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 March 2016, 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 March 7, 2016. 5. Public Comment – Comments from Interested Citizens. 6. Proclamation Honoring Canyon High School Lady Eagles Basketball State Championship 2016. 7. Consider and Take Appropriate Action on Second and Final Reading of Resolution No. 03-2016 With Regards to the Conveyance of Property Located at 1512 5th Avenue to Blue Bison Investments, LLC. The Property is to be used for New Construction. 8. Consider and Take Appropriate Action on Recommendations from the Board of City Development (BCD) for 2016 Budget. 9. Consider and Take Appropriate Action on 2014-2015 Audit as Presented by the Audit Committee and Doshier, Pickens & Francis. 10. Consider and Take Appropriate Action on Appointment of Auditor for City of Canyon’s Budget Fiscal Year 2015-2016. 11. Executive Session Pursuant to Texas Government Code §551.071 Consultation With Attorney and §551.072 Real Property. 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 18th day of March 2016. Gretchen Mercer, City Clerk City of Canyon City Commission Meeting March 7, 2016 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 Mayor Pro-Tem Gary Hinders, Justin Richardson and David Logan. Commissioner Joe Shehan was unable to attend. Also present were the following City Staff: City Manager Randy Criswell, Assistant City Manager Chris Sharp, City Secretary Gretchen Mercer, Business and Community Development Director Evelyn Ecker, Fire Chief Mike Webb, Director of Public Works Dan Reese, Parks and Recreation Director Brian Noel, Police Chief Dale Davis and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Alexander called the meeting to order at 5:35 p.m. Item 2. Invocation. Mayor Pro-Tem Hinders gave the invocation. Item 3. Pledge of Allegiance. Lathan Lewter and Calvin Meador, third grade students from Crestview Elementary and members of Randall County 4H, led the Pledge of Allegiance. Item 4. Approval of Minutes of the Meeting of February 15, 2016. Commissioner Logan moved, duly seconded by Commissioner Richardson, to approve the minutes of February 15, 2016 as presented. Motion carried unanimously. Item 5. Approval of Minutes of the Special Meeting of February 22, 2016. Commissioner Logan moved, duly seconded by Commissioner Richardson, to approve the minutes of February 22, 2016 as presented. Motion carried unanimously. Item 6. Public Forum – Comments from Interested Citizens. Mayor Alexander commended City Manager Randy Criswell for an outstanding job serving as the United Way Amarillo-Canyon 2015-2016 Co-Chair. Mr. Criswell, along with United Way Staff Karen Logan, Katie Noffsker and Jeff Whitsell, then honored Municipal Court Clerk Sheila Seymore with the award of the 2015-2016 United Way Assistant Team Leader of the Year. Mr. Criswell commended Ms. Seymore, Public Works Administrative Assistant Kim Taylor-Payne, and Honnah Taylor for the great job they did as Loaned Executives for the United Way campaign. Mr. Dan Norman, 316 Country Club Drive, Canyon, Texas addressed the Commission. Mr. Norman said he lived in Canyon North and he, along with many home owners in Canyon North had concerns about the new development “Madison Park”. Mr. Norman respectively requested that there be some informative public meetings scheduled with Canyon North residents and the Madison Park developers. Mr. Norman said no one knew anything about the development and City Commission Meeting March 7, 2016 Page 2 of 4 felt it would ease a lot of tension if this could be done. Mr. Norman expressed a desire by all Canyon North residents that the deed restrictions in place for Canyon North property owners be respected since part of the Madison Park property was within the Canyon North boundaries. Item 7. Special Announcement by Chief Mike Webb on City of Canyon’s New ISO Rating. Fire Chief Mike Webb announced to the City Commission that after lots of hard work and change over the past few years, the City of Canyon had been awarded an ISO rating of 2, an increase from the previous rating of 3. Chief Webb said this rating is used as a protection class when calculating insurance premiums. Chief Webb stated the ratings range 1-10, 1 being highest. Chief Webb stated very few Fire Departments achieve this high of a ranking, and even fewer Volunteer Fire Departments. Chief Webb commended all involved on a great job of working together and achieving such a high ranking. Item 8. First Reading of Resolution No. 03-2016 With Regards to the Conveyance of Property Located at 1512 5th Avenue to Blue Bison Investments, LLC. The Property is to be Used for New Construction. Business and Community Development Director Evelyn Ecker presented Resolution No. 03-2016 for consideration. Ms. Ecker stated the property located at 1512 5th Avenue would be conveyed to Blue Bison Investments, LLC, who would construct approximately 10,600 square feet of buildings to be used as restaurant and retail space. Ms. Ecker said the spaces would line the east and west sides of the property leaving the center as a walkway from the new south parking lot to the square. Ms. Ecker said the developer, Stan Ware, has committed $1.5 million to the project. Ms. Ecker said communication with the surrounding businesses has taken place and will continue through the process to provide a positive experience. Construction is planned to begin in mid-April. Ms. Ecker said the Canyon Economic Development Corporation held a public hearing on Thursday, February 18, 2016 with no opposition. No action is required for the first reading of Resolution No. 03-2016. RESOLUTION NO. 03-2016 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING A PROJECT FUNDING AGREEMENT BETWEEN BLUE BISON INVESTMENTS, LLC. AND CANYON ECONOMIC DEVELOPMENT CORPORATION REGARDING A LAND GRANT FOR THE NEW CONSTRUCTION OF A MIXED USE DEVELOPMENT LOCATED AT 1512 5TH AVENUE. THE GRANT IS BASED ON THE DEVELOPMENT OF NEW BUSINESS OR EXPANDED BUSINESS ENTERPRISES. Item 9. Consider and Take Appropriate Action on Resolution No. 04-2016, A Resolution Suspending the Effective Date of SPS’s Rate Case Filed on February 16, 2016. City Manager Randy Criswell presented Resolution No. 04-2016 for consideration. Mr. Criswell stated SPS had filed an application to increase its base rates by approximately $72 million in City Commission Meeting March 7, 2016 Page 3 of 4 annual revenue, equating to an increase of 14.4%, with industrial rates changing from (-)21.72% to +23.78%, and 11.23% for residential. Mr. Criswell said the City of Canyon participates in the Alliance of Xcel Municipalities and would continue to work the AXM in the negotiation of the rates. After discussion, Commissioner Logan moved, duly seconded by Mayor Pro-Tem Hinders to adopt Resolution No. 04-2016 as presented. Motion carried unanimously. RESOLUTION NO. 04-2016 A RESOLUTION BY THE CITY OF CANYON, TEXAS (“CITY”) SUSPENDING SOUTHWESTERN PUBLIC SERVICE COMPANY’S PROPOSED EFFECTIVE DATE IN CONNECTION WITH ITS STATEMENT OF INTENT SUBMITTED ON ABOUT FEBRUARY 16, 2016; AUTHORIZING THE CITY TO JOIN WITH OTHER CITIES IN THE ALLIANCE OF XCEL MUNICIPALITIES (“AXM”) TO DIRECT THE ACTIVITIES OF LAWYERS AND CONSULTANTS; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT EXPENSES; REQUIRING PROOF OF NOTICE; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. Item 10. Consider and Take Appropriate Action on Resolution No. 05-2016, A Resolution Approving a Negotiated Resolution between the Atmos West Texas Cities Steering Committee and Atmos Energy Regarding the Company’s 2015 Rate Review. Assistant City Manager Chris Sharp presented Resolution No. 05-2016 for consideration. Mr. Sharp stated the original rate increase sought by Atmos West Texas was $4.2 million in increased revenues. Mr. Sharp said the Steering Committee negotiated the revenue increase to $3.2 million that would impact the average residential customer by $0.50 in base charges and $.02188 in consumption charges. After discussion, Mayor Pro-Tem Hinders moved, duly seconded by Commissioner Logan to adopt Resolution No. 05-2016 as presented. Motion carried unanimously. RESOLUTION NO. 05-2016 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS, APPROVING A NEGOTIATED RESOLUTION BETWEEN THE ATMOS WEST TEXAS CITIES STEERING COMMITTEE (“WTX CITIES”) AND ATMOS ENERGY CORP., WEST TEXAS DIVISION REGARDING THE COMPANY’S 2015 RATE REVIEW MECHANISM FILING; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC INTEREST; REQUIRING THE COMPANY TO REIMBURSE CITIES’ REASONABLE RATEMAKING EXPENSES; DETERMINING THAT THIS RESOLUTION WAS PASSED IN ACCORANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; City Commission Meeting March 7, 2016 Page 4 of 4 DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS RESOULUTION TO THE COMPANY AND THE WTX CITIES’ LEGAL COUNSEL. Item 11. Executive Session Pursuant to Texas Government Code, §551.072 Regarding Real Property; and §551.071 Consultation with Attorney. Mayor Alexander indicated the Commission would adjourn into executive session at 6:12 pm. Commissioner Richardson took leave of the meeting at 6:30 pm. Item 12. Consider and Take Appropriate Action on Items Discussed in Executive Session. Upon returning from executive session at 7:27 pm, the following action was taken. Mayor Pro-Tem Hinders moved, duly seconded by Commissioner Logan to appoint Commissioner Richardson to serve as the Government Representative on the Fireman Pension Board, and if he declined, Mayor Alexander would be appointed. Motion carried unanimously. Commissioner Logan moved, duly Seconded by Mayor Pro-Tem Hinders to authorize City Manager Randy Criswell to execute any closing documents for the property purchased by the City of Canyon and located at 22850 Brown Road, Canyon, Texas. Motion carried unanimously. Commissioner Logan moved, duly seconded by Mayor Pro-Tem Hinders to authorize City Manager Randy Criswell to take appropriate action to sell surface rights of city owned property located at 22850 Brown Road, Canyon, Texas, subsequent to the City closing on the property. Motion carried unanimously. Item 13. Adjournment There being no further business, Mayor Pro-Tem Hinders moved this meeting be adjourned. ______________________________ Quinn Alexander, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary REGARDING ITEM 7 AGENDA To: Randy Criswell, City Manager; Mayor and City Commission From: Evelyn Ecker, Executive Director Canyon Economic Development Corp. Date: March 10, 2016 Re: Consider and Take Appropriate Action on Second and Final Reading of Resolution No. 03-2016 With Regards to the Conveyance of Property Located at 1512 5th Avenue to Blue Bison Investments, LLC. The Property is to be used for New Construction. _________________________________________________________________________ The Canyon Economic Development Corporation held a public hearing on Thursday, February 18th with regards to the conveyance of the property located at 1512 5th Avenue. The property is being considered as a land grant and to be used for new construction. Please find attached the Resolution for this project and Funding Agreement. This is the second and final reading and it is the recommendation of staff to approve Resolution No. 03-2016. City of Canyon  CANYON ECONOMIC DEVELOPMENT CORPORATION PROJECT FUNDING AGREEMENT BLUE BISON INVESTMENTS, LLC 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 Blue Bison Investments, LLC a Texas Limited Liability Company (hereinafter referred to as “Second Party.”) 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 Chapter 504 and 505 TEX. LOC. GOV’T CODE, formerly 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 shall construct retail store space at 1512 5th Avenue, Canyon, Texas and a pedestrian walkway providing access between 5th Avenue and the parking lot between 5th Avenue and 6th Avenue south of the store location. b. The improvements shall be constructed on Lots 5, 6, 7 and 8, Block 50, Original Town of Canyon, Randall County, Texas at Second Party’s expense. c. The improvements contemplated by this agreement shall be constructed in accordance with written plans and specifications and approved by CEDC. d. Second Party will remain in business in Canyon for a period of (5) years from the date of funding by CEDC and at least 50% of the store space at 1512 5th Avenue, Canyon, Texas, shall be utilized for retail sales, unless the CEDC Board should approve an exception for office space or other compatible use of the property. 3. The CEDC will provide the land described in ¶2(b) above for the purpose of the construction project. a. All other terms and provisions of this agreement notwithstanding, the obligations of the parties hereto are expressly made contingent upon the following: PROJECT FUNDING AGREEMENT - BLUE BISON INVESTMENTS, LLC Page -1-  i. approval of the financial incentives by the CEDC Board; ii. approval of the financial incentives by the Canyon City Commission; and, iii. compliance with the requirements of the Texas Development Corporation Act. 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. In such event, all financial incentives provided by CEDC to Second Party shall be repaid to CEDC upon demand, and the Deed of Trust referred to above shall be subject to foreclosure unless the sums due are timely repaid to CEDC. 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. b. Permit an audit by the CEDC of the books and financial records of Second Party, to determine whether Second Party is in compliance with this agreement. c. Permit periodic inspection of improvements to 1512 5th Avenue, Canyon, Texas as work progresses. 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. The execution of this agreement has been duly authorized by the governing body of Second Party and all necessary corporate approvals have been obtained. Second Party’s designated agent or officer executing this agreement is duly authorized and empowered to execute this agreement and bind Second Party to the covenants, warranties and other terms of this agreement. Second Party’s execution of this agreement and the performance thereof is not contrary to any law, rule, regulation, or provisions of Second Party’s organizational documents or any contract, PROJECT FUNDING AGREEMENT - BLUE BISON INVESTMENTS, LLC Page -2-  instrument, or agreement to which Second Party is a party or by which it may be bound at the time this agreement is executed. The necessary authority for the agent whose signature that appears below is evidenced by a resolution or certificate furnished to CEDC or attached to this agreement. d. 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. e. 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. f. 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. g. 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. h. 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. i. 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. j. 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. k. Second Party shall timely and fully perform and comply with all terms and conditions of this agreement. PROJECT FUNDING AGREEMENT - BLUE BISON INVESTMENTS, LLC Page -3-  l. 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. m. 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. 8. Second Party agrees to the following reports and monetary requirements in connection with the project: a. Second Party shall provide periodic reports as requested by the CEDC. b. During normal business hours, Second Party shall allow a representative of the CEDC reasonable access to its books and records to verify compliance with this agreement. CEDC agrees to maintain the confidentiality of such records. Information shall be used only for the purpose of administering the funding provided by CEDC pursuant to this agreement and for no other purpose; provided however, CEDC may, if required by legal process or at the discretion of the office of the Attorney General provide such documentation to a third party as is required by the Attorney General or pursuant to such legal process. 9. 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 PROJECT FUNDING AGREEMENT - BLUE BISON INVESTMENTS, LLC Page -4- by the CEDC to Second Party subject to refund shall be 6% per annum from the date of default. 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. 10. In the event of unforeseeable 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. 11. 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. 12. 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. 13. 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, attorney’s 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 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. 14. 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. PROJECT FUNDING AGREEMENT - BLUE BISON INVESTMENTS, LLC Page -5-  15. 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. 16. 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. 17. 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. 18. 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 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. 19. 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. 20. 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. 21. 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. 22. 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 finders fee or other origination fee of any type will be paid or will become PROJECT FUNDING AGREEMENT - BLUE BISON INVESTMENTS, LLC Page -6- 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. 23. 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. 24. 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. Effective Date: SECOND PARTY: CANYON ECONOMIC DEVELOPMENT BLUE BISON INVESTMENTS, LLC CORPORATION By:_______________________________ By:_________________________________ Randy Croslin, President/Chairman Stanley H. Ware, Managing Member Address: 1604 4th Avenue, Suite 21 Address: P. O. Box 389 Canyon, Texas 79015 Canyon, Texas 79015 Telephone: (806) 656-6833 Telephone: PROJECT FUNDING AGREEMENT - BLUE BISON INVESTMENTS, LLC Page -7-  RESOLUTION NO. 03-2016 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING A PROJECT FUNDING AGREEMENT BETWEEN BLUE BISON INVESTMENTS, LLC. AND CANYON ECONOMIC DEVELOPMENT CORPORATION REGARDING A LAND GRANT FOR THE NEW CONSTRUCTION OF A MIXED USE DEVELOPMENT LOCATED AT 1512 5TH AVENUE. THE GRANT IS BASED ON THE DEVELOPMENT OF NEW BUSINESS OR EXPANDED BUSINESS ENTERPRISES. WHEREAS, on February 18, 2016, the Canyon Economic Development Corporation (“CEDC”) conducted 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 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. 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 Blue Bison Investments, LLC. 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 Blue Bison Investments, LLC; regarding the use of funds from the Sales Tax Improvement Fund (Fund 40) for costs related to the project. INTRODUCED at the First Reading on the 7th day of March 2016 and Adopted on the Second Reading on the 21st day of March 2016. ________________________________ QUINN J ALEXANDER, MAYOR ATTEST: _______________________________ Gretchen Mercer, City Clerk REGARDING ITEM 8 AGENDA To: Mayor and City Commission From: Chris Sharp, Assistant City Manager Date: March 9, 2016 Re: Consider and Take Appropriate Action of Recommendations from Board of City Development (BCD) for 2016 Budget. The Board of City Development met on February 18, 2016 to review and consider the proposed budget for the 2016 fiscal year. Requests were received from WTAMU, Texas, PPHM, Main Street, Canyon Chamber of Commerce, and Kids Inc. As you will recall, money for this budget comes from Hotel Occupancy (HOT) which is collected by our local hotels. Collections for 2015 were up almost 14% from the previous year as total collections came in at $207,762. The Board feels confident that collections will be at least the same if not more for 2016. Supporting documentation is attached. The Board unanimously voted to recommend a budget of $179,000 for 2016. These allocations are as follows: Billboard Lease $6,000 Xcel Energy $2,000 Texas $35,000 WTAMU $40,000 PPHM $35,000 Chamber of Commerce $56,000 Canyon Main Street $2,000 Kids Inc. $3,000 Total $179,000 Total amount of reserves for the BCD after all 2015 requests were paid is around $34,500. Recommendation: Staff recommends approval of the 2016 BCD budget as presented. City of Canyon BCD Funding Requests - 2016 Anticipated Budget Total Available $190,000 Amount in account as of 12/31/15 $68,760 Estimated Fund Balance $34,500* Entity Budgeted Requested Budget Proposed Budget Last Year Billboard Land Lease $ 6,000.00 $6,000.00 $6,000.00 Xcel Energy (electricity for billboard) $ 1,400.00 $1,400.00 $2,000.00 Texas Panhandle Heritage Foundation $ 34,000.00 $35,000.00 $35,000.00 Advertising, Promotion WTAMU $ 34,000.00 $75,000.00 $40,000.00 Student Recruitment, Special Events Panhandle Plains Historical Museum $ 34,000.00 $50,000.00 $35,000.00 Marketing, Website Development, Promotional Efforts at conferences, Administrative Costs Chamber of Commerce $ 33,000.00 $117,415.00 $56,000.00 Texas Plains Trail Convention $ 3,500.00 July 4th Celebration $ 60,000.00 Fair on the Square $ 7,500.00 Website Development $ 4,800.00 Chamber Brochure Production $ 11,000.00 Hotel/Travel/Restaurant Co-op Ads $ 9,190.00 Canyon Main Street $ 25,000.00 $2,000.00 $2,000.00 Advertising Kids Inc $ 3,000.00 $3,000.00 $3,000.00 Basketball Tournament of Champions Palo Duro Creek Women's Golf Assoc. $ - $0.00 $0.00 24th Annual Western Lone Star Tourney TOTAL $170,400.00 $289,815.00 $179,000.00 * This includes a $9,500 payback from the Canyon Main Street Actual Totals Revenues 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Buffalo Inn $9,855.72 $9,328.81 $6,967.45 $9,484.09 $10,460.14 $9,329.00 $10,514.42 $9,491.36 $10,917.97 $12,612.67 Cottage $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,277.49 $1,305.19 Holiday Inn $61,344.04 $81,773.25 $71,844.65 $82,511.50 $64,438.67 $72,239.00 $86,990.73 $88,045.76 $95,387.45 $109,065.70 Buffalo Junction B&B $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $982.14 Goodnight Inn $11,508.81 $1,321.81 $0.00 $1,212.74 $0.00 $0.00 $853.19 $1,393.83 $1,334.12 $935.55 Hudspeth House $4,644.57 $5,133.03 $5,277.71 $5,139.24 $5,437.92 $6,189.00 $5,457.79 $7,628.84 $7,534.86 $7,808.10 Best Western $41,802.67 $47,193.28 $48,610.35 $54,714.87 $56,156.95 $54,817.21 $57,358.96 $60,916.33 $64,381.05 $75,043.80 Interest $586.05 $2,773.42 $1,688.59 $355.29 $309.47 $245.04 $98.77 $251.96 $9.48 $9.08 Total Revenues $129,741.86 $147,523.60 $134,388.75 $153,417.73 $136,803.15 $142,819.25 $161,273.86 $167,728.08 $181,842.42 $207,762.23 Expenditures Xcel $510.85 $930.21 $915.20 $870.96 $1,287.91 $1,214.00 $1,207.08 $1,401.95 $976.29 $2,328.00 Billboard Land Lease $1,440.00 $720.00 $720.00 $2,483.28 $1,200.00 $6,000.00 $6,000.00 $7,111.06 $6,477.94 $6,000.00 Chamber of Commerce $21,989.84 $25,958.30 $28,993.38 $24,899.60 $25,000.00 $25,000.00 $25,000.00 $35,250.00 $33,000.00 $33,000.00 PPHM $26,000.00 $37,000.00 $40,000.00 $32,000.00 $32,000.00 $35,000.00 $35,000.00 $49,802.21 $34,000.00 $34,000.00 TEXAS $26,000.00 $32,000.00 $39,967.87 $32,000.00 $32,000.00 $35,000.00 $35,000.00 $35,000.00 $34,000.00 $34,000.00 Main Street $4,147.62 $7,389.39 $7,774.86 $2,700.00 $26,000.00 $20,000.00 $26,000.00 $38,518.00 $ 25,000.00 $25,000.00 WTAMU $32,715.58 $33,000.00 $40,000.00 $32,000.00 $32,000.00 $32,000.00 $32,000.00 $49,000.00 $34,000.00 $34,000.00 Kid's Inc $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 Sign Rental $1,395.00 $455.00 $6,448.00 $0.00 Other Expenditures $49.97 $3,000.00 . Total Expenditures $112,803.89 $136,997.90 $158,371.31 $126,953.84 $149,487.91 $158,609.00 $163,662.08 $219,133.19 $176,902.23 $174,328.00 Difference $16,937.97 $10,525.70 -$23,982.56 $26,463.89 -$12,684.76 -$15,789.75 -$2,388.22 -$51,405.11 $4,940.19 $33,434.23 REGARDING ITEM 9 AGENDA To: Mayor and City Commission From: Chris Sharp, Assistant City Manager Date: March 11, 2016 Re: Consider and Take Appropriate Action on 2014-2015 Audit as Presented by the Audit Committee and Doshier, Pickens & Francis. The Audit Committee meet with auditors from Doshier, Pickens & Francis on March 11th to review and discuss the city’s audit. The audit committee consists of the Mayor Quinn Alexander, Mayor Pro-Tem Gary Hinders, Randy and myself. A copy of the audit will be uploaded for your review. Key points of the audit are; • City was issued a clean audit opinion • Overall increase in net position this year was $ 472,288. Of this, governmental activities increased by $ 447,889, business-type activities increased by $ 24,399. • Ending net position for the fiscal year reported is $ 50,299,237 • The unrestricted net position for Government Activities is $ 5,257,193 meaning the • Cash and Cash equivalents is $ 4,546,565 • Unrestricted net position in the utility fund is $ 4,546,565 It is the recommendation of the Committee that the Audit be approved. City of Canyon CITY OF CANYON, TEXAS ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2015 REGARDING ITEM 10 AGENDA To: Mayor and City Commission From: Chris Sharp, Assistant City Manager Date: March 15, 2016 Re: Consider and Take Appropriate Action on Appointment of Auditor for City of Canyon’s Budget Fiscal Year 2015-2016 . Doshier, Pickens & Francis has been performing the City’s audit for the last two years. We are very satisfied with their service and wish to continue having them conduct our audit. It is staff’s recommendation that Doshier, Pickens & Francis be appointed as the City of Canyon’s auditor for FY 2015-2016. City of Canyon