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 7th day of December 2015, 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. Pledge of Allegiance. 4. Approval of the Minutes of the Meeting of November 16, 2015. 5. Public Comment – Comments from Interested Citizens. 6. Presentation of the Texas Police Chiefs Association Recognition Certificate from Chief of Police Robert Taylor, Recognition Committee Member, to the Canyon Police Department. 7. Hear Presentation from TMRS Representatives Regarding the TMRS System and The Status of the City of Canyon’s Employee Retirement Fund. 8. Consider and Take Appropriate Action the Acceptance of a Texas Forest Grant for Personal Protective Equipment. 9. Consider and Take Appropriate Action on Resolution No. 24-2015, Ballot for Potter-Randall Appraisal District Director Elections. 10. Consider and Take Appropriate Action on Bids Received for 5-year Lease of the City Wastewater Treatment and Irrigation Facility (WWTIF; City Farm). 11. Executive Session Pursuant to Texas Government Code §551.074 Personnel: Appointments to Boards and Commissions (Planning and Zoning Commission; Zoning Board of Adjustment; Construction Advisory and Appeals Board; Board of City Development; Canyon Area Library Board; Main Street Advisory Board; and Canyon Housing Authority); and City Manager Evaluation. 12. Consider and Take Appropriate Action on Items Discussed in Executive Session. 13. 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 4th day of December 2015. Gretchen Mercer, City Clerk City of Canyon City Commission Meeting November 16, 2015 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 Alexander presided over the meeting with the following Commissioners in attendance: David Logan, and Joe Shehan. Mayor Pro-Tem Gary Hinders and Commissioner Justin Richardson were unable to attend. Also present were the following City Staff: City Manager Randy Criswell, Assistant City Manager Chris Sharp, City Secretary Gretchen Mercer, Director of Code Enforcement Danny Cornelius, Assistant City Manager for Special Projects Jon Behrens, Director of Public Works Dan Reese, Parks and Recreation Director Brian Noel, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Alexander called the meeting to order at 5:38 p.m. Item 2. Invocation. Mayor Alexander gave the invocation. Item 3. Pledge of Allegiance. Zane and Aden Sumpter of Boy Scouts Troop 4 led the Pledge of Allegiance. Item 4. Approval of Minutes of the Meeting of November 2, 2015. Commissioner Shehan moved, duly seconded by Commissioner Logan, to approve the minutes of November 2, 2015 as presented. Motion carried unanimously. Item 5. Public Forum – Comments from Interested Citizens. No comments were made. Item 6. Consider and Take Appropriate Action on Resolution No. 23-2015, A Resolution Canvassing the Returns and Declaring the Results of the Bond Election Held November 3, 2015. City Manager Randy Criswell presented Resolution No. 23-2015 for consideration. Mr. Criswell said the Official Canvass was a formality to complete the election process. After discussion, Commissioner Shehan moved, duly seconded by Commissioner Logan adopt to Resolution No. 23-2015 as presented. Motion carried unanimously. RESOLUTION NO. 23-2015 A RESOLUTION CANVASSING THE RETURNS AND DECLARING THE RESULTS OF THE BOND ELECTION HELD NOVEMBER 3, 2015. City Commission Meeting November 16, 2015 Page 2 of 4 Item 7. Consider All Matters Related to the Issuance and Sale of City of Canyon, Texas, General Obligation Bonds for the Family Aquatic Center. Assistant City Manager Chris Sharp presented a request for authorization to move forward with the necessary steps in issuing the general obligation bonds for the Family Aquatic Center with the passage of the Bond Election November 3, 2015. Mr. Sharp said staff would with Jason Hughes of First Southwest to determine the best dates for the sale of said bonds. After discussion, Commissioner Logan moved, duly seconded by Commissioner Shehan to grant authorization to staff to initiate steps for the issuance of the general obligation bonds for the Family Aquatic Center as requested. Motion carried unanimously. Item 8. Consider and Take Appropriate Action on Canyon Family Aquatic Center Architectural & Engineering RFQ. Assistant City Manager for Special Project, Jon Behrens presented a request to issue a Request for Qualifications (RFQ) for architectural and engineering services for the Family Aquatic Center; that the City Manager be granted the authority to accept the recommended firm, begin immediate contract negotiations with said firm, and be authorized to sign the contract once it is negotiated. Mr. Behrens presented a tentative outline of a schedule that would allow for the Family Aquatic Center to open in June 2017. Mr. Behrens said the RFQ would seek professionals to Finalize the design program and conceptual design, Create the schematic design, develop construction documents, provide bidding phase services, and provide contract administration and construction services. Mr. Behrens acknowledged this would be a tight schedule but felt the aggressive schedule would enable the facility to be open for business June 2017. Commissioner Shehan asked if it was common to allow the City Manager to approve contracts. Mayor Alexander verified that it was common and that this would only be for the architect and engineering firm and that bids would be presented to the Commission for approval. After discussion, Commissioner Logan moved to instruct staff to move forward with RFQ’s granting the City Manager authorization to accept recommended firm and begin immediate contract negotiations. Motion carried unanimously. Item 9. Consider and Take Appropriate Action on Bids Received for 5-Year Lease of the City Wastewater Treatment and Irrigation Facility (WWTIF; City Farm). Mayor Alexander stated consideration of the bids for the City Farm would be postponed until more information could be obtained. Item 10. Hold Public Hearing and Consider and Take Appropriate Action on a Specific Use Permit Request by Skyway Towers, LLC to Construct a 120’ Telecommunications Tower at 2305 9th Ave. Code Enforcement Director Danny Cornelius presented a Specific Use Permit request by Skyway Towers. Mr. Cornelius said the tower would be 120’ with a 10’ lightning rod at the top. Mr. Cornelius stated the Canyon Zoning Ordinance states that an antenna over 40 feet (commercial, City Commission Meeting November 16, 2015 Page 3 of 4 radio, television, relay, cellular or microwave) may be allowed with a Specific Use Permit in any zoning district. Mayor Alexander opened the Public Hearing. Mr. Bebb Francis of Francis Law Firm, representing Skyway Towers, gave a brief power point presentation showing the location and dimensions of the tower and additional coverage for cell phones the tower would provide. There being no other comments, Mayor Alexander closed the Public Hearing. Mr. Cornelius stated letters were sent to 9 property owners within 200 ft. with one response received in opposition of the request. Mr. Cornelius stated the Planning and Zoning Commission voted unanimously to approve the request as presented. After discussion, Commissioner Shehan moved, duly seconded by Commissioner Logan to approve the Specific Use Permit request as recommended by the City of Canyon Planning and Zoning Commission. Motion carried unanimously. Item 11. Consider and Take Appropriate Action on Request by Lone Star Dairy Products, LLC to Vacate an Unused Portion of an Easement Crossing Property Owned by Lone Star, by Execution of a Quitclaim Deed. City Attorney Chuck Hester presented a request for a Quit Claim Deed from Lone Star Dairy Products, LLC. Mr. Hester stated City Manager Randy Criswell had received a request from the title company handling the Lone Star transaction to vacate an unused portion of an easement crossing the Lone Star Property. Mr. Hester said the Plat had been reviewed by Code Enforcement and the City Manager and approved, but the title company wanted commission approval. Mr. Hester said once this step was done, Lone Star Dairy Products could finalize the closing and begin construction. After discussion, Commissioner Logan moved, duly seconded by Commissioner Shehan to approve the Quit Claim deed as requested. Motion carried unanimously. Item 12. Consider and Take Appropriate Action on Request from Bater Bates to Accept as a Donation the Lot Located at 21 Village Drive. City Manager Randy Criswell presented a proposed donation to the City of Canyon of the lot located at 21 Village Drive in Canyon from Bater Bates. Mr. Criswell stated the current owner is deceased and the heirs do not want the lot. Mr. Criswell said the property is located in a floodway and unsuitable for construction of any kind. Mr. Criswell said the City of Canyon owns the lot south to it and has been maintaining both lots all along. Mr. Criswell said PRAD valued the lot at $500. After discussion, Commissioner Logan moved, duly seconded by Commissioner Shehan to accept the gift of a lot of land located at 21 Village Drive as presented. Motion carried unanimously. City Commission Meeting November 16, 2015 Page 4 of 4 Item 13. Executive Session Pursuant to Texas Government Code, §551.074 Personnel: Appointments to Boards and Commissions: (Planning and Zoning Commission; Zoning Board of Adjustment; Construction Advisory and Appeals Board; Board of City Development; Canyon Area Library Board; Main Street Advisory Board; and Canyon Housing Authority). Mayor Alexander indicated the Commission would adjourn into executive session at 6:21 pm. Item 14. Consider and Take Appropriate Action on Items Discussed in Executive Session. Upon returning from executive session at 6:29 pm, No Action was taken. Item 15. Adjournment There being no further business, Commissioner Shehan moved this meeting be adjourned. ______________________________ Quinn Alexander, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary REGARDING ITEM 6 AGENDA To: Canyon City Commission From: Dale Davis, Chief of Police Date: 12/7/2015 Re: Presentation of the Texas Police Chiefs Association Recognition Certificate from Chief of Police Robert Taylor, Recognition Committee member, to the Canyon Police Department. Amarillo Police Department Chief of Police, Robert Taylor, will present the Texas Police Chiefs Association re-recognition certificate to the Canyon Police Department. Chief Taylor is an active member of the TPCA Recognition Committee. The Canyon Police Department, under Chief Bobby Griffin, was originally recognized by the TPCA on February 20, 2008. The agency was re-recognized in November 2011 and November 2015. Chief Davis has identified the importance of the agency maintaining the professional recognition status. Recognition status last for a period of 4 years. The Canyon Police Department desired the certificate presentation be made before the City Commission who provides financial support to the agency to maintain the recognition program. Respectfully, Dale Davis Chief of Police City of Canyon REGARDING ITEM 7 AGENDA To: Mayor and City Commission From: Randy Criswell, City Manager Date: November 30, 2015 Re: Hear Presentation from TMRS Representatives regarding the TMRS System and The Status of The City of Canyon’s Employee Retirement Fund. Attached is a series of scanned documents and emails from TMRS pertaining to the Unfunded Actuarial Liability and the possible reduction in retiree COLA. One thing I wasn’t aware of is that if the retiree COLA is reduced, it’s retroactive. In other words, if an employee has been retired for awhile and receiving COLA’s at 70%, the reduction goes back to the date they retired, and they have to make up the difference going forward, which means the longer you’ve been retired, the longer it will be until you see another COLA. You can read Leslee Hardy’s email and see what I highlighted. So if it’s reduced, it doesn’t just start on January 1. It goes back to the date of their retirement. That affects 34 retirees, with retirement dates going back to 1994. I can get you a list of their names if you want it. I can tell you some of them are widows of deceased retirees. Mary Rice, for example, whose husband gave 43 years of his life to making Canyon better. If the COLA is reduced, she won’t see another one until 2020, just as one example. There are a couple of important definitions for you to understand when you look at page 1 of David Gavia’s information: Normal Cost Rate is the rate for a current employee. In other words, when we hire a new employee, all of his retirement benefits, including 70% COLA is fully funded at 10.04%. That number may have moved around a little, but since 2007, anyone hired is funded at 100%, and anyone who was working prior to 2007 is also now funded at 100%. You can see, that number is less than 14% consistently. I thought you’d find that interesting. Prior Service Rate is the Unfunded Liability. That’s the cost for the unfunded COLAs for our current retirees and for those of us that were here prior to 2007. In 2007, as I mentioned, they made some big changes, and all benefits are funded 100% since then. However, prior to 2007, anyone who was retired, plus those of us who were already here, were not pre-funding our COLAs. So the Unfunded Actuarial Liability has nothing to do with anyone hired after 2007, but only those that were retired, or those that were currently working in 2007. We’re playing “catch up” with the unfunded COLAs. That is the reason for the big change, and for the larger than 14% contribution ratio. Also interesting, the amortization period doesn’t change regardless of changes to the COLA. It just changes the number, with everything headed for 100% funded in 21 more years. The only way it changes is if we write a big check, which Leslee explains in her email in the attachment. According to David, that isn’t necessary in his opinion because we’re headed for fully funded anyway. Their plan is solid. It’s been expressed that we want our employees to have the retirement when they need it. They will. TMRS is solid, well executed, governed by law, and WILL be there when we need it. David Gavia, the Executive Director of TMRS, will be here to discuss the system with you. City of Canyon From: Gavia, David [mailto:DGavia@tmrs.com] Sent: Friday, November 6, 2015 3:33 PM To: Randy Criswell <rcriswell@canyontx.com> Cc: Hardy, Leslee <LHardy@tmrs.com>; Davis, Eric <EDavis@tmrs.com> Subject: City of Canyon Randy – I have copied your questions with the respective answers in red below. I have also attached a file with 8 separate pages related to those questions. Please let me know if you have any further questions. We can talk next week and explain the responses to you if you like. I am available to travel with Leslee Hardy, TMRS’ Actuarial Services Director, on November 16th if you still think that would be helpful. Please advise accordingly and let us know when and what time you need us to be in Canyon. 1. Full amortization schedule showing the contribution rate, unfunded liability, and funded percentage, throughout the amortization period, and where we’ll be when fully amortized out, under the scenarios of leaving retiree cola at 0.7 and also if it is reduced to 0.5. see pages 1‐5. Page 1 is a recap of the 2016 rate for the current plan (70% COLA) versus a 50% COLA plan. Pages 2 & 3 reflect the projected amortization/funded ratio schedule for each of the two plans. Please note that in both scenarios, the unfunded liabilities are fully paid off in the same amount of time, 22 years. These schedules assume all future actuarial assumptions are met exactly. They also reflect the impact of the proposed new assumption set which will be presented to the Board for adoption at their December meeting. The proposed new assumption set effective with the December 31, 2015 valuation reflects a 6.75% assumed investment rate of return (reduced from 7%) and a 2.5% inflation assumption (reduced from 3%). The net impact of the assumption changes is not expected to have a material impact on Canyon’s 2015 UAAL; however, the estimated 2017 retirement contribution rate is expected to increase by approximately 0.4% as a result of the proposed changes. As you can see on pages 2 and 3, the respective UAAL will be amortized over the remaining 22 year closed amortization period on a level percent of payroll basis. As the UAAL amortizes to $0, the funded ratio increases steadily to 100%. The TMRS funding policy requires that the UAAL is amortized at the end of each city’s amortization period by calculating a prior service rate that produces such a result. For Canyon, the remaining amortization in the 2014 valuation was 22 years. In addition, you can see that once the UAAL is paid off, the total contribution rate reduces to the normal cost rate for each of the alternative plans based on the proposed assumption set, 10.59% and 9.75% respectively. Pages 4 & 5 reflect a comparative graphical presentation of the UAAL runoff and funded ratio projection for the 70% and 50% COLA plans. 2. Investment portfolio, both current, and proposed. page 6 reflects the actual asset allocation as of June 30, 2015 versus the target asset allocation adopted by the Board in July 2015. The target allocation reflects a larger allocation to alternative investments, but because the capital market assumptions have declined over the past few years, this produces an expected real rate of return (return in excess of assumed 2.5% inflation) for the target portfolio of 4.25% resulting in a long term assumed rate of return of 6.75% (2.5% inflation + 4.25% real return). The previous 7% investment return assumption was based on 3% inflation plus 4% real 1 return. The Board is continuing to diversify its portfolio toward the target and performs an asset allocation study every 3 years. 3. What is the reason for the unfunded actuarial liability. Was it investment performance? Randy, our investment performance was not the main reason for Canyon’s unfunded liability increasing. In fact, we were largely unaffected by the stock market decline in 2008. Our investment return for that year was ‐1.3%. The reason for the liabilities increasing were largely due to actuarial changes we made to the plan to improve sustainability. Page 7 reflects a 10 year history of the changes in Canyon’s UAAL while page 8 reflects a 10 year history of the required versus actual contribution rates to the retirement plan. In general, the UAAL has increased as a result of a combination of actuarial changes in funding methods/assumptions, actual contributions less than the Full rate (phase‐in contributions) during calendar years 2009 – 2011 and a closed amortization period that produced negative amortization from 2007‐2013. Because level percent of payroll amortization produces increasing dollar amortization as payroll grows (assumed to increase at 3% annually), positive amortization (amortization payments greater than interest on the UAAL) begins around year 22. Fortunately, Canyon’s remaining amortization period in 2015 is 21 years so positive amortization is expected going forward all else being equal. As reflected in the charts/graphs discussed above, the UAAL is anticipated to trend toward zero over the next 21 years. It is important to note that all of the actuarial changes made from the 2007 valuation forward have been made in a proactive effort to stabilize contribution rates to the extent possible while promoting and maintaining actuarially sound financing. We believe most, if not all, of the major actuarial changes have been made. The Entry Age Normal funding method (adopted in 2013) is the most common funding method used in the public sector and also produces the most stable contribution rates over time. We do not anticipate any further change in funding method. In addition, in 2013 we adopted generational mortality tables which reflect the longer life expectancies of our annuitants over time. Many systems are struggling with how to reflect improved mortality and resulting cost increases, in their defined benefit plans where annuities are guaranteed over the lifetime of the retiree and/or their beneficiaries. TMRS contribution rates already reflect the costs of longer expected annuity payments. Finally, the current TMRS funding policy and statute requires the payment of the Actuarially Determined Employer Contribution rate (the normal cost rate and prior service rate for UAAL amortization) each year so contribution holidays are not allowed. In summary, after all the changes during the last several years, Canyon is now at the point where we should begin seeing progress in the UAAL amortization and funded status toward full funding. Thanks David Gavia Executive Director Texas Municipal Retirement System 1200 North IH 35 P.O. Box 149153 Austin, Texas 78714‐9153 david.gavia@tmrs.com 512‐225‐3701 voice 512‐225‐3786 fax 800‐924‐8677 toll‐free 2 REGARDING ITEM 8 AGENDA To: Mayor and City Commission From: Mike Webb, Fire Chief Date: November 24, 2015 Re: Consider and Take Appropriate Action on the Acceptance of a Texas Forest Grant for Personal Protective Equipment. ________________________________________________________________________ Texas Rural Fire Department Assistance Program (HB 2604) The Texas Rural Fire Department Assistance Program is a cost-share program funded by the Texas State Legislature. It provides funding annually directly to rural volunteer fire departments to enhance their capabilities with respect to training, equipment and fire incidents. The application for this grant was presented and approved by the City Commission on March 17, 2014. The Canyon Fire Department has been approved for the purchase of structural and wildland personal protective equipment in the amount of $16,800.00. The cost-share amount that the city will be responsible for is $1,680.00. It is the recommendation of staff to accept the Texas Rural Fire Department Assistance Program and approve the payment of $1,680.00 for the City of Canyon’s cost‐share portion. City of Canyon REGARDING ITEM 9 AGENDA To: Mayor and City Commission From: Randy Criswell, City Manager Date: November 24, 2015 Re: Consider and Take Appropriate Action on Resolution No. 24-2015, Ballot for Potter-Randall Appraisal District Director Elections. Recently, you nominated Joe Shehan to serve on the Randall County Appraisal District Board of Directors. We have now received our ballot. I have included the information received from PRAD. We have a total of 70 votes that can be cast any way you prefer. We have prepared Resolution No. 16-2013 for that purpose. If you’ll decide how you want to cast your votes, we’ll fill in the blanks. City of Canyon  RESOLUTION NO. 24-2015 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS CASTING VOTES FOR THE MEMBERS OF THE BOARD OF DIRECTORS OF RANDALL COUNTY APPRAISAL DISTRICT. WHEREAS, Section 6.03(c) of the Texas Property Tax Code Requires the appointment of the board of directors of an appraisal district by vote of the governing bodies of the taxing entities entitled by the Code to vote; and WHEREAS, by previous action, nominees for the Board of Directors of Randall County were submitted to the Chief Appraiser of said county; and WHEREAS, the City of Canyon is entitled by cumulative voting to seventy (70) votes for the Randall County Board; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON: SECTION 1. That ?? votes be cast for ???? on the ballot for the Randall County Appraisal District Board of Directors: No. of Votes 1. Dennis Beene 0 2. Elaine Dollar 0 3. Henry Hamilton 0 4. Joe Shehan 0 5. Jeff Bryant 0 6. James Barrington 0 TOTAL 70  INTRODUCED AND PASSED by the City Commission of The City of Canyon, this 7th day of December, 2015. ________________________________ QUINN J ALEXANDER, MAYOR ATTEST: _______________________________ Gretchen Mercer, City Clerk  AGENDA To: Randy Criswell, City Manager From: Dan Reese, Public Works Director Date: December 1, 2015 Re: Consider and Take Appropriate Action on Bids Received for 5-year Lease of the City Wastewater Treatment and Irrigation Facility (WWTIF; City Farm). Bids were received and opened November 10, 2015, for the next 5-year lease of the City’s Wastewater Treatment and Irrigation Facility, referred to as the City Farm. Packets were prepared and sent to eight bidders and three (3) bids were received. The yearly bids ranged from a little over $37,000 to $42,000 per year, for the roughly 1920 gross acres. Using the high bid, this translates to approximately $22 per acre, per year. During the Commission meeting of November 16, this item was postponed on advice from the City Attorney that some more vetting take place on the three bidders. We solicited more information from the bidders, including a five-year farm plan and had them sign releases for obtaining financial information from their bankers and to conduct criminal background checks on them as well. That process is complete. Criminal background checks were performed using the Texas DPS Crime Records Database. According to this database, no records were found on all three of the bidders. Telephone conversations were had with officials of the two high bidders’ referenced financial institutions. No financial issues with either of those bidders were expressed by their banks. The other bidder refused to sign the release. We have interviewed both of the two highest bidders, Darren Johnson and Wade Davis. We believe that all of our requirements of a tenant will be satisfied by either of these bidders. In the past, we’ve not really considered money being an object when it comes to this award recommendation, and have sought out the best tenant. This time, we believe that either of the two highest bidders would make good tenants, and simply have to turn to the economics to make the recommendation. Highest bid wins. We have attached a copy of the bid tabulation sheet for your information. The Public Works Department recommends award of the next five year lease of the City WWTIF to Darren Johnson of Happy, and that the City will receive the total lease amount of $ 210,000. City of Canyon BID TABULATION SHEET Wastewater Treatment and Irrigation Facility (Farm) Lease - 2015 City of Canyon Tuesday, November 10, 2015 – 2:00 p.m. Bidder Yearly Bid Total Amount Bid Wade Davis $ 38,560.00 $ 192,800.00 Canyon, TX Darren Johnson $ 42,000.00 $ 210,000.00 Happy, TX Scott Avent $ 33,571.00 $ 167,855.00 Canyon, TX