City of Canyon Commission Meetings

AGENDA NOTICE OF MEETING Notice is hereby given that the governing body of the City of Canyon will meet at 5:30 p.m. on the 21st day of April, 2014, in the Commission Chambers of City Hall at 301 16th Street in the City of Canyon to discuss the following agenda items: 1. Call to Order. 2. Invocation. 3. Approval of the Minutes of the Meeting of April 7, 2014. 4. Public Forum – Comments from Interested Citizens. 5. Presentation of Proclamation Honoring the Canyon High School Lady Eagles Basketball Team for Their State Championship. 6. Update from City Staff (4th Avenue Paving Project, Rockwell Road Well Field Project, City Hall Study, and Water Usage). 7. First Reading of Resolution No. 03-2014, A Resolution Approving a Project Funding Agreement Between the Canyon Economic Development Corporation and Canyon Main Street for Funding Year Two of the Comprehensive Marketing Plan for Canyon. 8. Consider and Take Appropriate Action on Interlocal Agreement with CISD for Playground Equipment Funding. 9. Conduct a Public Hearing and Consider and Take Appropriate Action on Ordinance No. 1003, Rezoning 700 4th Avenue, the West 35’ of Lot 1 and All of Lot 2, Block 9, Heller’s Addition to RC-1 (Retail District) from MF (Multi-Family Attached Residential District) and to Rezone 506 8th Street, All of Blocks 15 and 16, Lots 3 and 4 of Block 9, Heller’s Addition to RC-1 (Retail District) from 2F (Duplex Attached Residential District) 10. Presentation of TMRS Analysis Report by Will Harrell of Robert Harrell and Associates. 11. Consider and Take Appropriate Action on Quarterly Finance Report by Finance Director Chris Sharp. 12. Consider and Take Appropriate Action on Quarterly Investment Report by Finance Director Chris Sharp. 13. Executive Session Pursuant to Texas Government Code §551.072 Real Property and §551.087 for Economic Development Negotiations. 14. Consider and Take Appropriate Action on Items Discussed in Executive Session. 15. Adjournment. Randy Criswell, City Manager I certify that the above Notice of Meeting was posted on the bulletin board of the Civic Complex of the City of Canyon, Texas on the 18th day of April, 2014. City of Canyon City Commission Meeting April 7, 2014 The City Commission of the City of Canyon met in regular session at 5:30 p.m. in the City Commission Chambers of the Civic Complex. Mayor Quinn Alexander presided over the meeting with the following Commissioners in attendance: Mayor Pro-Tem Jed Welch, and David Logan. Gary Hinders was unable to attend, and Commissioner Behrens had recently tendered his resignation. Also present were the following City Staff: City Manager Randy Criswell, Code Enforcement Director Danny Cornelius, Business and Community Development Director Evelyn Ecker, Director of Public Works Dan Reese, Parks and Recreation Director Brian Noel, Fire Chief Mike Webb, Head Librarian Sandra Munger, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Alexander called the meeting to order at 5:27 p.m. Item 2. Invocation. Mayor Pro-Tem Welch gave the invocation. Item 3. Approval of Minutes of the Meeting of March 17, 2014. Commissioner Logan moved, duly seconded by Mayor Pro-Tem Welch, to approve the minutes of March 17, 2014. Motion carried unanimously. Item 4. Public Forum – Comments from Interested Citizens. No Comment was made. Item 5. Swear In Commissioner Place 5 to Fill Unexpired Term City Attorney Chuck Hester assisted with the swearing in of Commissioner Place 5 Justin Richardson, to fulfill the unexpired term resulting from the recent resignation of Jon Behrens. Item 6. Update from City Staff (4th Ave Paving Project, Rockwell Road Well Field Project, Drill Field, Hydrant Maintenance, Audit, and Water Usage). City Manager Randy Criswell gave brief updates on the following: Mr. Criswell said the 4th Avenue Paving Project is temporarily on hold. We are having a dispute with the contractor over the hot mix. He wants to use a product that contains recycled asphalt shingles, and is unproven in this area, and not in compliance with our specifications. We will have to work that out. Mr. Criswell reported the Rockwell Road project is undergoing bacteriological testing to make sure the piping and all components are disinfected. All is still on track to be ready to go online when needed. City Commission Meeting April 7, 2014 Page 2 of 2 Mr. Criswell stated the Drill Field project is about to go out for bids for the training tower. The Hydrant Maintenance and testing is complete for this year. Chief Webb informed the City Commission that he was very pleased with the performance of the contractor and plans to use them again in the future.. The City’s Auditors have completed their field work, and had met with Mr. Criswell and Mr. Sharp last week to go over a few things they still needed. There were no commitments made as to when the audit would be ready. Mr. Criswell informed the Commission that our daily water usage is nearing the 2.5 mgd range. This is not a problem for our system, but he just wanted to keep them informed. Item 7. Consider and Take Appropriate Action on the Submission of a Texas Forest Service Grant for Personal Protective Equipment and Training Library. Fire Chief Mike Webb presented a request for permission to submit an application for a grant from the Texas Forest Service to provide funding for Firefighting gear, Wildland gear, a training library, and tuition to cover training costs at the A&M Municipal School. The total match that would be required by the City is $1,680.00. Mayor Pro-Tem Welch moved, duly seconded by Commissioner Logan, to approve submission of the application. Motion carried unanimously. Item 8. Executive Session Pursuant to Texas Government Code §551.072 Real Property and §551.087 for Economic Development Negotiations. Mayor Alexander indicated the Commission would adjourn into executive session at 5:45 p.m. Item 9. Consider and Take Appropriate Action on Items Discussed in Executive Session. Upon returning from executive session at 6:58 pm, no action was taken Item 10. Adjournment There being no further business, Commissioner Logan moved this meeting be adjourned. __________________________ Quinn Alexander, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary  AGENDA To: Mayor and City Commission From: Evelyn Ecker, Business & Community Development Director Date: April 15, 2014 Re: First Reading of Resolution No. 03-2014 With Regards to Funding the Canyon Marketing Plan for 2014. We have just finished the first year of our comprehensive marketing plan for Canyon, with outstanding results. The goal of the Business & Community Development department of the City of Canyon and Main Street is to market the community and the attractions to the southern part of the state as well the tri-state area to the north, west, and east. Along with the focus and the goal to market Canyon collectively, it was the intent to increase the number of visitor to Canyon, increase hotel occupancy levels, and generate more revenue through the sales tax dollar. The attractions in Canyon had a very successful season for the year 2013. Over 60,000 people enjoyed the performance of TEXAS, Palo Duro Canyon State Park had record breaking numbers and the Panhandle Plains-Historical Museum had over 50,000 visitors. The total Sales Tax Revenue for the City of Canyon increased from 2012 to 2013 by $147,295. The increased revenue translates to $7,364,750 more in sales for our local businesses. I would like to believe that our market efforts played a part in the increase of visitors and revenue. The Canyon Marketing Plan effort is a partnership between the Canyon Economic Development Corporation, Canyon Main Street, and the Board of City Development who allocates the Hotel Occupancy Tax revenue for Canyon. Because of the partnership, $54,409 was pooled together from the above mentioned sources to nd develop and implement the 2 year of the three year plan. The Canyon EDC is proposing to fund $29,409 from the CEDC Marketing Account. This is the account that consists of 10% of our monthly sales tax revenue that is set aside specifically for marketing Canyon. The marketing plan includes the following: • DISCOVER Canyon – full page • West Texas Travel Host Magazine – double page 40,000 copies TxDOT Travel Center • Certified Rack Cards – 125,000 distributed to 490 sites, 12 month period • Outdoor Advertising – 5 traditional, 5 digital, 8 months (March- October) • Promotional Items • Membership Travel Industry Organization • Presence at Travel Industry Trade Shows A draft of the Funding Agreement between the CEDC and the Canyon Main Street is included for your review. This is the first reading of Resolution No. 03-2014. The second reading of the Resolution will be May 5th, hopefully with final approval. City of Canyon  RESOLUTION NO. 03-2014 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APRROVING PROJECT A FUNDING AGREEMENT BETWEEN THE CANYON ECONOMIC DEVELOPMENT CORPORATION AND CANYON MAIN STREET FOR FUNDING YEAR TWO OF THE COMPREHNSIVE MARKETING PLAN FOR CANYON. THE PLAN WOULD ENCOURAGE RETAIL SALES, HOTEL STAYS, AND GENERATE STATE AND LOCAL TAX REVENUE WHEREAS, on April 10, 2014, the Canyon Economic Development Corporation (“CEDC”) held a public hearing regarding the use of sales and use tax revenues collected pursuant to the Development Corporation Act of 1979 (Tex. Rev. Civ. Stat. Art. 5190.6 §4B, (“the Act”) and to consider a funding agreement for the Canyon Main Street Marketing Plan for Canyon. The plan would encourage retail sales, hotel stays, and generate state and local tax revenue. WHEREAS, the City Commission of the City of Canyon, Texas, finds it to be in the public interest to execute a Project Funding Agreement between the Canyon Economic Development Corporation and Canyon Main Street; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: That the Mayor and City Clerk are hereby authorized to execute and attest, respectively, on behalf of the City of Canyon, Texas, a Project Funding Agreement between the Canyon Economic Development Corporation and Canyon Main Street; regarding the use of funds from the Sales Tax Improvement Fund (Fund40) for costs related to the project. INTRODUCED at the First Reading on the 21st day of April, 2014, and Adopted on the Second Reading on the 5T H day of May 2014. ________________________________ QUINN J ALEXANDER, MAYOR ATTEST: _______________________________ Gretchen Mercer, City Clerk  CANYON ECONOMIC DEVELOPMENT CORPORATION PROJECT FUNDING AGREEMENT This agreement is made by and between the Canyon Economic Development Corporation (CEDC), a Texas non-profit corporation duly organized and existing pursuant to the TEXAS DEVELOPMENT CORPORATION ACT and CANYON MAIN STREET, A NON PROFIT CORPORATION duly organized and an existing business under the laws of the State of Texas and qualified to do business in Texas. 1. The purpose of this agreement is to facilitate the proper use of funds held and administered by the CEDC, a tax supported non-profit corporation whose primary income is from sales tax collected within the City of Canyon and dedicated exclusively to economic development. The sales tax supporting CEDC is authorized as a local option under TEX. REV. CIV. STAT. ART. 5190.6 §4B, the primary purpose of which is the developing, stabilizing, diversifying, and expanding the economy through the retention, recruitment, expansion, and employment opportunities of the citizens of Canyon and the surrounding area and to enhance the quality of life of the citizens of Canyon and the surrounding area. 2. The project and performance requirements to be implemented by means of this agreement are described as follows: a. Second party will develop a comprehensive marketing plan for Canyon. b. Second party will conduct the campaign from April 2014-March 2015. c. Project benchmarks include, attendance at attractions, increase in Sales Tax. 3. The CEDC will provide the following funding for the project: a. An amount, not to exceed $29,409 as follows: (1.) The amount of $29,409 will be reimbursed for marketing expense as incurred. Printed Media, Outdoor Advertising, Promotional Items, Travel Industry Membership, Travel to promote Canyon, (2.) The funds are allocated from the CEDC Marketing Account (10% of Annual Revenue is set aside in this account for marketing purposes). b. All other terms and provisions of this agreement notwithstanding, the obligations of the parties hereto are expressly made contingent upon the following: i approval of the financial incentives by the CEDC Board; ii approval of the financial incentives by the Canyon City Commission; and, Page 1 of 6  iii compliance with the requirements of the Texas Development Corporation Act of 1979, ART 5190.6 §4B (4B, a-1) TEX. REV. CIV. STAT. 4. The failure of Second Party to fully and timely comply with any performance requirement shall be an act of default by Second Party which shall entitle the CEDC to suspend further funding and, at its option, to terminate this agreement by written notice delivered pursuant to paragraph 9. 5. Second Party agrees to undertake the following actions in order to accomplish the project: a. Comply at all times with the requirements of paragraph 2 of this agreement during the term of this agreement. 6. Second Party makes the following covenants and warranties to the CEDC and agrees to timely and fully perform the following obligations and duties: a. Any false or substantially misleading statement contained herein or the failure of Second Party to comply and fully perform as required in this agreement shall be an act of default by Second Party. Failure to comply with any covenant or warranties shall constitute an act of default and entitle the CEDC to suspend further funding and at it’s option to terminate this agreement by written notice in accordance with paragraph 9 below. b. Second Party is authorized to do business in Texas, is in good standing in the State of Texas and shall remain in good standing in the State of Texas during the term of this agreement. c. No litigation or governmental proceeding is pending or to the knowledge of Second Party is contemplated or threatened against Second Party or affecting it’s operations or business that may result in any material or adverse change in Second Party’s business, properties, or operations. To Second Party’s knowledge, no additional consent, approval, or authorization of a governmental entity or other authority is required in connection with the execution and performance of this agreement or the transactions contemplated hereby. d. To Second Party’s knowledge no certificate or statement delivered by Second Party to CEDC in connection with this agreement or any transaction contemplated by this agreement contains any untrue statement or fails to state the facts necessary to keep the statements contained therein from being misleading or false. e. There are no bankruptcy proceedings or other legal proceedings currently pending or contemplated affecting the Second Party. The Second Party has not been informed of any intent to initiate involuntary bankruptcy proceedings against Second Party. f. To it’s knowledge Second Party has acquired and maintained all necessary rights, licenses, permits, and authority to carry on it’s business in Texas and to perform the terms of this agreement and will continue to use it’s best efforts to maintain all necessary rights, licenses, and permits in current status and good standing. Page 2 of 6  g. The funds provided by CEDC shall be utilized solely for the purpose of the project as stated in this agreement and within the scope of the project as stated in this agreement and for no other purpose. h. Second Party shall pay all taxes and assessments due and owing to all taxing authorities having jurisdiction over Second Party’s property and business operations. In addition, Second Party shall timely pay all employment, income, franchise, and other taxes due and owing by Second Party to all local, state, and federal entities. i. Second Party shall complete the project required by this agreement and shall provide the necessary staff and employees for the completion and performance of this agreement. j. Second Party shall timely and fully perform and comply with all terms and conditions of this agreement. k. Upon written request of CEDC Second Party shall notify CEDC in writing of substantial changes in the management of Second Party within seven (7) days. Substantial changes shall mean changes in executive officers, board members, or managers. l. The Second Party agrees that with regard to all programs and activities arising out of this agreement, the Second Party shall fully comply with all civil rights acts and specifically will not discriminate against any person upon the basis of race, color, national origin, gender, or by reason of being disabled. 7. The CEDC under the following circumstances and at the sole discretion of its board of directors may suspend the obligations under this agreement or may terminate this agreement without liability to the CEDC upon: a. The filing of bankruptcy proceedings or the appointment of a receiver of Second Party or any part of it’s assets or property and failure of such bankruptcy or receivership to be discharged within sixty (60) days of filing. b. The adjudication of Second Party as a bankrupt. c. A change in ownership of Second Party which constitutes a material change in the nature of Second Party’s business and operations, unless Second Party has complied with paragraph 2 and 3(d) above. 8. Should Second Party fail to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, and conditions or warranties of this agreement such failure shall constitute an act of default by Second Party and, if not fully and completely cured within 60 days after written notice by CEDC to Second Party, the CEDC may terminate this agreement and pursue any legal remedies existing under the law; provided however, that Second Party’s liability under this agreement shall be limited to the immediate return by Second Party of all funds or other economic incentives provided by the CEDC and any consideration previously paid to Second Party by the CEDC. The rate of interest on all funds paid by the CEDC to Page 3 of 6 Second Party subject to refund shall be 6% per annum. In the event CEDC should prevail in any litigation to recover funds pursuant to this paragraph, the CEDC shall, in addition to all other damages provided by this paragraph, be entitled to recover reasonable attorney’s fees and expenses of litigation. Provided, however, that if the default relates only to the number of employees to be maintained under Paragraph 2.c., the sole remedy of the First Party shall be to reduce the amount paid as set forth in Paragraph 3.d. of this agreement. 9. In the event of unforeseeable third party delays, in the performance of this agreement by Second Party, or force majeure, and upon a reasonable showing by Second Party that it has immediately and in good faith commenced and is diligently and continuously pursuing the correction, removal, or abatement of such delays by using its best efforts, CEDC may consent and excuse any such delay, which consent shall not be unreasonably conditioned or withheld. The failure by Second Party to continuously and diligently pursue compliance shall constitute an act of default. Page 4 of 6  10. Any delay by the CEDC in providing notice of default to Second Party, shall in no event be deemed or constitute a waiver of such default by CEDC or waiver of any of it’s rights and remedies available under this agreement or at law or in equity. 11. Any waiver provided by CEDC to Second Party of an act of default shall not be deemed to constitute a continuing waiver or a waiver of any other existing or future act of default by Second Party even if the act or default is of the same or a similar nature. 12. Second Party specifically agrees that CEDC shall only be liable to Second Party for the amount of money actually budgeted and committed to the project described in this agreement. CEDC shall not be liable or held responsible for any other direct or indirect costs, attorneys fees, court costs, actual or consequential damages, direct or indirect, for any act of default by CEDC under the terms of this agreement. It is further stipulated and agreed that CEDC shall only be required to pay the amount of the project cost out of its sales tax revenues held and administered pursuant to §4B of the Development Corporation Act for the fiscal year in which the funding under this agreement is due together with unencumbered funds then on hand and from no other source. It is specifically agreed however, that in the event actual total sales tax revenues collected by CEDC for any year during which this agreement is to be performed should be less than the total amount of all grants to all contracting parties for that year, then in that event, CEDC shall fund projects in the order the grants were awarded after payment of CEDC’s usual administrative cost and expenses. All contracting parties shall receive only their share of the available sales tax revenue for that year, less CEDC’s customary and usual administrative costs and expenses and CEDC shall not be liable to any contracting party for any deficiency for that time or in the future. In the event of such revenue shortfall, CEDC will provide written notice to all contracting parties affected by the revenue shortfall along with such documentation as will allow the contracting party to ascertain their share of the funding to be provided. 13. This agreement incorporates the entire agreement of the parties hereto and supersedes any oral or written previous and contemporaneous agreements between the parties relating to the matters covered by this agreement. Except as otherwise provided herein, this agreement cannot be modified or amended without a written agreement of the parties. 14. No term or provision of this agreement or an act of the CEDC in the performance of this agreement shall be construed as making or constituting Second Party or its employees, or agents, partners of the CEDC or employees of the CEDC. This contract shall not benefit any third party not a direct party to this agreement. 15. The termination of this agreement as provided herein may be upon mutual agreement of the parties or pursuant to the provisions hereof relating to default. The termination of this agreement either by mutual agreement or by notice served by the CEDC shall extinguish all rights, duties, and obligations of the CEDC and Second Party except as provided herein. 16. This agreement may be executed in a number of identical counterparts each of which shall be deemed an original upon execution and shall constitute the same instrument. 17. This agreement is made pursuant to the laws of the State of Texas and shall be governed and interpreted under the laws of the State of Texas without regard to any conflict of laws Page 5 of 7 provision. Venue in any litigation arising out of the execution or performance of this agreement shall be in the court of appropriate jurisdiction in Randall County, Texas and in no other Venue. Second Party, by signing this agreement, consents to and waives any objections to in personam jurisdiction in Randall County, Texas. 18. In the event one or more of the provisions contained in this agreement should, for any reason, be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this agreement. This agreement shall be construed as if such invalid, illegal, or unenforceable provision had not been contained herein. 19. This agreement is subject to all legal requirements contained in the Municipal Charter of the City of Canyon and Code and Ordinances of the City of Canyon and all other applicable state and federal laws and regulations. Second Party agrees that, in compliance with this agreement, it will promptly comply with all applicable laws, regulations, orders, and rules of the state, city, and other governmental entities. 20. This agreement shall be binding upon the parties hereto, their successors, and (where permitted) assigns. This agreement may not be assigned by either party without the specific prior written consent of the other, which consent shall not be unreasonably withheld or conditioned. Provided however, that in the event Second Party transfers all or substantially all it’s assets to another entity or merges with another entity to the extent that the underlying purpose of this agreement cannot, in the sole discretion of the CEDC’s board of directors, be accomplished, the CEDC shall have the option to suspend it’s performance under this agreement or terminate this agreement. 21. Second Party represents that no member of the board of directors of the CEDC or member of the governing body of the City of Canyon or any officer or employee of the City of Canyon or CEDC will be compensated in any manner with respect to directly or indirectly bringing the parties together for the purpose of this agreement or participation in the negotiation or formation of this agreement. No finder’s fee or other origination fee of any type will be paid or will become payable to any officer or employee of the City of Canyon, member of the governing body of the City of Canyon, or the governing body of the CEDC with regard to the formation or performance of this agreement. 22. All notices from one party to the other party required or permitted by this agreement shall be delivered personally or sent by certified mail postage prepaid addressed to the party at the address shown on the signature page. All notices shall be deemed given on the date so delivered or deposited in the mail unless otherwise provided. Either party may change its address by sending written notice of such change to the other party in the manner provided by this agreement. 23. All representations, warranties, covenants, and agreements of the parties as well as all rights and benefits of the parties pertaining to the transaction contemplated by this agreement shall survive the original execution date of this agreement and shall constitute continuing obligations. Page 6 of 7 Effective Date:_______________________ CANYON ECONOMIC DEVELOPMENT CORPORATION By: _________________________________ Randy Croslin, President Second Party: Canyon Main Street By: _________________________________ Evelyn Ecker, Executive Director Page 7 of 7  AGENDA To: Mayor and City Commission From: Randy Criswell, City Manager Date: April 21, 2014 Re: Consider and Take Appropriate Action on Interlocal Agreement With CISD for Playground Equipment Funding. ________________________________________________________________________ At the second March meeting, you voted to provide CISD with $6,623 for assistance with providing playground equipment that would benefit special needs children. You instructed City Attorney Hester to create an Interlocal Agreement memorializing that agreement. It is attached for your review. CISD has signed it. It is staff’s recommendation that the Interlocal Agreement be approved. City of Canyon  AGENDA To: Mayor and City Commission From: Danny Cornelius, Director of Code Enforcement Date: April 15, 2014 Re: Conduct a Public Hearing and Consider and Take Appropriate Action on Ordinance No. 1003, Rezoning 700 4th Avenue, the West 35’ of Lot 1 and All of Lot 2, Block 9, Heller’s Addition to RC-1 (Retail District) from MF (Multi- Family Attached Residential District) and to Rezone 506 8th Street, All of Blocks 15 and 16, Lots 3 and 4 of Block 9, Heller’s Addition to RC-1 (Retail District) from 2F (Duplex Attached Residential District). Our department received an application for a change in zoning from the Canyon Congregation of Jehovah’s Witness at 700 4th Ave. The building has been for sale and potential buyers have been interested in commercial uses. The building is located in the MF (Multi-Family Attached Residential District) and is surrounded by MF and 2F (Duplex Attached Residential District). The property at 700 4th Ave cannot be rezoned by itself without creating illegal “spot zoning”. The options are leaving the zoning as is or rezoning an area large enough to connect the property to adjacent commercial districts. The proposed zoning would attach to the small RC-1 District northeast of 5th Ave and 8th St. The area includes the Jehovah’s Witness and the Canyon Intermediate School properties. No residences are included. Our office sent 31 letters to property owners within 200 feet of the area. We received 8 responses with 4 in support of the request and 4 opposed. The Planning & Zoning Commission voted 5 to 1 to recommend adoption of Ordinance 1003. City of Canyon  ORDINANCE NO. 1003 Rezoning 700 4th Ave and 506 8th St to RC-1 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS, REZONING THE WEST 35 FEET OF LOT 1, ALL OF LOTS 2, 3 AND 4 OF BLOCK 9 AND ALL OF BLOCKS 15 AND 16 OF HELLER’S ADDITION, AN ADDITION TO THE CITY OF CANYON, RANDALL COUNTY, TEXAS, PROVIDING THAT THE ZONING CLASSIFICATION BE POSTED UPON THE ZONING DISTRICT MAPS OF THE CITY OF CANYON, PROVIDING THAT ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH ARE EXPRESSLY REPEALED, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission conducted a public hearing on April 14, 2014 for the purpose of considering rezoning certain properties situated in the City of Canyon. All owners of property within 200 feet, as indicated by the most recently approved municipal tax roll of real estate property, were given written notification, and opportunity to be heard, and proper notice by publication was given through the local newspaper in accordance with City Charter provisions, the Code of Ordinances and the Texas Local Government Code; and WHEREAS, the Planning and Zoning Commission has recommended rezoning the properties from MF (Multi-Family Attached Residential District) and 2F (Duplex Attached Residential District) to RC-1 (Retail District); and WHEREAS, the City Commission conducted a public hearing at its regular meeting and considered the recommendation by the Planning and Zoning Commission for rezoning; and WHEREAS, the passage, promulgation, and enforcement of the provisions herein contained are deemed necessary and advisable for the promotion of the general welfare of the community to carry out the governmental powers delegated to and possessed by the City of Canyon; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: SECTION 1. The City Commission finds that RC-1 (Retail District) would be more appropriate than MF (Multi-Family Attached Residential District) and 2F (Duplex Attached Residential District) zoning for the properties in question. SECTION 2. That the west 35 feet of lot 1 and all of lot 2 of block 9, Heller’s Addition is hereby rezoned RC-1 (Retail District) from MF (Multi-Family Attached Residential District). SECTION 3. That lots 3 and 4 of block 9 of Heller’s Addition and all of blocks 15 and 16 of Heller’s Addition are hereby rezoned RC-1 (Retail District) from 2F (Duplex Attached Residential District). SECTION 4. That this Zoning classification be posted upon the Zoning District maps of the City of Canyon and filed with the City Secretary and Building Inspector of the City of Canyon. SECTION 5. Severability. If any provision, section, subsection, sentence, clause, or the application of the same to any person or set of circumstances for any reason is held to be unconstitutional, void or invalid or for any reason unenforceable, the validity of the remaining portions of this ordinance or the application thereby shall remain in effect, it being the intent of the City Commission of the City of Canyon, Texas in adopting this ordinance, that no portion thereof or provision contained herein shall become inoperative or fail by any reasons of unconstitutionality of any other portion or provision. SECTION 6. Repealer. All ordinances and parts of ordinances in conflict with this ordinance are hereby repealed to the extent of conflict with this ordinance. SECTION 7. This ordinance shall become effective immediately. INTRODUCED AND PASSED at the regular meeting of the City Commission on the 21st day of April, 2014. _______________________ Quinn Alexander, Mayor ATTEST: _________________________ Gretchen Mercer, City Clerk  AGENDA To: Mayor and City Commission From: Randy Criswell, City Manager Date: April 21, 2014 Re: Report from Will Harrell of Robert Harrell and Associates Regarding the City’s TMRS Plan. ________________________________________________________________________ I received the following letter and attached documents last week from Mr. Will Harrell pertaining to his analysis of TMRS as you requested. Mr. Harrell will be at the meeting on Monday night to present his findings and answer any questions you may have. City of Canyon  8310 N CAPITAL OF TEXAS HWY BLDG 1-320 AUSTIN, TEXAS 78731 (512) 795-9100 (800) 687-0068 rhi@harrell.com (512) 795-0633 FAX www.harrell.com February 21, 2014 Opinion Letter City of Canyon Retirement Plan Discussion/Conclusions After reviewing the asset mix, actuarial information, fees, and benefit structure of the City of Canyon Retirement Plan, we have concluded that the plan is well-positioned to meet its current contingent liabilities. We used 2012 actuarial data, the long-term asset mix objectives of the Texas Municipal Retirement System, and other Plan data to make our determination. The funded ratio of the City of Canyon Plan (82.2% as of December 31, 2012) is in-line with other public retirement plans in Texas, and does not pose a significant threat to the Plan. This is statistically demonstrated in our Monte Carlo Simulation using indices and asset weights specified in the TMRS literature. The TMRS portfolio was entirely invested in fixed-income investments until 2009, when the portfolio began to introduce additional assets, namely U.S. Equities and alternative investments. The modeled ten-year return for the new asset allocation being adopted produces a gross annualized average return of 8.1%. The new mix has a best case scenario one-year return of 30.2% and a worst case scenario one-year return of -11.1%. The new alternatives particularly risk-dampening hedge-funds have brought the expected standard deviation down to an annualized average of 9.87% over a 10-year period. The prior 10-year return for the TMRS is tepid (6.12%) given the strategic target mix of the total fund that is being implemented (the average Texas municipal plan 10-year return is 8.47% as of December 31, 2012). However one should be mindful that the TMRS total fund was down a mere -1.31% in 2008 due to the nature of the former strategy. Our simulation demonstrates that the new strategic asset mix is expected to meet the long-term obligations of the Plan net of inflation, if additional benefits increases are cautiously considered. It is clear after reviewing the information made available to us that the City of Canyon Retirement Plan is deriving three main benefits from its affiliation with TMRS: 1) access to top-tier professional money management expertise 2) purchasing power of the TMRS with regard to both vendors and manager minimums, and 3) ease of administration. The funded ratio of the TMRS is approximately 4-5% higher than the funded ratio of the City of Canyon. The discrepancy between the funded ratio of TMRS in the aggregate, and the City of Canyon’s Retirement Plan is being driven primarily by the annual retiree COLA of 2.1%. The automatic nature of the COLA is inflating the liabilities of the City’s Plan each year, all other things being equal. Under a Projected Unit Credit actuarial cost method, the COLA must be 100% funded every year; EAN amortizes those costs.The recent vote in October to move to Entry-Age Normal cost method will demand higher but more stable contribution rates over time. Most plans determine the COLA after each year’s performance is calculated and the actuary recalculates the health of the plan with smoothing. Some Texas plans offer an automatic annual Cost of Living Adjustment (COLA), which increases retiree annuities annually by a certain percentage. Plans offering an automatic COLA typically base their COLA on either a set percentage or on the change in the Consumer Price Index (CPI). A majority of Texas plans do not offer an automatic COLA, but reserve the right to grant an ad hoc COLA if certain conditions are met. A COLA can be simple or compounded. Simple COLAs are calculated based on the original benefit; compounded COLAs are calculated based on the original benefit plus any prior benefit increases, including prior year COLAs. In this report, all automatic COLAs are simple COLAs unless otherwise specified. In Texas, only 13 actuarially funded systems currently offer an automatic COLA as part of the benefits package for current hires. We as consultants understand the need for a municipality’s benefits package to remain competitive, therefore keeping the COLA and accepting the funded ratio is an option that has appeal. Therefore, the growth rate of the TMRS -calculated contribution requirements will always be commensurate with that enriched benefit. Please feel free to contact me in the future with any questions. Regards, Will Harrell Senior Vice President  Actuarial Cost Method Projected Unit Credit vs. Entry Age Normal Projected Unit Credit: The cost of benefits earned is funded each year and the liability represents the value of benefits earned to date. Projected unit credit provides stakeholders a real measure of the cost and liability of the Plan. COLA must be 100% funded every year. • For example: a person has projected total value of benefits worth $100,000 today. With twenty years of total service, the PUC method divides the $100,000 by 20 years, therefore costing the Plan 5%, or $5000 per year. • Another way to think of it is PUC is like a term insurance policy that has an annual premium that adjusts every year based on the age of the insured. • 12% of all Texas public pension plans employ this method. Entry Age Normal: The cost of projected benefits is funded as a LEVEL PERCENTAGE OF PAY over the employee’s career. Typically the result is a liability that appears larger than the accrued benefit. Although this method funds the benefits adequately, stakeholder may be misled about the cost and liability of the system. • Therefore in the above example, the EAN method would calculate what needs to be invested per year given an assumed rate of return (6%), which would require an annual investment of $8,225. • Another way to think of it is EAN is like a whole life insurance policy that has a level annual premium for the life of the policy. • 75% of all Texas public pension plans employ this method.  Canyon Self-Administered/Managed Pension Plan Estimated Annual Costs based on $20,000,000 Market Value Administrator $50,000 Auditor $8,000 Actuary $25,000 Legal Costs $4,000 Consultant/Advisor $40,000 (20 bps) Custodian $5,400 (3 bps) Investment Managers $158,000 (79 bps average) Total $290,400 (1.45%) TMRS Expense Summary 12.31.12 • $1.9MM administration • $11.6MM Investment Management • $693K Consulting • $157K Legal Total $14,489,729 (0.073%)  A Look At Three Public Plans In Texas TMRS: 185,000 members/Just voted (October 2013) to begin using Entry Age Normal Employers select member contribution level (5%-7% of pay) and employer matching (100%-200%). Member contributions are deposited into an account and earn 5% annual interest. At retirement member’s account gets employer matching and is converted to a lifetime annuity. COLA’s vary from city to city within TMRS/Canyon Retirees annual COLA: 2.1% 25/30 years; 85.1% Funded; 10-year smoothing Canyon Contribution Rate: 7%/17.6% Canyon Amortization: 27.4 years/82.2% Funded/2-1 matching/5-year vesting/Ret age 60 Inflation Assumption 3.00%/Return Assumption 7.0% Actual 10-year rate of return 6.12%/ 20-year 8.90% TCDRS: 228,000 members/Entry-Age Normal Employers select member contribution level (4%-7% of pay) and employer matching (100%-250%). Member contributions are deposited into an account and earn 7% annual interest. At retirement member’s account gets employer matching and is converted to a lifetime annuity. Contribution Rate 6.68%/10.89% TCDRS Amortization: 15.3 years/ 88.8% Funded/10-year smoothing/ No COLA Inflation Assumption 3.50%/Return Assumption 8.0% Actual 10-year rate of return 6.70%/20-year 8.20% ERS: 310,000 members/Ultimate Entry-Age Normal for multi-tiered benefits Employee Class Tier 2 Hired on or after 09/01/2009; Retirement age 65/10 Benefit Formula: Years of Credited Service x 2.3% x Final Average Salary Highest 48 Months No COLA; Contribution Rate 6.5%/6.5%; Infinite Amortization/81% Funded Inflation Assumption 3.50%/Return Assumption 8.0%  AGENDA TO: Honorable Mayor and Members of City Commission FROM: Chris Sharp, Assistant City Manager DATE: April 17, 2014 SUBJECT: Consider and Take Appropriate Action on Quarterly Finance Report by Finance Director Chris Sharp. A summary of all deposits for the City of Canyon as of March 31, 201 are submitted. All funds are deposited with the City’s depository bank, Happy State Bank. Also included, is a summary of the City’s major funds and where they stand as of the same date. Total deposits needing security pledge, including checking accounts are $_3,487,797. Total securities pledged by Happy State Bank including the FDIC insurance is $_6,759,924. This report is to comply with legislation requiring periodic reports to be made to the governing body for approval. RECOMMENDED ACTION Approval of the Quarterly Finance Report for the Quarter Ending March 31, 2014. City of Canyon  City of Canyon QUARTERLY FINANCE REPORT Quarter ending: 12/31/13 3/31/2014 Interest earned Interest Rate for quarter EMERGENCY MANAGEMENT 0.05 $ 79,134.46 $ 75,395.58 $ 9.40 LIBRARY GIFT & MEMORIAL 0.05 $ 5,311.87 $ 4,566.59 $ 0.62 GENERAL FUND DEMAND ACCT 0.05 $ 545,194.57 $ 680,570.45 $ 140.54 WW/SS FUND DEMAND ACCT. 0.33 $ 407,638.72 $ 1,620,924.63 $ 757.20 BCD 0.05 $ 67,684.96 $ 18,303.50 $ 4.23 LEOSE 0.05 $ 7,746.91 $ 9,749.22 $ 1.03 VOL. FIREMENS SCHOOL 0.05 $ 9,047.38 $ 5,888.21 $ 0.83 VOL. FIREMENS OPERATING 0.05 $ 6,764.84 $ 3,816.98 $ 0.63 VOL.FIREMENS SAVINGS 0.05 $ 3,710.06 $ 3,710.55 $ 0.46 C.E.D.C (ECONOMIC DEVELOPMENT) 0.05 $ 222,424.57 $ 145,233.66 $ 29.83 C.E.D.C. MARKETING ACCOUNT 0.05 $ 101,017.91 $ 106,329.31 $ 12.83 EMPLOYEES FLOWER FUND 0.05 $ 1,883.89 $ 917.09 $ ‐ D-FI-IT PROGRAM 0.05 $ 10,391.11 $ 10,090.39 $ 1.28 Palo Duro Golf Administration 0.05 $ 322,865.06 $ 455,215.91 $ 47.39 Capital Improvement Account 0.05 $ 562,515.31 $ 347,085.79 $ 406.75 CHECKING / SAVINGS ACCOUNTS BALANCES $ 2,353,331.62 $ 3,487,797.86 TOTAL FUNDS FOR SECURITY PLEDGES $ 2,353,331.62 $ 3,487,797.86 WW/SS Utility Insured Cash Sweep Account (CDARS) Interest 0.33 $ 5,000,858.79 $ 3,971,264.79 $ 5,598.80 TOTAL AMOUNT OF FUNDS IN BANK $ 7,354,190.41 $ 7,459,062.65 SECURITIES PLEDGED HAPPY STATE BANK RECEIPT DATE DESC. AMOUNT MARKET NUMBER MATURED VALUE 151717LH6 2/15/2016 Center TX $100,000.00 $107,771.00 31410KPU2 1/1/2023 MBS FNMA $26,560,738.00 $4,715,560.00 552410ER9 8/15/1930 Lytle TX ISD $555,000.00 $585,230.00 667825YM9 2/15/1932 Northwest TX ISD $980,000.00 $1,101,363.00 FDIC INSURANCE $100,000.00 $250,000.00 Total Security Pledges $28,295,738.00 $6,759,924.00 Total Outstanding debt from 2012 issued CO's and 2013 refunded CO's $14,420,000  Summary of Month Ending March 2014 Summary of Revenues General Fund Budgeted Percentage to Major Revenues 3/31/2014 Amount Budget Sales Tax Franchise Taxes General Fund 50% into Budget Year $987,712.00 Mixed Beverage Tax Sales Tax $ 987,712.00 $ 1,670,000.00 59.14% $2,033,599.00 Municipal Court Fines Franchise Taxes $ 331,800.83 $ 600,000.00 55.30% $331,800.83 Other Income Mixed Beverage Tax $ 2,413.00 $ 9,000.00 26.81% Municipal Court Fines Fire Service Randall County $ 160,396.00 $ 300,000.00 53.47% Other Income $ 28,746.00 $ 40,000.00 71.87% $2,413.00 Randall County, Library Funding Fire Service Randall County $ 191,095.00 $ 350,047.00 54.59% $548,009.00 Commercial Refuse $160,396.00 Randall County, Library Funding $ 25,000.00 $ 50,000.00 50.00% $28,746.00 Residential Refuse Commercial Refuse $ 121,464.00 $ 239,750.00 50.66% Ad Valorem Taxes $191,095.00 Residential Refuse $ 548,009.00 $ 1,055,250.00 51.93% $25,000.00 Ad Valorem Taxes $ 2,033,599.00 $ 2,090,256.00 97.29% $121,464.00 Total General Fund Revenues $ 4,771,755.00 $ 7,430,879.00 64.22% Total General Fund Expenses $ 3,619,389.00 $ 7,430,879.00 48.71% Utility Fund Water Receipts $ 1,897,907.00 $ 3,826,000.00 49.61% Waste Water Receipts $ 936,205.00 $ 2,123,000.00 44.10% Summary of Revenues Utility Fund Lease Income $ 20,431.00 $ 48,700.00 41.95% Penalties $ 35,891.00 $ 60,000.00 59.82% $35,891.00 $8,525.00 T-on & Reconnection Revenue $ 8,525.00 $ 18,000.00 47.36% Water Receipts Water Taps $ 47,850.00 $ 30,000.00 159.50% $47,850.00 $20,431.00 Waste Water Receipts Total Utility Fund Revenues $ 2,945,498.00 $ 6,163,302.00 47.79% Total Utility Fund Expenses $ 3,215,063.00 $ 6,163,302.00 52.16% Lease Income Historical Summary of Sales Tax 2014 2013 2012 2011 $936,205.00 Penalties JAN $ 184,408.15 $ 175,328.65 $ 167,039.36 $ 160,777.49 FEB $ 242,684.94 $ 219,822.76 $ 216,626.96 $ 215,180.28 $1,897,907.00 T-on & Reconnection Revenue MAR $ 182,850.07 $ 175,680.77 $ 195,826.44 $ 134,179.45 APR $ 169,113.63 $ 155,201.00 $ 158,238.80 $ 172,960.85 Water Taps MAY $ - $ 212,356.00 $ 216,522.84 $ 208,654.69 JUN $ - $ 200,922.98 $ 162,466.00 $ 151,901.43 JUL $ - $ 178,860.87 $ 180,475.76 $ 151,938.88 AUG $ - $ 209,872.00 $ 194,956.35 $ 203,751.04 SEP $ - $ 185,585.77 $ 166,737.94 $ 164,832.87 OCT $ - $ 188,929.84 $ 185,559.98 $ 207,654.65 NOV $ - $ 225,885.58 $ 215,256.90 $ 211,553.98 DEC $ - $ 292,194.91 $ 213,461.56 $ 206,547.15 $ 779,056.79 $2,420,641.13 $ 2,273,168.89 $ 2,189,932.76 Palo Duro Creek Golf Course Budgeted Amount Percentage to Budget Revenues to Date $275,722.00 $986,852.00 27.94% Exenditures to Date $471,583.00 $986,852.00 47.79% City of Canyon Summary of Debt Service Remaining Principal Outstanding Series 2004 Series 2012 Series 2013 Payment Net Total Net Total Fiscal AFTER FY Date Principal Interest Total P+I Principal Interest Total P+I Principal Interest Total P+I P+I FYE P+I Year End Payment is Made 2/15/14 $ 315,000 $ 6,694 $ 321,694 $ 350,000 $ 136,863 $ 486,863 $ 145,000 $ 79,725 $ 224,725 $ 1,033,281 8/15/14 - 133,363 133,363 - 78,275 78,275 211,638 $ 1,244,919 2014 $ 14,420,000 2/15/15 360,000 133,363 493,363 470,000 78,275 548,275 1,041,638 8/15/15 - 129,763 129,763 - 73,575 73,575 203,338 1,244,975 2015 13,590,000 2/15/16 365,000 129,763 494,763 480,000 73,575 553,575 1,048,338 8/15/16 - 126,113 126,113 - 68,775 68,775 194,888 1,243,225 2016 12,745,000 2/15/17 375,000 126,113 501,113 490,000 68,775 558,775 1,059,888 8/15/17 - 122,363 122,363 - 63,875 63,875 186,238 1,246,125 2017 11,880,000 2/15/18 385,000 122,363 507,363 500,000 63,875 563,875 1,071,238 8/15/18 - 116,588 116,588 - 58,875 58,875 175,463 1,246,700 2018 10,995,000 2/15/19 400,000 116,588 516,588 510,000 58,875 568,875 1,085,463 8/15/19 - 110,588 110,588 - 53,775 53,775 164,363 1,249,825 2019 10,085,000 2/15/20 405,000 110,588 515,588 525,000 53,775 578,775 1,094,363 8/15/20 - 104,513 104,513 - 45,900 45,900 150,413 1,244,775 2020 9,155,000 2/15/21 425,000 104,513 529,513 540,000 45,900 585,900 1,115,413 8/15/21 - 98,138 98,138 - 37,800 37,800 135,938 1,251,350 2021 8,190,000 2/15/22 435,000 98,138 533,138 555,000 37,800 592,800 1,125,938 8/15/22 - 91,613 91,613 - 29,475 29,475 121,088 1,247,025 2022 7,200,000 2/15/23 445,000 91,613 536,613 575,000 29,475 604,475 1,141,088 8/15/23 - 83,825 83,825 - 20,850 20,850 104,675 1,245,763 2023 6,180,000 2/15/24 460,000 83,825 543,825 590,000 20,850 610,850 1,154,675 8/15/24 - 75,775 75,775 - 12,000 12,000 87,775 1,242,450 2024 5,130,000 2/15/25 475,000 75,775 550,775 610,000 12,000 622,000 1,172,775 8/15/25 - 67,463 67,463 - 2,850 2,850 70,313 1,243,088 2025 4,045,000 2/15/26 495,000 67,463 562,463 95,000 2,850 97,850 660,313 8/15/26 - 58,800 58,800 - 1,425 1,425 60,225 720,538 2026 3,455,000 2/15/27 515,000 58,800 573,800 95,000 1,425 96,425 670,225 8/15/27 - 49,788 49,788 49,788 720,013 2027 2,845,000 2/15/28 530,000 49,788 579,788 579,788 8/15/28 - 40,513 40,513 40,513 620,300 2028 2,315,000 2/15/29 545,000 40,513 585,513 585,513 8/15/29 - 30,975 30,975 30,975 616,488 2029 1,770,000 2/15/30 570,000 30,975 600,975 600,975 8/15/30 - 21,000 21,000 21,000 621,975 2030 1,200,000 2/15/31 590,000 21,000 611,000 611,000 8/15/31 - 10,675 10,675 10,675 621,675 2031 610,000 2/15/32 610,000 10,675 620,675 620,675 8/15/32 - 620,675 2032 - $ 315,000 $ 6,694 $ 321,694 $ 8,735,000 $ 3,080,563 $ 11,815,563 $ 6,180,000 $ 1,174,625 $ 7,354,625 $ 19,491,881 $ 19,491,881  AGENDA TO: Honorable Mayor and Members of City Commission FROM: Chris Sharp, Assistant City Manager DATE: April 17, 2014 SUBJECT: Consider and Take Appropriate Action on Quarterly Investment Report by Finance Director Chris Sharp. A summary of all investments for the City of Canyon as of March 31, 2014 are submitted as an attachment to this agenda item. All funds are invested with the City’s depository bank, Happy State Bank. Total amount of investments for the City is $3,006,775.94. These funds have been invested in the CDARS program through Happy State Bank. The Canyon EDC also has investments in the CDARS program in the amount of $173,894.38. The City’s 2012 certificates of obligation funds have been invested into a CDARS investment account and has a balance of $8,266,222.82. Total funds on hand, which includes funds in depository accounts as well as funds in investments total $10,465,838.59. This report is to comply with legislation requiring periodic reports to be made to the governing body for approval. RECOMMENDED ACTION Approval of the Quarterly Finance Report for the Quarter Ending March 31, 2014. City of Canyon  QUARTERLY INVESTMENT REPORT Quarter ending: 12/31/13 3/31/2014 Interest Rate Interest earn CERTIFICATE OF DEPOSITS: for quarter CD# Interest Rate 9239 CEDC CD 0.24969 $ 57,140.78 $ 57,175.97 $ 35.20 9654 CEDC CD 0.24969 $ 58,266.92 $ 58,302.81 $ 35.90 14897 CEDC CD 0.05 $ 58,386.80 $ 58,415.60 $ 14.40 CDARS CERTIFICATES OF DEPOSIT $ 173,894.38 14674 GENERAL FUND CD 0.10% $ 248,818.35 $ 248,910.39 $ 92.04 15076 GENERAL FUND CD 0.10% $ 148,749.50 $ 148,804.52 $ 55.02 14895 GENERAL FUND CD 0.15% $ 505,012.04 $ 505,198.86 $ 186.82 6718 GENERAL FUND CD 0.15% $ 148,454.27 $ 148,508.57 $ 54.30 14970 GENERAL FUND CD 0.35% $ 149,732.01 $ 149,856.14 $ 92.32 8088 GENERAL FUND CD 0.25% $ 610,094.26 $ 610,599.47 $ 371.65 14675 WW/SS FUND CD 0.15% $ 595,179.73 $ 595,473.29 $ 220.18 14971 WW/SS FUND CD 0.35% $ 598,928.17 $ 599,424.70 $ 369.28 TOTAL AMOUNT IN CDARS $3,004,968.33 $ 3,006,775.94 TOTAL AMOUNT OF FUNDS IN BANK $7,354,190.41 $ 7,459,062.65 TOTAL FUNDS ON HAND $10,359,158.74 $ 10,465,838.59 2012 Certificates of Obligations (Invested in CDARS account) .33% $8,771,143.11 $ 8,266,222.82 $ 6,802.27