CITY COUNCIL AGENDA. Wednesday, September 12, :00 a.m.

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1 CITY COUNCIL AGENDA Wednesday, September 12, :00 a.m. CITY COUNCIL Martin Heines, Mayor Linda Sellers, District 1 Broderick McGee, District 2 Edward Moore, District 3 Don Warren, District 4 Bob Westbrook, District 5 John Nix, District 6 Edward Broussard, City Manager

2 CITY COUNCIL MEETING AGENDA CITY COUNCIL CHAMBERS - CITY HALL 212 North Bonner Tyler, Texas Wednesday, September 12, :00 a.m. Internet website and Cable Access Channel 3 Please call (903) if you need assistance with interpretation or translation for this City meeting. Si usted necesita ayuda con la interpretación o traducción de cualquier material en este sitio o en una reunión pública de la Ciudad de Tyler por favor llame al (903) AMERICANS WITH DISABILITIES ACT NOTICE The City of Tyler wants to ensure that City Council Meetings are accessible to persons with disabilities. If any individual needs special assistance or accommodations in order to attend a City Council meeting, please contact the City Manager s Office at , in advance so accommodations can be made. COURTESY RULES Thank you for your presence. The City Council appreciates your interest in Tyler City Government. To ensure fairness and orderly meetings, the Council has adopted rules of courtesy which apply to all members of the Council, Administrative Staff, News Media, Citizens and Visitors. If you wish to address the Council, obtain a speaker card from the receptionist s desk outside the Council Chambers, complete the information requested on the card, and deliver to the City Clerk before the meeting or as soon as you can. Speakers will be heard as the individual item(s) in which they have registered an interest come before the Council. Your remarks will be limited in duration depending on the number of people wanting to speak on a particular item. Delay or interruption of the proceedings will not be tolerated.

3 INVOCATION PLEDGE OF ALLEGIANCE MINUTES a. Consider approval of the Minutes of the Regular Called City Council Meeting from August 8, AWARDS A-1 Request that the City Council consider accepting the Gold Star Affiliate award from Keep Texas Beautiful. ORDINANCE O-1 Request that the City Council consider adopting an Ordinance amending and updating fees and other applicable adjustments to Tyler City Code Chapter 8 relating to Parks, Chapter 12 relating to Transit, Chapter 16 relating to Solid Waste Disposal Regulations, and Chapter 19 relating to Water and Sewer. O-2 Request that the City Council consider adopting the Fiscal Year proposed budget ordinance, Fiscal Year budget amendments, and authorize the City Manager to execute the outside agency contracts for Fiscal Year O-3 Request that the City Council consider adopting the property tax rate ordinance of $ cents per $100 valuation for Fiscal Year MISCELLANEOUS M-1 Request that the City Council consider changing the regular City Council Meeting date of October 10, 2018 to Wednesday, October 3, M-2 Request that the City Council consider authorizing the application for and acceptance of Federal Transit Administration (FTA) Grant Funds under the Section 5339 Bus and Bus Facilities Grant in the amount of $93,948 along with the acceptance of 18,790 in Transportation Development Credits (TDC), and request that the City Council consider authorizing the City Manager to direct Transit staff to begin procurement of one heavy duty bus and two medium duty buses with grant funds from a Section 5307 Federal Transportation Administration (FTA) Grant. M-3 Request the City Council consider authorizing the City Manager to sign an Architectural and Aquatic Agreement from The C.T. Brannon Corporation for an amount not to exceed

4 $50,000 to develop architectural and engineering plans for Fun Forest and Woldert Park repurpose projects. M-4 Request that the City Council consider ratifying a payment to the Texas Department of Transportation, in the amount of $9,201, for the Tyler Bike Stripes project. M-5 Request that the City Council consider authorizing the City Manager to approve a Reconciliation Change Order and the release of final payment in the amount of $27, to A.E. Shull & Company for the Troup Highway Booster Pump Station project. M-6 Request that the City Council consider authorizing the City Manager to execute a contract with Miller Construction, for the construction of Fleishel Avenue Drainage Improvements project in the amount of $999, CONSENT (These items are considered to be routine or have been previously discussed, and can be approved in one motion, unless a Council Member asks for separate consideration of an item.) C-A-1 C-A-2 C-A-3 C-A-4 Request that the City Council consider authorizing the City Manager to renew the lease for ReCollect Waste Management App as a communication tool for both the Solid Waste Residential and Commercial customers for $9,999 per year. Request that the City Council consider authorizing the City Manager to purchase solid waste trucks from TIPS cooperative, and police patrol vehicles from Texas BuyBoard chosen vendors as part of Fleet Replacement program for FY2019. Request that the City Council consider authorizing the City Manager to sign a permanent right-of-way use agreement with Conterra Ultra Broadband, LLC for the purpose of installing, operating, and maintaining fiber optic cable in the City of Tyler right-of-way. Request that the City Council consider authorizing the City Manager to enter into a contract with Cleanmaster Janitorial Services, Inc. for the provision of janitorial services in the Police Department at annual cost of $73, This contract is a two year contract with an optional one-year renewal covering Fiscal Years CITY MANGER S REPORT ADJOURNMENT

5 MINUTES OF THE REGULAR CALLED MEETING OF THE CITY COUNCIL OF THE CITY OF TYLER, TEXAS August 8, 2018 A regular called meeting of the City Council of the City of Tyler, Texas, was held Wednesday, August 8, 2018 at 9:00 a.m. in the City Council Chambers, 2 nd floor of City Hall, Tyler, Texas, with the following present: Mayor: Martin Heines Mayor Pro Tem: Councilmembers: Linda Sellers Don Warren Broderick McGee Ed Moore John Nix Bob Westbrook City Manager: Edward Broussard City Attorney: Deborah G. Pullum Sr. Assistant City Attorney: Sharon Roberts Assistant City Attorney: Regina Moss Managing Director of Administrative Services/HR: ReNissa Wade Chief Financial Officer: Keidric Trimble Director of Neighborhood Services: Raynesha Hudnell Police Chief: Jimmy Toler Project Engineer: Managing Director of Culture, Recreation and Tourism Services: Stephanie Franklin Director of Solid Waste & Transit Services: Russ Jackson Managing Director of Planning & Economic Development: Heather Nick Water Business Office Manager: Jim Yanker Managing Director of Utilities and Public Works: Scott Taylor City Clerk: Cassandra Brager INVOCATION MINUTES AWARDS The Invocation was given by Councilmember Nix. Motion by Councilmember Warren to approve the June 27, 2018 and July 11, 2018 minutes; seconded by Councilmember Nix; motion carried 7-0 & approved as presented. A-1 Request that the City Council consider accepting the Distinguished Budget Presentation Award for its Fiscal Year Budget document from the Government Finance Officers Association of the United States and Canada.

6 August 8, 2018 ZONING Z-1 Z RODRIGO LOPEZ (4119 FRY AVENUE) Request that the City Council consider an appeal of the Planning and Zoning Commission s denial of a zone change from R-1A, Single-Family Residential District to RPO, Restricted Professional Office District. Van Shaw, 2723 Fairmount, Dallas, Texas (attorney hired by Applicant to review the matter) Stated that he is reviewing whether there was a prior blanket zoning on the property that would have repealed the deed restrictions on the property. He asked that the City Council table the matter to allow him to look into the matter further. Randle Cook, 411 Fry Stated that since 1963, the subdivision lots were deed restricted to residential use. There are six other lots that are on and facing Loop 323 with residential use deed restrictions like the Applicant s lot. Cook stated the neighborhood, including the applicant s lot, is a residential area, used for residential activities walking and biking by both children and adults. Cook stated that he and his neighbors oppose this zone change. Motion to deny was made by Councilmember Nix; seconded by Councilmember Warren; motion carried 7-0 & zoning was denied as presented. PRESENTATION P-1 Request that the City Council: 1) Consider receiving a presentation of the Fiscal Year Proposed Budget; City Manager, Edward Broussard - Gave a presentation of the Fiscal Year proposed Budget. See attached Exhibit A. 2) Consider voting to place proposals to adopt an ad valorem tax rate and adopt the final fiscal year budget as action items for the September 12, 2018 City Council meeting; and Councilmember Westbrook Stated this journey began approximately 22 years ago when Mayor and Council of that day embarked on a new and innovative property tax strategy for our City. Retirement of the general obligation bond debt with the use of the newly adopted Half Cent Sales Tax revenues, and then with the use of those very revenue dollars to pay cash for capital improvement projects throughout our City. Recent conversations with some of those leaders have revealed their true intentions that the property tax rate for the City of Tyler should not have dropped below 30 cents/$100 valuation. Mr. Broussard, our Tyler City Manager, concurred with that position in his presentation to Council in a workshop in May of this year when he stated, Our optimal property tax rate would be approximately 30 cents on the $100 valuation. The fact that it fell below 30 cents/$100 has led to over dependency on sales tax revenue, which has been either 2

7 August 8, 2018 feast or famine for our City over the past decade, depleted our fund balances, and has affected staffing and services in most Departments. However, this Council, with courage, has a unique opportunity to properly fund our City and not shift the burden to future Councils. Our Citizens expect more from their City. On this day, at this meeting, Council will establish the property tax rate ceiling within which this discussion regarding the needs of our City can take place. The actual property tax rate will be set at the September 12 th meeting. Motion by Councilmember Westbrook to place proposals to adopt an ad valorem tax rate of 29 cents per one-hundred dollars of assessed values and the fiscal year budget as action items on the September 12,2018 City Council meeting; no one seconded the motion; motion failed due to lack of a second. Motion by Councilmember Nix to place proposals to adopt an ad valorem tax rate of cents per one hundred dollars of assessed values and the fiscal year budget as action items on the September 12, 2018 City Council meeting, and as a cap on any further consideration of an increase to the ad valorem tax rate; seconded by Councilmember Warren; motion carried 6-1 & approved as presented John O Sullivan, 300 E. Erwin Stated that he thinks the City might be getting shortsighted by keeping the budget too low. The employees of the City are the ones who actually run the City and holding their pay frozen for years with just a few merits here and there has cost the City quite a bit. Mr. O Sullivan said he works with the City s Building Department regularly and often has different people come to his property to do inspections. He said the Engineering Department is understaffed to the point it looks more like a ghost town nowadays. It s time to look at raising the budget slightly. I don t know if it has to be up to 29 cents or 30 cents, but I think it has to be higher than 24 cents to give you some flexibility with your employees and some of the services. Mr. O Sullivan also spoke about the softball field he uses in Lindsey Park to play senior softball. He said fields in other towns, make Tyler s look one step above a pasture. He said that the field could be improved. Al Thead, 121 S. Broadway Ave Stated that he works for a downtown property developer by the name of Invest in Tyler. Mr. Thead stated that he did come today to support a tax rate higher than the cents. Mr. Thead stated that he thinks we have all seen a wonderful vision provided for free to citizens by some architects and engineers, and they did that all pro bono. As a business you know that you have to set yourself apart and improve constantly. Mayor Heines - Stated that the City likes to let the private sector drive the economy instead of leading with public investment. Pamela Phoenix, 3412 Benbrook Dr. Stated that she was for having an ad valorem tax for more than the 24 cents but less than the 29 cents. For the living wage, she would like to see it shift from $10.50 to $12.00 for the lower scale workers. Mrs. Phoenix also stated that the City Council needs to raise property taxes to improve roads in the District 3 area of the City. She also spoke on the 11 frozen positions as unforeseen and asked if the employee would then have the ability to be called back first if they have not found other jobs. 3

8 August 8, 2018 City Manager, Edward Broussard - Stated that no employee lost their jobs while the positions were frozen and the shift for the living wage from to dollars for full time employees will be covered in this budget. The Health Saving Account is something that will be reviewed in this upcoming year. The City Manager aslo stated that District 3 streets are under construction for Fiscal Year James Hobb, 717 Bentley Ct. Stated that he would urge Council to consider raising the rate above the amount proposed in the budget in order to allow a discussion about infrastructure. Mr. Hobb was not confident that the amounts posed in the budget were adequate. Mr. Hobbs said the City has been reactive with regard to infrastructure instead of proactive. He would like to see the City work to upgrade sewer infrastructure. He is just convinced that the City could do more and that the experts that work for the City could tell you where to start. Councilmember Nix Stated that the water infrastructure is paid for through fees on residents water bills. He said the property tax rate has nothing to do with water infrastructure spending. Councilmember Moore Stated that this is the first time since he has been on City Council where he has had people come in and say, Let s increase the taxes, and that s good, really good. He stated, I can support the increase to the tax rate, but I don t think I could support trying to bite the whole apple at one time. Councilmember Moore agrees with raising taxes over a longer period of time, but said he represents constituents who would not be able to afford the tax rate of 24 cents to 29 cents on the $100 valuation at this particular time. Councilmember Warren Stated that he has reviewed the budget at length and this was his fifth year to be on Council, and he has seen some previous budget presentations that were pretty tough. He thinks this is a good budget. He stated that sales tax for 2017 was $26, , the projected sales tax for 2018 is $28,316, For budget year 2019, the projection is $28,628, Projected 2019 is $1,660, better than Ardent is adding $197, to the tax rolls If we use the rollback rate of.44 cents value this would generate $482, additional revenue for the City. If we go up to the forty-fourth of a cent, this would also generate approximately $332, in revenue for the City. The Half Cent fund should generate $14,293, in Councilmember Warren stated that he was excited about the new fire engine and the raises for the City employees as well as adding two new employees to fire and two new employees to police. We are holding insurance premiums at the same level, however, deductibles will be going up slightly. We will be spending $800, in park improvements. Everything I see is positive and moving forward. Councilmember Nix Stated that he was thankful to have this discussion so that the citizens of Tyler could understand the Blueprint-driven, no general obligation debt, fiscally conservative, small government way we have operated is in danger. The large tax increase motion heard earlier was not about the tax rate, it is just the latest idea in an attempt to increase spending. There is no justification in this upcoming budget year 4

9 August 8, 2018 to raise the property tax rate over 20 percent from last year. There have been opinions voicing support for exploring general obligation debt as well as the desire to explore leveraging the Half Cent Sales Tax with debt by this Council in just the last 15 to 16 months. Leveraging the Half Cent would be in direct violation of the pledge that was made to the citizens of Tyler by the City Council. Councilmember Nix stated that he would never be for general obligation debt or leveraging Half Cent. He would never be in favor of a tax increase election when we cannot justify an acute need as well as all of the non-essentials being cut out of the budget. This Council has proven over the last five budgets that we will vote in measured and conservative increases when we are able to make a sound and well-founded case to the citizens. We have to get back to the basics in what and how we direct our budgets and spending. The Blueprint has served as the lens for this direction for years, and it is still the right framework. One of the core competencies of the Blueprint is sound financial management and we have to maintain that as a focus. We are and can continue to address our needs as a community through good budgeting and wise stewardship, not money grabbing policies. We are addressing current needs with employees and operations, as well as deferred maintenance in this budget. This budget does not address all of the wants but it does address the immediate needs, and that is a great thing to say about a limited government budget. The Blueprint s values to Streamline, Empower, Respond, Venture, and Evaluate, (SERVE) have to remain our compass. Mayor Pro Tem Linda Sellers Stated that she would encourage the public to give their feedback on where you would like to see this City go in the future. She stated that this was a good budget and we have done what we needed to do for this year. Mayor Heines Stated that the City Charter process dictates that the City Manager develop and present a budget to the City Council. It is important to note that Ed has 20 years of city management experience and was Texas City Manager of the Year in Add his years of experience plus the award-winning financial team, and we have years of municipal budget experience. As a reference point, this is his ninth budget. Things that the Mayor has learned: Each City Manager he has worked with followed a six-month process to accumulate and analyze a proposed budget before it was submitted to the Council. It takes a Councilmember two full budget cycles to understand the thirty-seven funds and the transfers in and out of those funds. He has learned that you never prejudge a budget until it is submitted by the City Manager at this Council meeting. The City has the best department heads and key leaders since he has been elected. Let them do their job first of presenting their budgeting needs. Once our talented staff has set their budget, then they suggest to Council and the public their recommended tax rate. Staff never creates the rate first, and neither should we. He has learned and fully believe that it is good to be our own unique City. We should be proud to be different. Philosophy: Some of the Mayor s beliefs concerning City Government. 1. Conservative, business-like approach to City government. 2. Supporting the City s Blueprint. 5

10 August 8, No general obligation debt. 4. Limited government. 5. Trust our non-profits and faith-based institutions to be the safety net for our social services. 6. Let the private sector economic system work. Do not provide commercial or residential developer s financial incentives. The private market does work. 7. Keep appropriate tax reserves. It is the taxpayers money. Do not over-tax citizens and businesses to keep their money in savings. It is their money. 8. Focus on basic services and do them well. 9. Support creation and retention of primary jobs, but be careful not to be misled into risky, costly infrastructure at the taxpayer expense. 10. When you run for local office as a conservative businessman, be one. 11 It is okay to be different than others. We don t have to overtax homeowners and business owners just because you see other cities with higher tax rates. 12. Enhance public safety and focus on infrastructure. 3) Consider voting to schedule public hearings on the proposed property tax rate and the proposed budget on the agendas for the August 22 and August 29, 2018 (Special Called) City Council Meetings. Motion by Councilmember Moore; seconded by Councilmember Westbrook; motion carried 7-0 & approved as presented. City Council took a 10-minute recess. P-2 Request that the City Council consider receiving a presentation from Enprotec/Hibbs & Todd concerning their recommendations and progress on water system improvements studies. Withdrawn from the agenda P-3 Request that the City Council consider receiving a presentation of the 10-year Tyler Water Utilities Capital Improvements Program for the Fiscal Year Scott Taylor, Managing Director of Utilities and Public Works Gave a brief update on the 10 year Tyler Water Utilities Capital Improvements Program for the Fiscal Year RESOLUTION R-1 Request that the City Council consider adoption of a Resolution authorizing approval of the revised Hazard Mitigation Action Plan as an Official Plan of the City of Tyler. (R ) Motion by Councilmember Westbrook; seconded by Councilmember Moore; motion carried 7-0 & approved as presented. 6

11 August 8, 2018 ORDINANCE O-1 Request that the City Council consider approving an Ordinance adopting the proposed budget for the Community Development Block Grant (CDBG) and HOME Programs FY Annual Action Plan and authorize the City Manager to execute Housing and Urban Development Certification and SF-424 forms. (O ) Motion by Councilmember Moore; seconded by Mayor Pro Tem Sellers; motion carried 7-0 & approved as presented. MISCELLANEOUS M-1 Request that the City Council consider authorizing the City Manager to accept the bid and sign all related documents for construction of the Hillside Park improvements in the amount of $43, to Permacast, LLC of Bradenton, Florida, paid for by the Keep Tyler Beautiful Capital Fund. Motion by Councilmember Warren; seconded by Councilmember McGee; motion carried 7-0 & approved as presented. M-2 Request that the City Council consider authorizing the City Manager to execute Work Order No. 2, in the amount of $22,275.94, to Capco Engineering, Inc., for construction phase services during construction of the Sewer Improvements from Pinecrest to Tanglewood project. Motion by Councilmember Westbrook; seconded by Councilmember Moore; motion carried 7-0 & approved as presented. M-3 Request that the City Council consider authorizing the City Manager to award a construction contract in the amount of $233, to A.E. Shull & Company for the Sewer Improvements from Pinecrest to Tanglewood project. Motion by Councilmember Nix; seconded by Councilmember McGee; motion carried 7-0 & approved as presented. CONSENT (These items are considered to be routine or have been previously discussed, and can be approved in one motion, unless a Council Member asks for separate consideration of an item.) C-A-1 Request that the City Council consider authorizing the City Manager to sign an Interlocal Agreement with Smith County so the Sheriff s Department can make application for and accept the Edward Byrne Memorial Justice Assistance Formula Grant for the Year

12 August 8, 2018 C-A-2 C-A-3 C-A-4 C-A-5 C-A-6 C-A-7 C-A-8 C-A-9 Request that the City Council consider authorizing the City Manager to sign a Professional Services Contract with Envirocare Lawn Maintenance not to exceed $27, This contract is a two year contract with an optional one year renewal. Request that the City Council consider authorizing the application for and acceptance of Federal Transit Administration (FTA) Grant Funds passed through to the Texas Department of Transportation (TXDOT) under the Section 5310 Mobility of Seniors and Individuals with Disabilities Grant in the amount of $270,000 along with the acceptance of $54,000 in Transportation Development Credits (TDC). Request that the City Council consider authorizing the application for and acceptance of a Texas Department of Transportation (TxDOT) grant for Urban State Funds in the amount of $390,673. Request that the City Council consider authorizing the City Manager to reject bids for bid number for Hillside Park Construction. Request that the City Council consider authorizing the City Manager to execute Easement and Right of Way agreements to install electrical lines on City-owned property in the South Hillcreek No. 1 Subdivision at Lake Tyler. Request that the City Council consider authorizing the City Manager to sign a permanent right-of-way use agreement with Conterra Ultra Broadband, LLC for the purpose of installing, operating, and maintaining fiber optic cable in the City of Tyler right-of-way. Request that the City Council consider ratifying the expenditure of $51, to Odessa Pumps, through Texas Buy Board #509-16, for completion of Earl Campbell Parkway sewer Lift Station. Request that City Council consider authorizing the City Manager to award a oneyear service contract for citywide filter change services to East Texas Filter Service in the amount of $35, per year with an annual option to renew at the same cost for four (4) additional years. Motion by Councilmember Westbrook to approve all consent items; seconded by Mayor Pro Tem Sellers; motion carried 7-0 & approved as presented CITY MANGER S REPORT 1. Tyler 1 st community survey for public feedback is being conducted for infrastructure and performances of the City. 2. Brynmar Court Drainage Improvements by the Brannon Corporation. Drainage study is complete and has been sent to Holly Creek HOA for their review. Engineer revised design 8

13 August 8, 2018 for owners to the north and is continuing to work on acquiring easements. Waiting for response from the Corps of Engineers on whether an archeological survey is required. Anticipate construction to start by spring Anticipated completion date for design is September Library pushing out two new programs: Adulting 101 and the Brew and Board. The first is Adulting 101, a monthly program designed to educate teens and adults in our community about something useful that we all need in our adult lives. Adulting 101 takes place the third Saturday of the month from 2-4 pm. This will start August 18 with a class on Credit, provided by Capital One. The Library already has September and October planned and are seeking new opportunities for educational courses if anyone is interested. Our second program beginning this month is Brews & Boards. This will take place at ETX Brewing Co. the last Thursday of each month from 7-10 pm. Library staff will bring over board games and card games to allow people at ETX Brewing Co. to play games as they have their brews. We are excited to provide an outreach program that helps showcase our collections ADJOURNMENT Motion by Councilmember Warren to adjourn the meeting at 11:43 am; seconded by Councilmember Nix; motion carried 7-0 & meeting adjourned. MARTIN HEINES, MAYOR OF THE CITY OF TYLER, TEXAS A T T E S T: CASSANDRA BRAGER, CITY CLERK 9

14 August 8, 2018 Proposed FY 2018 Budget Presentation Exhibit A August 8, 2018 Mayor Heines and City Council, It is our privilege to be before you today to present the proposed Fiscal Year 2019 programs and services for the City of Tyler. The format of our presentation today aligns with the organization s Strategic Plan, which in itself is tied back to Tyler 1 st and the City Council s direction. Whereas in the past we focused on the City s functions and costs, this presentation goes the next step to provide how the budget supports the momentum of the City to make progress on its mission and goals. We start with the City of Tyler s mission and vision for our services to this community. Our mission is to SERVE our community to make a positive difference. This and our vision for performance excellence are our guide for the services that we provide each day and the planning that we make for a better tomorrow. We as the public servants of this city are here to serve the people that make up Tyler, and it is this guiding principle that influences the budget we present today. We are continuing the path that was set out in 1995 with the Blueprint as adopted by the City leaders and continued with their political descendants. There was a direction set for the community where we could be debt-free on our property tax levies and focusing on essential services in a quality manner for our citizens and businesses. This was further solidified in our Tyler 1 st Vision in which our partners joined us at the table to set the future of the City, with the understanding that it is not just the City s role to provide services for our community but a group effort of government, education, faith institutions, business, and industry to enhance our City together. The proposed programs and services before you represents the input and analysis of hundreds of staff, reviewing their ability to enhance their services and answer to the citizens who have asked for improvements. We do not shy away from finding opportunities for improvements; and in order to be an organization of continual improvement, we have to be able to identify what works, what does not work, and when to make adjustments that will provide better services for our citizens. The budget process forces that review and analysis to refine our services. This means cutting funding where appropriate and increasing resources where the programs are having success. It involves understanding priorities for the community, such as parks improvements as identified by the Council or public safety as shown in citizen surveys. This budget reflects those urgencies of the community will and provides responsive, responsible solutions. The Strategic Plan focuses on six core areas: Sound Financial Management Sustainable Infrastructure Performance Excellence Talented and Experienced Workforce Public/Private Partnerships 10

15 August 8, 2018 Diverse Economy and Prepare for Growth We use these six core areas to plan, prioritize, and measure for organizational success. This is the focus of our activities and enhancements as we will detail in this presentation. Our first priority is Sound Financial Management. You see this demonstrated through our fiscal forecasts, financial plan reviews and ability to shift in spending based on economic conditions. Our decline in sales tax revenue during FY 2016 and FY 2017 demonstrated our versatility to respond by freezing vacant positions, reducing fund transfers towards maintenance and shifting replacement schedules. This is demonstrated in the 37 different funds that the City operates, ranging from enterprise funds such as utilities and the airport to specially designated funds for street maintenance or tourism. During the past three fiscal years, the City has struggled with General Fund revenues, which pay for those services that do not have a direct revenue source. This goes toward Police, Fire, Parks, Streets, Library, Municipal Court and general government services. Several factors have come into play during this budget s development that have provided recovery and strengthened the General Fund for the coming year. We have seen sales and use tax revenue experience growth again, increasing 4.96 percent between FY2017 and FY2018. We are projecting a cumulative 1.0 percent growth for FY2019, although we should note that we have developed our projections on sales and use tax differently than in past years. Sales and use tax is generated from several different components, ranging from retail, restaurants, service, warehouse, and agriculture and mining. We developed revenue projections off of each of these different components as they show different trends during the past few years. The oil and gas industry especially influences certain areas of the sales tax, especially with mining and service, and we work to balance the volatility of this primary revenue stream with more nuanced projections. We will go in more detail on the property tax revenue projections later in this presentation. I do want to note that the Fines and Fees revenues continues to show declines, with a negative projected difference of percent between FY2017 and FY2019, as a net loss of $621,500. There are several reasons for the loss, including changes in state law on community service options, modifying policies on compounding of multiple citations, and reduction of moving violations citations. I also want to note that one of the strategies we continue toward is evaluating where other funds or revenue sources can be used to pay towards specific general fund services as appropriate. We ll see this later as we examine the Solid Waste Fund. We look to be creative and innovative with other potential revenue sources where appropriate to reduce the cost of services for our taxpayers. We are recommending a modest tax rate increase from 24 cents to cents per $100 valuation for FY2019. With a net taxable value of $7,458,830,497 within the city limits, the additional rate increase of cents will generate $332,067 over the current rate, with the full net taxable revenue amount to be $18,214,464. At our proposed rate of cents per $100 valuation, a home valued at $150,000 would be assessed City property taxes of approximately $360 per household per year, or $30.55 per month. Less than a penny, the cent increase would translate to $6.68 annually. 11

16 August 8, 2018 We continue our commitment to reinvesting in our aging water and wastewater infrastructure system, yet at the same time evaluate our standing with other utilities in similar-size markets. Using the survey data collected by the Texas Municipal League on utilities rates, we see that we are still lower than all other average utility rates in Texas in different volumetric usage. We have begun a very aggressive maintenance and repair program for our water and wastewater system; and with that, we have followed the Blueprint model of cash funding to the full extent that we can. During the next ten years, we expect to cash flow $48.5 million in utility system improvements. For FY2019 alone, we intend to spend $9.6 million in cash on water and wastewater system improvements. The proposed utility rate increases mirror the rate modifications that we set for the current fiscal year. There will be a $1.00 base rate increase on water and $1.00 base rate increase on wastewater, along with an increase on the regulatory compliance fee, which is directly linked back to debt payments for system improvements required by the Environmental Protection Agency and Texas Commission on Environmental Quality. The increase for residential users will be $3.94 per month. For those industries and businesses that use more than 25,000 gallons per month, they will see a volumetric price increase as well. While the impact will vary depending on how much water is used by the customer, for those using 30,000 gallons of water per month, they will see an increase of $4.10 per month. We reviewed the fees associated with development to ensure that our costs for materials and services are captured. With this in mind, we are only recommending adjustments to our water and sewer tap fees for cost recovery of these services. As a comparison for our solid waste rates for residential pickup, we offer a premium service at a considerably low monthly rate that provides on average eight collections per month. Our Solid Waste staff consistently receive high marks during the citizen surveys, outdoing even our public safety functions on top-rated services. We did make adjustments to our residential rate with this current fiscal year, and set in place an annual review of CPI rates for future possible incremental increases. These changes moved the business model of our Solid Waste services from being dependent on commercial customers for subsidization of our residential rates to now having residential customers getting closer to paying in full for the service. The coming year s increase based on our CPI increase of 2 percent is 32 cents, bringing the monthly rate to $ In addition, we are recommending a rate increase for the curbside recycling program. The existing rate is $4.50 per month for twice a month pickup, but we are finding that the increasing costs for disposal of the recyclable products is outpacing our collections. Our recommendation for the monthly increase is $5.25 to ensure full cost recovery. As we begin a review of our property valuations and use of the property tax collections to advance our public safety and general government services, it is useful to consider how our collections match with other comparable hub cities in Texas. With the lowest rate in the state, we also collect a relatively smaller amount of taxes as compared to our other marketplace competitors. There are two positives though that come with this first, we do have lower rates and collections because of that Blueprint philosophy that we still believe in and that has resulted 12

17 August 8, 2018 in not having to levy an interest and sinking rate for debt on our citizens and businesses. Every dollar we collect from our property taxes goes into our public safety, parks, library services that work for our citizens. This disciplined approach toward financial management has led to the City being recognized with a AAA bond rating on its General Fund, and AA+ rating on our Utility System. Second, I did not use the phrase marketplace competitors on accident. We do compete with our fellow municipalities for economic development and quality of life projects. Our tax rate and small number of regulations provides an edge for the City of Tyler, and our relatively small number of tax abatements that we have done in the past demonstrates this point. As we consider a tax rate increase, we do want to note that there are protections for our senior citizens who are on a regulated income. The City provides a tax ceiling freeze for those over the age of 65 or persons with disabilities. The resulting forfeited potential revenue in 2018 equates to 1.38 cents on the tax rate, or $1.044 million. The major change in the property valuations for FY 2019 ties directly to the addition of the former ETMC, now UT Health East Texas as taxable value on the rolls. The purchase of the hospital system adds $197,428,418, which equates to $482,618 in additional revenue for the coming year. Without this addition to the tax rolls, we still experience our regular rate of growth in values and additions, which reflects the confidence that our citizens and newcomers have in Tyler as a location for residential, business, and industrial growth. The Mayor s quote on investment in infrastructure and public safety could be considered the theme of this budget. Our programs and functions for the coming year build on the foundations that we have set for protecting our assets in the streets, water and wastewater systems, parks, facilities, vehicles and equipment that we own. This requires increased maintenance and improvements for the $1.037 billion in City of Tyler assets. This moves into our second focus of the Strategic Plan Sustainable Infrastructure. We are estimated to spend an incredible amount of $50 million on capital projects and equipment during the coming year. This investment will improve the water quality, wastewater service, streets and drainage, parks, traffic, and equipment that is provided to protect and enhance the lives of the 117,000 people who call Tyler home as well as the 250,000 that make up our daytime population who are in our care while in our city limits. Since its adoption in 1995, the Half Cent Sales Tax Fund for capital projects has been an incredible success story for Tyler and serves as a model for responsible, sustainable capital program funding. Having served in other cities, I am grateful that our City leaders had the foresight to create this source of cash to fund the Capital Improvement Program on an ongoing basis rather than be dependent on debt to fund these projects. After 23 years of the program in action, I want to promote its impact on our city. We ran the model for what the addition to our property tax rate may be if we used debt on the $170 million we have spent since the Half Cent adoption. Our rate would now be approximately 46 cents instead of 24 cents if we had to add an interest and sinking portion to the tax rate. If we didn t issue any further debt than the $170 million during the past 23 years in this model, we would not be able to fully pay that off and get to a tax rate of 25 cents until

18 August 8, 2018 We also ran another comparison based on a hypothesis that was our slow and steady approach of using cash with Half Cent having a similar or greater effect of funding capital projects than if we issued debt instead over the same period. We reviewed the City of Waco s debt issuances during the past 15 years and compared our capital projects from the Half Cent Fund with their debtfunded capital projects. Waco has a tax rate of cents with 11 cents dedicated to repaying debt, as compared to our 24 cent rate. We factored into the comparison what the difference in spending percent of total budget for Tyler as compared to Waco, and found the comparison had us keeping pace with Waco s debt issuances over the span of the decade and half. The difference, though, is we get to use each dollar collected to use toward the project rather than split between repaying the bond issuances and the interest on top of that. For the coming fiscal year, we have several projects that move forward to benefit traffic, quality of life, drainage, and public safety using the $14.2 million we expect to generate and the available funds generated during the current fiscal year to potentially spend a total of $27.4 million. Fire Station No. 1 at Palace & Gentry and Fire Station No. 4 at Cherry Hill & Cumberland will be under construction, along with the improvements of Martin Luther King, Jr. Boulevard. We have improvements scheduled for Hillside Park and Fun Forest Park, along with drainage enhancements throughout the City. The Half Cent Fund will also pay towards the Traffic Modernization Study that begins the major process of improving the connections between our traffic signals. On our water utility system, we are budgeted to spend $2.7 million in cash and $3.1 million of bond funds for regulatory compliance during FY This continues the work of improving water quality throughout our City with replacement of water lines, looping lines where appropriate, and improvements of filters at the Golden Road Water Treatment Plant. FY 2019 will be a big year for our wastewater system as we expect to spend $14.5 million on projects. This includes $6.3 million in cash and $7.2 million in bonds. We will move forward with rehabilitating the Southside Wastewater Treatment Plant clarifier and substantial work related to the EPA Consent Decree. We are also purchasing easements for the proposed new regional wastewater treatment plant further south from Tyler as we begin planning toward that project, which is about ten years out. Prior to FY 2017, our asphalt seal coat program was funded with whatever could be carved out of the General Fund beyond the other funded services. The Council set a goal of 81 to reach for the Pavement Condition Index, that is conducted on all City asphalt streets, and to set aside a penny from the tax rate to begin funding a street maintenance program. The $842,000 that we estimate for FY 2019 reflects the continued growth of that fund. We are also recommending increasing the tax rate set-aside from a penny to cents per $100 valuation. Our goal is that in the next year or two we will able to designate 1.25 cents of the tax rate for the asphalt seal coat program, as we still need to increase spending on this program to be able to reach the average rating of 81. Based on the recommendations from the PCI team this year, we need to increase our overlay budget from Half Cent Fund from $3 million a year as we currently fund it to $3.5 million and the amount on seal coat program to $1.25 million to fully realize the 81 rating or greater. In addition to the Street Maintenance Fund, we are recommending the purchase of a pro-patch truck using commercial solid waste revenues. Our solid waste fleet contribute heavily to the deterioration of our streets, and can provide assistance through franchise fees for street repairs. 14

19 August 8, 2018 This additional contribution of $150,000 from commercial revenues will purchase a vehicle that enhances the pothole and utility cut repairs, with an expected repair increase total of 76 per month. We continue to utilize federal grants that provide 90 percent match for our runway improvement projects. Runway 4/22 is expected to be open in November of this year, which provides more options for larger aircraft usage at Tyler Pounds Regional Airport. American Airlines has recently increased their flights at the airport, and staff have been marketing the new runway capacity to carriers ranging from large national companies to more regional services. We will continue to review opportunities to grow our airport for both business development at the airport and for passenger coverage to other airports. The Council recently adopted the budget for our HOME program and the next year s programs for the Community Development Block Grant. We are excited about one of the main CDBG projects for next fiscal year, which is the sidewalk construction to link neighborhoods with TJ Austin Elementary. Mayor Heines and Councilman Moore have both been advocates for this project, with students from the school petitioning for the sidewalks. When people ask how they can be heard by their local government, these students provide a constructive model for how to be understood and capture the attention of your elected officials. Speaking of capturing the attention of our elected officials, we heard from the Council during last year s budget process and their meetings with athletic groups afterwards that we needed to recommit ourselves to park improvements throughout the City. We struggled with maintenance issues during the recession in 2016 and 2017, as funding for simple maintenance and repairs dried up. We have been able to use increased donations during 2018 along with surpluses from our revenue growth in the General Fund during this year to expand our renovation and replacement programs. We continue this momentum on our parks into FY 2019 by developing a regional parks capital program funded by our commercial solid waste revenue projections and the Keep Tyler Beautiful tipping fee at the landfill. Collectively, we propose spending $800,000 on regional park improvements and will combine this with funding dedicated from the Half Cent Fund to begin improvements at Lindsey, Fun Forest, Woldert, Southside, Hillside, and Gassaway Parks. We will also continue to seek donations for projects such as the ADA playground anticipated at Southside Park and new features at Hillside Park, which allows for our dollar to go further in renovating our facilities. Our stabilized revenue sources also provide us an opportunity to replace and purchase needed capital replacements with our fleet. We anticipate spending $4 million on the purchase of 59 vehicles and related equipment, along with the purchase of a new fire engine as part of our replacement program. One of the projects that I am most excited about in this budget is one that few will notice when being done and will probably not think about too much once completed, and that is the replacement of the library roof. We have been working on putting together funding for this project for years, but not able to afford it as other projects took priority. As the library consists of lots and lots of books and paper, we cannot have a leaky roof for this facility. The roof replacement ensures that our citizens have a comfortable place to learn and relax, our staff have a safe environment to work, and our materials are protected from the elements. It may 15

20 August 8, 2018 not seem like a major undertaking for a city our size, but it is a reflection of our enhanced commitment to take care of our assets. I also want to note that we need to replace the body cameras used by our police officers. The Tyler Police Department were pioneers in the use of the body cameras for citizen interactions, and the time has come to begin replacing the body cameras with updated equipment. Chief Toler and staff are working to secure a grant to pay for half of the cost with the City s portion paid from seizure funds. Our third goal in the Strategic Plan is Performance Excellence. This organization has a long history of utilizing innovative programs and education with our employees to better them and better the community. We continue our Lean Six Sigma Program throughout the organization, with a total of 18 trained black belts and 40 green belts providing consultation on projects. During the past ten years, we estimate that we have reduced costs by $8 million through analyzing our services, vendors, and opportunities for savings. Approximately a third of our budget is dedicated to the salaries and benefits of the 850 plus employees who serve this City. They range from parks crews who are taking care of our medians during the heat of the day to the men on the fire engine headed to an emergency. The funding for these positions comes from multiple funds, including the various enterprise funds we have and the General Fund. Of the approximately 850 employees, the majority work in our Police and Fire Departments. 20 percent make up our Utilities staff, with 12 percent in general government functions such as parks, streets, library, and municipal court. For the past two fiscal years, we have been unable to provide any merit increases for our staff. We did continue with the step pay increases for our police and fire employees, and worked on market adjustments with positions that we found difficulty with either recruiting or retaining. Our employees staid dedicated to the City though during these hard years as we saw retention continue to improve. We are recommending a merit increase of 1.5% to base pay for our civil service employees, which are our police officers and fire fighters. For non-civil service employees, which is everyone who is not a police officer or firefighter, we are offering a merit increase choice based on their performance evaluation. They can choose between the base increase of 1.5%, which will compound over time, or a lump sum payment of 2.5% that is not added to their base. One of the issues that we faced during the recent downturn was that the merit increases to base pay of 4% in 2014, 4% in 2015, and 2% in 2016 were not able to be sustained when sales tax wasn t growing at rates of 4% or greater each year. Thus we are evaluating merit pay systems that would allow for growth of base rates at a slower percentage while offering lump sum payments as well. This puts the decision on the merit pay with the employee as to go with a higher one time amount or the lower amount, but knowing that it will grow with time based on future merit increases. We are proposing the addition of two police officers and two firefighters for the second half of the fiscal year, along with an IT Specialist, which is funded by revenue gained with contracts that 16

21 August 8, 2018 we have with other cities to provide for their IT services. The Library is also converting two of their part-time custodians into one full-time custodian and the addition of a substitute outreach technician, which has no additional costs incurred. This marks an important opportunity as we unfreeze the remaining 11 positions in our General Fund departments. During the most direct period of our sales tax decline, we had upwards of 50 frozen positions, and this demonstrates the significance of our General Fund stabilization. These positions include Streets crews, parks and recreation coordinator, deputy court administrator, and clerical staff to assist our Fire training staff. These positions being unfrozen allow our departments to reach their full effectiveness in the coming year. During the past three years, we have made substantial adjustments to our Health Fund and its policies. As a self-insured institution, we have pursued changes that balanced the program s costs between the City and the employee. The Health Fund has seen a good year with relatively few major claims and increased costs not being as high as earlier predicted. With the state of the Health Fund, we recommend no increases in premiums for employees. We do request increasing the deductible from $500 to $1,000, with the intent of bringing our deductible more towards the market comparison of $1,500 with FY We will also consider the option of the HSA and its impact on our Health Fund during the coming year with expectations of a recommendation for FY Beyond the salaries and benefits for our staff, we continue to expand opportunities for the employee to grow with our organization. Our staff may be hired for a specific task, but we are amazed at the talent that they have that blooms with training, equipment, and teamwork. We have employees who are getting their bachelors and masters degrees from local colleges and universities, allowing them to continue their advancement in the City. Our programs such as the Roses and Weeds podcast were developed by allowing staff to use their skills not associated with the job in a way that benefits the entire community. Our Toastmasters Club teaches and encourages staff to share their stories and experiences with the community to provide a greater understanding of what the City does. I am proud of the development and creativity that our staff demonstrate through these additional workforce investments. We continue to pursue our public/private partnerships for programs that extend beyond our core functions. The Innovation Pipeline project has entered its second year and proven to be beneficial for the City, UT Tyler, TJC, and our other business partners. Staffing for this project is provided by both the City and UT Tyler. Our partnership with Visit Tyler for convention and visitor bureau services is recommended to continue at the level of $700,000 for the coming year. This funding is generated from the Hotel Occupancy Tax Fund and used to pay towards staff and marketing services related to our multiple tourism events throughout the year. We made a significant reduction in our contribution toward Northeast Texas Health Department last year, taking our amount to $200,000 which matched the contribution from Smith County. We recommend staying at that rate for the coming year, along with our contribution of $66,000 toward the Center for Healthy Living on Highway 155. This area of focus on the Strategic Plan provides for the community participation in building our diverse economy and growing our city. Since 2015, we have annexed acres into the city 17

22 August 8, 2018 limits and continue to evaluate opportunities for further growth with new residential and commercial corridor developments. We prepare for the new additions to the city, but also work with our downtown partners to protect and revitalize the core of the City. Since 2007 with the inception of the Main Street Program, $104,692,595 has been invested in the Downtown area. For just the first two quarters of 2018, we ve seen on investment of $672,341 in redevelopment. This trend is expected to grow in the coming fiscal year as several projects are about to kickoff. We are also waiting for the Federal response in late 2018 on our BUILD grant application which would transform the S. Broadway corridor from Erwin to Front Street. As per the budget and tax rate adoption schedule per state statutes, the Council has two actions that it must take today. It must adopt a proposed rate that becomes the ceiling for consideration in further debate and to use for publication purposes, and the Council must set the two public hearings for the budget and tax rate. Due to the schedules from presentation to adoption, there is a special meeting needed for the second public hearing which we are requesting for the date of Wednesday, August 29. We expect to bring the tax rate and budget to the Council for adoption at your meeting on September 12. I do want to extend my deep appreciation to my budget team of Keidric Trimble, ReNissa Wade, and Blake Cathey for their countless hours of taking the budget proposals from each department and working to refine these into the document we have for review today. They took the needs of the departments and their fellow executive team members into account, as well as the demands of their City Manager, and crafted the best budget that I have had the privilege to present. In addition, I note the incredible work in showcasing our budget story as shown in this presentation developed by Jennifer Pittman and Blake Cathey. They took information that is dry and sleepinducing, and found a format that demonstrates how the budget moves forward the direction of the City. I also provide my gratitude to you, the City Council. You provided direction and priorities in the retreats in September and May, as well as in past Council meetings, that set the stage for the budget we provided. Our focus on employees, infrastructure, parks, and public safety reflects your vision for this community. I thank you for your service and insight on behalf of the citizens of Tyler. It is a privilege to serve you and present this budget for FY 2019 programs and services for your consideration. A T T E S T: CASSANDRA BRAGER, CITY CLERK MARTIN HEINES, MAYOR OF THE CITY OF TYLER, TEXAS 18

23 CITY OF TYLER CITY COUNCIL COMMUNICATION Agenda Number: A-1 Date: September 12, 2018 Subject: Request that the City Council consider accepting the Gold Star Affiliate award from Keep Texas Beautiful. Page: 1 of 3 Item Reference: Gold Star Affiliate Award Keep Tyler Beautiful (KTyB) has served the City of Tyler for over 23 years and strives to make a difference in our community each and every year by working to educate and encourage citizens to actively participate in improving the sustainability of the City of Tyler. KTyB is proud to be supported and affiliated on a national level by Keep America Beautiful and on a state level by Keep Texas Beautiful. Keep Texas Beautiful awards qualified affiliates each year based on their efforts, in three different categories: Good Standing, Silver Star Affiliate, and Gold Star Affiliate. This year, during the Keep Texas Beautiful statewide conference in Georgetown, KTyB was awarded their 12 th consecutive Gold Star Affiliate Award for the board s continuous efforts in beautification, litter reduction, maintaining positive partnerships with local organizations, educating our youth, and strong participation in events. We have various programs that focus on each aspect of our mission. Beauty and the Box: A collection of 28 traffic boxes wrapped with art designed by local artists. This beautification program is now fully funded by sponsors. Tyler Against Graffiti: Graffiti abatement program that strives to cover up graffiti within 72 hours of being reported. Since the beginning of 2018, Tyler Against Graffiti has covered up 460 tags. Beauty and Business Award: Local businesses recognized quarterly for the appearance of their building and landscaping, being litter-free, maintaining a neat and clean dumpster area and having attractive signage. Adopt-A-Spot: Citizens/Organizations/Business adopt sections of our roadways and parks and pledge to clean these areas a minimum of four times a year. Currently, 38 miles of our roadways and 110 acres of seven parks are adopted. Tyler Junior College, Texas College and the University of Texas at Tyler also recently adopted their campuses. These adopted campuses cover 421 acres of our beautiful city. Great Tyler Cleanup: Partnering with the Great American Cleanup, this annual cleanup is our biggest event and continues to grow every year. This year we had 508 volunteers give their time to clean up over 7,100 pounds of trash across Tyler. We also received $3,850 in monetary funds and over $1,200 worth of in-kind donations to support this event.

24 Agenda Number: A-1 Page: 2 of 3 Earth Day: Partnering with Caldwell Zoo, KTyB helped to educate children and their parents on environmental issues and how they can make a positive impact in our community. Tyler Recycles Day: In conjunction with America Recycles Day, every November KTyB hosts this event directly from the Downtown Collection Center to help promote the center, as well as to educate the public regarding recycling. This year we collected 16,000 pounds of recyclables. Tours of our Downtown Collection Center: Educate citizens with our process and how to utilize the collection center. This year we had approximately 160 visitors come through the center and tour. Paint Collection Day: Thanks to a grant from the East Texas Council of Governments for $12,000 and help from the Solid Waste Department, KTyB hosted their bi-annual Paint Collection Day in May. During this event, we diverted 1132 gallons of latex and oil based paint from the landfill. Arbor Day: Keep Tyler Beautiful partners with the Tyler Trees Committee to host Arbor Day each year. In 2018, we hosted four Arbor Day events: a tree planting at UT Tyler, Tyler Pounds Regional Airport, and Tyler Junior College and a seedling giveaway of 4,000 seedlings. Approximately 1,300 volunteers helped us plant 200 trees at these events. Park Service Day: KTyB is hosting Park Service Day again on September 15. KTyB first held this event in 2017 to complete park improvement projects at seven of our north Tyler parks. We had a great turnout of 220 volunteers and received over $1500 in donations for the event. This year s highlights also include the following: KTyB created a Youth Advisory Board in 2017 to bring together the youth from the local high schools and colleges, in hopes to grow our connection with the youth and increase their involvement in environmental efforts. We currently have 16 members of this committee. KTyB was awarded the Lowe s Community Partner grant in the amount of $20,000 from Keep America Beautiful. These funds will go towards to repurpose of Gassaway Park. KTyB started participating in the nationwide Cigarette Litter Prevention Program in 2017 thanks to a $5,000 grant from Keep America Beautiful. KTyB received this grant again this year to help continue to program. The funds from this grant go towards purchasing public ash receptacles and advertising the issues with cigarette butt litter. Our efforts in 2017 reduced cigarette butt litter in the downtown area by 69 percent. We hope to further decrease cigarette butt litter throughout Tyler as we continue this program. Keep Tyler Beautiful helped host the Downtown Heart Hunt in February 2018 as a part of the Hit the Bricks-2 nd Saturdays to help promote the walkability and historical significance of our Downtown Area. During this event, nine teams raced around the downtown area on a scavenger hunt based on historical places and landmarks in the area. NET Health is looking to partner with KTyB to host this event again in February The KTyB Board worked hard during 2017 to revamp our Project Daffodil bulb sale that was very popular with our community in the past. Project Daffodil is a beautification project that also serves as a fundraiser for the Keep Tyler Beautiful program. Daffodil bulbs will available for pre-order starting August 27 and will close on September 24. Bulb distribution will be on November 17 as a part of our Tyler Recycles Day event.

25 Agenda Number: A-1 Page: 3 of 3 We recognize that we could not achieve everything that we do without the support we get from our City leaders and our committed board members. We are extremely honored to be able to help make Tyler a place we are all proud to call home. RECOMMENDATION: It is recommended that City Council accept the Gold Star Affiliate Award from Keep Texas Beautiful. Drafted/Recommended By: Department Leader Stephanie Franklin, Managing Director Edited/Submitted By: City Manager

26 CITY OF TYLER CITY COUNCIL COMMUNICATION Agenda Number: O-1 Date: September 12, 2018 Subject: Request that the City Council consider adopting an Ordinance amending and updating fees and other applicable adjustments to Tyler City Code Chapter 8 relating to Parks, Chapter 12 regarding Transit, Chapter 16 relating to Solid Waste Disposal Regulations, and Chapter 19 relating to Water and Sewer. Page: 1 of 2 Item Reference: Tyler City Code Chapter 8, Article V, Chapter 12, Chapter 16, Article I, Chapter 19 Pursuant to the proposed Fiscal Year Budget, it is recommended that the following applicable changes, fees, and rate adjustments be adopted. Chapter 8 Parks, Article V. Fees The City of Tyler Parks Department is recommending various changes to fees related to the Rose Garden and Goodman Museum Facilities. Also, Parks is requesting to implement a $25 fee for staff who have to be on site during events at Parks facilities. These increases are an attempt to recover partially the costs of providing these services. The changes are outlined in the attached ordinance. Chapter 12 Airport and Transit The City of Tyler Transit Department is recommending various changes to fees related to Transit Services, as well as establishing certain fees related to Transit Advertising. These amendments are an attempt to recover partially the costs providing these services. The changes are outlined in the attached ordinance. Chapter 16 Solid Waste Disposal Regulations The Solid Waste Department is recommending various changes and additions to the fees charged for the Fiscal Year. There will be a $0.32 increase to the residential collection fee. Also, there will be a $0.75 increase to Subscription Curbside Recycling. These and other changes are outlined in the attached ordinance.

27 Agenda Number: O-1 Page: 2 of 2 Chapter 19 Utilities The Water Department is recommending various changes and additions to the fees charged for water and sewage for the Fiscal Year. The base rates for both water and sewer will increase by $1.00. Also, the Regulatory Compliance fee will be increased by $1.61. Finally, the amounts of Tap and Meter fees are being increased times previous amounts based on tap size. All of the above increases are an attempt to recover partially the costs of providing these services. These and other changes are outlined in the attached ordinance. RECOMMENDATION: It is recommended that the City Council adopt the attached Ordinance amending and updating fees and other applicable changes to Tyler City Code Chapter 8 relating to Parks, Chapter 12 relating to both Transit Services and Advertising, Chapter 16 relating to Solid Waste Disposal Regulations, and Chapter 19 relating to Water and Sewer. Drafted/Recommended By: Department Leader Keidric Trimble, Chief Financial Officer Edited/Submitted By: City Manager

28 ORDINANCE NO. O AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TYLER, TEXAS, AMENDING CHAPTER 8, PARKS, CHAPTER 12, AIRPORT AND TRANSIT, CHAPTER 16 SOLID WASTE DISPOSAL REGULATIONS, AND CHAPTER 19 UTILITIES, OF THE CODE OF ORDINANCES OF THE CITY OF TYLER, TEXAS; AMENDING AND UPDATING VARIOUS FEES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, various fees for services are established in the City Code; and WHEREAS, it is important for the City Council to update and revise various fees in the City Code; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF TYLER, TEXAS; PART 1: That Tyler City Code Chapter 8, Parks, Article V, Fees, is hereby amended by deleting current Table of Fees in Section 8-74 in its entirety, and adopting a new Table in Section 8-74 in a new format to read as follows: Sec Rose Garden Center facilities charges. The rates and charges for the use of the Rose Garden Center facilities are as provided in this section. All such rates and charges shall be paid in advance. The rates shall be determined in accordance with the following: ( , ) ( ; ) ( ; 5/9/07) (Ord. No XX; 9/12/18) ROSE GARDEN CENTER FEES NP Non Profit; RR Regular Rate; AHAM Additional Hour After Midnight Non Profit An organization or entity formed for the purpose of serving a purpose of public or mutual benefit other than the pursuit or accumulation of profits, i.e., 501(c)(3) s, schools, religious organizations, governmental organizations. Proof of non profit status is required. All other entities will be charged for profit rates. Room Azalea Day 8 to 5 Monday - Thursday Friday thru Sunday Each Ad. Regular Rate Add. Day Hr Regular Rate $25/hr /min Same as After 2hrs NP Regular 2h/$15 NP $35/hr /min Rate After Add. Day Each Ad. Hr

29 Size: 0 35 Night hrs RR $35/hr /min 2hrs NP $40/hr /min 2hrs RR 1pm- 10pm Damage deposit: $150 $500 Entire Building Mon-Thur 8 am to 10 pm Fri, Sat, or Sun, 8 am to 10pm Friday 5 pm Sunday 5pm Rose Mon-Thur 8 am to 5 pm Mon-Thur Nights 5pm to 10 pm Same as Regular Rate 2h/$25 RR After 2h/$20 NP After 2h/$30 RR AHAM/$50 $40/hr/min Same as 2h Regular $45/hr/min Rate 2h After 2h/$30 AHAM/$50 Each Ad. Regular Rate Add. Day Hr Regular Rate $575 NP $475 $35 $650 RR AHAM/$50 $775 NP $850 RR $1,300 NP $1,400 RR Each Ad. Regular Rate Add. Day Regular Rate Hr $35/hr /min After $50/hr /min Same as 2hrs NP 2h/$25 NP 2hrs NP Regular $45/hr /min After $60/hr /min Rate 2hrs RR 2h/$35 RR 2hrs RR $40/hr /min After Same as 2hrs NP 2h/$30 NP Regular $50/hr /min After Rate 2hrs RR 2h/$40 RR Each Ad. Regular Rate Add. Day Regular Rate Hr Camellia or Bluebonnet Cannot be booked in advance of 10 working days on an hourly basis $175 NP $175 NP n/a $185 NP people/up to 9 $200 RR $200 RR AHAM/$50 $225 RR hr People/up to 9 hr people/9 to 14 hr $200 NP $225 RR $225 NP $250 RR $200 NP $225 RR $225 NP $250 RR n/a $210 NP AHAM/$50 $250 RR $35 $275 NP AHAM/$50 $300 RR Add. Day Each Ad. Hr $700 NP $35 $750 RR AHAM/$5 0 $35 n/a AHAM/$5 Add. Day Same as Regular Rate Add. Day 0 Each Ad. Hr After 2h/ $50 AHAM/$5 0 Each Ad. Hr n/a $185 NP AHAM/$5 $225 RR 0 $210 NP $250 RR $275 NP $300 RR n/a AHAM/$5 0 $35 AHAM/$5 0

30 people/9 to 14 Camellia &Bluebonnet people/up to 9 hr /up to 9 hr / up to 9 hr 351+/up to 9 hr Camellia & Bluebonnet Room people/9-14 hrs people/9-14 hrs people/9-14 hrs 351+ people/9-14 hrs Exhibit Area Entrance Area/Atrium Patio/Deck Rose Garden (outside) $250 NP $275 RR $250 NP $275 RR Regular Rate Add. Day $225 NP $275 RR $250 NP $300 RR $275 NP $325 RR $300 NP $500 RR $225 NP $275 RR $250 NP $300 RR $280 NP $325 RR $300 NP $310 RR Regular Rate Add. Day $300 NP $350 RR $325 NP $375 RR $350 NP $400 RR $375 NP $575 RR $300 NP $350 RR $325 NP $375 RR $350 NP $400 RR $375 NP $575 RR $35 $300 NP AHAM/$50 $350 RR Each Ad. Hr Regular Rate n/a $230 NP AHAM/$50 $300 RR n/a $255 NP AHAM/$50 $325 RR n/a $280 NP AHAM/$50 $425 RR n/a $300 NP AHAM/$50 $525 RR Each Ad. Hr $35 AHAM/$50 $35 AHAM/$50 $35 AHAM/$50 $35 AHAM/$50 $50/event NP $75 event RR n/a n/a AHAM/$50 $50/event NP $/75 event RR n/a n/a AHAM/$50 $50/event NP $75 event RR n/a n/a AHAM/$50 Regular Rate $375 NP $450 RR $400 NP $475 RR $425 NP $575 RR $450 NP $650 RR $75/event NP $100 event RR $75/event NP $100 event RR $75/event NP $100 event RR $75 $125/event NP $150/event RR $75 n/a $150/event NP $175/event RR $35 $300 NP AHAM/$5 $350 RR 0 Add. Day $230 NP $300 RR $255 NP $325 RR $280 NP $425 RR $300 NP $525 RR Add. Day $375 NP $450 RR $400 NP $475 RR $425 NP $575 RR $450 NP $650 RR n/a n/a n/a n/a Each Ad. Hr n/a AHAM/$5 0 n/a AHAM/$5 0 n/a AHAM/$5 0 n/a AHAM/$5 0 Each Ad. Hr $35 AHAM/$5 0 $35 AHAM/$5 0 $35 AHAM/$5 0 $35 AHAM/$5 0 n/a AHAM/$5 0 n/a AHAM/$5 0 n/a AHAM/$5 0 n/a AHAM/$5 0

31 Bag of Ice Caterer Fees (Ord. No ; 9/24/14) Damage Deposit Building Maintenance Fee Alcohol Approved City Cost City Cost 10% of gross(ord. No ; 9/24/14) $150 - $500 Based upon the following factors: (1) type of activity to be conducted on the property, (2) type of past contact the Lessee had with the facility, (3) size of the event, (4) Lessee s insurance coverage Per Day Rose Room $100 Camellia or Bluebonnet Room $150 Camellia and Bluebonnet Room $200 Entire Building $250 No BYOB. Non-Profits must obtain a temporary permit from TABC. Temporary permit must be posted at facility during event and must be on file with Parks Dept. In "Host Provided" events, host may only provide alcohol when guests are invited. Alcohol must be brought in by host at beginning of event Caterer's fee, per event 10% of gross; Caterer's deposit for cleanup and breakage, per event $ $ (Ord. No ; 9/24/14) ROSE GARDEN CENTER FEES NP Non Profit; RR Regular Rate; AHA10PM Additional Hour After 10:00 P.M. Non Profit An organization or entity formed for the purpose of serving a purpose of public or mutual benefit other than the pursuit or accumulation of profits, i.e., 501(c)(3)s, schools, religious organizations, governmental organizations, etc. Proof of non profit status is required. All other entities will be charged for profit rates. Azalea Regular Rate Additional Day Each Add. Hour Day 8 a.m. to 5 p.m. Night 5 p.m p.m. $45 NP $50 RR $68 NP $75 RR Same as Regular Rate Same as Regular Rate n/a AHA10PM /$50 Entire Building Regular Rate Additional Day Each Add. Hour 10% Off Regular Rate/ AHA10PM Monday - Thursday $720 NP Move in/out Days 60% of /$60 8 am to 10 pm $800 RR Regular Rate Fri., Sat., or Sun., 8 a.m. to 10 p.m. $900 NP $1,000 RR 10% Off Regular Rate/ Move in/out Days 60% of AHA10PM /$75

32 Regular Rate Rose Regular Rate Additional Day Each Add. Hour $58.50/hr /min 2hrs Monday - Thursday After 2h/$45 NP NP Same as Regular Rate 8 a.m. to 10 p.m. After 2h/$55 RR $65/hr /min 2hrs RR Fri., Sat., or Sun., 8 a.m. to 10 p.m. After $72/hr /min 2hrs NP Same as Regular Rate $80/hr /min 2hrs RR 2h/$60 NP After 2h/$60 RR Camellia or Bluebonnet Regular Rate Additional Day Each Add. Hour Monday - Thursday $ NP $60 Same as Regular Rate 8 a.m. to 10 p.m. $325 RR Fri., Sat., or Sun., $360 NP $75 Same as Regular Rate 8 a.m. to 10 p.m. $400 RR Camellia &Bluebonnet Regular Rate Additional Day Each Add. Hour Monday - Thursday 8 am to 10 pm $ NP $675 RR AHA10PM /$60 Fri., Sat., or Sun., 8 a.m. to 10 p.m. $675 NP $750 RR AHA10PM /$75 Exhibit Area Regular Rate Additional Day Each Add. Hour Monday - Thursday $90/event NP AHA10PM Same as Regular Rate 8 a.m. to 10 p.m. $100/event RR /$50 Fri., Sat., or Sun., $112.50/event NP AHA10PM n/a 8 a.m. to 10 p.m. $125/event RR /$50 Entrance Area/Atrium Regular Rate Additional Day Each Add. Hour Monday - Thursday $90 NP AHA10PM Same as Regular Rate 8 a.m. to 10 p.m. $100 RR /$50 Fri., Sat., or Sun., $ NP AHA10PM n/a 8 a.m. to 10 p.m. $125 RR /$50 Patio/Deck Regular Rate Additional Day Each Add. Hour Monday - Thursday $90 NP AHA10PM Same as Regular Rate 8 a.m. to 10 p.m. $100 RR /$50 Fri., Sat., or Sun., $ NP AHA10PM n/a 8 a.m. to 10 p.m. $125 RR /$50 Rose Garden (outside) Regular Rate Additional Day Each Add. Hour Monday - Thursday $150 NP 8 a.m. to 10 p.m. $150 RR Same as Regular Rate n/a Fri., Sat., or Sun., $150 NP 8 a.m. to 10 p.m. $300 RR n/a n/a Bag of Ice City Cost Caterer Fees (Ord. No ; 9/24/14) 10% of gross(ord. No ; 9/24/14) Damage Deposit $150 - $500 Based upon the following factors: (1) type of activity to be conducted on the property, (2) type

33 Building Maintenance Fee Alcohol Approved of past contact the Lessee had with the facility, (3) size of the event, (4) Lessee s insurance coverage Per Day Rose Room $100 Camellia or Bluebonnet Room $150 Camellia and Bluebonnet Room $200 Entire Building $250 No BYOB. Non-Profits must obtain a temporary permit from TABC. Temporary permit must be posted at facility during event and must be on file with Parks Dept. In "Host Provided" events, host may only provide alcohol when guests are invited. Alcohol must be brought in by host at beginning of event Caterer's fee, per event 10% of gross; Caterer's deposit for cleanup and breakage, per event $ $ (Ord. No ; 9/24/14) ( , ) ( ; ) ( ; 5/9/07) (Ord. No ; 9/24/14) (Ord. No ; 9/22/15) (Ord. No XX; 9/12/18) PART 2: That Tyler City Code Chapter 8, Parks, Article V, Fees, is hereby amended by amending Sections 8-75, 8-76 and 8-77 to read as follows, and deleting Section 8-82 in its entirety: Sec Goodman Museum. The rates and charges for the use of the Goodman Museum facilities are as provided in this section. All such rates and charges shall be paid in advance. The rates shall be determined in accordance with the following: a. Admission Fee. - A fee of two dollars ($2.00) per person shall be requested for admission to the Goodman Museum. b. Rental Fees. Goodman Museum facilities - $ special event permit fee (this one-time fee shall be charged in addition to the per hour rental charges). (Ord. No ; 9/25/13) $ damage deposit $ per hour rental charge, with a minimum two-hour rental. $50 for each additional hour. $ all day usage (maximum of 8 hours) Goodman Museum Grounds Only - $ special event permit fee only (Ord. No. O-96-53, ) (Ord. No ; 10/27/99) (Ord. No ; 9/25/13) (Ord. No XX; 9/12/18) Sec Special event permit fee; park pavilions and restrooms. Unless otherwise specifically provided, Tthe fee for a special event permit shall be thirtyfive dollars ($35.00). A fee of fifty dollars ($50.00) shall be charged for rental of park pavilions and restrooms. A fee of three hundred dollars ($300.00) per day and a damage deposit of one hundred fifty to five hundred dollars ($ $500.00) shall be charged for rental of the amphitheater at Bergfeld Park. If a special request is needed for the space to be mowed outside of the normal mowing schedule, a fee of $ will be charged. All amplified events will

34 require paid Parks staff at the expense of the PERMITTEE at a ratio of one (1) employee per 300 attendees, at a rate of $25.00 per hour, per employee. (Ord. No. O-96-53, ) (Ord , 9/23/09) (Ord. No ; 9/13/17) (Ord. No ; 9/12/18) Sec Sports tournament field usage fee. A fee of one hundred twenty-five dollars ($125.00) per field shall be charged as a field usage fee for sports tournaments, in addition to the thirty-five dollars ($35.00) special event permit fee described in section 8-76 above. Permits must be completed at least 10 business days prior to the event or an additional fee of $ will be charged. Tournaments are required to have paid Parks staff at the expense of PERMITTEE, at a rate of $25.00 per hour, per employee. (Ord. No. O-96-53, ) (Ord , 9/23/09) (Ord. No ; 7/22/15) (Ord. No ; 9/12/18) Sec LeGrand Grounds recreation area. Reserved. The rates and charges for the use of the LeGrand Grounds and its facilities are governed by Chapter 16, Section 16-21, Fees. ( , 2/8/06) PART 3: That Tyler City Code Chapter 12, Airport and Transit, Article VII., Transit, is hereby amended by amending Section , and adopting a new Section , to read as follows: Sec Tyler Transit fees. There are hereby established fees for the use of specific Tyler Transit services. Bus passes allow customers to ride Tyler Transit buses an unlimited number of times for a 30-day period for one fare. The fees shall be determined in accordance with the following: a. Fares. Fixed Route $1.00 Half-fare with proper form of identification (Elderly, Disabled, Medicare & Children under between the age of 5 and 12 years) $0.50 Children 5 years of age and under Free Para-Transit $1.50 b. Bus pass rates. Fixed Route regular rate. $40.00 Half-fare* and Children under the age of 12 years $20.00 Student Monthly Bus Pass $20.00 Day Passes $2.00 per day with limited trips Student Semester Bus Pass (dates designated on the individual pass) (August through December - Fall) $50.00 with unlimited trips (January through May - Spring) $50.00 with unlimited trips (June through August - Summer) $40.00 with unlimited trips

35 *Note: Half-fare rate applies to persons with disabilities who are certified in the Tyler Transit system and who have an identification card, as well as citizens 65 years of age or older. ( , 3/26/08) (Ord. No ; 12/9/09) ( ; 1/13/2010) (Ord. No ; 9/14/11) (Ord. No ; 12/11/13) (Ord. No ; 9/12/18) Sec Reserved Tyler Transit Advertising Fees The following are the fees for advertising on Tyler Transit vehicles. Type of Ad Interior Ads Rear Window Side Window Full Bus Wrap (28' or Less) Full Bus Wrap (Buses Larger than 28') (Ord. No ; 9/12/18) Cost $100 per month plus installation cost. $150 per month plus installation cost. $375 per month plus installation cost. (Includes all windows on one side of the bus.) $800 per month plus installation cost. $900 per month plus installation cost. PART 4: That Tyler City Code Chapter 16, Solid Waste Disposal Regulations, Article I, Solid Waste Disposal Regulations, is hereby amended by amending Section to read as follows: Sec Fees All fees listed in this section are subject to street use fees and sales tax. The following are the fees for collection of solid waste: a. Automated Service for Residential Container Size Number of Containers Trips Per Week Monthly Charge 1. Units 96 gallon wheeled cart included (For household waste only not for brush or yard waste) 1 2 $ tax 2. More than three (3) residential units at one location may be considered commercial. 3. Additional carts are $9.50 per month (Optional) 4. Subscription Curbside Recycling - $ per month for collection every two weeks

36 (Optional) 5. Additional Curbside Recycling Carts - $2.00 per month for collection every two weeks. (Optional) 6. Packout Service Packout Service (up to 150 feet ) - $14.50 per month Packout Driveout Service (over 150 feet ) - $20.50 per month ( , 1/25/06; Ord. No , 5/24/06) (Ord , 9/26/07) (Ord , 9/23/09) (Ord. No , 9/22/10) 7. For Solid Waste customers who do not receive Automated Service for Residential (i.e., do not have carts) -$5.00 per month. This surcharge shall not apply to Packout or Driveout customers. (Ord. No ; 6/23/08) 8. Duplex = 2 units, requires 2 carts (2 x #1 above) $ (Ord , 9/14-11) (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18) b. Commercial, Residential, Public, Education and Religious Institutions: The Director may adjust such rates upward or downward as necessary based on market conditions. Landfill fees, gate rates, and other costs resulting from local, state or federal solid waste regulations charged to the City shall be passed through and added to the following rate schedules on the effective date of such regulations. Effective January 1, each year, the maximum rate will be adjusted by the Consumer Price Index for all Urban Consumers (CPI-U) for all goods and all services. CPI adjustments will be based upon the National average at the close of each December September of each year and the affective rate will be established at October January 1st of each year. (Ord. No ; 9/12/18) Subsections 1. Through 4. and Tables. No changes c.through d. No changes e. Fuel Recovery Fee. To recover the increase in fuel costs associated with solid waste collection by Solid Waste Department vehicles, a fuel recovery fee is hereby established. Said fee shall be adjusted monthly, and shall be based upon adding.05 percent (.05%) for every cent that the average price of diesel fuel rises above $2.50 per gallon, or decreasing by.05 percent (.05%) for every cent that the average price of diesel fuel decreases but remains above $ per gallon. (Ord , ) (Ord. No , 10/22/03) (Ord. No , ) (Ord , 9/26/07) (Ord. No ; 6/23/08) (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18) PART 5: That Tyler City Code Chapter 19, Utilities, Article III., Water & Sewer Service, Division C., Rates, is hereby amended by amending Sections 19-60, 19-64, 19-65, 19-66, 19-68, and 19-69, to read as follows:

37 Sec Water service rates. a. There is hereby established a minimum monthly water use charge based upon the size of the water meter installed as follows: MIMIMUM MONTHLY RATES INSIDE CITY Meter size (in.) October 1, / / MINIMUM MONTHLY RATES OUTSIDE CITY Meter size (in.) October 1, / /

38 (Ord , ) ( , ) ( ; ) ( ; 9/24/08) ( , 12/10/08) (Ord ; 9/23/09) (Ord. No , 9/22/10) (Ord , 9/12/12) (Ord. No ; 9/24/14) (Ord. No ; 9/22/15) (Ord. No. O ; 9/14/2016) (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18) b. Subject to the minimum monthly charges as provided in subsection a. above, the following rates per month shall be charged for water furnished: CHARGE (per 1,000 gallons): Volume Volume Charge Inside City (per 1k gal) Volume October 1, First 2k Min Next 23k 3.24 Next 975k Next 4mil Over 5mil Volume Volume Charge Outside City (per 1k gal) Volume October 1, First 2k Min Next 23k 4.86 Next 975k Next 4mil Over 5mil

39 (Ord , ) ( , ) ( ; ) ( ; 9/24/08) (Ord ; 9/23/09) (Ord. No , 9/22/10) (Ord , 9/12/12) (Ord. No ; 9/24/14) (Ord. No. O ; 9/14/2016) (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18) c. The monthly charge for private fire protection service shall be as follows: FIRE LINE FEE Size (in) October 1, A B C D E ( , ) ( ; ) (Ord ; 9/23/09) (Ord. No , 9/22/10) (Ord , 9/12/12) (Ord. No ; 9/24/14) (Ord. No. O ; 9/14/2016) (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18) d. through e. No changes SCHEDULE OF WATER TAP AND METER ACTIVATION FEES Size Tap and Meter Activation Branch 1 tap x 5/8 meter " tap x 1" meter ½" tap x 1½" meter " tap x 2" meter The tap fee shall include the cost of a tap and service connection from the main line to the meter location when the total length is fifty (50) feet or less and when installation is not by boring or tunneling under a street or other structure. In such cases, the cost of tap and meter shall be the actual cost of furnishing and installing the tap and meter plus a factor of 1.25 to cover overhead and administrative cost. This cost includes all labor, materials and equipment necessary to make the tap, run the service line and set the meter. Where the water tap has been installed according

40 to Division standards by an approved water and sewer contractor, the following schedule shall determine the fee for furnishing the box and meter and installing the meter, said fee being payable in advance. Size of Existing Tap Meter Size Meter Activation Fee 3/4" 5/8" " 5/8" " 1" ½" 1½" " 2" Ord , ) ( ; ) ( ; 9/24/08) (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18) For sizes other than those shown above, the actual cost of furnishing and installing the tap and meter shall be charged time plus a factor of 1.25 to cover overhead and administrative cost. This cost includes all labor, materials, and equipment necessary to make the tap, run the service line, and set the meter. By permission of the Director, water services three (3) inches and larger may be constructed by an approved contractor. Meter pits for three-inch and larger meters will be constructed by the customer own sole expense per Division specifications. Where the tap and meter is existing and a customer desires a larger tap and meter, a credit based on the following schedule will be allowed for the existing meter and box. Size of Meter (inches) Credit Allowed 5/8 $ ½ f. through g. No changes Sec Sewer service rates. a. The following rates per month shall be charged for sanitary sewer service furnished to the users or customers receiving City sanitary sewer services. In calculating the monthly service charge, the rates shall be applied to the volume of water used as measured by the consumer's

41 water meter, except that water usage subject to charges for sanitary sewer service to singlefamily residences, duplexes, apartment houses, townhouses, condominiums, and mobile home parks shall not exceed ten thousand (10,000) gallons per single-family residential unit monthly. Rates to commercial, governmental and institutional customers will be based on monthly water use subject to customer proof of lower sewage discharged. If the customer is not supplied water by City, the volume of water used shall be determined by metering or measuring devices acceptable to the Division. RESIDENTIAL AND COMMERCIAL SEWER RATES MINIMUM MONTHLY RATES INSIDE CITY Meter size (in.) October 1, / / MINIMUM MONTHLY RATES OUTSIDE CITY Meter size (in.) October 1, / /

42 Ord , ) ( , ) ( ; ) ( ; 9/24/08) (Ord ; 9/23/09) (Ord. No , 9/22/10) (Ord , 9/12/12) (Ord. No ; 9/25/13) (Ord. No ; 9/24/14) (Ord. No ; 9/22/15) (Ord. No. O ; 9/14/2016) (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18) b. Subject to the minimum monthly charges as provided in subsection a. above, the following rates per month shall be charged for sewer service based on water consumption below: VOLUME Volume Charge Inside City (per 1k gal) Volume October 1, First 2k Min. Next 23k 2.67 Next 975k Next 4mil Over 5mil VOLUME Volume Charge Outside City (per 1k gal) Volume October 1, First 2k Min. Next 23k 4.01 Next 975k

43 Next 4mil Over 5mil In calculating the monthly rates and charges hereunder for apartment houses, townhouses, condominiums, mobile home parks under single ownership and other buildings designed for or occupied by three (3) or more families, every separate living unit therein shall be considered a separate user or customer receiving services rendered by the City's sanitary sewer system. (Ord , ) ( ; ) ( ; 9/24/08) (Ord ; 9/23/09) (Ord. No , 9/22/10) (Ord , 9/12/12) (Ord. No ; 9/25/13) (Ord. No ; 9/24/14) (Ord. No. O ; 9/14/2016) (Ord. No ; 9/13/17) (Ord. No ; 9/12/18) c. through d. No changes Sec Sewer tap and activation fees. a. Sewer tap fee. Installation of sewer connections (taps) and service connections from the main to the property line or point of user connection shall be performed only by Division employees or a contractor approved by the Director. The following charge shall be made for sewer connections, payable in advance: Sewer Tap Fee Size of Service Charge 4-inch $ $ ( ; ) ( ; 9/24/08) (Ord. No , 2/11/09) (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18) b. Activation fee. The tap fee shall include the cost of a tap and service connection from the main to the property line when the total length is fifty (50) feet or less and when installation is not by boring or tunneling under a street or other structure. In such cases the cost of tap and service shall be the actual cost of furnishing and installing the tap and service line plus a factor of 1.25 to cover overhead and administrative cost. Sewer services six (6) inches and larger will require an approved manhole at the junction with the main. The charge for six (6) inch and larger service connection will be the actual cost of construction including labor, equipment, materials and street restoration, times a factor of 1.25 to cover overhead and administrative costs. By permission of the Director, sewer services six (6) inches and larger may be constructed by an approved contractor. It is the responsibility of the property owner to maintain the sewer service from the sewer main to and on owners' property, including the connection to the sewer main. In addition to the sewer tap fee, there shall be payable in advance a sewer activation fee. The following fees shall be charged:

44 Size of Service Charge 4-inch $ inch and larger $26.50 The Director may allow the construction of a single service connection to service two properties using a y at the joint property line. The Division shall be responsible for maintenance of that portion of service line extending from the main to the y located at the joint property line.(ord. No. O-96-54, ) (Ord. No , ) (Ord , ) ( ; 9/24/08) (Ord. No , 2/11/09) Sec Sewer utility industrial rates. a. Calculation based on water used. The City sewer utility industrial rate is calculated by adding the minimum bill which is based on the size of water meter, plus the volume of water used over the minimum, plus a surcharge calculated for any extra strength waste discharged into the system. TABLE (A1) MINIMUM MONTHLY RATES INSIDE CITY Meter size (in.) October 1, / /

45 MINIMUM MONTHLY RATES OUTSIDE CITY Meter size (in.) October 1, / / (Ord , ) ( , ) ( ; ) ( ; 9/24/08) (Ord ; 9/23/09) (Ord. No , 9/22/10) (Ord , 9/12/12) (Ord. No ; 9/25/13) (Ord. No ; 9/24/14) (Ord. No ; 9/22/15) (Ord. No. O ; 9/14/2016) (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18) TABLE (A2) VOLUME CHARGE FOR WATER USED¹ (per 1,000 gallons): Volume Charge Inside City (per 1k gal) Volume October 1, First 2k Min Next 998k Next 4mil Over 5mil

46 Volume Charge Outside City (per 1k gal) Volume October 1, First 2k Min. Next 998k Next 4mil Over 5mil SURCHARGE FOR EXTRA STRENGTH DISCHARGE Based on water used at $ per mg/1 per 1,000 gallons October 1, BOD COD TSS (Ord , ) (Ord , ) ( ; ) ( ; 9/24/08) (Ord ; 9/23/09) (Ord. No , 9/22/10) (Ord , 9/12/12) (Ord. No ; 9/25/13) (Ord. No ; 9/24/14) (Ord. No. O ; 9/14/2016) (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18) b. Calculation based on sewage disposal. The City sewer utility industrial rate is calculated by adding the minimum bill which is based on the size of the water meter [see TABLE (A1) above, plus the volume of sewage discharged over the minimum, plus a surcharge calculated for any extra strength waste discharged into the system. TABLE A3 VOLUME CHARGE FOR SEWAGE DISCHARGED² (PER 1,000 GALLONS) October 1, Gallons Inside City Outside City First 2,000 Minimum Minimum Next 998, Next 4,000,

47 Over 5,000, SURCHARGE FOR EXTRA STRENGTH DISCHARGE Based on sewage discharged $ per mg//1 per 1,000 gallons October 1, BOD COD TSS (Ord , ) (Ord , ) ( ; ) ( ; 9/24/08) (Ord ; 9/23/09) (Ord. No , 9/22/10) (Ord , 9/12/12) (Ord. No ; 9/25/13) (Ord. No ; 9/24/14) (Ord. No. O ; 9/14/2016) (Ord. No ; 9/13/17) (Ord. No ; 9/12/18) c.through f. No changes Sec Reclaimed irrigation water. Where infrastructure is available and upon authorization by the Director, customers may contract with the utility for the purchase of reclaimed water for irrigation purposes only. a. Monthly minimum Meter Size Inside City Outside City 1-inch b. Rate per 1000 gallons. Gallons Inside City Outside City First 2k Min. Min. Over 2k ( ; ) ( ; 9/24/08) (Ord. No , 2/11/09) (Ord ; 9/23/09) (Ord. No , 9/22/10) (Ord. No ; 9/24/14) (Ord. No ; 9/22/15) (Ord. No. O ; 9/14/2016) (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18)

48 Sec Upon each active water and sewer account there is imposed a monthly Regulatory Compliance Fee surcharge. Revenues from this surcharge shall be used to assist in paying debt service resulting from the issuance of new debt to fulfill regulatory compliance from unfunded mandates. This surcharge shall be based on the pro-rated cost of said debt applicable to each account. The initial fee and any adjustments to the fee shall be approved by City Council. Effective Date Inside City Outside City Octovber 1, $1.28 $2.89 $1.28 $2.89 (Ord. No ; 9/13/17) (Ord. No XX; 9/12/18) PART 6: That if any provision or any section of this ordinance shall be held to be void or unconstitutional, such holding shall in no way affect the validity of the remaining provisions or sections of this ordinance, which shall remain in full force and effect. PART 7: That any person, firm, or corporation violating any of the provisions of this ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine as provided in Section 1-4 of the Tyler Code. Each day such violation shall continue, or be permitted to continue, shall be deemed a separate offense. Since this ordinance has a penalty for violation, it shall not become effective until its publication in the newspaper as provided by Section 85 of the Charter of the City of Tyler, Texas, or later. The effective date of this Ordinance shall be October 1, PASSED AND APPROVED this 12th day of September, A. D., MARTIN HEINES, MAYOR OF THE CITY OF TYLER, TEXAS ATTEST: APPROVED: CASSANDRA BRAGER, CITY CLERK DEBORAH G. PULLUM, CITY ATTORNEY

49 CITY OF TYLER CITY COUNCIL COMMUNICATION Agenda Number: O-2 Date: September 12, 2018 Subject: Request that the City Council consider adopting the Fiscal Year proposed budget ordinance, Fiscal Year budget amendments, and authorize the City Manager to execute the outside agency contracts for Fiscal Year Page: 1 of 3 Item Reference: Refer to the City of Tyler Charter, State of Texas Tax Code Chapter 26 and Local Government Code Chapter 102 concerning Truth-In Taxation and budgeting for municipalities. Fiscal Year Budget Adoption The proposed annual budget for the City of Tyler for the fiscal year beginning October 1, 2018 and ending September 30, 2019 is submitted to the City Council for adoption. During reviews of the proposed Fiscal Year Annual Budget, the City Council was briefed on recommended appropriation levels that established General Fund revenues at $69,041,247 and expenditures at $66,251,872 and transfers to other funds of $2,789,375 with an estimated 15 percent operating reserve of $9,937,781. A public hearing on the proposed budget and tax rate was conducted on August 22 and August 29, 2018 to satisfy local and state law requirements for the adoption of the Fiscal Year Annual Budget. The hearings provided an opportunity for citizens to ask questions and to comment on the proposed tax rate. The attached budget ordinance also includes revenues and expenditure appropriations for all other funds as proposed by the City Manager plus authorization for the City Manager to execute outside agency contracts as enumerated (subject to final negotiation of terms and conditions). Fiscal Year Budget Amendments The attached ordinance also amends the current fiscal year budget. City staff is requesting to amend the General Fund budget in order to transfer a portion of its fund balance to the General Capital Projects funds to help fund capital expenditures for Fiscal Year Next, a portion of the General fund balance will be transferred to the Street Improvement fund to help fund additional street improvement expenditures in Fiscal Year Next, a portion of the General fund balance will be transferred to the Property, Liability, Disability & Workers Compensation fund to help rebuild risk reserves in Fiscal Year Finally, a portion of the General fund balance will be transferred to the Property and Facilities fund to help with the costs of the replacement of the Library roof in Fiscal Year 2019.

50 Agenda Number: O-2 Page: 2 of 3 Public Hearing and Sequence of Adoption of Budget State Law requires that: 1 st the City Council hold a public hearing on the proposed budget 2 nd a record vote be taken on the proposed budget, and 3 rd a separate record vote be taken to ratify the property tax increase that is reflected in the budget. RECOMMENDATION: 1. It is recommended that City Council Conduct a Public Hearing. 2. It is recommended that the City Council adopt the budget by: Taking a record vote to adopt the proposed Fiscal Year Annual Budget, adopt the Fiscal Year budget amendments, and authorize the City Manager to execute particular outside agency contracts budgeted for Fiscal Year ; RECORD VOTE BY: District 1 Council Member Linda Sellers District 2 Council Member Broderick McGee District 3 Council Member Ed Moore District 4 Council Member Don Warren District 5 Council Member Bob Westbrook District 6 Council Member John Nix Mayor Martin Heines Aye or No Aye or No Aye or No Aye or No Aye or No Aye or No Aye or No AND 3. It is also recommended that the City Council adopt the budget by: Taking a record vote to ratify the property tax increase reflected in the Fiscal Year budget. RECORD VOTE BY: District 1 Council Member Linda Sellers District 2 Council Member Broderick McGee District 3 Council Member Ed Moore District 4 Council Member Don Warren District 5 Council Member Bob Westbrook District 6 Council Member John Nix Mayor Martin Heines Aye or No Aye or No Aye or No Aye or No Aye or No Aye or No Aye or No

51 Agenda Number: O-2 Page: 3 of 3 Drafted/Recommended By: Department Leader: Keidric Trimble, Chief Finance Officer Edited/Submitted By: City Manager

52 ORDINANCE NO. O AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TYLER, TEXAS, ADOPTING THE BUDGET FOR THE CITY OF TYLER, TEXAS, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2018, AND ENDING SEPTEMBER 30, 2019; AMENDING THE FISCAL YEAR BUDGET; AND AUTHORIZING THE CITY MANAGER TO EXECUTE OUTSIDE CONTRACTS FOR FISCAL YEAR ; PROVIDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, pursuant to the laws of the State of Texas and the Charter of the City of Tyler, the City Manager of Tyler prepared a budget covering proposed expenditures for the next fiscal year and caused the same to be published as required by law; and WHEREAS, a public hearing was held by the City Council of the City of Tyler, Texas, on said proposed budget and tax rate on August 22 and August 29, 2018 after compliance with all notice requirements and at which time said budget was fully considered, and interested taxpayers were heard; and WHEREAS, City Council affirms its policy of seeking to maintain a minimum operating reserve (net of transfers and capital expenditures) equal to 15% of the budgeted expenditures for the General Operating Fund, Water Utilities Operating Fund and the Solid Waste Operating Fund; and WHEREAS, City Council affirms the budget and financial policies that have been approved by ordinances and administrative actions; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF TYLER, TEXAS: PART 1: That the budget summary below originally proposed by the City Manager is hereby approved and appropriated as the Official Annual Budget(s) covering the City of Tyler for and during the fiscal year beginning October 1, 2018 and ending September 30, 2019, and expenditures by said City for and during such time shall be on the basis of said budget. Fund COMBINED STATEMENT OF REVENUES AND EXPENDITURES- ALL FUNDS Fiscal Year Opening Balance Revenues Expenditures Transfers In / (Transfers Out) Closing Balance Ending Bal % of Exp. 101 General 11,462,201 69,041,247 66,251,872 (2,789,375) 11,462,201 17% 102 General Capital Projects 349,849 41, ,869 56,510 13, Street Improvements 94,626 2, , , Development Services 739,047 1,683,516 1,769,765 (30,900) 621, Cemeteries Operating (3,543) 85, , ,462 53, Police Forfeitures 254, , , , Court Special Fees 161, , ,894 (5,434) 35, TIF/TIRZ # 2 2, , Motel Tax 5,168,092 3,600,463 1,251,950 (1,825,000) 5,691,605

53 218 TIF/TIRZ # 3 308,568 94,218 5, , Tourism and Convention 687, ,880 2,446,397 1,764, , Passenger Facility 151, ,500 - (286,000) 101, Oil and Natural Gas 2,981, , ,000-3,007, PEG Fee 839, , ,850 (32,015) 928, Fair Plaza 51,678 16,307 47,514-20, Homeownership and Housing Housing Assistance 381,126 8,090,690 8,067, , MPO - 447, , Transit System 179,190 4,174,858 4,572, , , Community Development Grant 29, , ,446-29, Home Grant 318, , , , Utilities Operations 7,364,419 40,413,019 30,532,926 (10,576,961) 6,667,551 22% 503 Utilities Construction 8,467,381 25,000 9,641,635 5,000,000 3,850, Utilities Debt Service 1,436,283 1,196,620 5,706,880 4,724,132 1,650, Utilities Debt Reserve Airport 542,025 1,409,742 1,630, , , Solid Waste 2,402,593 13,681,873 11,749,100 (1,772,040) 2,563,326 22% 562 Solid Waste Capital 387,893 4,000 1,583,807 1,300, , Storm Water 1,202,313 1,851,610 1,861,000 (14,176) 1,178, Productivity 140,641 2,800 1,922,081 1,856,915 78, Fleet Maintenance/Replacement 5,324,178 10,356,681 10,952,543 (83,724) 4,644, Property and Liability 1,413,262 1,847,502 2,391,861 (4,510) 864, Active Employees Benefits 1,787,451 11,471,942 10,728,091-2,531, Facilities Maintenance 1,082, ,273 1,124, , , Technology 504,393 4,412,306 5,468, , , Cemeteries Trust 2,993,429 62,000 - (30,000) 3,025, Retired Employees Benefits 179,004 3,867,318 3,970,786-75,536 PART 2: The City Manager is authorized to execute contracts and make payments to the following list of entities in the amounts shown; subject to final contract negotiation regarding terms and conditions: ACCOUNT AGENCY/SERVICES AMOUNT Innovation Pipeline 140, Northeast Texas Public Health District (NETPHD) 200, East Texas Council of Governments 14, Center For Healthy Living 66, Smith County Tax Assessor-Collector (estimation) 40, Smith County Appraisal District (estimation) 291, Business Education Council 15, Metro Chamber of Commerce 25, Hispanic Business Alliance 25, Tyler Economic Development Council 100, Texas Rose Festival 9,000

54 Discovery Science Place 32, East Texas Symphony Orchestra 35, Tyler Museum of Art 35, Smith County Historical Museum 13, Convention and Visitors Bureau 700, Tyler Civic Theater 4, McClendon House 4, Historic Aviation Museum 13, Sports Tyler Award 25,000 PART 3: That the fiscal year budgets for General, General Capital, Street Improvement, Property, Liability, Disability, & Workers Compensation, and Property & Facilities funds will be amended to include the following budget changes: Account Number Fund Account Name Current Budget Change Revised Budget General Transfer to Fund , , , General Transfer to Fund ,941 94, , General Transfer to Fund , , , General Insurance (F 650) 133, , , General Capital Transfer from Fund , , , Street Improvement Transfer from Fund ,941 94, , Property, Liability, Disability, & Workers Compensation Fund Property Liability Insurance Premium 807, ,000 1,557, Property and Facilities Management Transfer from Fund , , ,305 PART 4: That any ordinance, resolution, policy or any provision or section of the Code of the City of Tyler, Texas, as amended in conflict herewith, be and the same is hereby repealed to the extent of any conflict. PART 5: Should any section, subsection, sentence, provision, clause or phrase be held to be invalid for any reason, such holding shall not render invalid any other section, subsection, sentence, provision, clause or phrase of this ordinance and same are deemed severable for this purpose. PART 6: This ordinance shall become effective upon approval. PASSED AND APPROVED this the 12th day of September, A.D., MARTIN HEINES, MAYOR OF THE CITY OF TYLER, TEXAS ATTEST: CASSANDRA BRAGER, CITY CLERK APPROVED: DEBORAH G. PULLUM, CITY ATTORNEY

55 CITY OF TYLER CITY COUNCIL COMMUNICATION Agenda Number: O-3 Date: September 12, 2018 Subject: Request that the City Council consider adopting the property tax rate ordinance of $ cents per $100 valuation for Fiscal Year Page: 1 of 2 Item Reference: Refer to the City of Tyler Charter, State of Texas Tax Code Chapter 26 and Local Government Code Chapter 102 concerning Truth-In Taxation and budgeting for municipalities. Fiscal Year Tax Rate Adoption The total proposed Fiscal Year property tax rate of $ per $100 valuation is greater than the effective tax rate of $ per $100 valuation and equal to the roll back tax rate of $ The proposed property tax rate is exclusively for General Fund maintenance and operations (no debt service) and for the Street Improvement Fund. It is City Council s intent to dedicate the one cent for the Street Improvement Fund. A public hearing on the proposed budget and property tax rate was conducted on August 22, 2018 and on August 29, 2018 to satisfy local and state law requirements for the adoption of the Fiscal Year property tax rate. A Notice of Tax Revenue Increase was published in the local paper. The hearings provided an opportunity for citizens to ask questions and to comment on the proposed tax rate. Sequence of Adoption State Law requires that the adoption of the tax rate occurs after the adoption of the proposed annual budget. RECORD VOTE BY: District 1 Council Member Linda Sellers District 2 Council Member Broderick McGee District 3 Council Member Ed Moore District 4 Council Member Don Warren. District 5 Council Member Bob Westbrook District 6 Council Member John Nix Mayor Martin Heines Aye or No Aye or No Aye or No Aye or No Aye or No Aye or No Aye or No

56 Agenda Number: O-3 Page: 2 of 2 RECOMMENDATION: It is recommended that the City Council take action to approve an ordinance setting the tax rate for Fiscal Year Pursuant to Truth in Taxation laws, a motion must be made in the following form: I move that the property tax rate be increased by the adoption of a tax rate of $ cents per $100 dollars of appraised value, which is effectively an 8.0 percent increase in the tax rate. Drafted/Recommended By: Department Leader: Keidric Trimble, Chief Financial Officer Edited/Submitted By: City Manager

57 ORDINANCE NO. O AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TYLER, TEXAS, APPROVING THE ASSESSMENT ROLL AND FIXING THE AD VALOREM TAX RATE FOR THE CITY OF TYLER, TEXAS, FOR FISCAL YEAR , AND PROVIDING FOR THE ASSESSMENT AND COLLECTION THEREOF AND FOR A LIEN ON REAL AND PERSONAL PROPERTY TO SECURE PAYMENT OF AD VALOREM TAXES; PROVIDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF TYLER, TEXAS: PART 1: The assessment roll for 2018 for the City of Tyler as compiled by Smith County Appraisal District and as amended by the Appraisal Review board is hereby approved and adopted. PART 2: That there be and there is hereby levied and ordered collected the sum of $ ad valorem tax on each One Hundred Dollar ($100) valuation of all taxable property, real, personal and mixed, within the corporate limits of the City of Tyler, Texas, on January 1st of this year, for the following purposes and the following amounts: General Fund maintenance and operations $ TOTAL TAX RATE PER $ VALUATIONS FOR ALL PURPOSES PART 3: follows: That there be, and are hereby again set out, authorized exemptions as 1. Homestead exemption under 65 - Ten percent (10%) or no less than $5, Homestead exemption over 65 - $6, Historical Preservation exemptions as set out in Tyler City Code Sections and PART 4: Said ad valorem taxes shall be due and payable at the time and in the manner provided by the Tyler City Code, Chapter 2, relating to the payment of ad valorem taxes which said ordinances provide for penalties and interest on delinquent taxes. PART 5: That notice for the public hearings on the proposed budget, property tax rate, and tax revenue increase, on the 22 rd day of August 2018 and on the 29 th day of August 2018, were given by publication on the 9th day August, The notice for vote on the tax rate and tax revenue increase was published on the 17 th day of August and the 31 st day of August, PART 6: THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 8.0 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $4.45.

58 PART 7: That any ordinance, resolution, policy or any provision or section of the Code of the City of Tyler, Texas, as amended in conflict herewith, be and the same is hereby repealed to the extent of any conflict. PART 8: Should any section, subsection, sentence, provision, clause or phrase be held to be invalid for any reason, such holding shall not render invalid any other section, subsection, sentence, provision, clause or phrase of this ordinance and same are deemed severable for this purpose. PART 9: This ordinance shall become effective upon its approval. PASSED AND APPROVED this the 12 th day of September, A.D., MARTIN HEINES, MAYOR OF THE CITY OF TYLER, TEXAS ATTEST: CASSANDRA BRAGER, CITY CLERK APPROVED: DEBORAH G. PULLUM, CITY ATTORNEY

59 CITY OF TYLER CITY COUNCIL COMMUNICATION Agenda Number: M-1 Date: September 12, 2018 Subject: Request that the City Council consider changing the regular City Council Meeting date of October 10, 2018 to Wednesday, October 3, Page: 1 of 1 Item Reference: Tyler City Code, Section 1-22 The Tyler City Code, Section 1-22 sets out regular City Council meetings on the second and fourth Wednesday of each month. The meetings can be changed as necessary by the City Council. To enable the Mayor and City Councilmembers to attend the Texas Municipal League Annual Conference, it is recommended that the regular City Council meeting on Wednesday, October 10, 2018 be changed to Wednesday, October 3, RECOMMENDATION: It is recommended that the regularly scheduled October 10, 2018 City Council meeting be rescheduled to Wednesday, October 3, Drafted/Recommended By: Department Leader Deborah G. Pullum Edited/Submitted By: City Manager

60 CITY OF TYLER CITY COUNCIL COMMUNICATION Agenda Number: M-2 Date: September 12, 2018 Subject: Request that the City Council consider authorizing the application for and acceptance of Federal Transit Administration (FTA) Grant Funds under the Section 5339 Bus and Bus Facilities Grant in the amount of $93,948 along with the acceptance of 18,790 in Transportation Development Credits (TDC), and request that the City Council consider authorizing the City Manager to direct Transit staff to begin procurement of one heavy duty bus and two medium duty buses with grant funds from a Section 5307 Federal Transportation Administration (FTA) Grant. Page: 1 of 1 Item Reference: Since 1991, the City of Tyler has operated the Tyler Transit System with the assistance of grant funding from the Texas Department of Transportation (TxDOT) and the Federal Transit Administration (FTA). The terms for this Section 5339 grant number (TX ) include the purchase of two support vehicles and related equipment in the amount of $93,948. The local match of $18,790 will be covered in TDC funds for this 5339 grant project. Transit staff plans to utilize approximately $700,000 of Section 5307 grant number (TX ) funds to purchase one heavy duty and two medium duty buses. Transit staff will apply for TDC funds to cover the local match requirement for this purchase also. RECOMMENDATION: It is recommended that the City Council consider authorizing the application for and acceptance of Section 5339 Federal Transit Administration Grant Funds in the amount of $93,948 and $18,790 in Transportation Development Credits. It is also recommended that the City Council consider authorizing the City Manager to direct Transit staff to begin procurement of one heavy duty bus and two medium duty buses with grant funds from a Section 5307 Federal Transit Administration Grant. Drafted/Recommended By: Department Leader Transit Manager Edited/Submitted by: City Manager

61 Agenda Number: M-3 Date: September 12, 2018 CITY OF TYLER CITY COUNCIL COMMUNICATION Subject: Request the City Council consider authorizing the City Manager to sign an Architectural and Aquatic Agreement from The C.T. Brannon Corporation for an amount not to exceed $50,000 to develop architectural and engineering plans for Fun Forest and Woldert Park repurpose projects. Page: 1 of 2 Item Reference: Fun Forest and Woldert Park Repurpose Funds Staff researched various aquatic/park design firms and overall it was determined that The C.T. Brannon Corporation be awarded both upcoming Half Cent repurpose projects for Fun Forest and Woldert Park. The decision was based on the following criteria: Best proposal Years of experience Fee structure To meet the completion date and be open for summer by May 2019 as scheduled, design of the plans needs to begin immediately. The proposal includes all civil and aquatic engineering services for the design of the improvements at both parks as well as preparing all bid documents and oversite of construction for each project. Funding Source: Half Cent Sales Tax Funds RECOMMENDATION: It is recommended that the City Council authorize the City Manager to sign an Architectural and Aquatic Agreement from The C.T. Brannon Corporation for an amount not to exceed $50,000 for Fun Forest and Woldert Park repurpose projects.

62 Agenda Number: M-3 Page: 2 of 2 ATTACHMENTS 1. The C.T. Brannon Corporation proposal specifics for Woldert Park and Fun Forest Park Improvements. 2. The C.T. Brannon Corporation rate charges proposal for professional services provided for Woldert Park and Fun Forest park improvements. Drafted/Recommended By: Department Leader Russ Jackson, Parks & Recreation Director Edited/Submitted By: City Manager

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68 CITY OF TYLER CITY COUNCIL COMMUNICATION Agenda Number: M-4 Date: September 12, 2018 Subject: Request that the City Council consider ratifying a payment to the Texas Department of Transportation, in the amount of $9,201, for the Tyler Bike Stripes project. Page: 1 of 2 Item Reference: City Council Agenda M-3, 5/9/18; R-1, 6/27/18 On June 27, 2018, the City Council authorized the City Manager to enter into an Advanced Funding Agreement (AFA) with the Texas Department of Transportation (TxDOT) that defined the scope of work and resource and funding responsibilities of both TxDOT and the City needed to complete the Tyler Bike Stripes project. The project is being partially funded by the 2017 Transportation Alternatives Set-Aside (TA Set-Aside) Program, which is managed by TxDOT. The City is responsible to pay 100 percent of the costs for engineering and design, which is being performed by members of the Civil Engineering Department at the University of Texas at Tyler, and 20 percent of the construction costs. The remaining 80 percent of the construction costs will be reimbursed to the City. The AFA defines certain tasks that will be performed by local TxDOT staff during the course of the project and the costs to the State for those tasks. The City is responsible to pay 20 percent of these State costs. The first payment, in the amount of $9,201, is due no later than September 15 and has already been paid by staff in order to meet the payment deadline. This payment covers the costs for TxDOT staff to attend meetings and public hearings, to review plans and specifications and for general recordkeeping. Prior to bidding the project, a second and final payment, in the amount of $21,469 will be due to TxDOT for construction related services such as review and approval of bid documents, contract documents and change orders, and for general recordkeeping. The total payments to TxDOT for tasks they perform during the course of this project will be $30,670. FUNDING: Half Cent Sales Tax Fund RECOMMENDATION: It is recommended that the City Council ratify a payment to the Texas Department of Transportation, in the amount of $9,201, for the Tyler Bike Stripes project.

69 Agenda Number: M-4 Page: 2 of 2 Drafted/Recommended By: Department Leader Scott Taylor, P.E., Managing Director of Utilities and Public Works Edited/Submitted By: City Manager

70 Agenda Number: M-5 Date: September 12, 2018 CITY OF TYLER CITY COUNCIL COMMUNICATION Subject: Request that the City Council consider authorizing the City Manager to approve a Reconciliation Change Order and the release of final payment in the amount of $27, to A.E. Shull & Company for the Troup Highway Booster Pump Station project. Page: 1 of 2 Item Reference: City Council Agenda C-A-4, 11/11/15; C-A-3, 1/25/17 On January 25, 2017, the City Council awarded a construction contract in the amount of $3,293, to A.E. Shull & Company for the construction of the Troup Highway Booster Pump Station project. All of the work is now complete and the final value of the completed work is $3,144,018.08, as shown on the attached Reconciliation Change Order. It is recommended that the project be accepted and that the final payment including retainage, in the amount of $27,777.75, be released to the Contractor. A copy of the final pay request including retainage is also attached for review. The project included the construction of a new booster pump station and hydropneumatic tanks at the site of the Troup Highway Standpipe, as well as approximately 7,100 linear feet of 12-inch diameter water main and approximately 30 check valve stations throughout the distribution system in order to create an isolated pressure zone. The booster station will increase water pressure throughout the pressure zone to between 70 and 80 pounds per square inch. This increase should improve water pressure within customers homes or businesses. RECOMMENDATION: It is recommended that the City Council authorize the City Manager to approve a Reconciliation Change Order and the release of final payment in the amount of $27, to A.E. Shull & Company for the Troup Highway Booster Pump Station project. ATTACHMENTS: 1. Reconciliation Change Order 2. Final Pay Request Drafted/Recommended By: Department Leader Scott Taylor, P.E., Managing Director of Utilities and Public Works Edited/Submitted By: City Manager

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73 PROGRESS ESTIMATE KSA 6781 Oak Hill Blvd. Tyler, TX Estimate No.: 16 (Final) Notice to Proceed Date: Contract Time: March 27, Days Date: Project: August 15, 2018 Troup Highway Booster Pump Station % Complete (Time) % Complete ($) 153% 100% Period: From: 7/01/18 To: 7/31/18 Project No: TYL.357 Contractor: A.E. Shull & Company PREVIOUS PAYMENTS AUTHORIZED Address: PO Box , Tyler, TX #1 134, #10 228, Amount of Contract as Awarded: $3,296, #2 114, #11 688, #3 53, #12 197, Change Orders: #4 99, #13 126, # 1 $ (152,589.17) # 6 $ #5 98, #14 19, # 2 $ # 7 $ #6 255, #15 310, # 3 $ # 8 $ #7 419, #16 # 4 $ # 9 $ #8 261, #17 # 5 $ #10 $ #9 106, #18 Total Change Orders: ($152,589.17) Total Payments Total Adjusted Contract: $3,144, Previously Authorized: $3,116, Item No. Description Unit of Meas. Quantity Original Estimate Previous Month's Quantity Current Month's Quantity Quantity Completed To Date Unit Price ($) Value of Completed Work ($) BASE BID 1.01 Mobilization, Insurance, and Bonding LS $30, $30, Barricades, Signs, and Traffic Handling LS $20, $20, Project Sign EA $ $1, Care of Water During Construction LS $2, $2, Stormwater Pollution Prevention LS $1, $1, Erosion Control Measures LS $3, $3, Seed and Fertilize LS $3, $3, Water Line Testing and Sterilization LS $9, $9, Miscellaneous Allowance LS **$0.00 $ Site Work LS $35, $35, Allowance for 1,500 gpm Packaged Triplex Booster LS $567, $567, Pump Station with Hydropneumatic Tanks 2.03 Construct Troup Highway Booster Pump Station LS $123, $123, Site Piping LS $45, $45, Trench Safety LS $ $ Site Asphalt Pavement Drive SY **1,002 1,002 1,002 $41.50 $41, Fence Repair LF ** $35.75 $10, Standpipe and Site Piping Disinfection LS $30, $30, Allowance for SCADA Equipment LS $109, $109, Electrical and Controls LS $191, $191, inch Diameter Ductile Iron Water Line EA 7,100 7,100 7,100 $60.50 $429, Temporary Pavement Repair SY **6,403 6,403 6,403 $24.00 $153, Asphalt Pavement Repair SY **6,403 6,403 6,403 $63.80 $408, Wet Bore & Install 12-Inch Diameter Water Line LF **5 5 5 $ $3, Foundation Material for Trench CY **0 0 0 $78.10 $ Fire Hydrant Assemblies on 12-Inch Diameter Water EA $3, $26, Line 3.07 Concrete Curb and Gutter Repair LF ** $34.50 $8, Tie-In at Station No LS $9, $9, Tie-In at Station No LS $8, $8, Tie-In at Station No LS $9, $9, Tie-In at Station No LS $9, $9, Tie-In at Station No LS $9, $9, Tie-In at Station No LS $7, $7, Tie-In at Station No LS $8, $8, Tie-In at Station No LS $8, $8, Tie-In at Station No LS $8, $8, Tie-In at Station No LS $8, $8, Page 1 of 2 /\\KSA-TLY-SERVER3\projects\Projects\TYL357\05.00 Construction Phase\06 Progress Estimates\PE 16\Troup BPS PE 16.xlsm

74 Item No. Description Unit of Meas. Quantity Original Estimate Previous Month's Quantity Current Month's Quantity Quantity Completed To Date Unit Price ($) Value of Completed Work ($) 3.18 Tie-In at Station No LS $12, $12, inch Diameter Gate Valve Assemblies EA $3, $9, inch Diameter Check Valve Assemblies EA ** $14, $336, inch Diameter Check Valve Assemblies EA $17, $70, inch Diameter Check Valve Assemblies EA $28, $57, th St & Sneed Ave Jumper Water Line LF ** $ $14, th St & Jarrell Ave Jumper Water Line LF $ $7, Clubview Dr & Jackie Ave Jumper Water Line LF ** $ $15, Barbara Ave & Fry Ave Jumper Water Line EA ** $ $15, Abandon Existing Water Valve EA **0 0 0 $ $ Relocate Existing Water Line Service to 12-Inch EA **3 3 3 $1, $3, Diameter Water Line 3.29 Trench Safety LF **7,100 7,100 7,100 $1.55 $11, Excavation Safety for Water Line Tie-ins and Check LS $3, $3, Valve Assemblies 3.31 Concrete Valley Gutter Repair SY ** $89.00 $2, Field Work Order No. 1 WO in PVC Drain Line LF $30.00 $1, WO in Gate Valve for Drain Line EA $1, $1, WO 1.3 Replace Sidewalk SY ** $61.00 $ WO 1.4 Splash Pad (8-ft x70-ft w/ 6-in curb) LF $ $8, WO 1.5 Remove Existing Splash Pad EA $ $ WO 1.6 Remove Existing Building & Slab EA $6, $6, WO 1.7 Remove Extra Trees EA $ $1, WO 1.8 Key Stone Retaining Wall LF $86.04 $27, WO 1.9 Additional Dirt Work LS $6, $6, WO 1.10 Fill Existing Vaults w/sand LS $1, $1, WO 1.11 Repair Chain Link Fence LS $ $ Field Work Order No. 2 WO 2.1 Regrade and Reshape (make ready for topsoil LS $10, $10, installation) WO 2.2 Furnish and Install topsoil (4"-5" depth) LS $137, $137, WO 2.3 Furnish and Install Seed, Fertilize, Lime, Hay, Mulch LS $17, $17, & Crimp WO 2.4 Lake Palestine Erosion Repair LS $2, $2, WO 2.5 Miscellaneous Allowance - Adjust Miscellaneous Allowance by $168, ($244, $168, = $76,118.65) Field Work Order No. 3 WO 3.1 Install New Level Transmitter on Existing Stand Pipe LS $3, $3, WO 3.2 Reprogramming Air Pump House LS $7, $7, WO 3.3 Valve Isolation Work Crew HRS ** $ $8, WO 3.4 Miscellaneous Allowance - Adjust Miscellaneous $0.00 Allowance by $20, ($76, $20, = $55,532.65) *Per Field Work Order No. 1, 2 & 3, ** Per Change Order No. 1 In accordance with the Contract Documents, based on on-site observations and the data comprising the above application, the Engineer represents to the Owner that to the best of the Engineer's knowledge, information and belief, the Work (excluding trench safety) has progressed as indicated, the quality of the Work is in accordance with the Contract Documents, and the Contractor is entitled to payment of the AMOUNT PAYABLE. The Contractor is solely responsible for trench safety and as such, the Engineer makes no representation that this pay item has been performed in a manner consistent with the Contract Documents. KSA ` Total Amount to Date $3,144, By Material on Hand $0.00 $3,144, Date Less 0% Retainage $0.00 Approved: CITY OF TYLER Net Total $3,144, By Date 15 Aug 18 Less Previous Payments $3,116, Amount Payable to Contractor This Estimate $27, Page 2 of 2 /\\KSA-TLY-SERVER3\projects\Projects\TYL357\05.00 Construction Phase\06 Progress Estimates\PE 16\Troup BPS PE 16.xlsm

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78 CITY OF TYLER CITY COUNCIL COMMUNICATION Agenda Number: M-6 Date: September 12, 2018 Subject: Request that the City Council consider authorizing the City Manager to execute a contract with Miller Construction, for the construction of Fleishel Avenue Drainage Improvements project in the amount of $999, Page: 1 of 2 Item Reference: Item C-A-2; December 14, 2016 The Fleishel Avenue Drainage Improvements project is needed to address flooding in the area of Eighth Street and Fleishel Avenue. The project was publicly advertised and bids were opened on August 14, The following bids were received. The engineer s opinion of probable construction cost was $1,200,000. Staff recommends that the contract be awarded to the low bidder Miller Construction. Contractor Base Bid Miller Construction $999, A.E. Shull & Company $1,158, Welch Excavation $1,246, Reynolds & Kay LTD $1,313, AAA Sanitation $1,389, Longview Bridge and Road LTD $1,667, East Texas Bridge Inc. $1,733, Joe Funk Construction $2,211, FUNDING: Half Cent Sales Tax Fund RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a contract with Miller Construction for the construction of the Fleishel Avenue Drainage Improvements project in the amount of $999,

79 Agenda Number: M-6 Page: 2 of 2 ATTACHMENTS: 1. Exhibit A Bid Tabulation 2. Exhibit B Location Map Drafted/Recommended By: Department Leader Scott Taylor, P.E., Managing Director of Utilities and Public Works Edited/Submitted By: City Manager

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85 EXHIBIT B - LOCATION MAP

86 CITY OF TYLER CITY COUNCIL COMMUNICATION Agenda Number: C-A-1 Date: September 12, 2018 Subject: Request that the City Council consider authorizing the City Manager to renew the lease for ReCollect Waste Management App as a communication tool for both the Solid Waste Residential and Commercial customers for $9,999 per year. Page: 1 of 1 Item Reference: Council Meeting 09/10/2014, Item M-1 City staff awarded ReCollect a (3) three year contract with (2) two one-year renewals on September 10, This would be the last renewal option before rebidding this entire contract. This app has helped to improve communication for Residential and Commercial customers by advising them of Solid Waste or Keep Tyler Beautiful special upcoming events, weather related delays of service, and/or change of service due to holidays. This Solid Waste app can also send reminders or phone messages to the customer to put either their recycling or trash cans out on the appropriate days of service. ReCollect s app was branded for the City of Tyler, and it has been placed on all communication web pages to adequately reach the City of Tyler customers. The app is currently used by approximately 4,100 active customers. Solid Waste staff has been pleased with the level of support provided by ReCollect and would like to renew this agreement for another fiscal year. RECOMMENDATION: It is recommended that the City Council authorize the City Manager to renew the lease for ReCollect Waste Management App as a communication tool for both the Solid Waste Residential and Commercial customers for $9,999 per year. Drafted/Recommended By: Department Leader Leroy Sparrow, Director of Solid Waste Edited/Submitted By: City Manager

87 CITY OF TYLER CITY COUNCIL COMMUNICATION Agenda Number: C-A-2 Date: September 12, 2018 Subject: Request that the City Council consider authorizing the City Manager to purchase solid waste trucks from TIPS cooperative, and police patrol vehicles from Texas BuyBoard chosen vendors as part of Fleet Replacement program for FY2019. Page: 1 of 2 Item Reference: Purchase of Goods through Cooperatives 2/14/2018 CA5 The fleet replacement program budgets for departments to replace their vehicles on a regular schedule, particularly those with mileage and/or maintenance cost expectations. Staff would like to order these units before October to avoid paying additional price increases for these units. After meeting with these departments, Vehicle Services researched bids with City-specified options through The Interlocal Purchasing System (TIPS) and Texas BuyBoard purchasing coops and recommends awarding the chosen vendors: Replacement/ New Vehicle Description Cost Vendor Department Replacement (2) 2019 Mack Granite GR64B w/ Galbreath Roll-Off Hoist Less Trade In $359,278 ($298,209) East Texas Mack, of Longview, Texas TIPS Contract # Solid Waste Commercial Total $61,069 Replacement (2) 2019 Mack TE64R w/ McNeilus Frontload Body Less Trade In $544,598 $359,478 East Texas Mack, of Longview, Texas TIPS Contract # Solid Waste Commercial Total $185,120

88 Agenda Item: C-A-2 Page: 2 of 2 Replacement (3) 2019 Mack LR64R w/ McNeilus Side Loader (4) 2019 Mack LR64 w/ Heil Multipack Body $858,279 $1,322,368 East Texas Mack, of Longview, Texas TIPS Contract # Solid Waste Residential Less Trade In $830,556 Total $1,350,091 Replacement (1) 2019 Mack LR64 w/ Pakmor Rearload Body $235,330 East Texas Mack, of Longview, Texas TIPS Contract # Solid Waste Residential Replacement (11) Dodge Charger Pursuit $259,105 Dodge City of McKinney, of McKinney Texas Police Replacement (12) Dodge Charger Pursuit BuyBoard Contract # $282,660 Dodge City of McKinney, of McKinney Texas Police BuyBoard Contract # FUNDING: is from Fiscal Year Vehicle Services Capital Fund: and Solid Waste Capital Fund RECOMMENDATION: Recommend that the City Council consider authorizing the City Manager to purchase vehicles from above mentioned vendors through The Interlocal Purchasing System (TIPS) and Texas BuyBoard. Drafted/Recommended By: Department Leader Leroy Sparrow, Director of Solid Waste Edited/Submitted By: City Manager

89 CITY OF TYLER CITY COUNCIL COMMUNICATION Agenda Number: C-A-3 Date: September 12, 2018 Subject: Request that the City Council consider authorizing the City Manager to sign a permanent right-of-way use agreement with Conterra Ultra Broadband, LLC for the purpose of installing, operating, and maintaining fiber optic cable in the City of Tyler right-of-way. Page: 1 of 1 Item Reference: City of Tyler Code of Ordinances, Section 17-1 Conterra Ultra Broadband, LLC is requesting a permanent right-of-way (ROW) easement for the installation, operation, and maintenance of fiber optic cable at the following locations: 1) East Noble Street from Beckham Avenue to CHRISTUS Health. 2) Along West Queen Street, North Palace Avenue and West Ferguson Street Section 17-1 of the Tyler City Code requires anyone other than City franchisees desiring to use a portion of public right-of-way for a private business or personal use to first obtain a right-of-way easement from the City. Applications for right-of-way easements shall be filed with the City Engineer and those that are permanent in nature shall require approval of the City Council. RECOMMENDATION: It is recommended that the City Council authorize the City Manager to sign a permanent right-ofway use agreement with Conterra Ultra Broadband, LLC for the purpose of installing, operating, and maintaining fiber optic cable in the City of Tyler right-of-way. ATTACHMENTS: 1. Indefinite Public Right-Of-Way Easement with Location Maps Drafted/Recommended By: Department Leader Scott Taylor, P.E., Managing Director of Utilities and Public Works Edited/Submitted By: City Manager

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95 Conterra Networks 2101 Rexford Rd #200E, Charlotte, NC CONTACT NAMES AND NUMBERS: PROJECT MANAGER: Beau Griffin, (OFFICE) ENGINEER: Glen Mayeaux, (OFFICE) DRAFTER: Michel Muanzamina, (OFFICE) SHEET DESCRIPTION SHEET DRAWING LIST: DESCRIPTION SHEET DESCRIPTION DATE DRAWING STATUS DESCRIPTION DRAFTER SET

96 Conterra Networks 2101 Rexford Rd #200E, Charlotte, NC CONTACT NAMES AND NUMBERS: PROJECT MANAGER: Beau Griffin, (OFFICE) ENGINEER: Glen Mayeaux, (OFFICE) DRAFTER: Michel Muanzamina, (OFFICE) SHEET DESCRIPTION SHEET DRAWING LIST: DESCRIPTION SHEET DESCRIPTION DATE DRAWING STATUS DESCRIPTION DRAFTER SET