AGENDA TUESDAY, MARCH 8, 2016 AT 6:00 P.M.216.45.71.196/Weblink/1/edoc/306505/03-08-2016 Agenda with back… · 03-08-2016 City Council Agenda Page - 2 - All remarks shall be addressed

City Council Agenda REGULAR SESSION CITY COUNCIL

March 8, 2016, 6:00 P.M.

HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4

SCHERTZ, TEXAS 78154

03-08-2016 Council Agenda

City of Schertz Core Values Do the right thing

Do the best you can Treat others the way you would want to be treated

Work together cooperatively as a team

AGENDA TUESDAY, MARCH 8, 2016 AT 6:00 P.M.

Call to Order – City Council Regular Session Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Mayor Pro-Tem Edwards) City Events and Announcements

Announcements of upcoming City Events (B. James/D. Wait/B. Cantu) Announcements and recognitions by City Manager (J. Kessel)

Employee Recognition

IT Department – Myles Clauser, recipient of the Certified Public Manager Certification. (B. James)

Presentation

Guadalupe Regional Medical Center – Prescription Assistance Program report. (D. Wait/Jerry Riggs)

Workshop

Discussion and possible action regarding approval of the City of Schertz 2016 Strategic Plan. (J. Kessel/S. Gonzalez)

Hearing of Residents This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker’s register prior to the meeting. Presentations should be limited to no more than 3 minutes.

03-08-2016 City Council Agenda Page - 2 -

All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and/or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered. Discussion and Action Items 1. Minutes - Consideration and/or action regarding the approval of the minutes of the Regular

Meeting of March 1, 2016. (J. Kessel/B. Dennis) 2. Resolution No. 16-R-23 – Consideration and/or action approving a Resolution authorizing

the appointment of members to the Alamo Area Council Of Governments (AACOG) Regional Emergency Preparedness Advisory Committee. (D. Wait/D. Wait)

3. Resolution No. 16-R-24 – Consideration and/or action approving a Resolution authorizing

an amendment to the Interlocal Agreement with the City of Cibolo regarding Dispatch Services. (D. Wait/M. Carey/M. Clauser)

Roll Call Vote Confirmation Requests and Announcements 4. Announcements by City Manager

Citizen Kudos Recognition of City employee actions New Departmental initiatives

5. Future Agenda Item Request for City Council: This is an opportunity for City Council members to request that items be placed on a future agenda. No discussion of the merits of the item may be taken at this time. Should a Council Member oppose placement of the requested item on a future agenda, the Mayor, without allowing discussion, shall ask for the consensus of the other City Council members to place or not place the item on a future agenda. 6. 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


7. Information available in City Council Packets - NO DISCUSSION TO OCCUR

Schertz Economic Development Corporation 2015 Tax Year reimbursement per City’s Development Agreement with Caterpillar 2015 Tax Year reimbursement per City’s Development Agreement with Capital

Group Adjournment

CERTIFICATION

I, BRENDA DENNIS, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 4th DAY OF MARCH, 2016 AT 1:00 P.M. WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE.

Brenda Dennis Brenda Dennis, 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 _______________, 2016. ____________________________Title:__________________________ This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services please call 210-619-1030. The City Council for the City of Schertz reserves the right to adjourn into executive session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act.

Executive Sessions Authorized: This agenda has been reviewed and approved by the City’s legal counsel and the presence of any subject in any Executive Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion.


COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS

Mayor Carpenter Audit Committee Interview Committee for Boards and Commissions Investment Advisory Committee TIRZ II Board

Councilmember Fowler – Place 1 Interview Committee for Boards and Commissions Schertz Housing Board Liaison Randolph Joint Land Use Study (JLUS) Executive Committee Schertz Seguin Local Government Corporation

Councilmember Azzoz – Place 2 Animal Control Advisory Committee Sweetheart Advisory Committee

Councilmember John – Place 3 Lone Star Rail District

Mayor Pro-Tem Edwards – Place 4 Audit Committee Hal Baldwin Scholarship Committee Interview Committee for Boards and Commissions Cibolo Valley Local Government Corporation

Councilmember Thompson Place 5 Audit Committee Investment Advisory Committee

Presentation

CITY COUNCIL MEMORANDUM City Council Meeting: March 8, 2016 Department: Administration Subject: Guadalupe Regional Medical Center –

Prescription Assistance report BACKGROUND On March 5, 2013, City Council approved an Interlocal Agreement with Guadalupe Regional Medical Center (the Hospital) relating to a prescription access program. This program offers assistance to qualified citizens of the city that enables them to purchase prescription medication at a significantly reduced price. The provision of a prescription assistance program is a public purpose and preserves and protects these qualified citizens’ health and safety. The Hospital will provide prescription medications free of charge or at a low cost to citizens who qualify for assistance under the guidelines established by each drug manufacturer and as described to the City by the Hospital. The Hospital will comply with all federal, state, county, and City laws, rules, ordinances, and regulations which may affect the agreement. A written report will be provided by the Hospital to the City Council of the City on or about March 1 and September 1 of each year. This report will document that the payments made by the City have primarily benefitted citizens of the City and will include such information as total number of resident patients served, number of prescriptions filled, retail dollar value of prescriptions, and sources of program funds. FISCAL IMPACT The fiscal impact to the City is $5,000 annually. This is a budgeted item. The City’s contribution helps pay for the cost of administering the program. RECOMMENDATION Staff recommends Council accept the report from the Guadalupe Regional Medical Center. ATTACHMENT Report dated September 1, 2015 through February 29, 2016

Total number of patients served by the program 1176

Total number of Schertz residents served by the program 31

Total number of prescriptions provided by the program 18353

Retail dollar value of prescriptions provided by the PAP 4,311,420.93$

Retail dollar value of prescriptions provided to Schertz residents by PAP 177,344.02$

Number of prescriptions per Schertz patient per month 3.7

Average prescription retail price (3 month supply) per Schertz patient 774.43$

Average annual retail prescription benefit per Schertz patient 11,441.54$

SOURCES OF PROGRAM FUNDS (ANNUAL)

Schertz contribution to the program 5,000.00$

Contributions to the PAP of other cities & other goverments (Seguin) ‐$

Contributions to program by GRMC Employees 4,019.78$

Payments by patients ($15.00/month/patient) 140,037.01$

Grants received for the program (United Way) 5,000.00$

Other sources of funds (identify sources)

Rebate from True Track Testing Devices 748.08$

Seguin Noon Lions Club 300.00$

Private 2,405.95$

157,510.82$

(326,376.24)$

(168,865.42)$

TOTAL REVENUE

TOTAL EXPENSES

TOTAL NET

Exhibit A

Report Information

Guadalupe Regional Medical Center

Prescription Assistance Program for Schertz Enrollees

September 1, 2015 thru February 29, 2016

BENEFIT

Workshop Item

CITY COUNCIL MEMORANDUM

City Council Meeting: March 8, 2016 Department: City Manager Subject: 2016 Strategic Plan ________________________________________________________________________ BACKGROUND: The City of Schertz is facing continuous growth, new challenges, and increasing expectations of service and performance. What we do today will shape how we will be and how we will function, as a fully developed community, in the next twenty to thirty years. As a result, what we do today matters more than ever to our long-term success. The City of Schertz developed this Strategic Plan to provide overall direction in achieving our desired future state by outlining our aspirations, actions, and motives. The Plan is comprised of our City’s Vision, Mission, and Value statements, SWOT analysis and next steps. The Vision, Mission and Values are important because they frame the City’s identity and brand, they set defined direction for achieving the City’s objectives, and they provide clarity when making important organizational decisions. The Policy Values are intended to be a reminder of what we are trying to accomplish as a community and to provide a series of benchmark values for examining the benefits and drawbacks of any project or policy decision in a methodical, consistent manner. The Operational Values help the City achieve more by focusing on its people and our customers in a professional work environment that focuses on ways to improve our systems and processes. The SWOT Analysis tool helps the City to honestly look at all areas where we not only excel, but also those areas where we can do better. By looking at both internal and external factors, it requires us to look for ways we can take advantage of opportunities or mitigate potential problems. Rather than focusing on goals without first gaining clarity, this Strategic Plan places purposeful emphasis on defining and understanding our Policy and Operational Values, as well as our strategic situation (where we are today). If we don’t first understand and agree on where we are as an organization and where we should go, it is only by chance that we will prioritize our most important goals. On the other hand, if we gain clarity and alignment first, we have a much more impactful understanding of what matters most and the direction we need to go.

As expressed, the City of Schertz Strategic Plan seeks to create alignment within our organization. Communicating our Vision, Mission, and Values at every level requires an ability to explain the rationale behind them and to engage our entire organization in a genuine exchange of perspectives. This can then lead to inspiring the entire team to champion execution of our plan. FISCAL IMPACT: None RECOMMENDATION: Staff recommends Council approval of the 2016 Strategic Plan. ATTACHMENTS: City of Schertz 2016 Strategic Plan

City of Schertz2016 Strategic Plan

City of SchertzStrategic Planning MeetingJanuary 14 & 15, 2016

ParticipantsCOUNCIL

EXECUTIVE MANAGEMENT

Michael CarpenterMayor

Jim FowlerMayor Pro-TemCouncil Member, Place 1

Grumpy Azzoz (absent)Council Member, Place 2

Daryl JohnCouncil Member, Place 3

Cedric EdwardsCouncil Member, Place 4

Robin ThompsonCouncil Member, Place 5

Charlie ZechCity Attorney

Brenda DennisCity Secretary

John KesselCity Manager

Bob CantuExecutive Director Services

Brian JamesExecutive Director Development

Dudley WaitExecutive Director Operations

Kyle KinatederExecutive Director EDC

Sarah GonzalezAssistant to the City Manager

DEPARTMENT HEADSMyles ClauserDirector of Information Technology

David CovingtonFire Chief

Gilbert DurantChief Building Official

Michael HansenPolice Chief

Michael HarrisCity Marshal

Linda KlepperPublic Affairs Director

Jessica KurzPurchasing and Asset Manager/Interim HR Director

Kade LongAssistant Fire Chief

Jason MabbittEMS Director

Tony McFallsGIS Coordinator

Juan SantoyaFinance Director

Melissa UhlhornLibrary Director

Charles Van ZandtDirector of Parks, Recreation and Community Services

Patti VelizCourts Director

Sam WilloughbyPublic Works Director

Lesa WoodDirector of Planning and Community Development

Kathryn WoodleeCity Engineer

Executive Summary

Chapter 1: Vision/Mission/Values

Chapter 2: Policy Values

Chapter 3: Operational Values

Chapter 4: SWOT

Next Steps

Resources

Appendix

City of Schertz Strategic Plan

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2

5

9

13

17

19

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Table of Contents

Executive SummarySchertz Vision for Excellence

The City of Schertz developed this Strategic Plan to provide overall direction in achieving our desired future state by outlining our aspirations, actions, and motives. By regularly referencing the document, we can better align City Council, Boards and Commissions, and City Staff toward a common goal while providing for a more balanced approach. The continued use of this document will increase alignment and help maintain a steady course despite possible economic changes, limited financial resources, evolving leadership, or other changing environments. The Schertz Vision for Excellence Model (See Appendix C) is how we integrate our leadership aspirations in a way that is readily understandable both within the organization and outside to our citizens and stakeholders, and it will be used not only to chart our course but to also measure our success.

The Strategic Plan was developed with input from City Staff, City Council, and community stakeholders.Through a series of meetings the various groups discussed and refined each chapter and tailored it to our current conditions, needs, and objectives. It is important to keep in mind that all strategic plans are livingdocuments that are continuously improving. As soon as the initial plan is final, a process of review, reconsideration and refinement must begin. The breadth of responsibilities facing the City and the ever-changing world guarantees that in order to stay relevant, any strategic plan must be evolving with the pace of that change.

The Strategic Plan document was developed in Fall 2015 and early 2016. It is comprised of our City’s Vision, Mission, and Value statements (Core, Policy and Operational), SWOT framework and next steps.

Collectively these documents develop the fundamental building blocks that will be used to help strengthen our City by declaring our community’s aspirations, summarizing our core purposes, articulating our guiding principles, establishing behavioral targets, helping us to honestly look at areas where we can improve, and identifying our measures for success.

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Chapter 1: Vision/Mission/Values

The Vision, Mission and Values are important because they frame the City’s identity and brand, they set defined direction for achieving the City’s objectives, and they provide clarity when making important organizational decisions. They define our true north, guiding us toward the right path. Adoption and implementation of these philosophies by City Staff, City Council and community stakeholders will facilitate critical alignment that is necessary for organizational success.

The City last updated our Vision and Mission statements in 2011. This year, the City took a fresh look at our Mission statement in order to have it aligned more closely with our new values. In an effort to re-evaluate the relevance of the Policy Values adopted by Council in December 2013, all departments were tasked with selecting three values (most applicable to their operations), and conducted a question-based analysis called Is/Is Not/Why. Each of the values were defined by What It Is, What It Is Not, and Why the value was relevant or important to the City. The results were compiled and reviewed, and then over the course of several workshops in Fall 2015, Staff concluded that the City would be best served by splitting the values into three groups:

• Policy Values – Values driven by capabilities, competencies and priorities • Operational Values – Behavioral-driven values • Core Values – Foundational values

The Vision provides a meaningful statement of the City’s desired future state, expresses our aspirations, and sets strategic direction for our growth. This is the broadest, most overarching statement that must be equallytrue amongst all of our departments. (CONTINUED ON PAGE 3)

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The Mission describes the City’s purpose and answers the question, “What are we attempting to accomplish?” It provides the framework or context within which our goals are formulated.

The Values are beliefs which City Staff and Council hold in common. They are the guiding principles that drive behavior necessary to fulfill the City’s vision and mission. Values shape our organizational perspective as well as our actions.

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Chapter 1 Continued

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Chapter 2: Policy Values

5

In December 2013, City Council developed and adopted a set of Policy Values. The idea of adopting formalized Policy Values arose from the Council’s desire to provide a framework for future Councils to help them makeconsistent and informed decisions for the City as a whole when projects and issues were brought before them. The Policy Values are intended to be a reminder of what we are trying to accomplish as a community and to provide a series of benchmark values for examining the benefits and drawbacks of any project or policy decision in a methodical, consistent manner. Having a tool of this sort in place helps steer leadership toward the projects and decisions that are most likely to accomplish the City’s mission and move closer to its vision.

On the surface, the Policy Values appeared clear-cut and self-explanatory, but continued use of them revealed to Staff that they needed an agreed upon definition. In Fall 2015, Staff undertook the task of examining and truly understanding what each Policy Value meant and why each was important to the City. This was accomplished through the use of the Is/Is Not/Why analysis. Staff determined that some Policy Values were actually Operational Values, while others could be combined together. Upon completion of the exercise, there were six remaining Policy Values, which are reflected in this chapter. Within the analysis, Council and Staff each developed their own Why Statements which are identified as Policy and Operational, respectively.

It was the consensus of Staff that Policy Values are those driven by capabilities, competencies and priorities. They are the natural extension to one of the Core Values, “Do the Right Thing.” Additionally, when looking at the Schertz Complete City Model (See Appendix A) it can be noted that the Policy Values purposely fit within each of the three areas.

Once the analysis was complete, the Policy Values were presented to Council. After Council’s assessment and input, the final version of the Policy Values are presented in this document and are intended to be used as the touchstone against which all decisions should be tested. These values will act as a guide to current, as well as future, elected officials and staff.

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Core Service Policy Values

Safe Community

Essential Services

•Proper planning, design and construction

•An informed, engaged community

•Being prepared for seen and unforeseen incidents

•Adequately investing in and maintaining the built community

•Having appropriate staffing levels to support essential services

•Proactive

•Crumbling infrastructure

•Solely the blind reliance on enforcement of codes, ordinances and laws

•Having staff who are not mindful of their day to day impact on the safety of the community

•Being afraid of letting your kids walk to school

•Reactive

POLICY •Providing a safe yet flexible environment allows people to live their lives and pursue their dreams (foundational to the whole community).

OPERATIONAL •Safe communities are attractive to businesses and families and are necessary for meeting citizen expectations and for continued growth.

IS IS NOT

WHY

•Functions that address basic community needs such as security, life safety and infrastructure

•Frivolous

•Functions that enhance quality of life but do not address basic community needs

•Services that satisfy only a small niche of the population

POLICY •Foundation of why we exist and it is what the community expects.

OPERATIONAL •Essential Services provide for the most basic needs of our community.

IS IS NOT

WHY

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•A well planned community that creates convenient living

•Having a variety of recreation, leisure, cultural and access opportunities for all ages

•A safe community

•Having good schools and access to higher education

•A friendly city

•Unwelcoming

•Limited options for work, live and play

•Poor schools and no access to higher education

•The lack of enforcement of city codes and ordinances

•Poor maintenance of infrastructure and services/amenities

POLICY •A High Quality of Life creates an environment conducive to people enjoying their lives while pursuing their dreams. OPERATIONAL •A High Quality of Life attracts people to the City who are looking for more than just a place to live.

IS IS NOT

WHY

•Clean and tidy

•A well planned, well landscaped, well built and well maintained community

•Having aesthetically appealing places and buildings

•Dirty and unkempt

•Poorly planned, poorly landscaped, poorly built and poorly maintained

•A concrete jungle

POLICY •Attractive Communities create a positive environment for businesses and families - quality begets quality.

OPERATIONAL •Attractive Communities appeal to businesses and residents, increase property values and provide for happier, healthier residents.

IS IS NOT

WHY

High Quality of Life

Attractive Community

Quality of Life Policy Values

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•A high bond rating

•Wealth generation

•A diverse and resilient commercial base

•Maintaining an advantageous ratio between commercial and residential tax bases

•A stable commercial base

•A non-diverse and a volatile commercial base

•Lack of opportunity for economic growth

•High foreclosure rates

•Fiscally challenged

POLICY •Economic Prosperity gives us the opportunity to execute on all of our goals and provides the leverage for good decision making.

OPERATIONAL •Having Economic Prosperity is critical to fostering a long-term future for our residents and business community.

IS IS NOT

WHY

•Knowledge of municipal financing including revenues as well as expenses

•The integration of appropriate public and private sector best prac-tices

•Having adequate reserves

•Staying within budget

•Long-term planning

•Requiring the ability to say no to lower priorities

•Overly optimistic or inflated projections

•Irresponsible, impulsive or frivolous spending

•Using reserves for unintended purposes

•The failure to establish priorities

POLICY •Fiscal Sustainability mitigates our risk of failure to continually provide core services and quality of life enhancements and keeps us positioned to seize upon and maximize all potential opportunities. OPERATIONAL •A fiscally sustainable organization is equipped to navigate changing economic conditions and inspires trust among our various stakeholders.

IS IS NOT

WHY

Economic Prosperity

Fiscally Sustainable

Economic Engine Policy Values

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Chapter 3: Operational Values

The Operational Values help the City achieve more by focusing on its people and customers while always looking for ways to improve. These values foster a professional work environment that will help us to have an engaged workforce and greater customer focus. In order to be successful, there must be ever improving systems in place so we can achieve greater results and efficiencies.

Through an Is/Is Not/Why analysis of the 2013 Policy Values, Staff determined that some of the values were actually more operational in nature. As a result, the two categories of values, Policy and Operational, were developed. These five Operational Values are our pillars for running a professional organization.

Operational Values are behavioral-driven and are the natural extension of the Core Value “Do the Best You Can.” The Operational Values drive the Schertz Management Model (See Appendix B), a model comprised of our desired best management practices, in order to meet and exceed our internal and external requirements and aspirations.

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The Operational Values help the City achieve more by focusing on its people and customers while always looking for ways to improve. These values foster a professional work environment that will help us to have an engaged workforce and greater customer focus. In order to be successful, there must be ever improving systems in place so we can achieve greater results and efficiencies.

Through an Is/Is Not/Why analysis of the 2013 Policy Values, Staff determined that some of the values were actually more operational in nature. As a result, the two categories of values, Policy and Operational, were developed. These five Operational Values are our pillars for running a professional organization.

Operational Values are behavioral-driven and are the natural extension of the Core Value “Do the Best You Can.” The Operational Values drive the Schertz Management Model (See Appendix B), a model comprised of our desired best management practices, in order to meet and exceed our internal and external requirements and aspirations.

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Systems Management aligns and integrates all components of the organization as a unified whole to achieve the mission,ongoing success and performance excellence.

•Integrated, interconnected, whole

•A continuous cycle of improvement

•A focus on data and analysis of results

•Aligned processes to achieve results towards performance excellence

•A continuous journey

•About the individual, a department, a unit or their individuals goals

•About repeating failures

•Random

•Static or unchangeable

•Based on assumptions

OPERATIONAL •Systems management allows us to integrate and consolidate our resources, share best practices, and achieve greater results and efficiencies across the organization rather than settling for the results we get at the individual or departmental level.

IS IS NOT

WHY

•One that is inspired and encouraged to contribute

•Where staff has opportunities for growth

•Having leadership that listens with the intent to understand

•Having employees conform to a mold

•Reacting prematurely to a concern

•Favoritism •Just punching the clock

OPERATIONAL •Anengagedworkforceprovidesbetterservicetoourinternalandexternalcustomersandisthefoundationfor continuousgrowthandprogress.

IS IS NOT

WHY

Valuing people is the framework for building and sustaining an Engaged Workforce, who in turn are committed to serving customers and making a positive difference in their lives.

Systems Management

EngagedWorkforce

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Operational Values

An organization manages for innovation by creating new value through meaningful change.

•Finding better ways to do things

•Willing to take chances to make changes

•Being creative

•Uncharted

•Status Quo

•Following the path of least resistance

•Often easy

IS IS NOT

WHY

•Continuously improving and evolving

•Forward thinking

•The ability to forecast and meet needs even before the cus-tomer identifies them

•Reactive

•Complacency or stagnant

•Waiting for someone else to do it

•Having to be told to do it

OPERATIONAL •Being proactive creates a professional environment that fosters efficiency, offers greater ranges of choice and meets stakeholder expectations.

IS IS NOT

WHY

Proactive means initiating change by anticipating future situations in order to make things happen.

Innovative

Proactive

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Operational Values

OPERATIONAL •Being innovative seeks to create new value for our community through meaningful change.

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In an organization that has a Service Oriented culture, there is the focus on meeting and exceeding current and futurecustomer needs.

•Being flexible, adaptable and available to your customer

•Being responsive with a positive attitude

•Anticipating, understanding and managing our customer’s needs

•Everyone’s responsibility

•Self-focused

•Rude, callous or unprofessional

•Only providing the minimum service

•By chance

•Failing to keep everyone informed

•Providing inaccurate information

OPERATIONAL •The City exists to provide service to our customers and they deserve our best.

IS IS NOT

WHY

Service Oriented

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Operational Values

Chapter 4: SWOT

The SWOT Analysis tool helps the City to honestly look at all areas where we not only excel, but also those areas where we can do better. By looking at both internal and external factors, it requires us to look for ways we can take advantage of opportunities or mitigate potential problems.

In the Fall of 2015, each department of the City met separately and performed SWOT analysis on the City Policy Values from the perspective of the department. City Staff met in January 2016 to develop a city-wide SWOT analysis for each of the City’s six Policy Values. The consensus of that group is reflected in this chapter.

A SWOT Analysis is a useful technique for understanding the Strengths, Weaknesses, Opportunities, and Threats that we face as a City. It detects internal factors through listing our Strengths and Weaknesses, and seeks to identify external factors by requiring us to consider any Opportunities and Threats.

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Core Service SWOT

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POLICY VALUE: Essential Services

POLICY VALUE: Safe Community

Quality of Life SWOT

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POLICY VALUE: Attractive Community

POLICY VALUE: High Quality of Life

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Economic Engine SWOT

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POLICY VALUE: Attractive Community POLICY VALUE: Fiscally Sustainable

POLICY VALUE: Economic Prosperity

Next Steps

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The City of Schertz is facing continuous growth, new challenges, and increasing expectations of service and performance. What we do today will shape how we will be,and how we will function, as a fully developed community in the next twenty to thirty years. As a result, what we do today matters more than ever to our long term success.

The City must have three key elements in place as part of how we do business: first, we must have a meaningful Vision for the future; second, we must be Aligned in our understanding of what that means to all parts of our organization; and third, we must be willing to Execute on the essential elements of our vision at the individual level in order to move us toward achieving success. The City utilizes the Work of Leadersassessment tool as part of our teambuilding process to help us better understand how the leadership teamperforms in these three areas (Vision, Alignment, Execution).

These three key elements, Vision, Alignment, and Execution, must address our current “practical realities” in order to be effective. Taking a balanced approach to funding new roadways, new facilities, maintaining the same ratio of staff to population as we grow, and still maintaining our existing roadways and facilities, as well as training and developing our existing staff, is needed in order to realize our complete vision as a community.

The City of Schertz 2016 Strategic Plan is intended to be a relevant and living document.

To be a relevant document it must be a meaningful guide for both our City Boards/Commissions and ourCity Departments. For our citizen-led bodies, there can be a clear connection between the City Council’s Policy Values and a specific master plan, such as a thoroughfare plan or parks plan, for example.

For our mission specific departments, they can see the relationship between their department programs and the overall City direction. Additionally, the Operational Values inform both the Boards/Commissions and City Departments in the value and direction of operational improvements so that our organization can continuously improve in order to better achieve our goals. (CONTINUED ON PAGE 18)

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To be a living document, it must be kept current by evolving to address present conditions which change for both internal and external reasons. The Strategic Plan is intended to be updated each January by City Council and Staff at the annual strategic planning retreat.

Rather than focusing on goals without first gaining clarity, this Strategic Plan places purposeful emphasis on defining and understanding our Policy and Operational Values, as well as our strategic situation (where we are today). If we don’t first understand and agree on where we are as an organization and where we should go, it is only by chance that we will prioritize our most important goals. On the other hand, if we gain clarity and alignment first, we have a much more impactful understanding of what matters most and the direction we need to go.

Additionally, the Boards/Commissions and City Departments are encouraged to participate in the development of these annual updates by working on their own strategic plans, both formally and informally. Furthermore, the Committee of Committees Advisory Board holds a unique place amongst the City. As representatives from each of the Boards/Commissions, this Council-appointed Advisory Board has the ability and opportunity to coordinate and create alignment between the Strategic Plan and their respective Boards/Commissions.

As expressed, the City of Schertz Strategic Plan seeks to create alignment within our organization. Communicating our Vision, Mission, and Values at every level requires an ability to explain the rationale behind them and to engage our entire organization in a genuine exchange of perspectives. This can then lead to inspiring the entire team to champion execution of our plan.

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Next Steps Continued

Learn More

• Start with Why - How Great Leaders Inspire Action (Simon Sinek)

• Work of Leaders: Building Alignment (Julie Straw)

• The Five Dysfunctions of a Team (Patrick Lencioni)

• Great by Choice (Jim Collins)

Resources

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http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action

http://watercoolernewsletter.com/the-work-of-leaders-why-building-alignment-is-one-of-the-most-important-things-you-can-do/#.Vtmqd_krKCg

https://www.youtube.com/watch?v=iJTtlKV-bhQ

http://www.jimcollins.com/books/great-by-choice.html

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Appendix

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A: Complete City Model

B: Schertz Management Model

C: Schertz Vision for Excellence Model

21

Appendix A

The Schertz Complete City Model is a visual depiction of three areas: 1) What we must provide to be a city (Core Services),2) What we want to provide to be a desirable city (Quality of Life); and,3) What drives our ability to provide adequately for each (Economic Engine) When we accomplish all three simultaneously, we are a Complete City. Additionally, each area is further defined by two Policy Values: Core Services is comprised of "Safe Community" and "Essential Services"; Quality of Life includes "High Quality of Life" and "Attractive Community"; and Economic Engine is made up of "Economic Prosperity" and "Fiscally Sustainable." These six Policy Values are a reminder of what we are trying to accomplish as a community and add clarity in achieving our vision for being a complete city.

Complete City Model

21 22

The Schertz Management Model incorporates our five Operational Values, each of which represents an essential component of our desired best management practices. As identified by the South Texas Excellence Partnership, “These principles and concepts are embedded in high-performing organizations. They are the foundation for integrating key performance and operational requirements within a results-oriented framework that creates a basis for action, feedback, and ongoing success.” South Texas Excellence Partnership (STEP)is a community partnership that utilizes the beliefs and behaviors of high-performing organizations. The Schertz Management Model is how we envision managing the City to achieve the highest and most sustainable results.

Schertz Management Model

Appendix B

23

The Schertz Vision for Excellence Model incorporates our Vision, Mission, and Values with our Policy Values, Operational Values, and Core Values into an easily recognizable and meaningful model. As reinforced by STEP, “Senior Leaders set a vision, model expectations, and empower others to ensure sustainable success and continuous improvement.” The Schertz Vision for Excellence Model is how we integrate our leadership aspirations in a way that is readily understandable both within the organization and outside to our citizens and stakeholders.

Schertz Vision for Excellence Model

Appendix C

Agenda No. 1

CITY COUNCIL MEMORANDUM City Council Meeting: March 8, 2016 Department: City Secretary Subject: Minutes BACKGROUND The City Council held a Regular Meeting on March 1, 2016. FISCAL IMPACT None RECOMMENDATION Staff recommends Council approve the minutes of the Regular meeting of March 1, 2016. ATTACHMENTS Minutes –Regular meeting of March 1, 2016

03-01-2016 Minutes Page - 1 -

MINUTES

REGULAR MEETING

March 1, 2016

A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on March 1,

2016, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz

Parkway, Building #4, Schertz, Texas. The following members present to-wit:

Mayor Pro-Tem Edwards Councilmember Jim Fowler

Councilmember Grumpy Azzoz Councilmember Robin Thompson

Staff Present: City Manager John Kessel

Executive Director Brian James Executive Director Dudley Wait

Executive Director Bob Cantu City Attorney Charlie Zech

City Secretary Brenda Dennis

Mayor Carpenter was absent and out of town.

Councilmember John was absent attending an election event.

Call to Order – City Council Regular Session

Mayor Pro-Tem Edwards called the meeting to order at 6:00 p.m.

Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Pastor Garry Shelton, Church of God by Faith Spirit of Life)

Pastor Shelton provided the opening prayer followed by the pledges of allegiance to the flags of the

United States and the State of Texas.

Mayor Pro-Tem Edwards announced if there are students in the audience this evening participating in

the Hal Baldwin Scholarship to please be sure to sign in (The sign in sheet is at the back of the room).

City Events and Announcements

Announcements of upcoming City Events (B. James/D. Wait/B. Cantu)

The following announcements were made:

Thursday, March 3, Pre-Budget Community Meeting, Schertz United Methodist Church,

3460 FM 3009, 6:30 p.m.

Friday, March 4, Delightful Decors Ribbon Cutting, 17331 IH 35 N, #104, 2:00 p.m.

Saturday, March 5, 8th

Annual Wilenchik Walk for Life, Samuel Clemens High School

(rear) Parking Lot at 8:00 a.m.

Wednesday March 9, Pre-Budget Community Meeting, Sippel Elementary School, 420

Fairlawn, 6:30 p.m.

Thursday, March 10, Pre-Budget Community Meeting, Corbett Junior High School,

12000 Ray Corbett Drive, 6:30 p.m.

03-01-2016 Minutes Page - 2 -

Announcements and recognitions by City Manager (J. Kessel)

Mayor Pro-Tem Edwards recognized City Manager John Kessel who stated he wanted to

recognize one of our Fire Department staff members, Melissa Ashcraft, who has helped us get

reimbursements from the state. She was able to put together some very detailed information

and the most recent reimbursement back to the City was in the amount of $19,000. It makes a

big difference when she does this as part of her job duties and it is also an indication of our

fire personnel going to other communities and helping out around the state.

Mr. Kessel mentioned the upcoming Community Pre-Budget meetings that were announced

earlier by Mr. James. He stated that they are trying a few things different this year and

encouraged everyone to attend one.

Finally, Mr. Kessel wanted to bring Council’s attention to a document that is in the

‘Information Only’ part of the agenda packets that has to do with the Council’s compensation.

That document does show the actual dollar amounts that are being adjusted by the CPI; per

the ordinance it also has a form, which you would only need to fill out the form if you wanted

to not receive that additional small amount as adjusted. The form should be available to

everyone; let us know if we need to print them out.

New Employee Recognition

Fire Department – Fire Fighters: Zachary Lowry, Zachary Rolfing and Adam Boivin

Mayor Pro-Tem Edwards recognized Assistant Fire Chief Kade Long who introduced the

new members of the Fire Department Zachary Lowry, Zachary Rolfing and Adam Boivin

and their families, providing a brief biography of each new staffer. Mayor Pro-Tem

Edwards and Council welcomed the new members of the Fire Department.

Marshal Department – Animal Services Shelter Technician Ami Burkett

Mayor Pro-Tem Edwards recognized Animal Services Manager Shanna Roman who

introduced new Animal Shelter Technician Ami Burkett, providing a brief biography. Ms.

Roman and Ami stated that they wanted to make a lasting impression on the recent hire

and presented City Manager John Kessel with a kitten for which they would hold so that

he could adopt it after the meeting. This was also reminder that the Animal Services

conducts on-going adoption efforts for all animals.

Hearing of Residents

No one spoke.

Discussion and Action Items

1. Minutes - Consideration and/or action regarding the approval of the minutes of the Regular

Meeting of February 23, 2016. (J. Kessel/B. Dennis)

03-01-2016 Minutes Page - 3 -

Mayor Pro-Tem Edwards recognized Councilmember Thompson who moved, seconded by

Councilmember Fowler to approve the minutes of the Regular Meeting of February 23, 2016.

The vote was unanimous with Mayor Pro-Tem Edwards, Councilmembers Fowler,

Azzoz, and Thompson voting for and no one voting no. Councilmember John was

absent. Motion passed.

2. Resolution No. 16-R-19 – Consideration and/or action authorizing an Agreement to

contribute right of way funds (Fixed Price) with the Texas Department of Transportation for

the FM 1103 Improvement Project. (B. James/K. Woodlee)

The following was read into record:

RESOLUTION NO. 16-R-19

A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS,

AUTHORIZING AN AGREEMENT TO CONTRIBUTE RIGHT OF WAY FUNDS

(FIXED PRICE) WITH THE TEXAS DEPARTMENT OF TRANSPORTATION FOR

THE FM 1103 IMPROVEMENT PROJECT

Mayor Pro-Tem Edwards recognized City Engineer Kathy Woodlee who stated in early 2015

the Texas Department of Transportation (TxDOT) approached the City of Schertz about the

possibility of partnering with TxDOT to fund improvements to the segment of FM 1103

within the City Limits of Schertz. The improvements are expected to include expansion from

2 lanes to 4 lanes with medians, turn lanes, sidewalks, and bike lanes. It was determined that

participation by the City of Schertz in the amount of $2 million would be appropriate.

The City’s Bond Committee, formally seated by Council on April 7, 2015, considered and

ultimately recommended a voter proposition to determine whether the Council should issue

general obligation bonds for the purpose of contributing to public improvements on FM 1103.

The bond measure passed the November 3, 2015, election with over 91% voter support.

In accordance with TxDOT funding procedures, allocation of the $2 million will be made as

follows: the City is responsible for 10% of the cost of the right of way and reimbursable

utility relocations located within the city limits – currently estimated to be $181,225.69. The

balance of the City’s $2 million contribution will go toward construction of the

improvements.

In order to formalize the arrangement with TxDOT, the City must enter into an Agreement to

Contribute Right of Way Funds (Fixed Price) with TxDOT Construction of Improvements to

FM 1103 and provide payment to TXDoT in the amount of $181,225.69 so that right of way

acquisition offers can proceed. (The remaining funds will be obligated to TxDOT through a

separate agreement.)

The agreement with TxDOT to establish a partnership with TxDOT on the improvements to

FM 1103 supports the City’s policy values of a Safe City with strong Essential Services, and

is also contributes to Fiscal Sustainability by leveraging City funds of $2 million dollars for

the project. Improvements to FM 1103 within the City of Schertz will provide a significant

improvement to travel safety and ease along an arterial roadway segment through which more

than 20,000 vehicle trips per day take place currently.

03-01-2016 Minutes Page - 4 -

Under the terms of the Fixed Price Agreement, the City of Schertz is required to pay

$181,225.69. The source of the funding is revenue from bonds issued based on the November

2015 Proposition 1.. Staff recommends approval. Ms. Woodlee addressed questions from

Council

Mayor Pro-Tem Edwards recognized Councilmember Azzoz who moved, seconded by

Councilmember Thompson to approve Resolution No. 16-R-19. The vote was unanimous

with Mayor Pro-Tem Edwards, Councilmembers Fowler, Azzoz, and Thompson voting

for and no one voting no. Councilmember John was absent. Motion passed.

3. Resolution No. 16-R-20 – Consideration and/or action authorizing an Advance Funding

Agreement with the Texas Department of Transportation for Voluntary Local Government

Contributions to Transportation Improvement Projects with no required match for FM 1103.

(B. James/K. Woodlee)




AUTHORIZING AN ADVANCE FUNDING AGREEMENT WITH THE TEXAS

DEPARTMENT OF TRANSPORTATION FOR VOLUNTARY LOCAL

GOVERNMENT CONTRIBUTIONS TO TRANSPORTATION IMPROVEMENT

PROJECTS WITH NO REQUIRED MATCH FOR FM 1103

Mayor Carpenter recognized City Engineer Kathy Woodlee who stated in early 2015 the

Texas Department of Transportation (TxDOT) approached the City of Schertz about the

possibility of partnering with TxDOT to fund improvements to the segment of FM 1103

within the City Limits of Schertz. The improvements are expected to include expansion from

2 lanes to 4 lanes with medians, turn lanes, sidewalks, and bike lanes. It was determined that

participation by the City of Schertz in the amount of $2 million would be appropriate.

The City’s Bond Committee, formally seated by Council on April 7, 2015, considered and

ultimately recommended a voter proposition to determine whether the Council should issue

general obligation bonds for the purpose of contributing to public improvements on FM 1103.

The bond measure passed the November 3, 2015, election with over 91% voter support.

In accordance with TxDOT funding procedures, allocation of the $2 million will be made as

follows: the City is responsible for 10% of the cost of the right of way and reimbursable

utility relocations located within the city limits. The balance of the City’s $2 million

contribution ($1,818,774) will go toward construction of the improvements.

In order to formalize the arrangement with TxDOT, the City must enter into an Advance

Funding Agreement with TxDOT for Voluntary Local Government Contributions to

Transportation Improvement Projects with No Required Match and provide payment to

TXDOT in the amount of $1,818,774 60 days prior to TxDOT’s letting of the project for

construction. (The City’s contribution of funds for right of way acquisition will be obligated

to TxDOT through a separate agreement.)

03-01-2016 Minutes Page - 5 -

The agreement with TxDOT to establish a partnership in the improvements to FM 1103

supports the City’s policy values of a Safe City with strong Essential Services, and also

contributes to Fiscal Sustainability by leveraging City funds of $2 million dollars for the

project. Improvements to FM 1103 within the City of Schertz will provide a significant

improvement to travel safety and ease along an arterial roadway segment through which more

than 20,000 vehicle trips per day take place currently.

Under the terms of the Advance Funding Agreement, the City of Schertz is required to pay

$1,818,774. The source of the funding is revenue from bonds issued based on the November

2015 Proposition 1. Staff recommends approval. Ms. Woodlee addressed questions from

Council

Mayor Pro-Tem Edwards moved to approve Resolution No. 16-R-20, seconded by

Councilmember Azzoz. The vote was unanimous with Mayor Pro-Tem Edwards,

Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no.

Councilmember John was absent. Motion passed.

4. Resolution No. 16-R-21 – Consideration and/or action authorizing contracts totaling no more

than $90,000 with Advanced Water Well Technologies for labor and related materials for

various separate and unrelated water pump repair projects during the 2015-16 Fiscal year. (D.

Wait/S. Willoughby/C. Raleigh)



A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS

AUTHORIZING CONTRACTS TOTALING NO MORE THAN $90,000 WITH

ADVANCED WATER WELL TECHNOLOGIES FOR LABOR AND RELATED

MATERIALS FOR VARIOUS SEPARATE AND UNRELATED WATER PUMP

REPAIR PROJECTS DURING THE 2015-16 FISCAL YEAR AND OTHER

MATTERS IN CONNECTION THEREWITH

Mayor Carpenter recognized Project Manager Cindy Raleigh who stated the City’s water

system utilizes 15 water pumps that move potable water around the City. These pumps are

essential to maintaining water service for drinking water, firefighting, industrial use, and

irrigation use around the City, particularly during peak demand times. From time to time,

these pumps fail and need repair. Typically, this is an urgent repair that would require the

City to contact repair vendors and select one to perform the work based on their availability

and experience.

Traditionally, pump failures are rare; however, due to age and wear and tear, we have been

experiencing higher than anticipated failures both this year and last year. We have had two

failures this fiscal year. The first failure in December resulted in repairs of approximately

$32,000. The second failure that occurred in February is estimated to be $25,000 to repair.

These repairs require a complete tear down and rebuild to put the pump back in service. The

first repair was performed by Advanced Water Well Technologies. They are available to do

the second repair and are the preferred vendor due to their knowledge of our system and

03-01-2016 Minutes Page - 6 -

history of repair work. The total of both of these repairs will exceed $50,000 so staff is

seeking Council approval of this second repair prior to commencing with the work in

accordance with City Purchasing Policy.

Staff is seeking an additional buffer amount with Advanced Water Well Technologies in case

of additional pump failures which often occur during the peak water use season which is

upcoming. A Request for Proposal has been released to establish an “on-call” vender for

pump repairs. This buffer amount is estimated to cover one average pump repair with a total

not to exceed for the fiscal year of $90,000 or approximately $33,000 after completion of this

second repair.

Costs associated with utilizing Advanced Water Well Technologies for repair projects will be

paid for with current budgeted funds. Staff recommends that Council authorize the City

Manager to approve and execute contracts with Advanced Water Well Technologies, during

the remainder of the 2015-16 Fiscal Year for total expenditures not to exceed $90,000. Ms.

Raleigh addressed questions from Council

Mayor Pro-Tem Edwards recognized Councilmember Azzoz who moved, seconded by




5. Resolution No. 16-R-22 – Consideration and/or action authorizing a Professional Services

Agreement with IDS Engineering Group, Inc., relating to a Pavement Condition Analysis of

City Streets. (B. James/K. Woodlee/C. Palomo)




AUTHORIZING A PROFESSIONAL SERVICES AGREEMENT WITH IDS

ENGINEERING GROUP, INC., RELATING TO A PAVEMENT CONDITION

ANALYSIS OF CITY STREETS, AND OTHER MATTERS IN CONNECTION

THEREWITH

Mayor Pro-Tem Edwards recognized Graduate Engineer Cecilia Palomo who stated a

pavement condition analysis of the City’s network of streets was completed in 2009. Industry

standards suggest this study should be performed every three years. This pavement rating

system assists in identifying and ranking the quality of roads maintained by the City, and

provides input for the scheduling of repair or maintenance. The ratings of serviceability of

pavement and riding comfort also enables the Public Works Department to budget for,

schedule and initiate maintenance or rehabilitation of roads in a more cost effective manner.

The primary goal of this project is to establish a priority ranking of roads based on condition

that will be used to identify projects that will be funded by upcoming street bond issuance.

All of the City’s streets, approximately 150 centerline miles of roadway within the City limits

will be analyzed to establish Pavement Condition Indices (PCIs). Data will be entered and

processed using MicroPAVER, a pavement management system software. The PCI number is

03-01-2016 Minutes Page - 7 -

generated on a scale of 1-100, 100 being the best quality road achievable. Some of the

categories that factor into the PCI number system are: skid resistance, surface distress,

roughness, fatigue, deformation, and excessive loading.

The Public Works and Engineering Departments have worked together to qualify IDS

Engineering Group, Inc., (IDS) based on their experience, quality of work, willingness and

availability to work closely with City Staff for the purpose of training and utilizing

MicroPAVER rating software to the fullest extent. Per the Texas Local Government Code, the

City is not required to seek bids or proposals to procure professional services and it further

prohibits the City from selecting a firm based on competitive bids. Rather awards are based on

demonstrated competence and qualifications and for a fair and reasonable price. The City’s

Engineering and Public Works Staff talked with a number of different firms, including the

City’s on call engineering firms before recommending we work with IDS.

The goal is to develop a quantitative method for prioritizing street maintenance and repair

priorities. The results of this study will also provide the City with methodology to prioritize

streets to optimize spending and budgeting for bond-funded improvement construction and

future maintenance and repair projects while providing training and technical software

support. This project will indirectly support all of the City Policy Values. Objective

identification of roadway conditions is the first step toward the preservation and maintenance

of City streets to provide access to jobs, homes, schools, and shopping while attracting

potential businesses and future residents.

Pavement Management Services of $86,350 will be paid for from remaining 2009 Street Bond

Funds. Staff recommends Council authorize approval of a Professional Services Agreement

with IDS Engineering Group, Inc., to provide a pavement condition analysis with

recommended priority projects, repair and maintenance recommendations, and staff training. Ms. Palomo addressed questions from Council.

Mayor Pro-Tem Edwards recognized Councilmember Fowler who moved, seconded by




Roll Call Vote Confirmation

Mayor Pro-Tem Edwards recognized City Secretary Brenda Dennis who provided the roll call votes

for agenda items 1-5.

Requests and Announcements

6. Announcements by City Manager

Citizen Kudos

Recognition of City employee actions

New Departmental initiatives

No further announcements were provided.

03-01-2016 Minutes Page - 8 -

7. Future Agenda Item Request for City Council: This is an opportunity for City Council

members to request that items be placed on a future agenda. No discussion of the merits of

the item may be taken at this time. Should a Council Member oppose placement of the

requested item on a future agenda, the Mayor, without allowing discussion, shall ask for the

consensus of the other City Council members to place or not place the item on a future

agenda.

No items were requested.

8. 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

Mayor Pro-Tem Edwards recognized Councilmember Fowler who mentioned a great event

coming up on April 23rd

and April 24th

which is a combined effort between the City and the

multiple churches in the area. They are also working with the Chamber of Commerce and the

Hyper Group. He stated that they are looking at cleaning up the area of Aviation Heights,

which has recently been declared as a Historical area. Councilmember Fowler stated that on

Monday the ‘Love where you Live’ group had a meeting and that the next meeting is Monday

March 14, 2016. He stated that things are moving along and they are looking for volunteers

who are willing to help. Councilmember Fowler mentioned that the Methodist Church has a

program called “Faith in Action” which is a part of this group but their participation would be

done on Sunday, 8:00 a.m. to about 4:00 p.m. He stated that the Church as offered to provide

supper at Pickrell Park to all the volunteers on both days after the event. He wanted to let

everyone know that we do have a City where everyone works together and he is looking

forward to this event.

Mayor Pro-Tem Edwards recognized Councilmember Azzoz who reminded everyone there is

just 20 minutes left to exercise your right to go vote.

Mayor Pro-Tem Edwards recognized Councilmember Thompson who stated that he wanted to

commend Councilmember Fowler for his efforts on the ‘Love Where you Live’ project.

Councilmember Thompson also stated that he attended the Soccer Complex grand opening

and he was very impressed and that having the president of the US Soccer Association in

attendance was also very impressive.

Mayor Pro-Tem Edwards stated that this weekend he also attended the grand opening of the

Soccer Complex. He said it was well worth the wait and commented on how great the facility

was.

03-01-2016 Minutes Page - 9 -

9. Information available in City Council Packets - NO DISCUSSION TO OCCUR

Council Compensation. (B. Cantu/J. Walters)

Adjournment

Mayor Pro-Tem Edwards adjourned the meeting at 6:34 p.m.

________________________________

Cedric Edwards, Mayor Pro-Tem

ATTEST:

__________________________________

Brenda Dennis, City Secretary

Agenda No. 2

CITY COUNCIL MEMORANDUM City Council Meeting: March 8, 2016 Department: City Manager Subject: Resolution No. 16-R-23 - APPOINTING

MEMBERS TO THE ALAMO AREA COUNCIL OF GOVERNMENTS REGIONAL EMERGENCY PREPARDNESS ADVISORY COMMITTEE (REPAC)

BACKGROUND The Alamo Area Council of Governments (AACOG) was established in 1967 under Chapter 391 of the Local Government Code as a voluntary association of local governments and organizations that serves its members through planning, information, and coordination activities. AACOG serves the Alamo Area/State Planning Region 18, which covers 13 counties and 12,582 square miles. Counties comprising the area planning region are Atascosa, Bandera, Bexar, Comal, Frio, Gillespie, Guadalupe, Karnes, Kendall, Kerr, Medina, McMullen, and Wilson counties. AACOG’s mission is to enhance the quality of life of all residents of the Alamo Region in partnership with elected and appointed officials, funders, community partners and beneficiaries. AACOG has several standing and advisory committees and one of the committees is their Regional Emergency Preparedness Advisory Committee (REPAC). REPAC establishes and updates the regional priorities of funding for projects applying for the State Homeland Security Grant funds. The priorities will be based upon state guidelines and regional planning assessments conducted by the REPAC. The City has an opportunity to place a member onto REPAC as a voting member giving us a voice in how these funding and policy decisions are made going forward. FISCAL IMPACT None RECOMMENDATION Staff recommends Council appoint Assistant Fire Chief, Kade Long, as the City’s representative to serve on REPAC, and appoint Police Lieutenant, John Correu, as first alternate, and EMS Operations Manager, Toni Bradford, as second alternate.

City Council Memorandum Page 2

ATTACHMENTS Resolution No. 16-R-23 Mayor’s Letter requesting voting seat


A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPOINTING MEMBERS TO THE ALAMO AREA COUNCIL OF GOVERNMENTS REGIONAL EMERGENCY PREPAREDNESS ADVISORY COMMITTEE AND OTHER MATTERS IN CONNECTION THEREWITH

WHEREAS, Membership in AACOG is open to all governmental units in the 13-county Alamo area planning region. A governmental unit is any county, city, town, village, authority, district, or other political subdivision of the State of Texas.

WHEREAS, ACCOG members are allowed to appoint a representative to the Regional Emergency Preparedness Advisory Council (REPAC); and

WHEREAS, REPAC members meet monthly to review, draft, and approve regional emergency strategic plans, Threat, Hazard Identification Risk Assessments (THIRA), and the State Preparedness Report; and

WHEREAS, REPAC members meet annually to set regional homeland security priorities of funding for projects applying for the State Homeland Security Program (SHSP) grant; and

WHEREAS, the City staff of the City of Schertz (the “City”) has recommended that the City of Schertz have representation on the Regional Emergency Preparedness Advisory Committee by appointing members of the Fire, Police and EMS Departments; and

WHEREAS, the City Council has determined that it is in the best interest of the City to appoint Assistant Fire Chief, Kade Long, as the City’s representative to serve on REPAC, Police Lieutenant, John Correu, as first alternate, and EMS Operations Manager, Toni Bradford, as second alternate member.

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT:

Section 1. The City Council hereby authorizes the appointments of Assistant Fire Chief, Kade Long, as the City’s representative to serve on REPAC, Police Lieutenant, John Correu, as first alternate, and EMS Operations Manager, Toni Bradford, as second alternate to the Regional Emergency Preparedness Advisory Committee.

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.

- 2 -

Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America.

Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision.

Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended.

Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved.

PASSED AND ADOPTED, this 8th day of March, 2016.

CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor

ATTEST: City Secretary, Brenda Dennis

(CITY SEAL)

Agenda No. 3

CITY COUNCIL MEMORANDUM

City Council Meeting: March 8, 2015

Department: Police

Subject: Resolution 16-R-24 - Amendment to Interlocal Agreement with Cibolo for Dispatch Services

BACKGROUND

The City entered into an interlocal agreement (ILA) with the City of Cibolo for public safety/law enforcement dispatch services on October 1, 2010. Under this agreement, the City furnishes all dispatch services for all calls received requesting City of Cibolo public safety services. The City furnishes all capital equipment and facilities necessary to render dispatch services, including all prerequisite governmental licenses, permits, and personnel, except that the City of Cibolo is responsible for obtaining and providing mobile and portable radios capable of operating on the City of Schertz's radio frequency.

The agreement was amended on July 7, 2015, to allow the City of Cibolo to place equipment on the City’s radio tower. This equipment served to improve connectivity allowing for enhanced public safety response.

Both Cities desire to further amend the agreement to more clearly define the services and processes provided for under this agreement. A summary of the changes are outlined below:

1. Creation of a joint advisory board to include the Police and Fire Chiefs of each participating municipality for the purpose of meeting periodically to make non-binding recommendations for the operation and training within the communication center.

2. Ownership of records and data maintained by the City of Schertz on behalf of the City of Cibolo shall remain the property of the City of Cibolo.

3. Upon receipt of written authorization, the City of Cibolo may place equipment necessary to obtain access to Dispatch Service and station altering. Cibolo shall be responsible for maintenance and repair of equipment placed on the City of Schertz property.

4. Cibolo and Schertz agree to :

A. Contact their respective IT Departments for support

B. Work cooperatively to ensure timely resolution of issues.

C. Maintain equipment in a manner which will ensure delivery and ability to receive

dispatch services

D. Provide at least three (3) days advance notice of maintenance or other activities which will result in outages as well as develop plans to address said outages.

E. Ensure security and protection of each agencies networks and to advise one another of any breaches to their networks.

F. No agency will have access to one another’s networks except to provide the necessary service contained in the ILA.

G. Each agency will assume their own risk and liability for any connection to the network.

H. Establish protocols to ensure dispatch services will continue in the event that connectivity is lost.

I. In the event of the termination of the contract, Schertz will allow Cibolo access to the data/media for as long as necessary.

1) To comply with the Texas Open Records Act.

2) Cibolo will be responsible for any cost related to converting or cleansing data contained within the SQL data base.

5. Both parties agree to meet directly on May 31st of each calendar year to evaluate the sufficiency of payments for future Dispatch Services.

A. Should the workload volume increase to the point that extra staff is needed, Schertz may, after consultation with Cibolo, increase the quarter fees.

B. Notifications of such increases will be made to Cibolo, in writing, at least ninety (90) days prior to the effective day of the increase.

No other changes will be made to the agreement.

COMMUNITY BENEFIT

It is the City’s desire to partner with the City of Cibolo to foster excellence in providing high-quality public safety dispatch services to Schertz and surrounding communities. This amendment will enable the City to provide enhanced services to Cibolo, resulting in more effective and efficient law enforcement dispatch.

SUMMARY OF RECOMMENDED ACTION

Staff recommends Council approve Resolution 16-R-24 to amend the interlocal agreement with the City of Cibolo for dispatch services, to more clearly define the services and processes under the agreement.

FISCAL IMPACT

There is no anticipated fiscal impact for approval of the Resolution.

ATTACHMENT(S)

Resolution No. 16-R-24

Exhibit A: Second Amendment to Interlocal Agreement for Dispatch Services


A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN AMENDMENT OF AN INTERLOCAL AGREEMENT FOR DISPATCH SERVICES WITH THE CITY OF CIBOLO, TEXAS, AND OTHER MATTERS IN CONNECTION THEREWITH

WHEREAS, by Resolution Number 10-R-49, the City Council (the “City Council”) of the City of Schertz (the “City”) approved an Interlocal Agreement for Dispatch Services (“Agreement”) with the City of Cibolo, Texas (“Cibolo”), permitting Cibolo to utilize public safety and law enforcement dispatch services of the City; and

WHEREAS, by Resolution Number 15-R-54, the City Council approved an amendment to the Agreement to allow additional equipment on City radio towers to improve connectivity; and

WHEREAS, it is of benefit to both parties to further expand and clearly define the services and processes agreed to under this Agreement; and

WHEREAS, the City of Schertz and the City of Cibolo desire to amend the Agreement on the terms and conditions attached herein in Exhibit A, as it will allow for enhanced public safety response; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT:

Section 1. The City Council hereby authorizes the City Manager to execute and deliver the amendment to the Agreement in substantially the form set forth on Exhibit A.

Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council.

Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein.

Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America.

Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision.

Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended.

Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved.

PASSED AND ADOPTED, this 8th day of March, 2016.

CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor

ATTEST: Brenda Dennis, City Secretary

(CITY SEAL)

EXHIBIT A

SECOND AMENDMENT TO INTER-LOCAL AGREEMENT FOR DISPATCH SERVICES

INTERLOCAL CONTRACT FOR DISPATCH SERVICES

SECOND AMENDMENT TO INTER-LOCAL AGREEMENT FOR DISPATCH SERVICES

THIS SECOND AMENDMENT TO INTER-LOCAL AGREEMENT FOR DISPATCH

SERVICES (the “First Amendment”) is entered into this ____ day of ______________, 2016

(“Effective Date”), by and between the CITY OF SCHERTZ (Schertz) and the CITY OF

CIBOLO (Cibolo).

RECITALS

WHEREAS, the City of Schertz and the City of Cibolo previously entered into an inter-

local agreement to provide dispatch services (the “Agreement”); and

WHEREAS, it is of benefit to both parties to expand and clearly define the services and

processes agreed to under this agreement; and

WHEREAS, the City of Schertz and the City of Cibolo desire to amend the Agreement

on the terms and conditions contained herein.

NOW THEREFORE; the City of Schertz and City of Cibolo covenant and agree that, for the consideration hereinafter expressed, the City of Schertz shall supply the City of Cibolo, and the City of Cibolo shall continue to purchase from the City of Schertz, for the period ending September 30, 2016, the following dispatch services:

ARTICLE I – PUBLIC SAFETY DISPATCH SERVICES

A. Dispatch Services: Schertz, through its dispatch center, (“Dispatch Center”), agrees to dispatch Cibolo Police Department and Fire Department, on a twenty-four (24) hour basis, to authorized personnel of the Cibolo Police Department and the Cibolo Fire Department and other public safety resources (such as animal control and public works) generally with regard to emergency and non-emergency incidents, and with communication support and services/systems directly related to the dispatch function (“Dispatch Services”). Dispatch Services include but are not limited to the following: dispatching of Cibolo police, fire, and service resources on emergency and non-emergency incidents, tracking and documenting the activity of Schertz personnel providing dispatch services to Cibolo on incidents, providing communication support on incidents, providing routine call information data, access to data, and fire station alerting system.

The Dispatch Services including processing of calls, to be made available and provided to Cibolo shall be equivalent to those Dispatch Services that are provided to the City of Schertz, and any other entity to which services may be provided.

B. Dispatch Services Equipment: Scher tz shall furnish all capital equipment and facilities necessary to provide the Dispatch Services to Cibolo, including but not limited to all initial base station radio equipment, furniture, consoles and telephone equipment directly related to dispatch functions, and shall routinely maintain such equipment in a reasonable manner. All decisions relating to the provision, maintenance, upgrading, and replacement of such equipment are and shall remain within the sole discretion of Schertz. However, the parties agree that notice of major capital expenditures which may impact Cibolo shall be provided one hundred eighty (180) days prior to implementation.

Cibolo shall provide all equipment necessary to receive the Dispatch Services in the field provided by Schertz, including portable radios, mobile radios, mobile data computers , in-car radio equipment, and any other communications equipment, and shall maintain and replace such equipment in a manner that ensures compatibility with Schertz’s provision of Dispatch Services. Cibolo agrees to update and/or replace all equipment necessary to receive the Dispatch Services provided by Schertz as may be necessary to ensure the provision of Dispatch Services.

Cibolo acknowledges that Schertz in the future may incur additional costs in upgrading, repairing, and replacing equipment necessary to provide the Dispatch Services for the benefit of Cibolo a nd other e n t i t i e s . Cibolo and Schertz agree to negotiate, in good faith, their respective responsibility for any such costs for the benefit of Cibolo.

Cibolo shall be solely responsible to individually pay for its own user fees for services such as subscriber fees for radio network access or airtime for devices to connect/access data services which are provided.

C. Personnel: Schertz shall provide all personnel necessary to provide Dispatch

Services to Cibolo. All staffing issues, including the number of dispatchers working at any given time, shall be determined by Schertz. Schertz shall be solely responsible for the management of all Dispatch Center personnel and all personnel-related issues are within the sole management discretion of Schertz. Schertz agrees to conduct an annual analysis of Dispatch Services and to increase the total number of dispatchers employed by Schertz as necessary within its discretion to handle the increased volume of dispatch activity generated as a result of this Agreement.

D. Operating Procedures/Operations: Control of operating procedures and operations for the dispatch center shall generally rest within the sole discretion of Schertz. However, Schertz agrees to undertake consultations in advance with Cibolo regarding any proposed material changes in operating procedures or policies, through a joint advisory board composed of the Police and Fire Chiefs or their designees from both contracting communities as well as the EMS Director of the City of Schertz. The board shall be established to meet periodically and make non-binding recommendations to Schertz concerning such operating procedures or policies, including but not limited to review, revisions and recommended changes concerning training standards and requirements; standard operating guidelines, policies and procedures; and purchasing and replacement of technical equipment to enhance operations and public safety. The advisory board will also receive input from the respective Information Technology Departments in regards to network security, access list or other compliance issues such as CJIS as it relates to this agreement. Supervision and management over dispatch personnel shall lie solely with Schertz. Notwithstanding the above, nothing undertaken by Schertz in connection with its operation of the dispatch center shall materially interfere with the standard operating procedures, response protocols, or other internal operations of Dispatch Services provided to Cibolo. Cibolo and Schertz further agree that if a complaint arises about the services provided, such complaint will be resolved according to the following procedures:

1. The Police or Fire Chief of Cibolo or their designee shall file a written

complaint with the Police Chief of Schertz. 2. The Police Chief of Schertz or his designee shall investigate the complaint

and take corrective action if necessary. The results of that investigation shall be brought to the attention of the individual who initiated the complaint.

3. If the Police or Fire Chief of Cibolo or the individual who initiated the

complaint is not satisfied with the action taken, he may bring the complaint to the attention of the City Manager of Cibolo or his designee.

4. The Police or Fire Chief of Cibolo or his designee shall then raise the

complaint with the City Manager of Schertz or his designee. 5. The same procedure will be followed if Schertz has a complaint about any

Cibolo employee who is a user of the services provided under this agreement.

E . Ownership of Records and Data: All records maintained by Schertz on behalf of Cibolo related to calls dispatched, including electronically stored data, computer aided dispatch ("CAD") data, and audio recordings, shall be owned by Cibolo. Cibolo shall have access to all data and audio recordings specific to Cibolo, but maintained by Schertz for use in internal analysis and investigations. Schertz agrees that as part of the dispatch services being rendered to Cibolo, Schertz will make available the use of the Computer Aided Dispatching System and associated data, including the reporting server, commonly referred to as CAD, and that Cibolo will be a Sub-Agency within the system. Cibolo will be responsible for obtaining and providing the necessary computers capable of operating on this system as well as other infrastructure necessary for accessing the system including CJIS compliance. Schertz agrees that upon obtaining written authorization, Cibolo may place equipment necessary to obtain access to Dispatch services, data and station alerting as contemplated under this agreement upon Schertz radio towers (the “placed equipment”). Cibolo agrees to include Schertz as an additional insured party in any contract for installing placed equipment or maintenance at a level approved in writing by Schertz. Cibolo shall responsible for the maintenance and repair of the placed equipment. Cibolo shall otherwise be responsible for any damage to Schertz owned property or disruption to service caused by any placement, maintenance or repair of the placed equipment. It is agreed that Cibolo and Schertz will: 1. Contact their respective Information Technology Departments for support. 2. The Information Technology Department of both cities will work together to

ensure timely resolution of issues. 3. Maintain equipment installed in or upon their respective facilities including

upgrades, repairs and replacements as necessary to ensure the ability to deliver and receive dispatch services.

4. Provide notification at least three (3) days in advance of schedule maintenance or other activities which may cause an outage and ensure timely notifications are made when emergency or unplanned outages occur.

5. Ensure the security and protection of network resources through the installation and configuration of appropriate security devices and software and to maintain Criminal Justice Information Systems (CJIS) security requirements on all devices connected to the network receiving services.

6. No party will have access to each other’s network, except for services which are included in this agreement and to which the user has been granted the appropriate permissions and access.

7. Notify the other party immediately of any network breaches or malicious activities as required by CJIS (Computer Incident Response &Virus Infection)

8. Schertz and Cibolo will assume their own risk for any connectivity of networks and will not assume any liability for the other party for any loss or lack of service which may occur as a result of loss of connectivity due to system failure.

9. Schertz and Cibolo will establish protocols to ensure that dispatch services and emergency response will continue in the event of a loss of network connectivity.

10. In the event of termination of this contract, Schertz will continue to allow Cibolo access to data/media for as long as necessary to ensure compliance with the Texas Open Records Act and Records Retention Requirements and will allow the data to be exported for the future needs of Cibolo. Cibolo will be responsible for any cost of converting and/or cleansing the data contained within the SQL data base to include only data belonging to Cibolo.

F. Payment for Dispatch Services: In consideration of Schertz providing the

dispatch services enumerated above, Cibolo shall pay to Schertz a sum of $160,000.00 payable in four (4) equal quarterly installments of $40,000.00, upon the receipt of a quarterly invoice, payable on the first day of each fiscal quarter beginning October 1, 2015 for the continued operation of dispatch services. The parties agree to meet directly and/or through the Advisory Board by May 31st of each calendar year, or such other date as is mutually agreeable, to evaluate the sufficiency of payments for future Dispatch Services and to discuss in good faith any proposed changes whether increases or decreases in user fees based on an operational cost analysis to include evaluation of costs distribution, changes in workloads, equipment replacement, economies of scale and labor costs as well as any costs for connectivity to other agencies to provide services under this agreement. Any costs for additional services will be provided in writing and will be included on the quarterly invoices and payments made as outlined above. In any event, if workload volume directly related to Cibolo increases to a point that additional staffing becomes necessary, Schertz may within its sole discretion, but after consultation with Cibolo, increase quarterly fees, and if announced by July 31st for the following calendar year. Notwithstanding, the parties further agree that the foregoing quarterly payments shall increase, as necessary, to cover any additional expenses, including wage increases, health insurance increases, and other personnel-related costs, associated with Schertz’s cost of employing the additional dispatch personnel necessary to provide Dispatch Services to Cibolo. Schertz shall notify Cibolo, in writing, of any such additional expenses at least ninety (90) days prior to the effective date of any increase in payment to Schertz for dispatch services.

G. No Obligation to Respond/No Liability: This Agreement is not intended to

and shall not be construed to require Schertz to respond beyond the dispatch function to calls or incidents whether of a law enforcement or fire basis, nor to otherwise provide law enforcement services for events that occur in Cibolo.

In this regard, Schertz shall have no liability or responsibility for the actions, errors, omissions or negligence of the Cibolo Police or Fire Departments or service personnel in responding to any dispatch calls taken through the Dispatch Center. And Cibolo shall maintain proper levels of insurance in this regard. Notwithstanding this provision, Schertz may render assistance in accordance with Texas law, any current mutual aid agreements, and/or any current agreements for dispatch services.

ARTICLE II –

TERM/TERMINATION

This Agreement shall remain in effect for an initial term of one (1) year, but will renew automatically from year to year unless terminated upon six (6) months advance written notice by either party terminating the Agreement, with or without cause for any reason or no reason.

ARTICLE IV – PUBLIC RECORDS

The parties agree and acknowledge that records created pursuant to this Agreement may be public records under the Texas Public Information Act and agree to coordinate with each other, in a timely manner, on responses to public records requests and with regard to determination of records schedules retention periods and times for destruction. Notwithstanding this provision, the parties agree that nothing in this Article shall be construed as limiting a party from responding to a public records request in accordance with Texas law. Schertz agrees that prior to the release of information it will notify Cibolo in writing of such requests made for records. Cibolo agrees that if an exception exists which limits the release of such information; Cibolo will respond timely and initiate the appropriate legal process to prevent the release of such information. Processes will be established to enable Cibolo to obtain access to its recordings of radio and telephone traffic and any other information contained in the data systems maintained by Schertz related to Dispatch Services provided to Cibolo.

ARTICLE VII – MISCELLANEOUS PROVISIONS

A. Entire Agreement: This Agreement represents the entire and integrated

agreement between Schertz and Cibolo concerning the within subject, and supersedes all prior negotiations, representations or agreements, either written or oral.

B. Modification of Contract: It is understood and agreed that this Agreement may not be changed, modified, or altered except by an instrument, in writing, signed by both parties and duly approved and authorized by each party’s legislative authority in accordance with the laws of the State of Texas and of each individual party.

C. Assignment of Contract: Neither party shall assign, delegate, or subcontract

any portion of the Dispatch Services without prior written express approval of the other party.

D. Severability: If any provision of this Agreement, or any covenant, obligation or agreement contained here is determined by a court of competent jurisdiction to be invalid or unenforceable, such determination shall not affect any other provision, covenant, obligation or agreement, each of which shall be construed and enforced as if such invalid or unenforceable provision were not contained herein. Such invalidity or unenforceability shall not affect any valid and enforceable application thereof, and each such provision, covenant, obligation or agreement, shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law.

IN WITNESS WHEREOF, the parties have executed this AGREEMENT as of the day of , 2016.

This Second Amendment is executed by as of the date first written above.

CITY OF SCHERTZ: By: Print Name: Title:

CITY OF CIBOLO:

By: Print Name: Title:

Agenda No. 7

MEMORANDUM


Department: Economic Development

Subject: The Capital Group Inc. 2015 tax reimbursement according to the Development Agreement

BACKGROUND

History: In August 2010, the City Council approved a Development Agreement among the City of Schertz, Texas, the City of Schertz Economic Development Corporation, and The Capital Group Companies, Inc. (“Capital Group”) (the “Agreement”). The Agreement established a performance-based tax incentive for the development of a data center facility. In consideration Capital Group would be eligible to receive an annual reimbursement of 75% of the taxable real and personal property of a period of eight years.

On January 20, 2016, Capital Group reported its compliance to the Agreement for the 2015 tax year. In accordance to the Agreement Capital Group has:

Constructed a 50,000 square foot data center costing approximately $35 million.

Employed at least 2 full-time employees with an average annual payroll of approximately $150,000.

Capital Group has paid all real and personal property taxes for the 2015 tax year. A copy of the 2015 tax receipts have been attached.

FISCAL IMPACT

Capital Group’s 2015 total real and personal property tax value was $23,887,603 (real property $12,429,222 + personal property $11,458,381). According to the Agreement, Capital Group will receive $89,984.01 which is a 75% tax reimbursement for their real and personal property. The methodology for the reimbursement is noted below:

(Total tax value * 2015 Schertz tax rate)/100) = total taxes paid * 75% = Capital Group’s 2015 tax reimbursement

($23,887,603 * 0.4911%) / 100 = $117,312.02 * 75% = $87,984.01

STAFF RECOMMENDATION

Staff has evaluated the Agreement and found that Capital Group is compliant for the 2015 tax year. Staff recommends that the City Council authorize the reimbursement in accordance with the Agreement.

ATTACHMENT(S)

Capital Group Statement of Taxes Paid - Office of Tavie Murphy Tax Assessor - Collector (Property ID: 1G3383-6A09-00300-0-00 and Property ID: 1G3383-6A09-00300-3-12).

Agenda No. 7

MEMORANDUM


Department: Economic Development

Subject: Caterpillar’s 2015 tax reimbursement according to the Development Agreement and 2014 and 2013 inventory tax payment reimbursement.

BACKGROUND

History: In October 2010, the City Council approved a Development Agreement among the City of Schertz, Texas, the City of Schertz Economic Development Corporation, and Caterpillar, Inc. (“Caterpillar”) (the “Agreement”). The Agreement established a performance-based tax incentive for Caterpillar’s multi-phased manufacturing facility. In consideration Caterpillar would be eligible to receive an annual reimbursement of 75% of all taxable personal property for a period of eight years.

On February 15, 2016, Caterpillar reported its compliance to the Agreement for the 2015 tax year. In accordance to the Agreement Caterpillar has:

Constructed at least 400,000 square feet in connection with phase 1 and 2

Employed at least 80 full-time employees with a minimum monthly payroll of $300,000.

Caterpillar has paid all real and personal property taxes for the 2015 tax year. A copy of the 2015 personal property tax receipts have been attached.

During our annual review, staff discovered that Caterpillar had not received the 2013 and 2014 tax reimbursement for their taxable inventory. Inventory is classified as personal property and as such Caterpillar qualifies to receive this reimbursement.

FISCAL IMPACT

Caterpillar’s 2015 total personal property tax value was $115,968,280 (machinery and equipment $113,975,800 + computer and supplies $1,934,820 + inventory $57,660). According to the Agreement, Caterpillar will receive $427,140.17 which is a 75% tax reimbursement for their taxable personal property. The methodology for the reimbursement is noted below:

(Total tax value * 2015 Schertz tax rate)/100 = total taxes paid * 75% = Caterpillar’s 2015 tax reimbursement

($115,968,280 * 0.4911%) / 100 = $569,520.22 * 75% = $427,140.17

In 2013 and 2014 Caterpillar had a total taxable inventory of $491,460 ($322,451 for 2013 and $169,009 for 2014). During each of these years Caterpillar qualified but did not receive the reimbursement for taxable inventory. According to the Agreement, Caterpillar will receive $1,833.39 which is a 75% tax reimbursement for the taxable inventory. The methodology for the reimbursement is noted below:

(2013 taxable inventory value * the 2013 Schertz tax rate)/100 + (2014 taxable inventory value * the 2014 Schertz tax rate)/100 = total taxes paid * 75% = Caterpillar’s 2013 and 2014 missing tax reimbursement

($322,451*0.4974/100) + ($169,009*0.4974/100) = $2,444.52 * 75% = $1,833.39

In summary, Caterpillar will receive both the 2015 reimbursement of $427,140.17 and the 2013/2014 inventory reimbursement of $1,833.39 for a combined total of $428,973.56.

STAFF RECOMMENDATION

Staff has evaluated the Agreement and found that Caterpillar is compliant for the 2015 tax year. Staff recommends that the City Council authorize the reimbursement in accordance with the Agreement.

ATTACHMENT(S)

Caterpillar Statement of Taxes Paid - Office of Tavie Murphy Tax Assessor - Collector (Property ID: 2000050000020 and Property ID: 2000050000010 and Property ID: 2000050000035)

2013 & 2014 Tax Receipts

Guadalupe Tax Office307 W. CourtSeguin, TX 78155Ph: (830) 379-2315 Fax: (830) 303-3421

This is a statement of taxes paid and due as of 2/29/2016 based upon the tax records of the Office of Tavie Murphy Tax Assessor-Collector.

This document is not a tax certificate and does not absolve a taxpayer from tax liability in any way. Should this document be found to be in error, it may be corrected by the collections office. Responsibility to pay taxes remains with the taxpayer as outlined in the Texas Property Tax Code.

Office of Tavie Murphy Tax Assessor-Collector

Statement Of AccountIssue Date : 2/29/2016

Owner InformationProperty Information

Property ID : 1G3383-6A09-00300-0-00

Quick-Ref ID : R663633

Owner ID : O0161498

5700 MID-CITIES PKWY

VERDE ENTERPRISE BUSINESS PARK UNIT #6A BLOCK 9 LOT 3 GCO ABT 75% THROUGH 2019 6.616 AC GCO ABT 75% THROUGH 2019

Value Information

Land HS

$553,849.00Land NHS

$0.00Imp HS

$11,875,373.00

Imp NHS

$0.00Ag Mkt

$0.00Ag Use

$0.00HS Cap Adj

$12,429,222.00

Assessed

CAPITAL GROUP COMPANIES INC3500 WISEMAN BLVDSAN ANTONIO, TX 78251

Ownership: 100.00%

:

:

:

:

:

:

:

: $0.00

$0.00Tim Mkt

$0.00Tim Use :

:

Entity Year Tax Discount P&I Atty Fee TOTAL

CSC 2015 61,039.91 0.00 0.00 0.00 0.00

GGU 2015 11,663.63 0.00 0.00 0.00 0.00

RLT 2015 6,711.78 0.00 0.00 0.00 0.00

SCS 2015 185,195.41 0.00 0.00 0.00 0.00

2015 taxes paid for entity CSC $61,039.912015 taxes paid for entity GGU $11,663.63

2015 taxes paid for entity RLT $6,711.782015 taxes paid for entity SCS $185,195.41

Total for current bills if paid by 2/29/2016 : $0.00Total due on all bills 2/29/2016 : $0.00

2015 Total Taxes Paid : $264,610.73

Date of Last Payment : 01/28/16

© 2003 Tyler Technologies, Inc. Page 1 of 1QuickRefID: R663633 Issue Date: 2/29/2016







Property ID : 1G3383-6A09-00300-3-12

Quick-Ref ID : P327932

Owner ID : O0137932

5700 MID-CITIES PKWY

FURN FIXT & EQUIP GCO ABT 75% THROUGH 2019

Value Information

Land HS

$0.00Land NHS

$0.00Imp HS

$0.00Imp NHS

$0.00Ag Mkt

$0.00Ag Use

$0.00HS Cap Adj

$11,458,381.00

Assessed

CAPITAL GROUP COMPANIES INCATTN: JAMF L-31003500 WISEMAN BLVDSAN ANTONIO, TX 78251

Ownership: 100.00%

:

:

:

:

:

:

:

: $0.00

$0.00Tim Mkt

$0.00Tim Use :

:


CSC 2015 56,272.11 0.00 0.00 0.00 0.00

GGU 2015 9,484.68 0.00 0.00 0.00 0.00

RLT 2015 6,187.53 0.00 0.00 0.00 0.00

SCS 2015 170,729.87 0.00 0.00 0.00 0.00

2015 taxes paid for entity CSC $56,272.112015 taxes paid for entity GGU $9,484.682015 taxes paid for entity RLT $6,187.53

2015 taxes paid for entity SCS $170,729.87




© 2003 Tyler Technologies, Inc. Page 1 of 1QuickRefID: P327932 Issue Date: 2/29/2016







Property ID : 2000050000020


Owner ID : O0154892

6800 DOERR LN SCHERTZ 78154

MACHINERY & EQUIPMENT 6800 DOERR LN

Value Information

Land HS

$0.00Land NHS

$0.00Imp HS

$0.00Imp NHS

$0.00Ag Mkt

$0.00Ag Use

$0.00HS Cap Adj

$113,975,800.00

Assessed

CATERPILLAR INCdba TEXAS MACHINING %THE ARMSTRON CO100 NE ADAMS ST AB4295PEORIA, IL 61629

Ownership: 100.00%

:

:

:

:

:

:

:

: $0.00

$0.00Tim Mkt

$0.00Tim Use :

:


CSC 2015 559,735.15 0.00 0.00 0.00 0.00

2015 taxes paid for entity CSC $559,735.15











Property ID : 2000050000010


Owner ID : O0154893

6800 DOERR LN SCHERTZ 78154

COMPUTERS SUPPLIES & OFFICE EQUIPTMENT 680 DOERR LN

Value Information

Land HS

$0.00Land NHS

$0.00Imp HS

$0.00Imp NHS

$0.00Ag Mkt

$0.00Ag Use

$0.00HS Cap Adj

$1,934,820.00Assessed

CATERPILLERdba TEXAS MACHINING % THE ARMSTRONG CO100 NE ADAMS STAB4295PEORIA, IL 61629

Ownership: 100.00%

:

:

:

:

:

:

:

: $0.00

$0.00Tim Mkt

$0.00Tim Use :

:


CSC 2015 9,501.90 0.00 0.00 0.00 0.00

2015 taxes paid for entity CSC $9,501.90











Property ID : 2000050000035


Owner ID : O0183187

6800 DOERR LANE SCHERTZ 78154

INVENTORY - NON-FREEPORT

Value Information

Land HS

$0.00Land NHS

$0.00Imp HS

$0.00Imp NHS

$0.00Ag Mkt

$0.00Ag Use

$0.00HS Cap Adj

$57,660.00Assessed

CATERPILLAR INCUNKNOWNSCHERTZ, TX 78154

Ownership: 100.00%

:

:

:

:

:

:

:

: $0.00

$0.00Tim Mkt

$0.00Tim Use :

:


CSC 2015 283.17 0.00 0.00 0.00 0.00

2015 taxes paid for entity CSC $283.17


2015 Total Taxes Paid : $283.17



Documents

AGENDA TUESDAY, MARCH 8, 2016 AT 6:00 P.M.216.45.71.196/Weblink/1/edoc/306505/03-08-2016 Agenda with back… · 03-08-2016 City Council Agenda Page - 2 - All remarks shall be addressed