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05-19-2009 AgendaMultiple files are bound together in this PDF Package.Adobe recommends using Adobe Reader or Adobe Acrobat version 8 or later to work with documents contained within a PDF Package. By updating to the latest version, you’ll enjoy the following benefits: • Efficient, integrated PDF viewing • Easy printing • Quick searches Don’t have the latest version of Adobe Reader? Click here to download the latest version of Adobe ReaderIf you already have Adobe Reader 8, click a file in this PDF Package to view it.ftware\Classes\.pdf SCHERTZ CITY COUNCIL REGULAR SESSION MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 REGULAR AGENDA TUESDAY, MAY 19, 2009 Regular Session 6:30 p.m. Call to Order Invocation and Pledges of Allegiance to the Flags of the United States and State of Texas. PRESENTATION • Proclamation for Emergency Medical Services Week (Mayor) • Proclamation for Public Works Week (Mayor) 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 5 minutes. Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and/or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered. Discussion and/or Action Items 1. Main Street and FM 78 Reinvestment Update – Power Point presentation and discussion and/or action regarding update on strategy for Main Street and FM 78 Reinvestment. (G. Antuna/J. Jewell) 2. Minutes – Discussion and/or action regarding the approval of the minutes of the May 12, 2009 regular meeting. 3. Ordinance No. 09-F-17 – Consideration and/or action approving first reading of Ordinance No. 09-F-17 replacing Section 90-119 and Section 90-120 of the City of Schertz Code of Ordinances – Amending and Replacing the Drought Contingency Plan. First Reading (J. Hooks) 4. Resolution No. 09-R-27 -Consideration and/or action approving a resolution authorizing the adoption of a revised City of Schertz Investment Policy. (R. Galindo) 5-19-09 Council Agenda 5. Speed limit on FM 3009 to 45 mph – Consideration and/or action supporting TxDOT’s petition to amend the speed limit on FM 3009 to 45mph (L. Dublin) 6. Resolution No. 09-R-28 – Consideration and/or action approving a resolution authorizing a transfer to the City from the City of Schertz Economic Development Corporation of funds for the new City Library. First Reading (G. Antuna/J. Jewell) EXECUTIVE SESSION Called under Section 551.071 Litigation, pending litigation and consultation with City Attorney; Section 551.072 Texas Government Code -Deliberation regarding the purchase, exchange, sale, lease, or value of real property. RECONVENE TO REGULAR SESSION 7. Take any additional action deemed necessary as a result of the Executive Session. Requests and Announcements 8. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. 9. Requests by Mayor and Councilmembers to City Manager and Staff for information. 10. 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 • Upcoming City Council agenda items 11. Announcements by City Manager • Recognition of City employee actions • New Departmental initiatives Adjournment CERTIFICATION I, BRENDA DENNIS, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 15th DAY OF MAY 2009 AT 12:30 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. 5-19-09 City Council Agenda Page -2 - Brenda Dennis BRENDA DENNIS, TRMC, CMC CITY SECRETARY 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 _______________, 2009. ____________________________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 all 619-1030 at least 24 hours in advance of meeting COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS Mayor Baldwin Liaison -Schertz Seguin Local Government Corporation Liaison -Schertz Historical/Preservation Committee Interview Board for Boards and Commissions Investment Advisory Committee ASA Commuter Rail District Board Councilmember Wilenchik Investment Advisory Committee Liaison – Animal Advisory Board Liaison -Schertz Chamber of Commerce Liaison -Board of Adjustment Audit Committee Interview Board for Boards and Commissions Liaison – TIRZ II Board AACOG Advisory Committee AACOG Economic Development TML Board of Directors TML Municipal Revenue & Taxation Committee Councilmember Fowler Liaison -Schertz Economic Development Corporation Liaison -Parks & Recreation Advisory Board Interview Board for Boards and Commissions Mayor Pro-Tem Carpenter Liaison -Library Advisory Board Liaison -Planning and Zoning Commission Liaison -Schertz Youth Commission Liaison – TIRZ II Board Hal Baldwin Scholarship Committee Councilmember Scagliola Liaison – Animal Advisory Board Liaison -Transportation Safety Advisory Commission Liaison -Schertz Humane Society Alternate Interview Board for Boards and Commissions Liaison – Schertz Sweetheart Court Councilmember Trayhan Liaison -Schertz Housing Authority Audit Committee Hal Baldwin Scholarship Committee 5-19-09 City Council Agenda Page -3 - Agenda No. 1 CITY COUNCIL MEMORANDUM City Council Meeting: May 19, 2009 Department: Economic Development Subject: Main Street & FM 78 Revitalization BACKGROUND In the 2008-2009 budget, City Council approved the expenditure of up to $78,000 for studies and consultant costs for an FM 78 revitalization effort. Economic Development has identified a real estate consultant and planning firm to assist in the development of a conceptual master plan for the Main Street and FM 78 areas. Both areas are being incorporated into the overall strategy because staff felt the areas are linked enough that any plan should include both areas. This agenda item is an update and informational session for Council to learn about what the next steps of the study will comprise and how they will put the City in a position of strength as it moves forward with a reinvestment plan. FISCAL IMPACT At the time of publication, an estimate was not available. Agenda No. 2 CITY COUNCIL MEMORANDUM City Council Meeting: May 19, 2009 Department: Administration Subject: Minutes BACKGROUND On May 12, 2009 a Regular City Council Meeting was held at the Municipal Complex Council Chambers at 6:30 p.m., 1400 Schertz Parkway Building #4. FISCAL IMPACT None RECOMMENDATION Staff recommends Council approval of the May 12, 2009 minutes. ATTACHMENT Minutes 05-12-09 MINUTES REGULAR MEETING May 12, 2009 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on May 12, 2009 at 6:30 p.m., in the Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to-wit: Mayor Hal Baldwin Mayor Pro-Tem Michael Carpenter Councilmember Jim Fowler Councilmember David Scagliola Councilmember John Trayhan Councilmember Tony Wilenchik Staff Present: City Manager Don Taylor Assistant City Manager David Harris City Attorney Michael Spain City Secretary Brenda Dennis CALL TO ORDER REGULAR MEETING Mayor Baldwin called the meeting to order at 6:30 p.m. INVOCATION AND PLEDGES OF ALLEGIANCE TO THE FLAGS OF THE UNITED STATES AND STATE OF TEXAS. Councilmember Fowler gave the Invocation followed by the Pledges of Allegiance to the Flags of the United States and State of Texas. SPECIAL SESSION 1. Resolution No. 09-R-25 – Consideration and/or action regarding approving a resolution tabulating and canvassing the results of the May 9, 2009, General Election. (Mayor Baldwin) Mayor Baldwin recognized Councilmember Fowler who moved, seconded by Councilmember Scagliola to approve Resolution No. 09-R-25. Vote was unanimous. Motion Carried. 2. Oath of Office – (B. Dennis) A. Newly Elected Officers – Oath of Office administered to the Councilmembers in Places 3, 4 & 5. Mayor Baldwin administered the oath of office to Councilmember Trayhan, Councilmember Wilenchik and Councilmember Carpenter. B. Certificates of Election – Presentation of Certificates of Election. City Secretary Brenda Dennis stated that the certificates have been printed and waiting for the Mayor’s signature. Ms. Dennis stated she will provide them later. 5-12-09 Minutes PRESENTATION • Proclamation for National Law Enforcement Week. (Mayor) Mayor Baldwin read and presented the proclamation to Police Chief Steve Starr. • Update and Discussion on Quiet Zone Issues. (P. Graves) Mayor Baldwin recognized the City’s new Economic Development Analyst, Peter Graves who provided a brief update to Council regarding the Quiet Zone. He stated that the City is still in the information gathering stage and waiting on a couple of crossing statistics from Union Pacific. Mr. Graves also stated that last Monday they had a meeting on a site review with Jerry Martin a representative of Union Pacific. They have received information from him, but before the City can proceed any further the City needs to get the statistical information from Union Pacific and once this has been completed this item will be brought back to Council. Mayor Baldwin also recognized Police Chief Steve Starr who stated that he would be contacting Clint Stade with Union Pacific Railroad to set up a train ride for Council for for a railroad crossing demonstration. HEARING OF RESIDENTS Mayor Baldwin recognized the following: • Robert Brockman 1001 Elbel who came forward asking that the portable microphone be used when individuals are speaking so that the citizens in the audience can hear. He also stated that if the City provided a portable stand for the microphone, maybe they would use it. • Discussion and/or Action Items 3. Minutes – Discussion and/or action regarding the approval of the minutes of the May 5, 2009 regular meeting. Mayor Baldwin recognized Councilmember Trayhan who moved, seconded by Councilmember Scagliola to approve the minutes of the Regular Meeting of April 28, 2009. Vote was 4-0-1 Councilmember Fowler abstained. Motion Carried. 4. Resolution No. 09-R-26-Consideration and/or Action on a Resolution Approving a Recommendation of the City of Schertz Economic Development Corporation to Provide up to $13,000 for Audio/Visual Upgrades at the Schertz Civic Center. (J. Jewell) Mayor Baldwin recognized Economic Development Director George Antuna who introduced this item stating after consideration and deliberation with Facilities 5-12-09 Minutes Page -2 - Director Mike Deleon, and Doug Winnek, President of Communications Group, LLC., Mr. Brad Bailey identified a list of upgrades that will assist the Civic Center to become a premier corporate retreat facility in Central Texas. A proposal and request was made and placed on the EDC’s agenda. He stated on March 26, 2009, the City of Schertz Economic Development Corporation Board of Directors held a public hearing and voted to approve expenditures of up to $13,000 in sales tax dollars to fund audio/visual equipment upgrades at the City of Schertz Civic Center after a request from Mr. Brad Bailey. Mayor Baldwin recognized Councilmember Scagliola who moved, seconded by Councilmember Fowler to approve Resolution No. 09-R-26. Vote was unanimous. Motion Carried. 5. Bid # 09-PW-13-C-01-FM 1103 – Old Wiederstein Road and Chelsea Drive -Consideration and/or action awarding a bid to D & D Contractors, Inc. in the amount of $809,066.59. (L. Dublin) Mayor Baldwin recognized City Engineer Larry Dublin who introduced this item stating the re-alignment of Old Wiederstein Road and Chelsea Drive Intersection at FM 1103 is a designated project in the 2005 Road Bond Program. This project was bid on April 23, 2009 with eight contractors submitting. A tabulation of the bids is attached showing the low bidder to be D & D Contractors, Inc. with a bid of $809,066.59. As bid, the project consists of construction of road and drainage improvements, provisions for future signal construction, a water line extension and force main construction. This project was originally to be constructed jointly by the City and TxDOT, each contributing one-half of the cost. TxDOT funding schedule now shows the project to be in the FY 2017 program so the City decided to bid the job unilaterally. Mayor Baldwin recognized Councilmember Trayhan who moved, seconded by Councilmember Scagliola to award a bid to D & D Contractors, Inc. in the amount of $809,066.59. Vote was unanimous. Motion Carried. 6. City of Schertz Strategic Planning Document – Consideration and/or action adopting the Strategic Planning Document as prepared by Briseño & Associates. (Council) Mayor Baldwin recognized Assistant City Manager David Harris who introduced this item answering questions from Council. Mayor Baldwin recognized Councilmember Trayhan and Mayor Pro-Tem Carpenter who addressed small corrections that need to be made to the document. Mayor Pro-Tem Carpenter requested that this document be provided to all board and commission members. 5-12-09 Minutes Page -3 - Mayor Baldwin recognized Mayor Pro-Tem Carpenter who moved, seconded by Councilmember Wilenchik to approve the City of Schertz Strategic Planning Document with corrections noted. Vote was unanimous. Motion Carried Mayor Baldwin recessed into executive session at 6:55 p.m. EXECUTIVE SESSION Called under Section 551.071 Litigation, pending litigation; Section 551.072 Texas Government Code -Deliberation regarding the purchase, exchange, sale, lease, or value of real property and Section 551.074 – Deliberate the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of the City Manager and City Secretary. RECONVENE TO REGULAR SESSION Mayor Baldwin reconvened into regular session at 8:55 p.m. 7. Take any additional action deemed necessary as a result of the Executive Session. Mayor Baldwin recognized Mayor Pro-Tem Carpenter who moved, seconded by Councilmember Trayhan to increase the City Manager’s salary by 5%. The vote was unanimous. Motion Carried Mayor Baldwin recognized Councilmember Wilenchik who moved, seconded by Councilmember Trayhan that based upon increased job responsibilities resulting from a recent City-wide administrative reorganization, Council approve the new job description for the City Secretary’s position and an annual pay raise of $4150 for the City Secretary effective 18 March 2009, bringing her annual salary to $69,212. The vote was unanimous. Motion Carried Requests and Announcements 8. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. Mayor Baldwin recognized Councilmember Fowler who requested that a progress report be brought to Council on the Sports Complex as well as an update on the Library. 9. Requests by Mayor and Councilmembers to City Manager and Staff for information. No requests were noted. 10. 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 5-12-09 Minutes Page -4 - • Recognition of actions by City employees • Recognition of actions by community volunteers • Upcoming City Council agenda items Mayor Baldwin recognized the following: Mayor Pro-Tem Carpenter who stated that he wanted to publically thank the citizens for granting him another term. He further stated that he was humbled and honored to serve. Councilmember Scagliola who thanked Brad Bailey, Jessica and Melissa for operating the booth at Discover Cibolo this past weekend and mentioned a special thanks to our citizen police personnel for their assistance as well. Councilmember Scagliola thanked City Secretary Brenda Dennis for coordination on Election Day stating is was very smooth. Councilmember Trayhan who stated he also was humbled and honored to serve, thanking the citizens for re-electing him to another term. Councilmember Wilenchik thanked the citizens for re-electing him for another term. He also thanked his opponent for such a vigorous, hard-fought campaign. Mayor Baldwin mentioned he attended his first first meeting today of a committee that is being funded by Bexar County and Randolph Air Force Base to study those things that communities can do to help protect the missions that the base has in the area. He stated that he would be serving on the Executive Committee along with two other mayors around Randolph. 11. Announcements by City Manager • Recognition of City employee actions • New Department Initiatives Mayor Baldwin recognized City Manager Don Taylor who thanked the Council for their confidence. He stated that his success is due to the professional and hard working staff that is in the City of Schertz, as well as the citizens and their dedication to work with the City. Mayor Baldwin recognized City Secretary Brenda Dennis who reminded the Council of the upcoming Economic Development Business Appreciation dinner which will be held Friday, May 18, 2009 at 6:00 p.m. ADJOURNMENT As there was no further action, Mayor Baldwin adjourned the meeting at 9:00 p.m. 5-12-09 Minutes Page -5 - 5-12-09 Minutes Page -6 -___________________________________ Hal Baldwin, Mayor ATTEST: _______________________________________ Brenda Dennis, TRMC, CMC City Secretary Agenda No. 3 CITY COUNCIL MEMORANDUM City Council Meeting: May 19, 2009 Department: Public Works Subject: Ordinance No. 09-F-17 -Recommendation to amend Drought Contingency Ordinance (First Reading) BACKGROUND Texas Water Development Board (TWDB) requires all cities to have a water conservation plan on file to satisfy the requirements of 30TAC Chapter 288 by May 1, 2009. (We have an extension to May 31, 2009) We are including the proposed Conservation Plan in the Drought Contingency Plan. The guidelines set forth by the TWDB for the conservation plan include a strategy or a combination of strategies for reducing the consumption of water, reducing the loss of waste of water, improving or maintaining the efficiency in the use of water, or increasing recycling and reuse of water. It contains Best Management Practices (BMP) measures to try to meet the targets and goals identified in the plan. The major amendments to the Drought Plan are the adoption of rules by Schertz-Seguin Local Government Corporation which relate to the Gonzalez Underground Water District rules. FISCAL IMPACT No Fiscal Impact at this time. RECOMMENDATION Staff recommends Council approval of the amended Drought Contingency Ordinance with the Water Conservation Plan ATTACHMENTS Ordinance No. 09-F-17 Amended Drought Contingency Plan Water Conservation Plan ORDINANCE NO. 09-F-17 AN ORDINANCE OF THE CITY OF SCHERTZ, TEXAS, AMENDING THE CITY’S DROUGHT CONTIGENCY ORDINANCE AND INCLUDING ADOPTION OF A WATER CONSERVATION PLAN; ESTABLISHING CRITERIA FOR THE INITIATION AND TERMINATION OF DROUGHT RESPONSE STAGES; ESTABLISHING RESTRICTIONS ON CERTAIN WATER USES; ESTABLISHING PENALTIES FOR THE VIOLATION OF AND PROVISIONS FOR ENFORCEMENT OF THESE RESTRICTIONS; ESTABLISHING PROCEDURES FOR GRANTING VARIANCES; AND PROVIDING SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, the City of Schertz, Texas (the “City”) recognizes that the amount of water available to the City and its water utility customers is limited and subject to depletion during periods of extended drought; WHEREAS, the City recognizes that natural limitations due to drought conditions and other acts of nature cannot guarantee an uninterrupted water supply for all purposes; WHEREAS, the City Council had previously adopted Ordinance No. 00-F-25, establishing a drought contingency plan; WHEREAS, Section 11.1272 of the Texas Water Code and applicable rules of the Texas Commission of Environmental Quality along with requirements of 30 TAC Chapter 288 require all public water supply systems in Texas to prepare a drought contingency and water conservation plan; and WHEREAS, as authorized under law, and in the best interests of the citizens of Schertz, Texas, the City Council deems it expedient and necessary to establish certain rules and policies for the orderly and efficient management of limited water supplies continually and more aggressively during drought and other water supply emergencies; NOW THEREFORE, BE IT ORDAINED BY THE CITY OF SCHERTZ, TEXAS: SECTION 1. That the City Council hereby amends and replaces Ordinance No. 00-F-25 by adopting the City of Schertz Drought Contingency and Water Emergency Response Plan and Water Conservation Plan attached hereto as Exhibit A and Exhibit B and made part hereof for all purposes be, and the same are hereby, adopted as the official policy of the City. SECTION 2. That all ordinances that are in conflict with the provisions of this Ordinance, including but not limited to Ordinance No. 00-F-25, are and the same are hereby, repealed to the extent of such conflict and all other ordinances of the City not in conflict with the provisions of this Ordinance shall remain in full force and effect. SECTION 3. Should any paragraph, sentence, subdivision, clause, phrase, or section of this Ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this Ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional. SECTION 4. This Ordinance shall be in force and effect from the after its final passage and ay publication required by law, and shall have an effective date of the date this Ordinance is adopted on second and final reading, and it is so ordained. PASSED ON FIRST READING, the 19th of May 2009. PASSED, APPROVED, AND ADOPTED ON SECOND READING the ____ day of May 2009. APPROVED: ____________________________ MAYOR ATTESTED TO: ____________________ _______ CITY SECRETARY (Seal of City) EXHIBIT A Drought Contingency and Water Emergency Response Plan For The City of Schertz Public Water Supply DROUGHT CONTINGENCY AND WATER EMERGENCY RESPONSE PLAN FOR THE CITY OF SCHERTZ Section I: Declaration of Policy, Purpose, and Intent In order to conserve the available water supply and protect the integrity of water supply facilities, with particular regard for domestic water use, sanitation, and fire protection, and to protect and preserve public health, welfare, and safety and minimize the adverse impacts of water supply shortage or other water supply emergency conditions, the City of Schertz hereby adopts the following regulations and restrictions on the delivery and consumption of water Drought Contingency and Water Emergency Response Plan (the Plan). Water uses regulated or prohibited under the Plan are considered to be non-essential, and continuation of such uses during times of water shortage or other emergency water supply condition are deemed to constitute a waste of water which subjects the offender(s) to penalties as defined in Section XII and XIII of the Plan. Section II: Public Involvement Opportunity for the public to provide input into the preparation of the Plan was provided by the City of Schertz by means of scheduling and providing public notice of a public meeting to accept input on the Plan. Section III: Public Education The City of Schertz will periodically provide the public with information about the Plan, including information about the conditions under which each stage of the Plan is to be initiated or terminated and the drought response measures to be implemented in each stage. This information will be provided by means of the City web site, newsletter press release and utility bill messages. Section IV: Coordination with Regional Water Planning Groups The service area of the City of Schertz is located within the Schertz Seguin Local Government Corporation (SSLGC) and Edwards Aquifer Authority and The City of Schertz has provided a copy of this Plan to the Edwards Aquifer Authority, Texas Water Development Board, SSLGC and San Antonio River Authority representing Region “L” for the State. Section V: Authorization The City Manager or his/her designee is hereby authorized and directed to implement the applicable provisions of the Plan upon determination that such implementation is necessary to protect public health, safety and welfare. The City Manager, or his/her designee, shall have the authority to 1 initiate or terminate drought or other water supply emergency response measures as described in this Plan. Section VI: Application Provisions of the Plan shall apply to all persons, customers, and property utilizing water provided by the City of Schertz. The terms “person” and “customer” as used in the Plan include individuals, corporations, partnerships, associations, and all other legal entities. Section VII: Definitions For the purposes of the Plan, the following definitions shall apply: Aesthetic Water Use: Water used for ornamental or decorative purposes such as fountains, reflecting pools, and water gardens. Athletic Field: A sports play field including playgrounds whose essential feature is a grass turf, other than a golf course. (a) Conforming athletic field – An athletic field with an approved groundwater conservation plan under section XI of this Plan. (b) Non-conforming athletic field – Any other athletic field that is not a conforming athletic field. Commercial and Institutional Water Use: Water Water use which is integral to the operations of commercial and non-profit establishments and governmental entities, public or private schools, retail establishments, hotels and motels, restaurants, office buildings and Homeowner/Neighborhood Associations. Conservation: Those practices, techniques, and technologies that reduce the consumption of water, reduce the loss or waste of water, improve the efficiency in the use of water or increase the recycling and reuse of water so that a supply is conserved and made available for future or alternative uses. Customer: Any person, company, or organization using water supplied by City of Schertz. Domestic Water Use: Water use for personal needs or for household or sanitary purposes such as drinking, bathing, heating, cooking, sanitation, or for cleaning a residence, business, industry, or institution. Golf Course: An area of land used for the game of golf. (a) Conforming Golf Course – A golf course with an approved groundwater conservation plan pursuant to Section X of this Plan. 2 (b) Non-conforming golf course – Any other golf course that is not a conforming golf course. Hand-held Watering: A hose or bucket physically attended by a person, fitted with a manual or automatic shutoff nozzle. Industrial Water Use: The use of water in processes designed to convert materials of lower value into forms having greater usability and value. Landscape irrigation use: Water used for the irrigation and maintenance of landscaped areas, whether publicly or privately owned, including residential and commercial lawns, gardens, golf courses, parks, and rights-of-way and medians, but does not include: (a) Non-discretionary use without waste of groundwater by a commercial nursery to the extent the water is used for production rather than decorative landscaping; (b) Application of groundwater without waste to a non-commercial family garden or orchard, the produce of which is for household consumption only; (c) Application of groundwater by means of hand-held bucket, hand-held hose; soaker hose or properly installed drip irrigation system; and (d) Application of groundwater by means of a soaker hose, hand-held hose, or properly installed drip irrigation system immediately next to a concrete foundation solely for the purpose of preventing, to the extent the watering is necessary, substantial damage to the foundation of the structure caused by movement of the foundation. Mobile Home Communities: Property owned by an individual or commercial establishment who rents such property for mobile or manufactured homes placement; must comply with the requirements and restrictions as a “Customer” in this section. Non-essential Water Use: Water uses that are not essential or required for the protection of public, health, safety, and welfare, including: (a) Irrigation of landscape areas, including parks, athletic fields, and golf courses, except otherwise provided under this Plan; (b) Use of water to wash any motor vehicle, motorbike, boat, trailer, airplane or other vehicle; (c) Use of water to wash down any sidewalks, walkways, driveways, parking lots, tennis courts, or other hard-surfaced areas; (d) use of water to wash down buildings or structures for purposes other than immediate fire protection; (e) flushing gutters or permitting water to run or accumulate in any gutter or street; (f) use of water to fill, refill, or add to any indoor or outdoor swimming pools or Jacuzzi-type pools; (g) use of water in a fountain or pond for aesthetic or scenic purposes except where necessary to support aquatic life; 3 (h) failure to repair a controllable leak(s) within a reasonable period after having been given notice directing the repair of such leak(s); and (i) use of water from hydrants for construction purposes or any other purposes other than fire fighting. Private Water Well: Well on private property that is not inter-connected with the City’s water. Re-Use Water: A treated non-potable water source used for irrigation. Wasting Water: AnyWatering on a non-pervious surface or landscape watering that goes beyond a customer’s property. Waste of water also includes, but is not limited to, allowing water to run off into a gutter, ditch or drain, or failing to repair a controllable leak. Section VIII: Triggering Criteria for Initiation and Termination of Drought Restriction Stages The City Manager, or his/her designee, shall monitor water supply and/or demand conditions on a daily basis and shall determine when conditions warrant initiation or termination of each stage of the Plan. Public notification of the initiation or termination of drought response stages shall be by means of publication in local newspaper and/or signs posted in public places. The triggering criteria described below are based on the level of the Bexar County Observation J-17 Well the analysis of system capability and the rules of the Gonzales Underground Water Conservation District (GCUWCD) and SSLGC. In the event that SSLGC can not provide water, the City of Schertz will immediately implement Stage 4 restrictions. Stage 1 – Restrictions—MILD Water Shortage Conditions Requirements for Initiation – It is mandatory that customers conserve water and adhere to the prescribed restrictions on certain water uses, defined in Section VII – Definitions, when Bexar County J-17 Well is at or below 650 feet. one or all of the following are reached (a) City of Schertz receives notification from the General Manager of SSLGC of Stage 1 conditions. (b) Water demand is projected to approach 100% of the monthly limit of the GCUWCD permitted supply. (c) Annual Monthly Average Drawdown as measured by GCUWCD rules equals 85% of allowable. (d) The City’s water system has malfunctioned, but is still able to keep up with demand. Requirements for Termination -Stage 1 of the Plan may be rescinded when all of the conditions listed as triggering events have ceased to exist for a period of thirty (30) consecutive days or when rescinded by the City Manager or his/her designee. Stage 2 – Restrictions --MODERATE Water Shortage Conditions 4 Requirements for Initiation -Customers shall be required to comply with the requirements and restrictions on certain non-essential water uses provided in Section VII of the Plan when Bexar County J-17 Well is at or below 640 feet one or all of the following are reached: (a) City of Schertz receives notification from the General Manager of SSLGC of Stage 2 conditions. (b) Water demand is projected to approach 110% of the monthly limit of the GCUWCD permitted supply. (c) Annual Monthly Average Drawdown as measured by GCUWCD rules equals 95% of allowable. (d) The City’s water system has malfunctioned, and cannot keep up with demand. Requirements for Termination -Stage 2 of the Plan may be rescinded when all of the conditions listed as triggering events have ceased to exist for a period of thirty (30) consecutive days or when rescinded by the City Manager or his/her designee. Upon termination of Stage 2, Stage 1 becomes operative. Stage 3 – Restrictions --SEVERE Water Shortage Conditions Requirements for Initiation -Customers shall be required to comply with the requirements and restrictions on certain non-essential water uses for Stage 3 of the Plan when Bexar County Well J-17 is at or below 630 feet. one or all of the following are reached: (a) City of Schertz receives notification from the General Manager of SSLGC of Stage 3 conditions. (b) Water demand is projected to approach 120% of the monthly limit of the GCUWCD permitted supply. (c) Annual Monthly Average Drawdown as measured by GCUWCD rules equals 100% of allowable. (d) Water quality is less than normal or is polluted. Health and safety standards may be jeopardized. (e) The imminent or actual failure of a major component of the City’s water system would cause immediate health and safety hazard. Requirements for Termination -Stage 3 of the Plan may be rescinded when all of the conditions listed as triggering events have ceased to exist for a period of thirty (30) consecutive days or when rescinded by the City Manager or his/her designee. Upon termination of Stage 3, Stage 2 becomes operative. Stage 4 – Emergency Restrictions --CRITICAL Water Shortage Conditions Including System or Water Quality Failure Requirements for Initiation -Customers shall be required to comply with the requirements and restrictions for Stage 4 of the Plan when the Mayor, or his/her designee, determines that a water supply emergency exists based on: 5 1. Extreme drought conditions exist. 2. Major water line breaks, or pump or system failures occur, which cause unprecedented loss of capability to provide water service; or 3. Natural or man-made contamination of the water supplies source(s). (a) The General Manager of SSLGC, with concurrence of the SSLGC Executive Committee or Board of Directors, finds that conditions warrant the declaration of Stage 4. (b) Water demand exceeds 125% of the monthly limit of the GCUWCD permitted supply. (c) Annual Monthly Average Drawdown as measured by GCUWCD rules exceeds 115% of allowable. (d) Major water line breaks, or pump or system failures occur, which cause unprecedented loss of capability of the City to provide water service. (e) Natural or man-made contamination of the water supply source(s). Requirements for Termination – Stage 4 of the Plan may be rescinded when all of the conditions listed as triggering events have ceased to exist for a period of thirty (30) consecutive days, or when items (d) and (e) above have been repaired. Water Rationing Requirements for Initiation -Customers shall be required to comply with the water rationing allocation plan prescribed in Section XIII of the Plan when the Mayor and City Council determine that the water supply emergency exists and comply with the requirements and restrictions for Stage 4 of the Plan when: (a) Extreme draught drought conditions exist; (b) Major water line breaks, or pump or system failures occur, which cause unprecedented loss of capability to provide water service; or (c) Natural or man-made contamination of the water supply source occurs. Requirements for Termination -Water rationing may be rescinded when all of the conditions listed as triggering events have ceased to exist for a period of thirty (30) consecutive days or when rescinded by the City Manager or his/her designee. Section IX: 1. Wasting Water: (a) It shall be unlawful for any person or customer to waste water. for any use other then described in the Drought Contingency Plan. (b) Year round outdoor watering between 10:00 am – 8:00 pm is prohibited. 6 (c) It shall be a violation if a person or customer allows water to run off into a non-pervious ditch, or drains for failure to repair a controllable leak. (d) Re-use water usage is exempt from the plan. (e) Customers using water from a private water well must comply with all requirements of the plan. 2. Drought Response Stages The City Manager, or his/her designee, shall monitor water supply and/or demand conditions on a daily basis and, in accordance with the triggering criteria set forth in Section VIII of the Plan, shall determine that Stage 1, 2, 3 or 4 conditions exist and shall implement the following actions upon publication of notice in a newspaper of general circulation and/or signs posted in public places and city web site: Stage 1 – Restrictions --MILD Water Shortage Conditions Goal: Achieve a mandatory ten percent (10%) reduction in daily water demand. Supply Management Measures: Director of Public Works shall be responsible for overseeing the reduction or discontinued flushing of water mains, activation and use of an alternative supply source(s), use of reclaimed water for non-potable purposes, and blending of alternate sources. Water Use Restrictions: Under the threat of penalty for violation, the following water use restrictions shall apply to all persons: (a) Water customers shall comply with mandatory limits of irrigation of landscape areas. Watering days will be based on the last digit of the address: 0-1 -Monday 2-3 -Tuesday 4-5 -Wednesday 6-7 -Thursday 8-9 -Friday (b) Athletic Fields and Golf Courses – Conforming 10% reduction in watering as per Section X & XI. Non-conforming 15% reduction in watering as per Section X & XI. (c) Commercial/Industrial/Schools/Institutional landscape watering is permitted on Wednesday only. 7 (d) Watering of landscape is permitted only between the hours of 12:00 am to 10:00 am and 8:00 pm to midnight on designated watering days. (e) All operations of the City of Schertz shall adhere to water use restrictions prescribed for Stage 2 1 of the Plan. (f) Water customers are requested to practice water conservation and to minimize or discontinue water use for non-essential purposes. (g) Handheld, bucket and or drip system is allowed. (h) New landscape may have 3 weeks variance for establishment. All variances must be reviewed and approved by the City Manager or City Inspector Director of Public Works or their designee. (i) Operation of any ornamental fountain or pond for aesthetic or scenic purposes is prohibited except where necessary to support aquatic life or where such fountains or ponds are equipped with a re-circulation system. Stage 2 – Restrictions --MODERATE Water Shortage Conditions Goal: Achieve a fifteen percent (15%) reduction in daily water demand. Supply Management Measures: Director of of Public Works shall see that reduced or discontinued flushing of water mains, reduced or discontinued irrigation of public landscaped areas; use of blending an alternative supply source(s); use of reclaimed water for non-potable purposes. Water Use Restrictions: Under threat of penalty for violation, the following water use restrictions shall apply to all persons, along with previous restrictions from Stage 1: (a) Water customers shall comply with mandatory limits of irrigation of landscape areas. Watering days will be based on the last digit of the address: 0-1-Monday 2-3 -Tuesday 4-5 -Wednesday 6-7 -Thursday 8-9 -Friday (b) Athletic Fields and Golf Courses-Conforming 15% reduction watering as per Section X & XI. Non-conforming 20% reduction watering as per Section X & XI. (c) Commercial/Industrial/Schools/Institutional landscape watering is permitted on 8 Wednesday only. (d) Landscape water Watering of landscape is permitted only between the hours of 3:00 am to 8:00 am and 8:00 pm to 10:00 pm. (e) Filling of all new and existing swimming pools is prohibited, unless at least 30% of the water is obtained from a source other than the aquifer. Groundwater may be used to replenish swimming pools to maintenance levels. Draining of swimming pools is permitted only onto a pervious surface or onto a pool deck where the water is transmitted directly to a pervious surface, and only if necessary to: (1) Remove excess water from the pool due to rain to lower the water to the maintenance level; (2) Repair, maintain, or replace a pool component that has become hazardous; or (3) Repair a pool leak. (f) Operation of any ornamental fountain or pond for aesthetic or scenic purposes is prohibited except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system. (g) Use of water from fire hydrants shall be limited to fire fighting and related activities, or other activities necessary to maintain public health, safety, and welfare, except that use of water from designated fire hydrants for construction purposes may be allowed under special permit from the City of Schertz. (h) All restaurants are prohibited from serving water to its patrons except when requested. (i) The following uses of water are defined as non-essential and are prohibited: 1. Wash down of any sidewalks, walkways, driveways, parking lots, tennis courts, or other hard-surfaced areas; 2. Use of water to wash down buildings or structures for purposes other than immediate fire protection; 3. Use of water for dust control; 4. Flushing gutters or permitting water to run or accumulate in any gutter or street; and 5. Failure to repair a controllable leak(s) within a reasonable period after having been given notice directing the repair of such leak(s). Stage 3 – Restrictions --SEVERE Water Shortage Conditions Goal: Achieve a twenty percent (20%) twenty-five percent (25%) reduction in daily water demand. 9 Supply Management Measures: Director of Public Works shall see that reduced or discontinued flushing of water mains, reduced or discontinued irrigation of public landscaped areas; use of blending an alternative supply source(s); use of reclaimed water for non-potable purposes. Water Use Restrictions: All requirements of Stages 1 & 2 shall remain in effect during Stage 3 except: (a) Landscape watering is prohibited except by handheld watering or drip irrigation during designated watering days as described in Stage 1 & 2. (b) The watering of golf course tees is prohibited unless the golf course utilizes a reuse water source. other than that provided by the City of Schertz. (c) The use of water for construction purposes from designated fire hydrants under special permit is to be discontinued. (d) The filling, refilling, or adding of water to swimming pools, wading pools, and jacuzzi-type pools are prohibited. (e) Operation of any ornamental fountain or pond for aesthetic or scenic purposes is prohibited except except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system. (f) No applications for additional, expanded, or increased-in-size water service connections, meters, service lines, pipeline extensions, mains, or water service facilities of any kind shall be allowed or approved. (g) Application of groundwater in the morning before 8:00 am and in the evening after 8:00 pm by means of a handheld bucket, handheld hose, soaker hose or properly installed drip irrigation system, immediately next to a concrete foundation solely for the purpose of preventing, and to the extent the watering in is necessary to prevent, substantial damage to the foundation or the structure caused by movement of the foundation. (h ) Athletic field -Conforming 20% 25% reduction watering as in Section XI Non-conforming 30% reduction watering as in Section XI. Stage 4 -Emergency Restrictions --CRITICAL Water Shortage Conditions Goal: Achieve a forty percent (40%) reduction in daily water demand. Supply Management Measures: 10 Director of Public Works shall see that reduced or discontinued flushing of water mains, reduced or discontinued irrigation of public landscaped areas; use of blending an alternative supply source(s); use of reclaimed water for non-potable purposes. Water Use Restrictions: All requirements of Stages 1,2, and 3 shall remain in effect during Stage 5 4 except: (a) Irrigation of landscaped areas is absolutely prohibited. (b) Use of water to wash any motor vehicle, motorbike, boat, trailer, airplane or other vehicle is absolutely prohibited. (c) Implementation of additional drought contingency measures may be applied by at the direction of the Edwards Aquifer Authority City of Schertz. Section X: Golf Courses Notwithstanding any other language in the Plan, the owners of golf courses that are applicants or customers of an applicant shall be required to submit a groundwater conservation plan and shall be defined as "conforming" and "non-conforming" and shall reduce usage of aquifer groundwater under the following terms: 1. It shall be unlawful to water any golf course during between the hours of 10:00 am and 8:00 pm. 2. A conforming golf course is one that achieves enhanced conservation by utilizing a computer controlled irrigation system ("CCIS"), or similar system, which may be comprised of a computer controller (digital operating system), software, interface modules, satellite, field controller, soil sensors, weather station, or similar devices, which is capable of achieving maximum efficiency and conservation in the application of water to the golf course, must accomplish the following restrictions listed in subparagraphs (A)-(C) of this paragraph: (A) Stage 1 Restrictions – 10% reduction in the replacement of daily evapotranspiration rate ("ET rate") or daily soil holding capacity; or use of not more than 95% of the metered amount for that corresponding month. (B) Stage 2 Restrictions – 15% reduction in the replacement of daily ET rate or daily soil holding capacity; or use of not more than 90% of the metered amount for that corresponding month. (C) Stage 3 Restrictions -20% 25% reduction in the replacement of daily ET rate or daily soil holding capacity, or use of not more than 85% 75% of the metered amount for that corresponding month. (D) Stage 4 Restrictions – 40% reduction in the replacement of daily ET rate or daily soil holding capacity not to exceed 60% of metered amount. 11 (3) A non-conforming golf course shall comply with the following reduction measures listed in paragraphs (A)-(C) of this subsection: (A) Stage 1 Restrictions -15% reduction in the replacement of daily ET rate as monitored by a properly operating CCIS or use of not more than 95% of the metered amount for that corresponding month for golf courses that are not equipped with a CCIS; (B) Stage 2 Restrictions -20% reduction in the replacement of daily ET rate as monitored by a properly operating CCIS or use of not more than 90% of the metered amount for that corresponding month for golf courses that are not equipped with a CCIS; (C) Stage 3 Restrictions -30% reduction in the replacement of daily ET rate as monitored by a properly operating CCIS or use of not more than 85% of the metered amount for that corresponding month for golf courses that are not equipped with a CCIS. (D) Stage 4 Restrictions – 40% reduction in the replacement of daily ET rate as monitored by a properly operating CCIS or use of not more than than 60% of the metered amount for that corresponding month for golf courses that are not equipped with a CCIS; (4) The owner or operator of a golf course must comply with all rules issues by City Council relating to Stages 3 and 4. (5) The owner or operator of a golf course must maintain daily water use records which must be available for inspection upon request. (6) The owner or operator of a conforming golf course or a golf course with a CCIS must maintain daily water use records of their ET rate or daily soil holding capacity, which must be available for inspection upon request. (7) All daily records must be kept on site. Section XI: Athletic Fields Notwithstanding any other language in the Plan, the owners of athletic fields that are applicants or customers of an applicant shall be required to submit a groundwater conservation plan and shall be defined as "conforming" and or "non-conforming" and shall reduce usage of City supplied groundwater under the following terms: 1. It shall be unlawful to water any athletic field during between the hours of 10:00 am and 8:00 pm 2. A conforming athletic field is one that achieves enhanced conservation by utilizing a CCIS, or similar system, which may be comprised of a computer controller (digital operating system), software, interface modules, satellite, field controller, soil sensors, weather station, or similar devices, which is capable of achieving maximum efficiency and conservation in the 12 application of water to the athletic field, must accomplish the following restrictions listed in subparagraphs (A)-(C) of this paragraph: (A) Stage 1 Restrictions – 10% reduction in the replacement of daily evapotranspiration rate ("ET rate") or daily soil holding capacity, or use of not more than 95% of the metered amount for that corresponding month. (B) Stage 2 Restrictions – 15% reduction in the replacement of daily ET rate or daily soil holding capacity; or use of not more than 90% of the metered amount for that corresponding month, (C) Stage 3 Restrictions -20% 25% reduction in the replacement of daily ET rate or daily soil holding capacity, or use of not more than 85% 75% of the metered amount for that corresponding month. (D) Stage 4 Restrictions – 40% reduction in the replacement of daily ET rate or daily soil holding capacity, not to exceed 60% of metered amount. (3) A non-conforming athletic field shall comply with the foI1owing reduction measures listed in paragraphs (A)-(C) of this subsection: ((A) Stage 1 Restrictions -15% reduction in the replacement of daily ET rate as monitored by a properly operating CCIS, or use of not more than 95% of the metered amount for that corresponding month for athletic fields that are not equipped with a CCIS; (B) Stage 2 Restrictions -20% reduction in the replacement of daily ET rate as monitored by a properly operating CCIS, or use of not more than 90% of the metered amount for that corresponding month for athletic fields that are not equipped with a CCIS; (C) Stage 3 Restrictions -30% reduction in the replacement of daily ET rate as monitored by a properly operating CCIS, or use of not more than 85% of the metered amount for that corresponding month for athletic fields that are not equipped with a CCIS. (D) Stage 4 Restrictions – 40% reduction in the replacement of daily ET rate as monitored by a properly operating CCIS or use of not more than 60% of the metered amount for that corresponding month for athletic fields that are not equipped with a CCIS. (4) The owner or operator of an athletic field must comply with all rules issues by City Council relating to Stages 3 and 4. (5) The owner or operator of an athletic field must maintain daily water use records, which must be available for inspection upon request. 13 (6) The owner or operator of a conforming athletic field or an athletic field with a CCIS must maintain daily water use records of their ET rate or daily soil holding capacity, which must be available for inspection upon request. (7) All daily records must be kept on site. Section XII: Water Rationing In the event that water shortage conditions threaten public health, safety, and welfare, the Mayor is hereby authorized to require water rationing according to the following water allocation plan: Single-Family Residential Customers The allocation to residential water customers residing in a single-family dwelling shall be as follows: Persons per Household Gallons per Month 1 or 2 6,000 3 or 4 7,000 5 or 6 8,000 7 or 8 9,000 9 or 10 10,000 11 or more 12,000 “Household” means the residential premises served by the customer’s meter. “Persons per household” includes only those persons currently physically residing at the premises and expected to reside there for the entire billing period. It shall be assumed that that a particular customer’s household is comprised of two (2) persons unless the customer notifies the City of Schertz of a greater number of persons per household on a form prescribed by the Director of Public Works. The Director of Public Works shall give his/her best effort to see that such forms are mailed, otherwise provided, or made available to every residential customer. If, however, a customer does not receive such a form, it shall be the customer’s responsibility to go to the City of Schertz offices to complete and sign the form claiming more than two (2) persons per household. New customers may claim the number of persons per household at the time of applying for water service on the form prescribed by the Director of Public Works. When the number of persons per household increases so as to place the customer in a different allocation category, the customer may notify the City of Schertz on such form and the change will be implemented in the next practicable billing period. If the number of persons in a household is reduced, the customer shall notify the City of Schertz in writing within two (2) days. In prescribing the method for claiming more than two (2) persons per household, the Director of Public Works shall adopt methods to insure the accuracy of the claim. Any person who knowingly, recklessly, or with criminal negligence falsely reports the number of persons in a household or fails to timely notify the City of Schertz of a reduction in the number of person in a household shall be fined not less than $200.00. Residential water customers shall pay the following surcharges: 14 $2.00 for the first 1,000 gallons over allocation. $3.00 for the second 1,000 gallons over allocation. $4.00 for the third 1,000 gallons over allocation. $5.00 for each additional 1,000 gallons over allocation. Surcharges shall be cumulative. Master-Metered Multi-Family Residential Customers The allocation to a customer billed from a master meter which jointly measures water to multiple permanent residential dwelling units (e.g., apartments, mobile homes) shall be allocated 6,000 gallons per month for each dwelling unit. It shall be assumed that such a customer’s meter serves two dwelling units unless the customer notifies the City of Schertz of a greater number on a form prescribed by the Director of Public Works. The Director of Public Works shall give his/her best effort to see that such forms are mailed, otherwise provided, or made available to every such customer. If, however, a customer does not receive such a form, it shall be the customer’s responsibility to go to the City of Schertz offices to complete and sign the form claiming more than two (2) dwellings. A dwelling unit may be claimed under this provision whether it is occupied or not. New customers may claim only those occupying the dwelling unit at the time of applying for water service on the form prescribed by the Director of Public Works. If the number of dwelling units served by a master meter is reduced, the customer shall notify the City of Schertz in writing within two (2) days. In prescribing the method for claiming more than two (2) dwelling units, the Director of Public Works shall adopt methods to insure the accuracy of the claim. Any person who knowingly, recklessly, or with criminal negligence falsely reports the number of dwelling units served by a master meter or fails to timely notify the City of Schertz of a reduction in the number of person in a household shall be fined not less than $200.00. Customers billed from a master meter under this provision shall pay the following monthly surcharges: $2.00 for 1,000 gallons over allocation up through 1,000 gallons for each dwelling unit. $3.00 thereafter, for each additional 1,000 gallons over allocation up through a second 1,000 gallons for each dwelling unit. $4.00 thereafter, for each additional 1,000 gallons over allocation up through a third 1,000 gallons for each dwelling unit. $5.00 thereafter for each additional 1,000 gallons over allocation. $2.00 for the first 1,000 gallons over allocation. $3.00 for the second 1,000 gallons over allocation. $4.00 for the third 1,000 gallons over allocation. $5.00 for each additional 1,000 gallons over allocation. Surcharges shall be cumulative. Commercial Customers 15 A monthly water usage allocation shall be established by the Director of Public Works, or his/her designee, for each nonresidential commercial customer other than an industrial customer who uses water for processing purposes. The non-residential customer’s allocation shall be approximately seventy-five percent (75%) percent of the customer’s usage for corresponding month’s billing period for the previous 12 months. If the customer’s billing history is shorter than 12 months, the monthly average for the period for which there is a record shall be used for any monthly period for which no history exists. The Director of Public Works shall give his/her best effort to see that notice of each non-residential customer’s allocation is mailed to such customer. If, however, a customer does not receive such notice, it shall be the customer’s responsibility to contact the City of Schertz to determine the allocation. Upon request of the customer or at the initiative of the Director of Public Works, the allocation may be be reduced or increased if, (1) the designated period does not accurately reflect the customer’s normal water usage, (2) one nonresidential customer agrees to transfer part of its allocation to another nonresidential customer, or (3) other objective evidence demonstrates that the designated allocation is inaccurate under present conditions. A customer may appeal an allocation established hereunder to the City Manager. Nonresidential commercial customers shall pay the following surcharges: $2.00 per thousand gallons for the first 1,000 gallons over allocation. $3.00 per thousand gallons for the second 1,000 gallons over allocation. $4.00 per thousand gallons for the third 1,000 gallons over allocation. $5.00 per thousand gallons for each additional 1,000 gallons over allocation. The surcharges shall be cumulative. As used herein, “block rate” means the charge to the customer per 1,000 gallons at the regular water rate schedule at the level of the customer’s allocation. Industrial Customers and Commercial Nurseries A monthly water usage allocation shall be established by the Director of Public Works, or his/her designee, for each industrial customer, which uses water for processing purposes. The industrial customer’s and commercial nurseries allocation shall be approximately ninety percent (90%)percent of the customer’s water usage baseline. Ninety (90) days after the initial imposition of the allocation for industrial customers and commercial nurseries, the industrial customer’s and commercial nurseries allocation shall be further reduced to 85% percent of the customer’s water usage baseline. The industrial customer’s and commercial nurseries water usage baseline will be computed on the average water usage for the 12 month period ending prior to the date of implementation of Stage 2 of the Plan. If the industrial water customer’s and commercial nurseries billing history is shorter than 12 months, the monthly average for the period for which there is a record shall be used for any monthly period for which no billing history exists. The Director of Public Works shall give his/her best effort to see that notice of each industrial customer and commercial nurseries allocation is mailed to such customer. If, however, a customer does not receive such notice, it shall be the customer’s responsibility to contact the City of Schertz to determine the allocation, and the allocation shall be fully effective notwithstanding the lack of receipt of written notice. Upon request of the customer or at the initiative of the Director of Public 16 Works, the allocation may be reduced or increased, (1) if the designated period does not accurately reflect the customer’s normal water usage because the customer had shutdown a major processing unit for repair or overhaul during the period, (2) the customer has added or is in the process of adding significant additional processing capacity, (3) the customer has shutdown or significantly reduced the production of a major processing unit, (4) the customer has previously implemented significant permanent water conservation measures such that the ability to further reduce usage is limited, (5) the customer agrees to transfer part of its allocation to another industrial customer and commercial nurseries, or (6) if other objective evidence demonstrates that the designated allocation is inaccurate under present conditions. A customer may appeal an allocation established hereunder to the City Manager. Industrial customers and commercial nurseries shall pay the following surcharges: Customers whose allocation is 90% of their twelve month average. $ 2.00 per thousand gallons for the first 1,000 gallons over allocation. $ 3.00 per thousand gallons for the second 1,000 gallons over allocation. $ 4.00 per thousand gallons for the third 1,000 gallons over allocation. $ 5.00 per thousand gallons for each additional 1,000 gallons over allocation. The surcharges shall be cumulative. As used herein, “block rate” means the charge to the customer per 1,000 gallons at the regular water rate schedule at the level of the customer’s allocation. Section XIII: Enforcement (a) No person shall knowingly or intentionally allow the use of water from the City of Schertz for residential, commercial, industrial, agricultural, governmental, or any other purpose in a manner contrary to any provision of this Plan, or in an amount in excess of that permitted by the drought response stage in effect at the time pursuant to action taken by the City Manager, or his/her designee, in accordance with provisions of this Plan. (b) Any person who violates violates this Plan is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than twenty-five dollars ($25.00) and not more than two-hundred dollars ($200.00). up to $200.00. Each day that one or more of the provisions in the Plan is violated shall constitute a separate offense. If a person is convicted of three or more distinct violations of this Plan, the Director of Public Works shall, upon due notice to the customer, be authorized to discontinue water service to the premises where such violations occur. Services discontinued under such circumstances shall be restored only upon payment of a re-connection charge, hereby established at $150.00, and any other costs incurred by the City of Schertz in discontinuing service. In addition, suitable assurance must be given to the Director of Public Works that the same action shall not be repeated while the Plan is in effect. Compliance with this Plan may also be sought through injunctive relief in the district court. (c) Any person, person, including a person classified as a water customer of the City of Schertz, in apparent control of the property where a violation occurs or originates shall be presumed 17 to be the violator, and proof that the violation occurred on the person’s property shall constitute a rebuttable presumption that the person in apparent control of the property committed the violation, but any such person shall have the right to show that he/she did not commit the violation. Parents shall be presumed to be responsible for violations of their minor children and proof that a violation, committed by a child, occurred on property within the parents’ control shall constitute a rebuttable presumption that the parent committed the violation, but any such parent may be excused if he/she proves that he/she had previously directed the child not to use the water as it was used in violation of this Plan and that the parent could not have reasonably known of the violation. (d) Any police officer, code enforcement officer, or other City of Schertz employee designated by the Director of Public Works, may issue a citation to a person he/she reasonably believes to be in violation of this Ordinance. The citation shall be prepared in duplicate and shall contain the name and addresss of the alleged violator, if known, the offense charged, and shall direct him/her to appear in the municipal court on the date or before the 14th day following the date shown on the citation for which the date shall not be less than 3 days nor more than 5 days from the date the citation was issued. The alleged violator shall be served a copy of the citation. Service of the citation shall be complete upon delivery of the citation to the alleged violator, to an agent or employee of a violator, or to a person over 14 years of age who is a member of the violator’s immediate family or is a resident of the violator’s residence. The alleged violator shall appear in municipal court to enter a plea of guilty or not guilty for the violation of this Plan. If the alleged violator fails to appear in municipal court, a warrant for his/her arrest may be issued. A summons to appear may be issued in lieu of an arrest warrant. These cases shall be expedited and given preferential setting in municipal court before all other cases. Section XIV: Variances The City Manager, or his/her designee, may, in writing, grant temporary variance for existing water uses otherwise prohibited under this Plan if it is determined that failure to grant such variance would cause an emergency condition adversely affecting the health, sanitation, or fire protection for the public or the person requesting such variance and if one or more of the following conditions are met: (a) Compliance with this Plan cannot be technically accomplished during the duration of the water supply shortage or other condition for which the Plan is in effect. (b) Alternative methods can be implemented which will achieve the same level of reduction in water use. Persons requesting an exemption from the provisions of this Ordinance shall file a petition for variance with the City Manager of the City of Schertz within 5 days after the Plan or a particular drought response stage has been invoked. All petitions for variances shall be reviewed by the Director of Public Works, or his/her designee, and shall include the following: (a) Name and address of the petitioner(s). 18 19 (b) Purpose of water use. (c) Specific provision(s) of the Plan from which the petitioner is requesting relief. (d) Detailed statement as to how the specific provision of the Plan adversely affects the petitioner or what damage or harm will occur to the petitioner or others if petitioner complies with this Ordinance. (e) Description of the relief requested. (f) Period of time for which the variance is sought. (g) Alternative water use restrictions or other measures the petitioner is taking or proposes to take to meet the intent of this Plan and the compliance date. (h) Other pertinent information. Variances granted by the City of Schertz shall be subject to the following conditions, unless waived or modified by the City Manager or his/her designee: (a) Variances granted shall include an acceptable timetable for compliance. (b) Variances granted shall expire when the Plan is no longer in effect, unless the petitioner has failed to meet specified requirements. No variance shall be retroactive or otherwise justify any violation of this Plan occurring prior to the issuance of the variance. Section XV: Severability It is hereby declared to be the intention of the City of Schertz that the sections, paragraphs, sentences, clauses, and phrases of this Plan are severable and, if any phrase, clause, sentence, paragraph, or section of the Plan shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of the Plan, since the same would not have been enacted by the City of Schertz without the incorporation into the Plan of any such unconstitutional phrase, clause, sentence, paragraph, or section. EXHIBIT B CITY OF SCHERTZ WATER CONSERVATION PLAN Utility Profile The City of Schertz receives its water from two sources. The primary source is from the Schertz/Seguin Local Government Corporation (SSLGC). The SSLGC has eight wells and a treatment facility located in Gonzales County. This source is obtained from the Carrizo Aquifer. The SSLGC is made up of a Board of Directors comprised of officials from both the City of Schertz and the City of Seguin. The Schertz Sequin Local Government SSLGC on was developed in 2003. The water is delivered through a 40-mile pipeline from the well fields to both cities. Both cities are allotted 5000-acre/ft a year at this time. The second source of water is from two wells at our Nacogdoches well site located at 19625 FM 3009. This source is from the Edwards Aquifer; it is used as an emergency back up to the primary source and for peak usage. The City of Schertz service area is bordered by City of San Antonio City limits and IH-10 on the south end of the city limits, FM 2252 at the north end of the city limits, the City of Selma along IH-35 on the west end, and the City of New Braunfels along IH-35 at the east end. The City of Schertz current population served by water is estimated at 33,000. The 5-year population projection is 49,532 for the year 2014, and the 10-yr population projection is 72,443 for the year 2019. The City currently has 11,064 service connections, (10,355 residential, 707 commercial, and 2 wholesale emergency connections). The City of Schertz’s water system data compiled in 2008 indicated an average daily water use of 4.8 million gallons and a peak daily average of 8 million gallons. The City of Schertz is allotted 5000-acre/ft of water from the SSLGC yearly and 1781-acre/ft from the Edwards Aquifer Authority. The City of Schertz water system currently has 8 million gallons of capacity of ground and elevated storage tanks, 4 booster pump stations and has about 178 miles of transmission and distribution system delivery lines. The City has plans for an additional 11.5 million gallons of storage tanks. The City of Schertz wastewater system consists of 66.5 miles of sewer collection mains along with 10 liftstations. The City of Schertz contracts with Cibolo Creek Municipal Authority and Guadalupe Blanco River Authority to treat the City’s wastewater. Where the City of Schertz has no collection system there are On-Site Sewage Facilities (OSSF). The OSSF facilities are permitted and monitored through the (3) appropriate county agencies. The Cibolo Creek Municipal Authority wholesales reuse water to the local high school athletic fields and nurseries. Re-use water is also supplied to Randolph Air Force Base, which is one of our emergency wholesale customers. Water Conservation Plan Goals The goals of the program are to reduce water loss and per capita water usage through water conservation, best management practices, and to provide for a reduction in water usage during times of shortage. Reduction in losses and usage will extend the availability of the existing water supply and infrastructure resulting in reduced capital and operating costs. Water Loss Goal (from 2009) 5-year 5 % reduction 10-year 10 % reduction Per Capita Usage Goal (from 2009) 5-year 1 % reduction 10-year 3 % reduction Metering Metering at Point of Source: The City of Schertz has a master meter at the Live Oak tank site where water is accepted to the system from the SSLGC. The City of Schertz also has master meters located at both wells at our Nacogdoches Well site. This site is on the Edwards Aquifer and is used for emergency and peak usage only. The meters are accurate to within 5% and are calibrated annually. Universal Metering: The City of Schertz requires the metering of all connections to the water system, including residential, commercial, industrial, construction, and municipal use. The City completed the replacement of 100% of all meters in 2008 and implemented the use of a radio read network automatic meter reading (AMR) system also in 2008. This system has the ability to provide usage information for billing, identify unusual usage patterns, usage due to leaks, tampering and detect meter malfunctions. When an unusual usage pattern or meter malfunction is detected, the meter is then tested and replaced as necessary. The calibration of the AMR to meter interface is checked at least annually to ensure proper system operation. Water Audit The City of Schertz maintains a record management system that tracks water pumped, delivered, and sold with the ability to determine the amount of water losses. The system allows for the desegregation of sales into residential, commercial, and municipal uses. The City conducts a monthly audit to determine the amount of unaccounted usage. The City of Schertz conducts an annual rotating inspection of 10% of all distribution lines including the service connections to the meter. Therefore, in a 10-year period, the entire system is inspected. The inspection uses ultrasonic equipment to identify leaks not visible on the ground surface. Once identified, the leaks are repaired. Leak Detection/Repair Program The City of Schertz investigates all reported leaks, performs periodic visual inspections, and performs leak detection surveys of the water distribution lines. The use of ultra sonic leak detection devices are also used to locate leaks. Work orders are generated and prioritized by this program. Public Education The City of Schertz promotes water conservation by informing water users about ways to save water inside homes and buildings, in landscaping and lawn maintenance, and in recreational uses. The City of Schertz informs our customers about water conservation practices through the City newsletter, website, and presentations put on at local schools. Water conservation practice material can be found at the Schertz Library, City Hall, and Public Works Center. The City of Schertz includes information about water conservation in its annual Water Quality Report. The report is mailed to all customers with a billing address and is also provided to apartment complexes and posted in public locations such as the Schertz Library. The City of Schertz provides copies of its Water Conservation and Drought Contingency Plan on its website and at city facilities. Water Rate Structure The City of Schertz Water Rate Structure is an inverted block rate. The rate is based on the size of the water meter and an increase cost per 1000 gallons to discourage high usage. It encourages customers to repair leaks in a timely manner. Plumbing Code The City of Schertz follows the 2006 International (or the most recent adopted) Plumbing Code for all new construction and all remodeling that requires a plumbing permit. Section 401.3 and Table 604.4 of the code requires water saving plumbing devices and establishes maximum acceptable flow rates for each device. Water Conservation Landscaping The City of Schertz, through its information and education program, will encourage customers and local landscaping companies to utilize water saving practices during installation for residential and commercial institutions. The education and information program will promote the following methods. Encourage subdivisions to require drought-resistant grasses and low water use plants. Encourage landscape architects to use native, low water use plants and grasses and efficient irrigation systems. Encourage licensed irrigation contractors to incorporate water saving devices in the design of their sprinkler systems, such as rain sensors, efficient sprinkler heads, and drip irrigation when possible. Encourage commercial establishments to incorporate water saving sprinkler devices for landscape watering, when practical, and to install only ornamental fountains that use minimal quantities of water, including recycling features. Encourage local nurseries to offer native, low water use plants and grasses and efficient watering devices. The citizens are encouraged to utilize drought resistant plants and Xeriscape techniques through education materials and landscape examples made available by visiting our City park system. Citizens can also take advantage of our St. Augustine Replacement Rebate Program described below. Retrofit/Replacement Program The City of Schertz shall continue to encourage the retrofit or replacement of water efficient plumbing fixtures with the following programs. Encourage citizens to take advantage of the City’s fixture rebate program. The City of Schertz currently has a fixture rebate program designed to replace all toilets that use more than 1.6 gallons with a fixture that uses 1.6 gallons or less. Citizens are also encouraged to take advantage of the St. Augustine Grass Replacement Rebate Program. The City of Schertz gives a rebate to water customers that replace their St. Augustine Grass with a more drought tolerant turf or water saving type of landscaping. (Xeriscape) Recycle and Reuse The City of Schertz encourages reuse water to be implemented when possible. Cibolo Creek Municipal Authority provides reuse water to the local high school athletic fields and local nurseries. Randolph Air Force Base also purchases reuse water for irrigation of their golf course. (RAFB is a wholesale customer of the City of Schertz) The City of Schertz requires all automated car wash facilities to implement recycle technology. Water Wholesale Agreements This plan shall require that all current and future wholesale water supply contracts that are made with wholesale customers shall contain a “pass-through” clause that requires direct compliance with this plan and the City’s adopted drought contingency plan. Record Management System The City of Schertz record management system retains records for its water use characteristics. The record management system is maintained by the City of Schertz water utility division and is configured to provide the following water use information. (1) Water Production (2) Water Delivered (3) Water Sales (4) Water Losses The City’s record management system further allows for the separation of water sales and water usage characteristics into the following customer-specific categories. (1) Residential (2) (3) Commercial Coordination with Regional Planning Groups The service area of the City of Schertzis located within the South Central Texas Regional Water Planning Group. The City of Schertz has provided a copy of this water conservation plan to the South Central Texas Regional Water Planning Group (Region L). Implementation and Enforcement The City of Schertz Water Department will administer the Water Conservation Plan. They will oversee the execution and implementation of all elements of the program and supervise the keeping of adequate records for program verification. The Plan will be enforced through the adoption of the Water Conservation Plan by Ordinance of the City of Schertz City Council and adoption of the Drought Contingency Plan by ordinance of the City of Schertz City Council. Water service taps will not be provided to customers unless they have met the Plan requirements. The building inspector will not certify new construction that fails to meet Plan requirements. Agenda No. 4 CITY COUNCIL MEMORANDUM City Council Meeting: May 19, 2009 Department: City of Schertz Investment Advisory Committee Subject: Resolution No. 09-R-27– Revising the Schertz Investment Policy BACKGROUND The City of Schertz Investment Policy requires a review of the City of Schertz Investment Policy annually. The current Investment Policy, Section II, page 3, subsection Maturity states “the average maturity of the overall portfolio, excluding those investments held for future major capital expenditures and registry funds, shall not exceed five (5) years. The Investment Advisory Committee recommends changing the average maturity to 4.5 years. In addition, Section, IV, subsection Investment Advisory Committee, page 8, reads “An Investment Advisory Committee composed of the City Manager (or his designee) (as Chair), the Assistant City Manager who oversees the Finance Division, the Mayor, and one member of the City Council designated from time to time by the City Council”. The recommendation is to change the composition of the Investment Advisory Committee to read as follows “An Investment Advisory Committee composed of the City Manager (as Chair), both Assistant City Managers, the Mayor, Finance Director, Financial Analyst, and one member of the City Council designated from time to time by the City Council”. FISCAL IMPACT There will not be any fiscal impact. RECOMMENDATION Approval of Resolution No. 09-R-27 . ATTACHMENT Resolution No. 09-R-27, with City of Schertz Investment Policy attached. CCM Resol 09-R-23.doc RESOLUTION NO. 09-R-27 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING ADOPTION OF A REVISED CITY OF SCHERTZ INVESTMENT POLICY. 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, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: 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 and after review the City Council recommends changing Section 3. Section II, page 3, subsection Maturity has changed to read as follows “the average maturity of the overall portfolio, excluding those investments held for future future major capital expenditures and registry funds, shall not exceed 4.5 years. Section 4. Section IV, subsection Investment Advisory Committee, page 8, has changed to read “An Investment Advisory Committee composed of the City Manager (as Chair), both Assistant City Managers, the Mayor, Finance Director, Financial Analyst, and one member of the City Council designated from time to time by the City Council”. Section 5. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 6. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 7. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 8. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 9. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 19th day of May , 2009. ATTEST: ___________________________ Mayor, City of Schertz City Secretary (CITY SEAL) Resol 09-R-23.doc EXHIBIT A CITY OF SCHERTZ, TEXAS INVESTMENT POLICY See attached Resol 09-R-23.doc A-1 CITY OF SCHERTZ, TEXAS INVESTMENT POLICY 20003062.2 ITEM 4B SCHERTZ -i-TABLE OF CONTENTS I. INVESTMENT SCOPE...........................................................................................................1 General Statement................. ..........................................................................................1 Funds Included............................................................................................. ....................1 Funds Excluded.................................................................................................................1 II. INVESTMENT OBJECTIVES....................... .....................................................................1 General Statement............................................................................................................1 Safety.................................................................................................................................2 Liquidity..................................................... ......................................................................2 Diversification................................................................................................................ .2 Yield................................................................................................................. .................2 Maturity............................................................................................................................3 Quality And Capability of Investment Management....................................................3 Public Trust.......................................................................................................................3 Portfolio Management......................................................................................................4 Investment Strategy........................................................ .................................................4 III. INVESTMENT RESPONSIBILITY AND CONTROL....................................................4 City's Investment Delegate.......................... ....................................................................4 Selecting And Processing Investments............................................................................5 Documenting Investments And Providing Details.........................................................5 Developing Cash Flow Projections For All Portfolios............................................ ......5 Determining Cash Available For Investment.................................................................5 Monitoring Investment Performance.................................................. ...........................5 Reconciling Investment Records And General Ledger.................................................6 Allocating Interest Revenue........................................... .................................................6 Providing Revenue Estimates For All Portfolios...........................................................6 Prudence................................. .........................................................................................6 Business Relationships of City Manager (or his/her designee).....................................6 Liability of City Manager (or his/her designee).............................................................7 IV. INVESTMENT REPORTING................................................................. ...........................7 Quarterly Report..............................................................................................................7 Investment Advisory Committee............. .......................................................................8 Annual Review................................................................................................................. 8 Notification of Investment Changes or Defaults............................................................8 Compliance Audit......................................................................... ...................................9 V. INVESTMENT INSTRUMENTS.........................................................................................9 Authorized Investment Instruments............. .................................................................9 VI. INVESTMENT INSTITUTIONS.......................................................................................12 Investment Institutions Defined.....................................................................................12 Selection of Bank And Securities Dealers........................................ ............................12 ITEM 4B SCHERTZ -ii-VII. INVESTMENT COLLATERAL AND SAFEKEEPING...............................................13 Collateral or Insurance For Deposits................................................... ........................13 Safekeeping.....................................................................................................................13 Delivery vs. Payment..................... ................................................................................14 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 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 (or his/her designee). 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 of City funds while preserving and protecting capital in the overall portfolio. 20003062.2 1 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 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 20003062.2 2 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. Maturity Portfolio maturities will be staggered to achieve the highest return of interest but at the same time provide for the necessary liquidity to meet the City's cash needs. City funds shall be invested only in investments whose maturities do not exceed five years at the time of purchase, except, if permissible, funds accumulated for debt service payments, bond fund reserve accounts, and registry trust funds. In addition, the average maturity of the overall portfolio, excluding those investments held for future major capital expenditures and registry trust funds, shall not exceed 4.5 years. Quality and Capability of Investment Management It is the City's policy to provide for periodic training in investments as required by the Act for the City Manager through courses and seminars offered by professional organizations and associations in order to ensure the quality and capability of the City Manager (or his/her designee) in making investment decisions. The treasurer, the chief financial officer if the treasurer is not the chief financial officer, and the City Manager (or his/her designee) of the City shall: (1) attend at least one training session from an independent source approved by the City Council of the City or the Investment Advisory Committee advising the City Manager (or his/her designee) as provided for in the Policy of the City and containing at least 10 hours of instruction relating to the treasurer’s or officer’s responsibilities under this Policy within 12 months after taking office or assuming duties; and (2) attend an investment training session not less than once in a two-year period and receive not less than 10 hours of instruction relating to investment responsibilities under this Policy from an independent source approved by the City Council of the City or the Investment Advisory Committee advising the City Manager (or his/her designee) as provided for in the Policy of the City. Training under this Policy must include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio, and compliance with the Act. Public Trust 20003062.2 3 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 As a part of its Policy, the City shall adopt a separate written investment strategy for each of the funds or groups of funds under its control. Each investment strategy must describe the investment objectives for the particular fund using the following priorities in order of importance: (1) Understanding of the suitability of the investment to the financial requirements of the City; (2) Preservation and safety of principal; (3) Liquidity; (4) Marketability of the investment if the need arises to liquidate the investment before maturity; maturity; (5) Diversification of the investment portfolio; and (6) Yield. III. INVESTMENT RESPONSIBILITY AND CONTROL City's Investment Delegate In accordance with Section 2256.005 of the Act, the City Manager (or his/her designee) is designated as the officer responsible for the investment of the City's funds. The City Manager (or his/her designee) 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; 20003062.2 4 (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 City Manager (or his/her designee) reviews 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 City Manager (or his/her designee) approves the wire transfer form authorizing the transfer of funds for a specific investment transaction. Documenting Investments and Providing Details The City Manager (or his/her designee) retains documentation of all investment transactions, including any bond swaps. The City Manager (or his/her designee) provides information and supporting supporting documentation for all investment transactions for entry in the General Ledger. The City Manager (or his/her designee) 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 (or his/her designee) analyzes prior period data and develops and amends cash flow projections of the City's cash requirements. The City Manager (or his/her designee) uses cash flow projections to match assets and liabilities in order to maximize the return on investments. Determining Cash Available for Investment The City Manager (or his/her designee) determines the amount of City funds available for investment each business day. All funds that can be legally invested and that are not required for that day's disbursements are considered funds available for investment. Monitoring Investment Performance The City Manager (or his/her designee) designee) 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. 20003062.2 5 The City Manager (or his/her designee) monitors 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 (or his/her designee) monitors yield spreads between various government agency issues and United States notes and bonds to determine the best value. The City Manager (or his/her designee) 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 (or his/her designee) 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 (or his/her designee) 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 (or his/her designee) provides an estimate of the investment revenue for the annual budget by August 1 of each year. 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, withdraw, transfer, or manage in any other manner the funds of the City. Business Relationships of City Manager (or his/her designee) The City Manager (or his/her designee) must file a statement with the City Council and the Texas Ethics Commission of any personal business relationship that the City Manager (or his/her designee) 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 20003062.2 6 (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 (or his/her designee) The City Manager (or his/her designee) is 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 (or his/her designee) 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; 20003062.2 7 (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), both Assistant City Managers, the Mayor, Finance Director, Financial Analyst, and one member of the City Council designated from time to time by the City Council will meet no less than once semiannually to review the last two quarterly reports prepared by the City Manager (or his/her designee) and review the Investment Objectives, Investment Responsibility and Control, and Investment Instruments as established by this Policy and the Act. Annual Review This Policy and investment strategy will be reviewed by City Council annually. The 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. Notification of Investment Changes or Defaults It shall be the duty of the City Manager (or his/her designee) 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. 20003062.2 8 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 (or his/her designee) 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) Direct obligations of the State of Texas or its agencies and instrumentalities; (3) 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; (4) Other obligations, the principal of and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of the State of Texas or the United States or their respective agencies and instrumentalities; (5) 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 a 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 20003062.2 9 (C) Secured in any other manner and amount provided by law for deposits of the City; (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; (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 defined by the Federal Reserve, or a financial institution doing business in this State; (10) A guaranteed investment contract is an authorized investment for bond proceeds under the Act if the guaranteed investment contract (A) Has a defined termination date; 20003062.2 10 (B) Is secured by obligations described by subdivision (1) in an amount at least equal to the amount of bond proceeds invested under the contract; and (C) Is pledged to the City and deposited with the City or with a third party selected and approved by the City; and (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 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. In addition to the investments described by items (1) -(11) 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) -(11) 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 90 days or less and whose investment objectives include seeking to maintain a stable net asset value of $1 per share or a no-load mutual fund which is registered with the SEC, has an average weighted maturity of less than 20003062.2 11 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 finds 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 Investment Institutions Defined The City Manager (or his/her designee) shall invest City funds with any or all of the following institutions or groups consistent with federal and state law and the current depository bank contract: (1) The City’s Depository bank; (2) Other state or national banks domiciled in Texas that are insured by FDIC; (3) Savings and loan associations domiciled in Texas that are insured by FDIC; (4) Public funds investment pool; or (5) Government securities brokers and dealers acceptable to the City. Selection of Bank and Securities Dealers All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must be given a copy of the Policy and must supply the City Manager (or his/her designee) 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. Third, a broker/dealer must provide a completed Broker/Dealer questionnaire furnished by the City Manager (or his/her designee). 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 20003062.2 12 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 and other investment policies, except to the extent that this authorization is dependent on an analysis of the makeup of the City's entire portfolio or requires an interpretation of subjective investment standards. The City Manager (or his/her designee) will recommend both primary and secondary securities dealers to the City Council for final approval. The City Manager (or his/her designee) 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 member 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 (or his/her designee) 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 insurance 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. 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. 20003062.2 13 20003062.2 14 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. Adopted: April, 2002 Reviewed: May 20, 2003 and adopted April 28, , 2004 March 9, 2005 and adopted Oct 17, 2006 and adopted Oct 23, 2007 and adopted Agenda No. 5 CITY COUNCIL MEMORANDUM/RESOLUTION City Council Meeting: May 19, 2009 Department: Public Works /Engineering Subject: Consideration and/or action supporting TxDOT petition to amend the speed limit on FM 3009 to 45mph. BACKGROUND Berry Creek subdivision residents petitioned TXDOT to reduce the speed limit of FM 3009 at their entrance area. TXDOT made their request to the city engineer to see if the city would support their petition to Austin to decrease the speed limit from 50mph to 45mph from Live Oak Road to Wiederstein Road on FM 3009. This request was taken to TSAC resulting in an unanimous vote in favor of recommending and forwarding to council to support TxDOT petition. The end results would be a uniform speed from Fm 78 to IH-35. FISCAL IMPACT No Fiscal Impact RECOMMENDATION Staff recommends Council approve and support TxDOT’s petition to reduce the speed limit on FM 3009 from Live Oak Road to Wiederstein Road to 45mph. Once approval staff will bring back and Ordinance. ATTACHMENT FM 3009 Current Speed Limit Exhibit That the above stated staff recommendations are hereby approved and authorized. PASSED AND APPROVED at a regular meeting of the City Council of the City of Schertz, Texas this 19th day of May, 2009, at which meeting a quorum was present, held in accordance with the provisions of V.T.C.A., Government Code, §551.001 et seq. City Council Memorandum Page 2 APPROVED _________________________ Hal Baldwin, Mayor ATTEST: ______________________________ Mary Ybarra, Deputy City Secretary FM 3009 CURRENT SPEED LIMIT EXHIBIT 45mph 50mph Agenda No. 6 CITY COUNCIL MEMORANDUM City Council Meeting: May 19, 2009 Department: Economic Development Subject: Schertz Economic Development Corporation payment for new City Library BACKGROUND The Board of Directors of the City of Schertz Economic Development Corporation (the “SEDC”) voted at its meeting on May 13 to make a payment of $150,000 (in three installments) to the City to be used for construction costs and (more likely) improvements at the new City Library. This funding proposal must be approved by the City Council. FISCAL IMPACT $150,000 payment by the SEDC to the City. RECOMMENDATION Adopt Resolution No. 09-R-28. ATTACHMENT Resolution No. 09-R-28. 50218312.1 RESOLUTION NO. 09-R-28 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING A PROJECT AND EXPENDITURES BY THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the Board of Directors of the City of Schertz Economic Development Corporation (the “SEDC”) has found that funding a one-time $150,000 transfer (in three installments of $50,000) to the City of Schertz to fund costs of construction of and improvements to (the “Project”) the new City of Schertz Library will promote new and expanded business development in the City of Schertz; WHEREAS, pursuant to Section 505.158 of Title 12, Subtitle C1, Local Government Code, as amended (the “Act”), the SEDC cannot make such a transfer until the City Council adopts this Resolution authorizing the Project; WHEREAS, Section 505.158(b) of the Act requires that this Resolution be considered by the City Council on at least two readings; and WHEREAS, City staff recommends that the City Council adopt this Resolution. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the SEDC to fund the Project as described 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 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. 50218307.1 50218307.1Section 6. It is officially found, determined, and declared that the meetings at which this Resolution is adopted were 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 following second reading, and it is so resolved. PASSED ON FIRST READING, the 19th day of May, 2009. PASSED AND ADOPTED ON SECOND READING, the ____ day of May, 2009. CITY OF SCHERTZ, TEXAS Mayor ATTEST: City Secretary (CITY SEAL)