Bylaws appv 06-2014 rev. by Art RodriguezRevised 6/26/2014 adr
Revised 1/31/2013 rcf
Revised 2/17/2012 rcf
BYLAWS
OF THE
CIBOLO VALLEY LOCAL GOVERNMENT CORPORATION
ARTICLE I
PURPOSE AND POWERS
Section 1.1. Name. The name of the nonprofit corporation is the Cibolo Valley Local
Government Corporation (the “Corporation”).
Section 1.2. Purpose. The Corporation is incorporated for the purposes set forth in
Article IV of its Articles of Incorporation, and any amendments thereto, the same to be
accomplished on behalf of the City of Cibolo, Texas (“Cibolo”) and the City of Schertz, Texas
(“Schertz”), as their duly constituted authority and instrumentality in accordance with Subchapter
D of Chapter 431, Texas Transportation Code, as amended (the “Act”), and other applicable laws
of the State of Texas (the “State”).”
Section 1.3. Powers. In the fulfillment of its corporate purpose, the Corporation shall be
governed by the Act, and shall have all the powers set forth and conferred in its Articles of
Incorporation, in the Act, and in other applicable law, subject to the limitations prescribed therein
and herein and to the provisions thereof and hereof.
Section 1.4. Nonprofit Corporation. The Corporation shall be a public, nonprofit
corporation, and no part of its net earnings remaining after payment of its bonds and expenses shall
inure to the benefit of any person other than Cibolo and Schertz (collectively, the “Cities”).
ARTICLE II
BOARD OF DIRECTORS
Section 2.1. Powers, Number, and Term of Office.
(a) The property and affairs of the Corporation shall be managed and controlled
by a Board of Directors (the “Board”) subject to the restrictions imposed by law, the Act,
the Articles of Incorporation, and these Bylaws, the Board shall exercise all of the powers
of the Corporation.
(b) The Board shall consist of four (4) directors, each of whom must at all times
while serving as director be a resident of the City that appointed such director. Each City
shall appoint two (2) directors to the Board. The governing bodies of the Cities shall
collectively be referred to herein as “Governing Bodies.” Each member of the Board shall
be appointed for a four-year term until the Corporation is dissolved. A director may be
reappointed. The four-year term of office from the City of Cibolo began on October 1,
2011. The four-year term of office from the cities of Schertz began on October 1, 2012.
Revised 6/26/2014 adr
Revised 1/31/2013 rcf
Revised 2/17/2012 rcf
2
(c) A member of each Governing Body, selected by such Governing Body,
shall serve as an ex-officio, non-voting member of the Board for the purpose of serving as
a liaison between the Board and the Governing Bodies, as appropriate. These ex-officio
members shall be appointed by, be replaced by, and be subject to removal by the
appropriate Governing Body. However, in the event that a Board director is unable to
participate in any Board meeting as a result of a conflict of interest, illness, or absence, the
ex-officio member from the same City that appointed the Board director unable to
participate may substitute for such Board director. When so substituted, the ex-officio
member shall possess all of the powers and responsibilities of the Board director that is
unable to participate, except serve as an officer pursuant to Article III.
(d) The number of directors may be changed by amendment to these Bylaws,
but such number must be at least three (3). Any such amendments to the Bylaws shall
establish the methodology for the appointment and terms of the directors.
(e) The directors constituting the initial Board shall be those persons set forth
in Section 2.1(b) above, who are the initial directors named in the Articles of Incorporation.
Successor directors shall have the qualifications and shall be appointed to the terms set
forth herein.
(f) Any director may be removed from office by the Governing Body that
appointed the director for cause or at any time without cause.
(g) In case of a vacancy in the Board through removal or by reason of death,
resignation, failure to be a resident of his or her appointing City or other disqualification,
or other cause or incapacity, a successor to hold office for the remainder of the former
director’s term shall be appointed by the appropriate Governing Body. This replacement
director shall be appointed within thirty (30) days after written notice by the Executive
Director, or his designee, to the appropriate Governing Body of the need for a replacement
director.
Section 2.2. Additional Powers. In addition to the powers and authorities by these
Bylaws expressly conferred upon them, the Board may exercise all such powers of the Corporation
and do all lawful acts and things as are not by statute, other law, or by these Bylaws prohibited.
Without prejudice to such general powers and other powers conferred by statute, other law, and
by these Bylaws, it is hereby expressly declared the Board shall have the powers set forth in the
Act.
Section 2.3. Meetings of Directors.
(a) The directors may hold their meetings at such place or places inside the
State as the Board may from time to time determine; provided, however, in the absence of
any such determination by the Board, the meetings shall be held at the principal office of
the Corporation as specified in Section 5.1(a) of these Bylaws. The Corporation shall also
conduct at least one annual regular meeting of the Corporation on September 1 or the next
business day thereafter. In addition, regular meetings of the Board shall be held without
Revised 6/26/2014 adr
Revised 1/31/2013 rcf
Revised 2/17/2012 rcf
3
the necessity of notice to directors at such times and places as shall be designated from
time to time by the Board. Special meetings of the Board shall be held whenever called by
the President, by the Secretary, by a majority of the directors, or by a majority of the
Governing Bodies.
(b) In addition to notices provided pursuant to Section 2.4, the Secretary shall
give notice to each director and ex-officio member of each meeting in person or by mail or
telephone at least twenty-four (24) hours before the meeting. In the event of an emergency
meeting, such notice shall be in person or by telephone at least two (2) hours before the
meeting.
(c) In addition to notices provided pursuant to Section 2.4, except for an
emergency meeting, whenever any notice is required to be given to the Board, said notice
shall be deemed to be sufficient if given to an e-mail address provided by a director or ex-
officio member by depositing the same in a post office box in a sealed postpaid wrapper
addressed to the person entitled thereto at his or her post office address as it appears on the
books of the Corporation, and such notice shall be deemed to have been given on the day
of such e-mail delivery or mailing. Attendance of a director at a meeting shall constitute a
waiver of notice of such meeting, except attendance of a director at a meeting for the
express purpose of objecting to the transaction of any business on the grounds that the
meeting is not lawfully called or convened. Neither the business to be transacted at nor the
purpose of any regular or special meeting of the Board need be specified in the notice to
directors or waiver of notice of such meeting, unless required by the Board. A waiver of
notice in writing, signed by the person or persons entitled to said notice, whether before or
after the time stated therein, shall be deemed equivalent to the giving of such notice.
Section 2.4. Open Meetings Act. All meetings and deliberations of the Board shall be
called, convened, held, and conducted, and notice shall be given to the public, in accordance with
the Texas Open Meetings Act, Chapter 551, Texas Government Code, as amended.
Section 2.5. Quorum. A majority of the entire membership of the Board shall constitute
a quorum to conduct official business of the Corporation. The act of a majority of the Board
present at a meeting at which a quorum is in attendance shall constitute the act of the Board and
of the Corporation, unless the act of a greater number is required by law.
Section 2.6. Conduct of Business.
(a) At the meetings of the Board, matters pertaining to the business of the
Corporation shall be considered in accordance with rules of procedure as from time to time
prescribed by the Board.
(b) At all meetings of the Board, the President shall preside. In the absence of
the President, the Vice President shall preside. In the absence of both the President and
Vice President, a member of the Board selected by the members present, shall preside.
(c) The President shall be a voting member of the Board.
Revised 6/26/2014 adr
Revised 1/31/2013 rcf
Revised 2/17/2012 rcf
4
(d) The Secretary of the Corporation shall act as Secretary of all meetings of
the Board, but in the absence of the Secretary, the presiding officer may appoint any person
to act as Secretary of the meeting. The Executive Director, Treasurer, and any Assistant
Secretary may, at the option of the Board, be employees of any one of the Cities and each
member of the Board with the exception of the President, Vice President, or Secretary, may
be appointed as Assistant Secretaries.
Section 2.7. Committees of the Board. The Board may designate two (2) or more
directors to constitute an official committee of the Board to exercise such authority, as approved
by resolution of the Board. It is provided, however, that all final, official actions of the Corporation
may be exercised only by the Board. Each committee so designated shall keep regular minutes of
the transactions of its meetings and shall cause such minutes to be recorded in books kept for that
purpose in the principal office of the Corporation and any such meetings must be conducted in
accordance with the provisions of the Texas Open Meetings Act, Chapter 551, Texas Government
Code, as amended, if applicable.
Section 2.8. Compensation of Directors. Directors shall not receive any salary or
compensation for their services as directors. However, they shall be reimbursed for their actual
expenses incurred in the performance of their official duties as directors.
ARTICLE III
OFFICERS
Section 3.1. Titles and Terms of Office.
(a) The officers of the Corporation shall be a President, a Vice President,
Treasurer, a Secretary, an Assistant Secretary, an Executive Director, and such other
officers as the Board may from time to time elect. One person may hold more than one
office, except that the President shall not hold the office of Secretary or Assistant Secretary.
Officers shall serve for terms ending on the next September 30 or until his or her successor
is elected or appointed; provided, the initial officers shall serve until September 30, 2011
or until their successors are elected. Upon the expiration of the terms, each officer shall
have the right to be reelected.
(b) All officers shall be subject to removal from office at any time by a vote of
a majority of the Board.
(c) A vacancy in any office shall be filled by a vote of a majority of the Board.
Revised 6/26/2014 adr
Revised 1/31/2013 rcf
Revised 2/17/2012 rcf
5
Section 3.2. Powers and Duties of the President. The President shall be the chief
operating executive officer of the Corporation, and subject to the authority of the Board, the
President shall be in general charge of the properties and affairs of the Corporation, and execute
all contracts, conveyances, franchises, bonds, deeds, assignments, mortgages, notes and other
instruments in the name of the Corporation. The President shall preside over the meetings of the
Corporation.
In naming the President, the Board should endeavor (but is not required) to appoint the
same person who served as Vice President for the previous year and to appoint the representative
of a different City each year, rotating through all of the Cities.
Section 3.3. Vice President. The Vice President shall have such powers and duties as
may be prescribed by the Board and shall exercise the powers of the President during that officer’s
absence or inability to act, in their respective order. Any action taken by the Vice President in the
performance of the duties of the President shall be conclusive evidence of the absence or inability
to act of the President at the time such action was taken.
Subject to the second paragraph of Section 3.2 and the following sentence, the Vice
President shall serve as President-elect, in order to maintain consistency in the management of the
Corporation. In naming the Vice President, the Board should endeavor (but is not required) to
appoint the representative of a different City each year, rotating through all of the Cities.
Section 3.4. Treasurer. The Treasurer shall be the chief fiscal officer of the Corporation,
and shall have the responsibility to see to the handling, custody, and security of all funds and
securities of the Corporation in accordance with these Bylaws. When necessary or proper, the
Treasurer may endorse and sign, on behalf of the Corporation, for collection or issuance, checks,
notes, and other obligations in or drawn upon such bank, banks or depositories as shall be
designated by the Board consistent with these Bylaws. The Treasurer shall see to the entry in the
books of the Corporation full and accurate accounts of all money received and paid out on account
of the Corporation. The Treasurer shall, at the expense of the Corporation, give such bond for the
faithful discharge of his/her duties in such form, and amount as the Board may require. All check
writing authority will follow all applicable policies adopted by the Governing Bodies concerning
authorizations, signatures and disbursements. It is intended that all checks, drafts, or other
payment obligations of the Corporation must be approved by the President or Vice President of
the Board and the Executive Director and Treasurer.
Section 3.5. Secretary. The Secretary shall keep the minutes of all meetings of the Board
and books provided for that purpose, shall give and serve all notices, may sign with the President
in the name of the Corporation, and/or attest the signature thereto, all contracts, conveyances,
franchises, bonds, deeds, assignments, mortgages, notes and other instruments of the Corporation,
shall have charge of the corporate books, records, documents and instruments, except the books of
account and financial records and securities, and such other books and papers as the Board may
direct, all of which shall at all reasonable times be open to public inspection upon application at
the office of the Corporation during business hours, and shall in general perform all duties incident
to the office of Secretary subject to the control of the Board.
Revised 6/26/2014 adr
Revised 1/31/2013 rcf
Revised 2/17/2012 rcf
6
Section 3.6. Assistant Secretary. The Assistant Secretary (one or more) shall act as
Secretary in the event of the absence or unavailability of the Secretary.
Section 3.7. Executive Director. The Board may appoint an Executive Director of the
Corporation to provide administrative support services for the Corporation and to perform other
duties as prescribed by the Board.
Section 3.8. Additional Provisions Relating to Officers. The President, Vice President,
and Secretary shall be named from among the members of the Board. The Executive Director,
Treasurer, and any additional Assistant Secretary may, at the option of the Board, be employees
of the Cities. The Executive Director shall retain legal counsel and financial advisors for the
Corporation, subject to the approval of the majority of the Board.
Section 3.9. Compensation. Officers who are members of the Board shall not receive
any salary or compensation for their services, except that they shall be reimbursed for the actual
expenses incurred in the performance of their official duties as officers.
ARTICLE IV
FUNCTIONAL CORPORATE DUTIES AND REQUIREMENTS
Section 4.1. Cibolo Valley Local Government Corporation Plan.
(a) It shall be the duty and obligation of the Board to establish, finance, and
implement the Cibolo Valley Local Government Corporation Plan, subject to approval or
disapproval by each Governing Body.
(b) In carrying out its obligations under subsection (a), the Corporation shall be
authorized to exercise all rights and powers granted under the Act.
(c) The Board shall submit an annual report to each Governing Body as to the
status of its activities in carrying out its obligations under this Section and shall report
periodically as requested in writing by any Governing Body.
(d) Any and all agreements between the Corporation and other parties shall be
authorized, executed, and approved, and delivered in accordance with applicable law.
Section 4.2. Annual Corporate Budget. Prior to the commencement of each fiscal year
of the Corporation, the Board shall adopt a proposed budget of expected revenues from sources
set out in Section 4.5 of this article and proposed expenditures for the next ensuing fiscal year.
The budget shall contain such classifications and shall be in such form as may be prescribed from
time to time by any Governing Body. The budget shall not be effective until the same has been
approved by each Governing Body, which approval shall not be unreasonably withheld.
Revised 6/26/2014 adr
Revised 1/31/2013 rcf
Revised 2/17/2012 rcf
7
Section 4.3. Books, Records, Audits.
(a) The Corporation shall keep and properly maintain in accordance with
generally accepting accounting principles, complete books, records, accounts, and
financial statements pertaining to its corporate funds, activities, and affairs.
(b) At the direction of each Governing Body, the books, records, accounts, and
financial statements of the Corporation may be maintained for the Corporation by the
accountants, staff, and personnel of any of the Cities.
(c) The Corporation, or the person selected above, if the option of
subsection (b) is selected, shall cause its books, records, accounts, and financial statements
to be studied at least once each fiscal year by an outside, independent auditing and
accounting firm selected by each Governing Body and approved by the Board. Such an
audit shall be at the expense of the Corporation. A copy of the Corporation’s annual audit
shall be delivered to each Governing Body within ten (10) days after it is approved by the
Board, but in no event later than 150 days after the end of the fiscal year of the Corporation.
A copy of e ach quarterly unaudited financial statement of the Corporation shall be provided
to each Governing Body within thirty (30) days after the end of each fiscal quarter.
(d) All books and records of the Corporation may be inspected by any director
or his or her agent or attorney for any purpose at any reasonable time and at all times each
Governing Body shall have access to the books, records, and financial statements of the
Corporation.
Section 4.4. Deposit and Investment of Corporation Funds.
(a) All proceeds from loans or from the issuance of bonds, notes, or other debt
instruments (“Obligations”) issued by the Corporation in accordance with the provisions
of the Act shall be deposited and invested as provided in the resolution, order, indenture,
or other documents authorizing or relating to their execution or issuance.
(b) Subject to the requirements of contracts, loan agreements, indentures or
other agreements securing Obligations, all other money of the Corporation, if any, shall be
deposited, secured, and/or invested in the manner provided for the deposit, security, and/or
investment of the public funds of Texas municipalities. The Board shall designate the
accounts and depositories to be created and designated for such purposes, and the methods
of withdrawal of funds therefrom for use by and for the purposes of the corporation upon
the signature of its Treasurer and such other persons as the Board designates. The accounts,
reconciliation, and investment of such funds and accounts shall be performed by the
Executive Director, or his designee.
Revised 6/26/2014 adr
Revised 1/31/2013 rcf
Revised 2/17/2012 rcf
8
Section 4.5. Expenditure of Corporate Money. The proceeds from the investment of
funds of the Corporation, the proceeds from the sale of property, revenues generated by and
payable to the Corporation pursuant to the Act or any other source of revenues that are payable to
the Corporation, and the proceeds derived from the sale of Obligations, may be expended by the
Corporation for any of the purposes authorized by the Act, subject to the following limitations:
(a) Expenditures that may be made from a fund created with the proceeds of
Obligations, and expenditures of money derived from sources other than the proceeds of
Obligations may be used for the purpose of financing or otherwise providing for the
acquisition, construction, rehabilitation, renovation, repair, equipping, furnishing and
placement in service of public facilities of the Corporation under the terms of the Act; or
(b) All other proposed expenditures shall be made in accordance with and shall
be set forth in the annual budget required by Section 4.2 or in contracts meeting the
requirements of Section 4.1(d) of this Article.
Section 4.6. Issuance of Obligations. No Obligations, including refunding obligations,
shall be authorized or sold and delivered by the Corporation unless each Governing Body approves
such Obligations by action taken prior to the date of initial delivery of the Obligations to the initial
purchasers thereof.
ARTICLE V
MISCELLANEOUS PROVISIONS
Section 5.1. Principal Office.
(a) The registered office of the Corporation shall be the Corporation’s principal
office.
(b) The Corporation shall have and shall continually designate a registered
agent at its office, as required by the Act.
Section 5.2. Fiscal Year. The fiscal year of the Corporation shall commence on
October 1st and shall conclude on September 30th of each year.
Section 5.3. Seal. The Corporation shall not have a corporate seal.
Section 5.4. Resignations. Any director or officer may resign at any time. Such
resignation shall be made in writing and shall take effect at the time specified therein, or, if no
time is specified, at the time of its receipt by the President or Secretary. The acceptance of
resignation shall not be necessary to make it effective, unless expressly so provided in the
resignation.
Revised 6/26/2014 adr
Revised 1/31/2013 rcf
Revised 2/17/2012 rcf
9
Section 5.5. Approval or Advice and Consent of a Governing Body. To the extent that
these Bylaws refer to any approval by a Governing Body or refer to advice and consent by a
Governing Body, such advice and consent shall be evidenced by a certified copy of a resolution,
order, ordinance, or motion duly adopted by a Governing Body.
Section 5.6. Indemnification of Directors, Officers and Employees.
(a) The Corporation is, for the purposes of the Texas Tort Claims Act
(Subchapter A, Chapter 101, Texas Civil Practices and Remedies Code), a governmental
unit and its actions are governmental functions.
(b) The Corporation shall indemnify each and every member of the Board, its
officers and its employees and each member of the Board and each employee of the
Corporation, to the fullest extent permitted by law, against any and all liability or expense,
including attorneys fees, incurred by any of such persons by reason of any actions or
omissions that may arise out of the sanctions and activities of the Corporation; provided,
however, that the Corporation may not provide indemnity in any manner if the director,
officer, employee, or agent is guilty of negligence or misconduct in relation to the matter.
The legal counsel for the Corporation is authorized to provide a defense for members of
the Board, officers, and employees of the Corporation.
ARTICLE VI
EFFECTIVE DATE, AMENDMENTS; MISCELLANEOUS
Section 6.1. Effective Date. These Bylaws shall become effective upon the occurrence
of the following events:
(a) the approval of these Bylaws by each Governing Body, which approval may
be granted prior to the creation of the Corporation; and
(b) the adoption of the Bylaws by the Board.
Section 6.2. Amendments to Articles of Incorporation and Bylaws. The Articles of
Incorporation of the Corporation and these Bylaws may be amended only in the manner provided
in the Articles of Incorporation and the Act.
Section 6.3. Interpretation of Bylaws. These Bylaws shall be liberally construed to
effectuate the purposes set forth herein. If any word, phrase, clause, sentence, paragraph, section
or other part of these Bylaws, or the application thereof to any person or circumstances, shall ever
be held to be invalid or unconstitutional by any court of competent jurisdiction, the remainder of
these Bylaws and the application of such word, phrase, clause, sentence, paragraph, section or
other part of these Bylaws to any other person or circumstance shall not be affected thereby.
Revised 6/26/2014 adr
Revised 1/31/2013 rcf
Revised 2/17/2012 rcf
10
Section 6.4. Dissolution. Upon the dissolution of the Corporation after payment of all
obligations of the Corporation, all remaining assets of the Corporation shall be transferred to the
Cities, on an equal basis.
* * *
Adopted: June 26, 2014 Revision
Adopted: January 31, 2013 Revision
Adopted: February 23, 2012 Revision
Adopted: July 28, 2011 - Original