the Work and the data comprising the Application for Payment, that
the Work has progressed to the point indicated and that, to the best of
CONSULTANT'S knowledge, information and belief, the quality of the work is
in accordance with the design agreement documents or Construction Contract
Documents. The foregoing representations are subject to an evaluation of the
Work for conformance with the design agreement documents, to results of
subsequent tests and inspections, to correction of minor deviations from the
design agreement documents prior to completion, and to any specific
qualifications expressed by CONSULTANT. The issuance of a Certificate for
FM 1103 Utility Relocation Project Page 6
Payment based on the CONSTRUCTION CONTRACTOR'S Application for
Payment will further constitute a representation that CONSTRUCTION
CONTRACTOR is entitled to payment in accordance with the Schedule of
Values. The issuance of Certificate for Payment will not be a representation that
CONSULTANT has (1) made exhaustive or continuous on -site inspections to
check the quality or quantity of the Work, (2) reviewed construction means,
methods, techniques, sequences or procedures, (3) reviewed copies of requisitions
received from Subcontractors and material suppliers and other data requested by
OWNER to substantiate Construction Contractor's right to payment, or (4) made
any examination to ascertain how or for what purpose CONSTRUCTION
CONTRACTOR has used money previously paid on account of the Application
for Payment sum.
2.8.9 CONSULTANT may recommend withholding an approval for Payment in whole
or in part, to the extent reasonably necessary to protect OWNER if, in
CONSULTANT'S opinion, the representations to OWNER required by Section
4.13 cannot be made. If CONSULTANT is unable to recommend approval of
payment in the amount of the Application, CONSULTANT will notify OWNER
and CONSTRUCTION CONTRACTOR as provided in Section 4.12. If OWNER
and CONSULTANT cannot agree on a revised amount, CONSULTANT will
promptly issue a Certificate for Payment for the amount for which
CONSULTANT is able to make such representations to OWNER.
CONSULTANT may also recommend withholding a Payment, because of
subsequently discovered evidence, may modify the whole or a part of a Certificate
for Payment to such extent as may be necessary, in CONSULTANT'S opinion, to
protect OWNER and the affected utility from loss for which CONSTRUCTION
CONTRACTOR is responsible, including loss resulting from acts and omissions
described below:
2.8.9.1 defective Work not remedied;
2.8.9.2 third party claims filed or reasonable evidence indicating probable
filing of such claims for which CONSTRUCTION CONTRACTOR is
responsible hereunder unless security acceptable to OWNER and the
affected utility is provided by CONSTRUCTION CONTRACTOR;
2.8.9.3 failure of CONSTRUCTION CONTRACTOR to make payments
properly to the subcontractors and /or material providers;
2.8.9.4 reasonable evidence that the Work cannot be completed for the unpaid
balance of the agreement sum and CONSTRUCTION CONTRACTOR
has failed to provide OWNER and the affected utility adequate
assurance of its continued performance within a reasonable time after
demand;
2.8.9.5 damage to OWNER or another contractor;
FM 1103 Utility Relocation Project Page 7
2.8.9.6 reasonable evidence that the Work will not be completed within the
agreement time, and that the unpaid balance would not be adequate to
cover actual or liquidated damages for the anticipated delay, or
2.8.9.7 persistent failure by CONSTRUCTION CONTRACTOR to carry out
the Work in accordance with the Construction Contract Documents.
2.8.10 When the above reasons for withholding payment are removed, payment will be
made for amounts previously withheld. OWNER shall not be deemed in default
by CONSULTANT by reason of withholding payment as provided herein.
2.8.1.1 CONSULTANT will prepare Change Orders and Field Work Directives, and,
with concurrence of OWNER, OWNER'S designated representative will have
authority to order minor changes in the Work not involving an adjustment in the
Total Compensation or an extension of the time for construction. Such changes
shall be effected by written order, which CONSTRUCTION CONTRACTOR
shall carry out promptly and record on the as -built plan.
2.8.12 Upon written request of CITY or CONSTRUCTION CONTRACTOR,
CONSULTANT will issue its interpretation of the requirements of the Plans and
Specifications. CONSULTANT'S response to such requests will be made in
writing within any agreed time limits or otherwise with reasonable promptness. If
no agreement is made concerning the time within which interpretations required
by CONSULTANT shall be furnished in compliance with Article IV, then delay
shall not be recognized on account of failure by CONSULTANT to furnish such
interpretations until 15 days after written request is made for CONSULTANT'S
interpretation.
2.8.13 Interpretations of CONSULTANT will be consistent with the intent of and
reasonably inferable from the Construction Contract Documents and will be in
writing or in the form of drawings.
2.8.14 CONSULTANT will advise and consult with CITY. CITY'S instructions to
CONSTRUCTION CONTRACTOR may be issued through CONSULTANT, but
CITY reserves the right to issue instructions directly to CONSTRUCTION
CONTRACTOR through inspectors or other designated CITY representatives.
2.8.15 CONSULTANT and CITY will conduct observations to determine the date of
substantial completion of the Work. CONSULTANT shall provide to CITY a
written recommendation of consideration of substantial completion of the Project.
2.8.16 CONSULTANT and CITY will conduct observations to determine the date of
final completion. CONSULTANT will receive and forward to CITY, for CITY'S
review and records, written warranties and related documents required by the
Construction Contract Documents and assembled by CONSTRUCTION
CONTRACTOR, and will issue a final Approval for Payment upon compliance
with the requirements of the Construction Contract Documents. Such final
Approval will be accompanied by a signed and sealed statement from the
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CONSULTANT'S Engineer of Record that certifies to CITY that the project was
constructed in accordance with the approved plans and specifications.
2.8.17 CONSULTANT shall prepare record drawings from information submitted by
CONSTRUCTION CONTRACTOR and from CONSULTANT'S own
observations in accordance with City standards. CONSULTANT shall provide
record drawings in hard copy, .pdf, and .dwg formats to CITY.
ARTICLE 3: COMPENSATION FOR SERVICES
3.1 Basic Services
3.1.1 Compensation for all Services included in this Agreement will be on a time and
expense not -to- exceed basis in accordance with the negotiated, approved schedule
of billing rates as set forth in Attachment 3. Not -to- exceed compensation
amounts, to the extent they have been negotiated shall be reflected in Attachment
3. A Proposal including a not -to- exceed cost will be provided by
CONSULTANT along with a Scope of Services for each Project (Attachments 1
and 2). The amount to be paid to CONSULTANT, including authorized
adjustments, is the total amount payable by OWNER to CONSULTANT for
performance of the Services for the Project under this Agreement. It is agreed
and understood that such amount will constitute full compensation to
CONSULTANT for Services included in the Scope of Services and shall meet all
requirements of CITY'S design guidelines applicable to the Project. Unless and
until CITY makes further appropriations for any Services not included in the
Scope of Services of this Agreement, the obligation of CITY to CONSULTANT
for Compensation in connection with this Agreement cannot and will not exceed
the sum described in this Section without further amendment to this Agreement.
3.1.2 No billing rate changes from those approved as Attachment 3 of this Agreement
shall be made during the term of this Agreement without the prior written
approval of CITY.
3.1.3 CONSULTANT shall submit monthly invoices to CITY describing the Services
performed the preceding month. CONSULTANT'S invoices shall include the
name of the person who performed the Service, a brief description of the Service
performed and the Phase of the Project to which the Service relates, the date(s)
the Service was performed, the number of hours spent on all Services billed on an
hourly basis, and a description of any subconsultant fees and/or reimbursable
expenditures.
3.1.4 CITY shall reimburse CONSULTANT only for those costs or expenses
specifically approved in this Agreement, or specifically approved in advance by
CITY. Unless otherwise approved, such costs shall be limited and include
nothing more than the following costs incurred by CONSULTANT:
3.1.4.1 Approved reproduction charges,
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3.1.4.2 Actual costs of subconsultant(s) for performance of any of the Services
that CONSULTANT agrees to provide pursuant to this Agreement,
which have been approved in advance by CITY and awarded in
accordance with this Agreement.
3.1.4.3 Actual costs and/or other costs and/or payments specifically authorized
in advance by the CITY in writing and incurred by CONSULTANT in
the performance of this Agreement.
3.1.5 CONSULTANT shall complete the Project in accordance with the following
phases. For the purpose of establishing portions of compensation for separate
phases, more particularly described in the Scope of Services, Attachment 2 shall
apply.
30% Design Phase
60% Design Phase
90% Design Phase
Bid Phase
Construction Phase Services including Close Out
3.1.6 CONSULTANT shall, within 10 days following receipt of Compensation from
OWNER, pay all bills for Services performed and furnished hereunder by
subconsultant(s) of CONSULTANT in connection with the Project and the
performance of services and shall, if requested, provide OWNER with evidence
of such payment. CONSULTANT'S failure to make payments within such time
shall constitute a material breach of this Agreement unless CONSULTANT is
able to demonstrate to OWNER bona fide disputes associated with the Services of
the unpaid subconsultant and its services. CONSULTANT shall include a
provision in each of its sub agreements imposing the same payment obligations on
its subconsultants as are applicable to CONSULTANT hereunder, and if OWNER
so requests, shall provide evidence of such payments by CONSULTANT to
OWNER. If CONSULTANT has failed to make payment promptly to the
subconsultant for undisputed Services for which OWNER has made payment to
CONSULTANT, OWNER shall be entitled to withhold future payment to
CONSULTANT to the extent remaining unpaid by CONSULTANT necessary to
protect OWNER.
3.1.7 CONSULTANT warrants that title to all deliverables produced in the
performance of Services covered by an Application for Compensation will pass to
OWNER no later than the time of payment. CONSULTANT further warrants that
upon submittal of an Application for Compensation, all Services for which
Applications for Compensation have been previously issued and payments
received from OWNER shall, to the best of CONSULTANT'S knowledge,
information and belief be free and clear of liens, claims, security interests or
encumbrance in favor of CONSULTANT, or other persons or entities under
contract with CONSULTANT making a claim by reason of having provided labor
or services relating to CONSULTANT'S Services. CONSULTANT SHALL
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INDEMNIFY AND HOLD OWNER HARMLESS FROM ANY LIENS,
CLAIMS, SECURITY INTEREST OR ENCUMBRANCES FILED BY
ANYONE CLAIMING BY, THROUGH OR UNDER THE ITEMS COVERED
BY PAYMENTS MADE BY OWNER TO CONSULTANT.
3.2 Additional. Services
3.2.1 CONSULTANT shall not receive any compensation for additional Services
without prior written authorization of CITY. Compensation for duly authorized
additional Services shall be paid in accordance with the approved schedule of
billing rates as set forth in Attachment 3.
3.2.2 Examples of additional Services (not all inclusive)
3.2.2.1 Assistance to CITY as an expert witness in any litigation with third
parties arising from the development of construction of a Project
including the preparation of engineering data and reports.
3.2.2.2 Preparation of plats and field notes for acquisition of property.
3.2.2.3 Preparation of applications and supporting documents for governmental
grants, loans, or advances in connection with a Project; preparation of
review of environmental assessment and impact statements; review and
evaluation of the effect on the design requirements of a Project of any
such statements and documents prepared by others; and assistance in
obtaining approval of authorities having jurisdiction over the
anticipated environmental impact of a Project.
3.2.2.4 Making revisions in drawings, specifications, or other documents when
such revisions are inconsistent with written approvals or instructions
previously given, are required by the enactment or revision of codes,
laws, or regulations subsequent to the preparation of such documents or
are due to other causes not solely within the control of
CONSULTANT.
3.2.2.5 Making revisions to drawings or specifications occasioned by
acceptance of substitutions proposed by CONSTRUCTION
CONTRACTOR; and Services after the award of each contract in
evaluating and determining the acceptability of an unreasonable or
excessive number of substitutions proposed by CONSTRUCTION
CONTRACTOR.
3.2.2.6 Preparing drawings, specifications, and supporting data and providing
other Services in connection with change order requests to the extent
that the adjustment in the basic compensation resulting from the
adjusted construction cost is not commensurate with the Services
required of CONSULTANT, provided such change order requests are
required by causes not solely within the control of CONSULTANT; or
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in connection with change orders requiring significant engineering
effort to compute and document the Work effort reflected by the
Change Order.
3.2.2.7 Investigations, surveys, valuations, inventories, or detailed appraisals of
facilities, construction and/or services not required by Project scope.
3.2.2.8 Investigations, surveys, audit, or inventories required in connection
with construction performed by CITY.
3.2.2.9 Additional Services during construction made necessary by:
3.2.2.9.1 Work damaged by fire or other cause during construction.
3.2.2.9.2 A significant amount of defective or neglected work of
CONSTRUCTION CONTRACTOR.
3.2.2.9.3 Failure of performance of CONSTRUCTION
CONTRACTOR.
3.2.2.9.4 Acceleration of the progress schedule required by CITY
involving Services beyond normal working hours.
3.2.2.9.5 Default by CONSTRUCTION CONTRACTOR.
3.2.2.10 Providing extensive assistance in the use of any equipment or system
such as initial start -up or testing, adjusting and balancing, preparation
of operation and maintenance manuals, training personnel for operation
and maintenance, and consultation during operation.
3.2.2.11 Providing Services relative to future facilities, systems, and equipment
which are not intended to be constructed during the Construction Phase.
3.2.2.1.2 Services after completion of the Construction Phase, such as
inspections during any guarantee period and reporting observed
deficiencies under guarantee called for in any contract for a Project.
3.2.2.13 Providing Services of geotechnical engineering firm to perform test
borings and other soil or foundation investigations and related analysis
not included in original Scope of Services for a Project.
3.2.2.14 Additional copies of Construction Contract Documents, review
documents, bidding documents, reports, and or drawings over the
number specified in the original Scope of Services for a Project.
3.2.2.15 Preparation of all documents dealing with 404 permits and railroad
agreements.
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3.2.2.16 Providing photographs, renderings, or models for CITY use.
3.2.2.17 Providing aerial mapping Services.
3.2.2.1.8 Providing consulting engineering Services not related to a particular
design or construction Project.
3.3 All Applications for Compensation shall be submitted through Engineer's office.
ARTICLE 4: METHOD OF PAYMENT
4.1 Compensation may be made to CONSULTANT as appropriately indicated on monthly
Applications for Compensation prepared based on hourly rates, not to exceed amounts
estimated for each phase, as described in Article 2 and Attachments 1 and 2 hereof.
4.2 Project Close Out and Final Payment —
4.2.1 CONSULTANT shall not be entitled to final payment unless and until it submits
to OWNER its affidavit that the invoices for services, and other liabilities
connected with the services for which OWNER, or OWNER'S property, might be
responsible have been fully paid or otherwise satisfied or will be paid from final
payment; releases and waivers of liens from all CONSULTANT'S subconsultants
and of any and all other parties required by OWNER that are either unconditional
or conditional on receipt of final payment; certificates of insurance showing
continuation of required insurance coverage; such other documents as OWNER
may request; and consent of surety to final payment.
4.2.2 Final Compensation — The final compensation to be made by CITY to
CONSULTANT will be payable upon submission of the "Record Drawings ".
CONSULTANT agrees to submit "Record Drawings: in print media, electronic
format (.pdf and .dwg formats) and final billing within 45 days of final acceptance
of construction. Additionally, CONSULTANT agrees to submit a statement of
release with the final billing notifying CITY that there is no further compensation .
owed to CONSULTANT by CITY beyond the final bill. Final billing shall
indicate "Final Bill — no additional compensation is due to CONSULTANT ".
4.3 OWNER may withhold compensation to such extent as may be necessary, in OWNER'S
opinion, to protect OWNER from damage or loss for which CONSULTANT is
responsible, because of,
4.3.1 delays in the performance of CONSULTANT'S services;
4.3.2 third party claims filed or reasonable evidence indicating probable filing of such
claims unless security acceptable to OWNER is provided by CONSULTANT;
4.3.3 failure of CONSULTANT to make payments properly to subconsultants or
vendors for labor, materials or equipment;
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4.3.4 reasonable evidence that CONSULTANT'S work cannot be completed for the
amount unpaid under this Agreement;
4.3.5 damage to OWNER or CONSTRUCTION CONTRACTOR; or
4.3.6 persistent failure by CONSULTANT to carry out the performance of its Services
in accordance with this Agreement.
4.4 When the above reasons for withholding are removed or remedied by CONSULTANT,
compensation of the amount withheld will be made within a reasonable time. OWNER
shall not be deemed in default by reason of withholding compensation as provided for in
this Article.
4.5 In the event of any dispute(s) between the parties regarding the amount properly payable
for any Phase or as final Compensation, or regarding any amount that may be withheld by
OWNER, CONSULTANT shall be required to make a claim pursuant to and in
accordance with the terms of this Agreement and follow the procedures provided herein
for the resolution of such dispute. In the event CONSULTANT does not initiate and
follow the claims procedures provided in this Agreement in a timely manner and as
required by the terms thereof, any such claim shall be waived.
4.6 OWNER shall make final compensation for all sums due CONSULTANT not more than
30 days after CONSULTANT'S final Application for Compensation.
4.7 Acceptance of final compensation by CONSULTANT shall constitute a waiver of claims
except those previously made in writing and identified by CONSULTANT as unsettled at
the time of final Application for Compensation.
4.8 CONSULTANT agrees to maintain adequate books, payrolls and records satisfactory to
OWNER and all applicable utility providers in connection with any and all Services
performed hereunder. CONSULTANT agrees to retain all such books, payrolls and
records (including data stored in computer) for a period of not less than four years after
completion of Work. At all reasonable times, OWNER and all applicable utility providers
and their duly authorized representatives shall have access to all personnel of
CONSULTANT and all such books, payrolls and records, and shall have the right to audit
same.
ARTICLE 5: TIME, SCHEDULE, AND PERIOD OF SERVICE
51 Prior to commencement, CONSULTANT shall provide CITY with a schedule of Project
Design Phases, Attachment 2.
5.2 Time is of the essence of this Agreement. CONSULTANT shall perform and complete its
obligations for the various Phases of a Project under Section 4, Scope of Services, of this
Agreement in a prompt and continuous manner so as to not delay the development of the
design Services and so as to not delay the construction of the work for the Project in
accordance with the schedules approved by CITY with CONSTRUCTION
CONTRACTOR. Upon review of phase Services, if corrections, modifications,
FM 1103 Utility Relocation Project Page 14
alterations, or additions are required of CONSULTANT, these items shall be completed
by CONSULTANT before that Phase is approved.
5.3 CONSULTANT shall not proceed with the next appropriate Phase of Services without
written authorization from the Engineer. CITY may elect to discontinue
CONSULTANT'S Services at the end of any Phase for any reason. Notwithstanding any
other provisions of this Agreement, if circumstance dictates, the Engineer may make
adjustments to the scope of CONSULTANT'S obligations at any time to achieve the
required design.
5.4 CONSULTANT shall not be liable or responsible for any delays due to strikes, riots, acts
of God, national emergency, acts of the public enemy, governmental restrictions, laws or
regulations, or any other causes beyond CONSULTANT'S reasonable control. Within 21
days from the occurrence of any event for which time for performance by
CONSULTANT will be significantly extended under this provision, CONSULTANT
shall give written notice thereof to CITY stating the reason for such extension and the
actual or estimated time thereof If CITY determines that CONSULTANT is responsible
for the need for extended time, CITY shall have the right to make a Claim as provided in
this Agreement.
5.5 Term of Agreement shall be as follows:
5.5.1 This Agreement shall become effective upon the date below and shall remain in
effect until satisfactory completion of the Project unless terminated as provided
for in this Agreement.
ARTICLE 6: COORDINATION WITH CITY
6.1 CONSULTANT shall hold periodic conferences with the Engineer or his or her
representatives to the end that the Project as developed shall have the full benefit of
CITY'S experience and knowledge of existing needs and facilities, and be consistent with
its current policies and standards. To assist CONSULTANT in this coordination, CITY
shall make available for CONSULTANT'S use in planning and designing the Project all
existing plans, maps, statistics, computations and other data in its possession relative to
existing facilities and to this particular Project, at no cost to CONSULTANT. However,
any and all such information shall remain the property of CITY and shall be returned by
CONSULTANT upon termination or completion of the Project or if instructed to do so by
the Engineer.
6.2 The Engineer will act on behalf of CITY with respect to the Services to be performed
under this Agreement. The Engineer shall have complete authority to transmit
instructions, receive information, interpret and define CITY'S policies and decisions with
respect to materials, equipment, elements and systems pertinent to CONSULTANT'S
services.
6.3 CITY will give prompt written notice to CONSULTANT whenever CITY observes or
otherwise become aware of any defect in CONSULTANT'S Services, in the work of
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CONSTRUCTION CONTRACTOR, or any development that affects the scope or timing
of CONSULTANT'S Services.
6.4 All appraisals, notices, and permits shall be furnished by CONSULTANT under the Scope
of Services unless otherwise assigned to CITY in the Scope of Services, Approvals and
permits assigned to CITY shall be obtained from all governmental authorities having
jurisdiction over the Project and such approvals and consents from others as may be
necessary for the completion of the Project. CONSULTANT will provide CITY
reasonable assistance in connection with such approvals and permits such as the
furnishing of data compiled by CONSULTANT pursuant to other provisions of this
Agreement, but CONSULTANT shall not be obligated to develop additional data, prepare
extensive reports or appear at hearings or the like unless compensated therefore under
other provisions of this Agreement.
ARTICLE 7: REVISIONS TO DRAWINGS AND SPECIFICATIONS
7.1 CONSULTANT shall make without expense to CITY such revisions to the drawings,
reports or other documents as may be required to meet the needs of CITY which are
within the Scope of Services, but after the approval of drawings, reports or other
documents and specifications by CITY, any revisions, additions, or other modifications
made at CITY'S request which involve extra services and expenses to CONSULTANT
shall be at additional compensation to CONSULTANT for such additional Services and
expenses in accordance with Article 3 herein.
ARTICLE 8: OWNERSHIP OF DOCUMENTS
8.1 All previously owned documents, including the original drawings, estimates,
specifications, and all other documents and data by CONSULTANT, will remain the
property of CONSULTANT as instruments of service. However, CONSULTANT
understands and agrees that CITY shall have free access to all such information with the
right to make and retain copies of previously owned drawings, estimates, specifications
and all other documents and data. Any reuse without specific written verification or
adaptation by CONSULTANT will be at CITY'S sole risk and without liability or legal
exposure to CONSULTANT.
8.2 All completed documents submitted by CONSULTANT for final approval or issuance of
a permit shall bear the seal with signature and date adjacent thereto of a registered
professional engineer licensed to practice in the State of Texas.
8.3 CONSULTANT acknowledges and agrees that upon payment, CITY shall own
exclusively any and all information in whatsoever form and character produced and /or
maintained in accordance with, pursuant to, or as a result of this Agreement and shall be
used as CITY desires and documents, including the original drawings, estimates,
specifications and all other documents and data shall be delivered to CITY at no
additional cost to CITY upon request or termination or completion of this Agreement
without restriction on future use. However, any reuse without specific written verification
FM 1103 Utility Relocation Project Page 16
or adaptation by CONSULTANT will be at CITY'S sole risk and without liability to
CONSULTANT.
8.4 CONSULTANT agrees and covenants to protect any and all proprietary rights of CITY in
any materials provided to CONSULTANT. Such protection of proprietary rights by
CONSULTANT shall include, but not be limited to, the inclusion in any copy intended for
publication of copyright mark reserving all rights to CITY. Additionally, any materials
provided to CONSULTANT by CITY shall not be released to any third parry without the
written consent of CITY and shall be returned intact to CITY upon termination or
completion of this Agreement or if instructed to do so by the Engineer.
8.5 CONSULTANT HEREBY ASSIGNS ALL STATUTORY AND COMMON LAW
COPYRIGHTS TO ANY COPYRIGHTABLE WORK THAT IN PART OR IN
WHOLE WAS PRODUCED FROM THIS AGREEMENT TO CITY, INCLUDING
ALL EQUITABLE RIGHTS. NO REPORTS, MAPS, DOCUMENTS OR OTHER
COPYRIGHTABLE WORKS PRODUCED IN WHOLE OR IN PART BY THIS
AGREEMENT SHALL BE SUBJECT OF AN APPLICATION FOR COPYRIGHT
BY CONSULTANT. ALL REPORTS, MAPS, PROJECT LOGOS, DRAWINGS OR
OTHER COPYRIGHTABLE WORK PRODUCED UNDER THIS AGREEMENT
SHALL BECOME THE PROPERTY OF CITY (EXCLUDING ANY PRIOR
OWNED INSTRUMENT OF SERVICES, UNLESS OTHERWISE SPECIFIED
HEREIN). CONSULTANT SHALL, AT ITS EXPENSE, INDEMNIFY CITY AND
DEFEND ALL SUITS OR PROCEEDINGS INSTITUTED AGAINST CITY AND
PAY ANY AWARD OF DAMAGES OR LOSS RESULTING FROM AN
INJUNCTION, AGAINST CITY, INSOFAR AS THE SAME ARE BASED ON ANY
CLAIM THAT MATERIALS OR WORK PROVIDED UNDER THIS
AGREEMENT CONSTITUTE AN INFRINGEMENT OF ANY PATENT, TRADE
SECRET, TRADEMARK, COPYRIGHT OR OTHER INTELLECTUAL
PROPERTY RIGHTS.
8.6 CONSULTANT may make copies of any and all documents and items for its files.
CONSULTANT shall have no liability for changes made to or use of the drawings,
specifications and other documents by other engineers, or other persons, subsequent to the
completion of the Project. CONSULTANT shall appropriately mark all changes or
modifications on all drawings, specifications and other documents by other engineers or
other persons, including electronic copies, subsequent to the completion of the Project.
8.7 Copies of documents that may be relied upon by CITY are limited to the printed copies
(also known as hard copies) and .pdf- format electronic versions that are sealed and signed
by CONSULTANT. Files in editable electronic media format of text, data, graphics, or
other types (such as .dwg) that are furnished by CONSULTANT to CITY are only for
convenience of CITY or any utility. Any conclusion or information obtained or derived
from such electronic files will be at the user's sole risk. Any reuse without specific written
verification or adaptation by CONSULTANT will be at CITY'S sole risk and without
liability to CONSULTANT.
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8.8 Notwithstanding anything to the contrary contained herein, all previously owned
intellectual property of CONSULTANT, unless expressly purchased by CITY, including
but not limited to any computer software (object code and source code), tools, systems,
equipment or other information used by CONSULTANT or its suppliers in the course of
delivering the Services hereunder, and any know -how, methodologies, or processes used
by CONSULTANT to provide the services or protect deliverables to CITY, including
without limitation, all copyrights, trademarks, patents, trade secrets, and any other
proprietary rights inherent therein and appurtenant thereto shall remain the sole and
exclusive property of CONSULTANT or its suppliers.
9.1 Right of Either Party to Terminate for Default
9.1.1 This Agreement may be terminated by either party for substantial failure by the
other party to perform (through no fault of the terminating party) in accordance
with the terms of this Agreement and a failure to cure as provided in this Article
9.
9.1.2 The party not in default must issue a signed, written notice of termination (citing
this paragraph) to the other party declaring the other party to be in default and
stating the reason(s) why they are in default. Upon receipt of such written notice
of default, the party in receipt shall have a period of ten days to cure any failure to
perform under this Agreement. Upon the completion of such 10 -day period
commencing upon receipt of notice of termination, if such party has not cured any
failure to perform, such termination shall become effective without further written
notice.
9.2 Right of CITY to Terminate
9.2.1 CITY reserves the right to terminate this Agreement for reasons other than
substantial failure by CONSULTANT to perform by issuing a signed, written
notice of termination (citing this paragraph) which shall take effect on the
twentieth day following receipt of said notice or upon the scheduled completion
date of the performance Phase in which CONSULTANT is then currently
working, whichever effective termination date occurs first.
9.3 Right of CITY to Suspend Giving Rise to Right of CONSULTANT to Terminate
9.3.1 CITY reserves the right to suspend this Agreement at the end of any Phase for the
convenience of CITY by issuing a signed, written notice of suspension (citing this
paragraph) which shall outline the reasons for the suspension and the expected
duration of the suspension, but such expected duration shall in no way guarantee
what the total number of days of suspension will occur. Such suspension shall
take effect immediately upon receipt of said notice of suspension by
CONSULTANT.
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9.3.1.1 CONSULTANT is hereby given the right to terminate this Agreement
in the event such suspension extends for a period in excess of 120 days.
CONSULTANT may exercise this right to terminate by issuing a
signed, written notice of termination (citing this paragraph) to CITY
after the expiration of 1.20 days from the effective date of the
suspension. Termination (under this paragraph) shall become effective
immediately upon receipt of said written notice by CITY.
9.4 Procedures CONSULTANT Shall Follow upon Receipt of Notice of Termination
9.4.1 Upon receipt of a notice of termination and prior to the effective date of
termination, unless the notice otherwise directs or CONSULTANT immediately
takes action to cure a failure to perform under the cure period set out in this
Article. CONSULTANT shall immediately begin the phase -out and the
discontinuance of all services in connection with the performance of this
Agreement and shall proceed to promptly cancel all existing orders and contracts
insofar as such orders and contracts are chargeable to this Agreement. Within 30
days after receipt of such notice of termination (unless CONSULTANT has
successfully cured a failure to perform) CONSULTANT shall submit a statement
showing in detail the Services performed under this Agreement prior to the
effective date of termination. CITY shall have the option to grant an extension to
the time period for submittal of such statement.
9.4.2 Copies of all completed or partially completed specifications and all
reproductions of all completed or partially completed designs, plans and
attachments prepared under this Agreement prior to the effective date of
termination shall be delivered to CITY, in the form requested by CITY as a
precondition to final payment. These documents shall be subject to the restrictions
and conditions set forth in Article IX above.
9.4.3 Upon the above conditions being met, CITY shall promptly pay CONSULTANT
that proportion of the prescribed Compensation which the Services actually
performed under this Agreement bear to the total Services called for under this
Agreement, less previous payments of the Compensation.
9.4.4 CITY, as a public entity, has a duty to document the expenditure of public funds.
CONSULTANT acknowledges this duty on the part of CITY. To this end,
CONSULTANT understands that failure of CONSULTANT to comply with the
submittal of the statement and documents as required above shall constitute a
waiver by CONSULTANT of any and all rights or claims for compensation for
services performed under this Agreement by CONSULTANT.
9.4.5 Failure of CONSULTANT to comply with the submittal of the statement and
documents as required above shall constitute a waiver by CONSULTANT of any
and all rights or claims to collect monies that CONSULTANT may otherwise be
entitled to for services performed under this Agreement.
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9.5 Procedures CONSULTANT Shall Follow upon Receipt of Notice of Suspension
9.5.1 Upon receipt of written notice of suspension, which date shall also be the
effective date of the suspension, CONSULTANT shall, unless the notice
otherwise directs, immediately begin to phase -out and discontinue all services in
connection with the performance of this Agreement and shall proceed to promptly
suspend all existing orders and contracts insofar as such orders and contracts are
chargeable to this Agreement.
9.5.2 CONSULTANT shall prepare a statement showing in detail the Services
performed under this Agreement prior to the effective date of suspension.
9.5.3 Copies of all completed or partially completed designs, plans, and specifications
prepared under this Agreement prior to the effective date of suspension shall be
prepared for possible delivery to CITY but shall be retained by CONSULTANT
until such time as CONSULTANT may exercise the right to terminate.
9.5.4 In the event that CONSULTANT exercises the right to terminate 120 days after
the effective suspension date, within 30 days after receipt by CITY of
CONSULTANT'S notice of termination, CONSULTANT shall promptly cancel
all existing orders and contracts insofar as such orders and contracts are
chargeable to this Agreement and shall submit the above referenced statement
showing in detail the services performed under this Agreement prior to the
effective date of suspension.
9.5.5 Any documents prepared in association with this Agreement shall be delivered to
CITY as a precondition to final payment.
9.5.6 Upon the above conditions being met, CITY shall pay CONSULTANT that
proportion of the prescribed Compensation which the Services actually performed
under this Agreement bear to the total Services called for under this Agreement,
less previous payments of Compensation.
9.5.7 CITY, as a public entity, has a duty to document the expenditure of public funds.
CONSULTANT acknowledges this duty on the part of CITY. To this end,
CONSULTANT understands that failure of Consultant to substantially comply
with the submittal of the statements and documents as required herein shall
constitute a waiver by CONSULTANT of any portion of the Compensation for
which CONSULTANT did not supply such necessary statements and /or
documents.
ARTICLE 10: CONSULTANT'S WARRANTY
101 CONSULTANT warrants that it has not employed or retained any company or person
other than a bona fide employee working solely for CONSULTANT to solicit or secure
this Agreement, and that it has not, for the purpose of soliciting or securing this
Agreement, paid or agreed to pay any company or person, commission, percentage,
brokerage fee, gift, or any other consideration, contingent upon or resulting from the
FM 1103 Utility Relocation Project Page 20
award or making of this Agreement. For breach of this warranty, CITY shall have the
right to terminate this Agreement under the provisions of Article 9 above.
ARTICLE 11: ASSSIGNMENT OR TRANSFER OF INTEREST
11.1 CONSULTANT shall not assign or transfer its interest in this Agreement without the prior
written consent of CITY.
1.2.1 Prior to the commencement of any Services under this Agreement, CONSULTANT shall .
furnish copies of all required endorsements and an original completed Certificate(s) of
Insurance to CITY'S Engineering Department, which shall be clearly identified with the
name of the Project in the Description of Operations block of the Certificate. The original
Certificate(s) shall be completed by an agent and signed by a person authorized by that
insurer to bind coverage on its behalf. CITY will not accept Memorandum of Insurance or
Binders as proof of insurance. The original certificate(s) or form must have the agent's
original signature, including the signer's company affiliation, title and phone number, and
be mailed, with copies of all applicable endorsements, directly from the insurer's
authorized representative to CITY. CITY shall have no duty to pay or perform under this
Agreement until such certificate and endorsements have been received and approved by
CITY'S Engineering Department. No officer or employee other than CITY'S Risk
Manager shall have authority to waive this requirement.
12.2 CITY reserves the right to review the insurance requirements of this Article during the
effective period of this contract and any extension or renewal hereof and to request
modification of insurance coverage's and their limits when deemed necessary and prudent
by CITY'S Risk Manager based upon changes in statutory law, court decisions, or
circumstances surrounding this contract. In no instance will CITY allow modification
whereupon CITY may incur increased risk.
12.3 CONSULTANT'S financial integrity is of interest to CITY. Therefore, subject to
CONSULTANT'S right to maintain reasonable deductibles in such amounts as are
approved by CITY, CONSULTANT shall obtain and maintain in full force and effect for
the duration of this Agreement, and any extension hereof, at CONSULTANT'S sole
expense, insurance coverage written on an occurrence or claims made basis, as
appropriate, by companies authorized and approved to do business in the State of Texas
and with an A.M. Best's rating of no less than A- (VII), in the following types and for an
amount not less than the amount listed:
FM 1103 Utility Relocation Project Page 21
Worker's Compensation*
Employer's Liability
Commercial General (Public) Liability
insurance to include coverage for the
following:
a. Premises Operations
b. Independent Contractors **
c. Products /Completed Operations
d. Personal Injury
e. Contractual Liability
Statutory
$1,000,000 /$1,000,000 /$1,000,000
For Bodily Injury and Property Damage of
$1,000,000 per occurrence.
$2,000,000 General Aggregate, or its equivalent
in Umbrella or Excess Liability Coverage
Business Automobile Liability Combined Single Limit for Bodily Injury and
a. Owned/Leased Vehicles property Damage of $1,000,000 per occurrence
b. Non -owned Vehicles
c. Hired Vehicles
Professional Liability (Claims Made Form) $1,000,000 per claim to pay on behalf of the
insured all sums, which the insured shall
become legally obligated to pay as damages to
the extent caused by any negligent act, error, or
omission in the performance of professional
services.
*Alternate Plans must be approved by CITY'S Risk Manager
* *If applicable
12.4 CITY may request and without expense to CITY, to inspect copies of the policies,
declarations page and all endorsements thereto as they apply to the limits required by
CITY, and may request the deletion, revision, or modification of particular policy terms,
conditions, limitations or exclusions (except where policy provisions are established by
law or regulation binding upon either of the parties hereto or the underwriter of any such
policies). CONSULTANT shall attempt to comply with any such requests, subject to the
policy terms and conditions, and shall submit a copy of the replacement certificate of
insurance to CITY at the address provided below within 10 days of the requested change,
in the event the respective insurance companies approve the requested change(s).
CONSULTANT shall pay any costs incurred resulting from said changes.
City of Schertz
Attn: City Engineer
10 Commercial Place
Schertz, TX 78154
FM 1103 Utility Relocation Project Page 22
1.2.5 CONSULTANT agrees that with respect to the above required insurance, all insurance
policies are to contain or be endorsed to contain the following required provisions:
1.2.5.1 Name CITY and its officers, officials, employees, and elected representatives as
additional insured's by endorsement, as respects operations and activities of, or on
behalf of, the named insured performed under contract with CITY, with the
exception of the workers' compensation and professional liability policies;
1.2.5.2 Provide for an endorsement that the "other insurance" clause shall not apply to the
CITY where CITY is an additional insured shown on the policy if such
endorsement is permitted by law and regulations;
12.5.3 Workers' compensation and employers' liability policies will provide a waiver of
subrogation in favor of CITY; and
12.5.4 Provide 30 calendar days advance written notice directly to CITY of any
suspension, cancellation or non - renewal or material change in coverage, and not
less than 10 calendar days advance written notice for nonpayment of premium.
12.6 Within five calendar days after a suspension, cancellation or non - renewal of coverage,
CONSULTANT shall provide a replacement Certificate of Insurance and applicable
endorsements to CITY. CITY shall have the option to suspend CONSULTANT'S
performance should there be a lapse in coverage at any time during this Agreement.
Failure to provide and to maintain the required insurance shall constitute a material breach
of this Agreement.
1.2.7 If CONSULTANT fails to maintain the aforementioned insurance, or fails to secure and
maintain the aforementioned endorsements, CITY may obtain such insurance, and deduct
and retain the amount of the premiums for such insurance from any sums due under the
agreement; however, procuring of said insurance by CITY is an alternative to other
remedies CITY may have and is not the exclusive remedy for failure of CONSULTANT
to maintain said insurance or secure such endorsement. In addition to any other remedies
CITY may have upon CONSULTANT'S failure to provide and maintain any insurance or
policy endorsements to the extent and within the time herein required, CITY shall have
the right to order CONSULTANT to stop performing services hereunder and /or withhold
any payment(s) which become due to CONSULTANT hereunder until CONSULTANT
demonstrates compliance with the requirements hereof.
12.8 Nothing herein contained shall be construed as limiting in any way the extent to which
CONSULTANT may be held responsible for payments of damages to persons or property
resulting from CONSULTANT'S or its subconsultant's performance of the Services
covered under this Agreement.
12.9 It is agreed that CONSULTANT'S insurance shall be deemed primary with respect to any
insurance or self insurance carried by CITY for liability arising out of operations under
this Agreement.
FM 1103 Utility Relocation Project Page 23
1.2.10 It is understood and agreed that the insurance required is in addition to and separate from
any other obligation contained in this Agreement as respects additional insured's.
ARTICLE 13: INDEMNIFICATION
13.1 CONSULTANT, WHOSE WORK PRODUCT AND SERVICES ARE THE
SUBJECT OF THIS AGREEMENT FOR PROFESSIONAL SERVICES, AGREES
TO INDEMNIFY AND HOLD CITY, ITS ELECTED OFFICIALS, OFFICERS,
AGENTS AND EMPLOYEES HARMLESS AGAINST ANY AND ALL CLAIMS
BY THIRD PARTIES, LAWSUITS, JUDGMENTS, COST, LIENS, LOSSES,
EXPENSES, FEES (INCLUDING REASONABLE ATTORNEY'S FEES AND
COSTS OF DEFENSE), PROCEEDINGS, ACTIONS, DEMANDS, CAUSES OF
ACTION, LIABILITY AND SUITS OF ANY KIND AND NATURE, INCLUDING
BUT NOT LIMITED TO, PERSONAL INJURY (INCLUDING DEATH),
PROPERTY DAMAGE, OR OTHER HARM FOR WHICH RECOVERY OF
DAMAGES IS SOUGHT THAT MAY ARISE OUT OF OR BE OCCASIONED OR
CAUSED BY A NEGLIGENT ACT, ERROR, OR OMISSION OF CONSULTANT,
ANY AGENT, OFFICER, ENGINEER, REPRESENTATIVE, EMPLOYEE,
CONSULTANT OR SUBCONSULTANT OF CONSULTANT, AND THEIR
RESPECTIVE OFFICERS, AGENTS, EMPLOYEES, ENGINEERS AND
REPRESENTATIVES WHILE IN THE EXERCISE OF PERFORMANCE OF
THE SERVICES, RIGHTS OR DUTIES UNDER THIS AGREEMENT. THE
INDEMNITY PROVIDED FOR IN THIS PARAGRAPH SHALL NOT APPLY TO
ANY LIABILITY RESULTING FROM THE NEGLIGENCE OF CITY, ITS
OFFICERS OR EMPLOYEES, IN INSTANCES WHERE SUCH NEGLIGENCE
CAUSES PERSONAL INJURY, DEATH, OR PROPERTY DAMAGE. IN THE
EVENT CONSULTANT AND CITY ARE FOUND JOINTLY LIABLE BY A
COURT OF COMPETENT JURISDICTION, LIABILITY SHALL BE
APPORTIONED COMPARATIVELY IN ACCORDANCE WITH THE LAWS OF
THE STATE OF TEXAS, WITHOUT, HOWEVER, WAIVING ANY
GOVERNMENTAL IMMUNITY AVAILABLE TO CITY UNDER TEXAS LAW
AND WITHOUT WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS
LAW.
13.2 CONSULTANT shall advise CITY in writing within 24 hours of any claim or demand
against CITY or CONSULTANT, known to CONSULTANT, related to or arising out of
CONSULTANT'S activities under this Agreement.
13.3 The provisions of Article 13 are solely for the benefit of the parties hereto and not
intended to create or grant any rights, contractual or otherwise, to any other person or
entity.
13.4 Acceptance of the final plans by CITY shall not constitute nor be deemed a release of the
responsibility and liability of CONSULTANT, its employees, associates, agents or
subcontractors for the accuracy and competency of their designs, work drawings, Plans
and Specifications or other documents and Work; nor shall such acceptance be deemed an
assumption of responsibility or liability by CITY for any defect in the designs, work
FM 1103 Utility Relocation Project Page 24
drawings, Plans and Specifications or other documents and Work prepared by
CONSULTANT, its employees, subconsultants, and agents.
ARTICLE 14: CLAIMS AND DISPUTES
14.1 Definition. A Claim is a demand or assertion by one of the parties seeking, as a matter of
right, adjustment or interpretation of this Agreement's terms, payment of money, and
extension of time or other relief with respect to the terms of this Agreement. The term
"Claim" also includes other disputes and matters in question between OWNER and
CONSULTANT arising out of or relating to this Agreement. Claims must be initiated by
written notice. Every Claim of CONSULTANT, whether for additional Compensation,
additional time, or other relief, shall be signed and sworn to by an authorized corporate
officer (if not a corporation, then an official of the company authorized to bind
CONSULTANT by signature) of CONSULTANT, verifying the truth and accuracy of the
Claim. The responsibility to substantiate Claims shall rest with the party making the
Claim.
14.2 Time Limit on Claims. Claims by CONSULTANT or by OWNER must be initiated
within 30 calendar days after occurrence of the event giving rise to such Claim. Claims by
CONSULTANT must be initiated by written notice to OWNER. Claims by the OWNER
must be initiated by written notice to CONSULTANT.
14.3 Continuing Contract Performance. Pending final resolution of a Claim except as otherwise
agreed in writing, CONSULTANT shall proceed diligently with performance of this
Agreement and OWNER shall continue to make payments in accordance with this
Agreement.
14.4 Claims for Additional Time. If CONSULTANT wishes to make Claim for an increase in
the time for performance, written notice as provided in this Article 14 shall be given.
CONSULTANT'S Claim shall include an estimate of probable effect of delay on progress
of the Work. In the case of a continuing delay only one Claim is necessary.
14.5 Claims for Consequential Damages. Except as otherwise provided in this Agreement, in
calculating the amount of any Claim or any measure of damages for breach of contract
(such provision to survive any termination following such breach), the following
standards will apply both to claims by CONSULTANT and to claims by OWNER:
14.5.1 No consequential damages will be allowed.
14.5.2 Damages are limited to extra costs specifically shown to have been directly
caused by a proven wrong for which the other party is claimed to be responsible.
14.5.3 No profit will be allowed on any damage claim.
14.6 No Waiver of Governmental Immunity. NOTHING IN THIS AGREEMENT SHALL
BE CONSTRUED TO WAIVE OWNER'S GOVERNMENTAL IMMUNITY
FROM LAWSUIT, WHICH IMMUNITY IS EXPRESSLY RETAINED TO THE
FM 1103 Utility Relocation Project Page 25
EXTENT IT IS NOT CLEARLY AND UNAMBIGUOUSLY WAIVED BY STATE
LAW.
ARTICLE 15: SEVERABILITY
15.1 If for any reason, any one or more paragraphs of this Agreement are held invalid or
unenforceable, such invalidity or unenforceability shall not affect, impair or invalidate the
remaining paragraphs of this Agreement but shall be confined in its effect to the specific
section, sentences, clauses or parts of this Agreement held invalid or unenforceable, and
the invalidity or unenforceability of any section, sentence, clause or parts of this
Agreement in any one or more instance shall not affect or prejudice in any way the
validity of this Agreement in any other instance.
ARTICLE 16: ESTIMATES OF COST
16.1 Since CONSULTANT has no control over the cost of labor, materials, or equipment or
over CONSTRUCTION CONTRACTOR'S methods of determining prices, or over
competitive bidding or market conditions, CONSULTANT'S opinions of probable Project
Cost or Construction Cost provided for herein are to be made on the basis of
CONSULTANT'S experience and qualifications and represent CONSULTANT'S best
judgment as a design professional familiar with the construction industry but
CONSULTANT cannot and does not guarantee that bids or the construction cost will not
vary from opinions of probable Cost prepared by CONSULTANT.
1.7.1 No officer or employee of CITY shall have a financial interest, directly or indirectly, in
any contract with CITY, or shall be financially interested, directly or indirectly, in the sale
to CITY of any land, materials, supplies or service, except on behalf of CITY as an officer
or employee. This prohibition extends to other CITY boards and commissions, which are
more than purely advisory. The prohibition also applies to subcontracts on CITY projects.
17.2 CONSULTANT acknowledges that it is informed that the Charter of CITY prohibits a
CITY officer or employee, as those terms are defined in the Ethics Code, from having a
financial interest in any contract with CITY or any CITY agency.
17.3 CONSULTANT warrants and certifies, and this Agreement is made in reliance thereon,
that it, its officers, employees and agents are neither officers nor employees of CITY.
CONSULTANT further warrants and certifies that it has tendered to CITY a
Discretionary Contracts Disclosure Statement.
ARTICLE 18: CONFLICTS OF INTEREST DISCLOSURE
18.1 All consultants must disclose if it is associated in any manner with a CITY official or
employee in a business venture or business dealings. To be "associated" in a business
venture or business dealings includes being in a partnership or joint venture with the
officer or employee, having a contract with the officer or employee, being joint owners of
a business, owning at least 10% of the stock in a corporation in which a CITY officer or
FM 1103 Utility Relocation Project Page 26
employee also owns at least 10 %, or having an established business relationship as client
or customer.
ARTICLE 19: STANDARD OF CARE
19.1 Services provided by CONSULTANT under this Agreement will be performed in a
manner consistent with that degree of care and skill ordinarily exercised by members of
the same profession currently practicing under similar circumstances.
19.2 CONSULTANT shall be represented by a registered professional engineer licensed to
practice in the State of Texas at meetings of any official nature concerning the Project,
including but not limited to scope meetings, review meetings, pre -bid meetings, and
preconstruction meetings.
19.3 The Texas Board of Professional Engineers, 1917 . IH -35 South, Austin, Texas 78741,
(512) 440 -7723 has jurisdiction over individuals licensed under Title 22 of the Texas
Administrative Code.
19.4 Acceptance of the final plans by CITY shall not constitute nor be deemed a release of the
responsibility and liability of CONSULTANT, its employees, associates, agents, or
subcontractors for the accuracy and competency of their designs, work drawings, Plans
and Specifications or other documents and Work; nor shall such acceptance be deemed an
assumption of responsibility or liability by CITY for any defect in the designs, work
drawings, Plans and Specifications or other documents and Work prepared by
CONSULTANT, its employees, subconsultants, and agents.
ARTICLE 20: RIGHT OF REVIEW AND AUDIT
20.1 CONSULTANT agrees that CITY may review any and all of the work performed by
CONSULTANT UNDER THIS Agreement. CITY is granted the right to audit, at
CITY'S election, all of CONSULTANT'S records and billings related to performance of
this Agreement. CONSULTANT agrees to retain such records for a minimum of four
years following completion of this Agreement. Any payment, settlement, satisfaction, or
release provided under this Agreement shall be subject to CITY'S rights as may be
disclosed by such audit.
ARTICLE 21: ENTIRE AGREEMENT
21.1 This Agreement, together with Attachments 1, 2, 3, and 4, represents the entire and
integrated agreement between CITY and CONSULTANT and supersedes all prior
negotiations, representations, or agreements, either oral or written. This Agreement may
be amended only by written instrument signed by both CITY and CONSULTANT.
ARTICLE 22: VENUE
22.1 The obligations of the parties to this Agreement shall be performable in the City of
Schertz or its Extra Territorial Jurisdiction, located in Bexar, Comal, and Guadalupe
FM 1103 Utility Relocation Project Page 27
Counties, Texas, and if legal action, such as civil litigation, is necessary in connection
therewith, exclusive venue shall lie in Guadalupe County, Texas.
ARTICLE 23: NOTICES
23.1 Except as may be provided elsewhere herein, all notices, communications, and reports
required or permitted under this Contract shall be personally delivered or mailed to the
respective party by depositing the same in the United States Postal Service addressed to
the applicable address shown below, unless and until either party is otherwise notified in
writing by the other party of a change of such address. Mailed notices shall be deemed
communicated as of five calendar days of mailing. Notices provided via email shall be
deemed communicated as of the next business day after the notice is sent.
If intended for CITY, to:
If intended for CONSULTANT, to
City of Schertz
Engineering Department
10 Commercial Place
Schertz, Texas 78154
The address listed on the first page of this
Agreement.
ARTICLE 24: INDEPENDENT CONTRACTOR
24.1 In performing services under this Agreement, the relationship between CITY and
CONSULTANT is that of independent contractor. By the execution of this Agreement,
CONSULTANT and CITY do not change the independent contractor status of
CONSULTANT. CONSULTANT shall exercise independent judgment in performing its
duties and obligations under this Agreement and is solely responsible for setting working
hours, scheduling or prioritizing the work flow and determining how the Services are to be
performed. No term or provision of this Agreement or act of CONSULTANT in the
performance of this Agreement shall be construed as making CONSULTANT the agent,
servant or employee of CITY, or as making CONSULTANT or any of its agents or
employees eligible for any fringe benefits, such as retirement, insurance and worker's
compensation, which CITY provides to or for its employees.
ARTICLE 25: CAPTIONS
25.1 The captions for the individual provisions of this Agreement are for informational
purposes only and shall not be construed to effect or modify the substance of the terms
and conditions of this Agreement to which any caption relates.
FM 1103 Utility Relocation Project Page 28
IN WITNESS WHEREOF, the parties to this Agreement hereby execure, this Agreement
ATTACHMENT 1
PROJECT SCOPE OF SERVICES
Project Design Description:
Consultant shall provide civil engineering professional consulting services to the City of Schertz
for the design, bid and construction services for the adjustments of the existing water mains and
sewer mains on FM 1103, from IH 35 north bound frontage road to the intersection of Chelsea
Rd, and at the intersections of Fortune Hill, Chelsea Rd, and Old Wiederstein Road. The design
of the adjustment to the existing water and sewer mains shall be in coordination with TxDOT' s
design of the reconstruction of FM 1103 and associated drainage improvements for that same
region.
Specific Scope of Services:
Consultant shall prepare a set of construction plans, specifications, and quantity estimates, for
review, approval, and construction with associated details for the replacement of existing water
mains for the limits of the project as described above.
The City will provide consultant with CAD base files of the TXDOT design, including the
existing topographic survey, the proposed road design, the proposed drainage layout files, and
the proposed right of way limits.
The City will provide five approximately eight (8) potholes on the existing water main on FM
1103 at locations identified by FEI.
It is anticipated that the City of Schertz improvements will be constructed separately from and
prior to the TXDOT improvements, and FEI will provide a design for temporary erosion control .
measures, temporary traffic control and project phase sequencing.
Consultant's design shall include the extension of a sanitary sewer at IH 35 north bound frontage
road, and approximately 15 locations of conflict with the existing main and the proposed road
and drainage improvements. The plans shall provide for the reconnections of all existing
services, trench restoration per the City of Schertz specifications, and tie -ins to existing mains.
Consultant shall provide an opinion on probable cost based on similar projects and best available
information.
The City will provide the front end documents for the bid documents and specifications.
Consultant shall provide the bid proposal documents and fill in the appropriate data for the bid
documents. The City will determine bid dates, City project numbers, and other project
identifying information as required.
TXDOT has provided the City with 60% design phase construction documents. It is anticipated
that FEI will provide submittals to the City of Schertz for 60% design phase and the 90% design
phase.
FM 1103 Utility Relocation Project Page 30
• The 60% submittal shall include an opinion of probable cost, and the plans developed to
at least 60% completion, showing alignments, fittings, services and limits of
construction of base bid and additive alternates. Plans will be 22 -inch by 34 -inch. The
submittal documents will be provided in digital format (PDF) to the City for review.
• The 90% submittal shall include an opinion of probable cost, construction plans
developed to at least 90% completion, and bid document complete with the exception
of pertinent dates and information to be provided by the City. The plans will
incorporate all City comments provided on the 60% submittal. Plans will be 22 -inch
by 34 -inch. The submittal documents will be provided in digital format (PDF) to the
City for review. Changes in design /scope requested by the City after this submittal
requiring additional construction plan sheets, changes in limits of work or alignment
of utility, will be considered additional service negotiated by change order.
• The 100% submittal or Bid Set shall include an opinion of probable cost, and the
construction plans and Bid Documents. The submittal documents will be provided in
digital format (PDF) to the City for review.
Consultant shall aid in the bidding process (answering contractor questions and issuing of
addendums as required). Consultant shall have a representative available for pre -bid and bid
opening meetings with the City of Schertz. Upon receipt of bid proposals, Consultant shall
provide a tabulation of bid, call three references of the apparent low bidder, provide the City with
a recommendation of award, and assist the City in providing copies of contract documents for
signatures by all parties.
Consultant shall have a representative available for pre - construction and monthly project
meetings during construction. Consultant and its team member shall provide eight (8) site visits
in order to observe general construction progress and determine compliance with the plans and
specifications. Consultant shall review up to eight (8) monthly and one final payment
applications by the contractor, and provide recommendations to the City for payment. If the
project duration requires more than eight monthly payment application reviews, the time
required of Consultant will be compensated at an hourly rate determined in Attachment 3 of this
agreement. Consultant and their team shall review contractor's submittals, respond to RFI's, and
issue change orders as required. Consultant and its team shall have representatives present at the
site for project walkthrough and prepare a punch list of corrections for final approval of the
project.
After construction has been completed and work approved by the City, Consultant shall
incorporate any changes made during construction, as indicated by the contractor on a marked up
set of plans, into a set of Project Record Drawings.
FM 1103 Utility Relocation Project Page 31
ATTACHMENT
PROJECT DESIGN PHASES CST AND TIMELINE
PROJECT PHASE
ESTIMATED COST
TIME IN CALENDAR
DAYS
Preliminary Engineering Report
_
0% Design
60% Design
$15,608.0
3
90% Resign
$12,435.00
2
Biel Phase
$4,745
30
Construction Please including
$5,225.00
Closeout
TOTAL ESTIMATED COST
$38,013.00
(NOT-TO-EXCEED AMOUNT)
FM 1103 Utility Relocation Project
Page 32
fi4o-
ATTACHMENT 3
BILLING RATE SCHEDULE
Discipline
Hourly Rate
Principal
$200.00
Sr. Civil Engineer (PE)
S 105.00
E.T
$95.00_
Clerical Staff`
x;65.00
Registered Professional Land
S 150.0
Surveyor (R L )
Survey Technician
S 85.00
2-Person Survey Crete
145.00
3- Person Survey Crew
$ 165,00
4 -Man Crew :
185.00
EM 1103 Utility Relocation project
Page 33
0—
ATTACHMENT 4
• i 1 i
To be completed as necessary.
CITY OF SCHERTZ
CITY MANAGER
CONSULTANT
Consultant Name
TITLE
FM 1103 Utility Relocation Project Page 34
City Council Meeting:
Department:
Subject:
BACKGROUND
Agenda No. 8
CITY COUNCIL MEMORANDUM
May 23, 2017
Public Affairs
Ordinance No. 17 -T -18 — An
Ordinance by the City Council of the
City of Schertz, Texas authorizing a
budget amendment to fund the 42nd
Annual 4th of July Jubilee (S.
Gonzalez /L. Klepper /M. Spence)
(First Reading)
An annual 4th of July Jubilee, celebrating our Nation's Independence, has been held in
Schertz since 1976. This event fosters community in our area, helps to showcase our City and
its premier park, and reminds us to celebrate those who came before us.
Previously, this event has been organized and run by the Schertz Parks and Recreation
Foundation, with assistance from city staff. At the December 6, 2016 Council meeting, the
Foundation announced they had voted unanimously to dissolve the foundation. With this
announcement, the city has taken on the fiscal responsibility to ensure that this event
continues, but to evaluate the event, keep in mind the why we have it, and focus on what
elements are important to maintain, while not overcommitting resources and with the
ultimate goal of providing this local community event that Schertz residents can enjoy.
Beginning with a 5K and 1.5 mile parade, the 42nd Annual 4th of July Jubilee will commence
with families lining Schertz Parkway, Main Street and Oak Street to welcome 200+ runners
and 100+ parade participants. Following the parade and opening ceremonies, the event will
feature live music, festival food, crafter vendors who sell homemade products, local business
information booths, and a carnival for families to enjoy. A fireworks show completes the
evening with spectator numbers in the thousands, creating a sea of people in Pickrell Park
who come out to celebrate our Nation's Independence Day.
FISCAL IMPACT
At the February 7, 2017 Council meeting, Staff presented a workshop item discussing the
Jubilee event. One of the goals that was presented for this transitional year was to breakeven
on budget; balancing revenues and expenses.
50077367.2
The budget for the 42"d Annual Jubilee will be approximately $26,000. This will cover costs
of fireworks, services such as portable lights, restroom facilities, outsourced staff to ensure
grounds are clean during event, entertainment, parade trophies, and advertising.
Revenues from vendor fees, sponsorships, parade fees, and the carnival will offset expenses
for the event totaling approximately $26,000.
While events like this require staff time to run them, another area Staff is looking at is
reducing the number of staff hours that have traditionally gone into this event. With this
year's Jubilee set to be a one -day event and going to a ticketless system (eliminating the need
for ticket booths and the finance trailer), it will ensure that staff time will be reduced while
being more convenient for our citizens.
RECOMMENDATION
Staff recommends Council approval of Ordinance 1.7 -T -1.8 on the first reading.
ATTACHMENTS
Ordinance No. 17 -T -1.8
2017 Jubilee Financial Report
50077367.2
ORDINANCE NO. 17 -T -18
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING A BUDGET AMENDMENT TO
FUND THE 42nd ANNUAL FOURTH OF JULY JUBILEE EVENT;
REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN
CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, pursuant to Ordinance 1.6 -T -29, the City of Schertz (the "City ") adopted the
budget for the City for the fiscal year 2016 -2017 (the "Budge ), which provides funding for the
City's operations throughout the 2016 -201.7 fiscal year; and
WHEREAS, the City needs to increase the Budget to authorize expenditures of $26,000
for the funding of the 42nd Annual Fourth of July Jubilee Event in the General Fund; and
WHEREAS, the City needs to recognize additional revenue from sponsorships, donations
and fees for this event in the amount of $31,000; and
WHEREAS, City staff recommends that the City Council of the City adjust the Budget
and approve the additional revenue and expense for the event; and
WHEREAS, the City Council of the City has determined that it is in the best interest of
the City to adjust the :Budget and approve the budget adjustment for the General. Fund for the
42nd Annual Fourth of July Jubilee Event, as more fully set forth in this Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS:
Section 1. The City shall adjust the Budget by $26,000 for the 42nd Annual Fourth of
July Jubilee Event.
Section 2. The City shall recognize the additional $31,000 in revenue from sponsorships,
donations and fees for this event.
Section 3. The recitals contained in the preamble hereof are hereby found to be true, and
such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part
of the judgment and findings of the Council.
Section 4. All ordinances and codes, or parts thereof, which are in conflict or
inconsistent with any provision of this Ordinance are hereby repealed to the extent of such
conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters
resolved herein.
Section 5. This Ordinance shall be construed and enforced in accordance with the laws
of the State of Texas and the United States of America.
Section 6. If any provision of this Ordinance or the application thereof to any person or
circumstance shall be held to be invalid, the remainder of this Ordinance and the application of
such provision to other persons and circumstances shall nevertheless be valid, and the City
hereby declares that this Ordinance would have been enacted without such invalid provision.
Section 7. It is officially found, determined, and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Ordinance, was
given, all as required by Chapter 551, as amended, Texas Government Code.
Section 8. This Ordinance shall be effective upon the date of final adoption hereof and
any publication required by law.
PASSED ON FIRST READING, the 23rd day of May 2017.
PASSED, APPROVED and ADOPTED ON SECOND READING, the day of
, 2017.
CITY OF SCHERTZ, TEXAS
Michael R. Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
50558021.1 - 2 -
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2017 - Estimated
2017 - Estimated 2017 - Estimated
Band 1
Clifton DeLeon
$400.00
lAwards /Trohpies
15 plus ribbons $1,300.00
Band 2
Jesse Stratton
$400.00
ssignage
$200.00
Band 3
Made in Texas
$600.00
Decor for Council Float
$200.00
Clown /Magician
Bonzo Crunch
$250.00
an for Spectators
$400.00
Sound /Lights
Century Music
$2,200.00
¢Totals
$2,100.00
Emcee - All Day
Ernest Spradling
$500.00
;Port - A - Johns
18 +3ADA $1,400.00
cPortable Light Towers
3 $300.00
s Herald front strip /Ads
$885.00
(Generator (for food cages)
1 $250.00
sEvent Hand Fans
SBU
$425.00
cBest seat in the House (signage)
$50.00
s
Roadway Banner update
$500.00
!Watermelons
r Restroom Attendants
20 $100.00
2 @ 8 hours $400.00
;Totals
$1,810-00.
Totals
$2,500.00
Revenues
Name Estimated
HEB - Fireworks 1 �wwwwwwwwwwwwmmAAAAAmM
ATM 1
--------- - -- - -------
Best seat in the house 200
Sponsorship @ $15,000.00
ATM @ $100.00
-------------------- -
Guests @ -$10.00,
Estimated
Estimated
$15,000.00
$100.00
$2,000.00
$17,100.00
Chick-fil -A
1
s
Commercial Business
$35.00
$35.00
,Kent Powersports ------------------------ --------------------------
1
Commercial Business
ss
00
............. 35.66
$35.00
Schertz Bank & Trust
1
Commercial Business @
$35.00
$35.00
Coldwell Banker D'Ann Harper
1
Commercial Business @
-----------------
$35.00
Mattenga's Pizzeria
1
Commercial Business @
$35.00
$35.00
-------------------------
The Claus Team with Keller Williams
1
Commercial Business @
$35.00
$35.00
Johnny's Wrecker Service LLC
1
Commercial Business @
---------------------------- - -
$35.00
$35.00
- ---------- - -----------------------
Brighter Futures Learning Center
1
Commercial Business @
- ------------------------ -- ----
$35.00
$35.00
- ---------------------------
Love to and Tumble School
1
Commercial Business @
$35.00
$35.00
_Swim
- ---------------------------
Kung Jung Mu Sul
1
Commercial Business @
$35.00
$35.00
---------------- - - -----------------------------
Kimber Grace Boutique
1
Commercial Business @
- -------------------- $35 00
$35.00
Businesses - TBD
9
Commercial Business @
$315.00
$700.00
Twisted Traditions
1
Food Truck Vendor @
$500.00
$500.00
Old Fashion Kettle Corn
1
Food Truck Vendor @
$500.00
$500.00
Kona Ice
1
Food Truck Vendor @
$500.00
$500.00
Ice Cream
1
Food Truck Vendor @
$500.00
$500.00
Brooks BBQ
1
Food Cage Vendor @
$500.00
$500.00
III e
1
Food Cage Vendor
$500.00
$500.00
Bob's Burgers
1
Food Cage Vendor
$500.00
$500.00
Purple p e Pig
1
Food Cage Vendor @
$500.00
$500.00
Classic Delights
I
Food Cage Vendor @
$500.00
$500.00
Beverage Cage Vendor @$300.00
$300.00
R7ort Vacatom
I
Business Vendor @
$200.00
$200.00
Bu,�me ss _ TSC
11
Business Vendor @
$200.00
$2,200.00
Jennifer's Books
1
Craft Vendors
$50.00
$50.00
Talents Facepainting
I
Craft Vendors
$50.00
$50.00
Craft - TBD
8
Craft Vendors @
50.00
$400.00
$7,700.00
Carnival
1
Carnival @
$6,000.00
$6,000.00
$6,000.00
Profit - Loss Summary
'Rt",
"T Ci menses $25 760.00