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 25th day of July 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 Special Meeting of June 30, 2016. 5. Approval of the Minutes of the Meeting of July 11, 2016. 6. Public Comment – Comments from Interested Citizens. 7. Consider and Take Appropriate Action on Quarterly Finance Report by Finance Director Chris Sharp. 8. Consider and Take Appropriate Action on Quarterly Investment Report by Finance Director Chris Sharp. 9. Consider and Take Appropriate Action on Resolution No. 12-2016 Awarding City of Canyon’s Depository Bank Contract. 10. Consider and Take Appropriate Action on Review of Public Comments and Possible Goals to be Set. 11. Budget Work Session. 12. Consider and Take Appropriate Action on Taking Record Vote on Proposed Tax Rate, and Adopt Budget Calendar Setting Dates for Public Hearing. 13. Executive Session Pursuant to Texas Government Code §551.071 Consultation with Attorney, §551.072 Real Property, §551.087 Economic Development Negotiations, and §551.074 Personnel (Canyon Economic Development Corporation Board of Directors). 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 22nd day of July 2016. Gretchen Mercer, City Clerk City of Canyon City Commission Special Meeting June 30, 2016 The City Commission of the City of Canyon met in special session at 1:30 p.m. in the Adobe Room of the Cole Community Center at 300 16th Street, Canyon, Texas. Mayor Alexander presided over the meeting with the following Commissioners in attendance Mayor Pro-Tem Gary Hinders, Justin Richardson David Logan and Joe Shehan. Also present were the following City Staff: City Manager Randy Criswell, Assistant City Manager Chris Sharp, Assistant City Manager for Special Projects Jon Behrens, Director of Code Enforcement Danny Cornelius, and Director of Public Works Dan Reese. Item 1. Call to Order. Mayor Alexander called the meeting to order at 1:35 p.m. Item 2. Invocation. Commission Richardson gave the invocation. Item 3. Pledge of Allegiance. The Pledge of Allegiance was led by Code Enforcement Director Danny Cornelius. Item 4. Public Comments – Comments from Interested Citizens. No Public Comments were made. Item 5. Consider and Take Appropriate Action on Comments Received from Public Through Recently Conducted Public Meetings and Surveys. Assistant City Manager for Special Projects Jon Behrens presented information compiled from Public Meetings and Surveys recently conducted. Discussion was held on the results and possible goals taken from the public meetings and survey results. No official action was taken, and staff will bring this up on a future agenda. Item 6. Adjournment. There being no further business, Mayor Pro-Tem Hinders moved this meeting be adjourned. ______________________________ Quinn Alexander, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary City Commission Meeting July 11, 2016 The City Commission of the City of Canyon met in regular session at 12:00 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, Joseph Shehan, and Justin Richardson. Commissioner David Logan was 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, Public Works Director Dan Reese, Business and Community Development Director Evelyn Ecker, Chief of Police Dale Davis, Librarian Sandra Munger, Golf Course Manager John Haun, Fire Chief Mike Webb, Parks and Recreation Director Brian Noel and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Alexander called the meeting to order at 12:08 p.m. Item 2. Invocation. Commissioner Richardson gave the invocation. Item 3. Pledge of Allegiance. The Pledge of Allegiance was led by Librarian Sandra Munger. Item 4. Approval of Minutes of the Meeting of June 20, 2016. Commissioner Shehan moved, duly seconded by Commissioner Richardson, to approve the minutes of June 20, 2016 as presented. Motion carried unanimously. Item 5. Public Comment– Comments from Interested Citizens. No Public Comment was made. Item 6. Budget Presentation and Work Session. City Manager Randy Criswell presented the proposed City of Canyon Budget for Fiscal Year 2016-2017 with a power point presentation highlighting major changes and requests by various departments. City of Canyon Department Heads were present to answer any questions. Item 7. Consider and Take Appropriate Action on Second and Final Reading of Resolution No. 10-2016 for the Purchase of Property Located at 502 15th St. Owned by Read Automotive. Business and Community Development Director Evelyn Ecker presented Resolution No. 10-2016 for its final reading. The Canyon Economic Development Corporation voted to enter into a contract for the purchase of the property located at 502 16th Street from the Paul Read Trust at their May 12, 2016 meeting for $150,000. The proposed closing date is on or before July 27, City Commission Meeting July 11, 2016 Page 2 of 3 2016. The Canyon Economic Development Corporation purchased the property for the purpose of new business development. After discussion, Mayor Pro-Tem Hinders moved, duly seconded by Commissioner Richardson to adopt Resolution No. 10-2016 as presented. Motion carried unanimously. RESOLUTION NO. 10-2016 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING THE PURCHASE OF PROPERTY CONSISTING OF LOTS 1, 2, AND 3, BLOCK 49, ORIGINAL TOWN OF CANYON, RANDALL COUNTY, TEXAS, BY THE CANYON ECONOMIC DEVELOPMENT CORPORATION. Item 8. Consider and Take Appropriate Action on Second and Final Reading of Resolution No. 11-2016 With Regards to Direct Financial Assistance for New Business, Panhandle Tap Room. Business and Community Development Director Evelyn Ecker presented Resolution No. 11-2016 for its final reading. The Canyon Economic Development Corporation voted to offer direct financial assistance to the Panhandle Taproom LLC located at 410 15th Street, Canyon, Texas at their meeting May 12, 2016. The Panhandle Taproom is set to open mid to late August and will employ approximately 10 full-time and 15 part-time employees. A maximum of $46,000 would be reimbursed for lease assistance with 50% in the first 12 months, not to exceed $23,000; 30% the second year, not to exceed $13,000; and the final year would be reimbursed 20% not to exceed $9,200, all paid in arrears. After discussion, Commissioner Richardson moved, duly seconded by Mayor Pro Tem Hinders to adopt Resolution No. 11-2016 as presented. Motion carried unanimously. RESOLUTION NO. 11-2016 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING PROJECT FUNDING AGREEMENT BETWEEN PANHANDLE TAPROOM LLC. AND CANYON ECONOMIC DEVELOPMENT CORPORATION REGARDING DIRECT FINANCIAL ASSISTANCE FOR A PROJECT LOCATED AT 410 15TH STREET, CANYON, TEXAS. THE FUNDING IS BASED ON NEW BUSINESS DEVELOPMENT. Item 9. Consider and Take Appropriate Action on Bids Received for Water Distribution System Improvements – 12” Water Line in Brown Road from 4th Avenue to U.S. Highway 60 – EDA Project #08-01-0539. Director of Public Works Dan Reese presented bids received for Water Distribution System Improvements to meet water needs for the development and construction of the Lone Star Dairy Products facility. Mr. Reese said 6 bids were received and opened Tuesday, July 5, 2016. Mr. Reese stated the project estimate for construction was $234,000.00 and a low bid of $109,175.00 was received from Scott Wampler Construction. Mr. Reese said the City of Canyon has worked with Scott Wampler before and were confident the city would receive a quality job. City Commission Meeting July 11, 2016 Page 3 of 3 Bid Tabulation Sheet Water Distribution System Improvements 12” Water Line in Brown Road from 4th Ave To U.S. Highway 60 Canyon, Texas July 5, 2016 Project to be completed on or before October 28, 2016 Scott Wampler Construction $109,175.00 West Texas Utility Contractors $117,972.00 Amarillo Utility Contractors $122,840.00 MH Civil Construction $155,622.00 L.A. Fuller & Sons $160,946.00 J & H Services $163,120.00 Mr. Reese said staff agreed with the City Engineer and recommended awarding the bid to Scott Wampler Construction in the amount of $109,175.00. After discussion, Mayor Pro-Tem Hinders moved, duly seconded by Commissioner Shehan to award the bid for Water Distribution System Improvements 12” water line in Brown Road from 4th Avenue to U.S. Hwy 60 to Scott Wampler Construction with a bid amount of $109,175.00. Motion carried unanimously. Item 10. Executive Session Pursuant to Texas Government Code, §551.071 Consultation with Attorney; and §551.072 Real Property. Mayor Alexander indicated the Commission would adjourn into executive session at 4:01 pm. Item 11. Consider and Take Appropriate Action on Items Discussed in Executive Session. Upon returning from executive session at 5:46 pm, no action was taken. Item 12. 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 FROM: Chris Sharp, Assistant City Manager DATE: July 20, 2016 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 June 30, 2016 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 $_2,974,534. Total securities pledged by Happy State Bank including the FDIC insurance is $_7,268,402. 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 June 30, 2016. City of Canyon  City of Canyon QUARTERLY FINANCE REPORT Quarter ending: 03/31/16 06/30/2016 Interest Rate EMERGENCY MANAGEMENT 0.02 $ 63,811.46 $ 61,354.32 LIBRARY GIFT & MEMORIAL 0.02 $ 4,188.38 $ 4,999.39 GENERAL FUND DEMAND ACCT 0.02 $ 932,080.71 $ 424,043.18 WW/SS FUND DEMAND ACCT. 0.33 $ 1,385,581.24 $ 1,474,770.98 BCD 0.02 $ 89,562.00 $ 30,968.84 LEOSE 0.02 $ 12,998.54 $ 13,000.36 C.E.D.C (ECONOMIC DEVELOPMEN 0.02 $ 350,640.31 $ 273,642.53 C.E.D.C. MARKETING ACCOUNT 0.02 $ 101,125.34 $ 106,566.77 EMPLOYEES FLOWER FUND 0.02 $ 1,504.50 $ 2,083.14 D-FI-IT PROGRAM 0.02 $ 4,594.75 $ 4,595.40 Palo Duro Golf Administration 0.02 $ 286,318.63 $ 197,509.92 Capital Equipment Account 0.33 $ 195,514.52 $ 381,000.04 CHECKING / SAVINGS ACCOUNTS BALANCES $ 3,427,920.38 $ 2,974,534.87 TOTAL FUNDS FOR SECURITY PLEDGES $ 3,427,920.38 $ 2,974,534.87 WW/SS Utility Insured Cash Sweep Account (CDARS) Interest 0.33 $ 2,906,862.06 $ 2,909,434.53 TOTAL AMOUNT OF FUNDS IN BANK $ 6,334,782.44 $ 5,883,969.40 SECURITIES PLEDGED HAPPY STATE BANK RECEIPT DATE DESC. AMOUNT MARKET NUMBER MATURED VALUE 3137ASNJ9 03/25/2022 FHMS $1,609,823.88 $1,615,149.76 169412QN6 08/15/2027 China Spring ISD $1,058,152.38 $1,029,276.10 552410ER9 08/15/1930 Lytle TX ISD $569,776.20 $596,508.45 667825YM9 02/15/1932 Northwest TX ISD $1,059,009.05 $1,112,358.80 8821172L7 07/01/1931 TX A&M UNV Fund $1,222,959.19 $1,246,860.00 31394FB87 05/25/1933 FNR $1,432,458.53 $1,418,249.86 FDIC INSURANCE $100,000.00 $250,000.00 Total Security Pledges $7,052,179.23 $7,268,402.97 Total Outstanding debt from 2012 issued CO's and 2013 refunded CO's $17,001,988 Summary of funds spent outside of budget: EDA Grant Match $ 560,000.00  Summary of Revenues General Fund Summary of Month Ending June 2016 Percentage to Major Revenues 06/30/2016 Budgeted Amount Budget 75% Sales Tax General Fund 793067 Franchise Taxes Sales Tax $ 1,578,998.00 $ 1,900,000.00 83.11% Mixed Beverage Tax Franchise Taxes $ 485,495.00 $ 690,000.00 70.36% 2227101 348920 Municipal Court Fines Mixed Beverage Tax $ 5,470.00 $ 11,000.00 49.73% 5657 Other Income Municipal Court Fines $ 205,657.00 $ 320,000.00 64.27% Fire Service Randall County Other Income $ 41,731.00 $ 40,000.00 104.33% 168631 Fire Service Randall 2585 Randall County, Library Funding County $ 201,722.00 $ 239,416.00 84.26% 588979 Commercial Solid Waste 126336 Randall County, Library Residential Solid Waste Funding $ 37,500.00 $ 50,000.00 75.00% Ad Valorem Taxes 25000 Commercial Solid Waste $ 278,544.00 $ 348,500.00 79.93% 182251 Residential Solid Waste $ 895,865.00 $ 1,115,400.00 80.32% Ad Valorem Taxes $ 2,275,544.00 $ 2,340,000.00 97.25% Total General Fund Revenues $ 6,541,476.00 $ 8,711,212.00 75.09% Total General Fund Summary of Revenues Utility Fund Expenses $ 6,078,100.00 $ 8,711,212.00 69.77% 35641 Water Receipts 6000 8445 20100 Utility Fund Waste Water Receipts Water Receipts $ 3,002,555.00 $ 4,095,000.00 73.32% Waste Water Receipts $ 1,696,283.00 $ 2,420,000.00 70.09% Lease Income Lease Income $ 54,003.00 $ 54,003.00 100.00% 968904 Penalties Penalties $ 61,817.00 $ 60,000.00 103.03% T-on & Reconnection T‐on & Reconnection Revenue 1799869 Revenue $ 19,610.00 $ 18,000.00 108.94% Water Taps Water Taps $ 35,435.00 $ 30,000.00 118.12% Total Utility Fund Revenues $ 4,927,235.00 $ 6,735,503.00 73.15% Total Utility Fund Expenses $ 3,665,011.00 $ 6,735,503.00 54.41% Palo Duro Creek Golf Course Budgeted Amount Percentage to Budget Revenues to Date $526,436.00 $1,152,554.00 45.68% Exenditures to Date $925,517.00 $1,152,554.00 80.30%  CITY OF CANYON SALES TAX COLLECTION HISTORY FISCAL YEAR 2015-2016 % INCREASE/ % INCREASE/ 2015-2016 TOTAL 2013-2014 2014-2015 DECREASE 14-15 2015-2016 DECREASE 15-16 YEAR-TO-DATE YEAR-TO-DATE MONTH COLLECTIONS COLLECTIONS OVER 13-14 COLLECTIONS OVER 14-15 COLLECTIONS TAXABLE SALES ** OCTOBER $188,929 $223,456 18.28% $239,346 7.11% $239,346 $15,956,400 NOVEMBER $225,885 $216,081 -4.34% $256,488 18.70% $495,834 $33,055,600 DECEMBER $292,194 $185,766 -36.42% $266,745 43.59% $762,579 $50,838,600 JANUARY $184,408 $214,709 16.43% $208,797 -2.75% $971,376 $64,758,400 FEBRUARY $242,684 $217,411 -10.41% $261,746 20.39% $1,233,122 $82,208,133 MARCH $182,850 $177,351 -3.01% $247,382 39.49% $1,480,504 $98,700,267 APRIL $169,113 $226,391 33.87% $182,646 -19.32% $1,663,150 $110,876,667 MAY $215,922 $249,330 15.47% $253,438 1.65% $1,916,588 $127,772,533 JUNE $173,509 $193,998 11.81% -100.00% $1,916,588 $127,772,533 JULY $164,186 $187,474 14.18% -100.00% $1,916,588 $127,772,533 AUGUST $204,038 $247,697 21.40% -100.00% $1,916,588 $127,772,533 SEPTEMBER $185,479 $202,362 9.10% -100.00% $1,916,588 $127,772,533 TOTALS $2,429,197 $2,542,026 $1,916,588  REGARDING ITEM 8 AGENDA TO: Randy Criswell, City Manager FROM: Chris Sharp, Assistant City Manager DATE: July 20, 2016 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 June 30, 2016 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 $3,020,378. These funds have been invested in the CDARS program and in CDs through Happy State Bank. The Canyon EDC also has investments in the CDARS program in the amount of $174,590. The City’s 2012 certificates of obligation funds have been invested into a CDARS investment account and has a balance of $2,910,757. Total funds on hand, which includes funds in depository accounts as well as funds in investments total $8,904,347. 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 Investment Report for the Quarter Ending June 30, 2016. City of Canyon  QUARTERLY INVESTMENT REPORT Quarter ending: 03/31/2016 06/30/2016 Interest Rate Interest earned CERTIFICATE OF DEPOSITS: for quarter CD# Interest Rate 6611 CEDC CD 0.24969 $ 57,370.61 $ 57,437.00 $ 66.39 6646 CEDC CD 0.24969 $ 58,491.93 $ 58,561.00 $ 69.07 14897 CEDC CD 0.05 $ 58,525.15 $ 58,592.00 $ 66.85 CDARS CERTIFICATES OF DEPOSIT $ 174,387.69 $ 174,590.00 14674 GENERAL FUND CD 0.57% $ 249,511.17 $ 249,803.19 $ 292.02 15076 GENERAL FUND CD 0.57% $ 149,110.74 $ 149,205.53 $ 94.79 14895 GENERAL FUND CD 0.57% $ 506,196.32 $ 506,769.35 $ 573.03 6718 GENERAL FUND CD 0.57% $ 148,860.48 $ 149,034.71 $ 174.23 14970 GENERAL FUND CD 0.57% $ 150,576.24 $ 150,739.87 $ 163.63 9952 GENERAL FUND CD 0.57% $ 614,015.19 $ 614,256.91 $ 241.72 14675 WW/SS FUND CD 0.57% $ 596,910.56 $ 597,609.18 $ 698.62 14971 WW/SS FUND CD 0.57% $ 602,305.24 $ 602,959.78 $ 654.54 TOTAL AMOUNT IN CDARS $3,017,485.94 $ 3,020,378.52 TOTAL AMOUNT OF FUNDS IN BANK $6,955,868.75 $ 5,883,969.40 TOTAL FUNDS ON HAND $9,973,354.69 $ 8,904,347.92 2012 Certificates of Obligations (Invested in CDARS account) .33% $ 5,831,392.69 $ 2,910,757.14 $ 7,493.34 REGARDING ITEM 9 AGENDA To: Randy Criswell, City Manager From: Chris Sharp, Assistant City Manager Date: July 19, 2016 Re: Consider and Take Appropriate Action on Resolution No. 12-2016 Awarding City of Canyon’s Depository Bank Contract It is time for the City to review and award a two year contract (with three one-year extensions option) to a bank for depository services. With the help of Valley View Consulting, the City sent out requests for proposals for depository services. We received 3 proposals and a recap analysis is included in this packet. The 3 responses to the proposals are broken out for a side by side comparison. Also included in the analysis is a recommendation from Valley View Consulting. After careful consideration and analysis, it is staff’s recommendation that the Commission adopt Resolution No. 12-2016 authorizing the City Manager to enter into negotiations with Happy State Bank for a two year contract with an option for three one- year extensions to Happy State Bank. City of Canyon July 19, 2016 Mr. Chris Sharp Assistant City Manager City of Canyon 301 16th Street Canyon, TX 79015 Dear Mr. Sharp: We sincerely appreciate our new relationship and welcome the opportunity to assist the City of Canyon (the “City”) with this Primary Depository Bank Services Request for Applications (the “RFA”) project. The objective of this engagement was to select a primary depository bank following the expiration of the current contract which ends August 31, 2016. This agreement, when approved, will commence on September 1, 2016 and terminate on August 31, 2018 with three additional one-year extension options which will extend through August 31, 2021 if executed. Procedure The project began with the establishment of a calendar of events to ensure that the required project steps were performed in a timely and sequential manner. The process for selecting a Primary Depository Bank is governed by the State of Texas Local Government Codes: Chapter 105 Municipal Depository Act; Chapter 176 Conflict of Interest Act; Chapter 2256 Public Funds Investment Act; and Chapter 2257 Public Funds Collateral Act. In addition to complying with these State statutory requirements, it was necessary to understand and comply with the City’s financial and purchasing policies and Investment Policy. The RFA project was conducted as follows: 1. Analyzed historical bank service usage and balance records. 2. Reviewed the minimum banking services and potential additional services. 3. Developed a list of eligible financial institutions within the City’s service area parameters: a. Amarillo National Bank b. Education Credit Union 2428 Carters Mill Road, Huddleston, VA 24104-4003 540.297.3419 Page 2 of 5 c. First United Bank d. Happy State Bank (Incumbent) e. Peoples Federal Credit Union f. Wells Fargo Bank 4. Contacted the financial institutions to confirm distribution information, describe the process, and identify the designated recipient. 5. Drafted the RFA for City review and approval. 6. Posted the notice and advertised as required. 7. Distributed RFAs to the identified and receptive financial institutions. 8. Held a non-mandatory pre-application conference that was attended by representatives of: a. Amarillo National Bank b. Happy State Bank (Incumbent) 9. No additional RFA requests were received as a result of the advertisement. 10. By the closing deadline, applications were received from: a. Amarillo National Bank (“ANB”) b. First United Bank (“FUB”) c. Happy State Bank (Incumbent) (“HSB”) The evaluation of the applications was based on, but not limited to, the following criteria, in no particular order of priority: 1. Ability to perform and provide the required and requested services, 2. References provided and quality of services, 3. Cost of services, 4. Transition cost, retention and transition offers and incentives, 5. Funds availability, 6. Interest paid on interest bearing accounts and deposits, 7. Earnings credit calculation on compensating balances, 8. Completeness of application and agreement to points in the RFA, 9. Convenience of locations, 10. Previous service relationship with the City, and 11. Financial strength and stability of the institution. Application Analysis The analysis began with an overall review of each bank’s general financial strength and ability to provide the bank services necessary to meet the City’s current and future service needs. Each of the responding banks exhibited acceptable financial strength and the ability to provide the services that the City requested. 2428 Carters Mill Road, Huddleston, VA 24104-4003 540.297.3419 Page 3 of 5 Net Income/(Cost) Each bank’s fee schedule was analyzed based on the City’s banking service needs and estimated activity levels. Where quantifiable and appropriate, the estimated service fees were adjusted for any incentives (including waived fees, supplies and check scanners). No incentives were offered. The average operating balances that the City has maintained over the last year has been approximately $3,800,000. Each bank proposed a no fee structure which highlights the competitive nature of the process. The estimated five-year financial impact of the hard interest income on the overall proposals submitted by the three banks is summarized below: Happy State Bank First United Amarillo 5 - Year Term (Incumbent) Bank National Bank Proposed Fees $0 $0 $0 Interest Earnings 47,500 66,500 66,500 Net Income/(Cost) $47,500 $66,500 $66,500 Due to the tight spread between the original proposals, each bank was invited to submit a “best and final offer.” Happy State responded with no change. ANB increased their floor interest rate from 0.30% to 0.35%, and requested that the City maintain approximately $3,000,000 at ANB while granting ANB the “right of first refusal” on other balances. FUB simply clarified that they would place no restrictions on the City’s right to invest balances at other institutions when appropriate. The interest rate offered by HSB on their regular interest bearing account is 50% of the Federal Funds Target Rate with no floor rate proposed (current rate estimated at 0.25%). It should be noted that HSB's proposal requires the City keep all of its balances at the Bank or in a local government investment pool (e.g. TexPool, LOGIC). This provision does restrict the City’s ability to manage its investable cash balances, and could have a significant impact over the five- year term of the agreement. The interest rate offered by FUB is indexed to the 13 Week T-bill Rate + 0.10% with no floor rate proposed (current rate estimated at 0.35%). This rate will vary monthly. If rates rise significantly during the five-year contract period, historical relationships suggest the 13 Week T- bill Rate + 0.10% will exceed 50% of the Fed Funds Target rate (for example, with 2.00% short term rates T-bills + 0.10% should yield over 2.00%, while 50% of the Fed Funds Target Rate would only equate to 1.00%). It should be noted that FUB did not offer security clearance and safekeeping. 2428 Carters Mill Road, Huddleston, VA 24104-4003 540.297.3419 Page 4 of 5 The interest rate offered by ANB is indexed to the 1-month T-bill Rate + 0.10% with a floor of 0.35% (current rate estimated at 0.28%; floor rate of 0.35% would apply). This rate will vary monthly. If rates rise significantly during the five-year contract period, historical relationships suggest the 1-month T-bill Rate + 0.10% will exceed 50% of the Fed Funds Target rate (for example, with 2.00% short term rates T-bills + 0.10% should yield over 2.00%, while 50% of the Fed Funds Target Rate would only equate to 1.00%). Considerations HSB has been a good business partner for over 20 years. As the incumbent, they have demonstrated the ability to perform all of the services the City requires. They have proposed a reasonable financial arrangement, with the exception of limiting outside investment to local government investment pools. Awarding the contract to HSB would also avoid the inconvenience and costs associated with a bank transition. Transition “hassle factors” and hard costs are difficult to project, but $10,000 to $20,000 could be a reasonable estimate. The modest ANB and FUB interest advantage of the main operating accounts slightly offsets the potential transition costs. However, if interest rates rise over the full five-year term, the earnings difference from HSB will widen. If that occurs, the two-year initial contract term will allow the City to re-consider its selection, but may require another full RFA for banking services. Additionally, the HSB “All-Or-None” handicap prevents the City from diversifying and enhancing the investment portfolio with non-HSB alternatives. The RFA analysis focused on the $3,800,000 historically maintained in the main operating accounts. The City also holds approximately $8,000,000 in other balances. Currently those balances utilize the HSB Insured Cash Sweep (“ICS”) option. That current yield is approximately 0.55% and subject to change with market movements. Other non-HSB options (including Money Market Accounts and Certificates of Deposit) currently range between 0.60% and 1.05%. The potential added income from non-HSB alternatives could further offset transition issues or costs. Based on our analysis and discussion with City staff, we concur with the staff recommendation that the City Commission conditionally award the primary depository bank services contract to HSB, and authorize the City Manager to negotiate and execute the agreements most advantageous to the City necessary to establishing a mutually beneficial banking relationship. We would further recommend that, should an acceptable agreement with HSB not be reached, the City Commission concurrently authorize the City Manager to negotiate the most advantageous agreement with either ANB or FUB, both of which submitted attractive proposals that will meet the needs of the City. Upon approval, the new contract will commence on September 1, 2016. Please contact E.K., Dick or me to discuss any questions or additional information needs. Thank you for this opportunity to serve the City. 2428 Carters Mill Road, Huddleston, VA 24104-4003 540.297.3419 Page 5 of 5 Sincerely, T. H. Ross Valley View Consulting, L.L.C. Attachments 2428 Carters Mill Road, Huddleston, VA 24104-4003 540.297.3419  City of Canyon, Texas Bank RFA Analysis Happy State Bank June 10, 2016 Amarillo National Bank First United Bank (Incumbent) FEE ANALYSIS OF BANK DEPOSITORY SERVICES Increased floor interest rate from 0.30% to 0.35%; Requests 80% deposits be maintained at ANB Clarified - No limits to Best & Final Offer No Change with a right of first refusal on the outside deposits. remaining 20% before being moved. Proposed Fees Monthly Fee Estimate 0 0 0 Monthly Estimated Assessment Fee 0 0 0 Monthly Estimated Safekeeping Fee 0 0 0 Fees for Two Year Term 0 0 0 Fees for Five Year Term 0 0 0 Contract Incentives Waived Fees All fees waived All fees waived All fees waived Total Fees for Two Year Term less Incentives 0 0 0 Total Fees for Five Year Term less Incentives 0 0 0 Earnings Credit Earnings Credit Rate 0.00% 0.00% 0.00% Target DDA Compensating Balance - - - Monthly Earnings Credit less Reserve - - - Earnings Credit for Two Year Term - - - Earnings Credit for Five Year Term - - - Reserve Requirement N/A N/A N/A Net Fees for Two Year Term 0 0 0 Net Fees for Five Year Term 0 0 0 Interest Income Estimate NOW Checking; 13-week FFTR x .50; 1-month T-Bill + 0.10%; Investment Option T-Bill + 0.10%, adjusted 0.50% x 0.50% = 0.25% 0.35% floor monthly Interest Rate 0.25% 0.35% 0.35% Investment Balance 3,800,000 3,800,000 3,800,000 Monthly Investment Income 792 1,108 1,108 Two Year Investment Income 19,000 26,600 26,600 Five Year Investment Income 47,500 66,500 66,500 Two Year Income/(Cost) 19,000 26,600 26,600 Five Year Income/(Cost) 47,500 66,500 66,500 6/13/2016 Submission Date Historical Bank Balance 3,800,000 91-Day T-Bill Discount Rate 0.25% Fed Funds Rate Actual 0.38% Fed Funds Rate Target 0.25 - 0.50% Local Government Investment Pool 0.36% 1  City of Canyon, Texas Bank RFA Analysis Happy State Bank June 10, 2016 Amarillo National Bank First United Bank (Incumbent) DETAIL RESPONSE ANALYSIS OF BANK DEPOSITORY SERVICES "Best Value" Criteria 1 Ability to perform and provide the required and requested services 2 References provided and quality of services 3 Cost of services 4 Transition cost, retention and transition offers and incentives 5 Funds availability 6 Interest paid on interest bearing accounts and deposits 7 Earnings credit calculation on compensating balances 8 Completeness of application and agreement to points in the RFA 9 Convenience of locations 10 Previous service relationship with the City 11 Financial strength and stability of institution Required Bank Services No - One and two day 1 On-Line Banking Services (R) Yes Yes float not available 2 Positive Pay (R) No Yes Yes Yes - through regular 3 Reverse Positive Pay (R) No Yes Positive Pay 4 ACH (R) Yes Yes Yes 5 ACH Debit Blocking (R) Yes No Yes 6 Remote Deposit Capture (R) Yes Yes Yes 7 Employee and Board Member Check Cashing (R) Yes Yes Yes 8 Returned Check Reprocessing (R) Yes Yes Yes 9 Account Analysis (R) Yes Yes Yes 10 Bank Statements (R) Yes Yes Yes 11 Payment for Services Yes Yes Yes 12 Account Settlement Yes Yes Yes 13 Research (R) Yes Yes Yes 14 Bank Errors (R) Yes Yes Yes 15 Audit Confirmations Yes Yes Yes 16 Balance Assessment Fees Waived Fees Waived Fees Waived 17 Reserve Requirement Yes - 10%/NA None Yes - 10%/NA Services That May Be Considered Misunderstood Item - response described bank 1 Consumer Bill Pay Processing No No drafting of customer accouints Collateral Requirements 1 Collateralization Yes Yes Yes 2 Collateral Amount Yes Yes Yes 3 Custody/Safekeeping Yes - TIB Yes - Frost Bank Yes - TIB 4 Collateral Substitution Yes Yes Yes 5 Collateral Report Yes Yes Yes 6 Board Resolution Yes Yes Yes Investment Activities No to Safekeeping but no 1 Direct Investment Alternative No Yes limit to placing balances with other institutions. 2 Certificates of Deposit Yes Yes Yes 3 Safekeeping/Custody Services Yes Yes No 4 Sweep/Investment Account Yes Yes No 2  City of Canyon, Texas Bank RFA Analysis Happy State Bank June 10, 2016 Amarillo National Bank First United Bank (Incumbent) Overdraft Provisions 1 Net Overdraft Defined Yes Yes Yes 2 Notification Yes Yes Yes 1 day; collective account Max days and amount not 5 days; $100,000 max; 3 Stipulations balances; 0% fixed; Prime + 2% 18% Other Stipulations 1 Regulation Notifications Yes Yes Yes 2 Incoming Wire Transfers Yes Yes Yes 3 Right to Cancel Under Federal or State Law Rulings Yes Yes Yes 4 Access to Bank Records Yes Yes Yes 5 Right to Open and Maintain Other Accounts No Yes Yes 6 Secondary Depository Bank Yes Yes Yes 7 Right to Terminate No Yes Yes 8 Terms Fixed Yes Yes Yes Greg Houlette, SVP Ross Macon, Branch Mgr Stuart Sutton, SVP 9 One Relationship Officer (806) 342-2403 (806) 655-8880 (806) 655-8000 Miscellaneous 1 Semi-Annual Meeting Yes Yes Yes 2 Formal Agreement Required Yes Yes Yes 3 Advertisement Acknowledged Acknowledged Acknowledged Acknowledged Application Submission Provided Provided Provided Fee Schedules 1 Bank Services Provided Provided Provided Response Attachments 1 Account Analysis Provided Provided Not Provided 2 Rate Basis Provided Provided Provided 3 Sample Collateral Agreement Provided Provided Provided 4 Security Measures Provided Provided Provided 5 Technology Specs Provided Provided Provided 6 Sample Safekeeping Report Provided Provided Provided 7 Securities Safekeeping Fees Provided Provided Service Not Provided 8 Sweep/Investment Account Information Provided Provided Service Not Provided 9 Summary Business Continuity Plan Provided Provided Provided 10 References Provided Provided Provided Not Provided - attached 11 Sample FIRREA Compliant Document Provided Frost Bank pledge Provided agreement instead Other Considerations 1 Monthly Service Charge Waiver All fees waived All fees waived All fees waived 2 Bankrate.com Rating 4-Star 5-Star 4-Star 3 Supplies at NC Not Addressed Initial Order Life of Contract 4 Safekeeping Services Yes Yes No 3  RESOLUTION NO. 12-2016 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON AWARDING A PRIMARY DEPOSITORY BANK RELATIONSHIP AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE A CONTRACT AND EXECUTE ANY AND ALL AGREEMENTS NECESSARY TO IMPLEMENT THE RELATIONSHIP CONTINGENT UPON THE SUCCESSFUL NEGOTIATION OF SAID CONTRACT; WHEREAS, Chapter 105 of the Local Government Code requires that at least every five (5) years the City solicit for applications from qualified financial institutions to serve as the depository bank for City funds; WHEREAS, the City engaged the professional services of Valley View Consulting, L.L.C., to assist with the solicitation and evaluation of all applications that were received; WHEREAS, three (3) applications were received, evaluated and found to be acceptable; WHEREAS, Happy State Bank as the incumbent depository bank, has demonstrated the ability to provide all of the services that the City requires, and proposed a reasonable service and financial arrangement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: That the City Manager is hereby authorized to negotiate the final contract with Happy State Bank to provide primary bank depository services under the most favorable terms and conditions for the City and to execute all necessary agreements to implement the relationship; and BE IT FURTHER RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: That should a mutually agreeable contract with Happy State Bank not be negotiable, the City Manager is hereby authorized to negotiate with either of the other banks to provide primary depository bank services under the most favorable terms and conditions for the City and to execute all necessary agreements to implement the relationship. PASSED AND APPROVED this 25th day of July 2016. __________________________________________ QUINN J ALEXANDER, MAYOR ATTEST: __________________________________ Gretchen Mercer, City Clerk REGARDING ITEM 10 AGENDA To: Randy Criswell, City Manager From: Jon Behrens, Assistant to the City Manager Date: July 14, 2016 Re: City Commission Workshop Goals I have compiled the information from our June 30, Commission work session. I believe that all of the changes to the goal statements that the Commissioners suggested have been made. At this time I would like to have the Commission confirm that I have included all of the goals that were selected for FY2017. Five additional goals have been added to this document. These additional goals were developed by the staff and represent major tasks that the staff will be working on in FY2017. If it is determined that these goal statements are acceptable, the staff will then begin developing an Action Plan for each goal. These Action Plans will be simple outlines of the steps the staff will take to meet each goal and completion dates for any major milestones. If I can answer any questions related to this memo or the Commission Goals document, let me know. City of Canyon Canyon City Commission Goals FY 2017 Developed 6/30/16 7/14/16 Revision 1. Community Character and Environment Goal: The city strives to maintain the character and community environment of Canyon, while growing, through well‐ planned and sustainable growth strategies. Objectives:  Preserve and develop neighborhoods that are long‐term, viable, safe and appealing.  Maintain and improve the aesthetics and sustainability of the City.  Protect and preserve the natural areas of the City to include parks, floodplains and open space.  Support high‐quality, well‐planned and sustainable growth. FY2017 Goals:  The city will initiate the analysis phase of determining options for addressing brick streets, and prepare a report detailing those options. Action Plan:  The city will partner with WTAMU, businesses, and homeowners in assessing and addressing street parking near the campus area. Action Plan: 2. High Value Government Goal: City officials strive to govern and operate the city in a transparent, efficient, accountable and responsive manner on behalf of the citizens. Objectives:  Maintain and enhance public confidence, satisfaction and trust in City Government.  Ensure policies and procedures are consistent with the vision, intent and goals of the strategic plan, citizens, City Commission, and City leadership.  Enhance efforts to communicate with citizens and provide opportunities for citizen participation and input.  Continue and enhance sound financial and business practices. FY2017 Goals:  The city will begin the creation of a Development Policy Manual that will address issues pertaining to development in Canyon, including but not limited to specific new policies such as a Parks Policy, Impact Fee Policy, Mailbox Location Policy, and Sidewalk Policy, all combined with existing policies and ordinances, and incorporated into one document. Action Plan: 3. Economic Vitality Goal: The city strives to develop a diverse economy which will generate high‐quality, stable jobs that strengthen the sales and property tax base and contribute to a high quality of life. Objectives:  Develop and maintain the facilities and infrastructure needed to make the City attractive to businesses.  Foster business growth in the city. 4. City Services and Infrastructure Goal: City services and infrastructure are efficiently, effectively and strategically delivered to enable economic growth and development and to maintain citizens’ health, safety and general welfare. Objectives:  Ensure the current and future water supply is adequate, affordable and safe.  Continue to provide high level of public safety and security.  Maintain and expand City services in a cost effective and efficient manner to meet the expectations of citizens. FY2017 Goals:  The city shall seek citizen’s input related to current and future senior citizens programming and facility’s needs. Action Plan:  The city will develop an ordinance to address motor vehicles and other property parked in front and/or side yards. Action Plan:  The City will evaluate options for recycling, and provide detailed report on existing recycling efforts and possible future efforts. Action Plan: Additional Goals from City Staff:  Implementation of water meter program completed. (Based on Commission approval)  Continued discussion of options to meet future city departmental office and facility space needs.  Opening of new aquatic facility.  The city will move forward with plans to engage a firm to develop a new Comprehensive Plan.  Completion of Zoning and Subdivision Ordinance updates. REGARDING ITEM 11 AGENDA To: Mayor and City Commission From: Randy Criswell, City Manager Date: July 25, 2016 Re: Budget Work Session. At the last meeting, I made the formal budget presentation. To summarize the highlights of the budget as it stands:  Total budget is $17.7 million  Tax rate to remain at $0.39083  Proposed increase of $200,000 in sales tax revenue  Proposed increase of 2.7% in Solid Waste Fees  Proposed increase of 3% in Water Rates  Proposed increase of $5 in daily Green Fee Rate  3% Performance-Based salary increase  3 new positions created o One Police Officer o One Parks Employee o One Wellfield Operator  $1.15 million in Capital Improvements  $73,000 in contingencies I have included the spreadsheet that was in the presentation showing all the capital improvements and equipment purchases as well. City of Canyon  2016 ‐ 2017 Proposed Capital Expenditures Current Capital Equip Pool Water Future Budget Fund Bonds Bonds needs POLICE Two (2) 2017 Ford Explorer Police Interceptors $77,100 FIRE Pickup to replace 1997 model pickup $30,000 PARKS Canyon East lighting (3 year project) $65,000 $130,000 New Pickup $30,000 Recreational Equipment $25,000 New tractor $45,000 SWIMMING POOL Tables and Umbrellas $35,000 Concession Equipment $3,500 GOLF COURSE Parking Lot overlay and repair $33,000 Architect plans for expansion/renovation of club house/cart barn $10,000 Overflow for spillway at hole #2 $60,000 Golf Cart Capital $51,100 STREET DEPARTMENT Canyon East Drainage Channel $20,000 Brick street improvements cost unknown LIBRARY New Carpet $15,000 WATER PRODUCTION New Well at Brown Road Property $450,000 New SCADA system $50,000 New office/shop $300,000 Two New Pickups $60,000 WATER DISTRIBUTION Water Main Replacement $100,000 EDA matching grant $125,000 WASTEWATER COLLECTION Pipeline camera $55,000 Sewer mains $600,000 TOTAL $1,149,100 $242,100 $38,500 $500,000 $440,000 REGARDING ITEM 12 AGENDA To: Randy Criswell, City Manager From: Chris Sharp, Assistant City Manager Date: July 18, 2016 Re: Consider and Take Appropriate Action on Taking Record Vote on Proposed Tax Rate, and Adopt Budget Calendar Setting Dates for Public Hearing Truth-in-Taxation requirements call for a vote to place a proposal to adopt a tax rate that exceeds the lower of the effective rate or the rollback rate, whichever is lower, on the agenda of a future meeting as an action item. The Commission must take a recorded vote on the proposed tax rate. The City’s current tax rate is $.39083 per $100 valuation. The 2016 effective and rollback tax rates are not known at this time. We are awaiting final numbers from the County and hope to have them by Monday’s meeting. The current proposed rate of $.39083 per $100 valuation exceeds the lower of these two rates by approximately 5%, requiring a record vote. With this agenda item, the Commission must vote on the proposed tax rate and schedule two public hearings on the proposed rate. The proposed tax rate set by this vote cannot be increased. It becomes that maximum tax rate that can be adopted. It is staff’s recommendation that a recorded vote be taken on the proposed tax rate and for the Commission to adopt the budget calendar setting dates for two public hearings. Motion should be stated in the following manner; Motion to adopt $0.39083 as the maximum proposed tax rate. Mayor and each Commissioner will verbally vote yay or nay to be recorded. • Motion to adopt the budget calendar setting the dates for two public hearings. City of Canyon  2016 Planning Calendar for City of Canyon Date Activity April ‐ May Mailing of notices of appraised value by chief appraiser. The chief appraiser prepares and certifies to the tax assessor for each county, municipality, April 30 and school district participating in the appraisal distrcit and estimate of the taxable value. May 15 Deadline for submitting appraisal records to ARB July 20 Deadline for ARB to apprice appraisal records July 25 Deadline for chief appraiser to certify rolls to taxing units Certification of anticipated collection rate by collector Calculation of effective and rollback tax rates July 22 72‐hour notice for meeting (Open Meetings Notice) July 25 Meeting of governing body to discuss tax rate Publish Notice of 2016 Tax Year Proposed Property Tax Rate for City of Canyon. Use the ad that will correspond to the proposed tax rate; if the proposed rate is at or below the effective tax rate, then use the shorter ad. Use the longer ad if the proposed rate will exceed the effective tax rate. This ad must be published by September 1st and 7 days before Aug 07 public hearing. It needs to be one quarter page or larger, the headline must be 24‐point or larger, and it must not be published in the legal section. You must also post the notice on your website no later than September 1st and keep it posted until you have adopted. Aug 12 72‐hour notice for meeting (Open Meetings Notice) Aug 15 Public hearing (should be 7 days after notice is published in the newspaper) Aug 19 72‐hour notice for meeting (Open Meetings Notice) Second public hearing (should be no earlier than 3 days after 1st hearing and no later than Aug 22 14 days) Sept 9 72‐hour notice for meeting at which governing body will adopt (Open Meetings Notice) Sept 12 Meeting to adopt tax rate. Meeting is 3 to 14 days after second public hearing.