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12-19-2017 Agenda with backupMEETING AGENDA City Council REGULAR SESSION CITY COUNCIL December 19, 2017 HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 COUNCIL PHOTOS 4 :00 - 6:00 P.M. Call to Order — Regular Session Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Mayor Pro -Tem Edwards) City Events and Announcements • Announcements of upcoming City Events (B. James /D. Wait /S. Gonzalez) • Announcements and recognitions by City Manager (J. Kessel) Workshop • Presentation regarding Records Retention, Public Information, Open Meetings and the Use of Social Media by Elected and Appointed Officials. (C. Zech) • Discussion and overview regarding the speed hump process. (B. James /K. Woodlee /C. Palomo) • Discussion and overview regarding bandit signs. (D. Wait) 12 -19 -2017 Council Agenda Hearing of Residents This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker's register prior to the meeting. Presentations should be limited to no more than 3 minutes. All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and /or a proposal to place the item on a future agenda. The presiding officer, during the Dearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered. Consent Agenda Items The Consent Agenda is considered self - explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request of the Mayor or a Councilmember. 1. Minutes — Consideration and /or action regarding the approval of the minutes of the special meeting of December 1, 2017 . and the regular meetings of December 5, 2017 and December 12, 2017. (J. Kessel /B. Dennis) 2. 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. Final Reading (B. James /L. Wood) 3. Ordinance No. 17 -K -49- Consideration and/or action on an ordinance closing and abandoning a section of Savannah Drive right of way to the abutting property owner, located southwest of the intersection of Savannah Drive and Big Horn Trail. Final Reading (B. James /L. Wood/ B. Cox) Discussion and Action Items 4. Resolution No. 17 -R -121 — Consideration and /or action approving a Resolution authorizing the City Manager to enter into an agreement with :Physio- Control, Inc., for the purchase of ten (10) Chest Compression Systems. (D. Wait /J. Mabbitt) 5. Resolution No. 17 -R -123 — Consideration and /or action approving a Resolution appointing Ken Greenwald to the Board of Directors of the Schertz Seguin Local Government Corporation. (D. Wait) 6. Resolution No. 17 -R -125 — Consideration and /or action approving a Resolution authorizing contracts with VI.P Staffing, LK Jordan & Associates and AppleOne for Temporary staffing services. (D. Wait /J. Kurz) 12 -19 -2017 City Council Agenda Page - 2 - 7. Resolution No. 17 -R -122 — Consideration and /or action approving a Resolution authorizing contracts with LPA, Inc., a design architecture firm totaling no more than $86,000 for architecture and design services related to renovations and repairs of the restroom and shower facilities at the Recreation Center and other unrelated architecture and design services during the 2017 -201.8 Fiscal Year. (D. Wait) 8. Resolution No. 17 -R -124 — Consideration and /or action approving a Resolution authorizing and approving the Investment policy and strategies. (B. James /J. Walters) Roll Call Vote Confirmation Requests and Announcements 9. Announcements by City Manager. 10. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. 11. Announcements by Mayor and Councilmembers • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) • Continuing education events attended and to be attended • Recognition of actions by City employees • Recognition of actions by community volunteers Adjournment 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 15th DAY OF DECEMBER 2017 AT 4:10 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. vovuvo .sehMoe�ZeL Donna Schmoekel, Deputy City Secretar I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON DAY OF 2017. Title: This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If ' you require special assistance or have a request for sign interpretative services or other services please call 210 -619 -1030. 12 -19 -2017 City Council Agenda Page - 3 - The City Council for the City of Schertz reserves the right to adjourn into executive session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act. Executive Sessions Authorized: This agenda has been reviewed and approved by the City's legal counsel and the presence of any subject in any Executive Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion. Mayor Carpenter Councilmember Davis— Place 1 Main Street Committee Audit Committee Schertz Housing Authority 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 TIRZ 11 Board 12 -19 -2017 City Council Agenda Page - 4 - CITY COUNCIL MEMORANDUM City Council Meeting: December 19, 2017 Department: Subject: City Secretary Minutes Agenda No. 1 The City Council held a Special Meeting on December 1, 2017 and Regular meetings on December 5, and December 12, 2017. FISCAL IMPACT None RECOMMENDATION Staff recommends Council approve the minutes of the Special meeting of December 1, 2017 and the minutes of the Regular Meetings on December 5, 2017 and December 12, 2017. ATTACHMENTS Special Meeting December 1, 2017 Regular Meeting of December 5, 2017 minutes Regular Meeting of December 12, 2017 minutes MINUTES SPECIAL MEETING December 1, 2017 . A Special Teambuilding Session Meeting was held by the Schertz City Council of the City of Schertz, Texas, on December 1, 2017, at 8:30 a.m. at the Fairfield Inn & Suites, 5008 Corridor Loop Road, Schertz, Texas. The following members present to -wit: Mayor Michael Carpenter Councilmember Mark Davis Councilmember Scott Larson Councilmember Angelina Kiser Staff Present: Executive Director Brian. James Executive Director Kyle Kinateder City Attorney Charles Zech Mayor Pro -Tem Cedric Edwards Councilmember Ralph, Gutierrez Councilmember David Scagliola Councilmembet,Bert:Crawford City Manager John Assistant to the City Dennis t Gonzalez Staff Members who joined the afternoon session: IT Director Myles Clauser, Finance Director James Walters, irks & Recreation Assistant Director Lauren Shrum, GIS Coordinator Tony McFalls, Fire Chief Kade Long,: Assistant Fire Chief Kyle McFee, Police Chief Michael Hansen, Assistant Police Chief Mark Bane, EM`:ommunity Health Manager Kellie Burnam, Public Works Manager Doug Leib i ette , pity Engineer thy Woodlee, City Engineer John Nowak, Public Affairs Director Linda Tepper, ' Libxary Director Melissa Uhlhorn, Human Resource /Purchasing and Asset Director Jessica Kurz,Director :of Planning and Community Development Lesa Wood, Interim Marshal Sto o Pulaski, Schertz—Sequin Local Government Manager Alan Cockerell. Facilitators: Roy and MaryAnn Davit with Davis Guests: Richard Dziewit to called the meetin2'to Girder at 8:34 a.m. 1. Discussion and appropriate action on City Council and City Staff team building, strategic planning Organizational development and structure, and proper governance (J. Kessel) • Team building, discussion led by Davis Success Solutions (Facilitators & - DISC` - Role of Leader: Vision/Alignment /Execution In the morning session Roy and Mary Anne Davis made an introduction to Council of the process and program of the teambuilding exercise today to cover what leadership means, the work of leaders: - DISC Model and understanding the model — premise of DISC - DISC Profiles 12 -1 -2017 Minutes Page - 1 - - Work of Leaders Models - Behaviors and how you apply them - Leadership Model — Vision, Alignment, Execution - History matters because need to know where you want to go - Never stop learning (observe, interpretation, how do you apply it) - Building alignment — Clarity, Dialogue, Inspiration Mayor Carpenter recessed the morning session for lunch break at 11:22 a.m., Mr. Dziewit left the meeting. Mayor Carpenter reconvened the meeting at 1.1:45 a.m. During lunch break Executive Director Dudley Wait pi Department re- organization under the Police Department, Communication /Dispatch Overhire :Position. The following topics were covered in the afternoon:. . - Leadership is not being the lone i~an - A true team is a team of people who - Elements of Leadership - Work of leader's proces - Building alignment — Clarity,, Dialo€ - Crafting a vision — Exploration, Boll - Championing executions - Execution Momentum (Initiating. S regarding the Marshal nartment Structure and the right impacts alignment) s, Testing the meeting at 2:1.5 p.m. closing remarks as well as Mayor and Councilmembers. Mayor Carpenter adjourned the meeting at 3:11 p.m. Michael R. Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary 12 -1 -2017 Minutes Page - 2 - MINUTES REGULAR MEETING December 5, 2017 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on December 5, 2017, at 6:00 p.m. in the Hal Baldwin Municipal Complex Council Chambers, 1.400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to -wit: Mayor Michael Carpenter Councilmember Mark Davis Councilmember Scott Larson Councilmember Angelina Kiser Staff Present: Executive Director Brian James City Attorney Dan Santee Deputy City Secretary Donna Schmoekel Mayor Carpenter called the meeting to Texas. (Councilmember Councilmember I the flags of the U • CMS — EMS Billing • ` `ire Department — • Parks & Recreation Each and ( Presentation p.m. [N ovided the opening prayer followed by the pledges of allegiance to and the State of Texas.. n Porter (D. Wait /J. Mabbitt) ief Kyle McAfee (D. Wait/K. Long) 1 Israel Segura (B. James /C. VanZandt /L. Shrum) -oduced their employee and provided a brief bio of them. Mayor all the new staff members aboard. • Presentation and update regarding Hurricane Harvey Preparation, Response and Deployment. (J. Kessel /D. Wait /B. James /K. Long /J. Mabbitt) Mayor Carpenter recognized Executive Director Dudley Wait who stated several speakers would be coming up to the podium this evening to make a variety of presentations and pass out awards of recognition for many of the Schertz Rescue Team staff members who volunteered during Hurricane Harvey to go out of town with equipment to assist in the needed areas as well as those 1.2 -05 -201.7 Minutes page - I - staff members that stayed home and worked many hours of overtime to cover for those staff members who deployed to the onsite disaster areas. The speakers included: Mr. Nim Kidd, Chief of the Texas Division of Emergency Management, Austin, TX Mr. Jason Mabbitt, Schertz EMS Director Mr. Eric Eppley, Executive Director of Southwest Texas Regional Advisory Council *Also present with Mr. Eppley was Ms. Sarah Jensen, Texas EMTF Program Manager Mr. Kade Long, Schertz Fire Chief Numerous city staff members (Firefighters, Paramedics, Supervisors". ,; etc.) were presented awards of recognition and commendation for handling the local Schertzlinergoney Management Operations Center and those deployed to the hurricane disaster areas. The speakers provided pictures of the rescue operations, equipment, and staff. They provided data on the hours /days worked, number of rescues, costs /expenses, and more. Mayor Carpenter expressed his thanks to all the staff • Presentation regarding the SCUCISD Annual Essay and Art Contest winners. (B. Dennis /R. Williams /D. Weirtz),, Mayor Carpenter recognized SCUCISD K- 12, Social Studies Coordinator Rebecca Williams who thanked the Mayor and Council for allowing her the honor and opportunity to present awards to the SCUCISD students Who placed in this contest. The also thanked all the students, parents, family members, teachers, school district administrators and community members here tonight who support the student,s. Mr. each After the I and family from the I individual winners. building. Meeting recessed at 7:22 p.m. Meeting reconvened at 7:32 p.m. ttee, Ms. Williams, and Mayor Carpenter presented recessed the meeting for ten minutes to allow students • Announcements of upcoming City Events (B. James /D. Wait /S. Gonzalez) Mayor Carpenter recognized Assistant to the City Manager Sarah Gonzalez who provided the following announcements: 1.2 -05 -201.7 Minutes Page - 2 - Wednesday, December 6th Blood Drive 7:45 am -11:45 am Front Parking Lot. Contact Kellie Burnam X 1430 Saturday, December 911 Movie in the Park, Pickrell Park 5:00 pm `Dr. Seuss' How the Grinch Stole Christmas Popcorn and drinks will be available for purchase. Crescent Bend Nature Park, 5:30 12805 Schaefer Road - Contact the Parks to reserve your spot X1854 Tuesday, December 12th City Council Meeting, Council Chambers, Tuesday, December 19th City Council Meeting, Council Chambers, Monday, December 25th City Offices Closed More Council photos will be re upcoming information. Announcements Mayor Carpenter reco for the MPO that was wants to say thank yoi County also put in of your tha61 %loci' - titive process r County or Workshop r more information and e on the lookout for that ;er John Kessel who held up the copy of the application )OT - -- we ' do already have a couple of partners and he fo that; The City of Schertz put in $5 million and Bexar project.' 'TXDOT put in $5.5 million to bring the project should make it highly competitive at the MPO. This is a Will probably be made in March or April. If you see any please say Thank You on our behalf for that project. • Outstanding: General Obligation Bonds - Discussion and possible action authorizing City Staff and Consultants to pursue a refunding of the City's Outstanding General Obligation Bonds, Series 2008 for debt service savings so long as certain savings parameters are met. (J. Walters /M. McLiney /A. Friedman) Mayor Carpenter recognized Finance Director James Walters who stated we have a potential refunding opportunity to save our taxpayers some money and free up some additional bonding capacity. He introduced Marc McLiney from SAMCO Capital Markets who came forward to provide a presentation. 1.2 -05 -201.7 Minutes Page - 3 - Mr. McLiney provided information on the 2017 Bond Refunding Plan. He complimented the staff and mentioned the city's continued excellent bond rating which is AA +. The highest rating you can get is AAA which are very rare. Good ratings allow for many opportunities to refinance oneself. Schertz's reputation throughout the market is impeccable. This is very helpful when they try to sell these bonds. The City's outstanding $6,035,000 (average interest rate of 4.13 %) General Obligation Bonds, Series 2008 are callable beginning February 1, 2018 . and can be refunded to achieve significant debt service savings. On the call date, which is February, j,'2018, we can take them back from the investor. By calling them back they think the new,interest'rate would be around 2.46 %. Present value savings would be about $530 or $5501 :.thousand dollars. They don't have interest rates yet. They always come to Council first to inform you and get authority to receive interest rates. Mayor Carpenter moved to the Hearing of 'Residents portion of the agenda. Mayor ividnals who spoke: • Mr' Michael Dahl, 9120, E, FM 1.51.8 North, (Chair of the Planning and Zoning 013ml sion), whti congratulated 'Councilmembers Edwards, Larson, and Scagliola on their successful election efforts. He also expressed his thanks for Council's continued support on their members attendance at this year's annual APA Conference. This is the 4th consecute year Scltertz has received the Certificate of Achievement for Planning Excellence Award. Iue to the loss of several prior experienced board members it is important to continue to invest in the training and education of the new commissioners. He stated that as the fill new vacancies on the board, he requested the Interview Committee and Council consider individuals who have a passion for the City and a passion to learn. The Commission can provide the knowledge and training, but the love for community is something they can't teach. Mayor Carpenter moved to the Discussion and Action Items portion of the Agenda. 12 -05 -2017 Minutes Page - 4 - Discussion and Action Items 1. Minutes — Consideration and /or action regarding the approval of the minutes of the Regular Meeting of November 28, 2017. (J. Kessel /B. Dennis) Mayor Carpenter recognized Councilmember Davis who moved seconded by Mayor Pro- Tern Edwards to approve the minutes of November 28, 2017. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Davis, Gutierrez, Larson, Scagliola, Kiser and Crawford voting for and no one voting, no, Motion passed. 2. Resolution No. 17 -R -110 —Consideration and /or action approving a Resolution casting votes to elect Directors for the Coma] County Appraisal Oistrictfor the 201.8 -2019 Term. (B. Dennis /Mayor & Council) The following was read into record: RESOLUTION NO.'- 17. -R -11 A RESOLUTION BY THE CITY COUNCIL ' : OF THE CITY OF SCHERTZ, TEXAS CASTING VOTES ' TO ELECT DIRECTORS FOR THE COMAL COUNTY APPRAISAL DISTRICT FOR THE 2018 -2019 TERM. p 3. Resolution No. 17 -R- :111 —'C votes to elect Direco6r for the Terri, {B. Dennis /Mach & C< The folloina.was read into record: they are looking at on and Kiser. Crawford who moved seconded by tally among the candidates. The vote s, Councilmembers Davis, Gutierrez, for and no one voting no. Motion and/or action approving a Resolution casting County Appraisal District for the 2018 -2019 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS CASTING VOTES TO ELECT DIRECTORS FOR THE GUADALUPE COUNTY APPRAISAL DISTRICT FOR THE 2018 -2019 TERM. Mayor Carpenter recognized Mayor Pro -Tem Edwards who moved seconded by Councilmember Larson to cast 77 votes for Mr. John Correu and 200 votes for Mr. Daryl John. The vote was 5 -2 -0 with Mayor Pro -Tem Edwards, Councilmembers Davis, Gutierrez, Larson, and Scagliola voting for, and Kiser and Crawford voting no. Motion passed. 12 -05 -2017 Minutes Page - 5 - 4. Resolution No. 17 -R -112 —Consideration and /or action approving a Resolution casting votes to elect Directors for the Bexar County Appraisal District for the 2018 -2019 Term. (B. Dennis /Mayor & Council) The following was read into record: RESOLUTION NO. 17 -R -112 A RESOLUTION BY THE CITY COUNCIL OF TEXAS CASTING VOTES TO ELECT DIRECTORS APPRAISAL DISTRICT FOR THE 2018 -2019 TERM Mayor Carpenter recognized Mayor Pro -Tern Ec Councilmember Davis to cast two votes for Mr. unanimous with Mayor Pro -Tem Edwards, C Larson, Scagliola, Kiser and Crawford voting f passed. Mayor Carpenter moved back to the Workshop po • Council Committee and Liaison Assignments - regarding various Council liaison positions: (Mayor /Cc no one the agenda. V OF SCHERTZ, BEXAR COUNTY seconded by The vote was is, Gutierrez, Q no. Motion and possible action is /D. Schmoekel) o time especially when we have a all members of the reassignments, Mayor Car„Eenter Councilmember Davis— Place 1 Main Street Committee Schertz Housing Authority Board Interview Committee for Boards and Commissions Audit Committee Main Street Committee - Chair Councilmember .Gutierrez Place 2 Councilmember Larson — Place 3 Audit Committee Main Street Committee — Vice Chair Investment Adviso Committee Investment Advisory Committee Mayor Pro -Tem Edwards — Place 4 Councilmember Sca2liola — 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 TIRZ II Board 12 -05 -2017 Minutes Page - 6 - Roll Call Vote Confirmation Mayor Carpenter recognized Deputy City Secretary Donna Schmoekel who provided the roll call vote for agenda items 1 -4. Requests and Announcements 5. Announcements by City Manager. No further announcements were made. 6. Mayor and Council members to request that items be Mayor Carpenter stated he would like to have regarding social media policies and /or guideline 7. Announcements by Mayor and C • City and community events attended and to be • City Council Committee and Liaison Assignme • Continuing education events dtended and to be • Recognition of actions by City employees • Recognition of actions by community Vo unleel agenda. week's agenda assignments below) Mayor Carpenter recognized Councilmember Gutierrez who said the Festival of Angels was indeed a very imlressive event -- -kudos to city staff. He also attended the TxDOT open house meeting regarding FM 151.8. The visuals provided were fantastic and the public tuiti a was incredible. He also attended the San Antonio Manufacturers Luncheon and Schertz w well represented. Mayor Carpenter recognized Councilmember Crawford who thanked Council for allowing him to go to the APA Conference with the Planning and Zoning Department. It is worth going to and he plans on going next year. Mayor Carpenter thanked Executive Director Dudley Wait, City Manager John Kessel, and all of the staff who put together the presentations with regard to our participation in the Hurricane Harvey disaster. He learned a lot about what all people went out and did and the expertise gained as a result of going out and participating in those rescue operations. 1.2 -05 -2017 Minutes Page - 7 - 8. Information available in City Council Packets - NO DISCUSSION TO OCCUR • Updated information regarding the Sutu Interactive Soccer Wall. (S. Gonzalez) Adjournment As there was no further business, Mayor Carpenter adjourned the meeting at 8:14 p.m. 9 ATTEST: Donna Schmoekel, Deputy City 12 -05 -2017 Minutes Page - 8 - , Mayor MINUTES REGULAR MEETING December 12, 2017 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on December 12, 2017, at 6:00 p.m. in the Hal Baldwin Municipal Complex Council Chambers, 1.400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to -wit: Mayor Michael Carpenter Mayor Pro -Tem Cedric Edwards Councilmember Mark Davis Councilmember Ralph Gutierrez Councilmember Scott Larson Councilmember David $ agliola Councilmember Angelina Kiser Councilmember Beni Crawford EDC Board Members: EDC Board Member Victoria Readnour EDC Board Member Roy Richare EDC Board Member Paul Macaluso EDC Board Member Katie Chain EDC Board Member Gary Howell Staff Present: Executive Director Brian James Executive Director Kyle Kinateder City Attorney Dan Santee Deputy City Secretary Donna Schmoekel Mayor Carpenter called F1 Mayor Carpenter provided the - opening pry the United States and the State of Texas. Call to Order — Joint Workshop Session ity Manager John Kessel . e utive Director Dudley ss stont to the City Mana itv Secretary Brenda Der to order at 6:00 p.m. air Sarah Gonzalez of the United States and State of yer followed by the pledges of allegiance to the flags of Mayor Carpenter called the City Council Special Joint meeting to order at 6:02 p.m. B. Schertz Economic Development Corporation EDC Board Member Gary Howell called the EDC Special Joint meeting to order at 6:02 p.m. 12 -12 -201.7 Minutes Page -1- Mayor Carpenter welcomed all the Economic Development Directors. Workshop Item • Overview of Efforts to Implement the Historic Downtown/Main Street Schertz Plan. (B. James) Mayor Carpenter recognized Executive Director Brian J. stating back in 2013, Council passed Ordinance 13 -5 -31, w Comprehensive Plan. Generally referred to as the Sector regard to the Historic Downtown of Schertz. This doeur move with regard to the Main Street area. Additionally, bond for Main Street prior to this adoption helped shade, th( A challenge is that Main Street includes a rnix of retail, residential uses. However, zoning is mostly General Busi; pretty typical. What staff heard from the stakeholders, is a c within downtown to be a catalyst for downtown redevelops start with such as the bond funding Qf about $1 million. T1 78, there is an existing stable neighborhood to the north of family buildings could be adaptively reuses(. "Phis is helpful. Some constraints and redevelopme as a catalyst or 0i The vision we ha local and. , indent lyho introduced this item as an update to the City's this included Part 4 with fablished the direction to arnroval of a $1 million office, service, restaurant and ess and R -2. However, this is -sire to have a gathering place lent. It helps to have money to ere is good visibility from FM Lain Street and existing single- hat most of the 'area is ` in the '100 -year flood -plain so development ts`�vill be higher. Also, $1 million is not necessarily enough to serve point for change. �,erage Sehertz's history and heritage, create a destination with ;finesses (Already occurring), encourage the use of existing 1 unifying identity through gateways and streetscape elements, activated civic spaces anchoring existing successful and new A that. while there are few vacancies on Main Street today, it is of Main Street. Mr. James provided a picture /map of the area member recommendations are to establish historic fagade and evaluate and modify building and site development standards. rig standards and amend them to allow easier redevelopment. to make it easier to develop temporary uses and revise off street Actions we have taken to date are: 1) drainage regulation tweaks for Main Street, 2) waiver of permit fees, 3) creation of Main Street Mixed Use Zoning District, 4) creation of the Main Street Grant Program, 5) Historic Committee Efforts—Landmark Designation, Mural, etc., and 6) San Antonio River Authority (SARA) study of the Cibolo Watershed. 12 -12 -201.7 Minutes Page - 2 - Our next steps are to revisit the goal and structure of the program with Council (commercial only match level, maximum amount). We want to present potential modifications to the local floodplain ordinance while remaining in compliance with State and Federal regulations. We also want to seek additional funding to maximize the impact of Main Street Bond Improvements. We have the $1 million from the Main Street bond. We also have about $400,000 from the 2009 street bond and lastly, we would like to look to EDC for maybe $300,000 or as high as $500,000. Some desired improvements include: 1) Union Pacific Park monuments, 3) Decorative lighting in key locations, 4) Fill outs to frame parking at intersections, 6) Decorative Ornamental benches and trash cans 8) Design and coating Seal Street. Once we know our funding level, we can reach .out to our Subsequent discussion and dialog between staff, included parking issues, flood plain costs and require EDC funding restrictions, public safety improvemct preservation, need for a local flavor gathering place Board Members provided a nod to staff to move fot them for final funding dollar approval A. Schertz City Mayor Carp( IC Mayor Carpenter t. Development, 2) Entry s in sidewalks, 5) Bump at key intersections 7) >sts, and 9) Fog or Chip meeting. aril, and EDC board members ts, renovation /construction costs, lighting, area beautification and locals as well as tourists. EDC d Orovidina information back to Council Special,, meeting at 7:02 p.m. the EDC Special Joint meeting at 7:02 p.m. 's section of the agenda. following individuals who spoke: • Ms. Michele Tereletski, 705 Marilyn Drive, who spoke regarding Item 5, the amendment to the Unified Development Code establishing a Building and Standards Commission and not understanding the action; she requested staff assist her in her questions, • Mr. Duane Conques, 4301 Shady Oaks Lane, who spoke regarding dedicating a parcel of land in front of Oak Forest and adjacent to FM 3009 after the man who donated it to the City of Schertz, Coy Simmons. • Ms. Mary Whitfield Burks, 3737 Pebble Beach, who spoke regarding a letter her daughter wrote requesting No Name Park be named after her for her service on the City Council Advisory Committee many years ago. 1.2 -12 -201.7 Minutes page - 3 - • Mr. Nick Morgan, 2520 Cedar Lane, and 533 Main Street, who spoke regarding his upcoming business that he will be opening up on Main Street and the agreement to have revitalization occur on Main Street. City Events and Announcements • Announcements of upcoming City Events (B. James /D. Wait /S. Gonzalez) Mayor Carpenter recognized Executive Director Dudley Wait announcements: Thursday, December 14' The Chamber's Welcome Center. Celebrate the Tuesday, December 19th 5:30 pm Citv Council Meeting, Council Chambers, 6:00 Monday, December 25' City Offices Closed Monday, Janua City Offices Cln Saturday, Janu, Polar Bear Plun Sponsored ' by`, ynca.org /polarb includes s'mores [ul the following In v Interiors. the Schutz Family 'YMCA. Cost is $1.0.00. Register online at eplunge or in person at the Schertz Y. This fun family friendly event and hot chocolate. and recognitions by City Manager (J. Kessel) r recognized City Manager John Kessel who provided information on the -loure at Live Oak and Schertz Parkway. Mr. Kessel also provided an ertz Parkway Project. • Presentation regarding the 2017 . Healthy Workplace Recognition Program in collaboration with the San Antonio's Mayor's Fitness Council. (D. Wait /J. Kurz) Mayor Carpenter recognized HR Director Jessica Kurz who provided information on the 2017 . Healthy Workplace Recognition the City recently received. Highlights included: 1.2 -12 -2017 Minutes page - 4 - • Membership -based organization of local employers and providers of worksite wellness programs and services. • Aims to improve the health of the San Antonio Workforce by providing the business community with opportunities to network, discuss best practices, promote worksite wellness initiatives, and recognize local employers for their efforts to improve employee health and wellness. • Established in 2010 to bring a new level of awareness to healthy living. • Mission is to lead San Antonio to be one of the he lthiest and most active communities in the nation, in which residents and organizations work collaboratively to achieve targeted health and mess goals. Recognition Criteria: Category 1 — Culture — City they had initiated Lunch N Learns, Fitness & We] and Humana GO365. Plans are already being implemented to achi thanks were provided to: City Council, City Public Affairs & Events Staff and Human R • Presentation regarding the Festival Mayor Carpenter recognized Public A on the recent Festival, of Angels event next year. Workshop S sil event. (S as Klepper /M. Spence) iKlepper who updated Council information for more expansion y name the park located on the west side of Park Drive and Jonas Drive. (B. James /C. Van Mayor Carpenter recognized Assistant Parks Director Lauren Shrum who introduced this item "4ating the City o Schertz Parks, Recreation, and Community Services Department took over the maintenance of an approximately 2 -acre parcel of land adjacent to the south- bound side cif the ,Schertz :Parkway between the Ashley Place and Jonas Woods subdivisions in May of 2016. Although the City of Schertz owned the property, there was confusion on the part of the City and the Ashley Place HOA as to who actually owned the property and, therefore, who maintained it. In May of 2016, this question was answered through an investigatory effort initiated by the Ashley Place HOA whereby ownership, and maintenance responsibilities, were properly identified. The Parks Department took over the maintenance responsibilities for the property at that time. The property was referred to as No Name Park but as no improvements have been made to the property the issues of formally naming the park was not addressed. Staff is working on a proposal to install exercise equipment on the property. 1.2 -12 -201.7 Minutes Page - 5 - On June 1.3, 2017, . Council officially requested that this park naming item be taken to the Parks and Recreation Advisory Board to consider naming the park as Earl Sawyer. The Parks and Advisory Board considered the item at their July 24, 2017 . meeting. After discussing the matter, the Board recommended the property be named "No Name Park ". The Parks Department did not find a readily apparent geographical, ecological, or historical name for the property. Staff presented this recommendation to City Council on August 29, 2017. Council directed staff to develop a process to solicit input, f names for the park. City staff developed a public input strategy to solicit that input process through the Parks Advisory Board The strategy was to advertise that the City was solid park. Staff then advertised that process through th 'ch at the park location, and in- person via staff intercept;, park. Naming suggestions were to include `short F citizen felt the names were appropriate. Initial results were shared with the Parks Advisory Beard at their meeting on Oct. 23, 2017 and the board requested the public input process continue for one more month until the next meeting. Approximately 90 suggestions were received. All +of the names were provided to the Parks Advisory Board to review and a summary of the submissions was created based on the categories in the Naming Policy: geographical location, ecological feature, historical reference, and non - living, person. Mayor'. Carpenter recognized Mayor Pro-Tern Edwards who moved seconded by Councilmember Kiser to name No Name Park Mary Whitfield Burkes Park. The vote was unanimous with Mayor -Pro -Tem Edwards, Councilmembers Davis, Gutierrez, Larson, Scagl ola;' Kiser and Crawford voting for and no one voting no. Motion passed • 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) Mayor Carpenter recognized Deputy City Secretary Donna Schmoekel who provided information regarding fees charged by the City Secretary Department as well as the fees charged by the GIS Department. Assistant Parks Director Lauren Shrum also provided a brief explanation of the fees charged by the Parks Department. Director of Finance James 12 -12 -2017 Minutes Page - 6 - Walters provided information that it has been 3 years since the GIS Department sold any maps and therefore will be recommending that future requests for maps be placed under the Public Information Act regulations to provide such a document. Questions and comments from Council were addressed. • 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) Mayor Carpenter opened this up for Council discussion. Councilmembers provided their thoughts and views regarding this item and the need for guidelines. They discussed the need for guidelines regarding any City related social media sites and avenues that elected and appointed officials could post to. Councilmembers also discussed the pros and cons for guidelines on private social media outlets. Members discussed that we have already requested the legal team to make a presentation regarding this and until they receive this information, an item should not be placed ori' another agenda. Mayor Carpenter recognized Councilmember Scagliola 'who moved seconded by Councilmember Kiser to place an item on a future agenda establishing a set of guidelines or policy for use of social media, public or private, by elected and appointed officials in the City of Schertz. Mayor Carpenter called for the vote on the amendment. The vote was 3 -4 -0 with Mayor Pro -Tern ' Edwards Councilmembers Davis and Scagliola voting for and Councilmembers Larson, Gutierrez, Kiser and Crawford voting no. Motion failed. Mayor Carpenter requested Councilmember Scagliola restated his motion, which was he moved seconded by Councilmember Kiser to place an item on a future agenda establishing a set of guidelines or policy for use of social media public or private by elected and appointed officials in the City of Schertz. The vote was 5 -2 -0 with Mayor Pro -Tem Edwards, Councilmembers Davis, Scagliola, Kiser and Crawford voting for and Councilmembers Larson and Gutierrez voting no. Motion passed 12 -12 -201.7 Minutes Page - 7 - Discussion and Action Items 2. Ordinance No. 17 -B -52 — Consideration and /or action authorizing the issuance of City of Schertz Texas Genera] 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 azi �Ofective date. First and Final Reading (J. Kessel/J. Walters /M. McLiney) Mayor Carpenter read the following into record: ORDINANCE NO. 17- Mayor Carpenter recognized Andrew Friedman, Managing Director of SAMCO who introduced this item stating the City Council at its December 5, 2017 meeting authorized city staff and, onsult tits to proceed with a refunding of its General Obligation Bonds, Series 2008 f6r debt, service savings. 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 1 &S tax rate and the I &S supported debt service is anticipated to decrease by $67,000 per year because of this refunding. The below is the proposed time table: 12 -12 -2017 Minutes Page - 8 - th Tuesday, December 5 th Thursday, December 7 th Tuesday December 12 th Thursday, January 4 Council grants permission to proceed with financing plan as presented Bids are due at noon from potential purchasers Council review bids and awards sale to the best bidder (assuming, savings is worth pursuing) ;s; Funds wired to the District's the for the refunding bonds 3. Ordinance No. 17 -L -51 - Consideration and /or action to amend the Code of Ordinances of the,, City of Schortz, Texa :by revising" Chapter 50, Article VII, Garage sales to eliminate the, requirement ter a permit and modify the existing regulation. First Reading (B. "James/L. Wood) ter read the following into record: ORDINANCE NO. 17 -L -51 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 1.2 -12 -201.7 Minutes Page - 9 - Mayor Carpenter recognized Development Services Director Lesa Wood who introduced this item stating 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 h)eighboring city's garage sale regulations and permitting requirements. Staff reviewed .information from Live Oak, Universal City, Selma, Cibolo, New Braunfels, San Marco Is 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 City municipal complex, complete an appli� signs per the ordinance. Over the last fh garage sale permits a year collecting an a) cost of a garage sale permit is $22.00. Staff is proposing to eliminate the but continue to maintain certain re City of Schertz a resident must come to the q, pay the fee and be issued City authorized ;rs the City has issued an ' average of 445 ;e of $11;000 per year in fees. The current was modified in order to remove the definition for an This City will not issue signs for garage sales with the to allow residents to conduct garage removed. This section is not needed with the ent of garage sale signs was modified to add the maximum location of sign placement and removal of signs. • Sec. 50 -230 Time limit for each garage sale was modified to change the opening operationalhours 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). 12 -12 -2017 Minutes Page -10 - • 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. 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. Staff recommends approval. Staff addressed questions from Council. Council also expressed their concerns on bandit signs being a problem as well as those who possibly might abuse the 4- garage sale limit per year. Mayor Carpenter recognized Councilmember Larson : 'vho moved seconded by Councilmember Crawford to approve Ordinance No. 17- L- 51,frrst reading. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Davis, Gutierrez, Larson, Scagliola, Kiser and Crawford voting for and no one voting no. Motion passed. 4. Ordinance No. 17 -K -49- Conduct a public hearing and, consider action,o n ordinance closing and abandoning a section of Savannah Drive right of way to the abutting property PfI owner, located southwest of the intersection of Sav nnah Drive and Big Horn Trail. First Reading (B. James/ L. Wood/ B. Cox) Mayor Carpenter read the fo 'i 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 1.518. 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. 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. 1.2 -12 -201.7 Minutes Page - 11 - 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. Mayor Carpenter opened the public hearing and recognized the following who spoke: • Ms. Ruth Shropshire, 3521 Big HornTrail, who spoke in favor of this item. As no one else spoke, Mayor Carpenter closed the public hearingf£or Council comments. No discussion from Council occurred. Mayor Carpenter recognized Councilmember Councilmember Gutierrez to approve Ordinance N unanimous with Mayor Pro -Tem Edwards, Larson, Scagliola, Kiser and Crawford voting passed. moved .K, for and no one seconded by The vote was s, Gutierrez, s no. Motion 5. Ordinance No. 17 -S -50 - Conduct a public hearing and consideration and /or action on an PH amendment to the Code of Ordinance and Unified ,Pevelopment Code of the City of Schertz, establishing a Building and Standards Commission, providing a criminal Penalty, providing for publication, and providing an effective dato,: First Reading (B. James/ L. Wood/ E. Grobe) Mayor Carpenter read the following INANCE NO. 17-S-50 AN ORDINANCE , 'OF THE CITY OF SCHERTZ, TEXAS, AMENDING THE CODE OF ORDINANCES C1MF THE CITY OF SCHERTZ, TEXAS; ESTABLISHING A " BUILDING AND STANDARDS COMMISSION; PROVIDING :A' .CRIMINAL PENALTY; PROVIDING FOR PUBLICATION; AND PROVIDING' AN EFFECTIVE DATE. Mayor Carpenter recognized Planner I Emily Grobe who introduced this item stating in October,017 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, 1.1, 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 24'h 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. 12 -12 -2017 Minutes Page -12 - 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. The purpose of this ordinance is to create the justification and prociedures 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. • Creation of the procedures governing the Building and Standards Commission • 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. 12 -12 -2017 Minutes Page -13 - Ms. Grobe stated this amendment was drafted by Planning Staff and by the City Attorney (Daniel Santee, Denton Navarro Rocha Bernal & Zech). Mayor Carpenter opened the public hearing and as no one else spoke, Mayor Carpenter closed the public hearing for Council comments. Councilmembers provided their comments and questions to staff, as well as requested more information be provided and that in light of the resident who spoke on this item wanting more information they would recommend postponement. Mayor Carpenter recognized Councilmember Crawford who moved seconded by Councilmember Larson to postpone Ordinance No. l 7 -S- 0 on first reading. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembi rs Davis, Gutierrez, Larson, Scagliola, Kiser and Crawford voting for and no ono voting no. Motion passed. 6. Resolution No. 17 -R -114 - Consideration and/or action approving a Resolution authorizing a Sidewalk Easement Agreement with Zeenat & Salim- lnvestments, Inc.,"for the use and control of the City of Schertz for the construction and maintenance of a sidewalk facilities. (B. James/K. Woodlee) Mayor Carpenter read the following into RESOLUTIO 17- UNCIL OF THE CITY OF SCHERTZ, TEXAS AGREEMENT WITH ZEENAT & SALIM USE AND CONTROL OF THE CITY OF ION AND MAINTENANCE OF SIDEWALK I2S IN CONNECTION THEREWITH 'Mayor Carpenter recognized Executive Director Brian James who introduced this item staying in February '2017, Ford Engineering was contracted to perform the engineering desigri fox 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. 12 -12 -2017 Minutes Page -14 - 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. Staff recommends approval. Mayor Carpenter recognized Mayor Pro -Tem Edwards who moved seconded by Councilmember Crawford to approve Resolution No. 17 -R -11.4. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Davis, Gutierrez, Larson, Scagliola, Kiser and Crawford voting for and no one voting no. Motion passed. 7. Resolution No. 17 -R -119 - Consideration and/or action approving aResolution appointing a Director of the Tax Increment Reinvestment Zone Number Two, City of Schertz and related matters in connection therewith. (B. James /B. Dennis) Mayor Carpenter read the following into record: 171 13 11111 Y 111.Nsc re IM I 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 ,r, Brian James who introduced this item ved Resolution 17 -R -18 appointing John penter Chris Price, and Gary Inmon be Dahle be appointed to replace former P &Z K Reinvestment Zone (TIRZ) Number Two 018. Mayor Carpenter moved seconded by Councilmember Larson to approve Resolution No. 17 -R -11.9. The vote was 6 -0 -1 with Mayor Pro -Tem Edwards, Councilmembers Davis, Gutierrez, Larson, Scagliola, and Kiser voting for and Councilmember Crawford abstaining. Motion passed. 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) 12 -12 -2017 Minutes Page -15 - Mayor Carpenter read the following into record: 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 Mayor Carpenter recognized Executive Direct stating On October 25, 2016 City Council authc agreement for a pre - packaged waste water tie temporary Woman Hollering Creek Treatin( temporary plant was installed in 2006 to servic permanent waste water treatment plant could be As a result of the increasing wastewater 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 ex would take,the current 46,000 gallon a day plant to a 92,000 gallon a day capacity. On 7aanuary 11, 20171 Tublic Works crews inspecting the sewer system in the Crossvine found'a faulty pipe conhection 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 groundwater, 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 12 -12 -2017 Minutes Page -16 - 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. 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 ]eased pre - packaged waste water treatment plant serving the Crossvine development. Mayor Carpenter recognized Mayor Pro -Tem Edwards who moved seconded by Councilmember Davis to approve Resolution. No. 17 -R -113. The vote was unanimous with Mayor Pro -Tem Edwards, CounciImembers Davis, Gutierrez, Larson, Scagliola, Kiser and Crawford voting for and no one votiu<g no. Motion passed. 9. Resolution No. 17 -R -115 - Consideration and/or, action approving a Resolution authorizing the City Manager to emdr into an agreement with Stryker EMS Equipment for the purchase of five (5) stretchers, ,upgrade three (3) curremt ' stretchers and add service agreements on all stretchers and stretcher loading systems. (D. Wait /J. Mabbitt) Mayor Carpenter UTION 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 O ' FIVE (5) STRETCHERS, UPGRADE THREE (3) CURRENT STRETCHERS AND ADD SERVICE AGREEMENTS ON ALL STRETCHERS. Mayor Carpenter recognized Councilmember Larson who asked if he may make a motion to approve Resolution No, 17 -R -115 and Resolution No. 17 -R -117 on consent. Mayor Carpenter stated that a motion has been made to move agenda items 9 and 10 to a consent format, seconded by Mayor Pro -Tem Edwards. Mayor Carpenter stated that the first we will do is if the motion passes he will revisit these two items and read both captions to make sure that we follow the rules as if we were already under consent and he will take it up in that manner. Mayor Carpenter recognized Councilmember Larson who requested a point of information that may he simply make a motion to approve Resolution No. 17 -R- 115 and Resolution No. 17 -R -117? Mayor Carpenter stated that the Charter states that we take up items and our rules require that we take up items with a single question even if Council is in unanimous agreement that we do not do it that way we will take it up as one 12 -12 -201.7 Minutes Page -17 - question at a time and if Councilmember Larson would be willing to withdraw the motion and then make a motion to approve Resolution No 17 -R -115 he would certainly entertain a motion. Councilmember Larson withdrew both motions and made a motion to approve Resolution No. 17 -R -115, seconded by Councilmember Davis. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Davis, Gutierrez, Larson, Scagliola, Kiser and Crawford voting for and no one voting no. Motion passed. 1.0. 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.,llabbitt) Mayor Carpenter read the following caption: RESOLUTION NO. 11. Resolution No: '17- R -116r — Consideration and/or action approving a Resolution . authorizing expenditures in excess of $50,000 with the highest single vendor contract not exceeding $665,00t nd tho, total contracts not exceeding $1,193,000 and as approved in the 2017 -2018 fiscal year budget 1*tir the City's Vehicle Replacement Program. (D. Wait /J. Carpenter record: LUTION NO. 17 -R -11.6 3Y "THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS ,XPENDITURES IN EXCESS OF $50,000, WITH THE HIGHEST t CONTRACT NOT EXCEEDING $665,000 AND THE TOTAL N,CTS NOT EXCEEDING $1,193,000, AND AS APPROVED IN FISCAL YEAR BUDGET, FOR THE CITY'S VEHICLE PROGRAM AND OTHER MATTERS IN CONNECTION Mayor Carpenter recognized Human Resource Director Jessica Kurz who introduced this item stating The City has taken a comprehensive approach in developing a cost - effective fleet replacement program. Best practice fleet operations have been integrated into the 1.2 -12 -201.7 Minutes Page -18 - 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 apprved 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 tc exceed amount, item(s) to be purchased, and benefited department are listed below. The City has historically purchased vehicles and oquiprnent from'' purchasing cooperatives. This has allowed the City to procure vehicl and capitalize on volume discounts. For FY 2017 -1.8, the City anticif outfitting of vehicles and fleet equipment froin'the following vendors. Vendor Silsbee Ford Office Fleet Safety Equipment Doggett Freightliner 1.2 -12 -201.7 Minutes $64 $70,000 1ply $80,000 $20,000 $71,000 $112,000 Page - 19 - Aeanir g Truck (l ) Truck (1) Truck (3) Truck (1) Additional expenses for fleet/maintenance repairs Item SUV (1) SUV (1) Vehicle Outfitting Additional expenses for fleet /maintenance repairs Vehicle Outfitting Dump Truck belonging to ;h best -value aurchase and Department Marshal's Public Works Public Works Animal Services Facility Services Purchasing All Departments Department Fire EMS All Departments Police Public Works $25,000 Additional expenses for fleet/maintenance repairs RDO Equipment $55,000 Skid Steer Parks $20,000 Additional expenses for fleet /maintenance repairs Motorola $75,000 Vehicle Outfitting Fire, EMS, Police Other ernerncy telecommunication equipment 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 S' ' ly, 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 -1,8,, and up to $75,000 with Motorola for related Mayor Carpenter, reognized = Cruncilmember Crawford who moved seconded by Councilmember Kiser Io approve Resolution No. 17 -R -116. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Davis, Gutierrez, Larson, Scagliola, Kiser and; Crawford voting for and no one voting no. Motion passed. Mayor Carpenter recognized City Secretary Brenda Dennis who provided the roll call vote for two Workshop items and Agenda items 2 -11. Requests and Announcements 1.2. Announcements by City Manager. No further announcements were made. 12 -12 -2017 Minutes Page - 20 - 13 14. Mayor and Council members to request that items be placed on a future agenda. Mayor Carpenter would like a short briefing on the changes we made to our UDC where Council can in fact remove bandit signs over the weekend when we do see them. He believes we made a change there. Let us know where we are on that. Announcements by Mayor and Councilmembers Mayor Carpenter recognized Councilmember Ral Movie in the Park event this past Saturday. Special and to Crossvine for sponsoring the event, Mayor Carpenter represented at the Irene for helping e Mayor C were not to say th, the narad Mayor Carpenter t support at the Cib ambassador for the he appreciates the 1 recognized C "-ibolo parade. e to rez who said he attended the our Parks and Recreation staff said Schertz was well Mary Spence, Sam and member, Kiser who said since the Schertz Sweethearts it was available for Council. She said she just wanted it r presentative for this city - -- people just loved him at d alone to him. ized Councilmember Crawford who thanked the Mayor for his arade. ' Mary Spence did a superb job and Sam should be an of Schertz to make people dance on parades. He was superb, and at Mary and other staff provided. He also appreciates the time that go. Mayor Carpenter, stated that on Saturday, mid -day, he was able to attend a reception for Lt. General Quast and other senior officers at Randolph. It was a good social gathering /meeting. The level of cooperation we have between the various cities and Joint Base San Antonio is in a very strong position. In fact, the Northeast Partnership recently met and identified a primary goal for the upcoming year in listing all of the Emergency Operations assets that the member cities have as well as primary points of contact for each city. The General was very interested in the base also participating in the exercise of sharing information in the event of a regional emergency. 12 -12 -2017 Minutes Page - 21- Adjournment As there was no further business, Mayor Carpenter adjourned the meeting at 9:57 p.m. Michael R. Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary 12-12-2017 Minutes Page - 22 - Agenda No. 2 CITY COUNCIL MEMORANDUM City Council Meeting: December 19, 2017 Department: Planning and Community Development 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. (Final 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 1.7 -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 ME ME z IM 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. 3 CITY COUNCIL MEMORANDUM City Council Meeting: December 19, 2017 Department: Planning & Community Development Subject: Ordinance No. 17 -K -49 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. (Final reading) BACKGROUND 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 1.7 -K -49. FISCAL IMPACT I�►�i'ii T-a 1• Staff recommends approval of Ordinance No. 17 -K -49. ATTACHMENT Ordinance No. 1.7 -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 Agenda No. 4 CITY COUNCIL MEMORANDUM City Council Meeting: 12/19/2017 Department: EMS Subject: Resolution No. 17-R-121 Authorizing the City Manager to enter into an agreement with Physio- Control, Inc. for the purchase of ten (10) Chest Compression Systems (LUCAS device). Background The use of a Chest Compression System has shown to improve coronary perfusion pressure during cardiac arrest. Improving coronary perfusion pressure improves oxygenation of the heart and increases the likelihood of successful defibrillation into a perfusing rhythm and return of spontaneous circulation. Schertz EMS currently has nine (9) Chest Compression Systems (LUCAS) in our ambulances and one (1) device in our Supervisor vehicle. The manufacturer recommends replacing these devices after seven (7) years of service. Nine (9) of the devices were purchased in 2010. As part of our equipment replacement plan, we were going to purchase two (2) new LUCAS devices every year to rotate through older devices. Currently, LUCAS devices cost approximately $16,000. Physio - Control currently has a five (5) year no interest lease to purchase promotion, which would give us an opportunity to replace all LUCAS devices at once. These new devices are the next version of the Chest Compression Systems or LUCAS 3. Also included in the lease is a five (5) year service plan which includes on -site annual preventive maintenance and inspections, updates to the software and a loaner device at no cost, if needed. There are two manufacturers of Chest Compression Systems however, clinically, they operate very different from each other with the LUCAS device being the only pneumatic chest compression device available in the United States. Dr. Donovan Butter, D.O. the EMS Medical Director continues to support the data and patient studies behind the LUCAS device. For this reason, we continue to pursue the Physio Control LUCAS device as a sole source purchase. Goal To authorize the City Manager to execute the contract with Physio Control for the lease /purchase of ten (10) Chest Compression Systems (LUCAS 3). Fiscal Impact The lease /purchase of these devices and service agreements will be funded through the EMS Department from account 280 - 551800. The annual lease payment will be $32,278.40. This includes a trade -in for nine (9) of our current LUCAS devices ($3,000 each) at a value of $27,000. Our tenth device will be transferred to the Fire Department to be placed on Engine 3 when Station 3 is completed. The offer of a no interest lease to purchase option and the qualifying discounts of $33,293.00 will end December 31, 2017. The total amount that will be paid over the five (5) year lease /purchase agreement is $161,392.00 Recommendation Approval of Resolution 17 -R -121 Attachment(s) Resolution 17 -R -1.21. Quote from Physio Control Lease /Purchase Agreement Sole Source Letter from Dr. Butter RESOLUTION NO. 17 -R -121 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH PHYSIO- CONTROL, INC. FOR THE LEASE /PURCHASE OF TEN (10) CHEST COMPRESSION SYSTEMS. WHEREAS, Schertz EMS has a need to acquire ten (1.0) replacement Chest Compression Systems; and WHEREAS, Schertz EMS has selected the Physio - Control, Inc. LUCAS system with the corresponding service agreements; and WHEREAS, pricing was obtained from Physio- Control, Inc. 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 Chest Compression Systems and service agreements through a five (5) year lease /purchase agreement; 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 accept the quote attached in Exhibit A and enter into a five year lease purchase agreement with Physio- Control, Inc. in the amount of $32,278.40 annually for five (5) years for a total of $161,392.00. 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 19th day of December, 2017. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) EXHIBIT A 50234811.1 A -�. To SCHERTZ EMS Attn: Jason Mabbitt, EMS Director 1400 SCHERTZ PKWY SCHERTZ,TX 78154 (210) 619-1400 jmabbit!�a schert�.com Quote Number 00105481 Revision # 1 Created Date 12/7/2017 Sales Consultant Chad Lewis (210) 884-0891 chad,lewisflphysio-control.com FOB Redmond, WA Terms All quotes subject to credit approval and the following terms and conditions NET Terms NET 30 Subtotal Estimated Tax Estimated Shipping & Handling USD 161,207,00 USD 0.00 USD 185,00 Tax will be calculated at time of invoice and is based on the Ship To location where product will be shipped. Quote Number: 00105481 NNINSIGINDIM List Price Total Total Contract Discounts Amount Total Discount Trade In Discounts Tax + S&H AND TOTAL FOR THIS QUOTE USID 161,392.00 Please provide a company issued Purchase Order that includes Billing and Shipping Address. PO must reference payrneritterms of Net 30 days- - OR — RpquirF,,d information if no Purchase Ordpr is provided Bil 11[ing Address same, as address en quote Account Name Address City State Zip Code Accounts Paya 66€ Contact I nformatiDn Accounts Payable Contact Accounts Payable Email Author[tzed,Custiarner Signature Name Title, special Ship to Address Shipping Address same as BiMng A d d re, ss Account Name Address City State Zip Code Accounts Payable Phone Number CustGmer is Tax Exempt? Yes No Signature Gate Quote Number: 00105481 ,General Terrn s fo rall Prod u cts. Services-and Su b Ercriptihanha. Physic Control, Inc. f'Physio') accepts Buyers order expressly conditoned on Buyer's assent to lie terms set forth in this document. Buyer's order and acceptance Qfany portion ofthegoods, services car subscriplonsshall confirm Buyer's acceptanceof these terms. Unless spedfiedol-herviiseherein, these terms constituted ie complete agreement between tie parties. Amendments to this document shall be in writing and no prior or subsequent acceptance by Seller of any purchase order, ackno'Medgment, or other docurnerit fro m Buyer specifying different ancidhor additional terrns shall be effective unless signed by bath parties. Pricing. Prices do not Include freight: insurance, freight forwarding fees, taxes, duties, import or eKport permit fees, or any other similarchargeof any kind applicable to the goods and services. Sales or use taxes on domestic (USA delivenes will be in-voiced in addition to the pace of the goods and sera ices unless Pliysich recery es a copy of a valid ex empton certiti cate p nor to delivery. Di s co unts may not be co m bined with other s pecia I teri n s I d iscounts, an d/or p romoti ons. Payment. Pay m ent for goods and services shall be s utj hect to app rov a] of or it by Pliy sio. Unless oth ervAs e sp ecift ed by Physic in waiting, the entire p ay ment of an Invoice is d u e thirty (3ql days after the invoice date for d efiv eries. in th e U SA and sight draft or acceptabi he (confi mi ed) I rr hevoahapl e I etter of credit I s r equi red to r s ales ho uts ide in a U SA. MinurnurnOrderQuantity. Physio reservesthe rightto charge aservicefeefor any order less than 520D.00. Patent Indernanhy. :Physio shall inderrin ty? Buyer and hold it harmless fro m and against all demands, d ai ms, damages, to ss es, and expenses, arising out of or resLdting, from any action by a. third party against Buyer that is based on any claim that the service-, infringe a United States patent, copyright, or tradernark, or violate a trade secret or any other proprietary right of any person or entity. Ptty5-0.�; . Indemnification obligations hereunder %vill be sutler-t to (i) receiving prompt written notice of the existence of any. claim, (ii) being able to at its option; control the defense and settlement of such calm (provided that, Wthout obtaining the prior written consent of Bi-pyher, Physio 'will enter into no settlement invorving the admission of wrongdoing): and (ifl) receiving full cooperation of Buy erin th e defens e of an y claim. Limitation of triterest. Through the puircha-she ofPtTysio products, services, or subscriptions, Buyerdoes not acqLdre any interest in any tooling, drawings, design information, computer programming, patents or copyrighted or comi'dental information related to said products or services, and Buyer expressly agrees not to reverse engineer or decompile such products or related software and information. Delay%. Pl-hysiho will not be liable for any loss or damage of any kind due to its failure to perform or delays in its performance resulting from an event beyond its reasonable control, including but not limited to, acts of God; labvor disputes, tile requirements of any governmental authority, war, civil unrest, terrorist acts, delays in manufacture, obtaining any required license or permit, and Physioinability to obtain goods from its pus ualsources. Limited Warranty. Physich warrants its products and services in accordance with the term-, of the limited warranties located at ientsi. The remedies provided under such warranties shall be Buyer's sole and exdusirihs remedies. Physio makes no other warranties, express or implied, including, Without limitation, NO WARRANTY OF MERCHANTAMILITY OR FITNESS FOR A PARTI[CULAR PURPOSE, AND IN NO EVENT SHALL PHYSIO BE LIABLE FOR INCIDENTAL,CONSEQUENTIAL, SPECIALGROTHER DAMAGES. Cornp,liance with Confidentiality L s. Both parties acknovdedge their respective obligations to maintain tile security and confidentiality of individually identifiable health information and agreeto comply with applicable federal and state health informaton confidentiality laves. Chorniphance with Law. The parties agree to comply mhith any and ail lavvsz rules7 rer 4ulations, licensing requirements or -standards, that are now or hereafter promulgated br any local, state, and federal governmental aulhoritylagency or accreditingladministrative body that governs orappliesto their respective duties and obligation5 hereunder. Regulatory Requirement for Access to Inforrimatiom. In the event 42 USC § 1 a9Bx(vX1 XI) is applicable, Physic shall make available to the Secretary of the United States Department of Health and Human Services, the Comptroller General of tile United States General Accounting Office, or ar-fy of their dLdy authorized representatives, a cchpy ofthese term-,, such books, documents and records as are necessaryto certify the nature and extent of the costs ofthe products ands era ices provided by Physic. No Debarment. Physio represents and warrant, that it and its directors, officers, and employees (I) are not excluded, debarred, or obiermse, indigide to participate in the Federal health care programs as defined in 42 USC § 13213a-7b(f)" (n) have not been convicted of a criminal offens he related to the provision of h ealthr-are items or services; and (iii): are not Lind er investigation vehich may result I n Physio being ex d uded fro rn participation in such programs. ,Choice of Law. The rights and obligations of Physio and Buyer related to the purchase and sale of products and -services described in tines document shall be governed by the I aw-s of the state wfiere Buyer is located. AI costs and exp ens es incurred by the prevailing party related to enforcement of its rights under this document, including reasonable attorney', fees, shall be reimbursed by the other party. Ad d itio nat Term s f o r Punchaseand Salle of Products. In addition to the General Terms above, the following terms applyto al I purchases of products from Physio: Delivery. Unless otherwise spedfied by Physio in writnig, delivery shall be FOB Physio point of shipment and title and risk of loss shall pass to Buyer at that point. Partial deliveries may be made and partial invoice s shall be permitted and shall become due in accordancewith the payrneritterms. In the absence ofshipping instructions from Bojer, RiysiovAll obtain transportation on BWers behalf and for Buyers account. Delivery dates are approximate. Freight is pre-paid and added to Buyers invoice. Products are s u bj ect to av ai I ab lity. 1n spect[on is and Retu m %. IN ithin W days of receipt of a shipment, Buy er sh all notify Physic of any claim ni for product damage or nonconformity. Physio, at its sole option and discretion, may repair or replace a product to bring it into conformity. Return of any product shall be governed by the Returned Product Policy located at Payment of F1t)y-sjp"s,invoiceis not co rdingerrt on im In edi ate correction of n onconform hies . No Resale. Buyer agrees that products purdiased hereundhervAll not be resold to third parties and will not be reshipped to arTy persons orplaces prohibited by the laws ofthe United States ofAm erica. In addition to th e G eneral Terms above, the following terms applyto all PhysioServi-- Plans. ,Serwce Plans. Physic shall provide services according to the applicable Service Plan purchased by Buyer and described at for the length hifth. —liscriptsho, p—hased and for th- d—ices sp—jfecl as covered by the Service Plan ('Covered Equipmenri. Prucilng. If tie number or oonfiguration of Covered Equipment changes during the Service Plan subscription, pricing shall be pro- rated accordingly. For Preventative Maintenance, Inspection Only, Comprehensive, and Repair & Inspect Service Plans, Buyer is :responsible t� pay for pi-evehit.tive, -aint— an— and :inspections that h av e been p er-fo r- ed since the last .anniversary of the s u bs on ption start date an or s uch s Pre ces shall not be prorated. rated. Ilyevrce In %pauUon Before Acceptance. A] I d ei ces th at are not cov ered ender Physjo-'S. Li mited 'VV arranty car a current Service Plan must be inspected and rep aired (if n �-ess ary) to m net sp ecificatior-rs at th en- cxa,rrent I ist prices prior to being covered uhnd er a Service Plan. Unavailothritity of Covered Equp nt.. If Covered Equpment is not made available at a scheduled service visit, Buyer is responsibleto reschedulewith the Physio Service Technician, orship-in the Equipmeritto a Physio servicedepot. Physio reserves th. right In charge Buy— . —charge for . —t— visit. Surch- 4— vAll be based on then—ent Physio list pnoe of desired se wices; less for labor and IB°G for parts, plus applicable travel costs. The return visit surcharge vAll be in addition to the subscription price of the Service Plan. To avoid the surcharge e-, Buy "er may" ship devices to a Ph ys vo service depot. Buyer sh ad :I be res p o nsibi e- for round -tri p freight fo r s hip- in s ervi ce. Unschedull-I o or U noovared Senvice,%. If Buyer red u es ts semi ces to be performed on Gov ered Equipment wAh ch are not oov ered by a Service Ran, or are outside of designated Services frequency or hours, Physio- Control will charge Buyer for such services at 10% off :Physic Control's standard rates tend tiding overtime; if approp pate) and applicable travel charges:. Repair parts red eared for s uch rep a irswi I I be rri ad e av ai labi e at 15% offth e th en- current I i st p n ce. Loziners. If 4--av ered Eq Lip m hant must be remov ed from semi ce to co mp lete rep aj rs; Phys io wil I pro vid e: Buy er with a loaner device; if one is av ail aide Buyer assumes complete response bil ity for th e- lo aii ei- and shall return tine loaner er to Physio in the same condition as : received, ed, norm al wear an d tear ex em pfted, upon on th e- ea r1i er ofth e- return ofth e rem o ved C hovered Ed u ipm env o r FJ13y_-, rpq - t. "i 9:5 U�s Can ce[,Lafi— . Buyer may c—EA a Servce, Plan upon si.by (IEO days' —itten notice to Physio. In the — ent of such — cerla tic,n Buyer shall be responsi bi e for the portion of the designated price,,vi-ii ch corresponds: to the portion of the Sew ice Ph an subscription prior to the effective date of termination and the list-price cost of any preventative maintenance, Inspections, or repairs rendered after the last st an n i versa rye date ofth e subscription start date. No Solvortation. During the Service Plan sutyscription and for one (1) year following its expiraton Buyer agrees to not to actively and intentionallysorat anyone who is employed by Physioto provideservicessuc.h as those described in the Service Plan. Quote Number: 00105481 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: December 11, 2017 CITY OF SCHERTZ, TEXAS PO BOX 1 SCHERTZ, Texas 78154 -1406 RE: Reference no: 0110034329 Thank you for choosing Flex Financial, a division of Stryker Sales Corporation, 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 & 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.warren @stryker.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, Flex Financial, a division of Stryker Sales Corporation 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 identifies 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 Flex Financial, a Division of Stryker Sales Corporation is 38- 2902424. Agreement #: 0110034329 Stryker Short Form Lease Agreement No. 0110034329 Owner ( "we" or "us ") : Flex Financial, a division of Stryker Sales Corporation 1901 Romence Road Parkway Portage, MI 49002 Customer name and address ( "You" and "Your "): Equipment location: 1400 SCHERTZ PKWY, SCHERTZ, Texas 78154 -1634 CITY OF SCHERTZ, TEXAS Supplier: Physio - Control, Inc., 11811 Willows Rd NE, PO Box 97006, PO BOX 1 Redmond, WA 98073 -9706 SCHERTZ, Texas 78154 -1406 Equipment description: (see attached Exhibit A which is a part of this Agreement.) 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 $32,278.40 (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 term 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 FLEX FINANCIAL, A DIVISION OF STRYKER SALES CORPORATION, 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 "Flex Financial, a division of Stryker Sales Corporation ". 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 Agreement #0110034329 Stryker Short Form Lease Agreement No. 0110034329 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 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, SCHIP 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 Signatures Date:= Print name: Title: Agreement #0110034329 Accepted by Flex Financial, a division of Stryker Sales Corporation Signature: Date. Print name: Title: Exhibit A to Short Form Lease Agreement Number 0110034329 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 9999 - 999 -999 LUCAS 3.0 Chest Compression System on Physio Quote 1 Number 00105481 Service coverage: Model number 9999 - 999 -999 Service coverage description Quantity LUCAS Service - 4 YEAR on Physio Quote Number 1 00105481 Years 4.0 Stryker (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) Freight: Financed Customer signature' Signature: Date:' Print name: Title: Agreement #: 0110034329 Accepted by Flex Financial, a division of Stryker Sales Corp. Signature: Date: Print name: Title: Insurance Authorization and Verification Date: December 11, 2017 To: CITY OF SCHERTZ, TEXAS ( "Customer ") 1400 SCHERTZ PKWY SCHERTZ, Texas 78154 -1634 stryker Short Form Lease Agreement Number 0110034329 From: 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' $108,575.00 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: r' Carrier policy number: Titled *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 . Th 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: $108,575.00 ATTACHED: PROPERTY DESCRIPTION FOR Short Form Lease Agreement Number 0110034329 See Exhibit A to Short Form Lease Agreement Number 0110034329 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 #: 0110034329 Stryker This State and Local Government Customer Rider (the "Rider ") is an addition to and hereby made a part of Short Form Lease Agreement Number 0110034329 (the "Agreement ") between 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, fully 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 #: 0110034329 Accepted by Flex Financial, a division of Stryker Sales Corp. Signature: Date: Print name: Title: To SCHERTZ EMS Attn: Jason Mabbitt, EMS Director 1400 SCHERTZ PKWY SCHERTZ,TX 78154 (210) 619-1400 jmabbit!�a schert�.com Quote Number 00105481 Revision # 1 Created Date 12/7/2017 Sales Consultant Chad Lewis (210) 884-0891 chad,lewisflphysio-control.com FOB Redmond, WA Terms All quotes subject to credit approval and the following terms and conditions NET Terms NET 30 Subtotal Estimated Tax Estimated Shipping & Handling USD 161,207,00 USD 0.00 USD 185,00 Tax will be calculated at time of invoice and is based on the Ship To location where product will be shipped. Quote Number: 00105481 NNINSIGINDIM List Price Total Total Contract Discounts Amount Total Discount Trade In Discounts Tax + S&H AND TOTAL FOR THIS QUOTE USID 161,392.00 Please provide a company issued Purchase Order that includes Billing and Shipping Address. PO must reference payrneritterms of Net 30 days- - OR — RpquirF,,d information if no Purchase Ordpr is provided Bil 11[ing Address same, as address en quote Account Name Address City State Zip Code Accounts Paya 66€ Contact I nformatiDn Accounts Payable Contact Accounts Payable Email Author[tzed,Custiarner Signature Name Title, special Ship to Address Shipping Address same as BiMng A d d re, ss Account Name Address City State Zip Code Accounts Payable Phone Number CustGmer is Tax Exempt? Yes No Signature Gate Quote Number: 00105481 November 12, 2013 City of Schertz John C. Kessel City Manager 1400 Schertz Parkway Schertz, TX 78154 Mr. Kessel, 1400 SCHERTZ PARKWAY S HERTZ, TEXAS 78154 -1634 R. i ONOVAN BUTTER, D.O. OFFICE (210) 619 -1400 MEDICAL DIRECTOR FAX (210) 619 -1499 do novan butter@yaho o. co m I am writing in regards to the planned lease purchase of new cardiac monitors and defibrillators and a LUCAS Chest Compression System for use in patient care by Schertz EMS. This decision to purchase these monitors and LUCAS System is not one that should be entered into lightly, however I believe that the best decision is to move forward with a single vendor because their products are the only ones available that has several of the features that meet my requirements for EKG monitoring and defibrillation in the communities served by Schertz EMS. Our goal is to provide a patient monitor that will contain all of the features we currently utilize as well as adding another vital monitoring function. Physio- Control is the only manufacturer that builds a cardiac monitor that meets these needs. Defibrillation of patients in ventricular fibrillation is a topic that receives a lot of attention. Pre- hospital patient monitors all utilize "bi- phasic" wave form technology that has been shown to more effectively resolve ventricular fibrillation in cardiac arrest patients, but only the Physio- Control LifePak product has the ability to escalate the deliverable energy to 360 joules while the other two manufacturers limit their energy at 200 joules. Although Bi- Phasic technology is shown to be effective at lower energy levels, there are patients that many systems are now using a 2nd monitor to deliver 360 — 400 joules to resolve their lethal heart rhythm. This "refractory" fibrillation is only rarely seen in our system and I believe that is because we are using the higher energy level available in the Physio- Control product. Having this capability needs to be maintained going forward. In addition, in the last twelve years since we purchased our original Physio - Control LifePaks, they have added several new features: One of these is the ability to not only monitor Oxygen and Carbon Dioxide levels like we do today but to also monitor Carbon Monoxide (CO). CO monitoring is needed several times a year for patients who are suspected of having been exposed to this deadly gas. In addition, CO monitoring is critical when firefighters are conducting "overhaul" operations as structure fire operations are being completed. CO gas is a colorless, odorless gas that is not only impossible to detect in the air without a proper detector, but it is also impossible to detect in patients because they will not show signs and symptoms until their blood levels are so high that long -term damage can occur. Adding this monitor to our abilities is an added feature that will make a significant difference in the lives of our patients. These monitors, like our current ones, are to be used in the pre-hospital environment. As a result, they are meant to operate without plugging into electricity via a battery that provides numerous hours of operability before being changed out. With our current monitors, two batteries are utilized, The monitor operates off of one battery until it is depleted and then automatically switches to the second battery and notifies the user that the first battery needs to be replaced. The depleted battery can be changed without effecting any operation of the monitor and without having to shut the monitor down. Physio-Control is the only vendor that offers two batteries in their monitor with the other two manufacturers choosing to utilize a single battery that requires the monitor to be shut down to exchange batteries. The Physio-Control LifePak 15 monitor we are requesting is the only monitor in the market that has these features, Additionally, Physio-Control does not resell its monitors, choosing to direct sell all of its products directly to the market. As such, I recommend the City purchase these monitors via sole source. Lastly, the LUCAS Chest Compression System is a tool that we added approximately 3 years ago. These devices have increased our ability to successfully resuscitate cardiac arrest patients by automating the performance of CPR. This device will be added to our fleet so that every in-service ambulance can have one of these devices on it. The Physio Control LUCAS System is the only pneumatic chest compression system that is FDA approved and available in the United States. Sincerely, R. Donovan Butter, D.O. Medical Director Schertz EMS Agenda No. 5 CITY COUNCIL MEMORANDUM City Council Meeting: December 19, 2017 Department: City Management Subject: Resolution No. 17 -R -123 Approving a Resolution appointing Ken Greenwald to the Board of Directors Place D -4 of the Schertz Seguin Local Government Corporation (SSLGC) C• � 1 The Board of Directors of the Schertz Seguin Local Government Corporation (SSLGC) is made up of five seats appointed by the City Councils of both Schertz and Seguin. Each seat serves a five year term and both cities alternate filling seats every year. This method allows both cities to hold a majority on the board for no more than one year and then the majority rolls back to the other City. The SSLGC Board D -4 position currently held by Mr. Kory Kirchner from Seguin has a term that expires on December 31, 2017. This position is scheduled to be filled by the City of Schertz and the new board member will take effect January 1, 2018. It is staff's recommendation that the City of Schertz appoint Mr. Ken Greenwald to serve on the Schertz Seguin Local Government Corporation (SSLGC) Board of Directors Place D -4 for the term commencing on January 1, 2018 and ending on December 31, 2022 (the "Term" Mr. Greenwald has been involved with the SSLGC since its inception. As a part of Schertz City Council that formed the corporation in the late 90's, Ken transitioned to the Board of Directors after his tenure as a Councilmember expired. Ken has served continuously with the Board until December 31, 2016 when his last term expired. He has set out his prerequisite one year and is ready to serve again as a Director of this critical corporation. With Ken's experience and tenure and personal water knowledge, especially here in South Texas, he will be a strong voice for Schertz as we begin the construction of the parallel pipeline and the new Guadalupe well field. FISCAL IMPACT None RECOMMENDATION Approve Resolution No. 17 -R -1.23 appointing Mr. Ken Greenwald to the Board of Directors Place D-4 of the Schertz Seguin Local Government Corporation. ATTACHMENT(S) Resolution No. 17 -R -123 RESOLUTION NO. 17 -R -123 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPOINTING KEN GREENWALD TO THE BOARD OF DIRECTORS PLACE D -4 OF THE SCHERTZ SEGUIN LOCAL GOVERNMENT CORPORATION, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the City appoint Ken Greenwald to serve on the Schertz Seguin Local Government Corporation ( "SSLGC ") Board of Directors Place D -4 for the term commencing on January 1, 2018 and ending on December 31, 2022 (the "Term "); and WHEREAS, the City Council has determined that it is in the best interest of the City to appoint Ken Greenwald to the SSLGC :Board of Directors Place D -4 for the Term; therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS Section 1. The City Council hereby appoints Ken Greenwald to serve on the SSLGC Board of Directors for Place D -4 and its term. 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 19th day of December, 2017. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor ATTEST: Brenda Dennis, City Secretary (CITY SEAL) Agenda No. 6 CITY COUNCIL MEMORANDUM City Council Meeting: November 14, 2017 Department: Public Works Subject: Resolution No. 17 -R -125 - A Resolution by the City of Schertz authorizing contracts with VIP Staffing, LK Jordan & Associates and AppleOne each totaling no more than $50,000, or $75,000 cumulatively, per fiscal year for temporary staffing services. BACKGROUND On occasion, the City has a need to employ a variety of temporary skilled and unskilled labor to fulfill its mission of leading, improving and serving a livable, sustainable, and financially sound community. To ensure appropriate staffing levels necessary to maintain City business operations and standards, the City uses temporary and contract personnel on an as- needed basis. The City issued a solicitation for proposals (RFP) from qualified firms with demonstrated competence and experience in providing temporary and contract personnel services in the following areas of employment: 1. Clerical /Administrative staff (Data entry, filing, receptionist, bookkeeping, secretarial) 2. Professional staff (e.g. Executives, Accounting, HR) 3. Services staff (e.g. General labor, warehouse, maintenance) 4. Skilled Trade staff (e.g. HVAC, plumbers, electrical) Fifteen proposals were received in response to the solicitation. Proposals were reviewed by Human Resources and key City stakeholders, and scored based on criteria including cost, experience, qualifications, reputation, capability, resources, corporate history and stability. After review and negotiations with the top three firms, Human Resources recommends awarding contracts to VIP Staffing, LK Jordan & Associates and AppleOne. The proposed contracts would be in effect for an initial term of three (3) years, and may be extended for two (2) additional one - year terms with the mutual agreement and consent of both Contractor and City. Each contract includes a not -to- exceed limit of $49,999.999 in cumulative expenditures during any one fiscal year covered by the agreement term and/or any subsequent extension. All temporary staffing requests will be initiated through the Human. Resources department for an urgent need, a planned need (vacation replacements or staffing for project periods), or to fill a full time opening (to keep the work in operation during the interim to find the right individual to fill a position). These requests must be approved by the Executive Director, and will be for a pre- determined period of time. If the department anticipates the need for temp staff beyond the initial approval, the request must be resubmitted through HR and rea- authorized by the Executive Director. Human Resources will provide oversight on all contracts for temporary and contract personnel, to include monitoring expenditures, paying invoices and periodic review /audit to ensure contract compliance. IWZTG • ' • On Costs associated with the use of temporary or contract personnel will be funded by cost savings available in the budget of the requesting department (for vacant positions) or from overall city payroll savings accrued from vacant positions across the City. Staff recommends Council approve Resolution 17 -R -125 authorizing the City Manager to enter into contracts with VIP Staffing, LK Jordan & Associates and AppleOne each totaling no more than $50,000 with any one vendor, and not to exceed $75,000 cumulatively across all three vendors, per fiscal year for temporary staffing services ATTACHMENTS Resolution 17 -R -125 Contracts with VIP Staffing, LK Jordan & Associates and AppleOne RESOLUTION NO. 17 -R -125 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING CONTRACTS WITH VIP STAFFING, LK JORDAN & ASSOCIATES AND APPLEONE EACH TOTALING NO MORE THAN $50,000, OR $75,000 CUMULATIVELY, PER FISCAL YEAR FOR TEMPORARY STAFFING SERVICES AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Schertz (the "City ") requires temporary staffing services to ensure appropriate staffing levels necessary to maintain City business operations and standards while seeking to fill an urgent need, a planned need, or permanent position vacancies; and WHEREAS, the City solicited request for proposals from qualified vendors for temporary and contract personnel services; and WHEREAS, after extensive analysis of the responses provided by each of the fifteen (15) prospective vendors, City staff is confident that VIP Staffing, LK Jordan & Associates and AppleOne can provide the best service at the best value; and WHEREAS, the City Council has determined that it is in the best interest of the City to contract with VIP Staffing, LK Jordan & Associates and AppleOne pursuant to the recommendation made by Human Resources. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS Section 1. The City Council hereby authorizes contracts with VIP Staffing, LK Jordan & Associates and AppleOne each totaling no more than $50,000, or $75,000 cumulatively among all three (3) vendors, per fiscal year for temporary and contract personnel services. 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 19th day of December, 2017 . ATTEST: Brenda Dennis, City Secretary (CITY SEAL) CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor M Kev For Evaluation Firm History & Expertise: The respondent firm's previous industry experience in providing services to the City of Schertz and any other government and non - governmental entities will be evaluated. Key personnel experience, resumes, proven performance, and other relevant experience will also be evaluated. Responsiveness and Quality Assurance Plan: Respondents will be evaluated on their demonstrated ability to provide temporary and contract personnel effectively. The quality of the approach to administrating the clerical aspects such as billing and invoicing of the program will also be evaluated. References: Respondent's background and references will be evaluated based on previous performance with listed references. Cost Proposal: The overall cost of the services including all administrative fees and adminstrative procedures associated with meeting the requirements of this scope of services. Responsiveness TEMPORARY AND CONTRACT PERSONNEL SERVICES 17- firm History & and Quality References Cost Proposal Total Rank HR- 24 -A -01 Expertise Assurance Plan 12115 English Brook Cir �a All -N -One Services. L.L.C. 18.22 19.00 16.25 14.38 67.84 10 Humble, TX 77346 1256 FM 78, Suite 110 Amanda - Andrews Personnel Corp. dba VIP Staffing 23.00 22.50 22.00 18.72 86.22 3 Schertz, TX 781543 80001H 10 West, Suite 160 AppleOne 20.00 21.00 34.00 19.72 9432 1 San Antonio, TX 78230 1410 Guadalupe Street, Suite 109 Dependable Business Solutions 20.50 19.25 18.00 19.83 77.58 6 San Antonio, TX 78207 425 Oak Springs Dr. EKHP Consulting, LLC 12.50 09.50 09.00 06.79 37.79 13 Seguin, Texas 78155 80001H 10 West, Suite 1500 International Genesis Professional Solutions, LLC 23.00 22.50 06.00 21.38 72.88 8 San Antonio, TX 78230 910 SW 7th Ave KTBIack Services, LLC 07.00 09.75 05.00 16.00 3735 14 Amarillo, TX 79101 75501H 10 West, Suite 105 L.K. Jordan, San Antonio, LTD 24.75 2335 25.00 19.38 92.88 2 San Antonio, TX 78229 5201 Great America Pkwy, Suite 256 C US IT Solutions, INC. 21.50 17.00 20.25 22.53 81.28 4 Santa Clara, CA 95054 95041H 35 North, Suite 3012 Pedigo Staffing Services 16.25 1635 20.50 18.38 71.88 9 San Antonio, TX 78233 16302 Pleasantville Road, Suite 208 PrimaCore Solutions, LLC 20.50 14.25 16.75 15.31 66.81 11 San Antonio, TX 78233 6750 N Andrews Ave, Suite 200 RADgov, Inc. 18.00 19.50 18.75 25.00 81.25 5 Ft. Lauderdale, FL 33309 3230 S. Gessner Rd #2104 Search and Staff 05.00 05.00 04.00 19.88 33.88 15 Houston, TX 77063 121 Interpark Blvd, Suite 108 Tri -Starr Personnel, LLC 20.75 19.00 16.25 19.33 75.33 7 San Antonio, TX 78216 200 S. Anaheim Blvd Ultimate Staffing Services 21.25 05.00 16.25 12.08 54.58 12 Anaheim CA 92805 Kev For Evaluation Firm History & Expertise: The respondent firm's previous industry experience in providing services to the City of Schertz and any other government and non - governmental entities will be evaluated. Key personnel experience, resumes, proven performance, and other relevant experience will also be evaluated. Responsiveness and Quality Assurance Plan: Respondents will be evaluated on their demonstrated ability to provide temporary and contract personnel effectively. The quality of the approach to administrating the clerical aspects such as billing and invoicing of the program will also be evaluated. References: Respondent's background and references will be evaluated based on previous performance with listed references. Cost Proposal: The overall cost of the services including all administrative fees and adminstrative procedures associated with meeting the requirements of this scope of services. Agenda No. 7 CITY COUNCIL MEMORANDUM City Council Meeting: December 19, 2017 Department: Fleet and Facilities Subject: Resolution 17 -R -122 - A Resolution by the City of Schertz authorizing contracts with LPA, Inc., a design architecture firm totaling no more than $86,000 for architecture and design services related to renovations and repairs of the restroom and shower facilities at the Recreation Center and other unrelated architecture and design services during the 2017- 2018 Fiscal. Year BACKGROUND On or about October 23, 2017, the Fleet and Facilities Department was made aware of some tile damage in the men's restroom at the Recreation Center. Upon evaluation, it was discovered that the the had been misplaced secondary to a water leak in the bathroom. Upon further review and evaluation it was determined that the facility has had an extensive water leak problem for several years that appears to have come from multiple showers in both the men and women's restrooms. Due to the damage discovered, it is believed that the leak has been there for an extensive period of time, but the the across the floors and up the walls was able to keep it hidden until finally, two small tiles came loose. After removing drywall, it was revealed that the water damage encompassed all four showers and the sink areas in both restrooms. Additionally, the water has destroyed the walls of all shower stalls including the drywall and metal wall studs, several of which have rusted almost completely away. It appears when the building was constructed that we had improperly installed shower floor pans which allowed these leaks to occur. The water, being held in by the tile, saturated the drywall backer board and this led to the corrosion of the wall studs. Additionally, the water would stand in the metal floor plate of the wall stud system. There is no evidence that we have ever had any leaking pipes in this area. Additionally, while working through these issues it was discovered that there are some issues in the crawlspace under the facility with the surface treatment and with the sump pump and drainage system meant to remove any water that finds its way into the crawl space. With this extensive damage and the poor quality of the original construction, staff is recommending that we gut both bathrooms, come back with stronger, more water resistant construction materials and insure that all showers, shower stalls, sinks and toilets are properly constructed and installed for commercial. purposes. Additionally, we need to correct the crawlspace issues to insure the moisture removal systems operate properly. LPA Architects have been engaged by the City before to handle projects such as these. They designed the replacement windows at the Recreation Center, the refurbishment of the senior center and the waterproofing of Fire Station 2. We had them walk through the Recreation Center restrooms and they have provided a proposal. In this proposal, they will design a complete refurbishment of both restroom facilities and design appropriate repairs in the crawlspace, assist the City in bidding for a contractor to perform this work and then work through the construction process insuring the design is being appropriately followed. To date in fiscal year 2018, the City has spent $17,950 to wrap up the design services for Fire Station 2 and the Senior Center. This project is quoted at $47,560. Staff is requesting an additional $20,490. $4,756 will be a 10% contingency for the Rec Center project and $15,734 will allow additional funds for small projects that may come up and for additional design services for the Rec Center that may be identified as the restroom facilities and the crawl space are demolished and repairs started. Goal To allow expenditures in excess of $50,000 with a not to exceed amount of $86,000 with LPA, Inc. for professional services in design and architecture services fiscal year 2018. Summary of Recommended Action Staff recommends approval of the attached Resolution authorizing expenditures not to exceed $86,000 with LPA, Inc. for design and architecture services to include design and architecture services for the refurbishment of both restrooms and repairing identified issues in the crawl space. FISCAL IMPACT The repairs to the Rec Center are not budgeted. Funds to complete the design phase are available out of bond funds allocated for building repairs. Once the design is completed, staff will have estimates of the cost of these repairs and will return to Council to allocate needed funds at that time. ATTACHMENT Resolution No. 17 -R -122 LPA Architects Proposal for Rec Center Renovations RESOLUTION NO. 17 -R -122 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING CONTRACTS WITH LPA, INC., TOTALING NO MORE THAN $86,000, FOR THE DESIGN OF THE RECREATION CENTER RESTROOMS AND CRAWLSPACE AND VARIOUS SEPARATE AND UNRELATED ARCHITECTURE AND DESIGN SERVICES DURING THE 2017 -2018 FISCAL YEAR AND OTHER MATTERS IN CONNECTION THEREWITH; WHEREAS, the City of Schertz (the "City ") requires professional building design and architecture services for the renovation of the :Recreation Center Restrooms and Crawlspace Project and various separate and unrelated projects; and WHEREAS, City staff has determined that LPA, Inc. is qualified to provide such services for the City; and WHEREAS, LPA, Inc., is an experienced architecture and design firm that has done multiple projects for the City of Schertz; therefore, THAT: Section 1. The City Council hereby authorizes City staff to enter into an agreement with LPA, Inc for architecture and design services for the renovation of the Recreation Center restrooms and crawl space and if necessary, for various small projects or consulting tasks with total expenditures not exceed $86,000 for the 2017 -2018 Fiscal Year. 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 19th day of December, 2017 . Brenda Dennis, City Secretary (CITY SEAL) CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor M LP A 0000000000 a0 Antonio, P. , .. U f3 e. 12/5/2017 CITY OF SCEERTZ - FAMILY YMCA SHOWER ROB / RESTROOM RENOVATION Scope of Project The project consists of rebuilding showers and restrooms due to water damage. Services Proposal — Design Phase: The following services will be included: a. Attend 5 design progress meetings b. Develop base drawings from existing PDF drawings provided by the City and field verified by LPA. c. Prepare alternative layouts for owner consideration d. Prepare finish material presentation for owner approval e. Design and document owner approved layout for Restrooms and Shower Areas, approximately 1,100 S.F. f. Research and develop drawings for Building Code and ADA submittal g. Layout ceiling and lights for entire building, for building code review h. Coordinate mechanical, electrical and plumbing engineering design for Toilet Room, Shower Area and underfloor sump pump Design Phase Fee - $30,000.00 Services Proposal — Bidding /Review Phase: The following services will be included: a. Answer questions and clarifications of the intention of the drawings and specifications to the Bidders and Code officials during the bidding and code review phases b. Submit for Building Code Review c. Submit for ADA Code Review d. ADA Code review registration, review and inspection fee Bidding /Review Phase Fee - $4,200.00 Services Proposal — Construction Administration Phase (3 months): The following services will be included: a. Answer questions and clarifications of the intention of the drawings and specifications to the Construction Manager/ General Contractor during construction phases b. Attend bi- weekly meetings, review progress of the work for monthly pay apps at $650 (limited to 8 meetings) c. Submittal review and project management tasks d. Walk for punch and final punch review (limited to 2 visits) e. Final closeout Construction Administration Phase Fee - $13,360.00 Total Fee - $47,560.00 CITY OF SCHERTZ THE STATE OF TEXAS § GUADALUPE COUNTY § This Professional Services Agreement ( "Agreement ") is made and entered by and between the City of Schertz, Texas, (the "City ") a Texas municipality, and LPA, Inc. ( "Professional "). Section 1. Duration. This Agreement shall become effective upon execution by the City and shall remain in effect until satisfactory completion of the Scope of Work unless terminated as provided for in this Agreement. Section 2. Scope of Work. (A) Professional shall perform the Services as more particularly described in the Scope of Work attached hereto as Exhibit "A ". The work as described in the Scope of Work constitutes the "Project ". Unless otherwise provided in the Scope of Work, the anticipated submittal of all Project deliverables is immediately upon completion of the Project. (B) The Quality of Services provided under this Agreement shall be performed with the professional skill and care ordinarily provided by competent Professionals practicing in the same or similar locality and under the same or similar circumstances and professional license, and as expeditiously as is prudent considering the ordinary professional skill and care of a competent Professional holding the same professional license. (C) The Professional shall perform its Services for the Project in compliance with all statutory, regulatory and contractual requirements now or hereafter in effect as may be applicable to the rights and obligations set forth in the Agreement. (D) The Professional may rely upon the accuracy of reports and surveys provided to it by the City except when defects should have been apparent to a reasonably competent professional or when it has actual notice of any defects in the reports and surveys. Section 3. Compensation. (A) The Professional shall be paid in the manner set forth in Exhibit `B" and as provided herein. (B) Billing Period: The Professional may submit monthly, or less frequently, an invoice for payment based on the estimated completion of the described tasks and approved work schedule. Subject to Chapter 2251, Texas Government Code (the "Prompt Payment Act "), payment is due within thirty (30) days of the City's receipt of the Professional's invoice. Interest on overdue payments shall be calculated in accordance with the Prompt Payment Act. LPA YMCA 20171208.docx LPA, Inc. Page 1 (C) Reimbursable Expenses: Any and all reimbursable expenses related to the Project shall be included in the scope of services (Exhibit A) and accounted for in the total contract amount in Exhibit "B ". If these items are not specifically accounted for in Exhibit A they shall be considered subsidiary to the total contract amount. Section 4. Changes to the Project Work; Additional Work. (A) Changes to Work: Professional shall make such revisions to any work that has been completed as are necessary to correct any errors or omissions as may appear in such work. If the City finds it necessary to make changes to previously satisfactorily completed work or parts thereof, the Professional shall make such revisions if requested and as directed by the City and such services will be considered as additional work and paid for as specified under following paragraph. (B) Additional Work: The City retains the right to make changes to the Scope of Work at any time by a written order. Work that is clearly not within the general description of the Scope of Work and does not otherwise constitute special services under this Agreement must be approved in writing by the City by supplemental agreement before the additional work is undertaken by the Professional. If the Professional is of the opinion that any work is beyond that contemplated in this Agreement and the Scope of Work governing the project and therefore constitutes additional work, the Professional shall promptly notify the City of that opinion, in writing. If the City agrees that such work does constitute additional work, then the City and the Professional shall execute a supplemental agreement for the additional work and the City shall compensate the Professional for the additional work on the basis of the rates contained in the Scope of Work. If the changes deduct from the extent of the Scope of Work, the contract sum shall be adjusted accordingly. All such changes shall be executed under the conditions of the original Agreement. Any work undertaken by Professional not previously approved as additional work shall be at risk of the Professional. Section 5. Time of Completion. The prompt completion of the services under the Scope of Work is critical to the City. Unnecessary delays in providing services under a Scope of Work shall be grounds for dismissal of the Professional and termination of this Agreement without any or further liability to the City other than a prorated payment for necessary, timely, and conforming work done by Professional prior to the time of termination. The Scope of Work shall provide, in either calendar days or by providing a final date, a time of completion prior to which the Professional shall have completed all tasks and services described in the Scope of Work. Section 6. Insurance. Before commencing work under this Agreement, Professional shall obtain and maintain the liability insurance provided for in attached Exhibit C throughout the term of this Agreement and thereafter as required herein. In addition to the insurance provided for in Exhibit C, Professional shall maintain the following limits and types of insurance: Professional Liability Insurance: professional errors and omissions liability insurance with limits of liability not less than $1,000,000 per occurrence covering all work performed by the Professional, its employees, sub- contractors, or independent contractors. If this coverage can only be obtained on a "claims made" basis, the certificate of insurance must clearly state coverage is on a "claims made" basis and coverage must remain in effect for at least two years after final payment with the Professional continuing to furnish the City certificates of insurance. LPA YMCA 20171208.docx LPA, Inc. Page 2 Workers Compensation Insurance: The Professional shall carry and maintain during the term of this Agreement, workers compensation and employers liability insurance meeting the requirements of the State of Texas on all the Professional's employees carrying out the work involved in this contract. General Liability Insurance: The Professional shall carry and maintain during the term of this Agreement, general liability insurance on a per occurrence basis with limits of liability not less than $1,000,000 for each occurrence and for fire damage. For Bodily Injury and Property Damage, coverage shall be no less than $1,000,000. As a minimum, coverage for Premises, Operations, Products and Completed Operations shall be $2,000,000. This coverage shall protect the public or any person from injury or property damages sustained by reason of the Professional or its employees carrying out the work involved in this Agreement. The general aggregate shall be no less than $2,000,000. Automobile Liability Insurance: Professional shall carry and maintain during the term of this Agreement, automobile liability insurance with either a combined limit of at least $1,000,000 per occurrence for bodily injury and property damage or split limits of at least $1,000,000 for bodily injury per person per occurrence and $1,000,000 for property damage per occurrence. Coverage shall include all owned, hired, and non -owned motor vehicles used in the performance of this contract by the Professional or its employees. Subcontractor: In the case of any work sublet, the Professional shall require subcontractor and independent contractors working under the direction of either the Professional or a subcontractor to carry and maintain the same workers compensation and liability insurance required of the Professional. Qualifying Insurance: The insurance required by this Agreement shall be written by non - assessable insurance company licensed to do business in the State of Texas and currently rated "B +" or better by the A.M. Best Companies. All policies shall be written on a "per occurrence basis" and not a "claims made" form. Evidence of such insurance shall be attached as Exhibit "D ". Failure of Certificate Holder to demand a certificate or other evidence of full compliance with these insurance requirements or failure of Certificate Holder to identify a deficiency from evidence that is provided will not be construed as a waiver of Insured's obligation to maintain such insurance. Section 7. Miscellaneous Provisions. (A) Subletting. The Professional shall not sublet or transfer any portion of the work under this Agreement or any Scope of Work issued pursuant to this Agreement unless specifically approved in writing by the City, which approval shall not be unreasonably withheld. Subcontractors shall comply with all provisions of this Agreement and the applicable Scope of Work. The approval or acquiescence of the City in the subletting of any work shall not relieve the Professional of any responsibility for work done by such subcontractor. (B) Ownership of Documents. Upon completion or termination of this Agreement, all documents prepared by the Professional or furnished to the Professional by the City shall be delivered to and become the property of the City. All drawings, charts, calculations, plans, specifications and other data, including electronic files and raw data, prepared under or pursuant to this Agreement shall be made available, upon request, to the City without restriction or limitation on the further use of such materials PROVIDED, HOWEVER, THAT SUCH MATERIALS ARE NOT INTENDED OR REPRESENTED TO BE SUITABLE FOR REUSE BY THE CITY OR OTHERS. ANY REUSE WITHOUT PRIOR VERIFICATION OR ADAPTATION BY THE PROFESSIONAL FOR THE SPECIFIC PURPOSE INTENDED WILL BE AT THE CITY'S SOLE RISK AND WITHOUT LIABILITY TO LPA YMCA 20171208.docx LPA, Inc. Page 3 THE PROFESSIONAL. Where applicable, Professional shall retain all pre - existing proprietary rights in the materials provided to the City but shall grant to the City a non - exclusive, perpetual, royalty -free license to use such proprietary information solely for the purposes for which the information was provided. The Professional may, at Professional's expense, have copies made of the documents or any other data furnished to the City under or pursuant to this Agreement. (C) Prof'essional's Seal. To the extent that the Professional has a professional seal it shall placed on all documents and data furnished by the Professional to the City. All work and services provided under this Agreement will be performed in a good and workmanlike fashion and shall conform to the accepted standards and practices of the Professional's industry. The plans, specifications and data provided by Professional shall be adequate and sufficient to enable those performing the actual work to perform the work as and within the time contemplated by the City and Professional. The City acknowledges that Professional has no control over the methods or means of work nor the costs of labor, materials or equipment. Unless otherwise agreed in writing, any estimates of costs by the Professional are for informational purposes only and are not guarantees. (D) Compliance with Laws. The Professional shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts, administrative, or regulatory bodies in any matter affecting the performance of this Agreement, including, without limitation, worker's compensation laws, minimum and maximum salary and wage statutes and regulations, and licensing laws and regulations. When required, the Professional shall furnish the City with satisfactory proof of compliance. (E) Independent Contractor. Professional acknowledges that Professional is an independent contractor of the City and is not an employee, agent, official or representative of the City. Professional shall not represent, either expressly or through implication, that Professional is an employee, agent, official or representative of the City. Income taxes, self - employment taxes, social security taxes and the like are the sole responsibility of the Professional. (F) Non- Collusion. Professional represents and warrants that Professional has not given, made, promised or paid, nor offered to give, make, promise or pay any gift, bonus, commission, money or other consideration to any person as an inducement to or in order to obtain the work to be provided to the City under this Agreement. Professional further agrees that Professional shall not accept any gift, bonus, commission, money, or other consideration from any person (other than from the City pursuant to this Agreement) for any of the services performed by Professional under or related to this Agreement. If any such gift, bonus, commission, money, or other consideration is received by or offered to Professional, Professional shall immediately report that fact to the City and, at the sole option of the City, the City may elect to accept the consideration for itself or to take the value of such consideration as a credit against the compensation otherwise owing to Professional under or pursuant to this Agreement. (G) Force Majeure. If the performance of any covenant or obligation to be performed hereunder by any party is delayed as a result of circumstances which are beyond the reasonable control of such party (which circumstances may include, without limitation, pending litigation, acts of God, war, acts of civil disobedience, fire or other casualty, shortage of materials, adverse weather conditions [such as, by way of illustration and not of limitation, severe rain storms or below freezing temperatures, or tornados] labor action, strikes or similar acts, moratoriums or regulations or actions by governmental authorities), the time for such performance shall be extended by the amount of time of such delay, but no longer than the amount of time reasonably occasioned by the delay. The party claiming delay of performance as a result of any of the foregoing force majeure events shall deliver written notice of the commencement of any such delay resulting from such force majeure event not later than seven (7) days after the claiming party becomes aware of the same, and if the claiming party fails to so notify the other party of the occurrence of a force majeure event causing such delay and the other party shall not otherwise be LPA YMCA 20171208.docx LPA, Inc. Page 4 aware of such force majeure event, the claiming party shall not be entitled to avail itself of the provisions for the extension of performance contained in this subsection. (H) In the case of any conflicts between the terms of this Agreement and wording contained within the Scope of Services, this Agreement shall govern. The Scope of Services is intended to detail the technical scope of services, fee schedule, and contract time only and shall not dictate Agreement terms. (I) The City of Schertz may not enter into a contract with a company for goods and services unless the contract contains a written verification from the company that; (i) it does not Boycott Israel; and (ii) will not Boycott Israel during the term of the contract. (Texas Government Code chapter 2270) by accepting this purchase order, the vendor (Professional or other applicable term defining the contracting party) verifies that it does not Boycott Israel, and agrees that during the term of this agreement (contract as applicable) will not Boycott Israel as that term is defined in the Texas Government Code Section 808.001, as amended. Relevant definitions from the bill: "Company" means a for - profit sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, or limited liability company, including a wholly owned subsidiary, majority -owned subsidiary, parent company, or affiliate of those entities or business associations that exists to make a profit. "Boycott Israel" means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli - controlled territory, but does not include an action made for ordinary business purposes. Section 8. Termination. (A) This Agreement may be terminated: (1) By the mutual agreement and consent of both Professional and City; (2) By either party, upon the failure of the other party to fulfill its obligations as set forth in either this Agreement or a Scope of Work issued under this Agreement; (3) By the City, immediately upon notice in writing to the Professional, as consequence of the failure of Professional to perform the services contemplated by this Agreement in a timely or satisfactory manner; (4) By the City, at will and without cause upon not less than thirty (30) days written notice to the Professional. (B) If the City terminates this Agreement pursuant to Section 5 or subsection 8(A)(2) or (3), above, the Professional shall not be entitled to any fees or reimbursable expenses other than the fees and reimbursable expenses then due and payable as of the time of termination and only then for those services that have been timely and adequately performed by the Professional considering the actual costs incurred by the Professional in performing work to date of termination, the value of the work that is nonetheless usable to the City, the cost to the City of employing another Professional to complete the work required and the time required to do so, and other factors that affect the value to the City of the work performed at time of termination. In the event of termination that is not the fault of the Professional, the Professional shall be compensated for all basic, special, and additional services actually performed prior to termination, together with any reimbursable expenses then due. Section 9. Indemnification. Professional agrees to indemnify and hold the City of Schertz, Texas and all of its present, future and former agents, employees, officials and representatives harmless in their official, individual and representative capacities from any and all claims, demands, causes of action, judgments, liens and expenses (including attorney's fees, whether contractual or statutory), costs and damages (whether common law or statutory), costs and damages (whether common law or statutory, and whether actual, punitive, consequential or incidental), of any conceivable character, for injuries to persons (including death) or to property (both real and personal) created by, arising from or in any manner relating to the services or goods performed or provided by Professional — expressly including those arising through strict liability or under the constitutions of the United States or Texas — BUT ONLY TO THE EXTENT ALLOWABLE BY SEC. 271.904(a) OF THE TEXAS LOCAL GOVERNMENT CODE AS APPLICABLE. Section 10. Notices. Any notice required or desired to be given from one party to the other party to this Agreement shall be in writing and shall be given and shall be deemed to have been served and received (whether actually received or not) if (i) delivered in person to the address set forth below; (ii) deposited in an official depository under the regular care and custody of the United States Postal Service located within the confines of the United States of America and sent by certified mail, return receipt requested, and addressed to such party at the address hereinafter specified; or (iii) delivered to such party by courier receipted delivery. Either party may designate another address within the confines of the continental United States of America for notice, but until written notice of such change is actually received by the other party, the last address of such party designated for notice shall remain such party's address for notice. Section 11. No Assignment. Neither party shall have the right to assign that party's interest in this Agreement without the prior written consent of the other party. Section 12. Severability. If any term or provision of this Agreement is held to be illegal, invalid or unenforceable, the legality, validity or enforceability of the remaining terms or provisions of this Agreement shall not be affected thereby, and in lieu of each such illegal, invalid or unenforceable term or provision, there shall be added automatically to this Agreement a legal, valid or enforceable term or provision as similar as possible to the term or provision declared illegal, invalid or unenforceable. Section 13. Waiver. Either City or the Professional shall have the right to waive any requirement contained in this Agreement that is intended for the waiving party's benefit, but, except as otherwise provided herein, such waiver shall be effective only if in writing executed by the party for whose benefit such requirement is intended. No waiver of any breach or violation of any term of this Agreement shall be deemed or construed to constitute a waiver of any other breach or violation, whether concurrent or subsequent, and whether of the same or of a different type of breach or violation. Section 14. Governing Law; Venue. This Agreement and all of the transactions contemplated herein shall be governed by and construed in accordance with the laws of the State of Texas. The provisions and obligations of this Agreement are performable in Guadalupe County, Texas such that exclusive venue for any action arising out of this Agreement shall be in Guadalupe County, Texas. Section 15. Paragraph Headings; Construction. The paragraph headings contained in this Agreement are for convenience only and shall in no way enlarge or limit the scope or meaning of the various and several paragraphs hereof Both parties have participated in the negotiation and preparation of this Agreement and this Agreement LPA YMCA 20171208.docx LPA, Inc. Page 6 shall not be construed either more or less strongly against or for either party. Section 16. Binding Effect. Except as limited herein, the terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, devisees, personal and legal representatives, successors and assigns. Section 17. Gender. Within this Agreement, words of any gender shall be held and construed to include any other gender, and words in the singular number shall be held and construed to include the plural, unless the context otherwise requires. Section 18. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument. Section 19. Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. Section 20. Entire Agreement. It is understood and agreed that this Agreement contains the entire agreement between the parties and supersedes any and all prior agreements, arrangements or understandings between the parties relating to the subject matter. No oral understandings, statements, promises or inducements contrary to the terms of this Agreement exist. This Agreement cannot be changed or terminated orally. Section 21. Relationship of Parties. Nothing contained in this Agreement shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between the parties, it being expressly understood and agreed that no provision contained in this Agreement nor any act or acts of the parties hereto shall be deemed to create any relationship between the parties other than the relationship of independent parties contracting with each other solely for the purpose of effecting the provisions of this Agreement. 23. Dispute Resolution. In accordance with the provisions of Subchapter I, Chapter 271, TEX. LOCAL Gov'T CODE, the parties agree that, prior to instituting any lawsuit or other proceeding arising from a dispute under this agreement, the parties will first attempt to resolve the dispute by taking the following steps: (1) A written notice substantially describing the nature of the dispute shall be delivered by the dissatisfied party to the other party, which notice shall request a written response to be delivered to the dissatisfied party not less than 5 days after receipt of the notice of dispute. (2) If the response does not reasonably resolve the dispute, in the opinion of the dissatisfied party, the dissatisfied party shall give notice to that effect to the other party whereupon each party shall appoint a person having authority over the activities of the respective parties who shall promptly meet, in person, in an effort to resolve the dispute. (3) If those persons cannot or do not resolve the dispute, then the parties shall each appoint a person from the highest tier of managerial responsibility within each respective party, who shall then promptly meet, in person, in an effort to resolve the dispute. 24. Disclosure of Business Relationships /Affiliations; Conflict of Interest Questionnaire. Professional represents that it is in compliance with the applicable filing and disclosure requirements of Chapter 176 of the Texas Local Government Code. Certificate of Interested Parties Effective January 1, 2016, pursuant to House Bill 1295 passed by the 84th Texas Legislature (Section 2252.908, Texas Government Code, as amended) and formal rules released by the Texas Ethics Commission (TEC), all contracts with private business entities requiring approval by the Schertz City Council will require the on -line completion of Form 1295 "Certificate of Interested Parties." Form 1295 is also required for any and all contract amendments, extensions or renewals. Contractors are required to complete and file electronically with the Texas Ethics Commission using the online filing application. Please visit the State of Texas Ethics Commission website, rml295.htm and httpse//www.ethics.state.txAus/tec/1295- Info.htm for more information. IF YOU HAVE ANY QUESTIONS ABOUT COMPLIANCE, PLEASE CONSULT YOUR OWN LEGAL COUNSEL. COMPLIANCE IS THE INDIVIDUAL RESPONSIBILITY OF EACH PERSON OR AGENT OF A PERSON WHO IS SUBJECT TO THE FILING REQUIREMENT. AN OFFENSE UNDER CHAPTER 176 IS A CLASS C MISDEMEANOR. [The remainder of this page is intentionally left blank.] LPA YMCA 20171208.docx LPA, Inc. Page 8 EXECUTED on this the [aI day of 1201. , By: By: Name: John C. Kessel. Name: Title: City Manager Title: ADDRESS FOR NOTICE: [a I ' City of Schertz Attn: John C. Kessel, City Manager 1400 Schertz Parkway Schertz, Texas 78154 With a copy to: City Attorney City of Schertz, Texas Attn: Charles E. Zech 2517 N. Main Avenue San Antonio, Texas 78212 19,0] a *3113 [17►/_1IF LPA, Inc. 114 East Cevallos Street. San Antonio, Texas 78204 210- 829 -1737 1pa@lpainc.com LPA YMCA 20171208.docx LPA, Inc. Page 9 Exhibit "A" SCOPE OF WORK Project CITY OF SCHERTZ - FAMILY YMCA SHOWER ROOM / RESTROOM RENOVATION Location Family YMCA located at 621 Westchester Dr. Schertz, TX 78154 Basic Services Scope of Work The project consists of rebuilding showers and restrooms due to water damage. Design Phase: The Professional shall provide the following services during this phase: a. Attend 5 design progress meetings b. Develop base drawings from existing PDF drawings provided by City. c. Field verify City provided drawings. d. Prepare alternative layouts for City consideration e. Prepare finish material presentation for City approval. f. Design and document owner approved layout for Restrooms and Shower Areas, approximately 1,100 S.F. g. Research and develop drawings for Building Code and ADA submittal h. Layout ceiling and lights for entire building, for building code review i. Coordinate mechanical, electrical and plumbing engineering design for Toilet Room, Shower Area and underfloor sump pump Bidding /Review Phase: The Professional shall provide the following services during this phase: a. Answer questions and clarifications of the intention of the drawings and specifications to the Proposers / Bidders and Code officials during the bidding and code review phases b. Submit for Building Code Review c. Submit for ADA Code Review d. ADA Code review registration, review and inspection fee Construction Administration Phase: (3 months): The Professional shall provide the following services during this phase: a. Answer questions and clarifications of the intention of the drawings and specifications to the Construction Manager/ General Contractor during construction phases b. Attend bi- weekly meetings, review progress of the work for monthly pay applications for up to eight meetings. Pay application reviews more than the eight meetings will be subject to an additional fee each as specified in Exhibit B. a. Submittal review and project management tasks b. Walk for punch and final punch review for up to two visits c. Perform a Final closeout LPA YMCA 20171208.docx LPA, Inc. Page 10 Exhibit "B" LUMP SUM BY PHASE PAYMENT METHOD FOR BASIC SERVICES AND A NOT TO EXCEED AMOUNT FOR SUPPLEMENTAL SERVICES 1.1 Compensation for all fees, costs, expenses and services defined by this Contract shall be compensated at a Not -To- Exceed amount of $ 62,560.00 — Sixty -Two Thousand, Five Hundred Sixty Dollars and No Cents, including expenses (the "Contract Price "), and it is agreed and understood that this amount, when earned, will constitute full compensation to the Professional. 1.2 This Contract Price is the sum of the phases as provided for by the Tasks detailed in the following schedule of values: PHASE AMOUNT Task 1 — Design Phase $ 30,000.00 Task 2 — Bidding /Review Phase $ 4,200.00 Task 3 — Construction Administration Phase $ 13,360.00 Total Basic Services $ 47,560.00 Task 4 — Supplemental Services (as requested by City) $ 15,000.00 Contract Price Not To Exceed $ 62,560.00 1.3 Basic Design Services The portion of the Contract Price allocated for Basic Design Services as provided for in Exhibit A shall be the lump sum amount of $47,560.00 — Forty -Seven Thousand, Five Hundred Sixty Dollars and No Cents. 1.4 Supplemental Services The portion of the Contract Price allocated for Supplemental Services as provided for in Exhibit 11 shall be a not - to- exceed amount of $ 15,000.00 — Fifteen Thousand Dollars and No Cents. The supplemental services shall be performed by Consultant on a written Work Order basis as provided herein. The City of Schertz will negotiate the final scope of services and fees for each of the Work Orders requested of the Consultant. 1.5 Additional Pay Applications Review Fees for each City Authorized review exceeding the eight provided for in Exhibit A Scope Of Work shall be invoiced at the rate of $650.00 per review. 1.6 For the purpose of establishing costs to the City of Schertz for any negotiated supplemental services payable on an hourly rate basis authorized in writing by the City of Schertz, the following Hourly Billing Rate Table of the fees shall apply: LPA YMCA 20171208.docx LPA, Inc. Page I 1 Billing Rate Table Discipline Principal Director Discipline Director Project Director Project Leader Manager Design Coordinator II Senior Specialist Design Coordinator I Designer III Designer II Specialist Intern Hourly Rate $245.00 $215.00 $205.00 $185.00 $165.00 $145.00 $140.00 $120.00 $115.00 $105.00 $95.00 $90.00 $70.00 LPA YMCA 20171208.docx LPA, Inc. Page 12 Exhibit "C" REQUIREMENTS FOR ALL INSURANCE DOCUMENTS The Professional shall comply with each and every condition contained herein. The Professional shall provide and maintain the minimum insurance coverage set forth below during the term of its agreement with the City. Any Subcontractor(s) hired by the Professional shall maintain insurance coverage equal to that required of the Professional. It is the responsibility of the Professional to assure compliance with this provision. The City of Schertz accepts no responsibility arising from the conduct, or lack of conduct, of the Subcontractor. INSTRUCTIONS FOR COMPLETION OF INSURANCE DOCUMENT With reference to the foregoing insurance requirements, Professional shall specifically endorse applicable insurance policies as follows: I. The City of Schertz shall be named as an additional insured with respect to General Liability and Automobile Liability on a separate endorsement. 2. A waiver of subrogation in favor of The City of Schertz shall be contained in the Workers Compensation and all liability policies and must be provided on a separate endorsement. 3. All insurance policies shall be endorsed to the effect that The City of Schertz will receive at least thirty (30) days written notice prior to cancellation or non - renewal of the insurance. 4. All insurance policies, which name The City of Schertz as an additional insured, must be endorsed to read as primary and non - contributory coverage regardless of the application of other insurance. 5. Chapter 1811 of the Texas Insurance Code, Senate Bill 425 82(R) of 2011, states that the above endorsements cannot be on the certificate of insurance. Separate endorsements must be provided for each of the above. 6. All insurance policies shall be endorsed to require the insurer to immediately notify The City of Schertz of any material change in the insurance coverage. 7. All liability policies shall contain no cross liability exclusions or insured versus insured restrictions. 8. Required limits may be satisfied by any combination of primary and umbrella liability insurances. 9. Professional may maintain reasonable and customary deductibles, subject to approval by The City of Schertz. 10. Insurance must be purchased from insurers having a minimum AmBest rating of B +. 11. All insurance must be written on forms filed with and approved by the Texas Department of Insurance. (ACORD 25 2010/05). Coverage must be written on an occurrence form. 12. Contractual Liability must be maintained covering the Professionals obligations contained in the contract. Certificates of Insurance shall be prepared and executed by the insurance company or its authorized agent and shall contain provisions representing and warranting all endorsements and insurance coverages according to requirements and instructions contained herein. 13. Upon request, Professional shall furnish The City of Schertz with certified copies of all insurance policies. 14. A valid certificate of insurance verifying each of the coverages required above shall be issued directly to the City of Schertz within ten (10) business days after contract award and prior to starting any work by the successful Professional's insurance agent of record or insurance company. Also, prior to the start of any work and at the same time that the Certificate of Insurance is issued and sent to the City of Schertz, all required endorsements identified in sections A, B, C and D, above shall be sent to the City of Schertz. The certificate of insurance and endorsements shall be sent to: City of Schertz emailed to: purchasin (&schertz.com Purchasing Department Faxed to: 210 - 619 -1169 1400 Schertz Parkway Schertz, TX 78154 LPA YMCA 20171208.docx LPA, Inc. Page 13 CERTIFICATE OF LIABILITY INSURANCE A0 AS AMATIVII OF R1100AMATIOU, ONLY AND CONFFR8 NO RMHUS UPON YOU 0141311P �r.Al"t I r `au d✓G!�dNd .'E .Ld i7; `5'., - =.k._ ... �, i, ii 1 y _ � � p.e�g . , E T L . , nr-mpo a r ug v aa s ,LYot 1 w A s I =111 it IDM11O11M 1 ,. 1RU c ti � rii a �. A p G6Te Cif i r i $TjAa V 044 ciffil/1000 1101 ID" I- r :: ff ' ,'i 9 'i4 in' rl4R ib#9ikYMIY �3PLrBYrmty�9l 7A M wriy"L 4 .w +�e�, s "9p ..,. i .. � ...... um.e e, ni"111ea.�,p " W� Bu �.. m `�" y g &i 6 F& m V JI'a�5drflV�ii� �[ iP jVpI Yi�S, 'dab basI vism W1d110100 I 9� PT rb t��f I J G&C r I m I !w. � , 4�' _..... 61 P . i A iV 9 P facUb, Ioam ". � got, al ww40, �Lal �' 0" po' , of ®g-01 v sp 12fh ry t.0121. must bOV110rrl Wdi Gloplat 11411, Tow, lim, o (0,13 4 nti dbyTexas 1,901SIOU0 0,2(9 0051100 In W2011), 1 15w7,2 NOTU , . 4110 r�T TICS ,A,L1Ld�"rr 7r C�CraCC�r� d�4al,q�l��i F1 .�dsL9L1Ffi �6"�� 1C11CG 41r1i1 1$' 1.NP bu M£JTI6 ARd '; .rpr r1 ! 11111 4 1 i ra . he P atk^ 78154 Attn: P' roha r D rpl. ACORD 20 41' 4 The AGORO namo nd, logo, ih rowks W A0080 LPA YMCA 20171208.docx LPA, Inc. Page 14 (Instructions for completing and submitting a certificate to the City of Schertz) Complete the certificate of insurance with the information listed below: A) Certificate of Insurance date B) Producer (Insurance Agency) Information — complete name, address, telephone information, & email address. C) Insured's (Insurance Policy Holder) Information — complete name & address information D) Insurer (name /names of insurance company) * *(Remember the city requires all insurance companies to be Authorized to do business in the State of Texas be rated by A.M. Best with a rating of B+ (or better) Class VI (or higher) or otherwise be acceptable to the City if not rated by A.M. Best) E) NAIC # (National Association of Insurance Commissioners, a # that is assigned by the State to all insurance companies) F) Insurer letter represents which insurance company provides which type of coverage from D G) General Liability Insurance Policy — must have an (x) in box. Also, "Occurrence" type policy — must have an (x) in the box (occurrence policy preferred but claims made policy can be accepted with special approval) H) This section shall be filled in with "Y" for yes under Additional Insured for all coverages, except for Professional Liability and Workers' Compensation. There shall also be a "Y" for yes under all coverages for subrogation waived. I) Automobile Liability Insurance — must be checked for Any Auto, All Owned Autos, Hired Autos J) Umbrella Coverage — must be checked in this section and by occurrence whenever it is required by written contract and in accordance with the contract value. K) Worker's Compensation and Employers Liability Insurance — information must be completed in this section of the certificate of insurance form (if applicable). L) Builder's Risk Policy — for construction projects as designated by the City of Schertz. Professional Liability Coverage — for professional services if required by the City of Schertz. M) Insurance Policy #'s N) Insurance policy effective dates (always check for current dates) O) Insurance Policy limits (See Insurance Requirements Checklist) P) This section is to list projects, dates of projects, or location of project. Endorsements to the insurance policy(ies) must be provided separately and not in this section. The following endorsements are required by the City of Schertz. (1) Adding the City of Schertz as an additional insured. The "additional insured" endorsement is not required for professional liability and workers compensation insurance; and (2) Waiver of Subrogation (3) Primary and Non - Contributory (4) Cancellation Notice Q) City of Schertz's name and address information must be listed in this section R) Notice of cancellation, non - renewal, or material change to the insurance policy(ies) must be provided to the City of Schertz in accordance with a cancellation notice endorsement to the policy and /or per the policy provisions based on the endorsement adding the city as an additional insured. (Sec. 1811.155, Tex. Ins. Code) S) The certificate must be signed by the Authorized Agent in this section of the certificate form. LPA YMCA 20171208.docx LPA, Inc. Page 15 Exhibit "D" LPA YMCA 20171208.docx LPA, Inc. Page 16 Agenda No. 8 CITY COUNCIL MEMORANDUM City Council Meeting: December 19, 2017 Department: Finance Subject: Resolution No. 17 -R -124 Consideration and/or action approving a Resolution authorizing and approving the Investment Policy and strategies. The Investment Policy and Strategy of the City of Schertz outlines the processes the City uses to determine its investment strategy. Much of the policy is outlined by the Public Funds Investment Act which ensures public entities make safe choices as to how they invest. The top priority with regards to investable public funds in both the Act and in the City Policy is the safety of the funds invested. This means low risk investments that can be easily withdrawn in the event the City needs funding. The City of Schertz Investment Policy requires an annual reaffirmation by City Council. On December 15, 2017, the Investment Advisory Committee reviewed and voted to send the policy to council with proposed changes for consideration. City Staff and the Investment Committee recommends Council approving the Investment Policy with the following changes outlined in the markup document attached. Most the changes are due to recent legislature changes but will not have a significant effect on administering the investment program or in the configuration in our portfolio construction. For example: HB 1003: Money market mutual funds now must comply with SEC Rule 2a -7 instead of rules previously stated in the Public Funds Investment Act. HB 1701: Defines that "business organizations" instead of a "person" must receive a copy of the City's Investment Policy and Strategy and certify they have received it and have procedures in place to adhere to it. HB 2647: Authorizes interest bearing bank deposits and shared deposit programs as potential investment instruments. A change necessitated by recent Council committee appointments is to alter the language regarding the composition of the Investment Advisory Committee to not stipulate the Mayor shall be a member, but rather two council members will serves on the Committee. Due to rising rates by the Federal Reserve, the Investment Strategy remained unchanged at a maximum maturity for investments of 3 years and an average maturity of the portfolio of 1 year City Council Memorandum Page 2 or less. The Federal Reserve predicts its long -term rate is 2.8 %, and their current rate increase forecasts estimates them raising to 2.7% in 2019. If projections hold true, the City will look to increase its maturity strategy at that time. The Investment Advisory Committee met on December 15, 2017 and recommended changes to clarify sections of the document and to match the House Bills that affect the City and other formatting updates. FISCAL IMPACT There will not be any fiscal impact. RECOMMENDATION The Investment Committee recommends approval of Resolution No. 17 -R -124 ATTACHMENT Resolution No. 17 -R -124 City of Schertz Investment Policy Redline Version of the City of Schertz Investment Policy RESOLUTION NO. 17 -R -124 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A REVISED CITY OF SCHERTZ INVESTMENT POLICY AND STRATEGY. WHEREAS, the City of Schertz Investment Policy requires an annual review by the City Council (the "City Council ") and after such review the City of Schertz (the "City ") has determined that it is in the best interest of the City to adopt the City of Schertz Investment Policy and Strategy, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS Section 1. The City Council hereby adopts the City of Schertz Investment Policy and is repealing any and all prior changes and amendments to Investment Policy attached as Exhibit A. Section 2. The City of Schertz Investment Policy requires an annual review by 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 19th day of December, 2017. . CITY OF SCHERTZ, TEXAS Mayor, Michael R. Carpenter ATTEST: City Secretary, Brenda Dennis (CITY SEAL) EXHIBIT A CITY OF SCHERTZ, TEXAS INVESTMENT POLICY AND STRATEGY See attached ml CITY OF SCHERTZ, TEXAS INVESTMENT POLICY AND STRATEGY TABLE OF CONTENTS I. INVESTMENT SCOPE ............................................................................ ............................... 1. GeneralStatement ............................................................................. ............................... 1 FundsIncluded ................................................................................... ............................... 1 FundsExcluded .................................................................................. ............................... 1 II. INVESTMENT OBJECTIVES .............................................................. ............................... 1. GeneralStatement ............................................................................. ............................... 1 Safety................................................................................................... ............................... 2 Liquidity.............................................................................................. ............................... 2 Diversification.................................................................................... ............................... 2 Yield.................................................................................................... ............................... 2 Maturity.............................................................................................. ............................... 3 PublicTrust ........................................................................................ ............................... 3 PortfolioManagement ....................................................................... ............................... 3 InvestmentStrategy ........................................................................... ............................... 3 III. INVESTMENT RESPONSIBILITY AND CONTROL ..................... ............................... 3 City's Investment Delegate ................................................................ ............................... 3 Selecting And Processing Investments ............................................. ............................... 4 Documenting Investments And Providing Details .......................... ............................... 4 Developing Cash Flow Projections For All Portfolios .................... ............................... 4 Determining Cash Available For Investment .................................. ............................... 4 Monitoring Investment Performance ............................................... ............................... 4 Reconciling Investment Records And General Ledger .................. ............................... 5 Allocating Interest Revenue .............................................................. ............................... 5 Providing Revenue Estimates For All Portfolios ............................ ............................... 5 Prudence............................................................................................. ............................... 5 Business Relationships of City Manager and Investment Officers .............................. 5 Liability of City Manager and Investment Officers ....................... ............................... 6 IV. INVESTMENT REPORTING .............................................................. ............................... 6 QuarterlyReport ............................................................................... ............................... 6 Investment Advisory Committee ...................................................... ............................... 7 AnnualReview ................................................................................... ............................... 7 InvestmentTraining .......................................................................... ............................... 7 Notification of Investment Changes or Defaults ............................. ............................... 8 ComplianceAudit .............................................................................. ............................... 8 V. INVESTMENT INSTRUMENTS .......................................................... ............................... 8 Authorized Investment Instruments ................................................ ............................... 8 VI. INVESTMENT INSTITUTIONS ........................................................ ............................... 11 Investment Institutions Defined ...................................................... ............................... 1.1 -1- VII. INVESTMENT COLLATERAL AND SAFEKEEPING --------------- 122 Collateral wr Insurance For Deposits ............................................................................ |2 Safekeeping ---------------------------------------.l2 Delivery vs. ----------------------------------l2 ' I. INVESTMENT SCOPE General Statement This policy (this "Policy ") serves to satisfy the statutory requirement of the Public Funds Investment Act, as amended, Texas Government Code Chapter 2256, as amended (the "Act "), to define and adopt a formal written investment policy for the City of Schertz, Texas (the "City "). The City shall be authorized to invest its funds pursuant to the provisions of the Act and this Policy or, upon obtaining the prior approval of the City Council of the City (the "City Council "), any other applicable law. Funds Included This Policy applies to all City funds under the direct control of the City, at the present time any funds to be received in the future and any other funds held in custody by the City, unless expressly prohibited by law or unless it is in contravention of any depository contract between the City and any depository bank. The City funds that are entrusted to the City Council for investment pursuant to this Policy are divided into the following portfolios based on the source of funds: The operating account portfolio that consists of funds from the general fund and all other miscellaneous funds. The agency funds portfolio, which consists of all agency funds. Special Revenue, Special Assessment, and all other City funds. Funds Excluded This Policy shall not be applicable to any funds on deposit in any bond account, reserve account, or capital improvement construction account. The provisions of the ordinances authorizing the issuance of these debt obligations and the provisions of the Internal Revenue Code of 1986, as amended control the investment of funds on deposit in these accounts. II. INVESTMENT OBJECTIVES General Statement Funds of the City will be invested in accordance with the Act, this Policy, written investment strategy, and written administrative procedures to be developed by the City Manager, Finance Director, and Investment Officers. The City's investment portfolio shall be managed in a manner to attain the maximum rate of return allowed through prudent and legal investing of City funds while preserving and protecting capital in the overall portfolio. Safety The primary objective of the City for all portfolios and funds is to ensure the safety of the principal. All investment transactions shall first seek to avoid capital losses. Liquidity The City's investment portfolio must be structured in a manner that will provide the liquidity necessary to meet all operating requirements which might reasonably be anticipated, and to pay obligations as they become due. Diversification The policy of the City, except when investing with the City's depository bank or in U.S. Treasury Bills, Bonds or Notes, will be to diversify its investment portfolio when investing in certificates of deposit of other banks and savings and loans domiciled in Texas, repurchase agreements, U.S. agencies securities, and other investment instruments provided for by law. The City's portfolio shall be diversified to eliminate the risk of loss resulting from over concentration of assets in a specific maturity, a specific issuer or a specific class of investments. Investments of the City shall always be selected to provide stability of income and reasonable liquidity. Liquidity is defined as the ability to sell an investment at reasonable cost under adverse market conditions. In establishing specific diversification strategies, the following general polices and constraints shall apply: (1) Portfolio maturities shall be staggered in a way that avoids undue concentration of assets in a specific maturity sector. Maturities shall be selected which provide for stability of income and reasonable liquidity. (2) Liquidity shall be maintained through practices that ensure that the next disbursement date and payroll date are covered through current revenues, maturing investments, or marketable securities. (3) Risks of market price volatility shall be controlled through maturity diversification. Yield It is the objective of the City to earn the maximum rate of return allowed on its investments within the constraints imposed by its safety and liquidity objectives, and the applicable law governing the investment of public funds. The City must invest its portfolios in eligible investments that yield the highest possible rate of return while providing the necessary protection of the principal. The City seeks to optimize return on investments in all portfolios. The average minimum rate of return for the entire portfolio, excluding funds needed for current obligations, must be at least equal to a no default risk rate of return indicator, such as the return on the three -month Treasury bill. If funds are subject to yield 2 restrictions due to federal arbitrage regulations, those funds are excluded from the yield calculation. The City may only invest in a particular eligible investment if its yields are equal to or greater than the bond equivalent yield on United States Treasury obligations of comparable maturity. The City Council may establish additional appropriate criteria for investment performance measures. Public Trust It will be the objective of the City to act responsibly as custodians of the public trust. Portfolio Management Under this Policy all investments will be made with the intent of pursuing, at the time of purchase, the best rate of return on securities held until maturity, and not with the intent of speculative trading. However, securities may be sold before maturity if market conditions present an opportunity for the City to benefit from this transaction. Investment Strategy The City maintains one commingled portfolio for investment purposes which incorporates the specific use and the unique characteristics of the funds in the portfolio. The investment strategy has as its primary objective assurance that anticipated liabilities are matched and adequate investment liquidity provided. The City shall pursue conservative portfolio management strategy. This may be accomplished by creating a laddered maturity structure with some extension for yield enhancement. The maximum maturity of any security will be three years and the maximum dollar weighted average maturity of one year or less will be calculated using the stated final maturity date of each security. The investment strategy for debt service shall have as its primary objective the timely payment of debt service obligations. Successive debt service dates will be fully funded before any investment extensions are made. . III. INVESTMENT RESPONSIBILITY AND CONTROL City's Investment Officers In accordance with Section 2256.005 of the Act, Investment Officers for the City include the City Manager, Executive Directors, the Finance Director, and the Assistant Finance Director. The Finance Director is the primary manager of City investment portfolios, and shall develop and maintain written administrative procedures for the operation of the investment program, consistent with this Policy, including the following: (1) Summarizing the economic and market analysis; (2) Forecasting available cash for investments; 91 (3) Formulating strategies for asset mix, investment instruments, maturities, and target yields; (4) Monitoring performance against the current investment strategy and evaluating reasons for variances; (5) Reporting portfolios performance for the previous quarter to the City Council; and (6) Revising the investment strategy based on recommendations by the Investment Advisory Committee. Selecting and Processing Investments The Investment Officers review the composition of the current portfolio and determines whether the securities under consideration maintain the portfolio within the guidelines established by this Policy, subchapter A of the Act, and all federal, state, and local statutes, rules or regulations. The Investment Officers approves the wire transfer form authorizing the transfer of funds for a specific investment transaction. Documenting Investments and Providing Details The City Manager, Finance Director, and Investment Officers retain documentation of all investment transactions, including any bond swaps. The City Manager, Finance Director, and Investment provides information and supporting documentation for all investment transactions for entry in the General Ledger. The City Manager, Finance Director, and Investment Officers. The Finance Director will utilize information and back -up documentation on all investment transactions to ensure accurate calculation of cash position and accurate posting to appropriate accounts. Developing Cash Flow Projections for All Portfolios The City Manager, Finance Director, and Investment Officers analyzes prior period data and develops and amends cash flow projections of the City's cash requirements The cash flow projections to match assets and liabilities in order to maximize the return on investments. All funds that can be legally invested and match the available balance identified in the cash flow projections are considered available for investment. Monitoring Investment Performance The City Manager, Finance Director, and Investment Officers must routinely perform market and economic analysis to forecast probable market conditions for the investment period by assembling and analyzing current and trend data to develop and plan investment strategy. This analysis uses information obtained from investment advisors, brokers, and investment industry publications. rd The City Manager, Finance Director, and Investment Officers monitor the current and expected yield curves for interest rate movements. When interest rates are expected to decline, maturity ranges are extended within portfolio and the constraints of this Policy. When interest rates are expected to increase, maturity ranges are shortened. The City Manager, Finance Director, and Investment Officers monitors yield spreads between various government agency issues and United States notes and bonds to determine the best value. The City Manager, Finance Director, and Investment Officers summarizes economic and market trend information and presents recommendations for investments strategy based on economic and market conditions to the City Council and the Investment Advisory Committee. Reconciling Investment Records and General Ledger The City Manager, Finance Director, and Investment Officers prepares a monthly report that includes information such as identifying investments at par value, identifying CUSIP number, disclosing the premium or discount, and the interest purchased for the City's investments. The report includes monthly and year -to -date interest accruals and amortization/accretion of premium /discount. This report should reconcile to the investment accounts in the General Ledger. Allocating Interest Revenue The City Manager, Finance Director, and Investment Officers allocates the interest revenue earned from investments proportionately to all accounts that participate in the investment function. Providing Revenue Estimates for All Portfolios The City Manager, Finance Director, and Investment Officers provides an estimate of the investment revenue for the annual budget Prudence Investments of the City shall be made with judgment and the exercise of due care, under prevailing circumstances, that a person of prudence, discretion and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital, as well as the probable income to be derived for the City. Unless authorized by law, a person may not deposit, withdraw, transfer, or manage in any other manner the funds of the City. Business Relationships of City Manager and Investment Officers The City Manager and the Investment Officers must file a statement with the City Council and the Texas Ethics Commission of any personal business relationship that they may have with a business organization as defined in the Act offering to engage in an investment transaction with the City. A personal business relationship is defined by Section 2256.005 of the Act to exist if 5 (1) The investment officer owns 10% or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization; (2) Funds received by the investment officer from the business organization exceed 10% of the investment officer's gross income for the previous year; or (3) The investment officer has acquired from the business organization during the previous year investments with a book value of $2,500 or more for the personal account of the investment officer. Liability of City Manager, Finance Director, and Investment Officers The City Manager, Finance Director, and Investment Officers are not responsible for any loss of the City funds through the failure or negligence of a depository bank or other financial or investment institution as described in Article VI of this Policy. IV. INVESTMENT REPORTING Quarterly Report The City Manager, Finance Director, and Investment Officers will continually monitor and evaluate the City's investments, and report quarterly to the City Council as provided in Section. 2256.023 of the Act. The report must: (1) describe in detail the investment position of the City on the date of the report; (2) be prepared jointly by all investment officers of the City; (3) be signed by each investment officer of the City; (4) contain a summary statement, prepared in compliance with generally accepted accounting principles, of each pooled fund group that states the: (a) beginning market value for the reporting period; (b) additions and changes to the market value during the period; (c) ending market value for the period; and (d) fully accrued interest for the reporting period; (5) state the book value and market value of each separately invested asset at the beginning and end of the reporting period by the type of asset and fund type invested; (6) state the maturity date of each separately invested asset that has a maturity date; (7) state the account or fund or pooled group fund in the City for which each individual investment was acquired; and (8) state the compliance of the investment portfolio of the City as it relates to: (a) the investment strategy expressed in the City's investment policy; and (b) relevant provisions of the Act. The report shall be presented not less than quarterly to the City Council and the City Manager of the City within a reasonable time after the end of the period. If the City invests in other than money market mutual funds, investment pools or accounts offered by its depository bank in the form of certificates of deposit, or money market accounts or similar accounts, the reports prepared by the investment officers under this section shall be formally reviewed at least annually by an independent auditor, and the result of the review shall be reported to the City Council by that auditor. Investment Advisory Committee An Investment Advisory Committee composed of the City Manager (as Chair), Executive Directors, Finance Director, Assistant Finance Director, Budget /Financial Analyst, and two representatives of the City Council, will meet no less twice per year to review the investment portfolio, process, and practices to ensure adherence to the Act and the adopted Policy. Annual Review This Policy and investment strategy will be reviewed by the Investment Advisory Committee and City Council annually. The Investment Advisory Committee will recommend changes to the Policy annually to the City Council who shall adopt a written rule, order, ordinance, or resolution stating that it has reviewed the Policy and investment strategy and shall record in the order, ordinance or resolution any changes made to either the Policy or investment strategy. Investment Training The City Manager, Finance Director, and Investment Officers are required to receive 1.0 hours training pertaining to the Texas Public Funds Investment Act within the first 1.2 months after assuming duties and 8 hours every 2 years thereafter. This training shall be through courses and seminars offered by professional organizations and associations in order to ensure the quality and capability of the Investment Officers and staff in making investment decisions. Training for city council officials on the Investment Committee is recommended to provide education and knowledge pertaining to the Public Funds Investment Act but the training is not mandatory. 7 Notification of Investment Changes or Defaults It shall be the duty of the City Manager, Finance Director, and Investment Officers to notify the City Council of any significant changes in current investment methods and procedures prior to their implementation and to immediately notify the City Council in the event of a default or nonpayment of any investment acquired with City funds. In addition, the City Council in its annual review of the Policy shall adopt any order, ordinance, or resolution establishing its annual review and record any changes to the :Policy or investment strategies. Compliance Audit The City, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the Policy. V. INVESTMENT INSTRUMENTS Authorized Investment Instruments The City Manager, Finance Director, and Investment Officers shall use any or all of the following authorized investment instruments consistent with governing law: (1) Obligations, including letters of credit, of the United States or its agencies and instrumentalities; (2) Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency of instrumentality of the United States; (3) General Obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (6) Certificates of deposit issued by a state or national bank domiciled in this State, a savings bank domiciled in this state or federal credit union domiciled in this State that are (A) Guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor; or (B) Secured by obligations that are described by subdivisions (1) -(6) of this subsection, including mortgage- backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates or in any other manner and amount provided by law for deposits of the City; or (C) Secured in any other manner and amount provided by law for deposits of the City; or (7) Prime domestic bankers' acceptances if it (A) Has stated maturity of 270 days or fewer from the date of its issuance; (B) Will be, in accordance with its terms, liquidated in full at maturity; (C) Is eligible for collateral for borrowing from a Federal Reserve Bank; and (D) Is accepted by a bank organized and existing under the laws of the United States or any state, if the short -term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less than A -1 or P -1 or an equivalent rating by at least one nationally recognized credit rating agency; (8) Commercial paper if it (A) Has a stated maturity of 270 days or less from the date of its issuance; and (B) Is rated not less than A -1, P -1, or the equivalent by at least (1) Two nationally recognized credit rating agencies; or (2) One nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state thereof, (C) For commercial paper with maturity of over 90 days, monthly credit checks will be conducted on the issuer to determine risk and to take appropriate steps to protect the investment (9) Fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by subdivision (1) of this subsection, pledged to the City, held in the City's name, and deposited at the time the investment is made with a third party selected and approved by the City, and placed through a primary government securities dealer, as M defined by the Federal Reserve, or a financial institution doing business in this State; (11) Bond proceeds, other than bond proceeds representing reserves and funds maintained for debt service purposes, may not be invested under the Act in a guaranteed investment contract with a term of longer than five years from date of issuance of the bonds; to be eligible as an authorized investment (A) The City Council must specifically authorize guaranteed investment contracts as an eligible investment in the ordinance or resolution authorizing the issuance of bonds; (B) The City must receive bids from at least three separate providers with no material financial interest in the bonds from which proceeds were received; (C) The City must purchase the highest yielding guaranteed investment contract for which a qualifying bid is received; (D) The price of the guaranteed investment contract must take into account the reasonably expected drawdown schedule for the bond proceeds to be invested; and (E) The provider must certify the administrative costs reasonably expected to be paid to third parties in connection with the guaranteed investment contract. (12) Interest bearing bank deposits insured by the FDIC or National Credit Union Share Insurance Fund, and shared deposit programs, are authorized investments. In addition to the investments described by items (1) - (12) above, the City may invest funds under its control in eligible public funds investment pools as permitted under the Act. A public funds investment pool must be continuously rated no lower than AAA or AAA -m or at an equivalent rating by at least one nationally recognized rating service or no lower than investment grade by at least one nationally recognized rating service with a weighted average maturity no greater than 90 days. In addition to the investments described by items (1) - (1.2) above, the City may, in accordance with the Act, purchase, sell, and invest funds, after receiving a prospectus and other information required by the SEC, under its control in an SEC - regulated, no -load money market mutual fund with a dollar weighted average stated maturity of 60 days and whose investment objectives include seeking to strive to maintain a stable net asset value of $1 per share and must comply with SEC Rule 2a -7, or a no -load mutual fund which is registered with the SEC, has an average weighted maturity of less than two years, is invested exclusively in obligations approved 10 by the Act, is continuously rated as investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent and conforms to the requirements set forth in Sections 2256.016(b) and (c) of the Act relating to the eligibility of investment pools to receive and invest funds of the City. The City shall not (i) invest in the aggregate more than 1.5% of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service in mutual funds as described by the Act; (ii) invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described by the Act; or (iii) invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service in any one mutual fund described by the Act in an amount that exceeds 10% of the total assets of the mutual fund. VI. INVESTMENT INSTITUTIONS Selection of Bank and Securities Dealers Any business organization offering to engage in an investment transactions must be given a copy of the entity's Investment Policy and must sign a certification that acknowledges they have received it and have implemented procedures to preclude imprudent transactions, and supply the City Manager, Finance Director, and Investment Officers with the information specified below. First, a broker /dealer must submit audited financial statements for the financial institution or broker /dealer. Second, a broker /dealer must provide evidence of appropriate registration by the qualified representative of the business organization as such terms are defined in the Act. For bank dealers, this requires a statement from a senior bank official that the bank dealer is appropriately registered with its primary regulatory agency (the Office of the Comptroller of the Currency for National Banks) as a government securities dealer, municipal securities dealer, or both. For a securities firm, this requires a statement from a senior official that the firm is registered with the National Association of Securities Dealers. Finally, a broker /dealer must deliver a written statement, acceptable to the City, by the qualified representative, offering to engage in an investment transaction with the City, that they have received and thoroughly reviewed the Policy and acknowledged that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the City and the business organization that are not authorized by this Policy or the Public Funds Investment Act. The City Manager, Finance Director, and Investment Officers will recommend both primary and secondary securities dealers to the City Council for final approval. The City Manager, Finance Director, and Investment Officers may not acquire or otherwise obtain any authorized investment described in this Policy from a person who has not delivered to the City the written statement required in this section. The City Council or the designated Investment Advisory Committee members shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. 11 VII. INVESTMENT COLLATERAL AND SAFEKEEPING Collateral or Insurance for Deposits The City Manager, Finance Director, and Investment Officers shall ensure that all deposited and invested City funds are, to the extent required, fully collateralized or insured consistent with federal and state law and the current bank depository contract in one or more of the following manners: (1) FDIC or National Credit Union Share coverage; (2) Obligations of the United States or its agencies and instrumentalities; (3) Direct obligations of the State of Texas or its agencies; (4) Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States or its agencies and instrumentalities; or (5) Any other manner allowed by law. (6) Certificates of Deposits can be secured by an FHLB letter of credit. Safekeeping All purchased securities shall be held in safekeeping by the City, or a City account in a third party financial institution, or with a Federal Reserve Bank. All certificates of deposit, insured by FDIC, purchased outside the depository bank shall be held in safekeeping by either the City or a City account in a third party financial institution. All pledged securities by the depository bank shall be held in safekeeping by the City, or a City account in a third party financial institution, or with a Federal Reserve Bank. All certificates of deposit, pledged by the depository bank shall be held in custody of a Federal Reserve :Bank for safekeeping, be the subject of a valid pledge agreement designating the City as the beneficiary of the pledge agreement; be insured by the FDIC; be described in detail by a safekeeping receipt issued to the City by the Federal Reserve Bank having custody of the certificates; and be issued with the City as registered owner. Delivery vs. Payment It will be the policy of the City that all transactions, except investment pool funds and mutual funds, shall be purchased using the delivery vs. payment method through the Federal Reserve System. By so doing, City funds are not released until the City has received, through the Federal Reserve wire, the securities purchased. 12 CITY OF SCHERTZ, TEXAS INVESTMENT POLICY AND STRATEGY TABLE OF CONTENTS I. INVESTMENT SCOPE ............................................................................ ............................... I GeneralStatement... ........................ ...................... — ............................................. ......... I FundsIncl uded ................................................................................... ............................... I FundsExcluded .................................................................................. ............................... I II. INVESTMENT OBJECTIVES .............................................................. ............................... I GeneralStatement ............................................................................. ............................... I Safety................................................................................................... ............................... 2 Liquidity.............................................................................................. ............................... 2 Diversification.................................................................................... ............................... 2 Yield.................................................................................................... ............................... 2 Maturity .................... ............................... .........................Error! Bookmark not defined. PublicTrust ........................................................................................ ............................... 3 PortfolioManagement ....................................................................... ............................... 3 InvestmentStrategy ........................................................................... ............................... 3 III. INVESTMENT RESPONSIBILITY AND CONTROL ..................... ............................... 3 City's Investment Delegate ................................................................ ............................... 3 Selecting And Processing Investments ............................................. ............................... 4 Documenting Investments And Providing Details .......................... ............................... 4 Developing Cash Flow Projections For All Portfolios .................... ............................... 4 Determining Cash Available For Investment ................Error! Bookmark not defined. Monitoring Investment Performance ............................................... ............................... 4 Reconciling Investment Records And General Ledger .................. ............................... 5 Allocating Interest Revenue .............................................................. ............................... 5 Providing Revenue Estimates For All Portfolios ............................ ............................... 5 Prudence............................................................................................. ............................... 5 Business Relationships of City Manager and Investment Officers .............................. 5 Liability of City Manager and Investment Officers ....................... ............................... 6 IV. INVESTMENT REPORTING .............................................................. ............................... 6 QuarterlyReport ............................................................................... ............................... 6 Investment Advisory Committee ...................................................... ............................... 7 AnnualReview ................................................................................... ............................... 8 InvestmentTraining .......................................................................... ............................... 8 Notification of Investment Changes or Defaults ............................. ............................... 9 ComplianceAudit .............................................................................. ............................... 9 V. INVESTMENT INSTRUMENTS .......................................................... ............................... 8 Authorized Investment Instruments ................................................ ............................... 8 VI. INVESTMENT INSTITUTIONS ........................................................ ............................... I I Investment Institutions Defined ............. .........................Error! Bookmark not defined. H Selection of Bank And Securities Dealers ...................................... ............................... 11 VII. INVESTMENT COLLATERAL AND SAFEKEEPING ................ ............................... 12 Collateral or Insurance For Deposits ............................................. ............................... 12 Safekeeping....................................................................................... ............................... 12 Deliveryvs. Payment ....................................................................... ............................... 13 I. INVESTMENT SCOPE General Statement This policy (this "Policy") serves to satisfy the statutory requirement of the Public Funds Investment Act, as amended, Texas Government Code Chapter 2256, as amended (the "Act "), to define and adopt a formal written investment policy for the City of Schertz, Texas (the "City"). The City shall be authorized to invest its funds pursuant to the provisions of the Act and this Policy or, upon obtaining the prior approval of the City Council of the City (the "City Council "), any other applicable law. Funds Included This Policy applies to all City funds under the direct control of the City, at the present time any funds to be received in the future and any other funds held in custody by the City, unless expressly prohibited by law or unless it is in contravention of any depository contract between the City and any depository bank. The City funds that are entrusted to the City Council for investment pursuant to this Policy are divided into the following portfolios based on the source of funds: The operating account portfolio that consists of funds from the general fund and all other miscellaneous funds. The agency funds portfolio, which consists of all agency funds. Special Revenue, Special Assessment, and all other City funds. Funds Excluded This Policy shall not be applicable to any funds on deposit in any bond account, reserve account, or capital improvement construction account. The provisions of the ordinances authorizing the issuance of these debt obligations and the provisions of the Internal Revenue Code of 1986, as amended control the investment of funds on deposit in these accounts. II. INVESTMENT OBJECTIVES General Statement Funds of the City will be invested in accordance with the Act, this Policy, written investment strategy, and written administrative procedures to be developed by the City Manager, Finance Director, and Investment Officers. The City's investment portfolio shall be managed in a manner to attain the maximum rate of return allowed through prudent and legal investing of City funds while preserving and protecting capital in the overall portfolio. Safety The primary objective of the City for all portfolios and funds is to ensure the safety of the principal. All investment transactions shall first seek to avoid capital losses. Liquidity The City's investment portfolio must be structured in a manner that will provide the liquidity necessary to meet all operating requirements which might reasonably be anticipated, and to pay obligations as they become due. Diversification The policy of the City, except when investing with the City's depository bank or in U.S. Treasury Bills, Bonds or Notes, will be to diversify its investment portfolio when investing in certificates of deposit of other banks and savings and loans domiciled in Texas, repurchase agreements, U.S. agencies securities, and other investment instruments provided for by law. The City's portfolio shall be diversified to eliminate the risk of loss resulting from over concentration of assets in a specific maturity, a specific issuer or a specific class of investments. Investments of the City shall always be selected to provide stability of income and reasonable liquidity. Liquidity is defined as the ability to sell an investment at reasonable cost under adverse market conditions. In establishing specific diversification strategies, the following general polices and constraints shall apply: (1) Portfolio maturities shall be staggered in a way that avoids undue concentration of assets in a specific maturity sector. Maturities shall be selected which provide for stability of income and reasonable liquidity. (2) Liquidity shall be maintained through practices that ensure that the next disbursement date and payroll date are covered through current revenues, maturing investments, or marketable securities. (3) Risks of market price volatility shall be controlled through maturity diversification. Yield It is the objective of the City to earn the maximum rate of return allowed on its investments within the constraints imposed by its safety and liquidity objectives, and the applicable law governing the investment of public funds. The City must invest its portfolios in eligible investments that yield the highest possible rate of return while providing the necessary protection of the principal. The City seeks to optimize return on investments in all portfolios. The average minimum rate of return for the entire portfolio, excluding funds needed for current obligations, must be at least equal to a no default risk rate of return indicator, such as the return on the three -month Treasury bill. If funds are subject to yield restrictions due to federal arbitrage regulations, those funds are excluded from the yield calculation. The City may only invest in a particular eligible investment if its yields are equal to or greater than the bond equivalent yield on United States Treasury obligations of comparable maturity. The City Council may establish additional appropriate criteria for investment performance measures. Public Trust It will be the objective of the City to act responsibly as custodians of the public trust. Portfolio Management Under this Policy all investments will be made with the intent of pursuing, at the time of purchase, the best rate of return on securities held until maturity, and not with the intent of speculative trading. However, securities may be sold before maturity if market conditions present an opportunity for the City to benefit from this transaction. Investment Strategy The City maintains one commingled portfolio for investment purposes which incorporates the specific use and the unique characteristics of the funds in the portfolio. The investment strategy has as its primary objective assurance that anticipated liabilities are matched and adequate investment liquidity provided. The City shall pursue conservative portfolio management strategy. This may be accomplished by creating a laddered maturity structure with some extension for yield enhancement. The maximum maturity of any security will be three years and the maximum dollar weighted average maturity of one year or less will be calculated using the stated final maturity date of each security. The investment strategy for debt service shall have as its primary objective the timely payment of debt service obligations. Successive debt service dates will be fully funded before any investment extensions are made. . III. INVESTMENT RESPONSIBILITY AND CONTROL City's Investment Officers In accordance with Section 2256.005 of the Act, Investment Officers for the City include the City Manager, Executive Directors, the Finance Director, and the Assistant Finance Director. The Finance Director is the primary manager of City investment portfolios, and shall develop and maintain written administrative procedures for the operation of the investment program, consistent with this Policy, including the following: (1) Summarizing the economic and market analysis; (2) Forecasting available cash for investments; (3) Formulating strategies for asset mix, investment instruments, maturities, and target yields; (4) Monitoring performance against the current investment strategy and evaluating reasons for variances; (5) Reporting portfolios performance for the previous quarter to the City Council; and (6) Revising the investment strategy based on recommendations by the Investment Advisory Committee. Selecting and Processing Investments The Investment Officers review the composition of the current portfolio and determines whether the securities under consideration maintain the portfolio within the guidelines established by this Policy, subchapter A of the Act, and all federal, state, and local statutes, rules or regulations. The Investment Officers approves the wire transfer form authorizing the transfer of funds for a specific investment transaction. Documenting Investments and Providing Details The City Manager, Finance Director, and Investment Officers retain documentation of all investment transactions, including any bond swaps. The City Manager, Finance Director, and Investment provides information and supporting documentation for all investment transactions for entry in the General Ledger. The City Manager, Finance Director, and Investment Officers. The Finance Director will utilize information and back -up documentation on all investment transactions to ensure accurate calculation of cash position and accurate posting to appropriate accounts. Developing Cash Flow Projections for All Portfolios The City Manager, Finance Director, and Investment Officers analyzes prior period data and develops and amends cash flow projections of the City's cash requirements The cash flow projections to match assets and liabilities in order to maximize the return on investments. All funds that can be legally invested and match the available balance identified in the cash flow projections are considered available for investment. Monitoring Investment Performance The City Manager, Finance Director, and Investment Officers must routinely perform market and economic analysis to forecast probable market conditions for the investment period by assembling and analyzing current and trend data to develop and plan investment strategy. This analysis uses information obtained from investment advisors, brokers, and investment industry publications. 4 The City Manager, Finance Director, and Investment Officers monitor the current and expected yield curves for interest rate movements. When interest rates are expected to decline, maturity ranges are extended within portfolio and the constraints of this Policy. When interest rates are expected to increase, maturity ranges are shortened. The City Manager, Finance Director, and Investment Officers monitors yield spreads between various government agency issues and United States notes and bonds to determine the best value. The City Manager, Finance Director, and Investment Officers summarizes economic and market trend information and presents recommendations for investments strategy based on economic and market conditions to the City Council and the Investment Advisory Committee. Reconciling Investment Records and General Ledger The City Manager, Finance Director, and Investment Officers prepares a monthly report that includes information such as identifying investments at par value, identifying CUSIP number, disclosing the premium or discount, and the interest purchased for the City's investments. The report includes monthly and year -to -date interest accruals and amortization /accretion of premium /discount. This report should reconcile to the investment accounts in the General Ledger. Allocating Interest Revenue The City Manager, Finance Director, and Investment Officers allocates the interest revenue earned from investments proportionately to all accounts that participate in the investment function. Providing Revenue Estimates for All Portfolios The City Manager, Finance Director, and Investment Officers provides an estimate of the investment revenue for the annual budget Prudence Investments of the City shall be made with judgment and the exercise of due care, under prevailing circumstances, that a person of prudence, discretion and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital, as well as the probable income to be derived for the City. Unless authorized by law, a person may not deposit, withdraw, transfer, or manage in any other manner the funds of the City. Business Relationships of City Manager and Investment Officers The City Manager and the Investment Officers __must _file a statement with the City Council and the Texas Ethics Commission of any personal business relationship that they may have with a business organization as defined in the Act offering to engage in an investment transaction with the City. A personal business relationship is defined by Section 2256.005 of the Act to exist if (1) The investment officer owns 10% or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization; (2) Funds received by the investment officer from the business organization exceed 10% of the investment officer's gross income for the previous year; or (3) The investment officer has acquired from the business organization during the previous year investments with a book value of $2,500 or more for the personal account of the investment officer. Liability of City Manager, Finance Director, and Investment Officers The City Manager, Finance Director, and Investment Officers are not responsible for any loss of the City funds through the failure or negligence of a depository bank or other financial or investment institution as described in Article VI of this Policy. Quarterly Report The City Manager, Finance Director, and Investment Officers will continually monitor and evaluate the City's investments, and report quarterly to the City Council as provided in Section 2256.023 of the Act. The report must: (1) describe in detail the investment position of the City on the date of the report; (2) be prepared jointly by all investment officers of the City; (3) be signed by each investment officer of the City; (4) contain a summary statement, prepared in compliance with generally accepted accounting principles, of each pooled fund group that states the: (a) beginning market value for the reporting period; (b) additions and changes to the market value during the period; (c) ending market value for the period; and (d) fully accrued interest for the reporting period; (5) state the book value and market value of each separately invested asset at the beginning and end of the reporting period by the type of asset and fund type invested; (6) state the maturity date of each separately invested asset that has a maturity date; (7) state the account or fund or pooled group fund in the City for which each individual investment was acquired; and (8) state the compliance of the investment portfolio of the City as it relates to: (a) the investment strategy expressed in the City's investment policy; and (b) relevant provisions of the Act. The report shall be presented not less than quarterly to the City Council and the City Manager of the City within a reasonable time after the end of the period. If the City invests in other than money market mutual funds, investment pools or accounts offered by its depository bank in the form of certificates of deposit, or money market accounts or similar accounts, the reports prepared by the investment officers under this section shall be formally reviewed at least annually by an independent auditor, and the result of the review shall be reported to the City Council by that auditor. Investment Advisory Committee An Investment Advisory Committee composed of the City Manager (as Chair), Executive Directors, t+e- aye&, Finance Director, Assistant Finance Director, Budget /Financial Analyst, and two representatives one-4yieffJ4,et of the City Council, will meet no less fliaii �s ws x,s3 t z k to review t ?r ¢ ivP m i 14,estK-+w;i i- 0,)1+11 °<II IIent hisiriun �. t _ . _s ice 90 th ct aIi d file �d�n t _}�a�r;f<,i�+� sr��,�s st,u��r�a;.t�c�� t �s��,tt;c �,ihrrcr�, Annual Review This Policy and investment strategy will be reviewed by 91rc llzr _ttr, �1i_ Acis, isonv Coa iin-J ec and City Council annually. 1 h to cs19 iicnt .A d\ i ;ory _ "onlinittee will rc o 1111erld tltC Policy a nr-�u, lv to tit, 4 City Council shall adopt a written rule, order, ordinance, or resolution stating that it has reviewed the Policy and investment strategy and shall record in the order, ordinance or resolution any changes made to either the Policy or investment strategy. Investment Training The City Manager, Finance Director, and Investment Officers are required to receive 10 hours training pertaining to the Texas Public Funds Investment Act within the first 12 months after assuming duties and 8 hours every 2 years thereafter. This training shall be through courses and seminars offered by professional organizations and associations in order to ensure the quality and capability of the Investment Officers and staff in making investment decisions. Training for city council officials on the Investment Committee is recommended to provide education and knowledge pertaining to the Public Funds Investment Act but the training is not mandatory. Notification of Investment Changes or Defaults It shall be the duty of the City Manager, Finance Director, and Investment Officers to notify the City Council of any significant changes in current investment methods and procedures prior to their implementation and to immediately notify the City Council in the event of a default or nonpayment of any investment acquired with City funds. In addition, the City Council in its annual review of the Policy shall adopt any order, ordinance, or resolution establishing its annual review and record any changes to the Policy or investment strategies. Compliance Audit The City, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the Policy. V. INVESTMENT INSTRUMENTS Authorized Investment Instruments The City Manager, Finance Director, and Investment Officers shall use any or all of the following authorized investment instruments consistent with governing law: (1) Obligations, including letters of credit, of the United States or its agencies and instrumentalities; (2) Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency of instrumentality of the United States; (3) General Obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (6) Certificates of deposit issued by a state or national bank domiciled in this State, a savings bank domiciled in this state or federal credit union domiciled in this State that are (A) Guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor; or (B) Secured by obligations that are described by subdivisions (1) -(6) of this subsection, including mortgage- backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates or in any other manner and amount provided by law for deposits of the City; or (C) Secured in any other manner and amount provided by law for deposits of the City; or (7) Prime domestic bankers' acceptances if it (A) Has stated maturity of 270 days or fewer from the date of its issuance; (B) Will be, in accordance with its terms, liquidated in full at maturity; (C) Is eligible for collateral for borrowing from a Federal Reserve Bank; and (D) Is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less than A -I or P -1 or an equivalent rating by at least one nationally recognized credit rating agency; (8) Commercial paper if it (A) Has a stated maturity of 270 days or less from the date of its issuance; and (B) Is rated not less than A -1, R1, or the equivalent by at least (1) Two nationally recognized credit rating agencies; or (2) One nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state thereof, 9 (C) For commercial paper with maturity of over 90 days, monthly credit checks will be conducted on the issuer to determine risk and to take appropriate steps to protect the investment (9) Fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by subdivision (1) of this subsection, pledged to the City, held in the City's name, and deposited at the time the investment is made with a third parry selected and approved by the City, and placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this State; (11) Bond proceeds, other than bond proceeds representing reserves and funds maintained for debt service purposes, may not be invested under the Act in a guaranteed investment contract with a term of longer than five years from date of issuance of the bonds; to be eligible as an authorized investment (A) The City Council must specifically authorize guaranteed investment contracts as an eligible investment in the ordinance or resolution authorizing the issuance of bonds; (B) The City must receive bids from at least three separate providers with no material financial interest in the bonds from which proceeds were received; (C) The City must purchase the highest yielding guaranteed investment contract for which a qualifying bid is received; (D) The price of the guaranteed investment contract must take into account the reasonably expected drawdown schedule for the bond proceeds to be invested; and (E) The provider must certify the administrative costs reasonably expected to be paid to third parties in connection with the guaranteed investment contract. z .. t�tl rtz sl investments. In addition to the investments described by items (1) - (12) above, the City may invest funds under its control in eligible public funds investment pools as permitted under the Act. A public funds investment pool must be continuously rated no lower than AAA or AAA -m or at an equivalent rating by at least one nationally recognized rating service or no lower than investment 10 Formatted: Underline, Font color: Red Formatted: Underline, Font color: Red Formatted: Underline, Font color: Red grade by at least one nationally recognized rating service with a weighted average maturity no greater than 90 days. In addition to the investments described by items (1) - (12) above, the City may, in accordance with the Act, purchase, sell, and invest funds, after receiving a prospectus and other information required by the SEC, under its control in an SEC - regulated, no -load money market mutual fund with a dollar weighted average stated maturity of 60 days and whose investment objectives include seeking to strive to maintain a stable raet asset value of $1 pcz share and must conipl with Et: FZizie 2a_ i a, �r + a e° +c m rc n a a a i s or s s w � -inv ,- nient -}r'r tives incl ,, ing to rriaintaira a s - -as��t -vat �rf -`�-1 pr;r �fraa� or a no -load mutual fund which is registered with the SEC, has an average weighted maturity of less than two years, is invested exclusively in obligations approved by the Act, is continuously rated as investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent and conforms to the requirements set forth in Sections 2256.016(b) and (c) of the Act relating to the eligibility of investment pools to receive and invest funds of the City. The City shall not (i) invest in the aggregate more than 15% of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service in mutual funds as described by the Act; (ii) invest any portion of bond proceeds, reserves and funds held for debt service, in mutual fmdsfunds described by the Act; or (iii) invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service in any one mutual fund described by the Act in an amount that exceeds 10% of the total assets of the mutual fund. Selection of Bank and Securities Dealers A11 r as al instirtioir r and iarokur deaEors a he doirc ire me gr: ^died bidders Any business organization offering Wen in an - investment transactions must be given a copy of the emit y qie� Investment Policy and must sign a certification that acknowledges they have received and i�mpleinevitgd- procedures to - -prec lucie_impriidt nt- transactions2 and_supply the City Manager, Finance Director, and Investment Officers with the information specified below. First, a broker /dealer must submit audited financial statements for the financial institution or broker/dealer. Second, a broker/dealer must provide evidence of appropriate registration by the qualified representative of the business organization as such terms are defined in the Act. For bank dealers, this requires a statement from a senior bank official that the bank dealer is appropriately registered with its primary regulatory agency (the Office of the Comptroller of the Currency for National Banks) as a government securities dealer, municipal securities dealer, or both. For a securities firm, this requires a statement from a senior official that the firm is registered with the National Association of Securities Dealers. Finally, a broker /dealer must deliver a written statement, acceptable to the City, by the qualified representative, offering to engage in an investment transaction with the City, that they have received and thoroughly reviewed the Policy and acknowledged that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the City and the 11 business organization that are not authorized by this Policy or the Public Funds Investment Act. The City Manager, Finance Director, and Investment Officers will recommend both primary and secondary securities dealers to the City Council for final approval. The City Manager, Finance Director, and Investment Officers may not acquire or otherwise obtain any authorized investment described in this Policy from a person who has not delivered to the City the written statement required in this section. The City Council or the designated Investment Advisory Committee members shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. VII. INVESTMENT COLLATERAL AND SAFEKEEPING Collateral or Insurance for Deposits The City Manager, Finance Director, and Investment Officers shall ensure that all deposited and invested City funds are, to the extent required, fully collateralized or insured consistent with federal and state law and the current bank depository contract in one or more of the following manners: (1) FDIC inUZ = ~� eeAw -age or National Credit Union Share coverage; (2) Obligations of the United States or its agencies and instrumentalities; (3) Direct obligations of the State of Texas or its agencies; (4) Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States or its agencies and instrumentalities; or (5) Any other manner allowed by law. (Ci) Certificates of qengojts can be secured by_an_FIILB I-etter of credit, Safekeeping All purchased securities shall be held in safekeeping by the City, or a City account in a third parry financial institution, or with a Federal Reserve Bank. All certificates of deposit, insured by FDIC, purchased outside the depository bank shall be held in safekeeping by either the City or a City account in a third party financial institution. All pledged securities by the depository bank shall be held in safekeeping by the City, or a City account in a third party financial institution, or with a Federal Reserve Bank. 12 All certificates of deposit, pledged by the depository bank shall be held in custody of a Federal Reserve Bank for safekeeping, be the subject of a valid pledge agreement designating the City as the beneficiary of the pledge agreement; be insured by the FDIC; be described in detail by a safekeeping receipt issued to the City by the Federal Reserve Bank having custody of the certificates; and be issued with the City as registered owner. Delivery vs. Payment It will be the policy of the City that all transactions, except investment pool funds and mutual funds, shall be purchased using the delivery vs. payment method through the Federal Reserve System. By so doing, City funds are not released until the City has received, through the Federal Reserve wire, the securities purchased. 13