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07/15/2019-CC-Agenda Packet-RegularAG E N D A C IT Y C O UN C IL R E G ULAR ME E T IN G MO N D AY, J ULY 15, 2019 7:00 P M 502 E LM S T R E E T S AN G E R, T E XAS 1.Call Meeting to Order, Invocation, P ledge of Allegiance. 2.C IT IZE N IN P UT: (Citizens are allo wed 3 minutes to spea k . The City Co un cil is unable to respond or d iscu ss any issues brought up during this section.) 3.C O N S E N T AG E N D A: a.Approval of Minutes 1.C ity C o uncil Work S ession Minutes 07-01-2019 Approval of the C ity C o uncil Work S ession Minutes fo r July 1, 2019. 2.C ity C o uncil R egular Meeting Minutes 07-01-2019 Approval of the C ity C o uncil R egular Meeting Minutes from July 1, 2019 b.Tax Collection Interlocal Agreement Approve and Autho rize Mayo r to S ign Interloc al C o o p eration Agreement for Tax C o llectio n Between Dento n C o unty, Texas and the C ity o f S anger, Texas . 4.Consider Any Items Removed from Consent Agenda. R E G ULAR AG E N D A 5.4A Loan P ayoff on Warehouse C ons id er, Disc uss and Act on Authorizing the 4A Indus trial Develo p ment C orporatio n to P ay the R emaining Debt on the Wareho use Lo cated at 103 Bo livar S treet, S anger, Texas. 6.S treet Rehab 2019 C ons id er, Dis c us s and P ossibly Act on Authorizatio n to Utilize the Interloc al P urchas ing Agreement With the C ity o f G rand P raire for C ontrac t fo r S ervic es with R eyno ld s Asphalt & C ons tructio n C ompany for S treet R econs truction o f Elm S treet from I35 S ervices R d. to N. 9th, P ecan S treet from I35 S ervic e R d to N. 9th, and N. 9th fro m P lum S treet to Bolivar S treet, P eac h S t fro m 10th S t to 5th S t at an Amo unt No t to Exc eed $190,000. 7.Ordinance #07-22-19 – Budget Amendment C ons id er, Dis cus s and Act o n O rd inance #07-22-19 – Amend ing O rdinanc e #09-26-18, W hic h Will Amend the Bud get F or T he F isc al Year 2018-2019 And Autho rizing Amended Expend itures as P rovid ed . 8.IN F O R MAT IO N IT E MS : a.Capital P rojects Recap - J uly 3, 2019 Page 1 C apital P rojec ts R ecap - July 3, 2019 b.Monthly F inancial Report - May 31, 2019 Mo nthly F inanc ial R eport - May 31, 2019 c.All American Dogs Report All Americ an Do gs R ep o rt T hro ugh June 2019 d.Disbursements - J une 2019 Disburs ements - June 2019 e.Atmos Energy Tariff Update to Atmos Energy C o rp o ration's C ons ervatio n and Energy Efficiency Tariff. f.Atmos Energy Rider G C R R ider G C R - R ate F iling und er Doc ket No. 10170 9.F UT UR E AG E N D A IT E MS : (The purpose of this item is to allow the Mayor and members of Council to bring forward items they wish to discuss at a future meeting, A Council Member may inquire about a subject for which notice has not been given. A statement of specific factual information or the recitation of existing policy may be given. Any deliberation shall be limited to a proposal to place the subject on an agenda for a subsequent meeting. Items may be placed on a future meeting agenda with a consensus of the Council or at the call of the Mayor). 10.AD J O UR N. I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the City Website, and on the bulletin board, at the City Hall of the City of S anger, Texas, a place convenient and readily accessible to the general public at all times. S aid notice was posted on the following date and time, and remained posted continuously for at least 72 hours prior to the scheduled time of said meeting and shall remain posted until meeting is adjourned. July 12, 2019 at 1:15 P M Cheryl P rice City S ecretary City of S anger, Texas Date/Time P osted This facility is wheelchair accessible and accessible parking spaces are available. Requests for additional accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at (940) 458-7930 for further information. Page 2 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. a.1. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: Cheryl P rice, City S ecretary IT E M/C AP T IO N: City Council Work S ession Minutes 07-01-2019 Approval of the C ity C o uncil Work S ession Minutes fo r July 1, 2019. AG E N D A T YP E : C ons ent Agend a AC T IO N R E Q UE S T E D: Approval B AC KG R O UN D: Attac hed are the minutes fo r the July 1, 2019 Wo rk S es s io n fo r C ounc il Ap p ro val. LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: N/A F UN D S : N/A S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: N/A AT TAC HME N T S : Des criptio n Up lo ad Date Type C ity C ounc il Wo rk S es s io n Minutes 07-01-2019 7/11/2019 C over Memo Page 3 CITY OF SANGER, TEXAS MINUTES: CITY COUNCIL WORK SESSION July 1, 2019 – 6:00 PM 502 Elm Street, Sanger, Texas COUNCIL MEMBERS PRESENT: Mayor Thomas Muir; Mayor Pro Tem Gary Bilyeu; Councilmember Marissa Barrett; Councilmember Dennis Dillon; Councilmember David Clark. COUNCIL MEMBERS ABSENT: Councilmember Allen Chick. The Mayor and all four (4) Council Members were present constituting a quorum. STAFF MEMBERS PRESENT: City Manager Alina Ciocan; City Engineer Tracy LaPiene; Fire Chief David Pennington; City Secretary Cheryl Price, Josh Bishop, Police Department. 1. Call Meeting to Order. The Work Session was called to order on July 1, 2019 at 6:02 PM by Mayor Muir. 2. Budget Workshop – FY 2019-20 City Manager Alina Ciocan presented the 2019-2020 Preliminary Budget. She provided an introduction and budget philosophy. She summarized the Budget Development and provided the following budget timeline:  July 1st – Budget Workshop  July 15th - Budget Workshop  July 25th - Chief Appraiser Certifies Tax Roll  July 29th - Proposed budget filed with City Secretary  August 5th – City Council discuss Tax Rate  August 19th – 1st Public Hearing on Budget and Tax Rate  September 3rd – 2nd Public Hearing on Budget and Tax Rate  September 16th – City Council adopt Budget and Tax Rate City Manager Alina Ciocan explained the organization of the budget and noted the various funds for operations, nothing that the three main funds are the General Fund, the Enterprise Fund and the Internal Service Fund. She provided general fund revenue summaries and property tax projections with a chart on the latest property tax numbers. On Enterprise Fund Revenues she noted that these revenues can fluctuate dramatically due to weather. We are slightly below projection due to a mild winter. When consumption is down, so are production costs and wholesale utility costs. She advised that the water and wastewater revenues for FY 2019-20 are based on projections provided by NewGen Strategies. She also provided a summary of proposed significant budget changes: ▪ Development Services - Personnel: Add a plans examiner/back-up inspector and a new vehicle for building inspector. ▪ Streets - Cul-de-sac maintenance program and Street Rehab Projects (capital project) which both have been previously discussed with Council. ▪ Water Department - $60,000 in repairs to Well #6 and projected increases in wholesale water costs with volume and demand charges at 3%. ▪ Wastewater Department – Increased personnel cost due to adding WWTP Supervisor position in FY 2018-19 and increased cost of sludge removal to $65,000. ▪ Electric – System improvements $50,000. There was brief discussion regarding improvements that may be necessary. Page 4 ▪ Transfers – Transfer to ISF increased due to engineering. ▪ Mayor and Council – eliminated the capital outlay expenditure - $30,000 and decreased the line item for technical support – cost re-allocation. ▪ Public Works – Moved the construction inspector position to the Engineering Department; split the cost of the administrative position – 50% with Engineering and the Public Works Director salary is split between General Fund and Enterprise Fund. ▪ Engineering – Established an Engineering Department and provide a new vehicle for construction inspector. ▪ 3% proposed merit increase ▪ City’s TMRS rate increasing from 8.05% to 8.31% ▪ Social Services Contributions: Span Program $13,200 and Children’s Advocacy Center $13,703. ▪ Ongoing – Wastewater Treatment Plant Rehabilitation ▪ Upcoming: • FM 455 Widening – relocation of utilities • Outfall pipeline project • Railroad Lift Station (Formerly known as Cowling Road Lift Station) • IH-35 Project – relocation of utilities • Other projects as identified in the updated Water and Wastewater Capital Improvement plan. ▪ 4A – proposed increases to the Marketing and Professional Services line items: Marketing $12,000 and Professional Services $55,000 (Includes funding for Comprehensive Plan) ▪ 4B – Allocation of $40,000 for Comprehensive Plan In addition to the items above, City Manager Alina Ciocan noted items that staff is currently working through. For Police and Fire, we are in the process of reviewing the pay plans to make sure that we are staying competitive. For the Fire Department we are pursuing the Safer Grant again. We are budgeting the purchase of an ambulance – we are actually going to remount it and will be paying for it up front instead of issuing a note. She noted that we are also pursuing a grant for Arial apparatus. The grant provides 95 percent of the cost and the City is responsible for 5%. She explained the way the grant works is that they give us the money up front and we have 30 days to meet the 5% and buy the equipment. If we get the match, the City match will be factored in the budget. There was discussion as to what the chances are in getting it. David Pennington explained he could not say whether or not we will get it, that it is a high priority year and we have points towards it with the hotel coming in. It was noted that we would have to maintain the equipment and it would be audited twice a year for maintenance and usage. After 12 months, after the closeout on the grant, it would be ours. City Manager Alina Ciocan concluded noting that the 2020 budget continues focus on infrastructure improvement including rehabilitation of streets, water lines and sewer lines. We are slowly adding employees to keep pace with growing service demands. 2020 looks to be another very bus y year. She commended the Mayor and City Council on their forward thinking and planning for the future as well as their commitment to funding of our infrastructure needs. Miscellaneous discussion regarding various areas of the budget ensued. City Council members requested a copy of the Budget Calendar. 3. Overview of Items on the Regular Agenda. There was no discussion of items on the Regular Agenda. 4. Adjourn. There being no further discussion Mayor Muir adjourned the City Council Work Session at 6:54 PM. Page 5 Page 6 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. a.2. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: Cheryl P rice, City S ecretary IT E M/C AP T IO N: City Council Regular Meeting Minutes 07-01-2019 Approval of the C ity C o uncil R egular Meeting Minutes from July 1, 2019 AG E N D A T YP E : C ons ent Agend a AC T IO N R E Q UE S T E D: Approval B AC KG R O UN D: Attac hed are the minutes fo r the July 1, 2019 R egular C ity C ounc il Meeting fo r C ounc il Ap p ro val. LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: N/A F UN D S : N/A S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: N/A AT TAC HME N T S : Des criptio n Up lo ad Date Type C ity C ounc il R egular Meeting Minutes 07-01-2019 7/11/2019 C over Memo Page 7 CITY OF SANGER, TEXAS MINUTES: REGULAR CITY COUNCIL MEETING July 1, 2019, 7:00 p.m. 502 Elm Street, Sanger, Texas COUNCIL MEMBERS PRESENT: Mayor Thomas Muir; Mayor Pro Tem Gary Bilyeu; Councilmember Marissa Barrett; Councilmember Dennis Dillion; Councilmember David Clark. COUNCIL MEMBERS ABSENT: Councilmember Allen Chick. The Mayor and four (4) Council Members were present constituting a quorum. STAFF MEMBERS PRESENT: City Manager Alina Ciocan; Director of Development Services Ramie Hammonds; City Planner Muzaib Riaz; City Engineer Tracy LaPiene; Fire Chief David Pennington; Cheryl Price, City Secretary, Josh Bishop, Police Department. 1. Call Meeting to Order, Invocation, Pledge of Allegiance. Mayor Muir Called the meeting to order at 7:03 PM. Councilmember Dillon gave the invocation and Councilmember Clark led the Pledge of Allegiance. 2. CITIZEN INPUT: (Citizens are allowed 3 minutes to speak. The City Council is unable to respond or discuss any issues brought up during this section.) There were no citizens approaching the podium who wished to speak on items not on the agenda. 3. CONSENT AGENDA: a. Approval of Minutes 1. City Council Joint Meeting Minutes with 4A Sanger Texas Industrial Development Corporation and the 4B Sanger Texas Development Corporation on June 17, 2019. 2. Approval of the City council Work Session Minutes for the June 17, 2019 meeting. 3. Approval of the City Council Regular Meeting Minutes for the June 17, 2019 meeting. A motion was made by Mayor Pro Tem Bilyeu to approve the Consent Agenda as presented. The motion was seconded by Councilmember Clark. The motion to approve carried unanimously (4-0 Vote, Councilmember Chick Absent). 4. Consider any items removed from Consent Agenda. No Items were moved from the Consent Agenda. Page 8 REGULAR AGENDA 5. Consider, Discuss and Act on the Minor Plat of Lot 1, Block A of Meadow Green Farm Addition, being approximately 4.367 acres and generally located west of Metz Road and approximately 3000 feet south of the intersection of Lois Road an d Metz Road. Mayor Muir noted for the record that Councilmember Clark recused himself from the room and the vote because his employer is related to the case. Councilmember Clark left the Council Chambers. Director of Development Services Ramie Hammonds summarized. The applicant is proposing a one lot 4.15-acre development. There are already two structures (a colonial house and a shed) located on the property. The two structures are legally non-conforming because of encroachments. The house encroaches the build line and the shed encroaches into the new right-of-way for Metz Road. The property is in the City of Sanger’s ETJ and the County was made aware of this and had no comments. The Planning and Zoning Commission approved the plat with a 7-0 vote. There was brief discussion regarding the encroachments. It was noted the applicant was present for questions. There were no further questions. A motion was made by Mayor Pro Tem Bilyeu to approve the Minor Plat of Lot 1, Block A of Meadow Green Farm Addition, being approxim ately 4.367 acres and generally located west of Metz Road and approximately 3000 feet south of the intersection of Lois Road and Metz Road. The motion was seconded by Councilmember Dillon. The motion carried unanimously with a 3-0 vote, Councilmember Clark was recused from the meeting and Councilmember Chick absent). Councilmember Clark returned to the Council Agenda. 6. Consider, discuss and possibly approve and authorize Mayor to execute a Services Contract between the City of Sanger and the Sanger Area Chamber of Commerce for Hotel Occupancy Tax Funds. Debbie Reeves, Chamber Administrator was recognized and gave a summary of the budget and identified several things the Chamber is doing to encourage tourism in the City of Sanger. She noted they are currently in the process of publishing a community guide which will list the businesses, restaurants, churches, etc., in the City and events going on in the City and information about the lake, historical and other information. The guide will be put in each one of the hotel rooms in the City and will be available at numerous businesses through out the City. She noted that at the Sellabration this year they are going back to the old school days and having a food competition and having the community bring in their cakes, pies, jellies and jams and have them judged by the Mayor or a City Council person, the Chief of Police and the Fire Chief. They hoped this would increase the community involvement. They are working on increasing the number of downtown events to get more foot traffic downtown. She summarized events they are planning. They provide new welcome packets to businesses and to new residents. She noted that she provided a copy of the Chamber’s budget to the Council and that the Directors approved it in January. She introduced the Directors of the Chamber who were present at the meeting. Kelsi Bannahan, Treasurer; Greg Farrow Director; Sue Allison, Director; Nancy McAlister, Director. It was noted that in the Services Contract Section 4, Terms - the dates need to be changed. Page 9 A motion was made by Mayor Pro Tem Bilyeu to approve and authorize the Mayor to execute a Services Contract between the City of Sanger and the Sanger Area Chamber of Commerce for Hotel Occupancy Tax Funds noting the modification of the dates in Section 4 Terms be changed to “July 1, 2019 until Jun 30, 2020”. The motion was seconded by Councilmember Barrett. The motion carried unanimously (4-0 Vote – Councilman Chick absent). 7. Consider, discuss and possibly approve Resolution #07-11-2019 – Appointing one member to the Board of Managers of the Denco Area 9-1-1 District. Nominees are Sue Tejml, Bill Castleman, and David Terre. There was brief discussion between Councilmembers regarding the Nominees. A motion was made by Mayor Pro Tem Bilyeu to approve appointing Sue Tejml to the Board of Managers of the Denco Area 9-1-1 District. The motion was seconded by Councilmember Clark. The motion carried unanimously (4-0 vote – Councilman Chick absent). 8. Consider, discuss and possibly act on approving Change Order #6 in the amount of $17,046.40 between the City of Sanger and Felix Construction Company for reconstruction of the Sanger Wastewater Treatment Plan rehabilitation and improvements. City Engineer Tracy LaPiene, P.E. summarized. Noting that Jeff Caffey had summarized the items to City Council a few weeks ago. He noted that as they got Plant 4 cleaned out that it had quite a bit of separation on the coating, that it is in an area that had chlorine storage tanks so there was a lot more corrosion, bare spots, and rust spots, so it also needs coating. While the painter is still on-site the cost would be less. There was brief discussion regarding other items on the list in the packets. Mr. LaPiene noted that the painting is for Plant 4 – and the change order also reflects two credits (relocating some piping/plumbing and instead of having a motorized valve they were going with a manual valve). It was noted that overall the project so far is about 1% over which is not bad for the size of the project. It is not part of the City’s operating budget. It was noted that any addition to the contract, since we are at the limit, would go before Council for approval. It was noted that there are more change orders coming. There was brief discussion regarding substantial completion, and regarding the cracks in the holding tank - what is going to be done. Mayor Muir advised that City Engineer, Tracy LaPiene inspect the holding tank and, if he, as our City Engineer feels we may need to get an independent opinion regarding the issue because of the size of the project that it may be something that the Council would consider. This would need to be done before the City signs off, before the warranty period. Mr. LaPiene noted he would look into it further and touch base with the City Manager and get back to Council on it. A motion was made by Mayor Pro Tem Bilyeu to approve Change Order #6 in the amount of $17,046.40 between the City of Sanger and Felix Construction Company for reconstruction of the Sanger Wastewater Treatment Plan rehabilitation and improvements. The motion was seconded by Councilmember Dillon. The motion carried unanimously (4- 0 vote - Councilmember Chick absent). Page 10 9. FUTURE AGENDA ITEMS: (The purpose of this item is to allow the Mayor and members of Council to bring forward items they wish to discuss at a future meeting. A Council Member may inquire about a subject for which notice has not been given. A statement of specific factual information or the recitation of existing policy may be given. Any deliberation shall be limited to a proposal to place the subject on an agenda for a subsequent meeting. Items may be placed on a future meeting agenda with a consensus of the Council or at the call of the Mayor). – Looking at FM 455 frontage overlay zoning as a workshop prior to the Comprehensive Plan. 5. ADJOURN. There being no further business, Mayor Muir adjourned the Regular City Council Meeting at 7:54 PM. Page 11 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. b. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: Clayton Gray, Finance Director IT E M/C AP T IO N: Tax Collection Interlocal Agreement Approve and Autho rize Mayor to S ign Interloc al C ooperatio n Agreement fo r Tax C o llectio n Between Dento n C o unty, Texas and the C ity o f S anger, Texas . AG E N D A T YP E : C ons ent Agend a AC T IO N R E Q UE S T E D: Approval B AC KG R O UN D: T his is the annual Interlo cal C o o p eration Agreement fo r Tax C ollec tion between Denton C o unty and the C ity o f S anger. T his c ontrac t allows Denton C ounty to ac t as tax assessor and c o llecto r for the C ity of S anger. T he effective d ate of the c o ntract is O cto b er 1, 2019. In prior years, the Agreement was for a s ingle year. T his Agreement will renew automatically unless terminated b y either party. LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: N/A F UN D S : N/A S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: S taff rec o mmends ap p ro val o f the Agreement. AT TAC HME N T S : Des criptio n Up lo ad Date Type Letter from Dento n C o unty 7/3/2019 C over Memo Page 12 P ro p erty Tax Assessment and C o llectio n Interloc al Agreement 7/3/2019 C over Memo Page 13 DENTON COUNTY Office of Michelle French, P.C.C. Tax Assessor/Collector 1505 E. McKinney St. Denton, TX 76209 July 2, 2019 Dear Taxing Entities, The 2019 Denton County Interlocal Collection Agreement is finalized for issuance. The parcel fee for consolidated collections for the 2019 tax year is $1.00 per parcel. The contract is being released a little later this year as we wanted to ensure there was no legislation that would significantly change the manner by which we serve as your assessor/collector. Additionally, we have converted the contract into a multi- year contract. After this year, you will no longer need to submit the contract annually, as it will renew automatically unless terminated by either party. The annual parcel fee will continue to be analyzed annually and submitted to you by separate notice. The Interlocal Agreement is to be submitted to the Denton County Tax Office no later than September 4, 2019. This will provide the necessary time to add the Agreement to the Denton County Commissioners Court Agenda to be properly executed prior to October 1, 2019. We are providing the Agreement in form-fillable PDF format for your convenience. The Agreement must be submitted to our office in triplicate. Please print three (3) copies of the completed Agreement and have all copies signed by the appropriate person in your entity. Failure to submit three (3) originally signed Agreements may delay processing through Commissioners Court. Municipalities that have approved the creation of a Public Improvement District (PID) must complete the Public Improvement District Agreement. The proper Agreement will be dependent on whether the PID is a rate based or fixed lien assessment district. Please feel free to contact our office to assist you should you have questions about which district Agreement you may need to complete. The address to mail the completed Agreements is as follows: Office of Michelle French Denton County Tax Assessor/Collector P.O. Box 90223 Denton, TX 76202 Attn: Michelle French or Stacey Dvoracek The physical address is as follows: Office of Michelle French Denton County Tax Assessor/Collector 1505 E. McKinney Street Denton, TX 76209 Attn: Michelle French or Stacey Dvoracek As always, our office is here to assist you with any questions or concerns. We thank you for allowing Denton County to provide consolidated collections to your entity in order to better serve our mutual constituents. Sincerely, Michelle French Denton County Tax Assessor/Collector Page 14 Page 1 of 14 Municipality Multi Year ILA THE STATE OF TEXAS § COUNTY OF DENTON § INTERLOCAL COOPERATION AGREEMENT FOR PROPERTY TAX ASSESSMENT AND COLLECTION BETWEEN DENTON COUNTY, TEXAS AND CITY/TOWN OF ____________________________________________, TEXAS INTERLOCAL COOPERATION AGREEMENT –TAX COLLECTION THIS AGREEMENT is made and entered into by and between DENTON COUNTY, a political subdivision of the State of Texas, hereinafter referred to as "COUNTY," and CITY/TOWN OF _________________________________________, Denton County, Texas, also a political subdivision of the State of Texas, hereinafter referred to as "MUNICIPALITY." WHEREAS, COUNTY and MUNICIPALITY mutually desire to be subject to the provisions of V.T.C.A. Government Code, Chapter 791, the Interlocal Cooperation Act, and V.T.C.A., Tax Code, and Section 6.24; and; WHEREAS, MUNICIPALITY has the authority to contract with the COUNTY for the COUNTY to act as tax assessor and collector for MUNICIPALITY and COUNTY has the authority to so act. NOW THEREFORE, COUNTY and MUNICIPALITY, for and in consideration of the mutual promises, covenants, and agreements herein contained, do agree as follows: Page 15 Page 2 of 14 Municipality Multi Year ILA I. The effective date of this Agreement shall be October 1, 2019. The initial term of this Agreement shall be for a period of one year commencing October 1, 2019 and ending September 30, 2020. Following the initial term, this Agreement shall automatically renew for subsequent one-year terms, unless written notice of termination is provided by COUNTY or MUNICIPALITY no later than one hundred-eighty (180) days prior to the expiration date of the then-current term of the Agreement. If said notice is provided, this Agreement shall terminate at the end of the then-current term. During the initial term of this Agreement, the term "tax year" means tax year 2018 and the term "collection year" means 2019. During each subsequent renewal term, the term "tax year" means the year following the previous term's "tax year", and the term "collection year" means the year following the previous term's "collection year." For example, during the first renewal term of this Agreement (October 1, 2020 – September 30, 2021), the term "tax year" means tax year 2019 and the term "collection year" means 2020, during the second renewal term of this Agreement (October 1, 2021 – September 30, 2022), the term "tax year" means tax year 2020 and the term "collection year" means 2021, and so on. II. For the purposes and consideration herein stated and contemplated, COUNTY shall provide the following necessary and appropriate services for MUNICIPALITY to the maximum extent authorized by this Agreement, without regard to race, sex, religion, color, age, disability, or national origin: Page 16 Page 3 of 14 Municipality Multi Year ILA 1. COUNTY, by and through its duly qualified tax assessor-collector, shall serve as tax assessor-collector for Denton and Collin Counties in the MUNICIPALITY for ad valorem tax collection for the tax year. COUNTY agrees to perform all necessary ad valorem assessing and collecting duties for MUNICIPALITY and MUNICIPALITY does hereby expressly authorize COUNTY to do and perform all acts necessary and proper to assess and collect taxes for MUNICIPALITY. COUNTY agrees to collect base taxes, penalties, interest, and attorney's fees. 2. COUNTY agrees to prepare and mail all current and delinquent tax statements required by statute, supplemental changes for applicable property accounts, as well as prepare and mail any other mailing as deemed necessary and appropriate by COUNTY; provide daily and monthly collection reports to MUNICIPALITY; prepare tax certificates; develop and maintain both current and delinquent tax rolls, disburse tax monies to MUNICIPALITY daily (business day) based on prior day tax postings, approve and refund overpayment or erroneous payment of taxes for MUNICIPALITY pursuant to Texas Property Tax Code Sections 31.11 and 31.12 from available current tax collections of MUNICIPALITY; and to meet the requirements of Section 26.04 of the Texas Tax Code; and develop and maintain such other records and forms as are necessary or required by State law, rules, or regulations. 3. COUNTY further agrees that it will calculate the effective tax rates and rollback tax rates for MUNICIPALITY, however all calculations will be performed using only the Texas State Comptroller’s “Truth In Taxation” formulas, and that such calculation will be provided at no additional cost to MUNICIPALITY. The information concerning the effective and rollback tax rates will be published in the form prescribed by the Page 17 Page 4 of 14 Municipality Multi Year ILA Comptroller of Public Accounts of the State of Texas, and as required by Section 26.04 of V.T.C.A Tax Code. MUNICIPALITY shall notify tax assessor-collector no later than July 25th of the collection year that MUNICIPALITY wishes publication of forms or notices specified in this section. It is understood and agreed to by the parties that the expense of publication shall be borne by MUNICIPALITY and that COUNTY shall provide MUNICIPALITY's billing address to the newspaper publishing the effective and rollback tax rates. In the event MUNICIPALITY requires early calculation based on certified estimate values, MUNICIPALITY must notify COUNTY no later than May 20th of the collection year that MUNICIPALITY wishes publication of forms or notices specified in this section 4. COUNTY agrees, upon request, to offer guidance and the necessary forms for posting notices of required hearing and quarter-page notices as required by Sections 26.05 and 26.06 of V.T.C.A. Tax Code, if MUNICIPALITY requests such no less than 7 days in advance of the intended publication date. MUNICIPALITY must approve all calculations and notices, in the format required by COUNTY, before publication may proceed. The accuracy and timeliness of all required notices are the responsibility of MUNICIPALITY. This Agreement is subject to and the parties herein shall comply with all applicable provisions of the Texas Property Tax Code and all other applicable Texas statutes. COUNTY will submit to MUNICIPALITY approval forms of the tax rate calculation and required notices. MUNICIPALITY must return executed approval forms to tax assessor/collector before notices may be appropriately submitted to the appraisal MUNICIPALITY, newspapers, etc. as required by law. Page 18 Page 5 of 14 Municipality Multi Year ILA 5. Should MUNICIPALITY vote to increase its tax rate above the rollback tax rate the required publication of notices shall be the responsibility of the MUNICIPALITY. Should MUNICIPALITY roll back the tax rate as a result of Tax Rate Rollback Election, the required publication of notices shall be the responsibility of MUNICIPALITY. 6. COUNTY agrees to develop and maintain written policies and procedures of its operation. COUNTY further agrees to make available full information about the operation of the County Tax Office to MUNICIPALITY, and to promptly furnish written reports to keep MUNICIPALITY informed of all financial information affecting it. 7. MUNICIPALITY agrees to promptly deliver to COUNTY all records that it has accumulated and developed in the assessment and collection of taxes, and to cooperate in furnishing or locating any other information and records needed by COUNTY to perform its duties under the terms and conditions of this Agreement. 8. COUNTY agrees to allow an audit of the tax records of MUNICIPALITY in COUNTY’S possession during normal working hours with at least 48 hours advance, written notice to COUNTY. The expense of any and all such audits shall be paid by MUNICIPALITY. A copy of any and all such audits shall be furnished to COUNTY. 9. If required by MUNICIPALITY, COUNTY agrees to obtain a surety bond for the County Tax Assessor/Collector. Such bond will be conditioned upon the faithful performance of the Tax Assessor/Collector’s lawful duties, will be made payable to MUNICIPALITY and in an amount determined by the governing body of MUNICIPALITY. The premium for any such bond shall be borne solely by MUNICIPALITY. Page 19 Page 6 of 14 Municipality Multi Year ILA 10. COUNTY agrees that it will post a notice on its website, as a reminder that delinquent tax penalties will apply to all assessed taxes that are not paid by January 31st of the collection year. 11. COUNTY agrees that it will post to a secure website collection reports for MUNICIPALITY listing current taxes, delinquent taxes, penalties and interest on a daily basis through September 30th of the collection year. COUNTY will provide monthly Maintenance and Operation (hereinafter referred to as “MO”), and Interest and Sinking (hereinafter referred to as “IS”) collection reports; provide monthly recap reports; and provide monthly attorney fee collection reports. 12. MUNICIPALITY retains its right to select its own delinquent tax collection attorney and COUNTY agrees to reasonably cooperate with the attorney selected by MUNICIPALITY in the collection of delinquent taxes and related activities. 13. MUNICIPALITY will provide COUNTY with notice of any change in collection attorney on or before the effective date of the new collection attorney contract. III. COUNTY hereby designates the Denton County Tax Assessor/ Collector to act on behalf of the County Tax Office and to serve as Liaison for COUNTY with MUNICIPALITY. The County Tax Assessor/Collector, and/or his/her designated substitute, shall ensure the performance of all duties and obligations of COUNTY; shall devote sufficient time and attention to the execution of said duties on behalf of COUNTY in full compliance with the terms and conditions of this Agreement; and shall provide immediate and direct supervision of the County Tax Office employees, agents, contractors, Page 20 Page 7 of 14 Municipality Multi Year ILA subcontractors, and/or laborers, if any, in the furtherance of the purposes, terms and conditions of this Agreement for the mutual benefit of COUNTY and MUNICIPALITY. IV. COUNTY accepts responsibility for the acts, negligence, and/or omissions related to property tax service of all COUNTY employees and agents, sub-contractors and/or contract laborers, and for those actions of other persons doing work under a contract or agreement with COUNTY to the extent allowed by law. V. MUNICIPALITY accepts responsibility for the acts, negligence, and/or omissions of all MUNICIPALITY employees and agents, sub-contractors and/or contract laborers, and for those of all other persons doing work under a contract or agreement with MUNICIPALITY to the extent allowed by law. VI. MUNICIPALITY understands and agrees that MUNICIPALITY, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of COUNTY. COUNTY understands and agrees that COUNTY, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of MUNICIPALITY. Page 21 Page 8 of 14 Municipality Multi Year ILA VII. For the services rendered during the tax year, MUNICIPALITY agrees to pay COUNTY for the receipting, bookkeeping, issuing, and mailing of tax statements as follows: 1. The current tax statements will be mailed by October 10th of the tax year or as soon thereafter as practical. Pursuant to Texas Property Tax Code §26.05(a), the MUNICIPALITY must adopt its tax year tax rate before the later of the applicable dates set forth therein. In order to expedite mailing of tax statements, MUNICIPALITY shall adopt and then deliver its adopted tax rate to COUNTY no later than said adoption deadline. Failure by MUNICIPALITY to adopt and then deliver the adopted tax rate to COUNTY by the adoption deadline set forth in §26.05(a) may result in delay of processing and mailing MUNICIPALITY tax statements. MUNICIPALITY agrees to assume the costs for additional delayed tax statements, processing and mailing as determined by COUNTY. An additional notice will be sent during the month of March following the initial mailing provided that MUNICIPALITY has requested such a notice on or before February 28th of the collection year. During the initial term of this Agreement, the fee for this service will be $1.00 per statement. During the first and second renewal terms of this Agreement, the fee for this service will be the per statement rate approved by Commissioners Court for the applicable tax year, provided notice of that rate is provided to MUNICIPALITY as described in Paragraph 8 of this Article VII. In the event COUNTY does not provide MUNICIPALITY with said notice, the rate charged during the preceding term will apply. Page 22 Page 9 of 14 Municipality Multi Year ILA 2. At least 30 days, but no more than 60 days prior to April 1st of the collection year and following the initial mailing, a delinquent tax statement meeting the requirements of Section 33.11 of the Texas Property Tax Code will be mailed to the owner of each parcel having delinquent taxes. 3. At least 30 days, but no more than 60 days prior to July 1st of the collection year and following the initial mailing, a delinquent tax statement meeting the requirements of Section 33.07 of the Texas Property Tax Code will be mailed to the owner of each parcel having delinquent taxes. 4. For accounts that become delinquent on or after June 1st of the collection year, COUNTY shall mail a delinquent tax statement meeting the requirements of Section 33.08 of the Texas Property Tax Code to the owner of each parcel having delinquent taxes. 5. In event of a successful rollback election which takes place after tax bills for MUNICIPALITY have been mailed, MUNICIPALITY agrees to pay COUNTY a programming charge of $5,000.00. COUNTY will, pursuant to Property Tax Code Section 26.07(f), mail corrected statements to the owner of each property. The fee for this service will be the same per statement rate described in Paragraph 2 of this Article VII. When a refund is required per Property Tax Code Section 26.07(g), COUNTY will charge a $.25 processing fee per check, in addition to the corrected statement mailing costs. Is suance of refunds, in the event of a successful rollback election, will be the responsibility of the COUNTY. MUNICIPALITY will be billed for the refunds, postage and processing fees. 6. MUNICIPALITY understands and agrees that COUNTY will, no later than January 31st of the tax year, deduct from current collections of MUNICIPALITY the "Total Cost" of providing all services described in paragraphs 1-5 above. This "Total Cost" Page 23 Page 10 of 14 Municipality Multi Year ILA includes any such services that have not yet been performed at the time of deduction. During the initial term of this Agreement, the "Total Cost" of providing all services described in paragraphs 1-5 above shall be the total of: $1.00 (the "per parcel rate") x the total number of parcels listed on MUNICIPALITY's preceding tax year Tax Roll on September 30th of the tax year. During the first and second renewal terms of this agreement, the "per parcel rate" will be the per parcel rate approved by Commissioners Court for the applicable tax year, provided notice of that rate is provided to MUNICIPALITY as described in Paragraph 7 of this Article VII. In the event COUNTY does not provide MUNICIPALITY with said notice, the per parcel rate charged during the preceding term will apply. In the event that a rollback election as described takes place, COUNTY shall bill MUNICIPALITY for the applicable programming charge, check processing fees, refunds paid, and refund postage costs. MUNICIPALITY shall pay COUNTY all billed amounts within 30 days of its receipt of said bill. In the event costs for additional delayed tax statements, processing and mailing are incurred as described in paragraph 1, COUNTY shall bill MUNICIPALITY for such amounts. MUNICIPALITY shall pay COUNTY all such billed amounts within 30 days of its receipt of said bill. 7. The County Budget Office establishes collection rates annually based on a survey of actual annual costs incurred by the County in performing tax collection services. The collection rate for each tax year is approved by County Commissioners’ Court, and all entities are assessed the same per parcel collection rate. Following approval of the collection rate for each tax year, COUNTY will, at least sixty (60) days prior to the Page 24 Page 11 of 14 Municipality Multi Year ILA expiration date of the then-current term of this Agreement, provide MUNICIPALITY with written notice of that rate. VIII. COUNTY agrees to remit all taxes, penalties, and interest collected on MUNICIPALITY's behalf and to deposit such funds into the MUNICIPALITY’s depositories, as designated: 1. For deposits of tax, penalties, and interest, payment shall be by wire transfer or ACH to MUNICIPALITY's depository accounts only, and segregated into the appropriate MO and IS accounts. Only in the event of failure of electronic transfer protocol will a check for deposits of tax, penalty and interest be sent by mail to MUNICIPALITY. 2. If MUNICIPALITY uses the same depository as COUNTY, the deposits of tax, penalty and interest shall be by deposit transfer. 3. In anticipation of renewal of this Agreement, COUNTY further agrees that deposits will be made daily through September 30th of the collection year. It is expressly understood, however, that this obligation of COUNTY shall not survive termination of this Agreement, whether by termination by either party or by failure of the parties to renew this Agreement. 4. In event that COUNTY experiences shortage in collections as a result of an outstanding tax debt of MUNICIPALITY, the MUNICIPALITY agrees a payment in the amount of shortage shall be made by check or ACH to COUNTY within 15 days after notification of such shortage. Page 25 Page 12 of 14 Municipality Multi Year ILA IX. In the event of termination, the terminating party shall be obligated to make such payments as are required by this Agreement through the balance of the tax year in which notice is given. COUNTY shall be obligated to provide services pursuant to this Agreement during such period. X. This Agreement represents the entire agreement between MUNICIPALITY and COUNTY and supersedes all prior negotiations, representations, and/or agreements, either written or oral. This Agreement may be amended only by written instrument signed by the governing bodies of both MUNICIPALITY and COUNTY or those authorized to sign on behalf of those governing bodies. XI. Any and all written notices required to be given under this Agreement shall be delivered or mailed to the listed addresses: COUNTY: County Judge of Denton County 110 West Hickory Denton, Texas 76201 Telephone: 940-349-2820 MUNICIPALITY: Page 26 Page 13 of 14 Municipality Multi Year ILA XII. MUNICIPALITY hereby designates _________________ to act on behalf of MUNICIPALITY, and to serve as Liaison for MUNICIPALITY to ensure the performance of all duties and obligations of MUNICIPALITY as stated in this Agreement. MUNICIPALITY’s designee shall devote sufficient time and attention to the execution of said duties on behalf of MUNICIPALITY in full compliance with the terms and conditions of this Agreement; shall provide immediate and direct supervision of the MUNICIPALITY employees, agents, contractors, subcontractors, and/or laborers, if any, in the furtherance of the purposes, terms and conditions of this Agreement for the mutual benefit of MUNICIPALITY and COUNTY. XIII. In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties that the remaining portions shall remain valid and in full force and effect to the extent possible. XIV. The undersigned officers and/or agents of the parties are the properly authorized officials and have the necessary authority to execute this agreement on behalf of the parties. Each party hereby certifies to the other that any resolutions necessary for this Agreement have been duly passed and are now in full force and effect. Executed in duplicate originals this, _____________ day of _________________ 2019. Page 27 Page 14 of 14 Municipality Multi Year ILA COUNTY MUNICIPALITY BY:___________________________ Honorable Andy Eads County Judge ATTEST: BY:____________________________ Juli Luke Denton County Clerk APPROVED FORM AND CONTENT: _______________________________ Michelle French BY:__________________________ Name: ________________________ Title: _________________________ ATTEST: BY:__________________________ Name_________________________ Title__________________________ APPROVED AS TO FORM: ___________________________ Assistant District Attorney Denton County Tax Assessor/Collector Denton County Texas 110 West Hickory Denton, Texas 76201 Page 28 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. 5. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: S hani B radshaw, Director of Economic Development IT E M/C AP T IO N: 4A Loan P ayoff on Warehouse C ons id er, Dis cus s and Act o n Authorizing the 4A Indus trial Develo p ment C o rp o ration to P ay the R emaining Deb t on the Warehous e Loc ated at 103 Bolivar S treet, S anger, Texas . AG E N D A T YP E : R egular AC T IO N R E Q UE S T E D: Approval B AC KG R O UN D: T he 4A Ind ustrial Develo p ment C o rp o ration entered into a lo an agreement on June 5, 2009 in the amo unt o f $660,000.00. If the loan were to be paid off o n August 5, 2019, the total p ayoff wo uld b e ap p ro ximately $268,834.27. Early payo ff would save ap p ro ximately $ 32,000 in interes t payments . T here is no p enalty to pay the loan off early - jus t principal p lus interest ac crued s inc e the last p ayment. T he ac tual amo unts will be very c lo s e to thes e ap p ro ximatio ns, b ut may b e o ff d ue to daily interest c harges . LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: S ee ab o ve. F UN D S : N/A S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: O n Tues d ay, May 7, 2019 the 4A Board approved to amend their bud get and pay off the loan o n the Wareho us e loc ated at 103 Bo livar S treet. Page 29 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. 6. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: J ames B erman, Public Works Director IT E M/C AP T IO N: S treet Rehab 2019 C ons id er, Dis c us s and P o s s ib ly Ac t on Authorizatio n to Utilize the Interloc al P urchas ing Agreement With the C ity o f G rand P raire fo r C ontrac t for S ervic es with R eyno ld s As p halt & C o ns truc tion C ompany fo r S treet R ec o ns truc tion of Elm S treet from I35 S ervic es R d. to N. 9th, P ec an S treet from I35 S ervice R d to N. 9th, and N. 9th fro m P lum S treet to Bolivar S treet, P eac h S t fro m 10th S t to 5th S t at an Amo unt No t to Exc eed $190,000. AG E N D A T YP E : R egular AC T IO N R E Q UE S T E D: Approval B AC KG R O UN D: During the May 20, 2019, C ity C o uncil Work S ho p staff was asked to c o mb ine the 2019 & 2020 street recons tructio n sc hedule and c o mp lete the sc hedule all in 2019. C ombining the 2020 street recons tructio n, and adding the P eac h S t p ro ject from the 2021 s ched ule with 2019 wo uld req uire a bud get amend ment in the amo unt o f 190,000 to the F y 2018-2019 bud get. T he attached bid es timates from R eyno ld s As p halt add up to $179,950. T hese amo unts are estimates, no t taking into c o nsideratio n the “unkno wns ” that c o uld p o s s ib ly exist and delay the p ro ject; req uiring the reques t o f additio nal fund s for c o mp letion. F or this reason, s taff would like to reques t the C ity C o uncil ap p ro ved a “not to exceed amo unt” o f $190,000. LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: S ee ab o ve informatio n in the "Background" s ectio n. F UN D S : C apital P rojec ts F und S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: Page 30 S taff rec o mmends ap p ro val. AT TAC HME N T S : Des criptio n Up lo ad Date Type Map o f P rojec t Area 7/9/2019 Exhibit C o s t Es timates 7/10/2019 Exhibit Page 31 2019 EST. COMPLETION Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. 7. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: Clayton Gray, Finance Director IT E M/C AP T IO N: Ordinance #07-22-19 – Budget Amendment C ons id er, Disc uss and Ac t on O rd inance #07-22-19 – Amend ing O rd inance #09-26-18, W hic h Will Amend the Budget F o r T he F is cal Year 2018-2019 And Autho rizing Amended Expend itures as P ro vided. AG E N D A T YP E : R egular AC T IO N R E Q UE S T E D: O rd inance B AC KG R O UN D: 1.T his amendment inc reas es exp enditures in the Enterprise C ap ital P ro jects F und b y $188,819.42 to p ro vide fund ing for the sewer replac ement projec t alo ng P eac h S treet. 2. T his amend ment inc reas es exp enditures in the C apital P rojec ts F und by $190,000.00 to provid e funding fo r the C ity's street recons tructio n p ro jects . 3. T his amend ment increases expend itures in the 4A F und b y $258,966 in order to p ay o ff the lo an o n the property lo cated at 103 Bo livar S treet as ap p ro ved b y the 4A Board o n May 7, 2019. LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: 1. Increases expend itures in the Enterp ris e C apital P rojec ts F und by $188,819.42. 2. Increases expend itures in the C ap ital P ro jects F und b y $190,000.00 3. Increases expend itures in the 4A fund b y $258,966.00. F UN D S : N/A S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: Page 38 S taff rec o mmends ap p ro val. AT TAC HME N T S : Des criptio n Up lo ad Date Type O rdinanc e 07-22-19 Bud get Amendment 7/11/2019 C over Memo O rdinanc e 07-22-19 Exhib it A 7/11/2019 C over Memo O rdinanc e 07-22-19 Exhib it B 7/11/2019 C over Memo O rdinanc e 07-22-19 Exhib it C 7/11/2019 C over Memo Page 39 ORDINANCE #07-22-19 AN ORDINANCE OF THE CITY OF SANGER, DENTON COUNTY, TEXAS, (BUDGET AMENDMENT 1) AMENDING ORDINANCE #09-26-18, WHICH WILL AMEND THE BUDGET FOR THE 2018-2019 FISCAL YEAR AND AUTHORIZING AMENDED EXPENDITURES AS PROVIDED; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING FOR PUBLICATION; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council approved the budget ordinance for the 2017-2018 Fiscal Year on September 17, 2018; and WHEREAS, this amendment was prepared and presented to the City Council and after consideration, it is the consensus of the City Council to amend the approved budget ordinance; and NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS: Section 1: The annual budget for the 2018-2019 Fiscal Year is hereby amended to increase expenditures in the Enterprise Capital Projects fund by $188,819.42 as shown in Exhibit “A”. Section 2: The annual budget for the 2018-2019 Fiscal Year is hereby amended to increase expenditures in the Capital Projects fund by $190,000.00 as shown in Exhibit “B”; Section 3: The annual budget for the 2018-2019 Fiscal Year is hereby amended to increase expenditures in the 4A fund by $260,000.00 as shown in Exhibit “C”’ Section 4: Expenditures during the 2018-2019 Fiscal Year shall be made in accordance with the amended budget approved herein, unless otherwise authorized by a duly enacted ordinance of the City and said budget document shall be on file for public inspection in the office of the City Secretary. Section 5: If any section, article, paragraph, sentence, clause, phrase or word in this ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of the ordinance and the City Council hereby declares it would have passed such remaining portions of the ordinances despite such invalidity, which remaining portions shall remain in full force and effect. Section 6: This ordinance is effective immediately from and after its passage and the publication of the caption, as the law and Charter in such cases provide. PASSED, APPROVED AND ADOPTED by the City Council of the City of Sanger, Denton County, Texas, on this 1st day of July 2019. APPROVED: ____________________________________ Thomas E. Muir, Mayor ATTEST: _________________________________ Cheryl Price, City Secretary Page 40 MEMORANDUM To: Alina Ciocan, City Manager From: Clayton Gray, Finance Director Date: July 11, 2019 Re: Sewer Replacement along Peach Street On May 6, 2019, the City Council unanimously approved the sewer replacement project along Peach Street at a cost of $188,8919.42. The minutes of that meeting are attached to this memo. To provide funding for this project, the Enterprise Capital Project Fund Budget should be amended by $188,819.42. Exhibit "A" Page 41 CITY OF SANGER, TEXAS MINUTES: REGULAR CITY COUNCIL MEETING May 6, 2019, 7:00 p.m. 502 Elm Street, Sanger, Texas COUNCIL MEMBERS PRESENT: Mayor Thomas Muir; Mayor Pro Tem Gary Bilyeu; Councilmember Allen Chick; Councilmember Bill Boutwell; Councilmember Lee Allison; Councilmember David Clark. COUNCIL MEMBERS ABSENT: None. The Mayor and five Council Members were present constituting a quorum. STAFF MEMBERS PRESENT: City Manager Alina Ciocan; Public Works Director Jim Berman; Director of Development Services Ramie Hammonds; City Planner Muzaib Riaz; City Engineer Tracy LaPiene; Shani Bradshaw, Economic Development Director; Cheryl Price, City Secretary. 1. Call Meeting to Order, Invocation, Pledge of Allegiance. Mayor Muir called the Regular City Council Meeting to order on May 6th, 2019 at 7:02 p.m. Councilmember Allison gave the Invocation and Councilmember Boutwell led the Pledge of Allegiance. 2. Citizens Input: (Citizens are allowed 3 minutes to speak. The City Counc il is unable to respond or to discuss any issues brought up during this section). Mr. Cliff McLeod, 4910 Sanger Circle Drive was recognized. He noted he lived in Denton for forty years and his wife was the special events coordinator for the City of Denton for 30 years. He noted that he can not figure out how why his sewer bill was more than his water bill when it is based on the water usage. Also, he wanted to know why he received a Public Notice regarding a variance request on some duplexes near his home and they were already building them. Mayor Muir noted that the Council could not comment on the Citizens Participation and that staff would contact him regarding the issues he mentioned. 3. CONSENT AGENDA: a) Approval of Minutes 1) City Council Work Session, April 15, 2019. 2) Regular City Council Meeting, April 15, 2019. A motion was made by Councilmember Boutwell to approve the Consent Agenda as presented. The motion was seconded by Councilmember Clark. The motion to approve carried unanimously (5-0). 4. Consider Any Items Removed from Consent Agenda. No items were removed. Page 42 PROCLAMATIONS Presentation of Items 5 and 6 were switched. 5. (6) Consider, Discuss, Possibly Approve and Present Proclamation #05-02-2019 Proclaiming the Month of May as Motorcycle Awareness Month in the City of Sanger. A motion was made by Mayor Pro Tem Bilyeu to approve and present Proclamation #05- 02-2019 proclaiming the Month of May as Motorcycle Awareness Month in the City of Sanger. The motion was seconded by Councilmember Clark. The motion carried unanimously (5-0 vote). Mayor Muir read Proclamation #05-02-2019 proclaiming the month of May as Motorcycle Awareness Month in the City of Sanger, urging all residents to do their part to increase safety and awareness in our community. There was no one present at the meeting to accept the proclamation. 6. (5) Consider, Discuss, Possibly Approve and Present Proclamation #05-01-2019 Proclaiming May 6th, 2019 as Children’s Mental Health Awareness Day in the City of Sanger. A motion was made by Mayor Pro Tem Bilyeu to approve and present Proclamation #05- 01-2019 proclaiming May 6th, 2019 as Children’s Mental Health Awareness Day in the City of Sanger. The motion was seconded by Councilmember Clark. The motion carried unanimously (5-0 Vote). Mayor Muir read Proclamation #05-01-2019 Proclaiming May 6th, 2019 as Children’s Mental Health Awareness Day in the City of Sanger, encouraging all citizens to support these organizations as they promote the mental well-being of children, youth, and families in our community. The presentation of the proclamation was given after; and, in conjunction with Item #7 below. Also present for receipt of the Proclamation were: Pam Gutierrez (Executive Director of Denton County MHMR), Terry Donsbach (Works with the Children’s Advocacy Center and is the Leadership Representative from Watch Coalition and Behavioral Health Leadership Team), and Phyliss Finley (Business Development Coordinator for Denton County MHMR). REGULAR AGENDA 7. Presentation for Children’s Advocacy Center for Denton County, presented by Troy Hamm, Board Member. Troy Hamm, Children’s Advocacy Board Member was recognized and summarized thanked the City for its ongoing support and provided updates and statistics to the Mayor and City Council on the Children’s Advocacy Center. Proclamation #05-01-2019 proclaiming May 6th, 2019 as Children’s Mental Health Awareness Day in the City of Sanger which was read as Item #6 was presented at this time. Page 43 8. Conduct a Public Hearing Regarding a Replat of Lots 1R, and Lot 2R, Block A, L.L. & T. Addition, Being a Replat of Lot 1, Block 1, L.L.&T. Addition, Being 7.026 Acres in the Reuben Bebee Survey A-29, and Being in the Extraterritorial Jurisdiction (ETJ) of the City of Sanger, Generally Located North of FM 455 and Approximately 1300 Feet East of the Intersection of Union Hill Road and FM 455. Mayor Muir opened the public hearing at 7:26 PM soliciting any input from citizens in the audience. There being no citizens approaching the podium to speak, the public hearing was closed at 7:27 PM. 9. Consider, Discuss and Act on the Replat of Lots 1R, and Lot 2R, Block A, L.L. & T. Addition, Being a Replat of Lot 1, Block 1, L.L.&T. Addition, Being 7.026 Acres in the Reuben Bebee Survey A-29, and Being in the Extraterritorial Jurisdiction (ETJ) of the City of Sanger, Generally Located North of FM 455 and Approximately 1300 Feet East of the Intersection of Union Hill Road and FM 455. Director of Development Services Ramie Hammonds was recognized to summarize. She advised that this is the same plat that staff has seen before. The applicant is also present if there are any questions. There was brief discussion regarding the easement and Ms. Hammonds noted that the easement is remaining untouched as was discussed at the previous presentation of this item. Mayor Pro Tem Bilyeu wanted to note that the easement would provide access all the way to the back half the property to provide for possible future development of the property. The letter received in opposition from the Freemans in the original request has been addressed. City Planner Muzaib Riaz stated that the Freeman’s attended the Planning and Zoning Commission meeting and indicated that their concerns have been satisfied. A motion was made by Mayor Pro Tem Bilyeu to approve the replat of Lots 1R, and Lot 2R, Block A, L.L. & T. Addition, being a replat of Lot 1, Block 1, L.L.&T. Addition, being 7.026 acres in the Reuben Bebee Survey A-29, and being in the Extraterritorial Jurisdiction (ETJ) of the City of Sanger, generally located north of FM 455 and approximately 1300 feet East of the intersection of Union Hill Road and FM 455. The motion to approve was seconded by Councilmember Boutwell. The motion carried unanimously (5-0 vote) 10. Consider, Discuss and Possibly Act on a Contract with NO-DIGTEC, LLC on a Potential Sewer Replacement Project Along Peach Street at a Cost of $188,819.42 and Authorize Director of Public Works to Execute Agreement. Public Works Director, Jim Berman was recognized to present the item. He noted this technique was presented at the work session and the request will replace the sewer line along Peach Street from 10th Street to 5th Street. It has been determined that we should take a proactive approach to replace and upsize this line. They propose to use NO-DIGTEC and the TIPS Program to perform a pipe-bursting project along Peach Street to upsize the pipe from six-inch (6”) clay tile to eight-inch PVC line and install four new manholes. He provided a rendering of the proposed work and noted that he requested a 2% Maintenance bond on the project since this was the first project they are doing in Sanger. City Manager Alina Ciocan noted that the funding for this project will be from the CIP Page 44 Enterprise Funds. Mayor Pro Tem Bilyeu asked when he anticipated doing this project. Public Work Director Jim Berman noted it would be in June and it should take about three weeks. It was noted that school would be out so it would be a good time to get it done. It was also noted that residents would be notified by doorhangers and various other ways, such as website, news releases and social media, etc. There was brief general discussion on the time and logistics of the project. A motion was made by Councilmember Boutwell to approve the contract with NO- DIGTEC, LLC on a potential sewer replacement project along Peach Street at a cost of $188,819.42 and authorize Director of Public Works to execute agreement. The motion was seconded by Mayor Pro Tem Bilyeu. The motion carried unanimously (5-0 vote). 11. Consider, Discuss and Possibly Act on Resolution No. 05-08-19 of the City of Sanger Texas authorizing signatures for banking services on behalf of the City of Sanger Texas; providing for an Effective Date. This is the final step on the banking services. City Manager Alina Ciocan noted that with this contract, the bank is updating their files and needs to have new signature cards. A motion was made by Mayor Pro Tem Bilyeu to approve Resolution No. 05-08-19 of the City of Sanger Texas authorizing signatures for banking services on behalf of the City of Sanger Texas; providing for an effective date. the motion was seconded by Councilmember Clark. The motion to approve carried unanimously (5-0 vote). 12. Consider, Discuss and Possibly Act on Resolution No. 05-07-19 of the City Council of the City of Sanger, Texas, Ratifying a Contract for the Emergency Repair of Water Well; Making Findings Exempting Such Contract From the Requirements of Competitive Bidding, and Providing an Effective Date. Public Works Director Jim Berman was recognized. He noted that the city experienced a major water well failure in 2019 and it was necessary to preserve the public heal, safety and welfare due to unforeseen damages to the city’s water well #8. It was necessary to get a contractor in and pull the pump and motor and replace it. It was out of warranty. It was the same contractors who did well #9 did well #8 and we have not had any problems with well #9. There have been some modifications to the depth of the well and to try to keep sand out of the system. We got it back up and running and it ran for about a month and it burned up again, but was under warranty and was replaced under that warranty. Basically this request was an emergency, we made the repair and we have to come back with a Resolution ratifying it as an emergency because we had to spend over $50,000. The actual cost was $52,716.25. There was brief discussion as to what may be causing the problems. Public Works Direct Jim Berman noted that the monies to fund this project were pulled from the Acker Water Tower painting project. Mayor Pro Tem Bilyeu noted concern that they have been talking about painting the water tower since he has been on the Council and noted his concern regarding maintenance of the water tower. Page 45 A motion was made by Councilmember Boutwell to approve Resolution No. 05-07-19 of the City Council of the City of Sanger, Texas, ratifying a contract for the emergency repair of water well; making findings exempting such contract from the requirements of competitive bidding, and providing an effective date. The motion was seconded by Mayor Pro Tem Bilyeu. The motion carried unanimously (5-0 vote). 13. Consider, Discuss and Possibly Act on Authorization to Utilize the Interlocal Purchasing Agreement With the City of Grand Prairie for Contract for Services with Reynolds Asphalt & Construction Company for Street Reconstruction of 11th Street from Elm to Hughes, 12th Street from Elm to Bolivar, 13th Street from Bolivar to Hughes, and Hughes from 10th Street to the Service Road at an Amount Not to Exceed $120,000. Public Works Director Jim Berman was recognized and noted there was a work session with Council in January where he summarized the benefits of the Master Interlocal Agreement with Grand Prairie. This is one of the projects that was being discussed at that time. Staff proposes to move forward with Reynolds Asphalt. He noted that the cost estimates add up to $106,249.20; and, that there may be a few unknowns that are not included and noted that he does not intend to spend more than $120,000. He noted they are going to make the road as wide as they can in the City’s right-of-way platform. There was discussion as to how they were going to reconstruct the roads. They are planning on milling them up and use either lime or cement stabilization which will be based on the PH of the soil and they will then be over-laid with two inches of asphalt. It was noted this project is also projected to start in June and it should be done before school starts. It was noted that all of the homeowners would be notified with door knockers. It will also be put on the social media and on the website. A motion was made by Mayor Pro Tem Bilyeu to authorize utilizing the Interlocal Purchasing Agreement with the City of Grand Prairie for contract for services with Reynolds Asphalt & Construction Company for street reconstruction of 11th Street from Elm to Hughes, 12th Street from Elm to Bolivar, 13th Street from Bolivar to Hughes, and Hughes from 10th Street to the Service Road at an Amount Not to Exceed $120,000. The motion was seconded by Councilmember Clark. The motion carried unanimously (5-0 vote). 14. EXECUTIVE SESSION: CLOSED MEETING Pursuant to the Open Meetings Act, Chapter 551, the City Council Will Meet in a Closed Executive Session in Accordance with the Texas Government Code: - Section 551.074 – Personnel Matters (City Manager Annual Performance Review) Mayo r Muir read the Item #14 and convened into Executive Session at 7:54 PM. 15. RECONVENE: OPEN MEETING Any Action Taken. Page 46 Mayor Muir reconvened calling the City Council Meeting back into regular session at 9:23 PM. A motion was made by Mayor Pro Tem Bilyeu to approve amending the City Manager’s contract as discussed in the Executive Session. The motion was seconded by Councilmember Clark. The motion carried unanimously (5-0 vote). 16. INFORMATION ITEMS: a) Disbursements for April 2019. 17. FUTURE AGENDA ITEMS: (The purpose of this item is to allow the Mayor and members of Council to bring forward items they wish to discuss at a future meeting, A Council Member may inquire about a subject for which notice has not been given. A statement of specific factual information or the recitation of existing policy may be given. Any deliberation shall be limited to a proposal to place the subject on an agenda for a subsequent meeting. Items may be placed on a future meeting agenda with a consensus of the Council or at the call of the Mayor). Councilmember Chick noted that he would like to what the status is on the strategy plan since it is getting to be mid-year. Mayor Pro Tem Bilyeu – Downtown Development and Code Enforcement. 18. ADJOURN. There being no further discussion, Mayor Muir adjourned the meeting at 9:27 p.m. Page 47 July 11, 2019 To: Clayton Gray Finance Director Ref: Budget Amendment Clayton, At our, May 20, 2019, City Council Work Shop staff was asked to combine the 2019 & 2020 street reconstruction project list and complete the program all in 2019. Combining the 2020 street reconstruction, and adding the Peach St project from the 2021 project list with the 2019 plans would require a budget amendment in the amount of 190,000 to the Fy 2018-2019 budget. If there is a funding source for this amendment, I would like to bring this amendment forward to the council at our next scheduled council meeting. Sincerely, James Berman Director of Public Works Cc: Alina Ciocan, City Manager Exhibit "B" Page 48 MEMORANDUM To: Alina Ciocan, City Manager From: Clayton Gray, Finance Director Date: July 9, 2019 Re: Projects funded by 2009 Bond Proceeds On May 7, 2019, the 4A Sanger Industrial Development Corporation board members voted unanimously to pay off the loan on the warehouse at 103 Bolivar Street. The loan payoff amount is $269,178. The loan has a maturity date of June 5, 2024, and paying off the loan early will save approximately $32,000 in interest over the next several years. The original 4A budget included $61,267 for monthly loan payments throughout the year. Ten payments have been made so far, and the remaining budget balance is $10,212. The budget adjustment required for the payoff is $258,966. Loan Payoff Amount $269,178 Budget Balance 10,212 Budget Adjustment Required $258,966 Exhibit "C" Page 49 1 Clayton Gray From:Kellie Lane (146) <Kellie.Lane@prosperitybankusa.com> Sent:Monday, July 8, 2019 5:03 PM To:Clayton Gray Subject:Loan Categories:Red Category Mr. Gray I am showing pay off on the loan ending in #2034 is $269,177.60 this quote is good thru 07/19/2019. Thank you Kellie Lane Vice President & Lobby Manager Sanger Banking Center 1100 N Stemmons FWY Sanger, TX 76266 (940)458-7404 main (940)458-3536 fax kellie.lane@prosperitybankusa.com ________________________________________ This transmission may contain information that is privileged, confidential and or exempt from disclosure under applicable law. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or use of the information contained herein (including any reliance thereon) is STRICTLY PROHIBITED. If you received this transmission in error, please immediately contact the sender and destroy the material in its entirety, whether in electronic or hard copy format. Thank you. This transmission may contain information that is privileged, confidential and or exempt from disclosure under applicable law. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or use of the information contained herein (including any reliance thereon) is STRICTLY PROHIBITED. If you received this transmission in error, please immediately contact the sender and destroy the material in its entirety, whether in electronic or hard copy format. Thank you. Page 50 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. 8.a. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: Clayton Gray, Finance Director IT E M/C AP T IO N: Capital P rojects Recap - J uly 3, 2019 C apital P rojec ts R ecap - July 3, 2019 AG E N D A T YP E : AC T IO N R E Q UE S T E D: O ther: B AC KG R O UN D: N/A LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: N/A F UN D S : N/A S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: Informatio nal Item. AT TAC HME N T S : Des criptio n Up lo ad Date Type C ap ital P ro jects R eport July 3, 2019 7/3/2019 C over Memo Page 51 C U R R E N T P R O J E C T S Project Number Project Description % Complete Contract Change Orders Total Budget Actual to Date Contract Change Orders Preliminary Estimate Total Budget Actual to Date Budget Actual to Date Budget Actual to Date % C001 McReynolds Road Reconstruction 101%522,919$ -$ 522,919$ 486,313$ 6,275,332$ (138,473)$ -$ 6,136,859$ 6,172,965$ 125,619$ 125,619$ 6,785,396$ 6,784,897$ 100% E005 Wastewater Treatment Plant 91%995,203$ 313,402$ 1,308,605$ 1,161,496$ 10,992,845$ 125,121$ -$ 11,117,966$ 10,082,105$ 346,987$ 346,987$ 12,773,559$ 11,590,588$ 91% E008 Nitrification TBD 40,589$ 15,000$ 55,589$ 53,045$ 247,000$ (112,840)$ -$ 134,160$ 134,160$ -$ -$ 189,749$ 187,205$ 99% Total Projects Under Contract 1,558,711$ 328,402$ 1,887,113$ 1,700,854$ 17,515,177$ (126,191)$ -$ 17,388,985$ 16,389,230$ 472,606$ 472,606$ 19,748,704$ 18,562,690$ 94% U P C O M I N G P R O J E C T S Project Number Project Description % Complete Contract Change Orders Total Budget Actual to Date Contract Change Orders Preliminary Estimate Total Budget Actual to Date Budget Actual to Date Budget Actual to Date % E006 Railroad Lift Station TBD 69,966$ 589,300$ 659,266$ 618,594$ -$ -$ 4,498,500$ 4,498,500$ -$ 7,336$ 7,336$ 5,165,102$ 625,930$ 12% E009 Gravity and Outfall Pipelines TBD 242,300$ -$ 242,300$ 213,465$ -$ -$ 3,908,000$ 3,908,000$ 1,668$ 16,312$ 16,312$ 4,166,612$ 231,445$ 6% E010 Relocation of FM455 Utilities TBD 250,000$ -$ 250,000$ 18,702$ -$ -$ 2,500,000$ 2,500,000$ -$ -$ -$ 2,750,000$ 18,702$ 1% Total Extimted Projects 562,266$ 589,300$ 1,151,566$ 850,761$ -$ -$ 10,906,500$ 10,906,500$ 1,668$ 23,648$ 23,648$ 12,081,714$ 876,077$ 7% A L L P R O J E C T S Project Number Project Description % Complete Contract Change Orders Total Budget Actual to Date Contract Change Orders Preliminary Estimate Total Budget Actual to Date Budget Actual to Date Budget Actual to Date % Grand Totals 2,120,977$ 917,702$ 3,038,679$ 2,551,615$ 17,515,177$ (126,191)$ 10,906,500$ 28,295,485$ 16,390,898$ 496,254$ 496,254$ 31,830,418$ 19,438,767$ 61% CAPITAL PROJECTS RECAP July 3, 2019 E N G I N E E R I N G C O N S T R U C T I O N O T H E R T O T A L SP R O J E C T P R O J E C T E N G I N E E R I N G C O N S T R U C T I O N O T H E R T O T A L S P R O J E C T E N G I N E E R I N G C O N S T R U C T I O N O T H E R T O T A L S Page 52 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. 8.b. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: Clayton Gray, Finance Director IT E M/C AP T IO N: Monthly F inancial Report - May 31, 2019 Mo nthly F inanc ial R eport - May 31, 2019 AG E N D A T YP E : AC T IO N R E Q UE S T E D: B AC KG R O UN D: N/A LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: N/A F UN D S : N/A S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: Informatio nal Item, AT TAC HME N T S : Des criptio n Up lo ad Date Type F inancial R ep o rt May 31, 2019 7/3/2019 C over Memo Page 53 Expenditure Category Annual Budget Expenditures & Encumbrances Percent of Budget Salaries & Benefits 6,110,292$ 3,583,877$ 59% Supplies & Materials 592,054 329,134 56% Maintenance & Operations 7,189,809 4,593,995 64% Contract Services 1,948,074 1,299,150 67% Utilities 524,050 293,615 56% Capital Expenses 542,822 178,188 33% Debt Service 1,759,439 1,046,190 59% Other Department Expense 117,906 24,667 21% Transfers 1,032,720 913,480 88% Total 19,817,166$ 12,262,296$ 62% May 31, 2019 Combined General & Enterprise Fund Expenditures by Classification MONTHLY FINANCIAL REPORT This is the financial report for the period ended May 31,2019.Revenues and expenditures reflect activity from October 1,2018 through May 31,2019 or sixty-seven percent (67%)of the fiscal year. GENERAL FUND The General Fund has collected eighty-four percent (84%)of projected revenues.All revenues are performing within projections. Year to date General Fund expenditures are fifty-eight percent (58%)of the annual budget.All expenditure categories are within projections. ENTERPRISE FUND The Enterprise Fund has collected sixty-three percent (63%)of projected revenues.All revenue categories are performing within projections. Year to date Enterprise Fund expenditures are sixty-two percent (62%)of the annual budget.All expenditure categories are within projections. Page 1 of 11 Page 54 Annual Budget Year to Date Actual % of Budget Budget Balance Operating Revenues Property Taxes 3,631,116$ 3,714,470$ 102%(83,354)$ Sales & Beverage Taxes 905,000 579,671 64%325,329 Franchise Fees 851,668 599,647 70%252,021 Solid Waste 850,500 605,557 71%244,943 Licenses & Permits 363,070 229,796 63%133,274 Fines & Forfeitures 112,000 49,768 44%62,232 Department Revenues 887,893 610,536 69%277,357 Interest & Miscellaneous 81,500 29,555 36%51,945 Total Operating Revenues 7,682,747 6,419,000 84%1,263,747 Operating Expenditures Administration 609,320 363,117 60%246,203 Police & Animal Control 1,836,453 1,152,428 63%684,025 Fire & Ambulance 1,602,234 653,112 41%949,122 Municipal Court 199,095 113,894 57%85,201 Development Services 422,852 262,120 62%160,732 Streets 748,689 437,082 58%311,607 Parks & Recreation 668,058 434,855 65%233,203 Library 290,499 184,732 64%105,767 Solid Waste 770,000 553,923 72%216,077 Total Operating Expenditures 7,147,200 4,155,263 58%2,991,937 Revenues Over (Under) Expenditures 535,547 2,263,737 (1,728,190) Transfers Transfer In From Enterprise Fund - - 0%- Transfer In From Enterprise Fund - PILOT 85,000 56,667 67%28,333 Transfer In From Debt Service Fund 129,352 - 0%129,352 Transfer Out To Capital Projects Fund (675,000) (675,000) 100%- Total Transfers (460,648) (618,333) 157,685 Net Change in Fund Balance 74,899$ 1,645,404$ (1,570,505)$ Fund Balance, Beginning of Year 1,745,609 1,745,609 - Fund Balance, End of Year 1,820,508$ 3,391,013$ (1,570,505)$ CITY OF SANGER, TEXAS GENERAL FUND REVENUE & EXPENDITURES May 31, 2019 64% 71% 70% 64% 102% 0%25%50%75%100% Other Revenues Solid Waste Franchise Fees Sales & Beverage Taxes Property Taxes General Fund Revenues: Actual to Budget YTD Actual Budget 72% 64% 65% 58% 62% 57% 41% 63% 60% 0%25%50%75%100% Solid Waste Library Parks & Recreation Streets Development Services Municipal Court Fire & Ambulance Police & Animal Control Administration General Fund Expenditures: Actual to Budget YTD Actual Budget Page 2 of 11 Page 55 CITY OF SANGER, TEXAS GENERAL FUND 3-YEAR REVENUE TRENDS May 31, 2019 $- $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 $2,250,000 $2,500,000 $2,750,000 $3,000,000 $3,250,000 $3,500,000 $3,750,000 $4,000,000 CURRENT PROPERTY TAX REVENUE 2018-2019 2017-2018 2016-2017 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 SALES & BEVERAGE TAX REVENUE 2018-2019 2017-2018 2016-2017 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 FRANCHISE FEE REVENUE 2018-2019 2017-2018 2016-2017 Page 3 of 11 Page 56 Annual Budget Year to Date Actual % of Budget Budget Balance Operating Revenues Water 2,027,811$ 1,297,791$ 64%730,020$ Wastewater 1,964,975 1,280,762 65%684,213 Electric 7,701,930 4,560,930 59%3,141,000 Penalties & Fees 217,000 129,630 60%87,370 Interest 15,000 33,946 226%(18,946) Miscellaneous 68,250 194,062 284%(125,812) Total Operating Revenues 11,994,966 7,497,121 63%4,497,845 Operating Expenditures Administration 1,421,745 847,273 60%574,472 Water 1,369,657 808,580 59%561,077 Wastewater 713,657 376,789 53%336,868 Electric 6,558,565 4,166,257 64%2,392,308 Debt Service 1,573,622 994,655 63%578,967 Total Operating Expenditures 11,637,246 7,193,554 62%4,443,692 Revenues Over (Under) Expenditures 357,720 303,567 54,153 Transfers Out Transfer to General Fund - - 0%- Transfer to 4A - - 0%- Transfer to WW CIP Reserve 156,800 104,533 67%52,267 Transfers to Storm Recovery Fund 115,920 77,280 67%38,640 Transfer to General Fund - PILOT 85,000 56,667 67%28,333 Total Transfers Out 357,720 238,480 119,240 Net Change in Fund Balance -$ 65,087$ (65,087)$ Fund Balance, Beginning of Year 3,982,069 3,982,069 - Fund Balance, End of Year 3,982,069$ 4,047,156$ (65,087)$ CITY OF SANGER, TEXAS ENTERPRISE FUND REVENUE & EXPENDITURES May 31, 2019 119% 59% 65% 64% 0%25%50%75%100% Other Income Electric Wastewater Water Enterprise Fund Revenues: Actual to Budget YTD Actual Budget 63% 64% 53% 59% 60% 0%25%50%75%100% Debt Service Electric Wastewater Water Administration Enterprise Fund Expenditures: Actual to Budget YTD Actual Budget Page 4 of 11 Page 57 CITY OF SANGER, TEXAS ENTERPRISE FUND 3-YEAR REVENUE TRENDS May 31, 2019 $- $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 $2,250,000 WATER SALES REVENUE 2018-2019 2017-2018 2016-2017 $- $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 WASTE WATER SALES REVENUE 2018-2019 2017-2018 2016-2017 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 ELECTRIC SALES REVENUE 2018-2019 2017-2018 2016-2017 Page 5 of 11 Page 58 Name General Fund Enterprise Fund Debt Service Fund Capital Projects Fund Total UNRESTRICTED Cash for Operations 2,934,756$ 2,063,132$ -$ -$ 4,997,888$ Contingency Reserves for Operations 1,019,989 1,016,779 - - 2,036,768 TOTAL UNRESTRICTED 3,954,745$ 3,079,911$ -$ -$ 7,034,656$ RESTRICTED Debt Service -$ 643,388$ 918,273$ -$ 1,561,661$ Water Deposits - 432,201 - - 432,201 Equipment Replacement 220,286 118,953 - - 339,239 Electric Storm Recovery - 1,045,164 - - 1,045,164 Hotel Occupancy Tax 46,641 - - - 46,641 Grant Funds 9,326 9,326 Keep Sanger Beautiful (KSB)5,526 - - 5,526 Library 96,210 - - - 96,210 Court Security 9,474 - - - 9,474 Court Technology (227) - - - (227) Child Safety Fee 35,944 35,944 Donations 15,198 - - - 15,198 TOTAL RESTRICTED 438,378$ 2,239,706$ 918,273$ -$ 3,596,357$ CAPITAL PROJECTS General Capital Projects -$ -$ -$ 1,814,377$ 1,814,377$ Enterprise Capital Projects - - - 7,414,815 7,414,815 TOTAL CAPITAL PROJECTS -$ -$ -$ 9,229,192$ 9,229,192$ TOTAL CASH AND INVESTMENTS 4,393,123$ 5,319,617$ 918,273$ 9,229,192$ 19,860,205$ May 31, 2019 CASH AND INVESTMENTS CITY OF SANGER, TEXAS Debt Service 36%Water Deposits 10% Equipment Replacement 8% Electric Storm Recovery 24% Other 22% Restricted Unrestricted 34% Restricted 21%Capital Projects 45% Total Cash & Investments Cash for Operations 71% Contingency Reserves for Operations 29% Unrestricted General Capital Projects 20% Enterprise Capital Projects 80% Capital Projects Page 6 of 11 Page 59 Name Acct. #Maturity Yield Prior Period Current Balance Pooled Cash 001-00-1000 0.05%4,922,690$ 4,880,643$ Employee Benefits Cash 110-00-1000 0.20%20,802 20,802 Employee Benefits MM 110-00-1010 0.20%81,157 32,694 Internal Service Fund 180-00-1000 188,574 183,858 OPERATING ACCOUNTS 5,213,223$ 5,117,997$ GF Contingency Reserve MM 2487969 001-00-1031 0.20%595,935$ 596,796$ GF Contingency Reserve CD Prosperity 001-00-1039 4/26/2020 0.55%211,087 211,087 GF Contingency Reserve CD 674907 001-00-1043 7/13/2019 0.45%211,993 212,106 CONTINGENCY RESERVE 1,019,015$ 1,019,989$ *GF Equipment Replacement MM 2376237 001-00-1032 0.20%155,895$ 156,545$ *GF Equipment Replacement CD 719706 001-00-1033 7/6/2019 0.45%63,707 63,741 EQUIPMENT REPLACEMENT RESERVES 219,602$ 220,286$ *Hotel Occupancy Tax 050-00-1000 45,949$ 46,641$ *Police Grant Fund 320-00-1000 9,326 9,326 *Fire Grant Fund 324-00-1000 45,345 45,345 *Library Grant Fund 342-00-1000 14 14 *Beautification Board - KSB 432-00-1000 5,526 5,526 *Library Restricted for Building Expansion 442-00-1000 44,604 44,604 *Library Building Expansion CD 702994 442-00-1035 1/22/2020 0.45%51,574 51,606 *Parkland Dedication Fund 450-00-1000 22,598 38,216 *Roadway Impact Fee Fund 451-00-1000 509,551 518,551 *Court Security Restricted Fund 470-00-1000 9,393 9,474 *Court Technology Restricted Fund 471-00-1000 (210) (227) *Child Safety Fee Fund 475-00-1000 35,944 35,944 *Police Donations 620-00-1000 78 78 *Fire Donations 624-00-1000 6,000 6,000 *Banner Account for Parks 632-00-1000 3,061 3,061 *Library Donations 642-00-1000 6,054 6,059 OTHER 794,807$ 820,218$ TOTAL CASH AND INVESTMENTS 7,246,647$ 7,178,490$ TOTAL UNRESTRICTED 6,232,238$ 6,137,986$ *Restricted Funds GENERAL FUND May 31, 2019 CASH AND INVESTMENTS Page 7 of 11 Page 60 Name Acct. #Maturity Yield Prior Period Current Balance Pooled Cash 008-00-1010 0.05%2,539,316$ 2,063,132$ OPERATING ACCOUNTS 2,539,316$ 2,063,132$ *Pooled Cash 008-00-1010 0.05%136,164$ 132,201$ *Water Deposit CD 2375850 008-00-1041 1/3/2020 0.45%300,000 300,000 WATER DEPOSIT REFUND ACCOUNT 436,164$ 432,201$ *Combined EF Debt Service MM 2376113 008-00-1039 0.20%562,580 643,388 BOND FUNDS 562,580$ 643,388$ EF Contingency Reserve MM 2809753 008-00-1012 0.20%594,462$ 595,320$ EF Contingency Reserve CD 787860 008-00-1014 2/14/2020 0.45%314,815 315,009 EF Reserve CD 642541 008-00-1040 9/25/2020 0.45%106,385 106,450 CONTINGENCY RESERVES 1,015,662$ 1,016,779$ *EF Storm Recovery MM- 2% Electric Rev 008-00-1033 0.20%1,034,011$ 1,045,164$ *EF Equipment Replacement MM 2376202 008-00-1034 0.20%118,425 118,953 OTHER 1,152,436$ 1,164,117$ TOTAL CASH AND INVESTMENTS 5,706,158$ 5,319,617$ TOTAL UNRESTRICTED 3,554,978$ 3,079,911$ *Restricted Funds ENTERPRISE FUND May 31, 2019 CASH AND INVESTMENTS Page 8 of 11 Page 61 Name Acct. #Maturity Yield Prior Period Current Balance *Pooled Cash 003-00-1000 0.05%1,016,958$ 860,989$ *DSF Money Market 2376105 003-00-1010 0.20%57,202 57,284 TOTAL RESTRICTED 1,074,160$ 918,273$ Name Acct. #Maturity Yield Prior Period Current Balance *Pooled Cash 004-00-1000 0.05%1,545,989$ 1,814,377$ TOTAL RESTRICTED 1,545,989$ 1,814,377$ Name Acct. #Maturity Yield Prior Period Current Balance *Sewer Capital Improvements MM-10% Rev 840-00-1020 0.20%805,576$ 819,805$ *Sewer Capital Reserve MM 2380226 Tap Fees 840-00-1038 0.20%1,213,746 1,233,498 *SEWER CAPITAL RESERVE - TAP FEES 2,019,322$ 2,053,303$ *Water Capital Reserve MM 2376156 840-00-1037 0.20%1,032,191$ 1,047,181$ *Pooled Cash 840-00-1000 0.05%2,455,112 2,255,274 *General CIP Money Market 2674823 840-00-1013 0.05%2,056,089 2,059,057 TOTAL RESTRICTED 7,562,714$ 7,414,815$ *Restricted Funds ENTERPRISE CAPITAL PROJECTS FUND GENERAL CAPITAL PROJECTS FUND DEBT SERVICE FUND DEBT SERVICE & CAPITAL PROJECTS CASH AND INVESTMENTS May 31, 2019 Page 9 of 11 Page 62 Name Acct. #Maturity Yield Prior Period Current Balance *Pooled Cash 41-00-1000 0.05%379,904$ 414,364$ *Cash NOW 900020693 Prosperity 41-00-1010 0.05%346,669 341,593 *4A MM 902551273 Prosperity 41-00-1012 0.20%474,187 474,616 *Sanger TX Ind Corp CD 486639 41-00-1013 11/2/2019 0.25%95,094 95,182 TOTAL CASH AND INVESTMENTS 1,295,854$ 1,325,755$ Name Acct. #Maturity Yield Prior Period Current Balance *Pooled Cash 42-00-1000 0.05%784,222$ 827,356$ *Cash MM 2379694 42-00-1010 0.05%189,768 190,042 *4B CD 653500 42-00-1013 4/3/2020 0.45%21,915 21,928 *4B CD 659924 42-00-1014 11/12/2019 0.45%21,665 21,676 *4B CD 664243 42-00-1015 6/5/2019 0.45%21,750 21,762 *4B CD 673277 42-00-1016 7/9/2019 0.45%21,695 21,707 *4B CD 686115 42-00-1017 8/4/2019 0.45%21,697 21,711 *4B CD 689521 42-00-1018 9/11/2019 0.45%21,608 21,621 *4B CD 694371 42-00-1019 10/14/2019 0.45%21,681 21,694 *4B CD 697230 42-00-1020 11/17/2019 0.45%21,794 21,808 *4B CD 699934 42-00-1021 12/18/2019 0.45%21,708 21,721 *4B CD 702285 42-00-1022 1/31/2020 0.45%21,511 21,524 *4B CD 706078 42-00-1023 2/19/2020 0.45%21,411 21,425 *4B CD 720097 42-00-1024 2/9/2020 0.45%21,183 21,196 *4B CD 720119 42-00-1025 11/9/2019 0.45%21,207 21,221 TOTAL CASH AND INVESTMENTS 1,254,815$ 1,298,392$ *Restricted Funds 4B FUND 4A & 4B FUNDS May 31, 2019 CASH AND INVESTMENTS 4A FUND Page 10 of 11 Page 63 a. b. Clayton Gray Alina Ciocan Clayton Gray Alina Ciocan Finance Director City Manager Ethics Disclosure and Conflicts of Interest In accordance with the PFIA,investment officers are required to file a disclosure statement with the Texas Ethics Commission and the governing body if: the officer has a business relationship with a business organization offering to engage in an investment transaction with the City (as defined in 2256.005 (i) (1-3); or the officer is related within the second degree by affinity or consanguinity,as determined under Chapter 573 of the Texas Government Code,to an individual seeking to transact investment business with the entity. PFIA 2256.005 (i). CITY OF SANGER, TEXAS INVESTMENT REPORT May 31, 2019 The Monthly Investment Report is in full compliance with the objectives,restrictions,and strategies as set forth in the City of Sanger's Investment Policy and Texas Government Code 2256.023,the Public Funds Investment Act (PFIA). The City only invests in Money Market accounts and Certificates of Deposit.Interest is paid monthly on all accounts.Therefore,book value and market value are the same and the City does not have accrued interest on its investments. Page 11 of 11 Page 64 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. 8.c. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: S ara S exton, Animal Control Officer IT E M/C AP T IO N: All American Dogs Report All Americ an Do gs R ep o rt T hro ugh June 2019 AG E N D A T YP E : R egular AC T IO N R E Q UE S T E D: O ther: Informatio n Item. B AC KG R O UN D: Attac hed is the All Americ an Do gs R ep o rt thro ugh June 2019. LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: N/A F UN D S : N/A S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: N/A AT TAC HME N T S : Des criptio n Up lo ad Date Type All American Dogs through June 2019 7/10/2019 C over Memo Page 65 Page 66 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. 8.d. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: Cheryl P rice, City S ecretary IT E M/C AP T IO N: Disbursements - J une 2019 Disburs ements - June 2019 AG E N D A T YP E : R egular AC T IO N R E Q UE S T E D: O ther: Informatio nal B AC KG R O UN D: Attac hed are the d is b ursements fo r June 2019. LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: N/A F UN D S : N/A S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: N/A AT TAC HME N T S : Des criptio n Up lo ad Date Type Dis b ursements - June 2019 7/11/2019 C over Memo Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. 8.e. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: Cheryl P rice, City S ecretary IT E M/C AP T IO N: Atmos Energy Tariff Update to Atmos Energy C o rp o ration's C ons ervatio n and Energy Efficiency Tariff. AG E N D A T YP E : R egular AC T IO N R E Q UE S T E D: O ther: Informatio nal B AC KG R O UN D: S ee attac hed correspond enc e d ated June 26, 2019 from Atmos Energy in regard to their C ons ervatio n and Energy Effic ienc y Tariff. LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: N/A F UN D S : N/A S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: N/A AT TAC HME N T S : Des criptio n Up lo ad Date Type Atmos Energy Tariff 7/11/2019 C over Memo Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 C IT Y C O UN C IL AG E N D A ME MO AG E N D A IT E M N O. 8.f. AG E N D A ME E T IN G D AT E: J uly 15, 2019 TO: Alina Ciocan, City Manager F R O M: Cheryl P rice, City S ecretary IT E M/C AP T IO N: Atmos Energy Rider G C R R ider G C R - R ate F iling und er Doc ket No. 10170 AG E N D A T YP E : R egular AC T IO N R E Q UE S T E D: O ther: Informatio nal B AC KG R O UN D: S ee attac hed correspond enc e from Atmos Energy C orporatio n d ated June 26, 2019 regarding R id er G C R - R ate F iling under Do cket No . 10170. LE G AL/B O AR D C O MMIS S IO N R E C O MME N D AT IO N S /C IT IZE N N O T IC E F E E D B AC K: N/A F IN AN C IAL S UMMARY - F UN D IN G/F IS C AL IMPAC T: N/A F UN D S : N/A S TAF F R E C O MME N D AT IO N/AC T IO N D E S IR E D: N/A AT TAC HME N T S : Des criptio n Up lo ad Date Type Atmos Energy R id er G C R 7/11/2019 C over Memo Page 97 Page 98 Page 99