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 4:30 p.m. on the 31st day of August 2020, in the Commission Chambers of City Hall at 301 16th Street in the City of Canyon to discuss the following agenda items. If you plan to attend this meeting in person, there is a 50% capacity limit and social distancing and wearing a mask are practiced. The meeting is broadcast on YouTube. YouTube does provide closed captioning on the recorded video, it is not provided real-time. 1. Call to Order. 2. Invocation. 3. Pledge of Allegiance. 4. Approval of the Minutes of the Meeting/Budget Work Session of August 20, 2020. 5. Public Comment – Comments from Interested Citizens. 6. Consider and Take Appropriate Action on Update of Governor Greg Abbotts Executive Orders Directed at Slowing the Spread of COVID-19 in the State of Texas. 7. First Reading of Resolution No. 22-2022, A Resolution of the City Commission of the City of Canyon Approving Project Funding Agreement Between the City of Canyon, AMBUCS and Canyon Economic Development Corporation Relating to Funding of the Kylie Hiner Memorial Playground. 8. Consider and Take Appropriate Action on the Bid Award for the Installation of the Automated Meter Reading System (AMR). 9. Consider and Take Appropriate Action on Texas Municipal League Intergovernmental Risk Pool (TMLIRP) Board of Trustees Election. 10. Consider and Take Appropriate Action on Resolution No. 24-2020, A Resolution by the City of Canyon, Texas (“CITY”) Suspending the Effective Date for Ninety Days in Connection with the Rate Increase Filing Made on About August 7, 2020, by West Texas Gas, Inc.; Finding that the Meeting Complies with the Open Meetings Act; Making Other Findings and Provisions Related to the Subject; and Declaring an Effective Date. 11. Consider and Take Appropriate Action on City of Canyon Ethics Policy. 12. Conduct Public Hearing and Consider and Take Appropriate Action on Ordinance No. 1128 Adopting the FY 2020-2021 Operating Budget. 13. Executive Session Pursuant to §551.087 Deliberation Regarding Economic Development Negotiations and §551.071 Consultation with Attorney. 14. Consider and Take Appropriate Action on Items Discussed in Executive Session. 15. Adjourn City of Canyon  Joe Price Joe 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 28th day of August 2020. Gretchen Mercer, City Clerk City of Canyon City Commission Meeting August 20, 2020 The City Commission of the City of Canyon ,met at 9:00 a.m. 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 and Paul Lyons. Commissioner Randy Ray was unable to attend. Also present were the following City Staff: City Manager Joe Price, Assistant City Manager Jon Behrens, City Secretary Gretchen Mercer, IT Manager Shaun Holtman, Police Chief Steve Brush, Director of Finance Joel Wright, Fire Chief Dennis Gwyn, Library Director Janice Doan, Director of Public Works Dan Reese, Water Superintendent Eric Whitten, Wastewater Supervisor Robert Brummett, Wastewater Foreman John Poole, Planning and Development Director Danny Cornelius, Street and Sanitation Supervisor Brendon Banner, Business and Community Development Director Evelyn Ecker, Parks Director Brian Noel, Golf Course Supervisor John Haun, City Manager Office Intern Christian Campbell, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Hinders called the meeting to order at 9:09 a.m. Item 2. Invocation. Mayor Pro-Tem Jones gave the invocation. Item 3. Pledge of Allegiance. The Pledge of Allegiance was led by Mayor Hinders. Item 4. Approval of the Minutes of the Meeting August 17, 2020. Mayor Pro-Tem Jones moved, duly seconded by Commissioner Remlinger to approve the minutes of August 17, 2020 as presented. Motion carried unanimously. Item 5. Budget Work Session. City Manager Joe Price presented the proposed 2020-2021 budget. Mr. Price went over the structure of the budget, the tax rate, discussed departmental requests that were approved or not approved, and the process of balancing the budget. Item 15. Adjourn There being no further business, Mayor Pro-Tem Jones moved this meeting be adjourned. ______________________________ Gary Hinders, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary REGARDING ITEM 7 AGENDA To: Joe Price, City Manager From: Jon Behrens, Assistant City Manager Date: August 31, 2020 Re: First Reading of Resolution No. 22, 2020 With Regards to Direct Financial Assistance to the City of Canyon for the Development of the Kylie Hiner Memorial Playground. The Project is Considered a Quality of Life Initiative. The Canyon Economic Development Corporation approved a request form the City of Canyon to be the lead donor for the Kylie Hiner Memorial Playground. The commitment is $200,000 and is considered a Quality of Life project. Don Lee, CEDC Board President will present the summation to the commission during the August 31st meeting. A public hearing was held during the August 13th Canyon Economic Development Corporation Board meeting and there was no opposition to the project. There will not be a Funding Agreement between the City of Canyon and the CEDC for this project. This is the first reading of Resolution No. 22-2020, no action required. The second and final reading will be September 21, 2020. City of Canyon  CANYON ECONOMIC DEVELOPMENT CORPORATION PROJECT FUNDING AGREEMENT AMBUCS Joined pro forma by the City of Canyon 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 AMBUCS (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 will contribute to and help fund construction of the Kylie Hiner Memorial Playground, handicapped accessible playground facility to be built with contributions from AMBUCS, CEDC and the City of Canyon. b. To be located on a designated city park. c. All improvements contemplated by this agreement shall be constructed in accordance with written plans and specifications and approved by CEDC and the City of Canyon. 3. CEDC will fund up to $200,000 cash incentives if Second Party is not in default hereunder as follows: a. The $200,000 funding will be held in a money market account as an encumbered fund to be disbursed in monthly amounts of $10,000 beginning October 1, 2020 as needed for construction of the facility. b. All other terms and provisions of this agreement notwithstanding, the obligations of the parties hereto are expressly made contingent upon the following: i. approval of the financial incentives by the CEDC Board; ii. approval of the financial incentives by the Canyon City Commission; iii. compliance with the requirements of the TEXAS DEVELOPMENT CORPORATION ACT; and, Project Funding Agreement – AMBUCS Page 1 of 7  iv. provided that all obligations of CEDC hereunder shall terminate if Second Party fails to qualify for funding of financial incentives within 12 months from the date this agreement is signed by Second Party (the effective date). 4. The failure of Second Party to fully and timely comply with any performance requirement shall be an act of default by Second Party which shall entitle the CEDC to suspend further funding and, at its option, to terminate this agreement by written notice delivered pursuant to paragraph 9. 5. Second Party agrees to undertake the following actions in order to accomplish the project: a. Comply at all times with the requirements of paragraph 2 of this agreement during the term of this agreement. 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 the property described in Paragraph 2 if any part of the funding or financial incentives is used to improve real property. 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 its 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, 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 its operations Project Funding Agreement – AMBUCS Page 2 of 7  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 its knowledge Second Party has acquired and maintained all necessary rights, licenses, permits, and authority to carry on its business in Texas and to perform the terms of this agreement and will continue to use its 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. 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 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. Project Funding Agreement – AMBUCS Page 3 of 7 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 its 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 direction 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 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. The failure by Second Party to continuously and diligently pursue compliance shall constitute an act of default. Project Funding Agreement – AMBUCS Page 4 of 7 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 its 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. 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. Project Funding Agreement – AMBUCS Page 5 of 7 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 its 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 its 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 finder’s fee or other origination fee of any type will be paid or will become payable to any officer or employee of the City of Canyon, member of the governing body of the City of Canyon, or the governing body of the CEDC with regard to the formation or performance of this agreement. 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 Second Party pertaining to the transaction contemplated by this agreement shall survive the closing and shall constitute continuing obligations. Project Funding Agreement – AMBUCS Page 6 of 7 Effective Date: _____________________________ Second Party: CANYON ECONOMIC DEVELOPMENT AMBUCS CORPORATION By: _________________________________ By: ___________________________________ Don Lee ________________________________ President/Chairman Name 1605 4th Ave ________________________________ Canyon, TX 79015 Title ________________________________ Address ________________________________ City State Zip APPROVED: CITY OF CANYON By: ___________________________________ ___________________________________ NAME ___________________________________ TITLE Project Funding Agreement – AMBUCS Page 7 of 7  RESOLUTION NO. 22-2020 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING PROJECT FUNDING AGREEMENT BETWEEN THE CITY OF CANYON, AMBUCS AND CANYON ECONOMIC DEVELOPMENT CORPORATION RELATING TO FUNDING OF THE KYLIE HINER MEMORIAL PLAYGROUND. WHEREAS, on August 13, 2020 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. LOC. GOV'T CODE CHAPTERS 501-505, (“the Act”) to consider a funding agreement the primary purpose of which is creation of recreational community facilities to enhance the quality of life of residents within Canyon and the surrounding area; and, WHEREAS, the City Commission of the City of Canyon, Texas (the “City”), finds it to be in the public interest for CEDC to execute a Project Funding Agreement between the Canyon Economic Development Corporation and the City of Canyon and AMBUCS, on the terms and conditions set forth in the Project Funding Agreement approved by the CEDC board and presented to the City Commission for consideration and approval following a first and second reading; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON; SECTION 1: That the Project Funding Agreement by and between CEDC, the City of Canyon and AMBUCS be, and it is hereby approved, and the sales tax revenue collected pursuant to the Act by CEDC subject to the limitations of the Act may be used for a part of the cost to be incurred in constructing the Kylie Hiner Memorial Playground, a handicapped accessible facility to be constructed on City of Canyon park property. The sales tax revenue referred to in this Resolution shall be the revenue on deposit in Sales Tax Improvement Fund (Fund 40) for direct costs related to the project. SECTION 2: The maximum funding to be provided by CEDC is $200,000 to be held in an encumbered account under the control of the City and CEDC to be disbursed at the rate of $10,000 per month or as needed for construction of the Kylie Hiner Memorial Playground. Page 1 of 2 READ in accordance with TEXAS LOCAL GOVERNMENT CODE §505.152 with a quorum of the City Commission duly and lawfully assembled and at a public meeting properly called and noticed in accordance with the Texas Open Meetings Act, on the first (1st) reading, on the 31st of August, 2020. CITY OF CANYON, TEXAS ________________________________ GARY HINDERS, Mayor ATTEST: ______________________________ Gretchen Mercer, City Secretary RESOLUTION PASSED AND ADOPTED by the City Commission of the City of Canyon, Texas, with a quorum of the City Commission duly and lawfully assembled and voting and at a public meeting properly called and noticed in accordance with the Texas Open Meetings Act, on the second (2nd) and final reading, on the of , 2020. CITY OF CANYON, TEXAS ________________________________ GARY HINDERS, Mayor ATTEST: ______________________________ Gretchen Mercer, City Secretary Page 2 of 2 REGARDING ITEM 8 AGENDA To: Joe Price, City Manager From: Dan Reese, Public Works Director Date: August 31, 2020 Re: Consider and Take Appropriate Action on the Bid Award for the Installation of the Automated Meter Reading System (AMR). Bids were received and opened for this project on August 13, 2020. This project is for installation only of the AMR system. All of the material has already been procured from our regular meter vendor. A base bid and one alternate bid item was taken. The base bid includes complete meter replacement (about 4,000), and the alternate was for register (dial) replacement, only (about 350 registers). The registers replacement was necessary to get up to speed with the latest Neptune technology. Large meters (above 2”) will be replaced and automated by City personnel. We have about 30 of those. The remaining meters will need no attention, as they are new enough and have the latest register technology. Also, to keep the project in budget, the decision was made that any meter newer than 10 years old, will remain for now (about 1,000 meters). The water department also took it upon themselves to install the five collectors needed to collect and transmit the data to the host. This saved on the budget as well, freeing up some funding in case we need to address some of the unknowns of the project, like replacing broken parts and pieces during the installation of the new meters. The most difficult part of this entire project was trying to come up with the quantities for broken parts. Two bids were received. Bids were evaluated using a “best value” process, where the contractors were actually scored based on common bidding criteria. As somewhat expected, the scoring came down to the best price, as both contractors had the same score for the other four criteria. The evaluation criteria sheet is attached. The itemized bid tabulation sheet is also attached. The winning bid was submitted by Amarillo Utility Contractors, in the amount of $ 451,510.00. This is a combination of the base and alternate bid. The time bid to complete the project was 200 calendar days. The engineer’s letter of recommendation is attached, as well. City of Canyon  AGENDA The City Commission has previously authorized funding for this project to come from $500,000 in reserves and $1,400,000 that was borrowed from the Government Capital Corporation (GovCap), for a $1,900,000 project budget. To date, we’ve spent approximately $ 1,164,000 on material, so with the installation bid, we currently stand at a little over $ 1,615,000 for the project. This will give us some leeway moving forward for some of the unknowns. The Public Works Department concurs with the Engineer and recommends awarding the AMR installation project to Amarillo Utility Contractors in the amount of $451,510.00. RECOMMMENDED MOTION “I move to award the bid for the AMR installation project to Amarillo Utility Contractors in the amount of $451,510.00”. City of Canyon REGARDING ITEM 9 AGENDA To: Mayor and City Commission From: Joe Price, City Manager Date: August 31, 2020 Re: Consider and Take Appropriate Action on Texas Municipal League Intergovernmental Risk Pool (TMLIRP) Board of Trustees Election We have received our ballot for TMLIRP Board of Trustees election. As you know, the TMLIRP provides us with property, liability, workers’ comp, and various other types of insurance coverages. As you may recall, your previous City Manager, Mr. Randy Criswell was on this board. The nearest representative is Mr. Jeffrey Snyder, City Manager of Plainview. He has sent us a letter, asking for our support. Please see the attached letter from Mr. Snyder. Each member City gets one vote per place, and I have the following recommendations: I would recommend that you cast Canyon’s votes for the following. Each of them are experienced, and play a valuable role in the board. I’ve listed the two incumbents plus my recommendations for the other two places. Place 1: Robert Herrera (Incumbent) Place 2: John (Buzz) Fullen (Incumbent) Place 3: Jeffrey Snyder (Incumbent) Place 4: Robert Hauck (Incumbent) City of Canyon REGARDING ITEM 10 AGENDA To: Mayor and City Commission From: Joe Price, City Manager Date: August 31, 2020 Re: Consider and Take Appropriate Action on Resolution No. 24-2020, A Resolution by the City of Canyon, Texas (“CITY”) Suspending the Effective Date for Ninety Days in Connection with the Rate Increase Filing Made on About August 7, 2020, by West Texas Gas, Inc.; Finding that the Meeting Complies with the Open Meetings Act; Making Other Findings and Provisions Related to the Subject; and Declaring an Effective Date BACKGROUND On or about August 7, 2020, West Texas Gas, Inc. (“WTG”) filed a Statement of Intent to increase its base rate revenues by a total of approximately $4.1 million; this equates to an increase in annual revenue of about 47% including gas costs, and 53% not including gas costs. This is WTG’s first request to increase its base rates since 2013. Following the conclusion of its 2013 rate gas (Gas Utilities Docket No. 10235), WTG has raised its rates by means of several Interim Rates Adjustment (“IRA”) filings, also known as “GRIP” filings. However, WTG has exhausted the maximum number of IRA filings it is permitted to make under statute, thus triggering WTG’s current request to increase rates. WTG proposes an effective date of September 11, 2020 for its change in rates. As is explained below, the proposed resolution related to WTG’s application to increase its base rate revenues, if adopted, suspends WTG’s proposed effective date for the statutory time period of 90 days, to December 10, 2020. BILL IMPACT: WTG proposes to increase base rates for all of its “Domestic Customers,” i.e., residential customers, and “Non-Domestic Customers,” i.e., industrial and commercial customers, located in Lubbock. WTG proposes no change in rates for its “Non-Domestic Customers” that are not located in Lubbock. The effect on a typical customer’s bill under WTG’s proposed rates is as follows: City of Canyon  AGENDA Customer Class Current Proposed and Gas Cost Average Average Percentage Percentage Zone (Average Monthly Monthly Proposed Increase Change Monthly Usage Bill with Bill with Monthly with Gas without Gas mcf) Gas Cost Gas Cost Increase Cost Cost North Zone Domestic $46.28 $70.12 $23.84 51.5% 63.1% Non-Domestic $98.24 $98.24 $0.00 0.0% 0.0% West Zone Domestic $38.16 $57.36 $19.20 50.3% 60.0% Non-Domestic $137.71 $137.71 $0.00 0.0% 0.% Lubbock $31.34 $79.47 $48.13 153.6% 223.0% Incorporated, Domestic Lubbock Incorporated, Non-Domestic $118.81 $172.02 $53.20 44.8% 76.9% South Zone Domestic $27.64 $39.81 $12.17 44.0% 52.2% Non-Domestic $133.84 $133.84 $0.00 0.0% 0.0% REVENUE IMPACT: Assuming WTG’s proposed increase is approved, the effect on the change in base rate revenue not including gas costs, for each customer class is shown below: Percentage Class of Customer Current Revenue Proposed Revenue Increase Domestic $6,055,386 $9,735,898 60.8% Lubbock, Domestic $152,147 $491,454 223.0% Non-Domestic $2,097,565 $2,097,565 0.0% Lubbock, Non- Domestic $52,039 $92.049 76.9% CURRENT BASE RATES VERSUS PROPOSED BASE RATES: WTG proposes to increase the fixed customer charges and consumption charges for the Domestic class and Non-Domestic class of customers located in Lubbock. WTG proposes no change to the fixed customer charge and consumption charge for its Non-Domestic class of customers that are not located in Lubbock. The table below shows WTG’s current base rate charges and its proposed base rate charges: City of Canyon  AGENDA Class of Customer Current Proposed $ Change % Change Domestic Customer Charge Per Month $14.75 $20.00 $5.25 35.6% Consumption Charge Per Month (per mcf) $3.59 $6.49 $2.90 80.8% Domestic, Lubbock Customer Charge Per Month $7.86 $20.00 $12.14 154.5% Consumption Charge Per Month (per mcf) $1.79 $6.49 $4.70 262.3% Non-Domestic Customer Charge Per Month $26.22 $26.22 $0.00 0.0% Consumption Charge Per Month (per mcf) $2.47 $2.47 $0.00 0.0% Non-Domestic, Lubbock Customer Charge Per Month $15.59 $26.22 $10.63 68.2% Consumption Charge Per Month (per mcf) $1.38 $2.47 $1.09 79.4% Because of the substantial increase in rates to the Domestic class and Non-Domestic class of customers located in Lubbock and no change in the rates for the Non-Domestic class of customers not located in WTG’s other service areas the City should closely scrutinize WTG’s proposed allocation of costs to the customer classes. ACTION REQUIRED BY September 11, 2020 The City must take action on WTG’s Statement of Intent before September 11, 2020. Absent such action, WTG’s proposed rates are deemed approved by operation of law. ALLIANCE OF WTG MUNICIPALITIES The Alliance of WTG Municipalities (“AWM”) was organized by a number of municipalities served by WTG. Alfred R. Herrera, with the law firm of Herrera Law & Associates, PLLC, has previously represented the City as part of AWM in rate cases involving WTG. City of Canyon  AGENDA CITY JURISDICTION TO SET WTG’S RATES Unless a city ceded its original jurisdiction to the Railroad Commission of Texas, the Gas Utility Regulatory Act § 103.001 grants a city exclusive original jurisdiction over a gas utility’s rates, services, and operations within the city limits. But even if a city has ceded its jurisdiction to the Railroad Commission, the Gas Utility Regulatory Act § 103.023 (“GURA”), grants a city the statutory right to participate in rate proceedings before the Railroad Commission. RATE CASE EXPENSES Cities by statute are entitled to recover their reasonable rate case expenses from the utility. See GURA § 103.022. Legal counsel and consultants approved by AWM will submit monthly invoices to the coalition-designated city that will be forwarded to WTG for reimbursement. No individual city’s budget is negatively affected. SUSPENSION WTG’s rate-filing package is voluminous as it contains thousands of pages of data. In order to have time to review the rate-filing package, the Council is requested to suspend WTG’s proposed effective date for ninety (90) days as provided by the Gas Utility Regulatory Act. It is a virtual impossibility for the City to set just and reasonable rates without suspending WTG’s rate request for ninety days; suspension of WTG’s proposed effective date will permit its special regulatory counsel and experts an opportunity to closely evaluate WTG’s application. Further, should WTG’s notice prove to be deficient, then the statutory period would be extended; also by agreement between the City and WTG, the statutory suspension period may be further extended. RECOMMENDATION It is recommended that the City join or continue its participation in AWM and retain the law firm of Herrera Law & Associates, PLLC to represent the City’s interest in matters related to WTG’s rate case and to advise the City with regard to WTG’s application, and that, if WTG either submits its application to the Railroad Commission of Texas, or appeals the City’s final decision to the Railroad Commission, the City intervene in the proceeding before the Railroad Commission of Texas, should such proceedings develop, and court appeals, if any. The recommendation is also to suspend WTG’s proposed effective date of September 11, 2020, for its proposed increase in rates as set forth in WTG’s Statement of Intent for 90 days. Assuming WTG’s notice meets the statutory criteria for adequate notice, the suspension period runs until December 10, 2020. The City must take action no later than September 11, 2020. If the City does not take action by September 11, 2020, WTG’s proposed rates will be deemed approved by City of Canyon  AGENDA operation of law, subject to the City’s right to hold a hearing to address WTG’s rate application. Staff Recommendation: City Staff recommends the suspension of the rate case filing by West Texas Gas. Recommended Motion: “I make a motion to approve Resolution No. 24-2020, A Resolution by the City of Canyon, Texas (“CITY”) Suspending the Effective Date for Ninety Days in Connection with the Rate Increase Filing Made on About August 7, 2020, by West Texas Gas, Inc.; Finding that the Meeting Complies with the Open Meetings Act; Making Other Findings and Provisions Related to the Subject; and Declaring an Effective Date.” City of Canyon  RESOLUTION NO. 24-2020 RESOLUTION BY THE CITY OF CANYON, TEXAS (“CITY”) SUSPENDING THE EFFECTIVE DATE FOR NINETY DAYS IN CONNECTION WITH THE RATE INCREASE FILING MADE ON ABOUT AUGUST 7, 2020, BY WEST TEXAS GAS, INC.; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE WHEREAS, West Texas Gas, Inc. (“WTG” or “Company”) filed a Statement of Intent with the City on or about August 7, 2020, to change its rate schedules within the corporate limits of this municipality, specifically to increase its annual revenue requirement by approximately $4.1 million, which represents an increase in base rates of about 65%; and WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act (“GURA”) and under Chapter 104, §103.001 et seq. of GURA has exclusive original jurisdiction over WTG’s rates, operations, and services within the municipality; and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing and investigating WTG’s rate request and its changes in tariffs, it is prudent to coordinate the City’s efforts with a coalition of similarly situated municipalities; and WHEREAS, the City, in matters regarding applications by WTG to change rates, has in the past joined with other local regulatory authorities to form an alliance of cities known as the Alliance of WTG Municipalities (“AWM”), and hereby continues its participation in AWM; and WHEREAS, WTG’s rate request consists of a voluminous amount of information including WTG’s rate-filing package, exhibits, schedules, and workpapers; and WHEREAS, WTG’s rate application is the Company’s first general rate case since about June, 2013, and follows six consecutive annual increases approved pursuant to the Interim Rate Adjustment (“IRA”) mechanism, also known as “GRIP” filings; and WHEREAS, WTG proposed September 11, 2020, as the effective date for its requested increase in rates; and WHEREAS, it is not reasonably possible for the City to complete its review of WTG’s filing by September 11, 2020; and WHEREAS, the City will need an adequate amount of time to review and evaluate WTG’s rate application to enable the City to adopt a final decision as a local regulatory authority with regard to WTG’s requested rate increase. WHEREAS, the City will require the assistance of specialized legal counsel and rate experts to review the merits of WTG’s application to increase rates; and 1 of 3 West Texas Gas, Inc. 2020 Statement of Intent WHEREAS, if WTG submits a corresponding application with the Railroad Commission of Texas or appeals the City’s action to the Railroad Commission of Texas, the decision of the Railroad Commission of Texas will have a direct impact on the City and its citizens who are customers of WTG, and in order for the City’s participation to be meaningful it is important that the City intervene in any such proceedings at the Railroad Commission of Texas related to WTG’s application to increase rates. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS THAT: Section 1. The findings set out in the preamble are in all things approved and incorporated herein as if fully set forth. Section 2. WTG’s proposed effective date for its proposed increase in rates is hereby SUSPENDED for ninety days beyond September 11, 2020. Section 3. The statutory suspension period may be further extended if WTG does not provide timely and meaningful, and proper public notice of its request to increase rates, if its rate-filing package is materially deficient, or by agreement. Section 4. The City shall participate in a coalition of cities known as the Alliance of WTG Municipalities (“AWM”), and authorizes intervention in proceedings related to WTG’s Statement of Intent before the Railroad Commission of Texas and related proceedings in courts of law; and Section 5. The City hereby orders WTG to reimburse the City’s rate case expenses consistent with the Gas Utility Regulatory Act and that WTG shall do so on a monthly basis and within 30 days after submission of the City’s invoices for the City’s reasonable costs associated with the City’s activities related to this rate review or related to proceedings involving WTG before the City, the Railroad Commission of Texas, or any court of law. Section 6. Subject to the right to terminate employment at any time, the City retains and authorizes the law firm of Herrera Law & Associates, PLLC to act as Special Counsel with regard to rate proceedings involving WTG before the City, the Railroad Commission of Texas, or any court of law, and to retain such experts as may be reasonably necessary for review of WTG’s rate application subject to approval by the steering committee of the AWM. Section 7. The City, in coordination with the Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to WTG for reimbursement. 2 of 3 West Texas Gas, Inc. 2020 Statement of Intent  Section 8. A copy of this resolution shall be sent to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, 4400 Medical Parkway, Austin, Texas 78756, and a courtesy copy to WTG’s local representative. Section 9. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 10. This resolution shall become effective from and after its passage. PASSED AND APPROVED this 31st day of August, 2020. GARY HINDERS, MAYOR ATTEST: Gretchen Mercer, City Secretary 3 of 3 West Texas Gas, Inc. 2020 Statement of Intent REGARDING ITEM 11 AGENDA To: Mayor and City Commission From: Chuck Hester, City Attorney Date: August 31, 2020 Re: Informational presentation on Draft Code of Ethics for the City of Canyon. Attached is a draft of a proposed Code of Ethics for discussion. As you will recall, back in July we talked about creating a document to clearly state the goals and objectives to guide the conduct of elected and appointed officials going forward. These are aspirational in nature at this time since there is currently not an enforcement provision in our Home Rule Charter. The Code would be a useful guide not only to those in office, but those who plan to seek public office as well. It gives the commission a chance to define the culture of our city government. I do not anticipate action at this meeting, but welcome any suggestions or input for further consideration by the governing body. City of Canyon  CITY OF CANYON CODE OF ETHICS 1. Conflicts of Interest No elected or appointed official 1 may take action that provides a financial or other personal benefit to the official, relatives including a spouse, child, brother or sister, a sibling’s immediate family, a parent, aunt or uncle, customers, clients, an employer, or a person who has made campaign contributions to the official within a 24 month period. 2. Open Government Laws The public relies upon the official’s compliance with the Texas Open Meetings act and Texas Public Information Act. Therefore, an official shall not attempt to subvert open government by conducting public business in private or outside public view if the matter cannot lawfully be addressed in a properly noticed and convened executive session. 3. Appearance of Impropriety An official must avoid circumstances that in the eyes of the public compromise his or her ability to make decisions solely in the public interest or create an appearance of impropriety. The official should not place personal interest above duty to the public when acting in an official capacity. 4. Recusal An official must recuse himself when faced with a conflict referred to in Paragraph 1. Recusal Defined Recusal means that the official may not deliberate, vote or participate in any way in that matter. The official should disclose his conflict by affidavit and remove him or herself 1 “Official” includes appointed officials and employees CITY OF CANYON CODE OF ETHICS PAGE 1 OF 3 from consideration or decision on the matter. The official should not provide input regarding the matter from the audience in his capacity as a member of the public following recusal. 5. City Property and Resources No official may use city-owned property, assets or any resources for personal purposes or profit or to benefit any person. Use of these resources is restricted to the conduct of official business, for the benefit of all residents and to further an authorized public purpose. 6. Nepotism In accordance with §5.10 of the Home Rule Charter of the City of Canyon, no person shall be employed by the City who is related by blood or marriage to a member of the City Commission or the City Manager. With regard to all other officials, spouses and other family members of the City official may not serve in positions whose duties conflict or appear to conflict within the duties of the official. They may not serve on a commission, board or body of which the official is a member. 7. Gifts In accordance with Article 16 §1 of the Texas Constitution, before entering upon his or her duties, each official has affirmed that he or she has not directly or indirectly paid, offered, promised to pay or contributed or promised to contribute any money or thing of value or promised any public office or employment for the giving or withholding of a vote or as a reward to secure an appointment or confirmation. That affirmation should continue to be the standard throughout the public service of the official. An official may not solicit any gift nor may he or she receive any gift, whether financial or in any other form from any person who is doing or seeking to do business of any kind with the City including applications for permits or approvals; has done business with the City during the last 24 months; or from a lobbyist advocating before a City department. An official may not solicit or receive any gift or payment as a reward for exercise of official duties. Generally, an official may not receive or solicit any gift, creating the appearance that his official duties may be influenced or that his responsibility to make impartial decisions solely in the public interest is compromised. Gifts from family members are excluded. CITY OF CANYON CODE OF ETHICS PAGE 2 OF 3 8. Private Employment An official shall not solicit, negotiate for or commit to accept private employment from any person doing business with or having any matter pending with the City. 9. Representation An official shall not appear on behalf of, or represent a person in any matter before a municipal agency except on his own behalf. 10. Confidential Information An official or former official may not disclose confidential information or use it to further his or another person’s private interests or in any way utilize the information for non- public purposes. 11. Subordinates or Appointees No official shall solicit political contributions from City employees or request that they attend political functions or engage in any political activity. No official shall engage in abuse of office or official oppression in an effort to harm another or obtain a benefit for the official or family members. 12. Training Each municipal official annually shall receive training concerning the requirements of the code of ethics, open government and conflicts of interest. CITY OF CANYON CODE OF ETHICS PAGE 3 OF 3 REGARDING ITEM 12 AGENDA To: Mayor and City Commission From: Joe Price, City Manager Date: August 31, 2020 Re: Conduct Public Hearing and Consider and Take Appropriate Action on Ordinance No. 1128 Adopting the FY 2020-2021 Operating Budget During the regular meeting of August 3, 2020 the Commission received the Proposed FY 2020-2021 City of Canyon Operating Budget and set a public hearing date. Due to a holiday, the public hearing date was moved to Monday, August 31, 2020 (Regular Meeting of Monday, September 7th is the Labor Day Holiday). During this regular meeting of August 31, 2020, the Commission will hold the required public hearing and introduce Ordinance 1128. All statutory requirements pertaining to the municipal budget process will be met after the conclusion of the Public Hearing. Upon final passage of Ordinance 1128, along with the subsequent ratification vote of the budget because of the small increase in property taxes, the City of Canyon’s Operating Budget for the fiscal year beginning October 1, 2020 and ending September 30, 2021 will be complete. The proposed expenditures in the FY 2020-2021 Operating Budget total $23,794,425. This amount includes all funds and capital improvements, capital projects, and equipment purchases. Prior budgets did NOT include all funds, the debt service fund nor the capital equipment fund. In hindsight, that is why the numbers look notably different. Staff recommends the City Commission conduct a public hearing on the Proposed Budget for FY 2020-2021 to allow for public comment and staff recommends adoption of Ordinance 1128, making appropriations in support of the general operation of the City of Canyon for the year beginning October 1, 2020 and ending September 30, 2021. Staff recommends Commission’s ratification of the Proposed Budget for FY 2020-2021 regarding the property tax increase. City of Canyon  AGENDA Recommended Motions (2 separate motions - 1 on Budget Adoption and 1 on the Ratification of the Budget – due to the increase of property taxes): Recommended Motion: “I move that Ordinance 1128, making appropriations in support of the general operation of the City of Canyon for the year beginning October 1, 2020 and ending September 30, 2021, be adopted on final reading.” “RECORD VOTE REQUIRED” Texas Local Government Code 102: Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law. Recommended Motion: “I move that Ordinance 1128, making appropriations in support of the general operation of the City of Canyon for the year beginning October 1, 2020 and ending September 30, 2021, be ratified with an increase of property tax revenue.” City of Canyon  Tax Rate Distribution Current for Fiscal Year 2020 Adopted for Fiscal year 2021 Fiscal Tax Year Year General Fund (M&O) Debt Service (I&S) Total Tax Rate 2016 2015 0.39083 0.00000 0.39083 2017 2016 0.39830 0.07420 0.46503 2018 2017 0.39083 0.06401 0.45484 2019 2018 0.39083 0.05659 0.44742 2020 2019 0.37899 0.05910 0.43809 2021 2020 Proposed 0.38084 0.05725 0.43809 Assessed Valuation, Taxes Levied & Taxes Collected Summary of Assessed Valuations Projected for Fiscal Year 2020 Adopted for Fiscal Year 2021 Net % of Fiscal Tax Assessed Tax Total Tax Total Levy per Current Taxes Year Year Valuation Rate Levy (calculated) Tax Roll Summary Collected 2016 2015 630,787,444 0.39083 2,465,306.57 2,367,581.00 99.94% 2017 2016 648,437,743 0.46503 3,015,460.04 2,820,782.75 99.60% 2018 2017 733,655,658 0.45484 3,336,959.39 3,136,343.87 99.63% 2019 2018 817,010,622 0.44758 3,656,776.14 3,458,963.63 99.50% 2020 2019 796,876,550 0.43809 3,491,036.48 3,289,554.27 99.11% 2021 2020 827,926,981 0.438090 3,627,065.31 - - City of Canyon Ad Valorem Tax History Tax Rate Distribution Fiscal Tax General Fund Debt Service Year Year M&O I&S Total 2016 2015 0.39083 - 0.39083 2017 2016 0.39083 0.07420 0.46503 2018 2017 0.39083 0.06401 0.45484 2019 2018 0.39083 0.05659 0.44742 2020 2019 0.37899 0.05910 0.43809 2021 2020 Proposed 0.38084 0.05725 0.43809 Assessed Valuation, Levied & Collected Valuation Fiscal Tax Taxable Change from Tax Total Total Levy per Lost Due Year Year Value Prior Year Rate Levy (calculated) Tax Roll Summary To Frozen 2016 2015 630,787,444 6.10% 0.390830 2,465,306.57 2,368,918.25 96,388.32 2017 2016 648,437,743 2.80% 0.465030 3,015,430.04 2,832,112.00 183,318.04 2018 2017 733,655,658 13.14% 0.454840 3,336,959.39 3,148,070.00 188,889.39 2019 2018 817,010,622 11.36% 0.447580 3,656,776.14 3,476,343.00 180,433.14 2020 2019 796,876,550 -2.46% 0.438090 3,491,036.48 3,319,248.98 171,787.50 2021 2020 Proposed 827,926,981 3.90% 0.438090 3,627,065.31 3,332,983.00 294,082.31 2016-2021 INCREASE 197,139,537 23.81% 1,114,898.70 (6 YEARS) (VALUATION) (PERCENT) (LOST REVENUE)  Collected M&O I&S Total % Collected 2,367,581.00 N/A 2,367,581.00 99.94% 2,370,751.59 450,031.16 2,820,782.75 99.60% 2,695,190.69 441,153.18 3,136,343.87 99.63% 3,020,392.23 438,571.40 3,458,963.63 99.50% 2,845,153.63 444,400.64 3,289,554.27 99.11% - 0.00%  ORDINANCE NO. 1128 AN ORDINANCE MAKING APPROPRIATIONS FOR THE SUPPORT OF THE CITY OF CANYON FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2020 AND ENDING SEPTEMBER 30, 2021; PROVIDING FOR THE APPROPRIATION OF AN INTEREST AND SINKING FUND TO PAY INTEREST AND PRINCIPAL ON THE CITY'S INDEBTEDNESS; PROVIDING FOR THE ADOPTION OF THE ANNUAL BUDGET OF THE CITY OF CANYON, TEXAS FOR THE 2020-2021 FISCAL YEAR; PROVIDING THAT EXPENDITURES FOR SAID FISCAL YEAR SHALL BE MADE IN ACCORDANCE WITH SAID BUDGET; AUTHORIZING SPECIFIC BUDGET ADJUSTMENT AUTHORITY TO THE CITY MANAGER; PROVIDING FOR THE RATIFICATION OF BUDGETED APPROPRIATION TRANSFERS IN THE 2020-2021 FISCAL YEAR; PROVIDING A REPEALING CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION AND AN EFFECTIVE DATE WHEREAS, on July 31, 2020, the proposed FY 2020-2021 Operating Budget was filed with the City Secretary, and made available for public inspection; and, WHEREAS, the City Commission has received the proposed Budget, appended hereto as Exhibit A, for the fiscal year beginning October 1, 2020 and ending September 30, 2021; and, WHEREAS, a public hearing was ordered by the City Commission, public notice of said hearing was caused to be given by the City Commission, said notice was published in the Official Newspaper of the City of Canyon, Texas, and said public hearing was held in accordance to said notice. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: SECTION 1. That, the appropriations for the Fiscal Year beginning October 1, 2020 and ending September 30, 2021, for the support of the general government of the City of Canyon, Texas, be fixed and determined for said terms in accordance with the expenditures shown in the proposed Fiscal Year 2020-2021 Budget, a copy of which is appended hereto as Exhibit A. Ordinance 1128 Page 1 of 3 SECTION 2. That, there is hereby appropriated the amount shown in said budget necessary to provide for an interest and sinking fund for the payment of principal and interest and the retirement of the bonded debt requirements of Fiscal Year 2020-2021 of the City of Canyon, Texas. SECTION 3. That, the Budget, as shown in words and figures in Exhibit A, is hereby approved in all respects and adopted as the City of Canyon’s Budget for the Fiscal Year beginning October 1, 2020 and ending September 30, 2021. SECTION 4. That, the expenditures during the Fiscal Year beginning October 1, 2020 and ending September 30, 2021, shall be made in accordance with the Budget approved by this Ordinance unless otherwise authorized by a duly enacted ordinance of the City Commission of the City of Canyon, Texas. SECTION 5. That, specific authority is given to the City Manager to make the following adjustments to the City of Canyon’s Budget for the Fiscal Year beginning October 1, 2020 and ending September 30, 2021: 1. Transfer of appropriations budgeted from one account classification to another account classification within the same department. 2. Transfer of appropriations budgeted from one department or activity to another department or activity within the same fund. SECTION 6. That, all provisions of the ordinances of the City of Canyon, Texas, in conflict with the provisions of this Ordinance be and the same are hereby repealed and all other provisions of the ordinances of the City of Canyon, Texas, not in conflict with the provisions of this Ordinance shall remain in full force and effect. Ordinance 1128 Page 2 of 3  SECTION 7. That, if any word, sentence, paragraph, subdivision clause, phrase or section of this Ordinance be adjudged or held unconstitutional, illegal, or invalid, the same shall not affect the validity of this Ordinance as a whole, or any part or provision thereof other than the part so decided to be invalid, illegal, or unconstitutional. SECTION 8. That, this Ordinance shall become effective after its publication, and the City Secretary of the City of Canyon, Texas, is hereby directed to publish in the Official Newspaper of the City of Canyon, Texas, the Caption, and Effective Date of this Ordinance as required by Section 52.013, Texas Local Government Code. PASSED, APPROVED, AND ADOPTED, on this the 31st day of August 2020, at a regular meeting of the City Commission of the City of Canyon, Texas, which meeting was held in compliance with the Open Meetings Act, Tex Gov’t Code, §551.001, et.seq. at which meeting a quorum was present and voting. For the Adoption: Against the Adoption: Abstaining: Absent: ____________________________ GARY HINDERS, MAYOR ATTEST: GRETCHEN MERCER, CITY SECRETARY Ordinance 1128 Page 3 of 3