12-12-2017 Agenda with backupMEETING AGENDA
City Council
JOINT MEETING CITY COUNCIL, ECONOMIC DEVELOPMENT
CORPORATION AND REGULAR SESSION CITY COUNCIL
December 12, 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 treated
Work together cooperatively as a tea
Call to Order — Joint Workshop Session
1. Call meeting to order
A. Schertz City Council
B. Schertz Economic Development Corporation
Workshop Item
• Overview of Efforts to Implement the Historic Downtown /Main Street Schertz Plan.
(B. James)
Adjourn Special Joint Workshop Meeting
A. Schertz City Council
B. Schertz Economic Development Corporation.
Call to Order — Regular Session City Council
Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of
Texas. (Mayor Carpenter)
City Events and Announcements
• Announcements of upcoming City Events (B. James /D. Wait /S. Gonzalez)
• Announcements and recognitions by City Manager (J. Kessel)
12 -12 -2017 Council Agenda
Presentations
• Presentation regarding the 2017 Healthy Workplace Recognition Program in
collaboration with the San Antonio's Mayor's Fitness Council. (D. Wait /J. Kurz)
• Presentation regarding the Festival of Angels event. (S. Gonzalez /L. Klepper/
M. Spence)
Workshops
• Discussion and possible action to officially name the park located on the west side of
Schertz Parkway generally between Ashley Park Drive and Jonas Drive. (B. James /C.
Van Zandt /L. Shrum)
• Discussion and update regarding the City fees charged by GIS, City Secretary and
Parks Department. (B. James /J. Walters /T. McFalls /D. Schmoekel /L. Shrum)
• Council will discuss and possibly take action regarding placing an item on a future
agenda to discuss the possibility of establishing a set of guidelines or a policy
regarding the use of social media by elected and appointed officials in the City of
Schertz. (Mayor /Council)
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 Dearing of `Residents portion of'the agenda, will call on those persons who
have signed up to speak in the order they have registered.
Discussion and Action Items
2. Ordinance No. 17 -B -52 — Consideration and /or action authorizing the issuance of
City of Schertz Texas General. Obligation Refunding :Bonds, Series 2018, . levying an
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, authorizing the execution
of a paying agent /registrar agreement, a purchase and investment letter, and an
escrow deposit letter; complying with the letter of representations on file with the
depository trust company; authorizing the execution of any necessary engagement
12 -12 -2017 City Council Agenda Page - 2 -
agreements with the City's financial advisors and or bond counsel and providing an
effective date. First and Final Reading (J. Kessel/J. Walters /M. McLiney)
3. Ordinance No. 17 -L -51 — Consideration and /or action to amend the Code of
Ordinances of the City of Schertz, Texas by revising Chapter 50, Article VII, Garage
sales to eliminate the requirement for a permit and modify the existing regulation.
First Reading (B. James /L. Wood)
4. Ordinance No. 17-K-49- Conduct a public hearing and consider action on an
ordinance closing and abandoning a section of Savannah Drive right of way to the
PH abutting property owner, located southwest of the intersection of Savannah Drive
and Big Horn Trail. First Reading (B. James / L. Wood/ B. Cox)
5. Ordinance No. 17 -S -50- Conduct a public hearing and consideration and /or action
PH on an amendment to the Code of Ordinance and Unified Development Code of the
City of Schertz, establishing a Building and Standards Commission, providing a
criminal Penalty, providing for publication, and providing an effective date. First
Reading (B. James/ L. Wood/ E. Grobe)
6. Resolution No. 17 -R -1.14 - Consideration and/or action approving a Resolution
authorizing a Sidewalk Easement Agreement with Zeenat & Salim Investments, Inc.,
for the use and control of the City of Schertz for the construction and maintenance of
a sidewalk facilities. (B. James /K. Woodlee)
7. Resolution No. 17 -R -119 - Consideration and /or action approving a Resolution
appointing a Director of the Tax Increment Reinvestment Zone Number Two, City
of Schertz and related matters in connection therewith. (B. James /B. Dennis)
8. Resolution No. 17 -R -113 — Consideration and /or action approving a Resolution
authorizing the City Manager to enter into an agreement with Cibolo Creek Municipal
Authority for the site preparation and installation of a leased pre - packaged sewer
treatment plant to expand waste water treatment capacity at the Woman Hollering
Treatment Plant. (D. Wait)
9. Resolution No. 17 -R -115 - Consideration and /or action approving a Resolution
authorizing the City Manager to enter into an agreement with Stryker EMS
Equipment for the purchase of five (5) stretchers, upgrade three (3) current stretchers
and add service agreements on all stretchers and stretcher loading systems. (D.
Wait /J. Mabbitt)
10. Resolution No. 17 -R -117 - Consideration and /or action approving a Resolution
authorizing the City Manager to enter into an agreement with Stryker EMS
Equipment for the purchase of four (4) stretcher loading systems. (D. Wait /J.
Mabbitt)
1.1. Resolution No. 17 -R -116 — Consideration and/or action approving a Resolution
authorizing expenditures in excess of $50,000 with the highest single vendor contract
not exceeding $665,000 and the total contracts not exceeding $1,193,000 and as
approved in the 2017 -2018 fiscal year budget for the City's Vehicle Replacement
Program. (D. Wait /J. Kurz)
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Roll Call Vote Confirmation
Requests and Announcements
12. Announcements by City Manager.
13. Requests by Mayor and Councilmembers that items be placed on a future City
Council agenda.
1.4. Announcements by Mayor and Councilmembers
• City and community events attended and to be attended
• City Council Committee and Liaison Assignments (see assignments below)
• Continuing education events attended and to be attended
• Recognition of actions by City employees
• Recognition of actions by community volunteers
Adiournment
CERTIFICATION
I, DONNA SCHMOEKEL, DEPUTY 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 8T" DAY OF
DECEMBER 2017 AT 4:00 P.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE
PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE
WITH CHAPTER 551, TEXAS GOVERNMENT CODE.
DONNA SCHMDEKE(_
Donna Schmoekel, Deputy City Secreta
I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE
CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE
OFFICIAL BULLETIN BOARD ON DAY OF 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
12 -12 -2017 City Council Agenda Page - 4 -
therein may be legally discussed in the closed portion of the meeting considering available
opinions of a court of record and opinions of the Texas Attorney General known to the
attorney. This provision has been added to this agenda with the intent to meet all elements
necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted
by all participants in reliance on this opinion.
COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS
Mayor Carpenter
Councilmember Davis— Place 1
Main Street Committee
Schertz Housing Authority Board
TIRZ II Board
Interview Committee for Boards and Commissions
Main Street Committee - Chair
Councilmember Gutierrez — Place 2
Councilmember Larson — Place 3
Audit Committee
Main Street Committee — Vice Chair
Investment Advisory Committee
Investment Advisory Committee
Mayor Pro -Tem Edwards — Place 4
Councilmember Scagliola — Place 5
Interview Committee for Boards and
Interview Committee for Boards and Commissions
Commissions
Hal Baldwin Scholarship Committee
Cibolo Valley Local Government Corporation
Schertz- Seguin Local Government Corporation — Alternate
Main Street Committee
Cibolo Valley Local Government Corporation - Alternate
Councilmember Kiser — Place 6
Councilmember Crawford — Place 7
Schertz Animal Services Advisory Commission
Schertz- Seguin Local Government Corporation
Audit Committee
Interview Committee for Boards and Commissions
12 -12 -2017 City Council Agenda Page - 5 -
Agenda No. 2
CITY COUNCIL MEMORANDUM
City Council Meeting: December 12, 2017
Department: Finance
Subject: Ordinance No. 17- B — 52 — Consideration
and /or action approving an Ordinance by the
City Council of the City of Schertz, Texas
authorizing the issuance of "City of Schertz,
Texas General Obligation Refunding Bonds,
Series 2018 ", levying an 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, authorizing the
execution of a paying agent /registrar
agreement, a purchase and investment letter,
and an escrow deposit letter; complying with
the letter of representations on file 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 and
effective date.
I IMIT4 X" Zl111►11�
The City Council at its December 5, 2017 meeting authorized city staff and consultants to proceed
with a refunding of its General Obligation Bonds, Series 2008 for debt service savings.
FISCAL IMPACT
The City received 9 bids from banks around the State and First National Bank Texas submitted the
lowest bid with a rate of 2.12 %. Based upon their bid, the refunding generates gross savings of
$668,370 or 9.8% present value savings as a percentage of bonds refunded. The Bonds are supported
by the City's I &S tax rate and the I &S supported debt service is anticipated to decrease by $67,000
per year because of this refunding.
RECOMMENDATION
Staff recommends authorizing the sale of the refunding bonds and locking in the savings as presented
by SAMCO Capital Markets based upon the best bid received.
ATTACHMENT(S)
Final Refunding Results Presentation
Bond Ordinance 17 -B -52
ORDINANCE NO. 17 -B -52
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE ISSUANCE OF "CITY OF
SCHERTZ, TEXAS GENERAL OBLIGATION REFUNDING BONDS,
SERIES 2018 ", LEVYING AN 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, AUTHORIZING
THE EXECUTION OF A PAYING AGENT /REGISTRAR AGREEMENT,
A PURCHASE AND INVESTMENT LETTER, AND AN ESCROW
DEPOSIT LETTER; COMPLYING WITH THE LETTER OF
REPRESENTATIONS ON FILE 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 (the City Council) of the City of Schertz, Texas (the City)
has heretofore issued, sold, and delivered, and there are currently outstanding obligations in the
aggregate original principal amount of $6,035,000, being the obligations set forth on Schedule I
hereto which is incorporated by reference for all purposes to this ordinance (the Refunded
Obligations); and
WHEREAS, the City Council intends to issue an aggregate principal amount of
$6,035,000 in general obligation refunding bonds the proceeds of which will be utilized to
provide for the (i) refunding of the Refunded Obligations and (ii) payment of the costs of
issuance of the general obligation refunding bonds; and
WHEREAS, pursuant to the provisions of Chapter 1207, as amended, Texas Government
Code (the Act), the City Council is authorized to issue refunding bonds and deposit the proceeds
of sale under an escrow agreement to provide for the payment of the Refunded Obligations, and
such deposit, when made in accordance with the Act, shall constitute the making of firm banking
and financial arrangements for the discharge and final payment of the Refunded Obligations; and
WHEREAS, the Act permits that the deposit of the proceeds from the sale of the
refunding bonds be deposited directly with any designated escrow agent which is not the
depository bank of the City; and
WHEREAS, when firm banking arrangements have been made for the payment of
principal of and interest to the stated maturity or redemption dates of the Refunded Obligations,
then the Refunded Obligations shall no longer be regarded as outstanding except for the purpose
29197728.5
of receiving payment from the funds provided for such purpose and may not be included in or
considered to be an indebtedness of the City for the purpose of a limitation on outstanding
indebtedness or taxation or for any other purpose; and
WHEREAS, Bank of America, N.A., Dallas, Texas, currently serves as the paying agent
for the Refunded Obligations; and
WHEREAS, UMB Bank, N.A., Austin, Texas is hereby appointed as the Escrow Agent
(hereinafter defined) for the general obligation refunding bonds; and
WHEREAS, First National Bank Texas, Killeen, Texas is hereby appointed as the Paying
Agent /:Registrar (hereinafter defined) for the general obligation refunding bonds; and
WHEREAS, the City Council also hereby finds and determines that the Refunded
Obligations are scheduled to mature or are subject to being redeemed, not more than twenty (20)
years from the date of the general obligation refunding bonds herein authorized and being issued
to restructure the City's debt service and associated tax rates in the coming years, and such
refunding will result in a net present value savings of $566,500.84 and a gross savings of
$591,500.84; including the City's cash contribution of $200,678.85; and
WHEREAS, the City Council hereby finds and determines that the issuance of the
general obligation refunding bonds for the purpose of refunding the Refunded Obligations 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
THAT:
SECTION 1. Authorization - Designation - Principal Amount - Purpose. General
obligation refunding bonds of the City shall be and are hereby authorized to be issued in the
aggregate principal amount of SIX MILLION THIRTY FIVE THOUSAND AND NO /1.00
DOLLARS ($6,035,000), to be designated and bear the title of "CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2018" . (the Bonds), for the purpose
of providing funds for the (i) discharge and final payment of the Refunded Obligations and
(ii) payment of the costs of issuance of the Bonds, all in conformity with the laws of the State of
Texas, particularly Chapter 1207, as amended, Texas Government Code, an ordinance adopted
by the City Council on December 1.2, 2017, . and the City's Home Rule Charter.
SECTION 2. Fully Registered Obligations - Authorized Denominations - Stated
Maturities - Interest Rates — Dated Date. The Bonds shall be issued as fully registered
obligations, without coupons, shall be dated December 15, 2017 (the Dated Date), and shall
generally be in denominations of $100,000 or any integral multiple of $5,000 in excess thereof,
and the Bonds shall be lettered "R" and numbered consecutively from One (1) upward, and
principal shall become due and payable on February 1 in each of the years and in principal
amounts (the Stated Maturities) and bear interest on the unpaid principal amounts from the
Closing Date (hereinafter defined), or from the most recent Interest :Payment Date (hereinafter
defined) to which interest has been paid or duly provided for, to the earlier of redemption or
Stated Maturity, at the per annum rates, while Outstanding, in accordance with the following
schedule:
29197728.5 -2-
Years of
Principal
Interest
Stated Maturity
Amounts ($)
Rates
2019
550,000
2.120
2020
560,000
2.120
2021
570,000
2. 120
2022
585,000
2.120
2023
595,000
2.120
2024
610,000
2.120
2025
625,000
2.1.20
2026
635,000
2.120
2027
645,000
2.120
2028
660,000
2.120
The Bonds shall bear interest on the unpaid principal amounts from the Closing 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, 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 1 in
each year, commencing August 1, 2018 . (the Interest Payment Date), while the Bonds are
Outstanding.
SECTION 3. Payment of Bonds - Pang Agent/Registrar.
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 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 First National Bank Texas, Killeen, Texas (the Paying
Agent /Registrar) to serve as the initial Paying Agent/Registrar for the Bonds 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 Bonds, all as provided 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 the City may prescribe. The City 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
29197728.5 -3-
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 Bonds 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 Bonds, due and payable by reason of
Stated Maturity, redemption, or otherwise, shall be payable only to the registered owner of the
Bonds 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 on the Bonds, (ii) on the date of surrender of the
Bonds for purposes of receiving payment of principal thereof upon redemption or at the Bonds'
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 Bond 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 Bonds shall be payable only upon presentation
and surrender of the Bonds to the Paying Agent /Registrar at its corporate trust office (provided,
however, with respect to principal payments prior to the final Stated Maturity, the Bonds need
not be surrendered to the Paying Agent/Registrar, who will merely document this payment on an
internal ledger maintained by the Paying Agent /Registrar). 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 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 Bonds 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
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
29197728.5 -4-
Holder of a Bond 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. Optional Redemption. The Bonds shall be subject to redemption prior to Stated
Maturity, at the option of the City, on February 1, 2023, 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.
B. 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 City shall notify the Paying Agent/Registrar of its decision to
exercise the right to redeem Bonds, 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 Bonds shall be entered in the minutes of the governing body of the City.
C. 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.
D. Notice of Redemption. Not less than thirty (30) days prior to a redemption date
for the Bonds, 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 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.
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. 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).
29197728.5 -5-
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
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.
E. Transfer /Exchange of Bonds. Neither the City 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
City by its Mayor or Mayor Pro Tem under the seal of the City 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 Dated 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
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. The
Paying Agent /Registrar shall obtain, record, and maintain in the Security :Register the name and
address of every owner of the Bonds, or, if appropriate, the nominee thereof. 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 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 Bonds of authorized
29197728.5 -6-
denomination 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 City shall execute, and the Paying Agent/Registrar
shall register and deliver, the Bonds 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 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 City, 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 17 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 Bonds. The Bonds herein authorized shall be initially issued as
either (i) a single fully registered Bond in the aggregate principal amount of $6,035,000 with
principal installments to become due and payable as provided in Section 2 hereof and numbered
T -1, or (ii) as one (1) fully registered Bond 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 Bond), and 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, 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, the Paying Agent /Registrar, pursuant to 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 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.
29197728.5 -7-
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 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
(hereinafter referenced)) thereon as may, consistent herewith, be established by the City 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(s)
submitted to the Attorney General of Texas may be typewritten or photocopied or otherwise
reproduced.
B. Form of Definitive Bond.
REGISTERED REGISTERED
NO. PRINCIPAL AMOUNT
United States of America
State of Texas
Counties of Guadalupe, Comal, and Bexar
CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION REFUNDING BONDS,
SERIES 2018
Dated Date: Interest Rate: Stated Maturity: CUSIP NO:
December 15, 2017
PRINCIPAL AMOUNT:
The City of Schertz, Texas (the City), a body corporate and a 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
29197728.5 -8-
redemption) and to pay interest on the unpaid Principal Amount hereof from the Closing 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,
commencing August 1, 2018 (each, an Interest Payment Date).
Principal and premium, if any, on this Bond shall be payable to the Registered Owner
hereof (the Holder), upon presentation and surrender (provided, however, with respect to
principal payments prior to the final Stated Maturity, the Bonds need not be surrendered to the
Paying Agent/Registrar, who will merely document this payment on an internal ledger
maintained by the Paying Agent /Registrar) 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 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 each interest payment date. All payments of
principal of, 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.
This Bond is one of the series specified in its title issued in the aggregate principal
amount of $6,035,000 (the Bonds) pursuant to an ordinance adopted by the governing body of
the City (the Ordinance), for the purpose of providing funds for the (i) discharge and final
payment of the Refunded Obligations and (ii) payment of the costs of issuance of the general
obligation refunding bonds, under and in strict conformity with the laws of the State of Texas,
including Chapter 1207, as amended, Texas Government Code, and the City's Home Rule
Charter.
As specified in the Ordinance, the Bonds shall be subject to redemption prior to Stated
Maturity, at the option of the City, on February 1, 2023 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, together with 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 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.
29197728.5 -9-
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 City 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 upon all taxable property within the City within the limitations prescribed by law.
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 the Bonds; 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 City and the Paying Agent /Registrar; the terms and provisions upon which this Bond 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 Bond, 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 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 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 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
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
29197728.5 - 1O-
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 Bond 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 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.
IN WITNESS WHEREOF, the City has caused this Bond to be duly executed under its
official seal.
ATTEST:
City Secretary
(CITY SEAL)
CITY OF SCHERTZ, TEXAS
Mayor
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29197728.5 -11-
C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on
Initial Bonds 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 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
(SEAL)
* Note to Printer: Not to appear on printed Bonds
Only.
Comptroller of Public Accounts
of the State of Texas
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:
29197728.5 - 1Z-
FIRST NATIONAL BANK TEXAS, Killeen,
Texas as Paying Agent /Registrar
Authorized Signature
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. The Initial Bonds shall be in the respective forms set forth in paragraph B of this
Section, except that the form of a single fully registered Initial Bond shall be modified as
follow-,-
(i) immediately under the name of the Bond(s) 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:
29197728.5 -13-
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 Amount hereof from the Closing Date (anticipated to be November 30, 2016),
or from the most recent interest payment date 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, while Outstanding, 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,
commencing August 1, 2018.
Principal of this Bond 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 First National Bank Texas, Killeen, Texas (the Paying
Agent /Registrar) (provided, however, with respect to principal payments prior to the final Stated
Maturity, the Bonds need not be surrendered to the :Paying Agent/Registrar, who will merely
document this payment on an internal ledger maintained by 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 each interest payment date. All payments of
principal of 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, and at the risk and expense of, the Holder hereof.
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29197728.5 - I4-
G. Insurance Legend. If bond insurance is obtained by the City or the Purchasers for
the Bonds, the Definitive Bonds and the Initial Bonds 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 21 and 37 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, the Mayor Pro Tem, the 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 $6,035,000 "CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2018" authorized by this
Ordinance.
D. The term City shall mean City of Schertz, located in the Counties of Guadalupe,
Coma], and Bexar, Texas and, where appropriate, the City Council of the City.
E. The term Closing Date shall mean the date of physical delivery of the Initial
Bonds 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 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.
G. The term Depository shall mean an official depository bank of the City.
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
29197728.5 -15-
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.
1. The term Molder or Molders 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 August 1, 2018, while any of
the Bonds remain Outstanding.
K. The term Ordinance shall mean this ordinance adopted by the City Council of the
City on December 12, 2017. .
L. 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 City in
accordance with the provisions of Section 23 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 17 of this Ordinance.
M. The term Purchasers shall mean the initial purchasers of the Bonds named in
Section 18 of this Ordinance.
N. The term Stated Maturity shall mean the annual principal payments of the Bonds
payable on February 1 of each year, 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 "CITY OF SCHERTZ, TEXAS GENERAL
OBLIGATION REFUNDING BONDS, SERIES 2018 . 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 21.
Authorized Officials of the City are hereby authorized and directed to make withdrawals from
the Bond Fund sufficient to pay the purchase price or 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
29197728.5 -16-
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, at the option of the City,
may 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 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 such fund will be
available at the proper time or times. All interest and income derived from deposits and
investments in such fund 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 11. Tax Levy. To provide for the payment of the Debt Service Requirements
on the Bonds being (i) the interest on the Bonds 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
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 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 Bond Fund and are thereafter
pledged to the payment of the Bonds. 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.
SECTION 12. Deposits to Bond Fund; Surplus Bond Proceeds. The City hereby
covenants and agrees to cause to be deposited in the Bond Fund prior to a principal and interest
payment date for the Bonds, from the annual levy of an ad valorem tax or from other lawfully
29197728.5 -17-
available funds, amounts sufficient to fully pay and discharge promptly each installment of
interest and principal of the Bonds as the same accrues or matures or comes due by reason of
Stated Maturity.
Accrued interest, if any, received from the Purchasers of the Bonds, along with any taxes
collected pertaining to the Refunded Obligations, after the Closing Date, 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 sums otherwise required to be deposited in said fund
from ad valorem taxes.
SECTION 13. 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 14. 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 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 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
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 1.5. 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.
29197728.5 -1 g-
SECTION 16. 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 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 :Bonds previously
certified or registered and delivered which the City 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 City.
SECTION 17. Mutilated, Destroyed, Lost, and Stolen Bonds. If (1) any mutilated Bond
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 Bond, 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 Bond 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 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.
In case any such mutilated, destroyed, lost, or stolen Bond has become or is about to
become due and payable, the City 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
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.
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 City, 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 1.8. Sale of Bonds — Authorization of Purchase Contract. The Bonds
authorized by this Ordinance are hereby sold by the City to First National Bank Texas, Killeen,
Texas, as the initial purchaser of the Bonds pursuant to a private placement (the Purchasers, and
having all of the rights, benefits, and obligations of a Holder) in accordance with the provisions
of the Purchase and Investment Letter, dated as of December 12, 2017, and between the City and
the Purchasers, in substantially the form attached hereto as Exhibit B and incorporated herein by
reference as a part of the Ordinance for all purposes, between the City and the Purchasers (the
29197728.5 -19-
Purchase Contract). The Initial Bonds shall be registered in the name of First National Bank
Texas. The pricing and terms of the sale of the Bonds are hereby found and determined to be the
most advantageous reasonably obtainable by the City. Each Authorized Official is hereby
authorized and directed to execute the Purchase Contract for and on behalf of the City and as the
act and deed of the City Council, and in regard to the approval and execution of the :Purchase
Contract, the City Council hereby finds, determines and declares that the representations,
warranties, and agreements of the City contained in the Purchase Contract are true and correct in
all material respects and shall be honored and performed by the City. Delivery of the Bonds 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 Purchase Contract.
SECTION 19. Escrow Deposit Letter Approval and Execution; Proceeds of Sale;
Contribution by City. The Escrow Deposit Letter dated as of December 12, 2017 to be effective
upon the initial delivery of the Bonds to the Purchasers (the Agreement) between the City and
UMB Bank, N.A., Austin, Texas (the Escrow Agent), attached hereto as Exhibit C and
incorporated herein by reference as a part of this Ordinance for all purposes, is hereby approved
as to form and content, and such Agreement in substantially the form and substance attached
hereto, together with such changes or revisions as may be necessary to accomplish the refunding
or benefit the City, is hereby authorized to be executed by the Mayor, Mayor Pro Tem, and City
Secretary and on behalf of the City and as the act and deed of this City Council; and such
Agreement as executed by said officials shall be deemed approved by the City Council and
constitute the Agreement herein approved.
Furthermore, any Authorized Official, or any one or more of said officials, and Bond
Counsel in cooperation with the Escrow Agent are hereby authorized and directed to make the
necessary arrangements for the purchase of the Federal Securities referenced in the Agreement
and the initial delivery thereof to the Escrow Agent on the day of delivery of the Bonds to the
Purchasers for deposit to the credit of the "CITY OF SCHERTZ, TEXAS GENERAL
OBLIGATION REFUNDING BOND SERIES 2018 ESCROW FUND" (the Escrow Fund,
including the execution of the subscription forms for the purchase and issuance of the "United
States Treasury Securities - State and Local. Government Series ", if any, for deposit to the
Escrow Fund; all as contemplated and provided by the provisions of the Act, this Ordinance, and
the Agreement.
Immediately following the delivery of the Bonds, the proceeds of sale along with a cash
contribution, if any, from the City (less certain costs of issuance, and accrued interest, if any,
received from the Purchasers of the Bonds) shall be deposited with the Escrow Agent for
application and disbursement in accordance with the provisions of the Agreement. The proceeds
of sale of the Bonds not so deposited with the Escrow Agent for the refunding of the Refunded
Obligations shall be disbursed for payment of costs of issuance and deposited with the place of
payment (of the Refunded Obligations) in an account in the name of the City and applied for the
purposes of providing for the payment of the costs and expenses incurred in connection therewith
or deposited in the Bond Fund for the Bonds, all in accordance with written instructions from
any Authorized Officials.
SECTION 20. Redemption of Refunded Obligations. _ The Refunded Obligations
referenced in the preamble hereof become subject to redemption prior to their stated maturities at
29197728.5 -20-
the price of par, premium, if any, and accrued interest to the date of redemption. The Mayor or
City Secretary shall give written notice to the paying agent /registrar for the Refunded
Obligations and the Escrow Agent that the Refunded Obligations have been called for
redemption, and the City Council orders that such obligations are called for redemption on the
date set forth on Schedule I attached to this Ordinance, and such order to redeem the Refunded
Obligations on such date shall be irrevocable upon the delivery of the Bonds. A copy of the
notice of redemption pertaining to the Refunded Obligations is attached to this Ordinance as
Exhibit D and is incorporated herein by reference for all purposes. The paying agent for the
Refunded Obligations is authorized and instructed to provide notice of this redemption to the
holders of the Refunded Obligations in the form and manner described in the ordinance
authorizing the issuance of the Refunded Obligations.
SECTION 21. 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 of physical delivery of the Initial Bonds in exchange
for the payment in full by the Purchasers.
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 1.1.48 -1(b) of the
Regulations.
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 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 148(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 1.148 -1(b) of the
Regulations.
Regulations means any proposed, temporary, or final Income Tax Regulations
issued pursuant to sections 1.03 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.
29197728.5
Yield of
(1) any Investment has the meaning set forth in Section 1.148 -5 of the
Regulations; and
(2) the Bonds means the yield on the Bonds 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 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 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 Bond, 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
Bonds to become "private activity bonds" within the meaning of section 1.41 of the Code and the
Regulations and rulings thereunder, the City 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 (including property financed with Gross
Proceeds of the Refunded Obligations), 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 (including property financed with Gross
Proceeds of the Refunded Obligations), 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 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
rulings thereunder, the City 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.-
29197728.5 -22-
(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 not cause the
Bonds 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 Bonds 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 Bonds.
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 Bonds 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 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 City 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 City may commingle
Gross Proceeds of the Bonds 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 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
gross income of the owners thereof for federal income tax purposes, the City shall pay to
the United States out of the Bond Fund or its general fund, as permitted by applicable
29197728.5 -23-
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 1.148- 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.
I. 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 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) At the time the original bonds refunded by the Bonds were issued, the City
reasonably expected to spend at least 85% of the spendable proceeds of such bonds
within three years after such bonds were issued.
(2) Not more than 50% of the proceeds of the original bonds refunded by the
Bonds were invested in Nonpurpose Investments having a substantially guaranteed Yield
for a period of 4 years or more.
K. Current Refunding of the Refunded Obligations. The Bonds are being issued, in
part, to refund the Refunded Obligations, and the Bonds will be issued, and certain proceeds
thereof used, within 90 days after the Closing Date for the redemption of the Refunded
Obligations. In the issuance of the Bonds, the City has employed no "device" to obtain a
material financial advantage (based on arbitrage), within the meaning of section 149(d)(4) of the
Code, apart from savings attributable to lower interest rates. The City has complied with the
covenants, representations, and warranties contained in the documents executed in connection
with the issuance of the Refunded Obligations. Accordingly, the City expects to invest the Bond
proceeds to be used to refund the Refunded Obligations without regard to Yield restrictions.
29197728.5 -24-
L. Elections. The City 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.
M. Qualified Tax - Exempt Obligations. Section 265 of the Code provides, in
general, that interest expense to acquire or carry tax - exempt obligations is not deductible from
the gross income of the owner of such obligations. In addition, section 265 of the Code
generally disallows 1.00% of any deduction for interest expense which is incurred by "financial
institutions" described in such section and is allocable, as computed in such section, to tax -
exempt interest on obligations acquired after August 7, 1986. Section 265(b) of the Code
provides an exception to this interest disallowance rule for financial institutions, stating that such
disallowance does not apply to interest expense allocable to tax - exempt obligations (other than
private activity bonds that are not qualified 501(c)(3) bonds) which are properly designated by an
issuer as "qualified tax - exempt obligations." An issuer may designate obligations as "qualified
tax - exempt obligations" only if the amount of the issue of which they are a part, when added to
the amount of all other tax - exempt obligations (other than private activity bonds that are not
qualified 501(c)(3) obligations and other than certain current refunding bonds) issued or
reasonably anticipated to be issued by the issuer during the same calendar year, does not exceed
$10,000,000. A tax - exempt obligation may be "deemed- designated as "qualified tax - exempt
obligations" and receive the same treatment and not count against the City's annual $10 million
limit to the extent the amount of the City does not exceed the amount of the Refunded
Obligations, (i) the Bonds are a current refunding of the Refunded Obligations, (ii) the Refunded
Obligations were designated as a "qualified tax - exempt obligation ", (iii) the weighted average
maturity of the :Bonds does not exceed the remaining weighted average maturity of the Refunded
Obligations, (iv) the amount of the Bonds does not exceed $10 million, and (v) the maturity date
of the Bonds is not later than 30 years after the date the original "qualified tax- exempt
obligation" was issued.
The City will designate the Bonds as "qualified tax - exempt obligations" or the
City will be deemed designated as "qualified tax - exempt obligations" within the meaning of
section 265(b) of the Code. In furtherance of that designation, the City will covenant to take
such action that would assure, or to refrain from such action that would adversely affect, the
treatment of the Bonds as "qualified tax - exempt obligations."
N. Control and Custody of Bonds. The Mayor 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 Bonds pending
their approval by the Attorney General, the registration thereof by the Comptroller of Public
Accounts and the delivery of the Bonds to the Purchasers.
Furthermore, any Authorized Official, either or all, are 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 Bonds, the approval of the Attorney General and their
registration by the Comptroller of Public Accounts and, together with the City's financial
advisors, Bond Counsel, and the Paying Agent /Registrar, make the necessary arrangements for
29197728.5 -25-
the delivery of the Initial Bonds to the Purchasers and the initial exchange thereof for definitive
Bonds.
SECTION 22. 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 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
City 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 on or prior to 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, at 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 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 Bonds. 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 Bonds to be treated as
arbitrage bonds within the meaning of section 148 of the Code (as defined in Section 21 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 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
Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity or
redemption date of the Bonds, 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 Bonds 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 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
29197728.5 -26-
notice of the reservation be included in any redemption notice 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 23. 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 certain legal matters as to the Bonds, said opinion
to be dated and delivered as of the date of initial delivery and payment for such Bonds. Printing
of a true and correct copy of said opinion on the reverse side of each of the Bonds, with
appropriate certificate pertaining thereto executed by facsimile signature of the City Secretary of
the City is hereby approved and authorized.
SECTION 24. CUSIP Numbers. CUSIP numbers may be printed or typed on the
definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP
numbers on the definitive Bonds shall be of no significance or effect as regards the legality
thereof, and neither the City nor attorneys approving said Bonds as to legality are to be held
responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds.
SECTION 25. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.
SECTION 26. Ordinance a Contract; Amendments - Outstanding; Bonds. The City
acknowledges that the covenants and obligations of the City 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, shall be binding on the City and its successors and assigns, and shall
not be amended or repealed by the City so long as any Bond 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 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
(1) extend the time or times of payment of the principal of, and interest on the Bonds, 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 Bonds, (2) give any
preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of
Bonds required for consent to any such amendment, addition, or rescission.
SECTION 27. 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, the Paying
Agent /Registrar, and the Holders.
29197728.5 -27-
SECTION 28. 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.
SECTION 29. 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 30. Governing Law. This Ordinance shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
SECTION 31. 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 32. 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.
SECTION 33. Authorization of Paying__ 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 Bonds. 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 34. 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 35. 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 36. No Recourse Against City 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 City or any person executing any Bond.
29197728.5 -28-
below:
SECTION 37. Continuing Disclosure Undertaking.
A. Definitions.
As used in this Section, the following terms have the meanings ascribed to such terms
Rule means SEC Rule 15c2 -1.2, as amended from time to time.
SEC means the United States Securities and Exchange Commission.
The Bonds are being sold pursuant to a private placement with the Purchasers, in
denominations of generally $100,000 or any integral multiple of $5,000 in excess thereof, to less
than thirty -five sophisticated investors, and therefore the Rule is not applicable to the offering of
the Bonds. Accordingly, no contract to provide continuing disclosure information after the
issuance of the Bonds has been made by the City with investors.
SECTION 38. Book- Entr.r Only System.
The Bonds may 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 Bonds shall be
issued (following cancellation of the Initial Bonds 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 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 E (the Representation Letter).
With respect to the Bonds 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 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 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 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 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
29197728.5 -29-
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 Bonds that they be able to obtain certificated Bonds, 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 Bonds 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 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
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 Bonds may be registered in
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 39. 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 a] I 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 Bonds, the Paying Agent/Registrar Agreement, the Purchase Contract,
and the Agreement. 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 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 City 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 40. Accounting Reports. The City shall provide annually to the Purchasers, for
so long as they are the holders of the Bonds, within 210 days after the end of each fiscal year
ending in or after 2018, financial information and operating date with respect to the City;
provided that such financial statements so to be provided shall be (1) prepared in accordance
with the generally accepted accounting principles, or such other accounting principles as the City
may be required to employ from time to time pursuant to Texas law or regulations, and (2)
audited, if the City commissions an audit of such statements and the audit is completed within
the period during which they must be provided. If the audit of such financial statements is not
29197728.5 -30-
complete within such period, then the City shall provide (1) unaudited financial statements for
the applicable fiscal year within 270 days after the end of such year, and (2) audited financial
statements for the applicable fiscal year to the Purchasers when and if the audit report on such
statements become available.
SECTION 41. 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
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 42. Contracts with Financial Advisor and/or Bond Counsel. The City Council
authorizes any Authorized Official, or the designee thereof, 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 Bonds. In addition, the City
Council also authorizes any Authorized Official, or the designee thereof, to take all actions
necessary to execute any necessary engagement agreement with Norton Rose Fulbright US LLP,
as Bond Counsel to the City.
SECTION 43. 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.]
29197728.5 -31-
PASSED, APPROVED AND ADOPTED on the 12th day of December, 2017.
CITY OF SCHERTZ, TEXAS
Mayor
City Secretary
(CITY SEAL)
29197728.5 S -1
Schedule I .......... ............................... ..........................Table of Refunded Obligations
Exhibit A ............ ............................... .........................Paying Agent /Registrar Agreement
Exhibit B .............. ............................... .......................Purchase Contract
Exhibit C ............ ............................... .........................Escrow Deposit Letter
Exhibit D ............ ............................... .........................Notice of Redemption
Exhibit E ........................................ ............................DTC Letter of Representations
29197728.5 S -2
Schedule I
Refunded Obligations
City of Schertz, Texas General Obligation Bonds, Series 2008, dated August
1, 2008, in the original principal amount of $9,900,000 (the Refunded
Obligations) stated to mature on February l in each of the years 20] 9 through
2028 in the aggregate principal amount of $6,035,000, to be redeemed on
February 1, 2018.
29197728.5 Schedule 1 -1
lWall
Paying Agent /Registrar Agreement
See Tab No. 3
29197728.5 A -1
Purchase Contract
See Tab No. 6
29197728.5 B-1
Imall
Escrow Deposit Letter
See Tab No. 4
29197728.5 C -1
lWall
1
Notice of Redemption
See Tab No. 18
29197728.5 D -1
DTC Letter of Representations
See Tab No. 5
29197728.5 E- i
Agenda No. 3
CITY COUNCIL MEMORANDUM
City Council Meeting: December 12, 2017
Department: Engineering
Subject: Ordinance No. 17 -L -51 Consideration
and /or action to amend the Code of
Ordinances of the City of Schertz, Texas
by revising Chapter 50, Article VII,
Garage Sales to eliminate the requirement
for a permit and modify the existing
regulation. (First Reading).
BACKGROUND
In 1990 the City of Schertz adopted an Ordinance establishing garage sale regulations and a
requirement for owners or a lessee of property located in the City to obtain a permit. The
ordinance was adopted because of citizen concerns with the large number of garage sales being
held at a single residence and the impact that these numerous sales would have on the neighbors
if the frequent sales effectively became a home business.
Over the last couple of years staff has received a few complaints from residents about having to
obtain a garage sale permit. Staff started researching neighboring city's garage sale regulations
and permitting requirements. Staff reviewed information from Live Oak, Universal City, Selma,
Cibolo, New Braunfels, San Marcos and San Antonio and found that only 2 of the 7, Selma and
San Antonio issue permits for garage sales; however, most do still regulate garage sales.
Currently, to obtain a garage sale permit in the City of Schertz a resident must come to the City
municipal complex, complete an application, pay the fees and be issued City authorized signs per
the ordinance. Over the last five years the City has issued an average of 445 garage sale permits
a year collecting an average of $11,000 per year in fees. The current cost of a garage sale permit
is $22.00.
Staff is proposing to eliminate the requirement for a resident to obtain a garage sale permit but
continue to maintain certain requirements associated with a garage sales.
Proposed Amendments:
• Sec. 50 -223 Definitions was modified in order to remove the definition for an officially
authorized sign. This City will not issue signs for garage sales with the proposed change.
• Sec. 50.225 Permit required was removed to allow residents to conduct garage sales in
the City limits without a permit.
• Sec. 50.227 Permit Cost was removed. This section is not needed with the elimination of
permit requirements.
• Sec. 50 -228 Placement of garage sale signs was modified to add the maximum size of
sign allowed, location of sign placement and removal of signs.
City Council Memorandum
Page 2
• Sec. 50 -230 Time limit for each garage sale was modified to change the opening
operational hours from 6:00 am to 7:00 am. as a courtesy to surrounding neighbors this is
consistent with the City weekday Construction hours.
• Sec. 50.231 Permit nontransferable was removed. This section is not needed with the
elimination of permit requirements.
• Sec. 50 -232 Rain Days was removed. This section is not needed with the elimination of
permit requirements.
• Penalty was modified to add clarity to the language and provide consistency with
recently adopted ordinances (e.g. UDC, Article 1).
• Sec. 50 -234 Fees was removed. This section is not needed with the elimination of permit
requirements. The city fees schedule will be modified with the next update.
Goal
To amend the Code of Ordinances to no longer require residents to obtain a garage sale permit
and update the regulations associated with garage sales in the City limits.
Community Benefit
The elimination of the garage sale permit will provide ease and convenience to residents by
allowing residents the ability to conduct a garage sale without obtaining a permit and to purchase
their own signs.
Summary of Recommended Action.
Review and approve Ordinance 17 -L -51 to eliminate the requirement for residents to obtain a
garage sale permit and update the associated garage sale regulations.
I51 [.YOV, 0IUi 77911 Y
The elimination of the garage sale permit will reduce City revenue by approximately $11,000 a
year. Expenses will reduce by approximately $500.00 a year for the City authorized signs.
RECOMMENDATION
Staff recommends approval of Ordinance 17 -L -51 an amendment to the City of Schertz Code of
Ordinances, Chapter 50, Article VII Garage Sales
ATTACHMENTS
Ordinance 17 -L -51
Redlines
1'1 �
AN ORDINANCE OF THE CITY OF SCHERTZ, TEXAS, AMENDING THE CODE OF
ORDINANCES OF THE CITY OF SCHERTZ, TEXAS; CHAPTER 50-
MISCELLANEOUS OFFENSES AND PROVISIONS, ARTICLE VII- GARAGE SALES
ESTABLISHING A PENALTY; REPEALING ALL ORDINANCES OR PARTS OF
ORDINANCES IN CONFLICT WITH THIS ORDINANCE; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Schertz, Texas is a Home Rule Municipality acting under authority of its
Charter and laws of the State of Texas; and
WHEREAS, City Staff has reviewed the Current Chapter 50- Miscellaneous Offense and
Provisions, Article VII- Garage Sales and have recommended certain revision and updates to the
Current Code of Ordinances; and
WHEREAS, the City Council has determined that the interests of the public are best served when
garage sale permits and associated garage sale fees within the City are no longer required; and
WHEREAS, the City Council finds that by adopting this Ordinance serves the best interests of
the City and health, safety and welfare of the public.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS, THAT:
Section 1. Chapter 50, Article VII- Garage Sales of the City of Schertz Code of Ordinances
is hereby amended as set forth in the attached Exhibit A, attached hereto and incorporated herein.
Section 2. The recitals contained in the preamble hereof are hereby found to be true, and
such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of
the judgment and findings of the Council.
Section 3. All ordinances and codes, or parts thereof, which are in conflict or inconsistent
with any provision of this Ordinance 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. If any provision of this Ordinance or the application thereof to any person or
circumstance shall be held to be invalid, the remainder of this Ordinance and the application of
such provision to other persons and circumstances shall nevertheless be valid, and the City hereby
declares that this Ordinance would have been enacted without such invalid provision.
Section 6. This Ordinance shall be construed and enforced in accordance with the laws of
the State of Texas and the United States of America.
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.
Approved on first reading the 12th day of December, 2017. .
PASSED, APPROVED AND ADOPTED on final reading the 19th day of December, 2017. .
Michael R. Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(SEAL OF THE CITY)
ARTICLE VII. - GARAGE SALES
Sec. 50 -223. - Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to
them in this section, except where the context clearly indicates a different meaning:
Charitable. Includes church groups, school groups and any organization that has applied for and received
IRS nonprofit designation. Each subsidiary organization or subgroup of any charitable organization,
including for example each auxiliary, club, special committee or any other group designated by a
charitable organization as a subsidiary organization or subgroup, shall be treated as a separate charitable
organization for purposes of this article.
Garage sale. Includes but not be limited to garage sales, neighborhood garage sales, homeowner's
association garage sales, charitable organization garage sales, or any designated individual or
organizational yard sales, auctions, bazaars, estate sale or rummage sales which are conducted for the
sale of new or used merchandise at a location which is not currently zoned for such sales.
Homeowner's association garage sale. A homeowner's association garage sale is one in which there is an
active homeowner's association within a subdivision with more than five homes are which requests a
single permit for a garage sale held on their individual properties at the same time and on the same date.
Neighborhood garage sale. A neighborhood garage sale is one in which there are more than five homes
participating, no active homeowner's association within the particular subdivision exists, and the
homeowners request a single permit for a garage sale held on their individual properties at the same time
and on the same date.
Sec. 50 -224. - Inspection of garage sales.
The building official, inspector, code enforcement officer, health official or any police officer may be
designated by the city manager and shall have the power to examine and inspect, from time to time, all
garage sales within the city.
MM
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Sec. 50-228. - Placement and size of garage sale signs.
(a)
It shall be unlawful for any person, group nrorganization to hold more than four _L4 garage sales per
calendar year.
Sec. 50-230. - Time limit for each garage sale.
It shall be unlawful for any person, group or organization to hold a garage sale for a period of time longer
than two days, operating between the hours of 67:00 a.m. to 6:00 p.m., without a written waiver by the
city manager or his her designee.
Agenda No. 4
CITY COUNCIL MEMORANDUM
City Council Meeting: December 12, 2017
Department: Planning & Community Development
Subject: Ordinance No. 17 -K -49
Conduct a public hearing and consider
action on an ordinance closing and
abandoning a section of Savannah Drive
right -of -way to the abutting property owner,
generally located on the southwest corner of
the intersection of Savannah Drive and Big
Horn Trail. (First reading)
The Savannah Bluff Unit 1 subdivision was platted in September 2005. At the time the
subdivision was platted, Savannah Drive was proposed to terminate before the Dietz creek and a
temporary turn around would be provided until such time as the road was extended with
development.
During the construction of the public infrastructure for Savannah Bluff Unit 1 Subdivision, the
adjacent subdivision Kensington Ranch Estate Unit 1 was approved with the plat being recorded
in October 2006. With the construction of Kensington Ranch Estates Unit 1, Savannah Drive was
extended across Dietz creek and ultimately to FM 1518. Because of the timing, the temporary
turnaround was not needed, nor is the extra right -of -way dedicated for the turnaround adjacent to
Lot 28, Block 2 of Savannah :Bluff Unit 1.
Goal
The property owner of 3521 Big Horn Trail has requested that the unused section of Savannah
Drive right -of. -way adjacent to 3521 Big Horn Trail be released.
Community Benefit
The abandonment and release of the ROW Segment to the property owner will enable the
property owner to add additional land to their lot that is unused right -of -way.
Summary of Recommended Action
City staff has evaluated the request to abandon the right -of. -way and found that the area is not
needed and that if released, there would be no conflicts with existing roadways or city utilities.
City Council Memorandum
Page 2
City staff recommends abandoning the Right -of. -Way Segment and releasing the Right -of -Way
to be abandoned to the adjacent property owner as described in Ordinance 17 -K -49.
FISCAL IMPACT
None
RECOMMENDATION
Staff recommends approval of Ordinance No. 17 -K -49.
ATTACHMENT
Ordinance No. 17 -K -49
Aerial Photo of Right -of -way to be Abandoned
WHEREAS, the City of Schertz, Texas, a home rule municipality, has established a publ
right-of-way immediately to the north of Lot 28, Block 2 of the Savannah Bluff Unit I Subdivisio
as further described on Exhibit attached hereto, (hereinafter the "Subject Area"); and I
WHEREAS, the Subject Area is located entirely within the Savannah Bluff Unit I
Subdivision and is abutted to the south by Lot 28, of Block 2 of the Savannah Bluff Unit I
subdivision; and
WHEREAS, as a result of the extension of Savannah Drive with the Kensington
Ranch Estates Unit I Subdivision, the Subject Area is no longer needed for the Savannah
Drive Right-Of-Way; and
WHEREAS, the Subject Area is abutted to the north, east and west by platted right-
of-way; and
WHEREAS, pursuant to Section 311.007 of the Texas Transportation Code, a home-rule
municipality may vacate, abandon, or close a street or alley.
WHEREAS, the said City of Schertz has caused studies and inquiries to be made of t
public in general and utility entities who might be directly affected; and I
BE
WHEREAS, on the 12t" day of December, 2017, a Public Hearing was held to allow
members of the public to give testimony, and comment, on the merits of the Subject Area
abandonment.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF SCHERTZ, TEXAS:
Section I. That the recitals contain in the preamble hereto are hereby found to be trta
and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as
part of the judgment and findings of the Council. I
Section 2. That the City Council finds that such closure and abandonment
requested will cause no harm or injury to the City of Schertz or its citizens, said portion of rigi
of way is not needed for public purpose and it is in the public interest to abandon said portion
of right of way.
Section 3. That the Subject Area as depicted on Exhibit "A", is hereby close
abandoned and vacated insofar as the right, title or easement of the public is concerned and sh
only extend to the public right, title and easement that the City may legally and lawfully abando,
subject to the conditions of Section 4.
Section 4. That the Subject Area is abandoned to the abutting owners, as authorized
by Section 311.007 of the Texas Transportation Code and Section 272.001(b)(2) of the Texas
Local Government Code conditioned upon the Subject Area being replatted into the property of
the abutting property owners within 12 months. The replat must not create any non-conforming
lots.
Section 5. That should any section, clause, or provision of this ordinance be declared
by a court of competent jurisdiction to be invalid, the same shall not affect the validity of this
ordinance or any other ordinance of the city as a whole or any part thereof, other than the part so
declared to be invalid.
Section 6. That it is officially found, determined and declared that the meeting at whi
this Ordinance is adopted was open to the public and public notice of the time, place, and subje
e
matter of the public business to be considered at such meeting, including this ordinance, was giv
all as required by Chapter 55 1, as arnended, Texas Government Code.
Section 7. This Ordinance shall be effective upon the date of final adoption hereof
and any publication required by law.
Section 8. This Ordinance shall be cumulative of all other ordinances of the City
of Schertz, and this Ordinance shall not operate to repeal or affect any other ordinances of
the City of Schertz except insofar as the provisions thereof might be inconsistent or in
conflict with the provisions of this Ordinance, in which event such conflicting provisions,
if any, are hereby repealed.
Approved on first reading the 12th day of December, 2017
KI-11ILT91"INA"
Michael R. Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
Portion of Right -Of -Way to be abandoned between Savannah Drive and Lot 28, Block 2 of
Savannah Bluff Unit 1 Subdivision
FA
I
City Council Meeting:
Department:
Subject:
Agenda No. 5
CITY COUNCIL MEMORANDUM
December 12, 2017
Planning & Community Development
Ordinance No. 17 -S -50 — Conduct a Public
Hearing and consideration and /or action on
an amendment to the Code of ordinances of
the City of Schertz. Establishing a Building
and Standards Commission, providing a
criminal penalty, providing for publication,
and providing an effective date. (First
Reading)
In October, 2017 Planning staff proposed changes to the Unified Development Code to Article 3
Boards, Commissions and Committees and associated updates in UDC Articles 4, 8, 9, 11, and
14. As part of this presentation staff described the need to create a new commission, the
"Building and Standards Commission" in order to hear cases related to building code and fire
code decisions and appeals.
At the October 24th City Council approved Ordinance 17 -S -40, an amendment to UDC Article 3
which created the UDC language for a "Building and Standards Commission ".
At this City Council meeting, staff noted that although the modification to the UDC was a
starting point for the creation of this commission, staff would come to City Council in order to
fully establish the Building and Standards Commission within City code.
This proposed ordinance is to fully establish the Building and Standards Commission by
updating the City Code of Ordinances. The creation of this commission is intended to provide an
appropriate outlet for applicants requesting review of a building code item, appealing a decision
of the fire marshal, fire chief, or the building official, and to review and take appropriate actions
on buildings found to be in violation of a city ordinance or a public nuisance.
This proposed Ordinance is to modify / create the following items:
• Chapter 18 — Building and Building Regulations Article 1. In General, Sec. 18 -6
o Full Text In Ordinance Exhibit "A"
o Update to replace Sec. 18 -6 Board of Appeals ( which this board does not
currently exist) with "Building and Standards Commission"
City Council Memorandum
Page 2
• Chapter 30 — Fire Prevention and Protection, Article V. — fire Prevention Code, Sec. 30-
82 Amendments
o Full Text In Ordinance Exhibit "A"
o Update to replace Sec. [A] 108 Board of Appeals ( which this board does not
currently exist) with `Building and Standards Commission"
• Chapter 54- Nuisances Article V. Property Maintenance Requirements, Sec. 54.20 -
Demolition
o Full Text In Ordinance Exhibit "A"
• Update to replace "Board of Adjustment" with "Building and Standards
Commission ". This change is to ensure that the Building and Standards
Commission can hear cases related to demolition. Currently, it reads as Board of
Adjustment (BOA) which is not appropriate since BOA should only items related
to zoning.
• Update to replace "director of development services or his /her designee and the
marshal" with "City Manager ". This change is to be consistent with other
language where the City Manager is identified and then the appropriate staff
member will be assigned to the specific item. Additionally, with change in staff
titles the currently listed staff members are no longer appropriate.
• Creation of the procedures governing the Building and Standards Commission
o Full Text In Ordinance Exhibit "B"
• Created utilizing the adopted UDC language and Texas Local Government Code
• This document provides the requirements for members, meetings, the authority
the commissions has been provided, the criteria for determining cases, notice
requirements, action time frames of the Commission, time frame for compliance
with Commission determinations, fees, judicial review, and authority penalties.
The purpose of this ordinance is to create the justification and procedures for the Building and
Standards Commission, which in October the City Council approved to include in UDC Article 3
as a Board, Commission or Committee.
This amendment was drafted by Planning Staff and by the City Attorney (Daniel Santee, Denton
Navarro Rocha Bernal & Zech).
Goal
To amend the Code of Ordinance to create a new commission, the Building and Standards
Commission to provide a more appropriate outlet in regulation with Texas Local Government
Code.
Community Benefit
It is the City's desire to promote safe, orderly, efficient development and ensure compliance with
the City's vision of future growth.
City Council Memorandum
Page 3
Summary of Recommended Action
Review and approve Ordinance 1.7 -5 -50 an amendment to the Code of Ordinance establishing a
Building and Standards Commission, providing a criminal penalty, providing for publication,
and providing an effective date.
FISCAL IMPACT
None
Staff recommends approval of Ordinance 1.7 -5 -50 an amendment to the Code of Ordinance
establishing a Building and Standards Commission, providing a criminal penalty, providing for
publication, and providing an effective date as presented.
ATTACHMENT
Ordinance No. 1.7 -5 -50
17 -S -50
AN ORDINANCE OF THE CITY OF SCHERTZ, TEXAS, AMENDING
THE CODE OF ORDINANCES OF THE CITY OF SCHERTZ, TEXAS;
ESTABLISHING A BUILDING AND STANDARDS COMMISSION;
PROVIDING A CRIMINAL PENALTY; PROVIDING FOR
PUBLICATION; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Schertz, Texas is a Home Rule Municipality acting under
authority of its Charter and laws of the State of Texas; and
WHEREAS, the City Council has determined that the interests of the public are best
served when buildings and structures within the City are maintained in accordance with
Building and Fire Codes; and
WHEREAS, Chapter 54 of the Texas Local. Government Code authorizes a
municipality to adopt ordinances for the preservation of public safety, relating to the
materials or methods used to construct a building or improvements, relating to the fire safety
of a building or improvements, relating to dangerously damaged or deteriorated buildings or
improvements, relating to conditions caused by accumulations of refuse, vegetation or other
matter that create breeding and living places for insects and rodents, relating to a building code
or to the condition, use, or appearance of property in a municipality; and
WHEREAS, the City has adopted the International. Property Maintenance Code as
well as other International Fire and Building Codes to ensure that the condition of property and
structures within the City are maintained in a safe and healthy manner; and
WHEREAS, Chapter 21.4 of the Texas Local Government Code authorizes
municipalities to adopt ordinances to establish minimum standards for the continued use
and occupancy of buildings and to require the vacation or relocation of occupants, as well as
the securing, repair, removal or demolition of a building that is dilapidated, substandard or
unfit for human habitation and a hazard to the public health safety and welfare; and
WHEREAS, the City has adopted ordinances establishing minimum standards for use
and occupancy of structures within its jurisdiction; and
WHEREAS, the City Council is authorized by Chapter 54 of the Texas Local
Government Code to provide for the appointment of a Building and Standards Commission
to hear and determine cases concerning alleged violations of Ordinances regulating buildings
and structures, to order appropriate remedial actions, and to impose civil penalties as allowed
by law; and
WHEREAS, the City Council hereby finds that adopting this ordinance establishing
a Building Standards Commission is appropriate and necessary to ensure that buildings and
structures within the City meet minimum requirements, to allow due process for review of
administrative decisions, to address and abate floodplain violations, and to perform other
functions set forth herein below; and
WHEREAS, the City Council finds that by adopting this Ordinance serves the best
interests of the City and health, safety and welfare of the public.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF SCHERTZ, TEXAS, THAT:
Section 1. There is hereby created a Building and Standards Commission in accordance with
the provisions of Subchapter C of Chapter 54 of the Local Government Code, V.T.C.A., as
amended, and such Commission shall be empowered to operate under the laws of the City of
Schertz and the State of Texas as set forth in the Attached Exhibits A and B and may exercise
such other powers and authority conferred upon it by Subchapter C of Chapter 54 and
Subchapter A of Chapter 214 "Dangerous Structures" of the Texas Local Government Code, as
amended, or by other statutes or ordinances.
Section 2. That until such time as a sufficient number of citizens who meet the criteria
established for appointment to the Building and Standard Commission are appointed by the City
Council, the Board of Adjustment shall hear and rule upon all matters the Building and Standards
Commission is empowered to hear and rule upon.
Section 3. Chapter 18, Chapter 30, and Chapter 54 of the City of Schertz Code of Ordinances
is hereby amended as set forth in the attached Exhibit A, attached hereto and incorporated herein.
Section 4. That the Building and Standards Commission shall be empowered to operate in
conformance with the Rules of Procedure as set forth in the attached Exhibit B, attached hereto
and incorporated herein.
Section 5. 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 6. 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 7. This Ordinance shall be construed and enforced in accordance with the laws of the
State of Texas and the United States of America.
Section 8. 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 9. 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 10. Any Person violating any of the provisions of this Ordinance shall be deemed
guilty of a Class C misdemeanor upon conviction and shall be fined, except as otherwise
provided herein, in a sum not to exceed two thousand dollars ($2,000.00) for each offense, and
a separate offense shall be deemed committed upon each day during or on which a violation
occurs or continues. Further, if the governing body of the City of Schertz determines that a
violation of this Ordinance creates a threat to the public safety, the City may bring suit in
the District Court to enjoin such violation and seek such remedies as allowed by law. The civil
and criminal remedies and penalties provided in this Article shall be cumulative of those
provided by state law and provided herein.
Section 11. This Ordinance shall be effective upon the date of final adoption hereof and any
publication required by law.
PASSED ON FIRST READING, the 12th day of December, 2017.
PASSED, APPROVED and ADOPTED ON SECOND READING, the 19th day of
December, 2017. .
Mayor, Michael R. Carpenter
ATTEST:
City Secretary, Brenda Dennis
(Seal of City)
EXHIBIT A
Chapter 18 - BUILDINGS AND BUILDING REGULATIONS, ARTICLE I. - IN
GENERAL, Sec. 18 -6. — Board of appeals, is hereby amended as follows:
11
Sec. 1.8 -6. — Building and Standards Commission.
All appeals relative to the application and interpretation of the codes adopted in this chapter
shall be to the Building and Standards Commission as established under the Unified Development
Code, Article 3, Boards, Commissions and Committees.
Chapter 30- FIRE PREVENTION AND PROTECTION, ARTICLE V.-FIRE
PREVENTION CODE, Sec. 30 -82 Amendments, is hereby amended to include the following
amendment to the International Fire Code, 2012 Edition (IFC -201) with modification to the
approval body:
DELETE:
I-
Sec. [A] 108 Building and Standards Commission
All appeals relative to the application and interpretation of the codes adopted in this chapter
shall be to the Building and Standards Commission as established under the Unified Development
Code, Article 3, Boards, Commissions and Committees.
1
Chapter 54- NUISANCES Article V. PROPERTY MAINTENANCE REQUIREMENTS,
Sec. 54.20- Demolition, is hereby amended as follows with marked through text identifying
language to be removed and red and underlined text identifying language being added:
Sec. 54 -20. - Demolition.
(a) General. The code official shall order the owner of any premises upon which is located any structure, which in
the code official's judgment is so old, dilapidated, or has become so out of repair as to be dangerous, unsafe,
unsanitary or otherwise unfit for human habitation or occupancy, such that it is unreasonable to repair the
structure, and to demolish and remove such structure; or if such structure is capable of being made safe by repairs,
to repair and make safe and sanitary or to demolish and remove at the owner's option; or where there has been a
cessation of normal construction of any structure for a period of more than two years, to demolish and remove
such structure.
(b) Failure to comply. If the owner of a premises fails to comply with a demolition order within the time prescribed,
the code official shall cause the structure to be demolished and removed, either through an available public
agency or by contract or arrangement with private persons, and the cost of such demolition and removal shall be
charged against the real estate upon which the structure is located and shall be a lien upon such real estate.
(c) Salvage material. When any structure has been ordered demolished and removed, the city or other designated
officer under said contract or arrangement aforesaid shall have the right to sell the salvage and valuable materials
at the highest price reasonably obtainable. The net proceeds of such sale, after deducting the expenses of such
demolition and removal, shall be promptly remitted with a report of such sale or transaction, including the items
of expense and the amounts deducted, to the person who is entitled thereto, subject to any order of a court. If
such a surplus does not remain to be turned over, the report shall so state.
(d) Procedure.
State Law reference— LGC 214.001.
(1) A public hearing shall be held before the city's board of adjustment Buiidi g -nth Standards s C,orminission
to determine whether the building complies with the city's minimum standards for the continued use and
occupancy of all buildings regardless of the date of their construction (see section 54 -17 above) in
connection with any person directly affected by a decision of the code official or a notice or order issued
under section 54 -20.
(2) The parties to any proceeding under this section 54 -20 before the city's beard-of adjustment B "Uiiding-�!i1d
Standards C:ommiss can shall have the right to appeal the decision of the city's bomd of adj stmer 4 Building
and Standards-Commission to the state district court within ten days of such decision, or to the extent that
Section 214.0012 of the Texas Local Government Code applies, within 30 days.
(3) The eity marshal hi n,o„ designee and the dire ter- of development ser-vioes C - N1<Imge; or his /her
designee shall present all cases related to this section 54 -20 on behalf of the city before the bow of
aa;" BuiJdin an ,S ndards Commission.
(4) Whenever it is determined that there are reasonable grounds to believe that there has been a violation of
any provision of this section 54 -20 or of any rule or regulation adopted pursuant thereto, notice of such
alleged violation shall be given to the owner, and as applicable and as more fully described below, to each
lienholder and mortgagee. Such alleged violations shall constitute a nuisance.
(5) A notice of a hearing sent to an owner, lienholder, or mortgagee under this section 54 -20 must include a
statement that the owner, lienholder, or mortgagee will be required to submit at the hearing proof of the
scope of any work that may be required to comply with the ordinance and the time it will take to reasonably
perform the work.
2
(6) After the public hearing, if a building is found in violation of standards, the city's board of adjustment
— rr gan `ita, ara s_C o
amis ica1 may order that the building be vacated, secured, repaired, removed,
or demolished by the owner within a reasonable time as provided below. The city's board of adjustment
B dj!t end ,,,a_ndards C a�mi- nission also may order that the occupants be relocated within a reasonable
time. If the owner does not take the ordered action within the allotted time, the city shall make a diligent
effort to discover each mortgagee and lienholder having an interest in the building or in the property on
which the building is located. The city shall personally deliver, send by certified mail with return receipt
requested, or deliver by the United States Postal Service using signature confirmation service, to each
identified mortgagee and lienholder a notice containing:
a. An identification, which is not required to be a legal description, of the building and the property on
which it is located;
b. A description of the violation of municipal standards that is present at the building; and
C. A statement that the city will vacate, secure, remove, or demolish the building or relocate the
occupants of the building if the ordered action is not taken within a reasonable time.
(7) As an alternative to the mortgagee and lienholder notice procedure prescribed by section 54- 20(d)(6), the
city may make a diligent effort to discover each mortgagee and lienholder before conducting the public
hearing and may give them a notice of and an opportunity to comment at the hearing. In addition, the city
may file notice of the hearing in the official public records of real property in the county in which the
property is located. The notice must contain the name and address of the owner of the affected property if
that information can be determined, a legal description of the affected property, and a description of the
hearing. The filing of the notice is binding on subsequent grantees, lienholders, or other transferees of an
interest in the property who acquire such interest after the filing of the notice, and constitutes notice of the
hearing on any subsequent recipient of any interest in the property who acquires such interest after the filing
of the notice. If the city operates under this section, the order issued by the city may specify a reasonable
time in accordance with the provisions set forth below for the building to be vacated, secured, repaired,
removed, or demolished by the owner or for the occupants to be relocated by the owner and an additional
reasonable time in accordance with the provisions set forth below for the ordered action to be taken by any
of the mortgagees or lienholders in the event the owner fails to comply with the order within the time
provided for action by the owner. Under this section 54- 20(d)(7), the city is not required to furnish any
notice to a mortgagee or lienholder other than a copy of the order in the event the owner fails to timely take
the ordered action.
(8) Within ten days after the date that the order is issued, the city shall:
a. File a copy of the order in the office of the city secretary; and
b. Publish in a newspaper of general circulation in the city a notice containing:
1. The street address or legal description of the property;
2. The date of the hearing;
3. A brief statement indicating the results of the order; and
4. Instructions stating where a complete copy of the order may be obtained.
(9) After the hearing, the city shall promptly mail by certified mail with return receipt requested, deliver by the
United States Postal Service using signature confirmation service, or personally deliver a copy of the order
to the owner of the building and to any lienholder or mortgagee of the building. The city shall use its best
efforts to determine the identity and address of any owner, lienholder, or mortgagee of the building.
(10) In conducting a hearing under this section 54 -20, the city's beafd of aa;,,stmen Buiidin and St aadax °d
(.ommission (if it fords that the building fails to comply with the city's minimum standards for the continued
use and occupancy of all buildings regardless of the date of their construction) shall require the owner,
lienholder, or mortgagee of the building to within 30 days:
a. Secure the building from unauthorized entry; or
Repair, remove, or demolish the building, unless the owner or lienholder establishes at the hearing
that the work cannot reasonably be performed within 30 days.
boat of adjustmen ��' ards Commission allows the owner, lienholder, or
11 I the city's l�uk alam a,ara�._�ana ...,
mortgagee more than 30 days to repair, remove, or demolish the building, the city's board of adjustment
Building aqd :t gpLt,ards Cv oni�� issimon, in consultation with the director- of development services or hi Lhe
designee and the marshal Cj!y....Crlarn4geLY or his/her designee, shall establish specific time schedules for the
commencement and performance of the work and shall require the owner, lienholder, or mortgagee to
secure the property in a reasonable manner from unauthorized entry while the work is being performed, as
determined by city's board of [-Lq in
an Stand ands �ct nrni siwno�„ in consultation with the
director of development services or his/her designee and the marshal C `itV all a-� or his /her designee.
(12) The city's board of adjustmen B Ld I (JiMand-S taandards _t "C?ra miss ion may not allow the owner, lienholder,
or mortgagee more than 90 days to repair, remove, or demolish the building or fully perform all work
required to comply with the order unless the owner, lienholder, or mortgagee:
a. Submits a detailed plan and time schedule for the work at the hearing; and
b. Establishes at the hearing that the work cannot reasonably be completed within 90 days because of
the scope and complexity of the work.
(13) If the city's board of adjustmen it uildint and Standards Commission allows the owner, lienholder, or
mortgagee more than 90 days to complete any part of the work required to repair, remove, or demolish the
building, the beard C nmmi"i "sion shall require the owner, lienholder, or mortgagee to regularly submit
t
progress reports to the di—„r ao.,oaopme t services OF H;sn,or designee and the marshal Katy MLap, cr
or his/her designee to demonstrate compliance with the time schedules established for commencement and
performance of the work. The order may require that the owner, lienholder, or mortgagee appear before
director- Revelopmen sefz��f his/bef designee and he -m�� i,��y �1<Cnatgt or his/her designee to
demonstrate compliance with the time schedules. If the owner, lienholder, or mortgagee owns property,
including structures or improvements on property, within the city boundaries that exceeds $100,000.00 in
total value, the city's board of adjustmen Buidiu _a__ _n � as ._s Conirrussion may require the owner,
lienholder, or mortgagee to post a cash or surety bond in an amount adequate to cover the cost of repairing,
removing, or demolishing a building under this subsection. In lieu of a bond, the city's board of adjustmen
F3W 9di and 5tandaa s,w ommis 'o i may require the owner, lienholder, or mortgagee to provide a letter of
credit from a financial institution or a guaranty from a third party approved by the city. The bond must be
posted, or the letter of credit or third party guaranty provided, not later than the 30' day after the date the
city's board of adjustmen Buj 1 in and ... Standards Commission issues the order.
(14) In a public hearing before the city's board -efadjustment 1 ua1c in1 and, t,ara&rds Commission to determine
whether a building complies with the minimum standards for the continued use and occupancy of all
buildings regardless of the date of their construction, the owner, lienholder, or mortgagee has the burden of
proof to demonstrate the scope of any work that may be required to comply with the minimum standards
and the time it will take to reasonably perform the work.
(15) If the building is not vacated, secured, repaired, removed, or demolished, or the occupants are not relocated
within the allotted time, the city may vacate, secure, remove, or demolish the building or relocate the
occupants at its own expense. This subsection does not limit the ability of a city to collect on a bond or
other financial guaranty that may be required by section 54- 20(d)(13).
(16) If the city incurs expenses under section 54- 20(d)(15), the city may assess the expenses on, and the city has
a lien against, unless it is expressly prohibited under applicable state law, the property on which the building
was located. The lien is extinguished if the property owner or another person having an interest in the legal
title to the property reimburses the city for the expenses. The lien arises and attaches to the property at the
time the notice of the lien is recorded and indexed in the office of the county clerk in the county in which
the property is located. The notice must contain the name and address of the owner if that information can
be determined with a reasonable effort, a legal description of the real property on which the building was
located, the amount of expenses incurred by the city, and the balance due.
(17) If the notice is given and the opportunity to relocate the tenants of the building or to repair, remove, or
demolish the building is afforded to each mortgagee and lienholder as set forth in this section 54 -20, the
lien is a privileged lien subordinate only to tax liens.
4
(18) The city satisfies the requirements of this section 54 -20 to make a diligent effort, to use its best efforts, or
to make a reasonable effort to determine the identity and address of an owner, a lienholder, or a mortgagee
if the city searches the following records:
a. County real property records of the county in which the building is located;
b. Appraisal district records of the appraisal district in which the building is located;
C. Records of the secretary of state;
d. Assumed name records of the county in which the building is located;
e. Tax records of the city; and
£ Utility records of the city.
(19) When the city mails a notice in accordance with this section 54 -20 to a property owner, lienholder,
mortgagee, or registered agent and the United States Postal Service returns the notice as "refused" or
"unclaimed," the validity of the notice is not affected, and the notice is considered delivered.
(20) In addition to the procedures set forth above, the city may secure, in accordance with the procedures set
forth below, a building that the city's code official determines (1) violates the minimum standards; and (2)
is unoccupied or is occupied only by persons who do not have a right of possession to the building:
State Law reference— LGC 214.0011.
a. Before the 11 t" day after the date the building is secured, the city shall give notice to the owner by:
1. Personally serving the owner with written notice;
2. Depositing the notice in the United States mail addressed to the owner at the owner's post office
address;
3. Publishing the notice at least twice within a ten -day period in a newspaper of general circulation
in the county in which the building is located if personal service cannot be obtained and the
owner's post office address is unknown; or
4. Posting the notice on or near the front door of the building if personal service cannot be obtained
and the owner's post office address is unknown.
b. The notice must contain:
1. An identification, which is not required to be a legal description, of the building and the property
on which it is located;
2. A description of the violation of the municipal standards that is present at the building;
3. A statement that the city will secure or has secured, as the case may be, the building; and
4. An explanation of the owner's entitlement to request a hearing before the city's beard 0
adjustment iaildirag S
:taqd Lards Commission, about any matter relating to the city's securing
of the building.
c. The city's board of adjustment Bui)dJ g and Standards s "ommission shall conduct a hearing at which
the owner may testify or present witnesses or written information about any matter relating to the
city's securing of the building if, within 30 days after the date the city secures the building, the owner
files with the city a written request for the hearing before the city's boafd of adjustmen* Building acid
Stand -ar ,s CC�mmissi_on. The city's board of adjustment l�uiIdin& and -St nd -arils Cowin- fission shall
conduct the hearing within 20 days after the date the request is filed.
d. The city has the same authority to assess expenses under this section as it has to assess expenses under
section 54- 20(d)(16). A lien is created under this section in the same manner that a lien is created
under section 54- 20(d)(16) and is subject to the same conditions as a lien created under that section.
RULES OF PROCEDURE GOVERNING THE BUILDING AND STANDARDS
COMMISSION OF THE CITY OF SCHERTZ TEXAS
Building and Standards Commission Created
There is hereby created a Building and Standards Commission ( "the Commission ")
in accordance with the provisions of Subchapter C of Chapter 54 of the Local
Government Code, V.T.C.A., as amended.
Members
A. Number, Appointment, Qualifications. The Commission shall consist of
five (5) regular members each to be appointed by the City Council. The City
Council may also appoint up to two (2) alternate members with the same
duties and responsibilities as regular members who shall serve in the absence
of one (1) or more regular members when requested to do so by the City
Manager, or designee. All cases shall be heard by at least four (4) members.
Each member, whether regular or alternate, shall be appointed by majority vote
of the City Council. To the extent possible, members of the Commission
should be qualified in one of the following fields:
1. Registered design professional with architectural experience or a builder or
superintendent of building construction;
2. Registered design professional with mechanical and plumbing engineering
experience or a mechanical contractor or plumbing contractor;
3. Registered design professional with structural engineering experiences;
4. Registered design professional with electrical engineering experience or an
electrical contractor;
5. Registered design professional with fire protection engineering experience
or a fire protection contractor
Registered Design Professional is defined as an individual who is registered or
licensed to practice their respective design profession as defined by the
statutory requirements of the professional registration laws of the state of
Texas.
If a resident with the above criteria cannot be found then the City Council may
appoint another resident of their choosing to the Commission.
B. Terms of Office. Each regular and alternate member of the Commission
shall be appointed by the City Council for a term of two (2) years with
staggered appointments so that no more than three (3) members' terms shall
expire in any one year. Terms shall expire on September 30 of each year.
C. Removal, Filling of Vacancies. Any member, whether regular or alternate,
of the Commission may be removed for cause on a written charge. If
requested by the member subject to the removal action, the City Council shall
hold a public hearing on the matter before a decision regarding removal is
made in accordance with state law. Any and all vacancies shall be filled by
appointment based upon a majority vote of the City Council and shall be for
the unexpired term of the vacant position.
D. Officers. The Commission shall annually elect a member of the Commission
to serve as Chairperson. The Commission shall annually elect a Vice -
Chairperson, each of whom shall perform the duties set forth in this Article.
Meetings
A. Meetings of the Commission shall be held at the call of the Commission
Chairperson and at other times as determined by the Commission. All
meetings of the Commission shall be open to the public. The concurring
vote of a majority of the members of the Commission shall be required for any
action taken by the Commission under state law or ordinance adopted by the
City. The Chairperson, or in the Chairperson's absence the Acting Chairperson,
may administer oaths and compel the attendance of witnesses.
B. The Commission shall keep minutes of its proceedings showing the vote of
each member on each question or the fact that a member is absent or fails
to vote. The Commission shall keep records of its examinations and other
official actions. The minutes and records shall be filed immediately as public
records.
C. The City Manager or his /her designee shall present all cases before the
Commission.
Authority -- Generally
A. Ordinances. The Commission shall have the authority granted by the City
Code and state law and, in addition, shall have authority to hear and
determine cases concerning alleged violations of City ordinances:
1. For the preservation of public safety, relating to the materials or methods
used to construct a building or improvement, including the foundation,
structural elements, electrical wiring or apparatus, plumbing and fixtures,
entrances, or exits;
2. Relating to the fire safety of a building or improvement, including
provisions relating to materials, types of construction or design, warning
devices, sprinklers or other fire suppression devices, availability of water
supply for extinguishing fires, or location, design, or width of entrances or
exits;
3. Relating to dangerously damaged or deteriorated buildings or
improvements; or
4. Relating to conditions caused by accumulations of refuse, vegetation, or
other matter that creates breeding and living places for insects and rodents.
5. Relating to a Building Code or to the condition, use, or appearance of
property in the City.
B. Other Functions. In addition to the authority granted in this Chapter, the
Building and Standards Commission, in its capacity as a review board for
the City, shall have the following duties and powers including, but not limited
to:
1. Studying proposed Code amendments and making recommendations to the
City Council regarding any proposed amendments to the Building and Fire
Codes.
2. Hearing from any person requesting a change to the Building and Fire
Codes as adopted by the City.
3. Serving as an advisor to the Building Official and /or Fire Chief.
4. Hearing appeals from decisions of the Building Official and /or Fire Chief
pertaining to:
a. Use of alternate materials and construction methods. In the case of a
request to use alternate materials or construction methods, the
Building a n d Standards Commission shall determine whether or not
such alternate material or construction method is in fact equal to the
standards of the applicable Building or Fire Code, considering
adequacy, stability, strength, sanitation, and safety for the public's
health and welfare. As used in this
Section, Building Code or Fire Code shall include without limitation
City adopted building, electrical, plumbing, mechanical, and fire
codes, and abatement of dangerous building, fence, and swimming
pool;
b. Interpretations related to the Building Code or Fire Code as adopted
by the City, including without limitation, building, electrical,
plumbing, mechanical, and fire, and abatement of dangerous building,
fence, and swimming pool); and
c. Decisions regarding substandard buildings as further provided in this
Article.
5. Ordering the repair, within a fixed period, of buildings found to be in
violation of an ordinance.
6. Declaring a building substandard in accordance with the powers granted
by this Article and/or other local or state law.
7. Adopting and enforcing regulations relating to floodplain management
within the City and ordering compliance with floodplain regulations
pursuant to the authority granted in this Article, state law and /or federal
law.
C. Variances. The Building and Standards Commission shall not be authorized
to grant variances.
D. State Statute. The Commission may exercise such other powers and authority
conferred upon it by Subchapter C of Chapter 54 and Subchapter A of Chapter
214 "Dangerous Structures" of the Texas Local Government Code, as
amended, or by other statutes or ordinances.
Authority -- Substandard Housing
The Building and Standards Commission may hear cases regarding a substandard
structure if the structure is:
A. Dilapidated, substandard, or unfit for human habitation and a hazard to the
public health, safety, and welfare; or
B. Regardless of its structural condition, unoccupied by its owners, lessees, or
other invitees and is unsecured from unauthorized entry to the extent that it
could be entered or used by vagrants or other uninvited persons as a place of
harborage or could be entered or used by children; or
C. Boarded up, fenced, or otherwise secured in any manner i£
1. The building constitutes a danger to the public even though secured from
entry; or
2. The means used to secure the building are inadequate to prevent
unauthorized entry or use of the building in the manner described by
Subsection B above.
Rules Governing Proceedings
The Building and Standards Commission shall adopt rules to govern its
proceedings. The rules shall establish procedures for use in hearings, providing
ample opportunity for presentation of evidence and testimony by respondents or
persons opposing charges brought by the City or its officials relating to alleged
violations of ordinances.
Criteria for Determining Substandard Condition
A structure shall be considered substandard if:
A. It is in a condition such that it fails to comply with the minimum standards set
forth in the City 's ordinances, including but not limited to the adopted
building, electrical, plumbing, mechanical, and fire codes; and
B. Such condition exists to the extent that the life, health, property, or safety
of the public or its occupants is endangered.
Notice
A. Notice of all proceedings before the Commission shall be given:
1. By certified mail, return receipt requested, to the record owners of the
affected property, and each holder of a recorded lien against the affected
property, as shown by the records of the Office of the County Clerk of the
county in which the affected property is located if the address of the
lienholder can be ascertained from the deed of trust establishing the lien
and/or other applicable instruments on file in the Office of the County Clerk;
and
2. To all unknown owners, by posting a copy of the notice on the front door
of each improvement situated on the affected property or as close to the
front door as practicable.
B. The notice shall be mailed and posted on or before the 10th day before the
date of the hearing before the Commission and shall state the date, time, and
place of the hearing. The notice shall also include a statement that at the
hearing, the owner, lienholder, or mortgagee shall be required to submit
proof of the scope of any work that may be required to comply with
applicable ordinance(s) and the amount of time that such person alleges that
it will take to reasonably perform the work. In addition, the notice shall .
be published in a newspaper of general circulation in the City on one (1)
occasion on or before the I Oth day before the date fixed for the hearing.
Action; Time Frames
A. Commission Orders. After notice and hearing and upon finding that a
structure is substandard, the Commission may order any one (1) or more
of the following actions:
1. Order the repair of a substandard structure, within a fixed period as
provided in this Article and /or state law;
2. Order, in an appropriate case, the immediate removal of persons or
property found on private property, order entry on private property to
secure the removal if it is determined that conditions exist on the property
that constitute a violation of an ordinance, and/or order action to be
taken as necessary to remedy, alleviate, or remove any substandard
building found to exist;
3. If the structure is not vacated, secured, repaired, removed, or demolished,
or the occupants are not relocated with the time allotted by the
Commission, the City may vacate, secure, remove or demolish the
building or relocate the occupants at its own expense. The City may
assess the expenses on and have a lien against the property on which the
structure was located, unless it is a homestead as protected by the Texas
Constitution;
4. Issue orders or directives to any peace officer of the state, including a
sheriff or constable or the Chief of Police of the City , to enforce and
carry out the lawful orders or directives of the Commission; and
5. Determine the amount and duration of the civil penalty that may be
recovered by the City as authorized by Subchapter C of Chapter 54, Texas
Local Government Code, as amended. In assessing a civil penalty, the
Commission shall consider the severity of violations present, the history
of compliance of the property or the owner, and the efforts taken, if any,
to correct the violations.
B. Time Frames for Compliance. After making a finding that a building is
substandard, the Commission shall comply with the following time frames:
1. 30 -Day Time Period. Except as otherwise provided in this Article, the
Commission shall require the owner, lienholder, or mortgagee of a
substandard building to within thirty (30) days of the date of the hearing:
a. Secure the building from unauthorized entry; or
b. Repair, remove or demolish the building, unless the owner or
lienholder establishes at the hearing that the work cannot reasonably
be performed within thirty (30) days.
2. 30 to 90 -Day Time Period. If the Commission allows the owner,
lienholder, or mortgagee more than thirty (30) days to repair, remove,
or demolish the building, the Commission shall establish specific time
schedules for the commencement and performance of the work and shall
require the owner, lienholder or mortgagee to secure the property in a
reasonable manner from unauthorized entry while the work is being
performed, as determined at the hearing.
3. Time Period in Excess of 90 Days. The Commission may only allow
the owner, lienholder or mortgagee more than ninety (90) days to
repair, remove, or demolish the building or fully perform all work
required to comply with the order if the owner, lienholder, or
mortgagee:
a. Submits a detailed plan and time schedule for the work at the
Commission hearing; and
b. Establishes at the hearing that the work cannot reasonably be
completed within ninety (90) days because of the scope and
complexity of the work; and
c. Regularly submits progress reports to the City to demonstrate
compliance with the time schedules established by the Commission
for commencement and performance of the work as well as other
security requirements imposed by the Commission.
4. Bond Requirement: If the Commission allows the owner, lienholder, or
mortgagee more than ninety (90) days to complete any part of the
work required to repair, remove, or demolish the building, the order
of the Commission may require that the owner, lienholder, or mortgagee
or his designee appear and provide documentation that the Commission
determines necessary to demonstrate compliance with Commission
established time schedules. If the owner, lienholder or mortgagee owns
property, including structures or improvements on property, within the
City boundaries that exceeds $100,000 in total value, the Commission.
may require the owner, lienholder, or mortgagee to post a cash or surety
bond in an amount adequate to cover the cost of repairing, removing,
or demolishing the building or buildings as authorized by the provisions
of this Article. In lieu of a bond, the Commission may require the
owner, lienholder, or mortgagee to provide a letter of credit from a
financial institution or a guaranty from a third party as approved by the
City. The bond shall be posted, or the letter of credit or third party
guaranty provided not later than the thirty (30) days after the date the
Commission issues the order.
C. Burden of Proof. The owner, lienholder, or mortgagee shall have the burden
of proof to demonstrate the scope of any work that may be required to
comply with City ordinances and the time that it will take to reasonably
perform the work.
Fees for Appeals
A fee as described on the fee schedule is hereby required for appeals heard at
regularly scheduled meetings of the Building and Standards Commission. For appeals
that must be heard at a special called meeting of the Building and Standards
Commission, an additional fee as described on the fee schedule shall be
required. All fees shall be due and paid at the time an appeal is filed.
Failure to comply with Order
A. If a building is not vacated, secured, repaired, removed, or demolished, or the
occupants are not relocated within the time period ordered by the
Commission, the City may vacate, secure, remove, or demolish the building
or relocate the occupants at its own expense.
B. If the City incurs expenses under this Section, the City may assess the
expenses on, and upon doing so, the City shall have a lien against, the
property on which the building was located, unless the property is a
homestead as protected by the Texas Constitution. The lien is extinguished
if the property owner, lienholder, mortgagee or other person having an
interest in the legal title to the property reimburses the City for the expenses.
The lien arises and attaches to the property at the time the notice of the lien
is recorded and indexed in the office of the County Clerk of the county in
which the property is located. The notice must contain the name and address
of the owner if that information can be determined with a reasonable
effort, a legal description of the real property on which the building was
located, the amount of expenses incurred by the City, and the balance due.
Final Decision
A. A copy of the final decision of the Commission shall be mailed by
certified mail, return receipt requested, to all persons to whom notice was
sent under Section 10.08 of this Article. The copy shall be mailed promptly
after the decision of the Commission becomes final pursuant to the
requirements of this Article.
B. Within ten (10) calendar days after the date that the order is issued, the
Commission shall file a copy of the order in the office of the City Secretary.
Within ten (10) calendar days after the date the final decision of the
Commission is mailed, an abbreviated copy of the final decision shall be
published one (1) time in a newspaper of general circulation in the City,
and such notice shall include the street address or legal description of the
property; the date of the hearing, a brief statement indicating the results of
the order, and instructions stating where a complete copy of the order may be
obtained.
C. If no appeals are taken from the decision of the Commission within the
required period, the decision of the Commission is, in all things, final and
binding.
Judicial Review
A. Any person(s) jointly or severally aggrieved by any decision of the
Commission may present a petition to a district court, duly verified,
setting forth that the decision is illegal, in whole or in part, and specifying
the grounds of the illegality. The petition shall be presented within thirty
(30) calendar days after the date a copy of the final decision of the
Commission is personally delivered or mailed by first class mail, certified
return receipt requested, to all persons to whom notice is required to be
sent pursuant to Section 10.08 of this Article.
B. Proceedings shall not be stayed by an appeal and issuance of a writ of
certiorari and shall only be stayed by the grant of a restraining order or
injunction granted by the district court. The District Court's review shall be
limited to a hearing under the substantial evidence rule. Costs may not be
allowed against the Commission panel. If the decision of the Commission
panel is affirmed or not substantially reversed but only modified, the
District Court shall allow to the City all attorney's fees and other costs and
expenses incurred by it and shall enter a judgment for those items, which
may be entered against the property owners as well as all persons found to
be in occupation of the property subject to the proceedings before the
Commission panel.
Authority — Penalties
A. Civil Penalty. The Commission may assess a civil penalty against the
property owner for failure to repair, remove, or demolish a substandard
structure upon proof presented by the City that:
1. The property owner was notified of the requirements in the City's
substandard building ordinance along with notification of the owner's
need to comply; and
2. The owner continued to violate the ordinance after receiving notice.
B. Amount. A civil penalty imposed pursuant to this Section may not exceed
$1000 per day for each violation, unless the property is shown to be the
owner's legal homestead, in which case the penalty shall not exceed $10 per
day for each violation.
C. Criteria for Assessing Civil Penalty. In assessing a civil penalty, the
Commission shall consider the severity of violations present, the history of
compliance of the property or the owner, lienholder or mortgagee, and the
efforts taken, if any, to correct the violations.
D. Determination Final. A determination made under this Section is final and
binding and constitutes prima facie evidence of the penalty in any court of
competent jurisdiction in a civil suit brought by the City for final judgment
in accordance with the established penalty.
E. Enforcement of Civil Penalty. To enforce any civil penalty under this
Section, the City Secretary shall file with the district clerk of the county
in which the City is located, a certified copy of the order of the Commission
stating the amount and duration of the penalty. No other proof is required
for a district court to enter final judgment on the penalty.
F. Remedies Cumulative. The remedies authorized under this Article are
inclusive and not exclusive and shall in no way prevent the City from
exercising any and all other remedies at law to which it may been
titled, including proceedings under the jurisdiction of the Municipal Court
or injunctive or other civil relief as allowed by law.
Agenda No. 6
CITY COUNCIL MEMORANDUM
City Council Meeting: December 1.2, 2017
Department: Engineering
Subject: Resolution No. 17 -R -114 — A
Resolution by the City Council of the
City of Schertz, Texas, authorizing a
Sidewalk Easement Agreement on
property owned by Zeenat & Salim
Investments, Inc. at the corner of E.
Live Oak Road and Schertz
Parkway.
C• � 1
In February, 2017, . Ford Engineering was contracted to perform the engineering design for the
Schertz Parkway Reconstruction Project from Maske Road to E. Live Oak Road. After the initial
analysis it was determined that adding an additional lane on westbound E. Live Oak Road would
improve the serviceability of the intersection. Because of the proximity of Dietz Creek to the
south edge of E. Live Oak Road, it was determined that the majority of available space for the
widening is on the north side of E. Live Oak Road.
Because the widening required the curb to be shifted five feet to the north, there was no longer
room for the five foot sidewalk to be placed between the existing traffic control box and the curb.
This required Ford Engineering to realign the sidewalk around these existing elements, which
could only be accomplished by routing the sidewalk out of the right -of -way and into the adjacent
private property.
City Staff was able to have the owner, Zeenat & Salim Investments, Inc., sign the Sidewalk
Easement Agreement. The owner was amenable to the easement to allow for a continuous
sidewalk around their convenience store.
The Sidewalk Easement Agreement is a permanent easement.
Goal
Approval of Resolution Number 17-R-1 1.4 authorizing the City Manager to execute the
Sidewalk Easement Agreement on the Zeenat & Salim Investments, Inc. property.
Community :Benefit
The Sidewalk Easement Agreement will allow the City to realign the existing sidewalk onto
private property to make room for the new through /right turn lane on E. Live Oak Road being
constructed as part of the Schertz Reconstruction Project.
Summary of Recommended Action
City staff recommends approval of Resolution. Number 1.7 -R -1.14 authorizing the Sidewalk
Easement Agreement.
FISCAL IMPACT
There is no fiscal impact associated with this action.
RECOMMENDATION
Approval of Resolution No. 17 -R -114
ATTACHMENT(S)
• Resolution. No. 1.7 -R -114
• Sidewalk Easement Agreement
RESOLUTION NO. 17 -R -I14
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING AN EASEMENT AGREEMENT WITH ZEENAT & SALIM
INVESTMENTS, INC., FOR THE USE AND CONTROL OF THE CITY OF SCHERTZ
FOR THE CONSTRUCTION AND MAINTENANCE OF SIDEWALK FACILITIES,
AND OTHER MATTERS IN CONNECTION THEREWITH
WHEREAS, the City of Schertz (the "City ") desires to widen East Live Oak Road at the
intersection with Schertz Parkway in order to incorporate a dedicated turn lane; and
WHEREAS, there is not adequate width within the existing City right of way of East
Live Oak Road for a five foot sidewalk to be placed along the north side of the road; and
WHEREAS, the sidewalk is needed in order to provide a continuous pedestrian travel
way adjacent to City roadways; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
execute and accept, as the Grantee, the Sidewalk Easement Agreement attached hereto Exhibit
A.
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 the
Sidewalk Easement Agreement in substantially the form set forth on Exhibit A.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hereby declares that this Resolution would have been enacted without such invalid
provision.
Section 6. It is officially found, determined, and declared that the meeting at which.
this Resolution is adopted was open to the public and public notice of the time, place, and subject
1
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 12th day of December, 2017.
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
CITY OF SCHERTZ, TEXAS
Michael R. Carpenter, Mayor
N
EXHIBIT A
1110 MAY.- �.
50715776.2
EXHIBIT A
Sidewalk results in the removal of brush from the Easement, the Grantee shall
arrange for the disposal of the brush at the Grantee's sole cost and expense.
(3) The Easement herein granted shall run with the land and be binding upon and
inure to the benefit of the Grantor and the Grantee, and their respective
successors, assigns, and legal representatives, and shall be binding upon all parties
having or acquiring any right, title or interest in the Premises or any portion
thereof.
(4) Pursuant to the terms of this Section 4, Grantee is granted a temporary
construction easement over that portion of the remainder of Grantor's Premises
reasonably necessary for the purpose of maintaining, repairing, replacing,
operation, or altering the Sidewalk in any way. Should it become` necessary, at any
time subsequent to completion to the construction of the Sidewalk for the Grantee
to enter the Grantor's Premises for the purpose of said maintaining, repairing,
replacing, operation, or altering the Sidewalk the Grantee shall, after each entry
upon the Premises, leave the Premises substantially in the same condition that it
was in prior to such entry to the full extent reasonably practicable.
(5) Should any repair or replacement activities' become necessary as a result of the
acts, omissions, or negligence of the owner' or owners of the Premises or any of
their tenants, or any of such persons' respective agents, employees, licensees, or
invitees, then such owner or owners shall be responsible for promptly performing,
at their sole cost and expenses, all necessary repairs, and, if they fail to do so, the
Grantee (or its successors or assigns, as applicable) shall be entitled to do so and
to recover all reasonable costs therefore from the owner or owners (jointly and
severally) of the Premises.
(6) The Easement is further made subject to all validly existing easements, rights -of-
way, conditions, restrictions, covenants, or outstanding mineral or royalty
interests or reservations; of record, if any, in Guadalupe County, Texas as of the
date hereof.
(7) The Grantee may exercise its rights hereunder directly by its employees or by its
contractors or any duly authorized agent.
TO HAVE AND TO HOLD said Easement "together with all and singular the rights and
appurtenances thereto anywise belonging unto the Grantee, its successors and assigns, and the
Grantor does hereby bind itself, its successors and assigns, to specifically warrant and forever
defend the Easement unto' the Grantee, its successors- and assigns, against every - person
whomsoever lawfully claiming or to claim the same or any part thereof, by, through, or under the
Grantor, but not otherwise, "subject, however, to the matters set forth herein.
k-r
Executed to be effective as of fni eF r rl .1 201 _ (the `Effective Date').
[signatures and acknowledgements on the following pages )
505339543` -2-
This instrument has been executed as of the dates of the acknowledgments to be effective
as of the Effective Date.
GRANTOR:
By NrlT «L3 M n)uI ,0FA( -7s, _Tr,
Name: 7 "t� !{ t.' » ()--T 1 } L aP
Title: V L c -s i desk sk -
THE STATE OF�m
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COUNTY OF Tsu;
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This instrument was acknowledged before me on the e day of fe)a 0-, r v
201°2 by 5K c,uk,
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(SEAL);
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Notary Public in and for
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Agenda No. 7
0111 &WOU11104 1aU 1 DIU [o7 710 Rod 1
City Council Meeting: June 26, 2017
Department: City Manager
Subject: Resolution No. 17 -R -119 - Consideration
and/or action approving a Resolution
appointing and reappointing Directors of the
Tax Increment Reinvestment Zone Number
Two, City of Schertz and related matters in
connection therewith. (B. James)
On June 26, 2017 . City Council approved Resolution 1.7 -R -18 appointing John. Bierschwale, Bob
Cantu, Mayor Michael Carpenter, Chris Price, and Gary Inmon be reappointed and that P &Z
Chairperson Michael Dahle be appointed to replace former P &Z Chairperson David Richmond
to terms to the Tax Reinvestment Zone (TIRZ) Number Two (Sedona/Crossvine) for terms
through June 26, 2018.
As part of their December 5, 2017 . meeting, City Council discussed Council committee and
liaison assignments. As part that discussion it was decided that Councilmember Bert Crawford
would take Mayor Michael. Carpenter's place on the TIRZ Board. Resolution 1.7 -R -1.1.9 replaces
Mayor Michael Carpenter with Councilman Bert Crawford on the TIRZ Number Two
(Sedona /Crossvine) Board. His term will run through June 26, 2018.
Goal
Appoint of Councilman Bert Crawford to the TIRZ Number Two Board in Mayor Michael
Carpenter's place.
Community Benefit
Provides oversight of the Tax Increment Reinvestment Zone Number 2.
Summary of Recommended Action
Recommend approval of :Resolution 1.7 -R- 1.1.9.
FISCAL IMPACT
N/A
RECOMMENDATION
Approval of Resolution 1.7 -R -119 appointing Councilman Bert Crawford to Mayor Michael
Carpenter's place on the Tax Increment Reinvestment Zone Number 2 Board of Directors.
ATTACHMENT
Resolution 17 -R -1.1.9
RESOLUTION NO. 17 -R -119
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS APPOINTING A DIRECTOR OF REINVESTMENT
ZONE NUMBER TWO, CITY OF SCHERTZ, TEXAS, AND RELATED
MATTERS IN CONNECTION THEREWITH
WHEREAS, Reinvestment Zone Number Two, City of Schertz, Texas (the "Zone ") is
governed by a Board of Directors (the "Board ") consisting of eleven total directors (the
"Directors ");
WHEREAS, six Directors are appointed by the City of Schertz, two Directors are
appointed by Bexar county, and one Director is appointed by each of the San Antonio River
Authority, the State Representative for the Zone, and the State Senator for the Zone;
Whereas, Michael Carpenter is currently a Director of the Zone and was appointed by the
City of Schertz;
Whereas, the City Council desires to appoint Bert Crawford to the position currently held
by Michael Carpenter as a Director of the Zone;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
Section 1. The City Council hereby appoints Bert Crawford to fill the position
currently held by Michael Carpenter, with a term ending June 26, 2018. .
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 12th day of December, 2017
CITY OF SCHERTZ, TEXAS
Michael R. Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
Agenda No. 8
CITY COUNCIL MEMORANDUM
City Council Meeting: December 12, 2017
Department: Public Works — Waste Water
Subject: Resolution 17 -R -113 - Consideration and /or
action approving a Resolution authorizing the
City Manager to enter into an agreement with
Cibolo Creek Municipal Authority for the site
preparation and installation of a leased pre-
packaged sewer treatment plant to expand
waste water treatment capacity at the Woman
Hollering Treatment Plant.
BACKGROUND
On October 25, 2016 City Council authorized the City Manager to enter into a lease agreement for a pre-
packaged waste water treatment plant to double the capacity of the temporary Woman Hollering Creek
Treatment Plant (WHIP). The original WHTP temporary plant was installed in 2006 to service the area
now known as Crossvine until a permanent waste water treatment plant could be constructed on Trainer
Hale Road.
As a result of the increasing waste water demand being placed on the temporary plant from the growing
Crossvine development, it was determined that it was necessary to expand the capacity of the temporary
plant. This expansion would take the current 46,000 gallon a day plant to a 92,000 gallon a day capacity.
To install this pre - packaged plant, on December 13, 2016, the City of Schertz entered into an inter -local
agreement with the Cibolo Creek Municipal. Authority (CCMA) for them to perform the installation.
While this prep work was being performed, the City, CCMA and the developer continued working on
understanding the increase in waste water flows and if it was all from increased development or did we
have other issues such as an infiltration and inflow issue.
On January 11, 2017, Public Works crews inspecting the sewer system in the Crossvine found a faulty
pipe connection on an earlier installed sewer main. This faulty connection (a rolled gasket) was on a
section of main that was transecting a shallow ground water source that runs through this part of our
community. As a result of this rolled gasket, the ground water source was infiltrating the sewer main with
approximately 10 -15 gallons per minute of fresh ground water, or approximately 17- 18,000 gallons of
water a day being sent to the 46,000 gallon a day treatment plant (37% of the capacity approximately).
Once this sewer main was repaired, the immediate and pressing need to add additional capacity to the
WHTP was greatly reduced. In a follow up meeting, it was agreed that planning for the new expansion
would continue by the design engineers, however no steps to install the new section of plant would be
taken without both sides agreeing to the install.
As CCMA has continued sharing the daily waste water flows to the WHTP, we have agreed it is time to
go ahead and move forward installing the additional section of temporary treatment plant. The plant that
we agreed to lease is still waiting to be installed (we do not pay lease payments until it is installed) and
CCMA is finalizing the details of the construction necessary to put it in place.
The inter -local agreement approved on December 13, 2016 expired on April 30, 2017 so tonight we are
asking Council to again authorize the City Manager to enter into an agreement with CCMA for the
installation and operation of a second temporary waste -water treatment plant at the Woman Hollering
Treatment Plant site.
Goal
To provide safe, efficient and compliant waste water treatment for the Crossvine Development through the
use and expansion of a temporary pre - packaged waste water treatment plant.
Summary of Recommended Action
Staff recommends approval of the attached Resolution authorizing the City Manager to enter into this
Interlocal Agreement with the Cibolo Creek Municipal Authority for the site work and improvements
necessary for the successful installation of the leased pre - packaged waste water treatment plant serving the
Crossvine development.
The fiscal impact of this work by CCMA will be approximately $250,000 to $300,000. Although this cost
was not budgeted, the expansion of this plant is in the Waste Water Capital Improvement Plan and dollars
from impact fees will be used to pay for this installation. Once the final dollar amounts are known, staff
will return to City Council for a budget adjustment to utilize these funds for this project.
ATTACHMENT
Resolution No. 17 -R -11.3
Interlocal Agreement between the City of Schertz and Cibolo Creek Municipal Authority
RESOLUTION NO. 17 -R -113
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER
INTO AN AGREEMENT WITH CIBOLO CREEK MUNICIPAL
AUTHORITY FOR THE INSTALLATION OF A LEASED PRE-
PACKAGED SEWER TREATMENT PLANT TO EXPAND WASTE
WATER TREATMENT CAPACITY AT THE WOMAN HOLLERING
TREATMENT PLANT, AND OTHER MATTERS IN CONNECTION
THEREWITH
NOW THEREFORE, WHEREAS, the City of Schertz has an executed agreement with
the developers of the CrossVine development to provide waste water treatment capacity; and
WHEREAS, the City of Schertz and it's waste water treatment partner, Cibolo Creek
Municipal Authority have determined that the current treatment plant is approaching its
maximum treatment capacity; and
WHEREAS, the City of Schertz has entered into a lease agreement with A.U.C. Group
LP for a pre- packaged sewer treatment plant that will double the capacity of the current plant;
and
WHEREAS, engineering, site work and infrastructure installation is necessary to prepare
for the installation of the leased pre- packaged sewer treatment plant; and
WHEREAS, Cibolo Creek Municipal. Authority, the operator of the current Woman.
Hollering Treatment Plant is willing and prepared to conduct all necessary preparatory work for
this installation in exchange for the City of Schertz reimbursing all costs incurred from this
work; 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 into the
interlocal agreement attached in Exhibit A.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hereby declares that this Resolution would have been enacted without such invalid
provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND ADOPTED, this 12th day of December, 2017.
CITY OF SCHERTZ, TEXAS
Mayor, Michael R. Carpenter
City Secretary, Brenda Dennis
(CITY SEAL)
EXHIBIT A
111211 W " MOM
50448599.1 A -�.
This Interlocal Agreement (the "Agreement ") made and entered into as of this the
day of , 2017 (the `Effective Date "), by and between Cibolo Creek Municipal
Authority, a conservation and reclamation district created and operating pursuant to Article XVI,
§ 59 of the Texas Constitution (the "Authority "), and the City of Schertz, Texas, a home -rule
municipality operating pursuant to the Constitution and laws of the State of Texas (the "City "),
for the expansion of the Woman Hollering Treatment Plant ( "WHTP "). The Authority and the
City are collectively referred to herein as the "Parties."
RECITALS
WHEREAS, the Authority is a regional agency that owns and operates wastewater
treatment and reclamation facilities; and
WHEREAS, the Authority is the regional agency designated to provide regional
wastewater service in the Cibolo Creek Watershed in the vicinity of the City; and
WHEREAS, on February 15, 1985, the Authority and the City entered into a "Contract
for Sewerage Service" pursuant to which the Authority provides wastewater collection,
treatment, and disposal services to the City; and
WHEREAS, on June 18, 2012, the Authority and the City entered into an Interlocal
Agreement pursuant to which the Authority has operational responsibility over WHTP owned by
the City and the City pays the Authority for its operation of WHTP (the "Operation Agreement ");
and
WHEREAS, the Texas Commission on Environmental Quality ( "TCEQ ") issued a new
TPDES permit for WHTP on October 13, 2015, TPDES Permit. No. WQ0015371001, that
includes an Interim Phase and a Final Phase that allows for expansion of WHTP from 0.046
millions of gallons per day ( "MGD ") to 0.092 MGD; and
WHEREAS, due to the growth within the vicinity of the City and the Authority's service
area, the Parties desire to pursue expansion of WHTP to the Final Phase of 0.092 MGD (the
`Expansion "); and
WHEREAS, the City desires the Authority to undertake the efforts for planning,
designing, and constructing the Expansion, while the City commits to pay all costs, fees, and
expenses associated with the Expansion;
WHEREAS, the Authority and the City, exercising their respective mutual authorities,
wish to enter into this Agreement to set forth the terms and conditions for the Authority to pursue
planning, design and construction of the Expansion and for the City to pay for all costs, fees, and
expenses for and associated with the Expansion; and
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WHEREAS, pursuant to Chapter 791, Texas Government Code, and the general and
special laws of the State of Texas, the Parties are authorized to enter into this Agreement; and
WHEREAS, this Agreement shall have no effect or implication on the Contract for
Sewerage Services or the Operation Agreement and such contract and agreement shall remain in
force and effect without regard to the effectiveness or termination of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the sufficiency of which are hereby conclusively acknowledged, and subject to the
terms and conditions hereinafter set forth, the Authority and the City mutually undertake,
promise, and agree as follows:
AGREEMENT
Section 1. Definitions.
The following terms and expressions as hereinafter used in this Agreement, unless the context
clearly shows otherwise, shall have the following meanings:
Authority. The Cibolo Creek Municipal Authority.
City. The City of Schertz, Texas.
Effective Date. The day and year set forth in the preamble of the Agreement.
Expansion. The expansion of the WHTP from 0.046 MGD to 0.092 MGD in accordance with
the TPDES Permit.
MGD. Millions of gallons per day.
Operation Agreement. That certain agreement entered into on June 18, 2012 by and between the
Authority and the City regarding the operation of the WHTP.
TCE . The Texas Commission on Environmental Quality, or its successor agency.
TPDES Permit. The Texas Pollutant Discharge Elimination System (TPDES) Permit
No. WQ0015371001, as issued by TCEQ to the City and the Authority for the WHTP and
included as Exhibit A, attached hereto and incorporated herein.
WHTP. The Woman Hollering Treatment Plant and any additions, improvements or expansions,
owned by the City. This plant was formerly known as the Sedona Wastewater Treatment Plant
and previously permitted under TPDES Permit No. WQ0014667001.
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Section 2. Authority Obligations for Expansion. (a) The Authority shall be solely
responsible for the planning, design and construction of the Expansion. Included in Exhibit B is
as Technical Memorandum prepared by Alan Plummer Associates, Inc. that identifies and
evaluates two alternatives for completing the Expansion. The Authority has selected Alternative
I for the Expansion that provides for adding to the WHTP a parallel package treatment plant
similar to the existing treatment plant. A cost estimate for Alternative I is included in Exhibit B.
(b) It is expressly understood and agreed that any obligations on the part of the Authority
to plan, design and construct the Expansion shall be conditioned upon the prompt and timely
payment of any and all invoices submitted by the Authority to the City for payment as provided
in Section 4 below. Time is of the essence for the performance of this Agreement and the receipt
of invoices and payments for obligations hereunder. Failure to timely pay the Authority any
invoices associated with the Expansion will entitle the Authority to suspend performance of this
Agreement until payment for past due invoices are received by the Authority.
Section 3. City Obligations for Expansion. City agrees to pay the Authority for any
and all costs, fees and expenses associated with the Expansion. The City shall submit payment
for Expansion invoices to the Authority within thirty (30) days of receiving each invoice. A cost
estimate of the Expansion is included in Exhibit B.
Section 4. Source of Payment for Expansion. (a) The City represents and covenants
that all payments to be made by it under this Agreement shall constitute reasonable and necessary
`'operating expenses" of the City's utility system, as defined in Section 1502.056, Texas
Government Code. The City further represents that its governing body has determined that the
utility services to be provided by the Expansion of WHTP are absolutely necessary and essential
to treat the wastewater of the City, as contemplated by this Agreement.
(b) The City agrees throughout the ten-n of this Agreement to implement such rates and
charges for retail wastewater service to be supplied by its wastewater system as will produce
gross revenues at all times during the term of this Agreement in an amount at least equal to all of
the expenses of operation and maintenance of the City's system, and all other contract or revenue
bond indebtedness or obligations of the City, including specifically payment for the Expansion
under this Agreement.
Section 5. Coordination on Expansion. During the performance of this Agreement, the
Authority will regularly coordinate with the City to ensure that the City is receiving timely
progress reports and information on status of the Expansion.
Section 6. Term of Agreement. This Agreement shall commence on the Effective Date
and shall continue in force and effect until such time that the Expansion is completed, or
September 30, 2018, whichever occurs first. Notwithstanding, either Party may terminate this
Agreement upon at least sixty (60) days written notice to the other Party. Upon termination, the
City will be liable for the payment of any expenditures made pursuant to this Agreement on or
before the date on which termination is effective.
Section 7. Amendment and Modification. This Agreement shall not be amended
except in writing by both Parties hereto. No change, amendment, or modification of this
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Agreement shall be made or be effective which will affect adversely the prompt payment when
due of all money required to be paid by the City under the terms of this Agreement.
Section 8. Force Ma jeure. Notwithstanding anything herein to the contrary, the Parties
hereto shall not be under any liability or be deemed to be in default with respect to their
obligations under this Agreement for any failure to perform or for delay in performing such
obligations hereunder (except for the obligation to pay money) where such failure or delay is due
to force majeure, while and to the extent that such performance is prevented by such cause. The
term force majeure means acts of God, fire, storm, flood, drought, war, terrorist activity, riots,
sabotage, strikes or other differences with labor (whether or not within the power of the Parties to
settle same), decrees or orders of the courts or other governmental authority, or other similar or
dissimilar causes not within the reasonable control of such party and not due to negligence of
such party. The Parties shall use due diligence to resume performance of any obligation
suspended by force majeure at the earliest practicable time.
Section 9. Regulatory Bodies and Laws. This Agreement is subject to all applicable
Federal and State Laws and any applicable permits, ordinances, rules, orders, and regulations of
any local, state or federal governmental authority having or asserting jurisdiction, but nothing
contained herein shall be construed as a waiver of any right to question or contest any such law,
ordinance, order, rule, or regulation in any forum, having jurisdiction.
Section 10. Notices. Unless otherwise provided herein, any notice, communication,
request, reply, or advice (herein severally and collectively, for convenience, called "Notice ")
herein provided or permitted to be given, made, or accepted by any Party to any other Party must
be in writing and may be given or be served by depositing the same in the United States mail
postpaid and registered or certified and addressed to the Party to be notified, with return receipt
requested, or by delivering the same to an officer of such Party, or by electronic mail, addressed
to the Party to be notified at the email address provided below. Notice deposited in the mail in
the manner hereinabove described shall be conclusively deemed to be effective, unless otherwise
stated herein, from and after the expiration of three (3) days after it is so deposited. Notice given
in any other manner shall be effective only if and when received by the Party to be notified. For
the purposes of Notice, the addresses and contact information of the Parties shall, until changed
as hereinafter provided, be as follows:
If to the Authority, to:
Cibolo Creek Municipal Authority
Attn: General Manager
P.O. Box 930
100 Dietz Road
Schertz, Texas 78154
email: cellis @ecmatx.org
If to the City, to:
City of Schertz, Texas
Attn: City Manager
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1400 Schertz Parkway
Schertz, TX 78154
email: jkessel @schertz.com
The Parties hereto shall have the right from time to time and at any time to change their
respective Notice information with at least fifteen (15) days written notice to the other Parties
hereto.
Section 11. Severability. The Parties hereto specifically agree that in case any one or
more of the sections, subsections, provisions, clauses, or words of this Agreement or the
application of such sections, subsections, provisions, clauses, or words to any situation or
circumstance should be, or should be held to be, for any reason, invalid or unconstitutional, under
the laws or constitutions of the State or the United States of America, or in contravention of any
such laws or constitutions, such invalidity, unconstitutionality, or contravention shall not affect
any other sections, subsections, provisions, clauses, or words of this Agreement or the
application of such sections, subsections, provisions, clauses, or words to any other situation or
circumstance, and it is intended that this Agreement shall be severable and shall be construed and
applied as if any such invalid or unconstitutional section, subsection, provision, clause, or word
had not been included herein, and the rights and obligations of the Parties hereto shall be
construed and remain in force accordingly.
Section 12. Remedies Upon Default. It is not intended hereby to specify (and this
Agreement shall not be considered as specifying) an exclusive remedy for any default, but all
such other remedies existing at law or in equity may be availed of by any Party hereto and shall
be cumulative. Notwithstanding anything to the contrary contained in this Agreement, any right
or remedy or any default hereunder, except the right of the Authority to receive payment for the
Expansion, which shall never be determined to be waived, shall be deemed to be conclusively
waived unless asserted by a proper proceeding at law or in equity within two (2) years plus one
(1) day after the occurrence of such default. No waiver or waivers of any breach or default (or
any breaches or defaults) by any Party hereto or of the performance by any other Party of any
duty or obligation hereunder shall be deemed a waiver thereof in the future, nor shall any such
waiver or waivers be deemed or construed to be a waiver of subsequent breaches or defaults of
any kind, character or description, under any circumstances.
Section 13. Indemnification. IN ADDITION TO THE OTHER REMEDIES
AFFORDED TO THE AUTHORITY IN THIS AGREEMENT, AND ONLY TO THE EXTENT
PERMITTED BY LAW, CITY SHALL RELEASE, INDEMNIFY, DEFEND AND HOLD
HARMLESS THE AUTHORITY, ITS OFFICERS, DIRECTORS, EMPLOYEES,
CONTRACTORS AND AGENTS (THE "INDEMNIFIED PARTIES") FOR, FROM AND
AGAINST ANY AND ALL LOSS, COST, EXPENSE, CLAIM, ACTION, PROCEEDING
BEFORE ANY GOVERNMENTAL AUTHORITY OR ARBITRAL TRIBUNAL, DEMAND,
DAMAGE, FINE, LIABILITY, OBLIGATION OR PENALTY, LIEN, CAUSE OF ACTION,
SUIT AND EXPENSE (INCLUDING, WITHOUT LIMITATION, COURT COSTS,
REASONABLE ATTORNEYS' FEES AND COSTS OF INVESTIGATION, REMOVAL AND
REMEDIATION, AND GOVERNMENTAL OVERSIGHT COSTS), ENVIRONMENTAL OR
OTHERWISE OF ANY NATURE, KIND OR DESCRIPTION OF ANY PERSON OR ENTITY
DIRECTLY OR INDIRECTLY ARISING OUT OF, RESULTING FROM, OR RELATED TO
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(IN WHOLE OR IN PART) 1) THE CITY'S PERFORMANCE OR OMISSION OF ITS
OBLIGATIONS PURSUANT TO THIS AGREEMENT, AND 2) THE AUTHORITY'S
PERFORMANCE OF ITS OBLIGATIONS PURSUANT TO THIS AGREEMENT, EXCEPT
TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT
OF ANY ONE OR MORE OF THE INDEMNIFIED PARTIES.
Section 14. Venue. All amounts due under this Agreement, including, but not limited to,
payments due under this Agreement or damages for the breach of this Agreement, shall be due in
Guadalupe County, Texas, which is the County in which the principal administrative offices of
the Authority and the City are located and the County where this Agreement is performable. In
the event that any legal proceeding is brought to enforce this Agreement or any provision hereof,
the same shall be brought in the State District Court of Guadalupe County, Texas. The Parties
agree to submit to the jurisdiction of said court.
Section 15. Sole Agreement. This Agreement constitutes the sole and only agreement
of the Authority and the City and supersedes any prior understanding or oral or written
agreements between the Authority and the City with respect to the subject matter of this
Agreement.
Section 16. No 'Third Party Beneficiaries. This Agreement shall inure only to the
benefit of the Parties hereto and third persons not privy hereto shall not, in any form or manner,
be considered a third -party beneficiary of this Agreement.
Section 17. Succession and Assignment. This Agreement is binding upon and shall
inure to the benefit of the Parties, their heirs, successors and assigns. This Agreement may not be
assigned by any Party hereto without the prior written notice to, and prior written approval by,
the other Party.
Section 18. Recitals and Exhibits Incorporated. The recitals contained in the
preamble hereof and the exhibits hereto are hereby found to be true, and such recitals and
exhibits are hereby made a part of this Agreement for all purposes.
Section 19. Authority to Execute. Each person signing on behalf of the Parties hereby
confirms that they have the authority to execute this Agreement on behalf of the Party indicated
by their signature.
IN WITNESS WHEREOF, the Parties hereto acting under authority of their respective
governing bodies have caused this Agreement to be duly executed in several counterparts, each
of which shall constitute an original, all as of the day and year first above written, which is the
Effective Date of this Agreement.
(Signatures on J611owing pages)
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By: /1-1-17
, Board President Date
ATTEST:
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Date
ATTEST:
STATE OF TEXAS §
COUNTY OF GUADALUPE §
This instrument was acknowledged before me on this day of 1
2017, by of the City of Schertz, a home-rule municipality and
political subdivision of the State of Texas, on behalf of said municipality.
Notary Public, State of Texas
Printed Name of Notary:
My Commission Expires:
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Agenda No. 9
CITY COUNCIL MEMORANDUM
City Council Meeting: 12/12/2017
Department: EMS
Subject: Resolution No. 17-R-115
Authorizing the City Manager to
enter into an agreement with Stryker
EMS Equipment for the purchase of
five (5) stretchers, refurbish three (3)
current stretchers and add service
agreements on all stretchers and
stretcher loading systems
Background
Schertz EMS currently uses Stryker Power -Pro Stretchers in all of our ambulances.
The stretcher manufacturer recommends replacing stretchers after seven (7) years of
service. This is our current stretcher status:
Stretcher
Date Purchased
Stretcher age
9575
12/17/2003
14 years
9576
12/17/2003
14 years
9215
5/1/2004
13 years
9652
10/1/2005
12 years
9959
2/1/2006
11 years
9748
6/19/2007
10 years
9751
6/19/2007
10 years
9749
6/19/2007
10 years
0310
2/16/2009
8 years
0311
2/16/2009
8 years
1378
4/27/2015
2 years
1379
4/27/2015
2 years
1380
4/27/2015
2 years
Our plan was to purchase two (2) new stretchers every year to rotate out older
stretchers. Currently, stretchers cost $1.7,000.
Stryker EMS Equipment currently has a five (5) year no interest leasing promotion,
which if approved would have our stretcher status look like this:
Stretcher
Date Purchased
Stretcher age
New
12/12/2017
New
Purchase w/ 7 year service plan
New
12/12/2017
New
Purchase w/ 7 year service plan
New
12/12/2017
New
Purchase w/ 7 year service plan
New
12/12/2017
New
Purchase w/ 7 year service plan
New
12/12/2017
New
Purchase w/ 7 year service plan
1379
4/27/2015
2 Years
Upgrade to XPS w/ 5 year service plan
1378
4/27/2015
2 Years
Upgrade to XPS w/ 5 year service plan
1380
4/27/2015
2 Years
Upgrade to XPS w/ 5 year service plan
0310
2/16/2009
8 years
reserve ambulance w/ 2 year service plan
0311
2/16/2009
8 years
back up w/ 2 year service plan
Also included in the five year lease is refurbishing three of our current stretchers
(1.378, 1379, 1.380) and adding an annual preventive maintenance plan to assure
proper maintenance is obtained on every stretcher and stretcher loading systems.
Lastly, this includes a trade -in for five (5) of our oldest stretchers ($2,500 each) for a
total trade in value of $12,500.
Future stretchers would be purchased as a part of new ambulance purchases to avoid
retention of stretchers beyond their recommended life span.
There are two manufacturers of ambulance stretchers and associated equipment in the
country. When the City originally selected Stryker, a competitive bid process was
followed. Both manufacturers responded to the bid process and Stryker was chosen .
based upon quality, safety features and price. Since that time, when we have made
large purchases, both companies have been evaluated against each other and Stryker's
continued quality and innovation have led EMS to not change over to the other
company's products. These purchases are being done in anticipation of implementing
the stretcher auto -load system. Both companies have an auto -load system, however,
Stryker's system is compatible with our current stretcher fleet which will allow us to
implement this new safety system at a much lower cost because we do not have to
completely replace all of our current ambulance stretchers. For this reason, pricing
was obtained from Stryker EMS Equipment as a sole source provider.
Goal
To authorize the City Manager to execute the contract with Stryker EMS Equipment for the
purchase of five (5) stretchers, upgrade three (3) current stretchers and implementing service
agreements on all stretchers (10) and all Stretcher Loading Systems (6).
Fiscal Impact
The purchase of these stretchers, upgrades and service agreements will be funded
through the EMS Department from account 280 - 581800. The annual lease payment
will be $34,315.08 for five (5) years.
The total purchase amount for the five (5) stretchers, upgrades and service
agreements is $171,575.37.
Recommendation
Approval of Resolution 17 -R -115
Attachment(s)
Resolution 17 -R -115
Stryker Lease Agreement
Stryker Maintenance Agreement
RESOLUTION NO. 17 -R -115
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER
INTO AN AGREEMENT FOR THE PURCHASE OF FIVE (5)
STRETCHERS, UPGRADE THREE (3) CURRENT STRETCHERS AND
ADD SERVICE AGREEMENTS ON ALL STRETCHERS.
WHEREAS, Schertz EMS has a need to purchase five (5) ambulance stretchers and to
refurbish three (3) ambulance stretchers ; and
WHEREAS, Schertz EMS has a need to implement a service agreement on all stretchers;
and
WHEREAS, Schertz EMS has chosen Stryker EMS Equipment for the purchase of five
(5) stretchers, the refurbishment of three (3) current stretchers and the adding of service
agreements on all stretchers; and
WHEREAS, pricing was obtain from Stryker EMS Equipment as a sole source provider;
and
WHEREAS, this sole source procurement is allowable under Section 252.022 "General
Exemptions" section 7 sub - section D for an expenditure for a procurement of items that are
available from only one source, including captive replacement parts or components for
equipment; and
WHEREAS, the City of Schertz will fund the purchase of the stretchers, upgrades and
service agreements through the EMS enterprise fund.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
Section 1. The City Council hereby authorizes the City Manager to accept the quote
attached in Exhibit A and enter into a five year lease with Stryker EMS Equipment in the amount
of $34,315.08 annually for five (5) years for a total of $171,575.37.
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 12th day of December, 2017.
CITY OF SCHERTZ, TEXAS
Michael R. Carpenter, Mayor
Brenda Dennis, City Secretary
(CITY SEAL)
EXHIBIT A
M.
50234811.1 A -�.
Stryker Flex Financial, a division of Stryker Sales Corporation
1901 Romence Road Parkway
Portage, MI 49002
t: 1- 888 - 308 -3146 f: 877 - 204 -1332
www.stryker.com
Date: October 17, 2017
CITY OF SCHERTZ, TEXAS
PO BOX 1
SCHERTZ, Texas 78154 -1406
stryKer
FLE�FINANCIAL
RE: Reference No: 0110033813
Thank you for choosing Stryker Flex Financial for your equipment financing needs. Enclosed please find the financing documents necessary to enter into the financing
arrangement. Once all of the documents are completed, properly executed and returned to us, we will issue an order for release of the financed equipment.
PLEASE COMPLETE. ALL ENCLOSED DOCUMENTS TO EXPEDITE THE SHIPMENT OF YOUR ORDER.
Short Form Lease Agreement
Exhibit A - Detail of Equipment
Insurance Authorization and Verification
State and Local Government Rider
"Conditions of Approval: Insurance Authorization and Verification, State and Local Government Rider is required, Please Provide a Valid Tax Exempt Certificate.
- PLEASE PROVIDE THE FOLLOWING WITH THE COMPLETED DOCUMENTS:
Federal Tax ID Number:
Purchase Order Number:
Phone Number:
AP Address:
Contact Name:
Email Address:
Please fax completed documents to (877) 204 -1332. Return Original documents to 1901 Romence Road Parkway Portage, MI 49002 (using Fed -Ex Shipping
ID# 612- 309469)
Your personal documentation specialist is Michelle Warren and can be reached at 269 -389 -1909 or by email michelle.warrengstryker.com for any questions regarding
these documents.
The financing proposal evidenced by these documents is valid through the last business day of December, 2017
Sincerely,
Stryker Flex Financial
Notice: To help the government fight the funding of terrorism and money laundering activities, U.S. Federal law requires financial institutions to obtain,
verify and record information that identities each person (individuals or businesses) who opens an account. What this means for you: When you open an
account or add any additional service, we will ask you for your name, address, federal employer identification number and other information that will allow
us to identify you. We may also ask to see other identifying documents. For your records, the federal employer identification number for Stryker Flex
Financial, a Division of Stryker Sales Corporation is 38- 2902424.
Agreement No: 011.0033813
Owner ( "we" or "us ") :
Stryker Flex Financial, a division of Stryker Sales Corporation
1901 Romence Road Parkway
Portage, MI 49002
stryker
FLE, FINANCIAL
Short Form Lease Agreement No. 011003381.3
Customer Name and Address ( "You" and "Your "): Equipment Location: 1400 SCFIERTZ PKWY, SCFIERTZ, Texas 78154 -1634
CITY OF SCFIERTZ, TEXAS Supplier: Stryker Sales Corporation, 3800 E. Centre Avenue, Portage, MI 49002
PO BOX 1 Equipment Description: (see attached Exhibit A which is a part of this Agreement.)
SCHERTZ, Texas 78154 -1406
PAYMENT INFORMATION
# of Lease
Payments
Payment
Frequency
Lease payment
Terms of Agreement in Months: 49
Equipment Purchase Option: $1 Buyout Option
Equipment Purchase Option shall be FMV unless another option is stated above.
5
Annual
$34,315.08 (First payment due 30 days after Agreement
is commenced), (Plus applicable Sales /Use Taxes - See
"Taxes" section below)
Security First Period Other Total Payment
Deposit Payment Enclosed
$0.00 + $0.00 + $ 0.00 = $ 0.00
1. Lease: You ( "Customer ") agree to lease from us ( "Owner ") the equipment (including software and /or software license fees ( "Software "), if any, "Equipment ") listed aboveand
on any attached schedule in accordance with the terms of this Agreement (this "Agreement "). This Agreement starts on the day the Equipment is delivered to you
( "Commencement Date ") and continues for the number of months described above (the "Term "). The Lease Payments ( "Payments ") shall be payable beginning on the
Commencement Date or any later date we designate and thereafter until all fully paid. Your obligations under this Agreement ( "Obligations ") are absolute, unconditional,
and are not subject to cancellation, defense, recoupment, reduction, setoff or counterclaim. If a Payment is not made when due, you will pay us a late charge of 5% for each
Payment or $10.00, whichever is greater. We may charge you a fee of $55.00 for any check that is returned. You authorize us to adjust the Payments at any time if taxes included
in the Payments differ from our estimate. You agree that the Payments were calculated by us based, in part, on an interest rate equivalent as quoted on the Intercontinental
Exchange website, at https:// www .theice.com/marketdata/reports /180, under the USD Rates 1100 Series, that would have a repayment terns equivalent to the Term (or an
interpolated rate if a like -term is not available) as reasonably determined by us and in the event the Term of this Agreement starts more than 30 days after we send this Agreement
to you, we may adjust the Payments once to compensate us, in good faith, for any increase in such rate. You shall be deemed to have accepted the Equipment for lease hereunder
upon the date that is ten (10) days after it is shipped to you by the Supplier and, at our request, you shall confirm for us such acceptance. No acceptance of any item of Equipment
may be revoked by you.
2. Title and Laws: Unless you have a $1.00 purchase option, we own the Equipment and you have the right to use the Equipment during the Term, provided you comply withthe
terms of this Agreement. If you have a $1.00 purchase option or this Agreement is deemed to be a security agreement, you grant us a security interest in the Equipment and all
proceeds therefrom, and authorize us to file financing statements on your behalf. You agree not to permit any lien, claim or encumbrance to be placed upon the Equipment. You
shall comply with all applicable laws, rules and regulations and manufacturer's specifications and instructions concerning the operation, ownership, use and/or possession of the
Equipment.
3. Equipment Use, Maintenance and Warranties: Any Assignee (as defined below) is leasing the Equipment to you "AS -IS" AND MAKES NO
WARRANTIES,EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. You must, at
your cost, keepthe Equipment in good working condition. If Payments include maintenance and /or service costs, you agree that (i) no Assignee is responsible to provide the
maintenance or service, (ii) you will make all maintenance and service related claims to the persons providing the maintenance, service or warranty, and (iii) any maintenance,
warranty or service claims will not impact your Obligations. The Equipment cannot be moved from the location above without our prior written consent. STRYKER SALES
CORPORATION (INCLUDING STRYKER FLEX FINANCIAL, ITS DIVISION) MAKES NO IMPLIED WARRANTIES OF MERCHANTABILITY
ORFITNESS FOR A PARTICULAR PURPOSE REGARDING ANY EQUIPMENT. This Agreement will not impair any express warrantees or indemnifications or
other obligations of Stryker Corporation or any of its subsidiaries to you regarding the Equipment and we hereby assign all of our rights in any Equipment warrantees
to you.
4. Assignment: You agree not to transfer, sell, sublease, assign, pledge or encumber the Equipment or any rights under this Agreement without our prior written consent,which
consent shall not be unreasonably withheld, and if you do, even with our consent, you will still be fully responsible for all your Obligations. You shall provide us with at least 45
days' prior written notice of any change to your principal place of business, organization or incorporation. You agree that we may, without notice to you, sell, assign, or transfer
( "Transfer ") this Agreement to a third party (each, an "Assignee "), and each Assignee will have our Transferred rights, but none of our obligations, and such rights will not be
subject to any claims, recoupment, defenses, or setoffs that you may have against us or any supplier even though an Assignee may continue to bill and collect all of your
Obligations in the name of "Stryker Flex Financial ".
5. Risk of Loss, Insurance and Reimbursement: Effective upon delivery to you and continuing until the Equipment is returned to us in accordance with the terms of
thisAgreement, you shall bear all risk of Equipment loss or damage. If any such loss or damage occurs you still must satisfy all of your Obligations. You will (i) keep the
Equipment insured against all risks of loss or damage for an amount equal to its replacement cost, (ii) list us as the insurance sole loss payee and (iii) give us written proof of the
insurance. If you do not provide such insurance, we have the right, without obligation, to obtain such insurance and add an insurance fee (which may include a profit) to the
amount due from you. You will obtain and maintain comprehensive public liability insurance naming us as an additional insured with coverages and amounts acceptable to us. To
the extent not expressly prohibited by applicable law, you will reimburse and defend us, including each Assignee for and against any losses, injuries, damages, liabilities,
expenses, claims or legal proceedings asserted against or incurred by us, including any Assignee, relating to the Equipment and which relate to or arise out of your act or omission
or the act or omission of your agents or employees or others (excluding us) with access to the Equipment. The terms of this paragraph will continue after the termination,
cancellation or expiration of this Agreement.
6. Taxes: You agree to pay when due, either directly or as reimbursement to us, all taxes (i.e., sales, use and personal property) and charges in connection with ownership anduse
of the Equipment. We may charge you a processing fee for administering property tax filings. To the extent not expressly prohibited by applicable law, you will indemnify us on an
after -tax basis, on demand, against the loss or unavailability of any of our anticipated equipment ownership tax benefits caused by your act or omission.
7. Default Remedies: You are in default under this Agreement if: a) you fail to pay a Payment or any other amount when due; or b) you breach any other obligation underthis
Agreement or any other agreement with us; or c) your principal owner or any guarantor of this Agreement dies; d) you or any guarantor dissolves, ceases to do business as a going
concern, becomes insolvent, bankrupt, merges, or is sold; or e) You or any guarantor fails to pay any other material obligation owed to us or any of our affiliates. Upon default, we
may: a) declare the entire balance of unpaid Payments for the full Term immediately due and payable; b) sue you for and receive the total amount due plus the Equipment's
anticipated end -of -Term fair market value ( "FMV ") or fixed price purchase option (the "Residual ") with future Payments and Residual discounted to the date of default at the
lesser of (i) a per annum interest rate equivalent to that of a U.S. Treasury constant maturity obligation (as reported by the U.S. Treasury Department) that would have a repayment
term equal to the remaining Term, all as reasonably determined by us; or (ii) 3% per annum, but only to the extent permitted by law; c) charge you interest on all monies due at the
rate of 18% per year from the date of default until paid; and/or d) require you to immediately return the Equipment to us or we may peaceably repossess it. Upon default, you will
also pay all expenses including but not limited to reasonable attorneys fees, legal costs, cost of storage and shipping incurred by us in the enforcement and attempted enforcement
Agreement #0110033813
stryker
FLE, FINANCIAL
of any remedies under this Agreement. Any return or repossession will not be considered an Agreement termination or cancellation. If the Equipment is returned or repossessed
we may sell or re -rent the Equipment at terms we determine, at one or more public or private sales, with or without notice to you, and apply the net proceeds (after deducting any
related expenses) to your obligations. You remain liable for any deficiency with any excess being retained by us.
8. End of term: You will give us at least 90 days but not more than 180 days written notice (to our address above) before the initial Term (or any renewal term) expiration ofyour
intention to purchase or return the Equipment, whereupon you may: a) purchase all, but not less than all, of the Equipment as indicated above or b) return all of the Equipment in
good working condition at your cost how, when and where we direct. Any FMV purchase option amount will be determined by us based on the Equipment's in place value. If you
don't notify us, or if you don't a) purchase or b) return the Equipment as provided herein, this Agreement will automatically renew at the same Payment amount for consecutive
60 -day periods. If any Software license ( "License ") included hereunder passes title to you, such title shall automatically, and without further action, hereby vest in us, and you
hereby agree to relinquish any subsequent Software title, purchase or use right claim. If, in connection with our Software rights, licensor's consent is required, you will assist us in
obtaining such consent. If the $1.00 Buyout is selected above, the first three sentences of this section 8 shall be void and upon expiration of the Term, you shall pay all amounts
owed by you hereunder but unpaid as of such date plus $1.00 (and any applicable taxes). Any purchase of the Equipment by you pursuant to a purchase option or $1.00 Buyout
shall be "AS IS, WHERE IS" without representation or warranty of any kind from us.
9. Miscellaneous: You acknowledge we have given you the Equipment supplier's name. We hereby notify you that you may have rights under the supplier's contract and may
contact the supplier for a description of these rights. This Agreement shall be governed and construed in accordance with the laws of Michigan. You agree (i) to waive any and all
rights and remedies granted to you under Uniform Commercial Code Sections 2A -508 through 2A -522, and (ii) that the Equipment will only be used for business purposes and not
for personal, family or household use. This Agreement may be executed in counterparts and any facsimile, photographic or other electronic transmission and/or electronic signing
of this Agreement by you and when manually countersigned by us or attached to our original signature counterpart and/or in our possession shall constitute the sole original chattel
paper as defined in the UCC for all purposes and will be admissible as legal evidence thereof. No security interest in this Agreement can be perfected by possession of any
counterpart other than the counterpart bearing our original signature. You agree not to raise as a defense to the enforcement of this Agreement or any related documents hereto the
fact that such documents were executed by electronic means. We may inspect the Equipment during the Term. No failure to act shall be deemed a waiver of any rights hereunder.
If you fail to pay (within thirty days of invoice date) any freight, sales tax or other amounts related to the Equipment which are not financed hereunder and are billed directly by us
to you, such amounts shall be added to the Payments set forth above (plus interest or additional charges thereon) and you authorize us to adjust such Payments accordingly. If you
are required to report the components of your payment obligations hereunder to certain state and /or federal agencies or public health coverage programs such as Medicare,
Medicaid, SCRIP or others, and such amounts are not adequately disclosed in any attachment hereto, then Stryker Sales Corporation will, upon your written request, provide you
with a detailed outline of the components of your payments which may include equipment, software, service and other related components. You acknowledge that you have not
received any tax or accounting advice from us. You agree that you shall upon request from us, promptly provide to us a copy of your most recent annual financial statements and
any of your other financial information (including interim financial statements) that we may request. You authorize us to share such information with our affiliates, subsidiaries
and Assignees. This Agreement, any schedules hereto, any attachments to this Agreement or any schedules and any express warrantees made by Stryker Sales
Corporation constitute the entire agreement between the parties hereto regarding the Equipment and its use and possession and supersede all prior agreements and
discussions regarding the Equipment and any prior course of conduct. You waive all rights to any indirect, punitive, special or consequential damages in connection with
the Equipment or this Agreement. There are no agreements, oral or written, between the parties which are contrary to the terms of this Agreement and such other
documents. YOU AGREE THAT THIS IS A NON - CANCELLABLE AGREEMENT AND WAIVE TRIAL BY JURY.
I CERTIFY THAT I AM AUTHORIZED TO SIGN THIS AGREEMENT FOR CUSTOMER
Customer Signature
Signature:
Date:
Prime Name:
ffc:
Print Name:
Title:
Agreement 40110033813
Accepted By Stryker Flex Financial, a division of Stryker Sales
Corporation
Signature:
Date:
Prime Name:
ffc:
stryker
FLE) FINANCIAL
Exhibit A to Short Form Lease Agreement Number 0110033813
Description of Equipment
Customer Name: CITY OF SCHERTZ, TEXAS
Delivery Address: 1400 SCHERTZ PKWY, SCHERTZ, Texas 78154 -1634
Part I - Equipment /Service Coverage (if applicable)
Model Number Equipment Description Quantity
6506700004 KIT, XPS RETROFIT 2
6506000000 POWER PRO AMBULANCE COT 5
Total Equipment: $91,947.03
Service Coverage:
Model Number Service Coverage Description
Quantity
Years
77506001 Protect Power -LOAD- 7year
6
7.0
77110001 Protect+ Power Cot - 7Ycar
5
ZO
77110001 Protect+ Power Cot - 7Year
3
7.0
77106001 Protect+ Power Cot
2
7.0
Total Service Coverage: $79,628.34 (Service Coverage and related payment amounts shall not be subject to automatic renewal or extension, if any, at the expiration of
the Term of the Agreement)
Total Financed Amount: $171,575.37
Customer Signature
Signature:
Date:
Print Name:
Title:
Agreement Number: 0110033813
Accepted By Flex Financial, a division of Stryker Sales Corp.
Signature:
Date:
Print Name:
Title:
INSURANCE AUTHORIZATION
AND VERIFICATION
Date: October 17, 2017
To: CITY OF SCHERTZ, TEXAS ( "Customer ")
1400 SCHERTZ PKWY
SCHERTZ, Texas 78154 -1634
stryker
FLO'- INANCIAL
Short Form Lease Agreement Number 0110033813
From: Stryker Flex Financial, a division of Stryker Sales Corporation ( "Creditor')
1901 Romence Road Parkway
Portage, MI 49002
TO THE CUSTOMER: In connection with one or more financing arrangements, Creditor may require proof in the form of this document, executed by both Customer* and
Customer's agent, that Customer's insurable interest in the financed property (the "Property ") meets the requirements as follows, with coverage including, but not limited to, fire,
extended coverage, vandalism, and theft:
Creditor, and its successors and assigns shall be covered as both ADDITIONAL INSURED and LENDER'S LOSS PAYEE with regard to all equipment financed or
acquired for use by policy holder through or from Creditor.
Customer must carry GENERAL LIABILITY (and /or, for vehicles, Automobile Liability) in the amount of no less than $1,000,000.00 (one million dollars).
Customer must carry PROPERTY Insurance (or, for vehicles, Physical Damage Insurance) in an amount no less than the 'Insurable Value' $91,947.03 with
deductibles no more than $10,000.00.
*PLEASE PROVIDE THE INSURANCE AGENTS INFORMATION REQUESTED BELOW & SIGN WHERE INDICATED
By signing, Customer authorizes the Agent named below: 1) to complete and return this form as indicated; and 2) to endorse the policy and subsequent renewals
to reflect the required coverage as outlined above.
Insurance Agency:
Agent Name:
Address:
Phone /Fax:
Email Address:
CITY OF SCHERTZ, TEXAS
Signature:
Date:
Print Name:
Title:
Print Name:
Carrier Policy Number:
Title:
*Customer: Creditor will fax the executed form to your insurance agency for endorsement. In Lieu of agent endorsement, Customer's agency may submit insurance certificates
demonstrating compliance with all requirements. If fully executed form (or Customer - executed form plus certificates) is not provided within 15 days, we have the right but not
the obligation to obtain such insurance at your expense. Should you have any questions please contact Michelle Warren at 269 -389 -1909.
TO THE AGENT: In lieu of providing a certificate, please execute this form in the space below and promptly fax it to Creditor at 877 - 204 -1332. This fully endorsed
form shall serve as proof that Customer's insurance meets the above requirements.
Agent hereby verifies that the above requirements have been met in regard to the Property listed below.
Agent Signature
Signature:
Date:
Print Name:
Title:
Carrier Name:
Carrier Policy Number:
Policy Expiration Date:
Insurable Value: $91,947.03
ATTACHED: PROPERTY DESCRIPTION FOR Short Form Lease Agreement Number 0110033813
See Exhibit A to Short Form Lease Agreement Number 0110033813
TOGETHER WITH ALL REPLACEMENTS, PARTS, REPAIRS, ADDITIONS, ACCESSIONS AND ACCESSORIES INCORPORATED THEREIN OR AFFIXED
OR ATTACHED THERETO AND ANY AND ALL PROCEEDS OF THE FOREGOING, INCLUDING, WITHOUT LIMITATION, INSURANCE RECOVERIES.
Agreement Number: 0110033813
stryker
FLE) FINANCIAL
This State and Local Government Customer Rider (the "Rider ") is an addition to and hereby made a part of Short Form Lease Agreement Number 0110033813 (the
"Agreement ") between STRYKER FLEX FINANCIAL, a division of Stryker Sales Corporation ( "Owner ") and CITY OF SCHERTZ TEXAS ( "Customer ") to be executed
simultaneously herewith and to which this Rider is attached. Capitalized terms used but not defined in this Rider shall have the respective meanings provided in the Agreement.
Owner and Customer agree as follows:
1. Customer represents and warrants to Owner that as of the date of, and throughout the Term of, the Agreement: (a) Customer is a political subdivision of the state or
commonwealth in which it is located and is organized and existing under the constitution and laws of such state or commonwealth; (b) Customer has complied, and will comply,
hilly with all applicable laws, rules, ordinances, and regulations governing open meetings, public bidding and appropriations required in connection with the Agreement, the
performance of its obligations under the Agreement and the acquisition and use of the Equipment; (c) The person(s) signing the Agreement and any other documents required to be
delivered in connection with the Agreement (collectively, the "Documents ") have the authority to do so, are acting with the full authorization of Customer's governing body, and
hold the offices indicated below their signatures, each of which are genuine; (d) The Documents are and will remain valid, legal and binding agreements, and are and will remain
enforceable against Customer in accordance with their terms; and (e) The Equipment is essential to the immediate performance of a governmental or proprietary function by
Customer within the scope of its authority and will be used during the Term of the Agreement only by Customer and only to perform such function. Customer further represents
and warrants to Owner that, as of the date each item of Equipment becomes subject to the Agreement and any applicable schedule, it has funds available to pay all Agreement
payments payable thereunder until the end of Customer's then current fiscal year, and, in this regard and upon Owner's request, Customer shall deliver in a form acceptable to
Owner a resolution enacted by Customer's governing body, authorizing the appropriation of funds for the payment of Customer's obligations under the Agreement during
Customer's then current fiscal year.
2. To the extent permitted by applicable law, Customer agrees to take all necessary and timely action during the Agreement Term to obtain and maintain funds appropriations
sufficient to satisfy its payment obligations under the Agreement (the "Obligations"), including, without limitation, providing for the Obligations in each budget submitted to
obtain applicable appropriations, causing approval of such budget, and exhausting all available reviews and appeals if an appropriation sufficient to satisfy the Obligations is not
made.
3. Notwithstanding anything to the contrary provided in the Agreement, if Customer does not appropriate funds sufficient to make all payments due during any fiscal year under
the Agreement and Customer does not otherwise have funds available to lawfully pay the Agreement payments (a "Non- Appropriation Event "), and provided Customer is not in
default of any of Customer's obligations under such Agreement as of the effective date of such termination, Customer may terminate such Agreement effective as of the end of
Customer's last funded fiscal year ( "Termination Date ") without liability for future monthly charges or the early termination charge under such Agreement, if any, by giving at least
60 days' prior written notice of termination ( "Termination Notice ") to Owner.
4. If Customer terminates the Agreement prior to the expiration of the end of the Agreement's initial (primary) term, or any extension or renewal thereof, as permitted under
Section 3 above, Customer shall (i) on or before the Termination Date, at its expense, pack and insure the related Equipment and send it freight prepaid to a location designated by
Owner in the contiguous 48 states of the United States and all Equipment upon its return to Owner shall be in the same condition and appearance as when delivered to Customer,
excepting only reasonable wear and tear from proper use and all such Equipment shall be eligible for manufacturer's maintenance, (ii) provide in the Termination Notice a
certification of a responsible official that a Non - Appropriation Event has occurred, (iii) deliver to Owner, upon request by Owner, an opinion of Customer's counsel (addressed to
Owner) verifying that the Non - Appropriation Event as set forth in the Termination Notice has occurred, and (iv) pay Owner all sums payable to Owner under the Agreement up to
and including the Termination Date.
5. Any provisions in this Rider that are in conflict with any applicable statute, law or rule shall be deemed omitted, modified or altered to the extent required to conform thereto,
but the remaining provisions hereof shall remain enforceable as written.
Customer Signature
Signature:
Date:
Print Name:
Title:
Agreement Number: 0110033813
Accepted By Flex Financial, a division of Stryker Sales Corp.
Signature:
Date:
Print Name:
Title:
ORM
Sales Account Manager
Jordan Costello
jordan.costello@stryker.com
Cell: 512- 673 -0636
Comprehensive Quotation
Remit to:
P.O. Box 93308
Chicago, IL 60673 -3308
End User Shipping Address
Shipping Address
Billing Address
1284514
1284514
1120530
SCHERTZ EMS
SCHERTZ EMS
SCHERTZ EMS
1400 SCHERTZ PKWY
1400 SCHERTZ PKWY
PO BOX 1
BLDG 7
BLDG 7
SCHERTZ, TX 78154 -1406
SCHERTZ, TX 78154 -1673
SCHERTZ, TX 78154 -1673
Customer Contact
Ref Number Date
PO Number
Reference Field
Quote Type
6021564 10/16/2017
QUOTE
VOLUME QUOTE
dine
Item
Unit Extended
quantity
Part #
Item Comments
#
Description
Price
Price
1.00 2
KIT, XPS
6506700004 $2,540.59
$5,081.18
XPS UPGRADE KITS
RETROFIT
2.00 6
Protect Power-
77506001 $6,338.71
$38,032.26
POWERLOAD 7 YEAR WARRANTY INCLUDING ALL PARTS, LABOR, TRAVEL, AND
LOAD - 7year
1 PM/YEAR
3.00 5
Protect+ Power Cot
77110001 $4 ,902.96
$24,514.80
5 YEAR EXTENDED WARRANTY FOR NEW POWERPROS INCLUDING ALL
- 7Year
PARTS, LABOR, TRAVEL, 1 PMNEAR AND SMRT BATTERIES /CHARGERS
4.00 5
Power -PRO XT
6506000000 $17,373.17
$86,865.85
Options
5
Power -PRO XT
6506000000 $15,305.01
$76,525.05
5
XPS Option
6506040000 $1,925.10
$9,625.50
5
Power -LOAD
6506127000 $1,63029
$8,151.45
Compatible Option
5
3 Stage IV Pole PR
6500315000 $331.08
$1,655.40
Option
5
Fowler 02 Bottle
6500241000 $250.17
$1,250.85
Holder
5
Pocketed Back
6500130000 $248.31
$1,241.55
Rest Pouch
5
Head End Storage
6500128000 $132.99
$664.95
Flat
5
Equipment Hook
6500147000 $50.22
$251.10
5
Dual Wheel Lock
6086602010
5
PR Cot Retaining
6085033000
Post
Power Pro
5
Standard
6506026000
Components
5
No Runner /HE 02
0054200994
5
Trendelenburg
6085031000
5
No HE Section 02
6506036000
Bottle
5
English Manual
6506600000
5
120V AC SMRT
6500028000
Charging Kit
5
Short Hook
6060036017
5
XPS Knee Gatch
6500003130
Bolster Matrss
5
No Steer Lock
6506037000
Option
5
3 YR X -Frame
7777881669
Powertrain Wrnty
5
2 Yr Bumper to
7777881670
Bumper Warranty
5
DOM SHIP (NOT
0054030000
HI, AK, PR, GM)
5
X- RESTRAINT
6500001430
PACKAGE
Page 1 of 2
Sales Account Manager
Jordan Costello
jordan.costello@stryker.com
Cell: 512- 673 -0636
Comprehensive Quotation
Remit to:
P.O. Box 93308
Chicago, IL 60673 -3308
Line
$171,575.37
Item
$0.00
Unit
Extended
Total Incl Tax & Freight
Quantity
Part #
Item Comments
#
Description
Price
Price
5
STANDARD
6506012003
FOWLER
5
Discount
9999999912
($2,500.00)
($12,500.00)
5.00
3
Protect+ Power Cot
77110001
$4 ,902.96
5 YEAR WARRANTY FOR EXISTING POWERPROS (2015'S) WHICH INCLUDES
$14,708.88
- 7Year
ALL PARTS, LABOR, TRAVEL, 1 PM/YEAR AND SMRT BATTERIES /CHARGERS
6.00
2
Protect+ Power Cot
77106001
$1,186.20
$2,372.40 1 YEAR WARRANTY FOR EXISTING POWERPROS (2009'S) WHICH INCLUDES
ALL PARTS, LABOR, TRAVEL, 1 PM/YEAR AND SMRT BATTERIES /CHARGERS
VALID UNTIL 12/22/17
Product Total
$171,575.37
Freight
$0.00
Tax
$0.00
Total Incl Tax & Freight
$171,575.37
Signature: Title /Position: Date
Deal Consummation: This is a quote and not a commitment. This quote is subject to final credit, pricing, and documentation approval. Legal documentation must be signed before
your equipment can be delivered. Documentation will be provided upon completion of our review process and your selection of a payment schedule.
Confidentiality Notice: Recipient will not disclose to any third party the terms of this quote or any other information, including any pricing or discounts, offered to be provided by Stryker
to Recipient in connection with this quote, without Stryker's prior written approval, except as may be requested by law or by lawful order of any applicable government agency.
Terms: Net 30 Days. FOB origin. A copy of Stryker Medical's standard terms and conditions can be obtained by calling Stryker Medical's Customer Service at 1- 800- STRYKER.
Cancellation and Return Policy: In the event of damaged or defective shipments, please notify Stryker within 30 days and we will remedy the situation. Cancellation of orders must be
received 30 days prior to the agreed upon delivery date. If the order is cancelled within the 30 day window, a fee of 25% of the total purchase order price and return shipping charges
will apply.
Page 2 of 2
Agenda No. 1.0
CITY COUNCIL MEMORANDUM
City Council Meeting: 12/12/2017
Department: EMS
Subject: Resolution No. 17-R-117
Authorizing the City Manager to
enter into an agreement for the
purchase of four (4) stretcher loading
systems from Stryker EMS
Equipment
Background
Schertz EMS currently uses Stryker Power -Pro Stretchers in all of our ambulances.
These stretchers use hydraulics to raise and lower the stretcher which greatly reduces
the lifting of patients required of EMS employees. The Stryker Power -Load system is
designed to automatically load the Stryker stretcher into the ambulance. The system
will be mounted in the four (4) Horton ambulances purchased in 2015. The systems
will minimize and/or eliminate the amount of physical strain put on the employees
while loading patients (one of the more injury prone areas of the paramedic's job)
resulting in fewer injuries. Paramedic injury rates resulting from the cumulative
effects of repetitive heavy lifting of patients, stretchers and equipment are a
significant concern. Schertz EMS transports over 6,000 patients annually with a fleet
of five ambulances which is 6,000 loading /unloading maneuvers or stated another
way, 6,000 opportunities for paramedic injury. The implementation of the Stryker
Power -Load system will almost eliminate the manual loading and unloading of
patients from the ambulance.
Additionally, in July 2015, . SAE International (Society of Automotive Engineers)
released new industry standards to improve safety and crashworthiness in ground
ambulances. SAE J3027 addresses ambulance stretcher integrity which means how
well the stretchers are secured to the ambulance during an accident. Our current
stretcher fastener systems do not meet these new standards. The Stryker Power Load
system meets these new standards.
There are two manufacturers of ambulance stretchers and associated equipment in the
country. When the City originally selected Stryker, a competitive bid process was
followed. Both manufacturers responded to the bid process and Stryker was chosen
based upon quality, safety features and price. Since that time, when we have made
large purchases, both companies have been evaluated against each other and Stryker's
continued quality and innovation have led EMS to not change over to the other
company's products. These purchases are being done in anticipation of implementing
the stretcher auto -load system. Both companies have an auto -load system, however,
Stryker's system is compatible with our current stretcher fleet which will allow us to
implement this new safety system at a much lower cost because we do not have to
completely replace all of our current ambulance stretchers. For this reason, pricing
was obtained from Stryker EMS Equipment as a sole source provider.
Goal
To authorize the City Manager to execute the contract with Stryker for the purchase
of four (4) stretcher loading systems from Stryker EMS Equipment.
Fiscal Impact
The purchase of these loading systems will be funded by the EMS Department from
proceeds of the 2015 CO Bond when 4 new ambulances were purchased. $89,842.38
was left over from the 2015 CO Bond which were to be used for the new ambulances
and associated equipment. The remaining funds ($5,195.38) will be taken from
budgeted funds for equipment replacement.
The total purchase amount for the four (4) stretcher loading systems is $95,037.76.
Recommendation
Approval of Resolution 17 -R -117
Attachment(s)
Resolution 17 -R -11.7
Stryker Quote for Power Load Systems
RESOLUTION NO. 17 -R -117
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER
INTO AN AGREEMENT FOR THE PURCHASE OF FOUR (4)
STRETCHER LOADING SYSTEMS FROM STRYKER EMS
EQUIPMENT.
WHEREAS, Schertz EMS has a need to purchase four (4) stretcher loading systems; and
WHEREAS, Schertz EMS has chosen Stryker Power Load for the purchase of four (4)
stretcher loading systems; and
WHEREAS, pricing was obtain from Stryker EMS Equipment as a sole source provider;
and
WHEREAS, this sole source procurement is allowable under Section 252.022 "General
Exemptions" section 7 sub - section D for an expenditure for a procurement of items that are
available from only one source, including captive replacement parts or components for
equipment; and
WHEREAS, the City of Schertz will fund the purchase of the stretcher loading systems
through the EMS enterprise fund.
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 accept the quote
attached in Exhibit A and issue a Purchase Order to Stryker EMS Equipment in the amount of
$95,037.76.
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 12 th day of December, 2017.
CITY OF SCHERTZ, TEXAS
Michael R. Carpenter, Mayor
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
EXHIBIT A
50234811.1 A -�.
ORM
Shipping Address
1284514
SCHERTZ EMS
1400 SCHERTZ PKWY
BLDG 7
SCHERTZ, TX 78154 -1673
Comprehensive Quotation
Remit to:
P.O. Box 93308
Chicago, IL 60673 -3308
Billing Address
1120530
SCHERTZ EMS
PO BOX 1
SCHERTZ, TX 78154 -1406
Customer Contact Ref Number Date PO Number Reference Field Quote Type
6021437 10/16/2017 QUOTE VOLUME QUOTE
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1.00 4
4
4
4
4
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Item Description
PowerLOAD
Options
Powerl-OAD
UNIVERSAL FLOORPLATE OPTION
Standard Comp 6390 Power Load
English Manual
1 year parts, labor & travel
English Option, Manual
LOAD INSTALLATION NOT INCLUDED
VALID UNTIL 12122/17
Part #
6390000000
6390000000
6390028000
6390026000
6390600000
7777881660
6390020000
Unit Price
$23,759.44
$22,978.02
$781.42
Extended Price
$95,037.76
$91,912.08
$3,125.68
Item Comments
Product Total
$95,037.76
Freight
$0.00
Tax
$0.00
Total Incl Tax & Freight
$95,037.76
r Signature: Title /Position: Date
Deal Consummation: This is a quote and not a commitment. This quote is subject to final credit, pricing, and documentation approval. Legal documentation must be signed before
your equipment can be delivered. Documentation will be provided upon completion of our review process and your selection of a payment schedule.
Confidentiality Notice: Recipient will not disclose to any third party the terms of this quote or any other information, including any pricing or discounts, offered to be provided by Stryker
to Recipient in connection with this quote, without Stryker's prior written approval, except as may be requested by law or by lawful order of any applicable government agency.
Terms: Net 30 Days. FOB origin. A copy of Stryker Medical's standard terms and conditions can be obtained by calling Stryker Medical's Customer Service at 1- 800- STRYKER.
Cancellation and Return Policy: In the event of damaged or defective shipments, please notify Stryker within 30 days and we will remedy the situation. Cancellation of orders must be
received 30 days prior to the agreed upon delivery date. If the order is cancelled within the 30 day window, a fee of 25% of the total purchase order price and return shipping charges
will apply.
Page 1 of 1
City Council Meeting:
Department:
Subject:
Agenda No. 11
0111 &WOL11"LlusI Ed 1 OlU [o7 710 Rod
December 12, 2017
Purchasing / Fleet
Resolution No. 17 -R -116 - A Resolution by the City
Council of Schertz authorizing expenditures in excess
of $50,000, with the highest single vendor contract
not exceeding $665,000 and the total contracts not
exceeding $1,193,000, and as approved in the 2017-
2018 fiscal year budget, for the City's Vehicle
Replacement Program.
The City has taken a comprehensive approach in developing a cost - effective fleet replacement
program. Best practice fleet operations have been integrated into the existing program and the City has
developed systematic policies and procedures for determining when a vehicle or equipment requires
replacement. In support of this program, Council approved a funding mechanism that authorized a
total of $1,692,718.00 in the FY 2017 -18 budget for the City's Vehicle Replacement Program.
This item is for a portion of the budgeted vehicle expenditures through a number of vendors where the
contract would be in excess of $50,000. This agenda item covers six vendors and is for approximately
two thirds of the budgeted amount. Other purchases, such as for Police Department squad cars, have
already been approved by the City Council. Further purchase, such as for small equipment
replacement like a trailer, may be less than $50,000 with a single vendor. The specific vendor, not to
exceed amount, item(s) to be purchased, and benefited department are listed below.
The City has historically purchased vehicles and equipment from vendors belonging to purchasing
cooperatives. This has allowed the City to procure vehicles through best -value and capitalize on
volume discounts. For FY 201.7 -18, the City anticipates the purchase and outfitting of vehicles and
fleet equipment from the following vendors.
Vendor Amount Item
Silsbee Ford $645,000 Truck (1)
Truck (5)
Sewer Cleaning Truck (1)
Truck (1)
Truck (3)
Truck (1)
$20,000 Additional expenses for
fleet /maintenance repairs
Department
Marshal's Office
Public Works
Public Works
Animal Services
Facility Services
Purchasing
All Departments
Vendor Amount
Caldwell Country $70,000
FarrWest Environmental Supply $80,000
$20,000
Fleet Safety Equipment $71,000
Doggett Freightliner $11.2,000
$25,000
RDO Equipment $55,000
$20,000
Motorola $75,000
Items Department
SUV (1) Fire
SUV (1) EMS
Vehicle Outfitting
Additional expenses for All Departments
fleet/maintenance repairs
Vehicle Outfitting Police
Dump Truck Public Works
Additional expenses for
fleet /maintenance repairs
Skid Steer Parks
Additional expenses for
fleet/maintenance repairs
Vehicle Outfitting Fire, EMS, Police
Other emergency telecommunication equipment
The City's practice is to seek authorization from Council when expenditures with a vendor exceed
$50,000 in one fiscal year. Though exact amounts for each vehicle may not be known, purchases will
not exceed the budgeted amount.
Thus, staff is requesting approval to spend up to: 1) $665,000 with Silsbee Ford, 2) $70,000 with
Caldwell Country Chevrolet, 3) $100,000 with FarrWest Environmental Supply, 4) $71,000 with Fleet
Safety Equipment, 5) $137,000 with Doggett Freightliner, 6) $75,000 with RDO Equipment, and 7)
$75,000 with Motorola as part of the City's Vehicle Replacement Program in FY 2017 -18.
COMMUNITY BENEFIT
A proactive fleet replacement programs provides for long -term planning and prudent fiscal
stewardship. Purchasing cooperatives assist local governments in reducing costs through volume
purchasing. Additionally, City resources are conserved and purchasing efficiencies are maximized
through use of a streamlined procurement process.
SUMMARY OF RECOMMENDED ACTION
Staff recommends that Council authorize expenditures up to $665,000 with Silsbee Ford, up to
$70,000 with Caldwell Country Chevrolet, up to $100,000 with FarrWest Environmental Supply, up
to $71,000 with Fleet Safety Equipment, up to $137,000 with Doggett Freightliner, and up to $75,000
with RDO Equipment, as part of the City's Vehicle Replacement Program in FY 2017 -18, and up to
$75,000 with Motorola for related equipment purchases.
FISCAL IMPACT
Funds are budgeted and available for the City's Vehicle Replacement Program.
ATTACHMENTS
Resolution 17 -R -116
RESOLUTION NO. 17 -R -116
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING EXPENDITURES IN EXCESS OF
$50,000, WITH THE HIGHEST SINGLE VENDOR CONTRACT NOT
EXCEEDING $665,000 AND THE TOTAL OF ALL CONTRACTS NOT
EXCEEDING $1,193,000, AND AS APPROVED IN THE 2017 -2018
FISCAL YEAR BUDGET, FOR THE CITY'S VEHICLE REPLACEMENT
PROGRAM AND OTHER MATTERS IN CONNECTION THEREWITH
WHEREAS, the City of Schertz (the "City ") has developed a fleet replacement program,
and Council has approved a funding mechanism in FY 2017 -18 budget in support of the
program; and
WHEREAS, City staff has determined that Caldwell Country Chevrolet, Silsbee Ford,
FarrWest Environmental Supply, Fleet Safety Equipment, Doggett Freightliner, RDO Equipment
and Motorola, all cooperative vendors, will provide the best -value to the City for replacement
vehicles and equipment, vehicle outfitting, and related equipment purchases; and
WHEREAS, City resources are conserved and purchasing efficiencies are maximized
through use of a streamlined procurement process, where vehicles can be purchased through
cooperative programs which satisfy the Texas state law requirement of local governments to seek
competitive procurement for the purchase of goods or services.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS THAT:
Section 1. The City Council hereby authorizes expenditures up to but not to exceed
$665,000 with Silsbee Ford as a part of the City's Vehicle Replacement Program and for
additional fleet maintenance expenditures.
Section 2. The City Council hereby authorizes expenditures up to but not to exceed
$70,000 with Caldwell Country Chevrolet as a part of the City's Vehicle Replacement Program.
Section 3. The City Council hereby authorizes expenditures up to but not to exceed
$100,000 with FarrWest Environmental Supply for vehicle outfitting and for additional fleet
maintenance expenditures.
Section 4. The City Council hereby authorizes expenditures up to but not to exceed
$71,000 with Fleet Safety Equipment for vehicle outfitting.
Section 5. The City Council hereby authorizes expenditures up to but not to exceed
$137,000 with Doggett Freightliner as a part of the City's Vehicle Replacement Program and for
additional fleet maintenance expenditures.
Section 6. The City Council hereby authorizes expenditures up to but not to exceed
$75,000 with RDO Equipment as a part of the City's Vehicle Replacement :Program and for
additional fleet maintenance expenditures.
Section 7. The City Council hereby authorizes expenditures up to but not to exceed
$75,000 with Motorola for two way radio products.
Section 8. 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 9. 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 10. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 11. 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 12. 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 1.3. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND ADOPTED, this 12th day of December, 2017
ATTEST:
Brenda Dennis, City Secretary
(CITY SEAL)
CITY OF SCFIERTZ, TEXAS
Michael R. Carpenter, Mayor
M