City of Canyon Commission Meetings

AGENDA NOTICE OF MEETING Notice is hereby given that on the 18th day of November 2019, the governing body of the City of Canyon will meet at 3:30 p.m. for a Work Session in the City Manager Conference Room at City Hall, 301 16th Street, Canyon, Texas. The Official Meeting of the governing body of the City of Canyon will be called to order at 4:30 p.m., in the Commission Chambers of City Hall at 301 16th Street in the City of Canyon to discuss the following agenda items: Work Session on AMR/Water Meter Replacement Proposal and Bond Rating. 3:30 to 4:30 pm 1. Call to Order at 4:30 p.m. 2. Invocation. 3. Pledge of Allegiance. 4. Approval of the Minutes of the Meeting of November 4, 2019. 5. Public Comment – Comments from Interested Citizens. 6. Consider and Take Appropriate Action on Resolution No. 22-2019, A Resolution Regarding a Financing Agreement for the Purpose of Procuring a “Water Meter Project”. 7. Executive Session Pursuant to §551.087 for Economic Development Negotiations, and §551.074 Board Appointments (Board of City Development, Canyon Housing Authority, Construction Advisory and Appeals Board, Canyon Area Library Board, Planning and Zoning Commission, Parks, Open Space and Recreation Advisory Committee, Zoning Board of Adjustment, and Main Street Advisory Board). 8. Consider and Take Appropriate Action on Items Discussed in Executive Session. 9. Consider and Take Appropriate Action on Meeting Dates for the Months of December, January and February 2019 and 2020. 10. Adjourn. Joseph Price Joseph Price, 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 15th day of November 2019. Gretchen Mercer, City Clerk City of Canyon City Commission Meeting November 4, 2019 The City Commission of the City of Canyon at 4:30 pm in the City Commission Chambers of the Civic Complex. Mayor Gary Hinders presided over the meeting with the following Commissioners in attendance, Mayor Pro-Tem Cody Jones, Roger Remlinger, Paul R. Lyons and Randy Ray. Also present were the following City Staff: City Manager Joe Price, Assistant City Manager Jon Behrens, City Secretary Gretchen Mercer, Director of Finance Chris Sharp, Librarian Janice Doan, Planning and Development Director Danny Cornelius, Business and Community Development Director Evelyn Ecker, Utility Department Supervisor Eric Whitten, Fire Chief Mike Webb, Economic Development Board President Don Lee, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Hinders called the meeting to order at 4:30 p.m. Item 2. Invocation. Commissioner Ray gave the invocation. Item 3. Pledge of Allegiance. The Pledge of Allegiance was led by Commissioner Lyons. Item 4. Approval of Minutes of the City of Canyon Commission Meeting of October 21, 2019. Mayor Pro-Tem Jones moved, duly seconded by Commissioner Remlinger to approve the minutes of October 21, 2019 as presented. Motion carried unanimously. Item 5. Public Comment – Comments From Interested Citizens. Nikki West – 1904 Helium Road / Owner of Pampered Pooch. Ms. West expressed the need for assistance in moving her business from its current location in the 1600 block of 4th Avenue due to the sale of the property to the Canyon Economic Development Corporation. Ms. West stated she did not currently have a lease and the CEDC had offered advertising but she needed more financial help. Don Lee – 18 Fairway, / President of the Canyon Economic Development Corporation. Mr. Lee stated the CEDC has previously visited with Nikki West and said since she has a month to month lease, the lease would be honored as the other properties leases were. Mr. Lee said the CEDC could only offer advertising. Item 6. Consider and Take Appropriate Action on Second and Final Reading on Resolution No. 16-2019, A Resolution of the City of Canyon Approving Real Estate Sale and Purchase Contract Between Charles Eugene Cooper dba Cooper Investment and Canyon Economic Development Corporation Relating to the Property Located at 1601 – 1607 4th Avenue, Canyon, Texas. City Commission Meeting November 4, 2019 Page 2 of 4 Business and Community Development Director Evelyn Ecker presented Resolution No. 16-2019 for the final reading and adoption. Ms. Ecker stated the Canyon Economic Development Corporation Board held a public hearing September 12, 2019 with no opposition and unanimous support from the CEDC. Ms. Ecker stated the closing date for the sale was set for November 15, 2019. After discussion, Commissioner Lyons moved, duly seconded by Commissioner Remlinger to table Resolution No. 16-2019. City Attorney Chuck Hester stated a closing date had been set for November 15, 2019. Mayor Hinders asked why consideration was being suggested to table the adoption of Resolution No. 16- 2019. Commissioner Remlinger said he would like to get more information from Ms. West on her situation. Mayor Hinders stated that was a separate issue from the purchase of the property. Mayor Pro-Tem Jones asked if terms of the sale could be re-negotiated. Mr. Hester said the contract was drawn up with the understanding there was no opposition from the Commission as discussed in previous meetings and requested that the Commission not put the city in breach of contract. Mr. Hester stated the seller could sue the Canyon Economic Development Corporation if that were to happen. Commissioner Remlinger stated he had no issue with the purchase of the property. Mayor Hinders asked for a vote on the motion as stated. Motion failed 1-4 with Commissioner Lyons voting for. A verbal exchange occurred between Commissioner Lyons and CEDC President Don Lee. After discussion, Commissioner Remlinger moved, duly seconded by Mayor Pro-Tem Jones to adopt Resolution No. 16-2019 as presented. Motion carried 4-1 with Commissioner Lyons voting against. RESOLUTION NO. 16-2019 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING REAL ESTATE SALE AND PURCHASE CONTRACT BETWEEN CHARLES EUGENE COOPER dba COOPER INVESTMENTS AND CANYON ECONOMIC DEVELOPMENT CORPORATION RELATING TO THE PROPERTY LOCATED AT 1601-1607 4TH AVENUE, CANYON, TEXAS. Item 7. Consider and Take Appropriate Action on Resolution No. 18-2019, Atmos Rate Change Negotiations. Director of Finance Chris Sharp presented Resolution No. 18-2019 for consideration. After discussion, Mayor Pro-Tem Jones moved, duly seconded by Commissioner Remlinger to approve Resolution No. 18-2019 as presented. Motion carried unanimously. RESOLUTION NO. 18-2019 A RESOLUTION OF THE CITY OF CANYON, TEXAS, APPROVING COOPERATION WITH CITIES SERVED BY ATMOS WEST TEXAS TO REVIEW ATMOS ENERGY CORP., WEST TEXAS DIVISION’S (“ATMOS WEST TEXAS”) REQUESTED RATE City Commission Meeting November 4, 2019 Page 3 of 4 CHANGE; HIRING LEGAL AND CONSULTING SERVICES TO NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY LITIGATION AND APPEALS; REQUIRING REIMBURSEMENT OF CITIES’ RATE CASE EXPENSES; AUTHORIZING INTERVENTION IN ANY RATEMAKING PROCEEDING AT THE RAILROAD COMMISSION THAT RELATES TO THE COMPANY’S FILING; REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY AND CITIES’ LEGAL COUNSEL. Item 8. Consider and Take Appropriate Action on Resolution No. 19-2019, Ballot for Potter- Randall Appraisal District Board of Directors. City Manager Joe Price presented Resolution No. 19-2019 for consideration. After discussion, Commissioner Ray moved, duly seconded by Mayor Pro-Tem Jones to split the votes between James Barrington (29 votes), Tim Gilliland (28 votes) and Joe Shehan (28 votes). Motion carried unanimously. RESOLUTION NO. 19-2019 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. Item 9. Consider and Take Appropriate Action on Sale of Firefighting Equipment to the City of Claude, Fire Chief Mike Webb presented an Interlocal Agreement relating to the sale of a firetruck and related equipment to the City of Claude. Chief Webb stated the City of Claude was in need of the brush truck and the City of Canyon Fire Department had purchased new equipment and no longer needed the truck. Chief Webb stated the City of Claude would like to purchase the brush truck for $10,500. After discussion, Mayor Pro-Tem Jones moved, duly seconded by Commissioner Remlinger to approve the Interlocal Agreement with the City of Claude for the sale of the described brush truck to the City of Claude for the agreed amount of $10,500. Motion carried unanimously. Item 10. Adjourn There being no further business, Mayor Pro-Tem Jones moved this meeting be adjourned at 4:55 pm. ______________________________ Gary Hinders, Mayor ATTEST: REGARDING ITEM 6 AGENDA To: Joe Price, City Manager From: Dan Reese, Public Works Director Date: November 18, 2019 Re: AMR System/Water Meter Replacement Proposal Almost four years ago, we began discussing upgrading our water meter reading system to the latest technology. In fact, this is something that’s been discussed off and on for at least the last 15 years. It’s been presented to previous Commissions more than once. After the most recent presentation, there was significant interest expressed, so as per your desire, the item is up for discussion. Three years ago we put together a very rough estimate of cost, just to gauge the City Commission’s interest. That estimate was low because it was simply a rough “30,000 foot” view, so to speak. Time went by and the estimate was more closely computed, then as more time passed, it went even higher. Therefore, we now have more accurate numbers based on all considerations and proposed scope of work. Pricing has been updated within the last two weeks. As a little history refresher, we’ve been using automated technology since 1991 when it first became available. That technology began with very simple systems that enabled us to read meters with a hard-wired connector and a touch pad from the meters in Hunsley Hills where there were no alleys. The technology evolved into reading via a radio signal, and the radio-read technology has continued to evolve into the current state-of-the-art systems that send a signal every few minutes via radio to collectors, which then transmit those meter readings directly to City Hall where they are automatically uploaded into our system. THAT is the system we’re talking about. Currently, we are able to read about 2,000 meters via radio, and the remaining 3,000 meters are still manually read. By “manually read”, I mean that a man literally walks down each alley, removes the meter lid, lays on the ground, reaches down into the meter can filled with bugs, spiders, and sometimes snakes, wipes dust off the meter dial with his hand, then records the reading by manually entering it into a handheld computer. This is incredibly antiquated. It’s only slightly above the original technology when we used to do the same thing and writing the reading down in a book. By the way, every new meter installed today has radio-read capability. Canyon has always been a city with a philosophy of providing the best service we can provide. Manually entering readings into a handheld leaves room for error, as readings can be incorrectly entered, numbers can be transposed or misread, and customers can be incorrectly billed. An incorrect reading requires, at a minimum, sending an employee out to manually re-check the reading, return it to the Business City of Canyon  AGENDA Office, and then the Business Office has to take action, accordingly. This is an extreme waste of time and is totally unnecessary when there is technology available to eliminate mistakes. Our goal is customer service, and accuracy and efficiency are two critical things we’re missing in that regard. The way to address these deficiencies is to upgrade to a full-scale Fixed Network System, replace any old meters that are inaccurate or incompatible, upgrade meters that are compatible, and bring Canyon into the use of the state-of-the-art meter reading technology. What are the expected benefits? 1. Improved Customer Service 2. ACCURACY. We terminate any employee who is ever caught estimating readings. Our commitment to our customers is to read their meters and bill them accurately for their water usage. This eliminates any human error. Older meters are less accurate, and always read LESS water than actually passes through. New meters will accurately meter the usage, so customers will be billed the correct amount of water they’ve used, every time. 3. Huge increase in efficiency and productivity a. No more manual rereads will be necessary, saving dozens of hours for one man each month, plus eliminating dozens of “tickets” that have to be followed up with and then completed in the system. This involves dozens of hours for at least two employees. b. No more manual readings. This will free up an additional amount of manpower equivalent to a full-time employee every year just in itself. c. Readings are automatically entered into the billing system instead of a human/computer combination interface. 4. Customer Web Portal where customers can monitor their own usage as well as other types of accessibility. They can actually see how many gallons they use every time they irrigate their yard, or if water was used while they were out of town. The system is very flexible as to how often the data is collected and presented and is very compatible with both the meter management software (Neptune) and the billing software (Incode). 5. Leak Detection capability far beyond simple visual detection, both from a customer and City perspective. 6. Operator Safety. We pay workers comp claims every summer for spider and bug bites, and other various types of injuries as a result of bending over, moving a meter lid that weighs 30 pounds, lying on your stomach in the dirt and weeds, reaching into the meter can filled with all kinds of undesirable bugs and critters, and then standing back up. This is repeated hundreds of times a day for three days every month. The likelihood of injury is extremely high. 7. Better reporting of “unaccounted water usage”. The TCEQ requires that we generate reports of “unaccounted” water usage, that is, water that is pumped into the system but not billed for. How is this done? City of Canyon  AGENDA a. Meters will more accurately record actual water usage, so the amount billed will more closely match the amount pumped or purchased. b. The software has built in algorithms that help monitor water usage throughout the system. Specific areas or “zones” within the system can be created and monitored to track daily usage versus water produced or normal usage trends. This can also help to detect leaks within the system and help us to reduce the unaccounted for water or “water loss”. Where do we go from here? Since the last discussion, we have worked hard to put together the best estimate that we can based on a more in-depth look at the system, the number of meters to replace, and using our current facilities to locate the collectors (namely our existing tornado siren poles and elevated tanks). Neptune has re-run the radio propagation analysis based on our facilities locations and heights and according to the most recent analysis, we can get good coverage with 5 collectors (located on two siren poles, the two tanks and one new monopole at Canyon East). Since the last discussion in January (2019) of this year, we have decided to put the new registers/radios that are called the new “ProCoder” on all the older versions of the Neptune radios in the city. Neptune has released a new, better performing radio / register that is higher powered. Thus, this will increase the previously mentioned cost estimates. Rather than have a different mix of equipment, we’ve decided to replace all of the registers (on new and existing meters) to the “latest and greatest”. This means replacing all but about 50 registers on our existing meters. The meters that are to be replaced will have this new “ProCoder” register (with the radio built-in). The last major piece to the design change was that we realized that some of the first automated meters are approaching 20 years old, or older. Upon Neptune’s recommendation, and further study, we didn’t see the reasoning in changing the dials on these aging meters now, and then have to come back later, possibly soon, and replace the meters when they begin to wear out. Some of these meters, mainly in Hunsley Hills need to be replaced. All meters in the system more than 10 years old will be replaced. A thorough study of the existing meters and system has identified their locations. Both of these facts; about the new registers (being consistent with their replacement) and the replacement of some of the Hunsley Hills meters has also added to the cost of the project. In addition, we are moving from a 5/8-inch meter to a 3/4-inch meter. The existing, typical, individual meter services are designed to serve a 3/4-inch meter. Therefore, Staff desires to switch completely to the larger meter size and increase the level of service to our customers (with the larger size, customers are able to get more water than with the 5/8-inch meter). Updated cost estimates have been obtained from Core & Main, our Neptune vendor that will supply this project. We feel as though that this is the final and best estimate City of Canyon  AGENDA that we can present. The estimate that we have for the entire system upgrade is approximately $ 1,900,000, including the customer web portal. The revised cost estimate looks like this: $ 1,867,997 Meters, Registers, Collectors, Installation $ 13,093 Neptune Web Hosting (meter software) $ 28,191 Customer Web Portal TOTAL PROJECT $ 1,909,282 Also, there will be annual costs / subscriptions for maintenance of the collectors, online data hosting (Neptune meter management / networking software) and the customer web portal. These annual expenses would add up to approximately $25,300. REMINDER: Increased cost from previous estimate are these items: A) Replacing all 5/8-inch meters with 3/4-inch meters (eliminate 5/8-inch meters from the system). About 2700 meters. B) New registers/radios (ProCoder) installed on existing radio-read meters in the system, not scheduled for replacement, to upgrade to the latest technology. About 800 registers. STAFF RECOMMENDATION: Project: The Public Works Department recommends that the City Commission accept this current proposal and acts to proceed with the fixed network and meter replacement project with a not to exceed price of $2,000,000. Financing: City Staff recommends that the City Commission authorize using $500,000 from the current fund balance (reserves) and authorization to finance $1,500,000 through Government Capital for a 10-year fixed rate of 3.094% with the intent to raise water base rates by $1.50 in FY2021 (Oct. 2020) and by $1.50 in FY2022 (Oct 2021). RECOMMENDED MOTION: “I move that Resolution 22-2019, making a financing agreement of $1,500,000 with Government Capital for the purpose of procuring a water meter project and the authorization of an expenditure of $500,000 from available Fund Balance to be put towards the Automated Meter Reader System Capital Improvement Project.” City of Canyon  AMI Pricing City of Canyon 05/30/2019 11/13/19 DER Item Description Unit Quantity Unit Price Extension Meter / Collector Hardware 1 Neptune R900 Gateway EA 5 $ 6,800.00 $ 34,000.00 2 R900 Gateway Antenna EA 5 $ 350.00 $ 1,750.00 3 Gateway Install EA 5 $ 20,000.00 $ 100,000.00 4 Gateway UPS EA 5 $ 1,900.00 $ 9,500.00 5 Monopole EA 1 $ 15,000.00 $ 15,000.00 Site Inspection EA 5 $ 600.00 6 Monopole Install EA 1 $ 35,000.00 $ 35,000.00 7 Coax / Connectors, etc. LF 500 $ 9.00 $ 4,500.00 collectors / install 8 Electrical Service to Monopole LS 1 $ 15,000.00 $ 15,000.00 $ 214,750.00 9 T10 Meter - 5/8" X 3/4" - R900i EA 0 $ - $ - 10 T10 Meter - 3/4" - R900i EA 2825 $ 243.00 $ 686,475.00 11 T10 Meter - 1" - R900i EA 1080 $ 288.00 $ 311,040.00 12 T10 Meter - 1-1/2" - R900i EA 75 $ 530.00 $ 39,750.00 13 T10 Meter - 2" - R900i EA 65 $ 650.00 $ 42,250.00 14 TruFlo Meter - 2" (compound) - R900i EA 2 $ 1,295.00 $ 2,590.00 15 TruFlo - 3" (compound) - R900i EA 6 $ 2,100.00 $ 12,600.00 16 TruFlo - 4" (compound) - R900i EA 12 $ 2,700.00 $ 32,400.00 17 5/8", 3/4" & 1" meter install EA 4170 $ 65.00 $ 271,050.00 18 1-1/2" meter install EA 75 $ 350.00 $ 26,250.00 19 2" meter install EA 65 $ 350.00 $ 22,750.00 20 3" meter install EA 6 $ 450.00 $ 2,700.00 21 4" meter install EA 12 $ 600.00 $ 7,200.00 meters / install 22 Drill Meter Lids for Antenna EA 2909 $ 7.50 $ 21,817.50 $ 1,653,247.50 23 ProCoder register replacement** EA 775 $ 225.00 $ 174,375.00 ** Includes Register & Install Total Meter / Collector Hardware $ 1,867,997.50 Neptune Web Based Hosting - Data Collection / Management Software 24 One time setup fee 1 N/C N/C Hosting Existing customer - $7,000.00 Cost Waived On Site Training EA 1 $ 2,500.00 $ 2,500.00 25 Full Hosting per connection per year** EA 4950 $ 2.14 $ 10,593.00 $ 13,093.00 *** this is the least it will be as # of connections increase and unit price to surely increase over time **First Year 30% Discount / 2nd year 15% yr 2 $ 2.46 $ 12,177.00 yr 3+ $ 2.78 $ 13,761.00 26 Gateway / Collector Maintenance EA 5 $ 880.00 $ 4,400.00 $ 3,805.00 5 yr. Bundle available at $3,805.00 $ 3,805.00 Total Gateway & Web Hosting Annual Maintenance $ 14,398.00 Customer Web Portal (via third party) 27 Initial setup / implementation 1 $ 7,500.00 $ 7,500.00 Training - optional but highly recommended 1 $ 5,000.00 $ 5,000.00 Annual Subscription* 4950 $ 2.07 $ 10,246.50 3 yr. Subscription with 2yr. Extention option * 3% per year increase after first year. yr 3 $ 2.19 $ 10,840.50 yr 5 $ 2.32 $ 11,484.00 Optional - Portal Welcome Letter per bundle 3 1/3 $ 1,650.00 $ 5,445.00 Total Web Portal First Year $ 22,746.50 Web Portal Annual $ 11,484.00 TOTAL PROJECT (first year) Meter / Register Replacement $ 1,653,247.50 Collector Construction $ 214,750.00 Neptune Hosting (Cloud Based) $ 13,093.00 Customer Web Portal $ 28,191.50 PROJECT TOTAL (first year) $ 1,909,282.00 TOTAL ANNUAL FEES (after first year) $ 25,245.00 November 1, 2019 Mr. Chris Sharp Canyon City Hall (806) 655-5003 csharp@canyontx.com Dear Mr. Sharp, Thank you for the opportunity to present proposed financing for the City of Canyon. I am submitting for your review the following proposed structure: ISSUER: City of Canyon, Texas FINANCING STRUCTURE: Public Property Finance Contract issued under Local Government Code Section 271.005 PROJECT COST: $ 1,500,000 TERM: 5 Annual Payments 10 Annual Payments 15 Annual Payments INTEREST RATE: 2.847% Fixed 3.094% Fixed 3.479% Fixed PAYMENT AMOUNT: $ 325,951.91 $ 176,601.98 $ 129,970.31 PAYMENTS BEGINNING: One year from signing, and annually thereafter Financing for these projects would be simple, fast and easy since:  We have an existing relationship with you and have your financial statements on file, expediting the process. Please keep in mind we may also need current year statements.  We can provide familiar documentation for your legal counsel. The above proposal is subject to audit analysis, assumes bank qualification and mutually acceptable documentation. The terms outlined herein are subject to change and rates are valid for fourteen (14) days from the date of this proposal. If funding does not occur within this time period, rates will be indexed to markets at such time. Additionally, Government Capital is registered with Texas Ethics Commission to be HB 1295 compliant. Our finance programs are flexible and my goal is customer delight. If you have any questions regarding other payment terms, frequencies or conditions, please do not hesitate to call. With Best Regards, Drew Drew Whitington Client Services Main: 817-421-5400 The transaction described herein is an arm’s length, commercial transaction between you and Government Capital Corporation (“GCC”), in which GCC: (i) is acting solely for its own financial and other interests that may differ from yours; (ii) is not acting as your municipal advisor or financial advisor, and has no fiduciary duty to you with respect to this transaction; and (iii) is not recommending that you take an action with respect to this transaction. PROJECT TOTAL (first year) $ 1,909,282.00 Payment from Fund Balance (Reserves) $ 500,000.00 GOV Cap Financing $1,500,000 $ 1,409,282.00 Date Water Accounts Base Rate New Rate 5094 Meters Base Rate Increase Year 1 (2020) 5094 $ 28.85 $ 30.35 (12 months) $ 1.50 $ 91,692.00 Year 2 (2021) 5094 $ 30.35 $ 31.85 (12 months) $ 1.50 $ 183,384.00 Year 3 (2022) 5094 $ 31.85 $ - (12 months) $ - $ 183,384.00 Year 4 (2023) 5094 $ 31.85 $ - (12 months) $ - $ 183,384.00 Year 5 (2024) 5094 $ 31.85 $ - (12 months) $ - $ 183,384.00 Year 6 (2025) 5094 $ 31.85 $ - (12 months) $ - $ 183,384.00 Year 7 (2026) 5094 $ 31.85 $ - (12 months) $ - $ 183,384.00 Year 8 (2027) 5094 $ 31.85 $ - (12 months) $ - $ 183,384.00 Year 9 (2028) 5094 $ 31.85 $ - (12 months) $ - $ 183,384.00 Year 10 (2029) 5094 $ 31.85 $ - (12 months) $ - $ 183,384.00 TOTAL $ 1,742,148.00 City of Canyon Customer Information Current Base Rate (Water Base) (Water Volume) (Solid Waste/Sewer) YEAR Base Rate AMT New Base AMT Based on 7k AVG AVG Bill AMT New Bill AVG TOTAL 2020 $ 28.85 $ 30.35 $ 28.80 $ 40.00 $ 99.15 2021 $ 30.35 $ 31.85 $ 28.80 $ 40.00 $ 100.65 2022 $ 31.85 $ - $ 28.80 $ 40.00 $ 100.65 2023 $ 31.85 $ - $ 28.80 $ 40.00 $ 100.65 2024 $ 31.85 $ - $ 28.80 $ 40.00 $ 100.65 2025 $ 31.85 $ - $ 28.80 $ 40.00 $ 100.65 2026 $ 31.85 $ - $ 28.80 $ 40.00 $ 100.65 2027 $ 31.85 $ - $ 28.80 $ 40.00 $ 100.65 2028 $ 31.85 $ - $ 28.80 $ 40.00 $ 100.65 2029 $ 31.85 $ - $ 28.80 $ 40.00 $ 100.65  Current Water Rates Base + 2,000 $28.85 minimum gallons AVG Consumption AVG Water Bill $4.80 per 2,001–8,000 gallons thousand 7,000 gallons $58.36 8,001–20,000 $6.27 per gallons thousand 20,001–35,000 $6.44 per gallons thousand 35,001–50,000 $6.60 per gallons thousand $7.03 per Over 50,000 gallons thousand GOV CAP AMORTIZATION SCHEDULE VALUES LOAN SUMMARY Loan amount $1,500,000.00 Scheduled payment $176,690.36 Annual interest rate 3.094% Scheduled number of payments 10 Loan period in years 10 Actual number of payments 1 Number of payments per year 1 Total early payments $0.00 Start date of loan 11/18/2020 Total interest $266,903.62 LENDER NAME Government Capital PMT BEGINNING SCHEDULE EXTRA TOTAL ENDING CUMULATIVE PAYMENT DATE PRINCIPAL INTEREST NO BALANCE D PAYMENT PAYMENT PAYMENT BALANCE INTEREST 1 11/18/2020 $1,500,000.00 $176,690.36 $0.00 $176,690.36 $130,280.36 $46,410.00 $1,369,719.64 $46,410.00 2 11/18/2021 $1,369,719.64 $176,690.36 $0.00 $176,690.36 $134,311.24 $42,379.13 $1,235,408.40 $88,789.13 3 11/18/2022 $1,235,408.40 $176,690.36 $0.00 $176,690.36 $138,466.83 $38,223.54 $1,096,941.58 $127,012.66 4 11/18/2023 $1,096,941.58 $176,690.36 $0.00 $176,690.36 $142,750.99 $33,939.37 $954,190.59 $160,952.03 5 11/18/2024 $954,190.59 $176,690.36 $0.00 $176,690.36 $147,167.71 $29,522.66 $807,022.88 $190,474.69 6 11/18/2025 $807,022.88 $176,690.36 $0.00 $176,690.36 $151,721.07 $24,969.29 $655,301.81 $215,443.98 7 11/18/2026 $655,301.81 $176,690.36 $0.00 $176,690.36 $156,415.32 $20,275.04 $498,886.48 $235,719.02 8 11/18/2027 $498,886.48 $176,690.36 $0.00 $176,690.36 $161,254.81 $15,435.55 $337,631.67 $251,154.56 9 11/18/2028 $337,631.67 $176,690.36 $0.00 $176,690.36 $166,244.04 $10,446.32 $171,387.63 $261,600.89 10 11/18/2029 $171,387.63 $176,690.36 $0.00 $171,387.63 $166,084.90 $5,302.73 $0.00 $266,903.62 November 1, 2019 Mr. Chris Sharp Canyon City Hall (806) 655-5003 csharp@canyontx.com Dear Mr. Sharp, Thank you for the opportunity to present proposed financing for the City of Canyon. I am submitting for your review the following proposed structure: ISSUER: City of Canyon, Texas FINANCING STRUCTURE: Public Property Finance Contract issued under Local Government Code Section 271.005 PROJECT COST: $ 2,000,000 TERM: 5 Annual Payments 10 Annual Payments 15 Annual Payments INTEREST RATE: 2.847% Fixed 3.094% Fixed 3.479% Fixed PAYMENT AMOUNT: $ 434,602.55 $ 235,469.31 $ 173,293.74 PAYMENTS BEGINNING: One year from signing, and annually thereafter Financing for these projects would be simple, fast and easy since:  We have an existing relationship with you and have your financial statements on file, expediting the process. Please keep in mind we may also need current year statements.  We can provide familiar documentation for your legal counsel. The above proposal is subject to audit analysis, assumes bank qualification and mutually acceptable documentation. The terms outlined herein are subject to change and rates are valid for fourteen (14) days from the date of this proposal. If funding does not occur within this time period, rates will be indexed to markets at such time. Additionally, Government Capital is registered with Texas Ethics Commission to be HB 1295 compliant. Our finance programs are flexible and my goal is customer delight. If you have any questions regarding other payment terms, frequencies or conditions, please do not hesitate to call. With Best Regards, Drew Drew Whitington Client Services Main: 817-421-5400 The transaction described herein is an arm’s length, commercial transaction between you and Government Capital Corporation (“GCC”), in which GCC: (i) is acting solely for its own financial and other interests that may differ from yours; (ii) is not acting as your municipal advisor or financial advisor, and has no fiduciary duty to you with respect to this transaction; and (iii) is not recommending that you take an action with respect to this transaction. PROJECT TOTAL (first year) $ 1,909,282.00 Payment from Fund Balance (Reserves) $ - GOV Cap Financing $2,000,000 $ 1,909,282.00 Date Water Accounts Base Rate New Rate 5094 Meters Base Rate Increase Year 1 (2020) 5094 $ 28.85 $ 30.35 (12 months) $ 1.50 $ 91,692.00 Year 2 (2021) 5094 $ 30.35 $ 31.85 (12 months) $ 1.75 $ 213,948.00 Year 3 (2022) 5094 $ 31.85 $ - (12 months) $ - $ 213,948.00 Year 4 (2023) 5094 $ 31.85 $ - (12 months) $ - $ 213,948.00 Year 5 (2024) 5094 $ 31.85 $ - (12 months) $ - $ 213,948.00 Year 6 (2025) 5094 $ 31.85 $ - (12 months) $ - $ 213,948.00 Year 7 (2026) 5094 $ 31.85 $ - (12 months) $ - $ 213,948.00 Year 8 (2027) 5094 $ 31.85 $ - (12 months) $ - $ 213,948.00 Year 9 (2028) 5094 $ 31.85 $ - (12 months) $ - $ 213,948.00 Year 10 (2029) 5094 $ 31.85 $ - (12 months) $ - $ 213,948.00 TOTAL $ 2,017,224.00 City of Canyon Customer Information Current Base Rate (Water Base) (Water Volume) (Solid Waste/Sewer) YEAR Base Rate AMT New Base AMT Based on 7k AVG AVG Bill AMT New Bill AVG TOTAL 2020 $ 28.85 $ 30.35 $ 28.80 $ 40.00 $ 99.15 2021 $ 30.35 $ 32.10 $ 28.80 $ 40.00 $ 100.90 2022 $ 32.10 $ - $ 28.80 $ 40.00 $ 100.90 2023 $ 32.10 $ - $ 28.80 $ 40.00 $ 100.90 2024 $ 32.10 $ - $ 28.80 $ 40.00 $ 100.90 2025 $ 32.10 $ - $ 28.80 $ 40.00 $ 100.90 2026 $ 32.10 $ - $ 28.80 $ 40.00 $ 100.90 2027 $ 32.10 $ - $ 28.80 $ 40.00 $ 100.90 2028 $ 32.10 $ - $ 28.80 $ 40.00 $ 100.90 2029 $ 32.10 $ - $ 28.80 $ 40.00 $ 100.90  Current Water Rates Base + 2,000 $28.85 minimum gallons AVG Consumption AVG Water Bill $4.80 per 2,001–8,000 gallons thousand 7,000 gallons $58.36 8,001–20,000 $6.27 per gallons thousand 20,001–35,000 $6.44 per gallons thousand 35,001–50,000 $6.60 per gallons thousand $7.03 per Over 50,000 gallons thousand GOV CAP AMORTIZATION SCHEDULE VALUES LOAN SUMMARY Loan amount $2,000,000.00 Scheduled payment $235,587.15 Annual interest rate 3.094% Scheduled number of payments 10 Loan period in years 10 Actual number of payments 1 Number of payments per year 1 Total early payments $0.00 Start date of loan 11/18/2020 Total interest $355,871.49 LENDER NAME Government Capital PMT BEGINNING SCHEDULE EXTRA TOTAL ENDING CUMULATIVE PAYMENT DATE PRINCIPAL INTEREST NO BALANCE D PAYMENT PAYMENT PAYMENT BALANCE INTEREST 1 11/18/2020 $2,000,000.00 $235,587.15 $0.00 $235,587.15 $173,707.15 $61,880.00 $1,826,292.85 $61,880.00 2 11/18/2021 $1,826,292.85 $235,587.15 $0.00 $235,587.15 $179,081.65 $56,505.50 $1,647,211.20 $118,385.50 3 11/18/2022 $1,647,211.20 $235,587.15 $0.00 $235,587.15 $184,622.43 $50,964.71 $1,462,588.77 $169,350.22 4 11/18/2023 $1,462,588.77 $235,587.15 $0.00 $235,587.15 $190,334.65 $45,252.50 $1,272,254.11 $214,602.71 5 11/18/2024 $1,272,254.11 $235,587.15 $0.00 $235,587.15 $196,223.61 $39,363.54 $1,076,030.51 $253,966.25 6 11/18/2025 $1,076,030.51 $235,587.15 $0.00 $235,587.15 $202,294.77 $33,292.38 $873,735.74 $287,258.64 7 11/18/2026 $873,735.74 $235,587.15 $0.00 $235,587.15 $208,553.77 $27,033.38 $665,181.98 $314,292.02 8 11/18/2027 $665,181.98 $235,587.15 $0.00 $235,587.15 $215,006.42 $20,580.73 $450,175.56 $334,872.75 9 11/18/2028 $450,175.56 $235,587.15 $0.00 $235,587.15 $221,658.72 $13,928.43 $228,516.84 $348,801.18 10 11/18/2029 $228,516.84 $235,587.15 $0.00 $228,516.84 $221,446.53 $7,070.31 $0.00 $355,871.49  RESOLUTION NO. 22-2019 A RESOLUTION REGARDING A FINANCING AGREEMENT FOR THE PURPOSE OF PROCURING A “WATER METER PROJECT”. WHEREAS, City of Canyon desires to enter into a certain Financing Agreement, by and between Government Capital Corporation and the City of Canyon, for the purpose of financing a “Water Meter Project.” The City of Canyon desires to designate this Agreement as a “qualified tax-exempt obligation” of the City of Canyon for the purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended. The City of Canyon desires to designate the City Manager, as an authorized signer of the Agreement. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON: Section 1. That the City of Canyon enters into a Financing Agreement with Government Capital Corporation for the purpose of procuring a “Water Meter Project”. Section 2. That the Financing Agreement, by and between the City of Canyon and Government Capital Corporation is designated by the City of Canyon as a "qualified tax-exempt obligation" for the purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended. Section 3. That the City of Canyon designates the City Manager, as an authorized signer of the Financing Agreement, by and between the City of Canyon and Government Capital Corporation. Section 4. That should the need arise, if applicable, the City will use loan proceeds for reimbursement of expenditures related to the Property, within the meaning of Treasury Regulation § 1.150-2, as promulgated under the Internal Revenue Code of 1986, as amended This Resolution has been PASSED upon Motion made by _____________, seconded by __________________and approved by a vote of _____ to _______ and is effective upon adoption November 18, 2019. ____________________________________ Gary Hinders, Mayor ATTEST: __________________________________ Gretchen Mercer, City Secretary 1 REGARDING ITEM 9 AGENDA To: Mayor and City Commission From: Joe Price, City Manager Date: November 18, 2019 Re: Consider Meeting Dates for the Months of December, January 2019 and February 2020. _________________________________________________________________ With the Holidays fast approaching and after a VERY busy summer and fall full of meetings, we wanted to discuss meeting dates. With Thanksgiving falling the last week of November, it would be rushing things to meet the following Monday on December 2. We propose to meet only on December 9, 2019. Again in January, with New Years and Martin Luther King Day, we are proposing to only meet once in January, on January 6, 2020. For February, we are proposing to meet only once, February 3, 2020. Presidents Day is February 17. March 2020 would bring us back to the first and 3rd Mondays for meetings. We have attached a calendar with the dates marked. City of Canyon  NOVEMBER 2019 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 ŝƚLJ,ĂůůůŽƐĞĚ  DECEMBER 2019 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 &LW\ &RPPLVVLRQ 0HHWLQJ 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31  JANUARY 2020 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 &LW\ &RPPLVVLRQ 0HHWLQJ 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31  FEBRUARY 2020 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 &LW\ &RPPLVVLRQ 0HHWLQJ 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29