Diana Martinez Mayor Pete Morales Mayor. Pro-Tem Trino Medina Commissioner Robert Del La Garza Commissioner Maria Del Pilar Garza Commissioner Luciano Ozuna, Jr. City Manager ALAMO FUGE CITY OF ALAMO BOARD OF COMMISSIONERS SECOND REGULAR MEETING TUESDAY, MARCH 20, 2018- 7:00 P.M. ALAMO CITY HALL 4201 N. TOWER. ROAD ALAMO, TEXAS 78516 At anytime during the course of this meeting, the City Commission may retire to Executive Session under Texas Government Code, Section 551.071 (2) to conferwith its legal counsel on any subject matter in this agenda in which the duty of the City Attorney to the City Commission under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 oft the Texas Government Code. At anytime during the course oft this meeting the City Commission may retire to Executive Session to deliberate on any subject slated for discussion at this meeting, as may be permitted under one or more of the exceptions to the requirements that meetings be open set forth in Title 5, Subtitle A, ATIEMEETINCTHECTYCIvCPpsNVaNNaAN, ACTION DEEMED APPROPRIATE BY THE CITY COMMISSION ON THE Chapter 551, Subchapter D of the Texas Government Code. FOLLOWING SUBJECTS: AGENDA I. CALL MEETING TO ORDER A. Pledge of Allegiance B. Invocation C. Presentation and Announcements. D. Presentation of the Citizen oft the month for the month of February 2018. E. Consideration and action to approve the minutes for the regular meeting Tuesday, December 16,2017. 420 N. Tower Road e Alamo, Texas 78516. (956) 787-0006 e(956) 787-6807 fax "This institution is an equal opportunity provider, and employer" F. Consideration and action to approve the minutes for the regular meeting Tuesday, January 2, 2018. AEDC Audit. G. Consideration and action to approve the presentation of the 2016-2017 City and H. Consideration and action to authorize the City Manager to issue a building permit prior to subdivision recordation being a 3.87 acre tract of1 land out ofLots 2 and 7, Consideration and action an ordinance oft the City Council of the City of Alamo, Texas, ("City") approving a negotiated resolution between City and Texas Gas Service ("TGS" or "The Company") regarding The Company's cost of service adjustment ("COSA") tariff filing; adopting a savings clause; determining that this ordinance was passed in accordance with the requirements of the Texas Open Meetings Act; declaring an effective date; repealing yporotinmeinomisent with this ordinance; andi requiring delivery ofthis ordinance to The Company and the Consideration and action to enter into an agreement with Cruz-Hogan Consultants, Inc. for the design ofimprovements to the Water Treatment Plan. Block 38, Alamo Land and Sugar Company Subdivision. I. City's] Legal Counsel. J. K. Consideration and action to award the bid for the Janitorial Services for City L. Presentation on an update of the widening ofNorth FM 907 by" TXDOT. M. Consideration and action on the release ofat utility easement along the west side of Lot:44, Widen Subdivision, Unit No. 2, HCMR Volume 20, Page 192, 1320 Royal N. Consideration and action regarding a budget amendment to the 2017-2018 Budget ofthe Alamo EconomicDevelopment Corporationi toj provide funding for thel Medek O. Presentation of the monthly report by the Alamo Economic Development buildings. Palms Street. LLCE Project. Corporation. P. Consideration and action on a variance to allow fort the sale and onsite consumption ofalcohol for "7th Street Bar & Grill", physically located at 702 E.. Acacia Avenue, legally described as Lot. 12, Block 22, Alamo Original Townsite for Reynaldo Rodriguez. Q. Presentation of Departmental Report. CITIZEN PARTICIPATION: Five. minutes per person with no response from the City Commission. Residents must sign upi prior to the city meeting. Citizens are encouraged to sign the attendance sheet. II. ADJOURNMENT I,Margot Salas, City Secretary the undersigned authority, dol hereby certify that the attached agenda ofaregular meeting ofthel Board ofCommisionerisatne: and correct copy andt thatI Iposted at true and correct copy ofs said Notice ont the bulletin board in the Municipal Building, aj place convenient and readily accessible to the general public at all times, and said Notice was posted on the 16" day ofMarch 2018 at 5:00 p.m. and will remain sO posted continuously for at least 721 hours preceding the scheduled time ofs said meetingi in accordance with Chapter 551 ofthe Texas Government Code. Dated this the 16"h day ofMarch 2018. Posted By: Hoptoll Margot Salas, City Secretary March 16, 2018 @ 5:00 p.m. The Board ofCommissioners: fort the City of Alamo, Texas met fori the Second Regular Meeting on Tuesday, December 19, 2017 at 7:00 p.m, at the City of Alamo Municipal Building. COMMISSION PRESENT: Mayor Diana Martinez Pilar Garza, Commissioner Pete Morales, Mayor Pro-tem Trino Medina, Commissioner Robert De La Garza, Commissioner STAFF PRESENT: Luciano Ozuna, City Manager Rick Palacios, City Attorney Margot Salas, City Secretary Bobby Salinas, CPD Director Melissa Gonzalez, Grant Alicia Cano, Human Resource Yvette Mendoza, Finance Director COMMISSION ABSENT: Arnold Robles, Parks & Recreation Director Julio Villarreal, Public Works Ronnie Cruz, City Engineer Alejandro Oyoque, Museum Director Rafael Tapia, AEDC Director Lupita Valdez, Alamo Investigator Officer Alaniz I. CALL MEETING TO ORDER Mayor Diana Martinez called the second regular meeting held on Tuesday, December 19, 2017 to order at 7:00 p.m. at the City of Alamo Municipal Building. Mayor Diana Martinez led the Pledge of Allegiance and Father Rene Angel led the Invocation. C. Presentation and Announcements. Mr. Luciano Ozuna, Jr., City Manager, unveiled the Bronze Eagle that would bej placed at the new Melissa Gonzalez, Grand Writer, stated that the School District participated in the project last year and it's called the Mayor's Challenge through HEB fitness. What they want to do is get the community back out and get physically fit and health. She stated that it starts January gth and runs through March 4th. The School District is helping organizing all the activities. They are going to have one community event per month, for the month of. January it will be January 24th and then February 21"willl be the second event and will be at thel Memorial Gym. She stated that she did not know what event activity it was going to be, they are looking at Zumba, Crossfit, just something to get the community to come out and do some activities. She stated that once they register for this event the City of Alamo will start earning points, they are going to ask everyone to sign up personally. She stated that they can upload seliesofyoumelfeating healthy: foods. All these points would be added to the city that you have signed up for. And will also sign up for the district. The City of San Juan and the City of] Pharr have agreed toj participate, soi it's going tol be at tri-city effort for the city part and at tri-city for the district part. She stated that she needs the City Commission to signa aj pledge stating thatt they are going toj participate int thej program, she willi take aj picture and then she will upload it and the city will be getting points forit. She stated that because Alamo, San. Juan Veteran Memorial Park. and Pharr are different inj population size, Alamo will not compete against them for funding. The Cityof Alamo will compete against cities thes same size and there'sa at tentative amount ofmoney the city can will ifthe city wins this challenge. HEB hasi not told them how much the city wins until the project starts on. January gth. She stated that the district wants tol kicki it offon. January gth and asking all three cities and everybody at the district to doa a 101 minutes walk around City Hall for employees, around thel Fire Department, where youa are, shei is going to ask the stafft to walk and take pictures and upload them and start earning points for the city. She stated that if anyone who has a fitbit that you useifyou exercise, ity will: automatic upload yourinformationa and will add your point tot the city. She stated that on. January 2nd the next meeting she willl have the pledges to sign and take pictures. She stated that the Playful City Board will help her out with this project. She stated that the walking trails at Memorial and all the PSJA high schools will be open everyday, Monday thru Friday and maybe even Saturday and Sundays for the community to go out and walk and be safe. Mayor Pro-tem Pete Morales stated that the. Alamo Chamber of Commerce still has boxes around town for donations for toys, ifyou can please let your friends and family know that a donation will Father Rene Angel stated that they will be having a Christmas Party forj poor children this coming Friday. He stated that they received al lot oft toys and will be giving out the toys to the children. D. Consideration and action to approve the minutes for the special meeting held on Commissioner Robert de la Garza motioned to approve the minutes) for the special meeting held on Tuesday, October13,2017. Mayor Pro-tem Petel Moralesseconded: thei motion. Commissioner E. Consideration and action to approve the minutes for the regular meeting held on Mayor Pro-tem Pete Morales stated that hel had one correction. He apologize it was the wrong one. Commissioner Robert de la Garza motioned: to approve the minutes for the regular meeting held on Tuesday, October13,2017. Mayor Pro-tem Pete Moralesseconded: thei motion. Commissioner be greatly appreciated. Tuesday, October 13, 2017. Trino Medina abstained. Motion carried. Tuesday, October 17, 2017. Trino Medina abstained. Motion carried. F. Consideration and action to approve the minutes for the special meeting held on Tuesday, October 24, 2017. Mayor Pro-tem Pete Morales stated that hel had a correction on, not one. Mayor Diana Martinez stated no. Mayor Pro-tem Pete Morales said no. Commissioner Robert de la Garza motioned: to approve the minutes for ther regular meeting held on Tuesday, October13,2017. Mayor) Pro-tem. Petel Moralessecondedthemotion. Commissioner G. Consideration and action on a presentation by the Alamo Boys and Girls Club. Trino. Medina abstained. Motion carried. Mayor Diana Martinez stated that no action would be taken at this time. H. Consideration and action to: adopt taj policyfornursingi mothers as required by thel Fair Mayor Diana Martinez stated that they had a workshop last week regarding this item. Mr. Ozuna asked Alicia Cano, Human Resource, whether there was any changes to the policy. Labor Standards Act (FLSA). Alicia Cano, Human Resource, stated that there were no changes. Mr. Ozuna also stated that there were no changes as presented. Commissioner Pilar Garza motioned to approve to adopt the policy. for nursing mothers as required by the Fair. Labor Standards. Act (FLSA). Commissioner Trino Medina seconded the motion. Motion carried. I. Consideration: and: action on an: memdmetotelmterlnciAgremetwit. Hidalgo County for the Tax Assessment and Collection for direct attorney compensation payments by the Tax Office. Mr. Ozuna stated that theyl have al letter they received from Paul Villarreal from thel Hidalgo County Tax Office. He stated that it's to amend the contract which calls for, the city has a delinquent tax attorney, the city pays the delinquent tax attorney on taxes that are collected that are sent tot the city by the attorney. However, they collect delinquent taxest there also, but what they dot therei is they sent whatever the percentage, it's 15%, directly from the tax office to the delinquent tax attorney, Linebarger. He stated that this is an amendment giving them the authority to do that. Commissioner Robert de la Garza motioned to approve the amendment to the Inter-Local Agreement with Hidalgo County. for the Tax Assessment and Collection for direct attorney compensation payments by the Tax Office. Mayor Pro-tem Pete Morales seconded the motion. Motion carried. J. Consideration and action to appoint a committee to review the application and interview the applicants for the police chief position. Commissioner. Robert de la Garzai motionedtoa appoint Luciano Ozuna, Trinol Medina and Robert de la Garzaj for the committee. Commissioner. Pete Morales seconded the motion. Mayor. Diana Martinez and Commissioner Pilar Garza opposed. Motion carried. Mayor Diana Martinez asked whether there were only three people appointed. Commissioner Robert de la Garza answered yes. K. Consideration and action to set the salary of the Acting Fire Chief. Executive Session with Item T. Commissioner Trino Medina second. Commissioner Robert de la Garza stated that he would like to have that item, Item K, discussed in Mayor Diana Martinez asked which one. discussing executive session Item T: also. Commissioner Robert de la Garza answered Item K discussed in executive session, they are Mr. Ozuna stated ifhe may, you want to discuss Item K and Item T. Commissioner Robert de la Garza answered yes. Mayor Diana Martinez stated in Executive Session. Mr. Ozuna stated inl Executive Session, that would be fine. L. Consideration and action on an ordinance amending the Code of Ordinance Title 2 Boards Commissions and Committees - Planning and Zoning Chapter 2 Section 2-2- 3(B)(1) regarding Removals from Office. Mr. Ozuna stated that the amendment to that ordinance states that, any member may bei removed by amajority vote ofthe board of commissioners oft the city, without cause. Asitisi nowi it states that, the mayor can remove with the consent of the city commission. He stated that this would change Commissioner Robert de la Garza motioned to approve the ordinance amending the Code of Ordinance Tile 21 Boards Commissionsande Commites-Pamahngand. Zoning Chapter 4 2Section 2-2-3(B)(1). regarding Removalfrom Office. Mayor Pro-tem Pete. Morales seconded. the motion. Mayor Diana Martinez and Commissioner Pilar Garza opposed. Motion carried. M. Consideration and action to award the bid for replacement of the sewer linel located in the alley between Bowie Avenue and Crocket Avenue approximately 600 feet. Mr. Ozuna stated that at the last meeting they discussed this matter which is the replacement ofa sewer line from Alamo Road to 12th Street, it'san alley between Bowie and Crockett. He stated that all that line is caving in, it's an old clay line, there are a lot oft them in the Original Townsite and little by little they have been replacing al lot oft these. He stated that this was ai recommendation by Julio Villarreal and himselfto the City Commission to replace that line. Hes stated that they got some quotations from different companies, Saenz Brothers being the low bid at $47,900.00; Tigers only to the majority vote oft the board of commissioners. Construction $52,750.00; and Valley Paving Inc. $56,200.00. Mayor Pro-tem. Pete Morales motioned to award the bid to Saenz Brothers Construction in the amount of$47,900.00 for the replacement ofthe sewer line located in the alley between Bowie Avenue and Crockett. Avenue approximately 600feet. Commissioner Pilar Garza seconded the N. Consideration and action to award the bid for two backwash valves and actuators. Mr. Ozuna stated that this was an emergency typei item, it's with Water Tech Inc. andi it'st to replace two backwash valves and actuators att thei filters at the water plant. He: stated that it's an emergency item int the amount of$34,440.06 whichi it'sfort the valves and the actuators only. He stated that they are currently taking quotations for the actual work, for the labor, that part will be about $5,500.00 or less. He stated that because it's a small amount which is under his authority to approve the low bids so1 that will be done hopefully next week. Hes stated that the statement that they have from Javier Santiago with Water & Wastewater Technology says he has two valves available right now that he could delivery to the city from aj jobt that they are doing right now at another water plant. He stated that ift they were. to order them right now: from the company itselfa and it would be manufactured, it would take anywhere from six to eight weeks. He stated that they need those valves as soon as possible. He stated that he talked to the City Engineer and hel has also concurred on the bid. Commissioner. Robert de la Garza motioned to approve to awardi the bidi to Water Tech. Inc. int the amount of $34,440.06 for two backwash valves and actuators. Mayor Pro-tem Pete Morales O. Presentation ofamonthly reporti from the Alamo. Economic! DevelopmemtCorperation. Mr. Ozuna stated that this was ar request from the AEDC, the Board has requested that thel Executive Director to come and make ai monthly report tot the City Commission in regards to what has happen Mr. Rafael Tapia, AEDC Director, stated that the Alamo EDC Board of Directors have requested thatl hej provide a presentation on ai monthly report to1 the City Commission. He: stated that this report was presented to the AEDC Board at: ai regular meeting on December 13th. He stated that the report is broken down into two sections, the first section is the Revolving Loan Fund Program and the second section covers the AEDC activities. He stated that ini regards to the Revolving Loan Fund Program as of December 1, 20171 the program has a1 total fund balance of $635,184.04. He stated that this was made up ofan) IRP balance of $460,395.57 and an RBEG balance of$174,788.47. He stated that the program has $579,211.24 in outstanding loans. He stated that there are currently two accounts considered delinquent, Soliel Rehab and V-Day currently these are. 29 days outstanding. He: stated that during thej periodofNovember. 1s'thru) December 1the program had one new contact Ms. Lisseth DeLeon, who submitted an application, she's trying to start up a business along the Expressway,it'sans event center. He stated that most ofher application: material has been submitted but she is pending some information such as business plan and her personal financial statements. He stated that in terms of program maintenance, they continue to work with delinquent accounts, theya are promoting thej program via social media and printmedia. They are getting ready fort the next round of USDA compliance report due at the end of this quarter. He stated that in regards to the AEDC activities, there are no updates regarding the development agreements. The AEDC is still waiting on Mr. Gomez to sign off on the use of] RBEC funds for loans of $1,000.00 to $5,000.00 motion. Motion carried. seconded the motion. Motion carried. at their Board Meeting. which they call Micro-loan Program. He stated that the highlight oft the month was the ICSCTexas trip which provides members of the public in 5A sector to network and highlight growth opportunities. He stated that from the AEDC stand point of view this is more of a information gathering event. He stated that this year the AEDC took advantage ofthe fact that the RSTEC paid for the conference registration which was a saving of $300.00. He stated that they had one preschedule meeting with the New Landmark Group, who's a consultant for a big box store, basically he goes around assisting the businesses with getting incentives. He stated that they also had an opportunity to visit with the booth of eleven different retailers seeking to expand in the coming year and capable of developing free standing sites. He stated that the AEDC also for the month of November was able to sent out about six different site proposals and assist one oft their retailj partners, Retail Solutions withinformation ons sites throughout Alamo. Heasked whethert there Commissioner Trino Medina asked whether the outstanding loans that is delinquent, was it the were any questions in regards to the report. person running for Commissioner, who is the owner or the owner oft this loan. Mr. Tapia stated that would be Mr. Thomas Moncevais. Commissioner Trino Medina asked whether he had an amount ofhow much they owed to the city. Mr. Tapia stated that he didn't have the amount with him but the last time hel looked at it, it was Commissioner Pilar Garza asked whether they had any other loans that far behind or two months about total in notes was about $130,000.00. behind. Mr. Tapia stated that all other loans are currents. Commissioner Pilar Garza stated that since he's been here. Mr. Tapia stated that was correct, since he's been here. Commissioner Pilar Garza asked whether they catch up, ift they are late. Mr. Tapia stated that with this particular gentlemen theyl hadtodoamodification: onl hisi notel because Commissioner. Pete Morales thanked Mr. Tapia for the report. Hes stated that it's good tol know what they are doing as far a AEDC with promoting transparency over there. He stated that he like that they go out and talking to some oft these retail businesses as well, that's something that they want to let the citizens know that the AEDC: is really trying to get business into town. Commissioner Trino Medina asked how are they monitoring compliance, as far as employees that oft the tardiness and also an issue with his collateral. they hire. Mr. Tapia stated that the IRP itself does not have ajob component toi it, but they do target based on what they said on their application. So based on what they, themself, said that they were going to do and were approved of, that's basically how they go and judge them. As far as: monitoring them, obviously they talk to them on a monthly basis, they do have one official service visit and that's because USDA still monitors this every two or three years, they come in an do an actual spot check and look at what loans they have and where the files are and that the money was actually obligated as they prescribed when they sent them out. He stated that, in a yearly basis, staff does ai field visit Commissioner Trino Medina said that he is saying that they monitor how the money is being obligated or spent. He asked whether he was getting receipts or reports from the companies. Mr. Tapia stated that when the loan is issued out, for example, for a construction loan, yes, they actually have to do a draw down on them. He stated that there should have been a draw down scheduled for this account back in 2011. In other words, there's no extra money going out,ifit'sa loan likei forexample, New Generation which was fort thej purchaseofproperty,t ther moneyisactually Commissioner Trino Medina asked whether all these loans that they have, do they have balances in and asked them the same questions as USDA would ask them. issued out to the seller of the property and not the actual borrower. the AEDC or is it all turned over to them already. Mr Tapia stated that all the money has been turned over to them. Commissioner Trino Medina asked whethert that wass somethingt thatitnormally done. He stated that it's his understanding is that sometime you can, once they start their business, give them aj portion Mr. Tapia stated that the money is given for the scope of work for which they applied for, for example, if they were going to construct a building, they do the drawn down measure until the building in constructed and ifthere is any surplus they may give it to them as a working capital and then they start collecting funds. In other words, for example, Willie's Barbeque, they did a draw down until the second addition was done and at that point they start repayment, sO the money. has already been issued outt tol him, there wouldn't! be an outstanding balance on any oftheir loans att this Commissioner Trino Medina stated that he would like for him to include the outstanding balances and then as they go on you give them more money. time. on the loans next month. Mr. Tapia stated that he would have that. P. Consideration and action on a re-zone from an R-1 (Single-Family Dwelling District) to a C (Commercial District), physically located at 1211 S. Alamo Road, legally described as al 1.71 acre tract ofland out ofthe south % ofthe north 5 acres of the east 14.14acresofLot6, Block 28 AlamoLand and SugarCompanyl Subdivision: forMartin Felipe Ontiveros & Gregory Alexander Ontiveros. Mr. Bobby Salinas stated that this property is located 970' north of El Gato Road on the west side ofA Alamo Road. Itisc currently where theyl have. Montiveros Tiles, that'st thel business that is ont there right now. He stated that ini the packet they should have a: zoning mapi that would show the existing zones to1 the north would bel R-1, to the east is Commercial, to the west is R-1 and to the South is R- 1. He stated that when he states those zones, he is talking about the areas that are just north, east, west and south of the actual tract that is being subdivided. He stated that this is pretty much an xtensionofcommercial along the Alamo Road side,j just making ital littlel bit deeper. He: stated that a similar re-zoning that was done recently is actually. just east of this property on the east side of Alamo Road which is where the Skill Nursing Facility is. He stated that due to the type oft traffic that travels. Alamo Road, the speed there, the existing commercial zone that is along the east side of this tract, staffis recommending approval for the commercial zone change. He stated that they did have ai meeting on November 15, 2017 with the Planning & Zoning Commission where they voted to approve it. He stated that this was aj public hearing in case there is anyone in favor or against this Mayor Diana Martinez stated that this was listed as aj public hearing, it'sjust an item on the agenda. request. Bobby Salinas stated that they did publish property and everyone was notified. Mr. Rick Palacios stated that because it is not listed as aj public hearing, is there aj problem ift they take it toi the first meeting on the 2nd. He stated that the issue is not whether you gave notice tot the people around there. The issue is whether you gave notice to the public and whether or not it was listed as an agenda item soi ifit's not listed as a public hearing there could havel been somebodyelse or than the people you send notice that had an issue with it and other people could also offer comments at this time. Mayor Diana Martinez asked whether there ai motion. and they need it as a public hearing instead. Mr. Palacios stated that there would be no action because tabling it will bring the exact item back Mayor Diana Martinez stated that there will be no action taken. Bobby Salinas stated that ifthe timing is ok, they will seti it up for the 2nd because there has to bea a Q. Consideration and action on a conditional use] permit forar mobile food vendor"Circus Popcorn", physically located at 1211 E. Frontage Road, legally described as Alamo Bobby Salinas stated that this is actually the HEB location. He stated that there was aj previous condition usej permit forl Hungers Express where theyl haveal little food cart. He stated that it'sgoing to be the same thing but it's only going to be for popcorn and drinks, very simple. He stated that they areincompliancer witht they city'smobilei food vendorsordinance. Thel hoursofoperationswil be, they stated at 6:00a.m. to 12:00 a.m. but they arej just listing thes same hours at thel HEB. As far as parking there should no issues. They are going to have two employees. He stated that staffis 15 day period to notify the people. H.E.B. for Mizrraim Medrano for Aurora Vasquez. recommending one year approval subject to complying with the city's building and fire codes, compliance: witht the county health code and they must acquire al business license. Hes stated that they Commissioner, Robert de la Garza motioned to approve the conditional use permit for a mobile food vendor "Circus Pepon'phyialyloaad. atl 1211E. Frontage. Road, legally described as Alamo H.E.B.for Mizrraim. MedranoforA Aurora Vasquez. Commissioner Pilar Garza seconded the motion. Commissioner, Pete. Morales stated that due to him workingforar retail company he R. Consideration and action on a variance to allow for the sale: and onsite consumption of alcohol for7th Street Bar & Grill", physically located: at 702] E. Acacia Avenue, legally described as Lot 12, Block 22, Alamo Original Townsite forl Reynaldo Rodriguez. Mayor Diana Martinez stated that she had a question on this item. She asked whether the owner of the building is Mr. Raul Medina. She asked Mr. Raul Medina ift the building was his. did have ai meeting on December 13th, where the P & Z: recommended approval. abstained. Motion carried. Mr. Raul Medina answered yes. Mayor Diana Martinez asked whether this would abstain Commissioner. Medina from voting on this Mr. Rick Palacios, City. Attorney, asked whether he was the applicant for the variance or is hej just item. the owner oft the building. Mayor Diana Martinez stated that he is the owner of the building. Mr. Rick Palacios asked whether the owner asking for the application. Bobby Salinas stated that Reynaldo Rodriguez is the applicant. be, is he the brother of Mr. Medina, is that correct. Mayor Diana Martinez stated that he is the owner. Mr. Palacios stated thatl because hei isnot asking fort the application, alsotothenextquesion would Mr. Palacios stated that he would be the owner of one the commissioners, it that correct. Mayor Diana Martinez stated he is the brother. Mr. Palacios stated then for that reason hei is not within the first degree ofaffinity or consanguinity so there would be no issue. Mayor Diana Martinez said SO he could vote. Mr. Palacios stated that he could vote. Bobby Salinas stated that this site is located on the north west corner of7th Street and Acacia. This property was once utilized as Leo's Bar, it was used for many years, it was an existing nonconforming use. Hes stated thati ini thej packet hel list the nonconforming use ofthel building, where its states "l nonconforming use discontinued for a continuous period of one year shall thereafter be occupied only by a use that is] permitted in the C-1 zone or in the zone that it isi in,," So now years later, Leo's! have be closed for more than year and in essence voided in grandfather use. He stated that Mr. Reynaldo Rodriguez came into the office and asked ifl he could open up a bar and grill. Under the city'sz zoning codes, only the commercial zone allows for the operation ofal bar through aconditional use permit. He stated that the reason for only allowing these types of uses ina Czone ist to keep bars away from the single-family residential neighborhoods that may have a negative impact on the character of the neighborhood with additional traffic generated by such businesses, loud music/noise, and potential vandalism or criminal activities that sometimes come with these typesofbusinesses. He stated that though this] property was use as al bars several years ago, the City's code clearly state that the nonconforming use no longer exists and any proposed uses must comply with the C-1 permitted uses, which does not allow for the sale of alcohol. The applicant can still apply for a small neighborhood restaurant, however cannot offer the sale ofa alcohol. He stated that staffi is recommending denial and they did have a P& Z: meeting on December 13th where it was Mr. Rick Palacios stated that it was recommended for denial, he asked whether P & Z denied it. recommended for denial as well. Bobby Salinas stated that P & Z did deny it. Mayor. Pro-tem Pete Morales motioned to approve the variance to allow) for the sale and onsite consumption ofalcoholfor "yl Street. Bar & Grill',physically located at 702E. Acacia Avenue, legally described as Lot 12, Block 22, Alamo Original Townsite for Reynaldo Rodriguez. Commissioner Robert de la Garza seconded the motion. Mayor Diana Martinez and Rick Palacios stated that the item doesn't carry, because it was denied by P & Z it requires a four/fifth vote SO at this time the application that, the action would need a four/fifth vote. Commissioner Pilar Garza opposed. Motion carried. Mayor Diana Martinez asked whether it was denied. Rick Palacios stated that it was not denied either, it's just that the motion that was made and seconded it did not pass, unless there is another motion then it would be a no action item, ift there is no other successful motion. Mayor Diana Martinez asked whether they need four votes. Rick Palacios stated that to overturn the P & Z denial you would need a four/fifth vote under the Local Government Code in order to do that, they are shy one vote in order to approve it so ifthere is no other motion then it would be ai no action item. S. Presentation of] Departmental Report. Commissioner Pete Morales stated that he had a question, on1 the attorney's fees for last month, is there anyway that they could have their councilor look at the itemized charges on the charges that they had from the previous attorney. Mr. Ozuna stated that they could provide ift they request it. Commissioner Pete Morales stated that he would appreciate it if they could get that to the City CITIZEN PARTICIPATION: Five minutes per person with no response from the City SanJuanita Sanchez: addressed the City Commissioner regardingt the Alamo Policel Department. She stated that she has had trouble with thel Police Officers. There has been two incidents atl her mom's house and the police officers never arrived. She stated that the police officers never did any thing Attorney for review. Commission. Residents must sign up prior to the city meeting. tol help them. EXECUTIVE SESSION: K. Consideration and action to set the salary of the Acting Fire Chief. Mayor Pro-tem Pete Morales stated that he sets the salary for $53,000.00 for the Acting Chief. Commissioner Robert de la Garza asked whether that was with non-exempt. Mayor Pro-tem Pete Morales stated with non-exempt status. that his salary will revert back to what his salary is right now. Commissioner Robert de la Garza answered yes. Mr. Ozuna stated that he wanted to make sure, to clarify that, if! he ceases to be Acting Fire Chief Commissioner Trino Medina said yest that would be ai new motion. Commissioner Robert de la Garza stated that would be included in the motion. Mayor Pro-tem. Pete Morales motioned tos set the: SMApPAraN, Fire Chief. Commissioner Robert de la Garza seconded the motion. Mayor Diana Martinez and Commissioner Pilar Garza opposed. Motion carried. T. Consideration and: action on matters discussed in executivesession regarding the Texas Commission on Environmental Quality Administrative Hearing. Rick Morales, City Attorney, stated that the only motion that they would need is tol have the City Mayor Diana Martinez motioned to have the City. Attorney and City Manager to proceed as directed in executive session. Commissioner Robert de la Garza seconded. the motion. Motion Attorney and City Manager to proceed as directed in executive session. carried. ADJOURNMENT Mayor Diana Martinez adjourned the meeting. Mayor Diana Martinez ATTEST: Margot Salas, City Secretary The Board of Commissioners for the City of Alamo, Texas met for the First Regular Meeting on Tuesday, January 2, 2018 at 7:00 p.m, at the City of Alamo Municipal Building. COMMISSION PRESENT: Mayor Diana Martinez Pete Morales, Mayor Pro-tem Trino Medina, Commissioner Robert De La Garza, Commissioner STAFF PRESENT: Luciano Ozuna, City Manager Rick Palacios, City Attorney Margot Salas, City Secretary Bobby Salinas, CPD Director Yvette Mendoza, Finance Director COMMISSION ABSENT: Pilar Garza, Commissioner Arnold Robles, Parks & Recreation Director Rafael Tapia, AEDC Director Acting Fire Chief Roy Contreras Ronnie Cruz, City Engineer Lieutenant Albert Caballero I. CALL MEETING TO ORDER Mayor Dianal Martinez called the first regular meeting held on Tuesday, January 2, 20181 to order at 7:00 p.m. at the City of Alamo Municipal Building. Mayor Diana Martinez led the Pledge of Allegiance and Father Rene Angel led the Invocation. C. Presentation and Announcements. D. Consideration and action to: approve the minutes for thel First Regular Meeting held on Commissioner. Robert del la Garza stated that hel ladacoupleofcometions: Onl Item F,3"sentence, itsays "every-"itprobably. means "ever". Item G, the 4th sentence from thel bottom, it says"tomove ina a "portable" not a "potable", Item I about 2/3 of the way down, it says, "Mr. Ozuna asked whether any "restriction" probably meant "restriction(s), on the last page 3rd sentence, it says, "Commissioner de la Garza asked in regards to the storm "drain", and on the bottom of the page its says "Juan Ortizstated that he was as student with the VIDA] program and wanted to "thanked"the Commissioner. Robert de la Garza motioned. to approve thei minutes forthe First Regulari Meeting held on Tuesday, November 7, 2017. Mayor Pro-tem Pete Morales. seconded: the motion. Motion Tuesday, November 7, 2017. City Commission for their support. He stated that was it. carried. Commissioner Trino Medina abstained. E. Consideration and action to select the honoree for the 2018 Rio Grande Valley Walk of Fame to represent the City of Alamo. Mayor Pro-tem. Pete Morales motionedtos select Socorro. Medina for the. 2018. Rio Grande Valley Walk ofFamet to representthe CityofAlamo. Commissioner Trino Medinaseconded, the motion. Motion carried. F. Consideration and action on an ordinance to amend the 2017-2018 General Fund General Administration Budget to provide additional funding to the Boys and Girls Mr.Luciano Ozuna, City Manager, stated that two weeks agot theyl had al budget workshop ini regards to the Boys & Girls Club and their request to transfer the monies that are being awarded to them from the Urban County Program and take them out oft the General Fund. He stated that there was ac discussion regarding this and the consensus that he gather was that the Commission wanted to do that amendment to the budget sO that they could support them out of the General Fund with an Club. additional $30,000.00. Mayor Diana Martinez asked whether that was the cost to cover the Baseball. Mr. Ozuna answered no, he stated that was the cost to cover the, in order words, go through the Urban County, not go through the Urban County, go through the General Fund, the $30,000.00 will then be placed under the Public Improvements such water, sewer, streets and drain. Mayor Pro-tem Pete Morales motionedi to approveticordinance to amendi the 2017-2018 General Fund General. Administration Budget toj provide addlitionalfunding. to the Boys and Girls Club. G. Consideration: and action on: an ordinancei to: amendthe2017-2018General Fund Parks Mr. Ozuna stated that this was another item of discussion during the workshop. He stated that Arnold Robles, Parks & Recreation Director, stated that there is approximately $50,000.00 that was needed in order for the city to: run the baseball program and that of course the city is taking it over under the Parks & Recreation Department. It will no longer be run by the Boys & Girls Club and in order for the city to do that they need to, (1) is tol hire aj person for approximately six months out ofthey years. They should have al breakdown that they provided tot them int the packet whichi is] Parks & Recreation fori the baseball assistant willl be approximatelyniner months ofar rate of$ $9.00 an] hour including the FICA it will be $9,446.00 and then there will be a $4,337.00 increase to the Parks & Recreation Director to run that program. He stated that there will be baseball equipment and supplies in the amount of $36,000.00. He stated that this is a budget, it's an estimate, they don't knowi ifthat's the actual cost. Right now, Mr. Robles is going through the equipment that thel Boys & Girls Clubl have left over: from thel baseball program, to see: ifany oft that equipment can be utilize thus saving the city some money from this amount. He: stated thati is what he is going through right Commissioner Robert de la Garza seconded. the motion. Motion carried. & Recreation Budget to provide funding for the baseball program. now. He asked whether that was correct. Arnold Robles stated that is what hei is going through. Mayor Diana Martinez asked whether they could combine Item G & H to vote on them together since he was already giving them the salary increase for the director and the baseball assistant. Mr. Ozuna stated that he would prefer for them to be separate. Mayor Pro-tem Pete Morales motionedi ltoapprovelleerdimancet to amendi the 2017-20186 General Fund. Parks & Recreation Budget to provide funding. for the baseball program. Mayor Diana H. Consideration and action to set the salary for an assistant to implement the baseball program and to increase the salary of the Parks and Recreation Director. Commissioner Trino Medina motioned to approve the salary for an assistant to implement. the baseball program and to increase the salary ofthe Parks & Recreation Director. Mayor. Diana Martinez seconded the motion. Motion carried. Martinez seconded the motion. Motion carried. I. Consideration and action regarding the desigmationappointment of an acting Police Mr. Ozuna stated that at this timel he would liket toi recommend) Lieutenant Caballero as. Acting Police Chief. Hes stated that thel Police Chiefisill and] hisi information that he gavel him a week ago was that he would: not be able to return during thei month ofJanuary. He stated resigned andi it stated the end of] January tol be his last date however because ofhis illness he will notl be able to return. So in the mean time they need to appoint an authority, need to appoint leadership, somebody with responsibility. He stated that the Lieutenant, he's work for the police department and for Chief Arturo Espinosa for more than 26, years and asa aLieutenant 20 years. He stated that he does not see any other alternative as this time to appoint anybody else as far as he is concern to appoint him. Commissioner Pete Morales motioned to approve ChiefLieutenant Caballero as interim Chief. Mr. Ozuna stated that there is another item, or there' s also to set the salary. He: stated that the: salary would be, he is recommending after discussing it with Lieutenant Caballero in the amount of Mayor. Diana Martinez motioned. to set the salaryfor the new acting police chief at $58,509.00. Lieutenant Albert Caballero stated that hel has been with the department for al long time and] he was going to1 retire, things happen, he decided, he gave himselfac commitment tol Mr. Ozuna saying that he would stay withi the department. The city has always been good tol him, the department has been good tol him. He didn't twant tol leave the department: in aj predicament without having anybody with leadership. He thanked the Commission for giving him the opportunity to lead the department and Chief or Interim Police Chief and set the salary for that position. Mayor Diana Martinez seconded the motion. Motion carried. $58,509.00. Commissioner Trino. Medina seconded the motion. Motion carried. stay with the city. J. Consideration and action to remove and/or appoint members to the Alamo Planning and Zoning Commission. Commissioner. Robert de la Garza motionedtoremovea alle existing membersand. appointmembers Gilbert Flores, Janie Solis, Albert Rodriguez, Estela Solis, Arturo Perez, Omar Guerra and George Castillo, Sr.totheAlamo. Planning & Zoning Commission. Commissioner Trino Medina seconded. the motion. Motion carried. K. Consideration and action to select the Geo-technical engineers for thesubdivisionsand Bobby Salinas, Communityl Planning and Development: Director, stated that theyrecently passed the subdivision amendment that included the use of Geo-technical engineering consultants for the use ofall city subdivision sO that the engineers will be working for the city and not be consultant to the actual project engineer, it makes it al little bit more clean, it give the city the authority and they are having to answer to the city when the city goes out for the testing for geo-tec. He stated that they went through RFQ andi received three, Millennium Engineering Group, Terracon, and Rabal Kistner. He stated that staffi is recommending the rotation of all three, utilize based on their ranking which would bel Millennium, Terracon and Raba Kistner. Soi that way, whenever there'sac city project they will go down the rotation, ifthere'sasubdivision that comes through aj project engineer, they would Commissioner Robert del la Garza stated that they graded them SO1 they are basically suggesting that Bobby Salinas stated that Millennium is on the top. He stated that the way they are shown on the memo is the way they graded by ranking and it's Millennium, Terracon and Raba Kistner. Commissioner Robert de la Garza asked whether they could only use Millennium as the only one. City project for compaction testing, soil testing, etc. go on to the next one, and SO on and so forth. Millennium is the top. Bobby Salinas stated that it's up to the wishes oft the Commission. Commissioner Trino Medina asked the City Engineer Ronnie Cruz whether hel knew all these firms and whether they were reputable. Mr. Ronnie Cruz, City Engineer, stated that they all were. Mayor Diana Martinez asked Ronnie Cruz what was his recommendation. Wasi it to use ai rotation Mr. Ronnie Cruz stated that he has seen it both ways, it depends on the city, all three firms are reputable firms. He stated that they are good firms, how they do it, it doesn'tmatter. He stated that he doesn'tknow: how many: projects that the city has in a year or what the rotation would entail. He stated thatj just to be cleared the developers ofthe subdivision aret the ones that would bej paying the Commissioner Robert del la Garza stated, sO then it will not be the city actually paying. Mr. Cruz stated that it will: not be coming out ofthe city unless it'sa a city project like a street project orwhatever: so1 then the city will pay fort that buti ifit'sasubdivision wheread developer comesi int then the developer would be responsible to pay that, it's normally 3% of the total project cost. Mr. Ozuna stated that they have a city project going on at Plena Vista Subdivision, they have done most oft the work, they've done all the back field on the lines and the compression, they are will for orj just go with one. fee for the engineers. the city to: selectac company: so1 that the company can goout there and make suret that the compression on the laying oft the pipe is correct before they pave. He stated that then there's subdivisions that come up and they do have quite a bit ofwork for these companies. He stated that it's always, for example, if you choose Millennium Engineers, now ift they were to choose Millennium Engineer tonight, they would be the one for the rest of year or is this just specifically for this project. Bobby Salinas stated that it would be fori two years. He stated that it would be a single firm fortwo Commissioner Robert de la Garza motioned to select Millennium Engineering Group the city projects and a rotation for the subdivision. Mayor. Pro-tem. Pete Morales seconded the motion. L. Consideration and action to extend thei inter-local agreement with thel Hidalgo County Mr. Ozuna stated that for many years the Head Start Program has use the city's land there by the tennis courts at the Lions Park and every year they have the option to extend their contract by two Commissioner. Robert de la Garza motioned to approve to extend the inter-local agreement with the Hidalgo County HeadStartl Fegmpercarefctm. Mayor Diana Martinezseconded CITIZEN PARTICIPATION: Five minutes per person with no response from the City years ift the Commission wishes to do it that way. Motion carried. Head Start Program for the use of the land. years however it needs approval by the city commission. the motion. Motion carried. Commission. Residents must sign upi prior to the city meeting. ADJOURNMENT Mayor Diana Martinez adjourned the meeting. Mayor Diana Martinez ATTEST: Margot Salas, City Secretary ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY NEGOTIATED RESOLUTION BETWEEN CITY AND TEXAS GAS SERVICE ("TGS" OR "THE COMPANY") REGARDING THE COMPANY'S COST OF SERVICE ADJUSTMENT ("COSA") TARIFF FILING; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; REPEALING ANY PRIOR ORDINANCES INCONSISTENT WITH THIS ORDINANCE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND THE CITY'S OF TEXAS, ("CITY") APPROVING A LEGAL COUNSEL. WHEREAS, the City of Texas ("City") is a gas utility customer of Texas Gas Service ("TGS" or "the Company"), and a regulatory authority with an interest in the rates and charges ofTGS; and WHEREAS, the City and other municipalities within the Rio Grande Valley Service Area ("RGVSA") and TGS worked collaboratively to develop the Cost of Service Adjustment ("COSA") Tariff which allows for an expedited comprehensive rate review process for three years; and WHEREAS, the COSA Tariff contemplates reimbursement of the City's reasonable expenses associated with COSA applications; and WHEREAS, on or about March 12, 2018, TGS filed with the City a COSA Tariff which would permit the TGS to implement annual rate changes to the Company's RGVSA expenses, revenues, and plant investment beginning in August, 2018, without the need for filing a formal Statement of Intent to Increase Rates; and WHEREAS, the City coordinated a review of the Company's COSA Tariff and designated attorneys and consultants to resolve issues in the Company's COSA Tariff; and 678/42/7586670 WHEREAS, the City's attorneys and consultant recommend that the City approve the COSA Tariff which is attached; and WHEREAS, the negotiated resolution of the Company's COSA Tariff filing is in the public interest. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF TEXAS: Section 1. That the City Council finds that the Cost of Service Adjustment Tariff is reasonable and the new tariff attached to this Ordinance is just and reasonable and is hereby adopted. Section 2. That to the extent any resolution or ordinance previously adopted by the Council isi inconsistent with this Ordinance, it is hereby repealed. Section 3. That the meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 4. That ifany one or more sections or clauses ofthis Ordinance is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Ordinance and the remaining provisions of the Ordinance shall be interpreted as ifthe offending section or clause never existed. Section 5. That tariff attached to this Ordinance is effective as of April 16, 2018. Section 6. That a copy of this Ordinance shall be sent to TGS, care of Stephanie Houle, Managing Director, at 1301 S. Mopac Expressway, Suite 400, Austin, Texas 78746, and to Thomas Brocato, General Counsel to the City, at Lloyd Gosselink Rochelle & Townsend, P.C., 801 Congress Avenue, Suite 1900, Austin, Texas 78701. 678/42/7586670 2 PASSED AND APPROVED this day of 2018. Mayor ATTEST: City Secretary APPROVED AS TOFORM: City Attorney 678/42/7586670 3 Model Staff Report in Support ofTGS COSA Tariff Ordinance Background On March 12, 2018, Texas Gas Service Company, a Division of ONE Gas, Inc., ("TGS" or "Company") filed with the Cities a Cost of Service Adjustment ("COSA") Tariff within the incorporated areas of the Rio Grande Valley Service Area ("RGVSA"). On February 1, the Company provided an initial draft of a proposed COSA containing new language for consideration. Attorney, Thomas Brocato, and consultant, Karl Nalepa, were hired by the of McAllen to review the TGS draft filing and negotiate a revised COSA Tariff with City the Company. Purpose of the COSA The Texas Legislature allows gas utilities to annually adjust rates based on changes to invested capital. That statutory provision is referred to as the Gas Reliability Infrastructure Program ("GRIP"). In a GRIP proceeding, cities are not allowed to intervene at the Railroad Commission, cannot challenge the reasonableness of any investment, and may not recover rate case expenses. In 2009, RGVSA Cities negotiated a COSA tariff as a three year experimental substitute for the GRIP process. Finding the COSA process to be mutually beneficial, the COSA process was renewed at the end oft the experiment. In 2012, Cities and TGS agreed to a revised COSA tariff which expired in 2016. TGS filed a Statement of Intent Rate Proceeding in RGVSA cities in 2017. This tariffi is a new revised COSA Tariff negotiated between TGS and cities. The new tariff will become effective thirty-five days from the date of filing in the Cities, or April 2018. 16, As set forth in the COSA Tariff, TGS would submit by May 1 of each year a COSA filing that establishes the proposed annual adjustment (up or down) that would be effective the first billing cycle of August each year. This COSA Tariff would be authorized for a period of three years, effective the first billing cycle of August 2018 and shall automatically renew for successive annual periods unless either the Company or City gives written notice to the contrary by February 1,2021, or February lofeach succeeding year. Resolution of the Draft COSA Filing Cities' consultant Karl Nalepa recommended adjustments to the Company's draft COSA Tariff. Settlement discussions resulted in TGS agreeing to: 1. 3. Change the initial period from 1 year to 3 years; Charge, with the excess applied to the Commodity Charge; Lower the annual rate adjustment capi from 6%1 to 5%; 2. Apply the first $.50 of the residential rate adjustment to the residential Customer 678/42/7587325 4. Apply the annual rate adjustment cap to the total Commodity Charge rather than only operating expenses; and 5. Calculating cash working capital ("CWC") using lead/lag days from the most recent RGVSA rate case rather than just setting CWC to $0. EXPLANATION OF "BE IT ORDAINED" PARAGRAPHSINT THE ORDINANCE Section 1. The paragraph finds the COSA Tariff reasonable and adopts the tariff. Section 2. This paragraph repeals any prior City action that might be inconsistent with the new tariffs adopted by the Council. Section 3. This paragraph recites compliance with the Open Meetings Act. Section 4. This paragraph is a typical savings clause, preserving the remaining provisions of the Ordinance should any one provision be determined to be invalid. Section 5. The tariff will become effective as of April 16, 2018. Section 6. This paragraph requires that an adopted and signed copy oft the Ordinance be sent tot the Company and general counsel to the City. RECOMMENDATION The City staff recommends adoption of the Tariff. 678/42/7587325 2 Luciano Ozuna, Jr From: Sent: To: Subject: Thomas Brocato tbiocateglewim.com, Friday, March 9, 201811:30AM Thomas Brocato TGS RGVSACOSA For several years, TGS has had a Cost of Service Adjustment ("COSA") clause within their Rio Grande Valley Service Area. The COSA is an annual expedited limited rate increase. On February 1, the Company provided an initial draft ofa proposed COSA containing new language for our consideration. The City ofMcAllen authorized us to review the proposal and submit changes. We hired a consultant to review the proposed COSA and after several rounds ofnegotiations, we have reached a settlement with the Company. We succeeded in changing several terms, including: 1. Changing the initial period from 1 year to 3 years; 2. Applying the first $.50 ofthe residential rate adjustment to the residential Customer Charge, with the excess applied to the Commodity Charge. 3. Lowering the annual rate adjustment cap from 6% to 5%; 4. Applying the annual rate adjustment cap to the total Commodity Charge rather 5. Calculating cash working capital (CWC) using lead/lag days from the most recent RGVSA rate case rather than just setting CWC to $0. than only operating expenses; and TGS will file the COSA tariff with the cities next week. You will have 35 days to approve the tariff. We will provide you with resolutions once we see what they filing. The first filing under the new tariffwill be made with the cities no later than May 1, with rate adjustments to be effective for meters read on or after the first billing cycle of August each year. Please contact me ifs you have questions or concerns. Thomas THOMASL. BROCATO Partner 512-322-5857 Direct 512-914-5061 Cell Lloyd Gosselink Rochelle & Townsend, P.C. 816 Congress Ave., Suite 1900, Austin, TX78701 www.glawfirm.com I (512)322-5800 News I VCard IE Bio AGREEMENT FOR ENGINEERING SERVICES STATE OF TEXAS COUNTY OF HIDALGO THIS AGREEMENT made, entered into and executed the day of March 2018, by and between the CITY OF ALAMO, TEXAS, hereinafter called the "Owner", acting herein, by and through its Officials who are duly authorized sO to act for and in behalf of said Owner, and CRUZ-HOGAN CONSULTANTS, INC., hereinafter called the "Engineer", acting herein, by and through its officers, who are duly authorized so to act for and in behalf of said Engineer. Whereas the City of Alamo intends to have professional engineering services performed in making improvements to the City's Water Treatment Plant Facilities and the City of Alamo hereby authorizes the Engineer to provide design and construction phase services. PROJECT DESCRIPTION The Project will generally consist of planning, design and preparation of plans and specifications for repairs and rehabilitation to the existing Water Treatment Plant Facility NOW, THEREFORE, the Owner and the Engineer, in consideration of the mutual covenants and components. Such work sO authorized is hereinafter called "the Project". agreements herein contained, do mutually agree as follows: SECTIONI- EMPLOYMENT OF ENGINEER The Owner authorizes the Engineer to provide required design and construction phase services The Owner agrees to employ the Engineer, and the Engineer agrees to perform professional engineering services in connection with the Project as stated in PART I- SCOPE OF SERVICES and for the compensation set forth in PART II - BASIS FOR COMPENSATION for the Project. FOR ENGINEERING SERVICES, attached herewith as Attachment No. 1. SECTION II- STANDARD TERMS AND CONDITIONS: 1. STANDARD OF CARE: Services shall be performed in accordance with the standard of professional practice ordinarily exercised by the applicable profession at the time and within the locality where the Services are performed. Professional services are not subject to, and Engineer cannot provide any warranty of guarantee, express or implied, including warranties or guarantees contained in any uniform commercial code. Any such warranties or guarantees contained in any purchase orders, requisitions or notices to proceed issued by Owner are specifically objected to. Agreement for Engineering Services City of Alamo - Water Treatment Plant Improvements Page 1 of11 2. CHANGE OF SCOPE: The scope of Services set forth in this Agreement is based on facts known at the time of execution of this Agreement, including, if applicable, information supplied by Owner. For some projects involving conceptual or process development services, scope may not be fully definable during initial phases. As the Project progresses, facts discovered may indicate that scope must be redefined. Engineer will promptly provide Owner with an amendment to this Agreement to recognize such change, which shall be deemed approved if not objected to within 30 SAFETY: Engineer has established and maintains corporate programs and procedures for the safety of its employees. Unless specifically included as a service to be provided under this Agreement, Engineer specifically disclaims any authority or responsibility for general job site safety and safety of persons other than Engineer employees. DELAYS: If events beyond the control of Engineer, including, but not limited to, fire, flood, explosion, riot, strike, war, process shutdown, act of God or the public enemy, and act or regulation of any government agency, result in delay to any schedules established in this Agreement, such schedule shall be amended to the extent necessary to compensate for such delay. In the event such delay exceeds 30 days, Engineer shall be entitled to an extension of time equal to: the delay and an equitable adjustment in TERMINATION/SUSPENSION: Either party may terminate this Agreement upon 30 days written notice to the other party. Owner shall pay Engineer for all Services, including profit relating to the project, rendered prior to termination, plus any expenses In the event either party defaults in obligations under the Agreement (including Owner's obligation to make the payments required hereunder), the non-defaulting party may, after 7 days written notice stating its insertion to suspend performance under the Agreement if cure of such default is not commenced and deliberately continued and failure of the defaulting party to commence cure within such time limit and diligently OPINIONS OF CONSTRUCTION COST: Any opinion of construction costs prepared by Engineer is supplied for the general guidance of Owner only. Since Engineer has no controls over competitive bidding or market conditions, Engineer cannot guarantee the accuracy of such opinions as compared to contract bids or actual costs to Owner. RELATIONSHIP WITH CONTRACTORS: Engineer shall serve as Owner's professional representative for the Services, and may make recommendations to Owner concerning actions relating to Owner's contractors, but Engineer specifically disclaims any authority to direct or supervise the means, methods, techniques, sequences or procedures of CONSTRUCTION REVIEW: For projects involving construction, Owner acknowledges that under generally accepted professional practice, interpretations of construction documents in the field are normally required, and that performance of construction- related service by the design professional for the project permits errors or omissions to be identified and corrected at comparatively low cost. Owner agrees to hold Engineer harmless from any claim resulting from performance of construction-related services by days of receipt by Owner. 3. 4. compensation. 5. oft termination. continue, suspend performance under this Agreement. 6. 7. construction selected by Owner's contractors. 8. persons other than Engineer. Agreement for Engineering Services City of Alamo- - Water Treatment Plant Improvements Page 2 of11 9. INSURANCE: Engineer will maintain insurance coverage for Professional Comprehensive General, Automobile, Worker's Comprehension, Employer's Liability and Professional Errors and Omissions in amounts accordance with legal and Engineer business requirements. Certificates evidencing such coverage will be provided to Owner upon request. For projects involving construction, Owner agrees to require its construction contractor, if any, to include Engineer as an additional insured on its policies relating to the Project. Engineer's coverage's referenced above shall, in such 10. INDEMNITIES: To the fullest extent permitted by law, Engineer shall indemnify and save harmless Owner from and against loss, liability, and damages sustained by Owner, its agents, employees, and representatives by reason of injury or death to persons or damage to tangible property for this Project caused directly by the willful misconduct or failure to adhere to the standard of care described in Section Il-Paragraph 1 above of 11. LIMITATIONS OF LIABILITY: No employee or agent of Engineer shall have individual case, be excess over contractors primary coverage. Engineer, its agents or employees. liability to Owner. Owner agrees that to the fullest extent permitted by law, Engineer's total liability to Owner for any and all injuries, claims, losses, expenses or damages whatsoever arising out of or in any way related to the Project or this Agreement from any causes including, but not limited to, Engineer's negligence, errors, omissions, strict liability, or breach of contract shall not to exceed the total compensation received by Engineer, under this IN NO EVENT AND UNDER NO CIRCUMSTANCES SHALL ENGINEER BE LIABLE TO OWNER FOR CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL OR 12. ACCESS: Owner shall provide Engineer safe access to any premises necessary for 13. REUSE OF PROJECT DELIVERABLES: All work product, including notes, calculations, reports, plans and specifications will become the property of Owner. Reuse of any documents or other deliverables, including electronic media, pertaining to the Project by Owner for any purposes other than that for which such documents or deliverables where originally prepared, or alteration of such documents or deliverables without written verification or adaptation by Engineer for the specific purpose intended, shall be at Owner's risk. Owner agrees to defend, indemnify, and hold harmless Engineer from all claims, damages, and expenses (including reasonable litigation costs), arising out of 14. AMENDMENT: This Agreement, upon execution by both parties hereto, can be 15. ASSIGNMENT: Except for assignments (a) to entities which control, or are controlled by, the parties hereto, or (b) resulting from operation of law, the rights and obligations of this Agreement cannot be assigned by either party without written permission of the other party. This Agreement shall be binding upon and insure to the benefit of any Agreement. PUNITIVE DAMAGES. Engineer toj provide the Services. such reuse or alteration by Owner or others acting through Owner. amended only by a written instrument signed by both parties. permitted assigns. Agreement for Engineering Services City of Alamo - Water Treatment Plant Improvements Page 3 of11 16. STATUTES OF LIMITATION: To the fullest extent permitted by law, parties agree that, except for claims for indemnification, the time period for bringing claims under this 17. PREVAILING PARTY LITIGATION COSTS: In the event any actions are brought to enforce this Agreement, the prevailing party shall be entitled to collect its litigation costs 18. NO WAIVER: No waiver by either party of any default by the other party in the performance of any particular section of this Agreement shall invalidate any other section of this Agreement or operate as a waiver of any future default, whether like or 19. NO THIRD-PARTY BENEFICIARY: Nothing contained in this Agreement, nor the performance of the parties hereunder, is intended to benefit, nor shall inure to the 20. SEVERABILITY: The various terms, provisions and covenants herein contained shall be deemed to be separate and severable, and the invalidity or unenforceability of any of them shall not affect or impair the validity or enforceability of the remainder. 21. AUTHORITY: The persons signing this Agreement warrant that they have the authority to sign as, or on behalf of, the party for whom they are signing. Agreement shall expire one year after Project completion. from the other party. different in character. benefit of, any third party, including Owner's contractors, ifany. APPROVED: Owner By Diana Martinez Mayor APPROVED: Engineer By_ CITY OF ALAMO, TEXAS CRUZ-HOGAN CONSULTANTS, INC. Orlando S. Cruz, P.E. President Agreement for Engineering Services City of Alamo- V Water Treatment Plant Improvements Page 4 of11 Attachment No. 1 PARTI SCOPE OF SERVICES A. PROJECT CITY OF ALAMO WATER TREATMENT PLANT IMPROVEMENTS PROJECT B. PROJECT BACKGROUND The intent of the proposed project is to make improvements to the City of Alamo's existing Water Treatment Plant Facility. The plant is located on South 9th Street, just south of the West Fannin Avenue intersection. The water treatment plant improvements include: 1) Repairing and re-painting of exterior of existing metal claricones basin structures 2) Repairing and re-painting ofi interior of existing metal claricones basin structures 3) Repairing and re-painting of exterior of existing metal filter structures 4) Repairing and re-painting of interior of existing metal filter structures 5) Repairing and re-painting of splitter box piping and structure 6) Repainting existing claricone and filter valves, piping, etc. Towards this effort, the City of Alamo (the City), upon execution of the contract, engages the services of Cruz-Hogan Consultants, Inc., (the Engineer) to perform engineering services necessary to accomplish the tasks indicated below. 1) Prepare design. plans, specifications, and contract documents for the project as necessary to make improvements to the existing wâter treatment plant, as 2) Project is planned to be completed in two phases. Construction Improvements must be completed during the winter months when water production demands are at their lowest. Phasing is necessary due to the need to shut down portions of the plant while repair work is being completed and due to the inability to Phase One Improvements are proposed to be completed in the December 2018 through February 2019 time frame, and Phase Two Improvements are proposed to be completed in the December 2019 through February 2020 time frame. Phase One Improvements Project Cost is estimated to be approximately Phase Two Improvements Project Cost is estimated to be approximately detailed above. complete the entire project during a single winter. $361,365.00. $366,770.00. Agreement: for Engineering Services City of Alamo - Water Treatment Plant Improvements Page 5 of11 C. BASIC ENGINEERING SERVICES PROJECT PLANNING 1. a. CONDUCT KICKOFF MEETING AND PRELIMINARY CONFERENCE Participate in a kickoff meeting with the City's project team. Establish project objectives and identify a specific and detailed scope of work for the project. The intent of the kickoff meeting is to develop a detailed and complete description for each of the proposed projects elements. Attend preliminary conferences with the City and other appropriate officials regarding the requirements of the project, and acquire available, relevant Confirm the proposed phasing for the improvements, establish a project schedule, and prepare preliminary cost projections for the improvements. background data. b. 2. PROJECT DESIGN The following scope of work defines the work tasks necessary for the Engineer to perform the final design and the preparation of Contract Documents, consisting of Drawings and Specifications, for construction of the indicated system improvements. Design services consist of those tasks which are essential to the completion of a biddable set of Contract Documents for each of the projects. a. PREPARATION OF DRAWINGS The Engineer shall prepare detailed Drawings for the construction of each of the projects indicated, using the Engineer's standard engineering approach for design, level of detailing and presentation on the Drawings. The Drawings shall be produced on the Engineer's standard 11 X 17 inch Paper with borders and title blocks to the Engineer's standard. A preliminary drawing list will be prepared during the Preliminary Design and will be updated in the Final Design. PREPARATION OF SPECIFICATIONS b. The Engineer shall prepare the General Conditions, Supplementary General and Technical Specifications. Specifications shall be prepared in the Construction Specifications Institute (CSI) format consistent with the Engineer's latest version. Specification Divisions shall be developed from the Engineer's in-house guide Specifications. PROGRESS SUBMITTALS C. Progress submittals for the City's review shall be made at the Design The Design Development submittal (approximately 50 percent complete) shall include drawing of all major elements of the proposed facilities to be Development and Final Design stages. Agreement: for Engineering Services City of Alamo - Water Treatment Plant Improvements Page 6 of11 constructed. This submittal will also include preliminary copies of all technical specifications to be used on the specific Project. The City's review comments shall be returned to the Engineer within 21 days of receipt of the Design Development submittal. Upon receipt of comments from the City, the Engineer will meet with the City to resolve outstanding design issues and incorporate substantive comments. Input from the City shall be combined with the results of the Engineer's internal design checking and Technical Review Committee and the "Design Freeze" shall be established. Any significant changes to the Project design following Design Freeze typically require much rework. Should this occur, the changes will be evaluated and may warrant a contract The Final Design submittal (approximately 90 percent complete) shall include the full set of Contract Documents, consisting of the Specifications and Drawings. During the same period that the City reviews the documents, the submittal shall also be subjected to the Engineer's internal design checking procedures. The City's review comments shall be returned to the Engineer within 21 days of receipt of the Final Design submittal. The City shall consolidate review comments on one set of submittals. Upon receipt of comments from the City, the Project team shall meet with the City to resolve outstanding design issues and incorporate substantive comments.. Input from the City will be combined with the results of the Engineer's internal design checking. Upon incorporation of the appropriate review comments, the Contract COMPLETION OF FINAL CONTRACT AND BIDDING DOCUMENTS The Engineer shall provide three sets of Plans, Specifications, Contract Documents, and Bidding Documents to the City as a Final Submittal. amendment. Documents shall be considered to be "bid-ready." d. D. SPECIAL SERVICES 1. EVALUATION OF THE OF THE WATER PLANT SCADA SYSTEM Engineer shall evaluate the existing Water Treatment Plant SCADA system and provide a report listing the SCADA deficiencies description of recommended needs and improvements. The evaluation will generate a Scope of Work which will determine which water plant instrumentation will require replacements and upgrades. Report shall include preliminary cost estimates of recommended improvements. Evaluation of the Water Treatment Plant SCADA system will be done by an electrical engineering sub-consultant retained by the Engineer. 2. CONSTRUCTION, AND COATING INSPECTIONS The Engineer shall perform Construction and Coating Inspections when deemed necessary, and will be billed to the City at the Engineer's standard hourly rate. Agreement: for Engineering Services City of Alamo - Water Treatment Plant Improvements Page 7 of11 E. ADDITIONAL SERVICES Additional Services are those services which are not included in the Basic Services or Special Services, but may be needed at some time during the completion of the project. These Additional Services will be authorized on an as-required basis by the City with the fee for the service being negotiated at the time of the request. The City will issue a separate notice to proceed for each additional service requested. 1. 2. Reproduction of additional reports or Contract Documents not specifically Assistance to the City as an expert witness in any litigation with third parties, arising from the development or construction of the Project including preparation Revising previously accepted studies, reports, design documents or Contract Documents when such revisions are required by changes in laws, rules, regulations, ordinances, codes or orders enacted subsequent to the preparation of such studies, reports, and documents, that are due to causes beyond Investigations involving detailed considerations of operations, maintenance and identified as Basic or Special Services. ofe engineering data and reports. 3. Engineer's control. overhead expenses. 4. 5. Any work not identified as Basic or Special Services above. F. SERVICES TO BE PROVIDED BY THE CITY 1. 2. 3. 4. Provide record drawings of existing facilities. Cost of advertisement of Invitation to Bidders. Cost of any agency permitting charges. Cost of all advertisement charges. Agreement for Engineering Services City of Alamo - Water Treatment Plant Improvements Page 8 of11 PART II BASIS FOR COMPENSATION FOR ENGINEERING SERVICES the Engineer shall receive, the fees hereinafter set forth below. For and in consideration of the services to be rendered by the Engineer, the City shall pay, and Compensation to Engineer for the engineering services is in accordance with the project budget Payment for engineering services shall be based on a lump sum amount and shall be payable to Where the compensation for engineering services is based upon a lump sum amount, partial payments shall be made monthly to the Engineer in proportion to the part of the services which has been accomplished, as evidenced by monthly statements submitted by the Engineer and Any payments, not in dispute, not made within thirty (30) days on statements rendered in accordance with the above provisions, shall be subject to a monthly charge in the amount of one and one-half per cent (1-1/2%) of the unpaid balance beginning thirty (30) days from the date of prepared by the Engineer. the Engineer for the services performed. approved by the City. the statement. A. BASIC SERVICES 1. PHASE IPROJECT broken down as follows: Total Basic Services Engineering Fees for Phase I are $30,000.00 and are a. Engineering Design Phase Services basis in the amount stated below: Total Design Phase Services Fee: Construction Phase Services The compensation for Design Phase Services shall be on a Lump Sum $22,000.00 b.: The compensation for Construction Phase Services shall be on a Lump Sum basis in the amount stated below: Total Construction Phase Services Fee: $8,000.00 Agreement for Engineering Services City of Alamo Water Treatment Plant Improvements Page 9 of11 2. PHASE II PROJECT broken down as follows: Total Basic Services Engineering Fees for Phase II are $30,000.00 and are a. Engineering Design Phase Services basis ini the amount stated below: Total Design Phase Services Fee: Construction Phase Services The compensation for Design Phase Services shall be on a Lump Sum $22,000.00 b. The compensation for Construction Phase Services shall be on a Lump Sum basis ini the amount stated below: Total Construction Phase Services Fee: $8,000.00 B. SPECIAL SERVICES 1. EVALUATION OF THE EXISTING WATER TREAMENT PLANT SCADA SYSTEM The fee amount for the evaluation will not exceed $9,350.00. 2. CONSTRUCTIONAND COATING INSPECTIONS Construction and Coating Inspections are to done by the Engineer when deemed necessary, and will be done at the Engineer's standard hourly charge rate of $60.00 per Estimated Cost for Construction and Coating Inspections is approximately $15,000.00 The final cost will be based on actual inspection hours required for each Project Phase. hour. for Phase land $15,000.00 for Phase II. B. ADDITIONAL SERVICES Itisr mutually understood that the services described in Part/- Section E are not included int the Engineer's Basic Services described above, and if the Owner elects for the Engineer to provide such services, they are to be considered as "Additional Services" and will be compensated for on a per diem basis, with all labor invoiced at salary cost of personnel times a multiplier of 2.5, and reimbursement for direct non-labor and subcontract expenses at invoice cost plus 10 per cent for handling. Agreement for Engineering Services City of Alamo - Water Treatment Plant Improvements Page 10of11 C. TIME FOR COMPLETION The Engineer will work expeditiously to complete the services described in the shortest length of time possible. Itis currently anticipated that the Design Services with the approval of the City will be completed within 24 months of receipt of authorization. 1. PHASEI Itis projected that preliminary design documents for Phase One will be submitted to the City by May 1, 2018, and total design phase will be completed by July 1, 2018. PHASE II 2019. 2. Itis projected that preliminary design documents for Phase Two will be submitted to the City by May 1, 2019, and total design phase will be completed by July 1, Agreement: for Engineering Services City of Alamo Water Treatment Plant Improvements Page 11 of11 CITY OF ALAMO JANITORIAL SERVICES BID OPENING: MARCH07, 2018 @ 3:00 P.M. TABULATION MONTHLY SERVICEFEE $ 3,500.00 ANNUAL TOTAL 42,000.00 COMPANY 1. Bidl Texas Online, Inc. dba Clean Fixx Ms. Rose Settle 39001 N.1 10th Street, Ste. 910 McAllen, TX 78501 P: (956) 992-0332 2. M&R's Elite. Janitorial Solutions Mr.F Felipe Romero, Jr. 20526 Broughwood Circle Katy, TX: 77449 P:( (832)647-1689 3. C&CC Cleaning &. Janitorial Ms. Cecilia Salinas POE Box 165 San. Juan, TX 78589 P: (956)3 330-3061 4. WCDE Enterprises, LLC Ms. Tanya Fullington 28150 N. Alma Schooll Pkwy# #1 103-452 Scottsdale, AZ 85262 P:(480)415-3416 5. Hubb's Properties, LLC Mr. Burnell KN Moliere 37093 White Road Prarieville, LA 70769 P:(504).4 450-7999 6. Action. Janitorial Service Ms. Linda Ruiz 509E. Schunior Street Edinburg, TX 78541 P:(956)380-1771 7. Amani, Inc. Kalo Amani 2950 Old Spanish Trail# #301 Houston, TX 77054 P:( (855)4 436-9600 8. Maldonado Nursery & Landscaping Mr. Martinl L. Salazar 5091 North Beddoes Rd. LaF Feria, TX 78559 P:( (956)277-0264 9. Treco Services, Inc. Ms. Deborah L. Trevino 9041 N. Zarzamora San Antonio, TX 78207 P:(210)432-4100 10. Prime Cleaning Services, LLC Ms. Iris Sandoval 2126 EI Camino Brownsville, TX 78520 P:(956)230-7297 $ 3,943.16 47,317.00 $ 4,404.47 52,853.00 $ 4,795.00 57,540.00 $ 5,019.91 60,238.00 $ 5,255.34 63,064.00 $ 6,106.68 73,280.00 $ 6,815.00 81,780.00 $ 7,536.00 90,432.00 $ 7,656.00 91,872.00 Luciano Ozuna, Jr From: Sent: To: Cc: Subject: Robert L. Salinas balinaseaamoleasore Thursday, March 8, 20183:58PM Luciano Ozuna,Jr 'Crystal Garza" CCA Agenda Item - FM 907 Update Good afternoon Sir, Ireceived a phone call from Comm. Pete Morales asking for an item to be placed on the 3-20-18 CC the update on the FM907 widening project. agenda for Crys-tal-FYI Thx, Bobby Salinas Planning Director City of Alamo 420 N. Tower Rd. Alamo, TX 78516 (956)787-0006 Please note that any correspondence, such as e-mails or letters, sent to become a public record and made available for public/media review. City Staff or Officials City may RELEASE OF UTILITY EASEMENT THE STATE OF TEXAS $ COUNTY OF HIDALGO S KNOW ALL MEN BY THESE PRESENTS That the CITY OF ALAMO, al Municipal corporation ofHidalgo County, for good and valuable consideration, the receipt and sufficiency ofwhich is hereby acknowledged, does hereby RELEASE, ABANDON, AND DISCHARGE any and all right, title, or interest which it might A ten foot (10) utility easement dedicated by subdivision plat along the west side ofLot 44, have by virtue oft the following described easement(s) Widen Subdivision, Unit No. 2, H.C.M.R., Volume 20, Page 192. EXECUTED this day of 2018. By: City of Alamo, a Municipal Corporation By: Luciano Ozuna, City Manager ACKNOWLEDGEMENT STATE OF TEXAS COUNTY OF HIDALGO BEFORE ME, the undersigned authority, on this day personally appeared Luciano Ozuna, City Manager of the City of Alamo, known to me tol be the person whose name iss subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purpose and consideration herein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2018. Notary Public in and for the State ofTexas After Recording Please Mail to: Margot Salas, City Secretary City of Alamo 420 N. Tower Rd. Alamo, TX 78516 Luciano Ozuna, Jr From: Sent: To: Cc: Subject: Attachments: Good afternoon Sir, Robert L. Salinas bsalinaseasmoleasoipe Friday, March 9, 20183:30PM Luciano Ozuna,J Jr 'Crystal Garza' CC Agenda Item Release of Easement - Lot 44, Widen Subdivision Release of Easement Widen Subd..doc Iwould like to place this item on the next City Commission agenda. This release of easement would complete the process oft the side setback variance that was granted under the applicant Felix Hernandez at the CC: held 3-6-18. Pleas let me knowi if you have any questions on this. meeting Thx, Bobby Salinas Planning Director City of Alamo 4201 N. Tower Rd. Alamo, TX 78516 (956) 787-0006 Please note that any correspondence, such as e-mails or letters, sent to City Staff or City Officials become a public record and made available for public/media review. may Luciano Ozuna, Jr From: Sent: To: Cc: Subject: Attachments: Mr. Ozuna, Rafael Tapia rapa@alamotexasorg" Friday, March 16, 20189:58AM Luciano Ozuna msalas@alamotexasorg Agenda Items EDC Activity Report 2018-03.pdf; City Budget Amendment Request.pdf Ihave two items for the agenda. The first it's the activity report which my board has asked to be present to the City Commission. The second isi fora al budget amendment to the AEDC budget for $31,250. As you will recall the AEDC committed: $125,0001 to Medek LLCi in incentives. $93,750 has already been paid. Medek has requested the remaining balance. Mr. Garcia had stated that all thej jobs would be created in 2017, however this was not the case. So now the EDC is required to amend its budget to make the payment this fiscal year. Respectfully, Rafael Tapia Executive Director Alamo EDC rapacalamoteasorg 956-787-6622 Alamo ECONOMIC DEVELOPMENT CORPORATION 715E. Business 83 Alamo, Texas 78516 (956)7 787-6622 Office or (956) 787-7766 Fax March 15, 2018 Luciano Ozuna City Manager City of Alamo 420 N. Tower Road Alamo, Texas 78516 Re: Budget Amendment of $31,250 for Medek LLC Dear Mr. Ozuna, The Alamo Economic Development Corporation (AEDC) Board of Directors reviewed an incentive payment request from Medek LLC for the remaining balance of its incentive award in the amount of $31,250.00 at our regular meeting held March 14, 2018. The Board motioned to approve the request subject to the company, providing two (2) quarterly reports and pay stubs perj job created as stipulated in the development agreement Section 2.00, item Since the majority of the jobs for which incentive payment is being sought were created by January 18, 2018, the company will need to provide reports and pays stubs for thet following quarters ending March 31 and. June 30. This The current budget did not make an allotment for Medek LLC. There was an open PO tied to last year's budget for this expense. It was believed Mr. Garcia would complete his employment obligations before December 31, 2017. However, this was not the case. The Finance Department closes the book on previous budget cycle at the end of the first quarter of ther new fiscal year to conduct the audit. Therefore, al budget amendment must be approved to The AEDC Board of Directors approved the budget amendment at our regular meeting held March 14, 2018. We Ify youl have any questions or concerns regarding this matter please contact my office at (956) 787-6622 or via email (b) on page 2oft the agreement. will resulti inj payment tol be madei in. July 2018. meett this obligation this fiscal year. respectfully: ask the City Commission for concurrence in order to meet this obligation. at tapa@alamotexasorg Respectfully, Rafael. BHT J.Tapia Executive Director This Institution is an Equal Opportunity Provider and Employer Alomo ECONOMIC DEVELOPMENT CORPORATION 715 E. Business 83 Alamo, Texas 78516 (956) 787-6622 Office or (956)7 787-7766Fax March 9, 2018 Alamo Economic Development Corporation Monthly Activity Report: February 2018 Revolving Loan Fund Program The program has made a total of 10 loans totaling $1,405,000 and obligating all $1,162,500 in initial funds. The program has 8 active loans. All current loans fall under the IRP. As of March 1, 2018, City of Alamo Finance Department reports: IRPI Balance: $481,518.55 RBEG Balance: $182,917.54 Total RLF Balance: $664,436.09 Balance Owed: $548,774.36 (as of February 28, 2018) Soleil Rehabilitation and V-Day (Feb 20) As oft thel March 2, 2018, the following loan accounts are considered delinquent Activity The following activity is for the period covering February 1, 2018 to February 28, 2018. For the reporting Lisseth Deleon (Nov): Having stated in December that she was still interested, but wanted to include her 2017 tax return in order to strengthen her application. There has been no progress made onj part of the applicant. Jose I. Torres (Dec): The ExD followed up with Mr. Miguel Gomez to inquire if the business was still interested in the loan program. Mr. Gomez: stated that they were. Despite stating they would begin working on period, the program had no new contact. the application in. January, no progress has been made on part oft the applicant. Program Maintenance Soleil Rehab: 2/20/18: Due date; payment not made 2/22/18: Follow up via email reminding borrower of payment due date and end of grace period on 3/2/18 2/23/18: Follow up with co-signor who stated payment would be made following week. Poncho's Central Kitchen: Director that afternoon 2/9/18: ExD: sent payment reminder via email; Payment was dropped off at AEDC office and given tol Finance 1 Program Promotion During thei month of] February, the program was promoted vias social media and an email blast. Imagine It Studios is promoting it vial Facebook and" Twitter Promoted via Valley Business Report print issue and E-Brief Staff developed pamphlets for Micro-Loan Program Email blast: 2/9 and 2/12 Workshop March 29" 12:00 PM to 1:00PM Staff plans to host a workshop with presentations on the RLF program, Texas Rural Communities loan program and the Micro-Loan Program. A representative from the Small Business Development Center will also present on SBDC services. The workshop has been posted on Facebook. By the time of this report, staff willl have done at least two email blasts tol local businesses andi informed the Chamber. Program Compliance USDA LINCI Reports: Report was submitted 1/03/18. Next report due 4/30/18 USDA AUDIT: Submitted. Audit to USDA Areal Director 3/9/17. Next report due 3/2018 USDA RBEG: Submitted 12/27/2017; Next Report Due 1/15/2019 Property Taxes: All borrowers with escrow fees have had their property taxes paid IRP Proposed Budget: Submitted 8/24/17, Next Due Date 7/31/2018 USDA Compliance Visit: 2/15/18: Roel Gomez, USDA Area Director and! Roberto Rodriguez, Area! Specialist and Compliance Officer stopped by the office to do a compliance visit. They were provided copies of bank statements, fidelity bonds for Finance Department, and samples of our program outreach. Int terms of ADA compliance, they may request that thel EDC change thel kitchen faucet into al levers style water handles and cover up the bottom part ofs sink. 2/28/18: Received letter form USDA dated 2.26.18 regarding the need to stripe the parking lot, change kitchen faucet, and cover/insulate drainage pipes forl kitchen sink, and deaf assistance memo. 2Page Aloumo ECONOMIC DEVELOPMENT CORPORATION 715E. Business 83 Alamo, Texas 78516 (956) 787-6622 Office or (956)787-7766Fax March 9,2018 Alamo Economic Development Corporation Monthly. Activity Report: February 2018 Revolving Loan Fund Program The program has made a total of 10 loans totaling $1,405,000 and obligating all $1,162,500 ini initial funds. The program has 8 active loans. All current loans fall under thel IRP. As ofMarch 1,2018, City of Alamo Finance Department reports: IRPI Balance: $481,518.55 RBEGI Balance: $182,917.54 Total RLF Balance: $664,436.09 Balance Owed: $548,774.36 (as of February 28, 2018) Soleil Rehabilitation and V-Day (Feb2 20) As of thel March 2, 2018, thei following loan accounts are considered delinquent Activity The following activity is for the period covering February 1, 2018 to February 28, 2018. For the reporting Lisseth Deleon (Nov): Having stated in] December that she was: still interested, but wanted to includel her 2017 tax return in order to: strengthen her application. There has been noj progress made on part of the applicant. Jose I. Torres (Dec): The ExD followed up with Mr. Miguel Gomez to inquire if the business was still interested in the loan program. Mr. Gomez: stated that they were. Despite stating they would begin working on period, the program had no new contact. the application in January, no progress has been made on part oft the applicant. Program Maintenance Soleil Rehab: 2/20/18: Due date; payment not made 2/22/18: Follow up via email reminding borrower of payment due date and end ofg grace period on 3/2/18 2/23/18: Follow up with co-signor who stated payment would be made following week. Poncho's Central Kitchen: Director that afternoon 2/9/18: ExD: sent payment reminder via email; Payment was dropped off at AEDC office and given tol Finance 1 Program Promotion During the month ofl February, the program was promoted vias social media and an email blast. Imagine It Studios is promoting it via Facebook and Twitter Promoted via Valley Business Report printi issue and E-Brief Staff developed pamphlets for Micro-Loan Program Email blast: 2/9 and 2/12 Workshop March 29th 12:00 PMt to 1:00PM Staff plans to host a workshop with presentations on the RLF program, Texas Rural Communities loan. program and the Micro-Loan Program. A representative from the Small Business Development Center will also present on SBDC services. The workshop has been posted on Facebook. By the time of this report, staff will have done at least two email blasts to local businesses and informed the Chamber. Program Compliance USDA LINC Reports: Report was submitted 1/03/18. Next report due 4/30/18 USDA AUDIT: Submitted Audit to USDA Area Director 3/9/17. Next report due 3/2018 USDA RBEG: Submitted 12/27/2017; Next Report Due 1/15/2019 Property Taxes: Alll borrowers with escrow fees havel had their property taxes paid IRP Proposed Budget: Submitted 8/24/17, Next Due Date 7/31/2018 USDA Compliance Visit: 2/15/18: Roel Gomez, USDA. Area Director andl Roberto Rodriguez, Area Specialist and Compliance Officer stopped by the office to do a compliance visit. They were provided copies of bank statements, fidelity bonds for Finance Department, and: samples of our program outreach. Ini terms of ADA compliance, they may request thatt thel EDC change thel kitchen faucet into a lever style water handles and cover upt the bottom part ofs sink. 2/28/18: Received letter form USDA dated 2.26.18 regarding the needt to stripe the parking lot, changel kitchen faucet, and cover/insulate drainage pipes for kitchen sink, and deaf assistance memo. 2]Page Economic Development Activity February 2018 Medek LLC: Medek LIC is a small distributor of paper products such as napkins, paper towels, plates, etc. This project calls for the construction ofaj facility that will include 12,000. SF warehouse and 1,850 SF office building. The business will establish a workj force of23 employees in Alamo, ofwhich. 101 will be new positions. No updates for February: 2018 Mr. Garcia did host a group of Site Selectors with thel European American Investment Council as part of the RSTEC Fam Tour oft the region on February 26. Mr. Garcia did submit a request for incentive payment 3/6/18 STHS: This project calls for 9,923 SF freestanding emergency center. It will establish 33j jobs. Currently, the expected construction completion date is October 2019, based on development agreement. Payments pending$250,000 No updates Micro-loan Program: Roel Gomez, USDA Rural Development Areal Director, provided letter authorizing the use ofl Revolved RBEG funds to fund loans as small as $1,000. This allows the AEDC to roll outt the Microloan programs ands set aside The current EDC Board consented to the roll out oft the program during the February 21 meeting. Roll out will $20,000 from the revolved RBEG funds. initiate during the month ofl March. Skilled Nursing Center: This project calls for skilled mursing home with 120-130 beds and 51,905 square feet of space. Touchstone facilities offer skilled nursing, long-term care, rehabilitation, memory care, behavioral care and respite care. Beyond an initial meeting with the ExD and the provision ofinformation on Winter Texans and medical ofices Work' is progressing at project site. Center is expected to open in early 2018. It will be called The Heights of City Staffinforms that Grand Opening/Ribbon Cutting may occur on April 5th. It has been pushed back from in the area, thej firm has made no contact to request incentives. Alamo, offering skilled nursing and rehabilitation services. the most recent date ofl March. 3]Page Project Backpack. RFI: This was an RFI by Next Move Group. t was looking, for 50,000 to 70,000 SF sitej foraf food packing business. Possible creation of331 to. 56j jobs over ai three year period. 2/2/18: Followed up with) Mr. Spamer re: Project Backpack 2/5/18: Followed up with Mr. Spamer Letty Reves, APIReal Estate: 2/9/18: Mr. Spamer informed ExDI he was no longer interested in thel RFI as he could not accommodate them. Ms. Reyes represents al local restaurant with headquarters in Alamo. The restaurant would like to expand their headquarters and incorporate a central kitchen facility. This project has an estimated project cost of$500,000 and the company expects to employ. 13-35 position over. 5j years with the central kitchen, 25 being newj jobs. 2/13/18: Letty Reyes, API Real Estate called the office regarding incentives. She stated she had a client interested in doing a central kitchen and wanted to know about incentives programs. The ExD explained the loan program and 4B incentive process. Ms. Reyes stated she was familiar with incentives having worked for 2/27/18: Ms. Reyes stopped by the office and dropped off incentive request packet that included application, Edinburg EDC: for 14 years. ExD: sent her a copy ofthe incentive guide via email. business plan, andi income tax fort the past two years (personal and business). 2/28/18: ExD began review of documents General Retail Recruitment: 2/5/18: Retail Lease Trac Broadcast to 257 contacts with a 22.6% view rate (58) 2/9/18: Met with Commissioner Medina potential available property 2/14/18: Met with] Ramiro Garza, new commercial development near expressway might pop up: soon; would EDC consider incentives; Mr. Garza said he would try to set up meeting following week 2/26/18: Participated in RSTEC FAM Tour; Five site selectors associated with the European American Investment Council (EAIC) got tour the industrial zoned areas of Alamo and visited with Mr. Dennis Garcia, Medek LLC. They toured the Medek warehouse and asked him about his distribution routes and suppliers. The full regional tour took place from Sunday afternoon through Tuesday morning. The EDC spent all day Monday (13 hours) with them visiting Palmview, Sullivan City, Starr County Foundation, 2/22 & 2/23: Prepared for RSTECI FAM Tour Alamo, Pharr Bridge, and McAllen EDC 4Page General Activities: Attended PSJA Steering Committee Mtg re: SOFI Study 2/2 Attended EDI Build Blocks: EDT's RFI Best Practices (Weslaco) 2/7 Attended Texas Association of Conventions & Visitors Bureaus (McAllen) 2/8 Attended RSTEC Monthly and Executive Committee Meeting (Weslaco) 2/8 Met with Arturo Salinas (Sales) Forged Technology Solutions 2/12 Met with Roberto Carranca (Marketing) KGBT/AZTECA 2/13 Attended SBA/PSJA Strategic Alliance Memorandum Event 2/14 Attended LRGVDC: RGV: 2020 Stakeholder Forum (Pharr).2/14 Prepared forms for Auditor 2/51 to 2/9 Attended City Meeting 2/6 Mety with PSJA CTE: staff2/9 Updated TransUnion account 2/12 Met Director Barron 2/15 Response to VIDA auditor questions 2/19 Researched Bonds 2/19-2/20 Met with Roberto Carranca 2/20 Met with. J. Escobedo re: HCSTED grant program 2/20 Auditors interviewed staff2/20 Select USA/JETRO webinar 2/22 Attended Murphy USA groundbreaking 2/23 Feb: Staff developed pamphlets on local programs and industry sectors Upcoming 2018) Events Alamo EDCI RLF Community Work Shops March 29 TEDC Economic Development Sales Tax Workshop (Tyler). April 13 TEDC Basic Economic Development Course (San Antonio). April 17-20 SEDC Meet the Consultants (Dallas) April 18-20 Urban County Conference (SPI) April 20-21 TEDCI Economic Development Sales Tax Workshop (Waco) May 4 TMLI Region 12 Conference (SPI) May 10-11 ICSC RECON (Las Vegas) May 20-23 Retail Live (Austin) August TEDCI Economic Development Sales Tax Workshop (Lubbock). August 24 TEDC Basic Economic Development Course (Arlington) September 18-21 TEDC Economic Development Sales Tax Workshop (Richardson) September 28 TEDC Economic Development Sales Tax Workshop (Houston) November 9 ICSCTexas Conference & Dealmaking (Dallas) November 5Page Alamo Revolving Loan Program Status Report February 2018 EMAIL ADDRESS NAME Melina Lerma Kimberly Hess Christy Salazar Rolandol Limon Jorge Sanchez Lissetht Deleon Josel. Torres COMPANY Ikids Academy V-day Assumption Aaron's Transport Poncho's Central Kitchen BBQ Speedway Performance! Motors Center PHONE 956-781-5683 227-9277() STATUS New Generation 956-648-9119 mlerma1820@yahoos com Accounti is current 956- mBsIaNGNaseVEan Account is current Thomas ands Sarah. Moncivais Soleil Rehab 956-460-8406 tommeniaidhimnsicon Accounti is delinquent Willie & Cristina Gonzalez The Original Willie's 702-1370 FIsea@Ruscen Accounti is current aaronsmht@aolz com Account is current roly.limon@gmail. com Accounti is current leal. ponchos@gmail com sancharsh@rhocen Accounti is current 780-0629 Garden Party Event 325-5757 Lisseth sesatty@hotmail. com Nop progress bya applicant Colchones Victoria 510-3039 miquel. malindo@hotmail, com Nop progress bya applicant PROGRAM MAINTENACE 2/20/18: Duec date; payment notr made 2/22/18: Follow upy viae email reminding borrower of payment 2/23/18: Follow upv with co-signor whos statedp payment) wouldb be made following week. afternoon Thomas and's Sarah.Moncivais Soleil Rehab 956-460-8406 lommonchais@holmalc com due date and end ofg gracep periodo on 3/2/18 V-day Assumption Poncho's Central Kitchen rolyli limon@gmail com 2/9/18: ExDs sentp payment reminder via email; Payment was leal.p ponchos@gmailz com dropped offa at AEDC office andg givent to Finance Director that Rolando Limon Imagine! ItStudiosi isp promotingi itv vial Facebook and Twitter RLFF Program Email blast: 2/9; 2/12 Program Promoted via VallyE Business Report Staff developed Micro-Loan Program pamphlets USDA conducted Compliance Review/Service Visit:2/15 2/28 received USDA Compliancef findings report 03/09/2018 Page1 USDA United States Department of Agriculture Rural Development Edinburg Area Office 2514 S. Veterans Blvd., Suite 4 Edinburg, TX 78539 Voice 956.383.4928 Ext.4 Fax844.496.7917 February 26, 2018 715 E. Business 83 Alamo, TX78516 Mr. Marcelino Medina, Alamo EDC President Ref: Compliance Review/Servicing: Visit (IRP) A Compliance Review and Servicing Visit were conducted at Alamo Economic Development Corporation in Alamo, Texas on February 15, 2018. The purpose of the visit was to evaluate your compliance with current Rural Development Regulations, Equal Opportunity and Nondiscrimination requirements established Compliance Review- A compliance review oft the subject project indicates that you are currently meeting your responsibilities under applicable Civil Rights You are to address the findings & violations noted on the attached reports. Please address alli findings and violations accordingly. You are to submit a written report outlining your plan to the Edinburg Area Office, USDAI Rural Development, 2514 S. Veterans Blvd., Suite 4, Edinburg, TX 78539, on correcting the discrepancies no later than 30 days from the date of this letter. A follow up review may be scheduled as per your response. Iwould like to thank your staff at Alamo EDC for their courtesy and cooperation during our visit. Ify you have any questions please call the Edinburg. Area Office at (956)383- in the Letter of Conditions. laws. 4928 Ext. 4. Sincerely, for Roel Area Director Attachments ERKT CC: Daniel Torres, BCP Director, Temple, TX State Director, Attn: Carolyn Turner, CRM, Temple, TX Rafael Tapia, Exe. Director, Alamo EDC, Alamo, TX USDAis is ane equal opportunity providera ande employer. lyouw wish! to filea a Civil Rights program complaint of discrimination, complete thel USDA Program Discrimination Complaint Form, found online atl htp.lwww.ascrusdas gov/complaint fling-cust.htmi, ora ata any USDA office, ord call (866) 632-999210 request thef form. Your maya alsov write al lettero containing allofi thei information requestedi in the! form. Send your completed complaint form orl letter to us byn maila atl U.S. Department of Agriculture, Director, Office of Adjudication, 14001 Independence Avenue, S.W., Washington, D.C.: 20250-9410. byf fax (202) 690-74420 or emaila atp ppgaminiskePldago. Alamo EDC Compliance Review/Servicing Visit FINDINGS: Civil Rights Compliance Data/Appication/Crrespondence Information Alamo EDC is required to provide a method of communicating with individuals with hearing impairments, a' Telecommunication Device for the Deaf (TDD#) or Participation in a relay service such as the Texas Relay System. Common Area Signage Van accessible parking striping is faded. Kitchen sink faucets were not lever type and drain pipes were not insulated. Reporting No findings noted. EDC is current with all reports. - IMG_0621.JPG IMG_0622.JPG IMG_0623.JPG IMG_0624.JPG IMG_0625.JPG - IMG_0626.JPG oS IMG_0627.JPG IMG_0628.JPG IMG_0629.JPG IMG_0630.JPG IMG_0631.JPG S8888885 Mol j 8e88 CITY OF ALAMO REVENUE & EXPENSE REPORT (UNAUDITED) ASOFFEBRUARY: 28, 2018 CURRENT BUDGET 844,092.00 1,000.00 845,092.00 95,413.44 91,535.00 8,400.00 62,000.00 15,000.00 535,551.00 30,848.00 838,747.44 6,344.56 ALAMO ECONOMICI DEVELOPMENT Y-T-D ACTUAL 376,270.55 13.57 2,841.51 193.59 379,319.22 43,283.42 17,357.41 2,123.14 13,229.25 12,500.00 223,141.76 30,847.50 342,482.48 36,836.74 BUDGET BALANCE %0F BUDGET CORP. REVENUES SALESTAX OTHER REVENUE INTEREST TRANSFER IN/OTHER FIN. TOTAL REVENUES 467,821.45 44.58% (13.57) 0.00% (1,841.51) 284.15% (193.59) 0.00% 465,772.78 44.88% 52,130.02 45.36% 74,177.59 18.96% 6,276.86 25.28% 48,770.75 21.34% 2,500.00 83.33% 312,409.24 41.67% 0.50 0.00% 0.00% 496,264.96 40.83% (30,492.18) EXPENDITURES PAYROLL OPERATING EXPENSES MAINTENANCE CONTRACT: SERVICES PROGRAM EXPENSES TRANSFERS OUT DEBT SERVICE FIXED ASSETS TOTALE EXPENSES REVENUE OVER/(UNDER) EXPENSE 2 ITEM# REQUEST FOR VARANCEIOTIIEID ZONING REGULATIONS, CHAPTER 8, SECTION 10-8- 2PERMITTED USES FOR A C-1 ZONE AT PROPEKIVIEKGALLY DESCRIBED ASLOT12, BLOCK22, ALAMO ORIGINAL TOWNSITE MR. REYNALDO RODRIGUEZ REVIEW DATA This item was previously brought before the City Commission on 12-19-17, however the applicant has submitted al letter to the City requesting his item be reconsidered by the Commission. SITE: This property is located on the NW corner of7th St. and Acacia - see vicinity map. The subject site HISTORY: This property was once utilized as Leo's Bar. It was used as such for many years and was considered a non-conforming use. Our Non-conforming use code states the following: measures 55'X150. The site has access to Acacia and 7ths St. "10-11-3: NONCONFORMING USE OF BUILDING: Except as otherwise provided or on April 1, 1995, if the amendments to this title at that date cause any building to be then nonconforming, the nonconforming use ofal building may be continued. and the use of a nonconforming building may be changed to another use of the same or more restricted classification. A nonconforming building which is or may hereafter become vacant and which shall remain unoccupied or its nonconforming use discontinued for acontinuous period ofone year shall not thereafter be occupied, except by a use which conforms to the regulations of the district in which it is located. H Years later Leo's closed and had been closed for more than a year, in essence voiding the "grandfathered" use. The applicant, Mr. Reynaldo Rodriguez, came into the office asking to re-open the business as a bar and grill. TITLE 10-ZONING REGULATIONS, CHAPTER 8 &9: Under the City's Zoning Code, only the C "Commerical" Zone allows for the operation ofal bar through a conditional use permit. The reason for only allowing these types of uses in a C: zone is to keep bars away from single family residential neighborhoods that may have a negative impact on the character of the neighborhood with additional traffic generated by such businesses, loud music/noise, and potential vandalism or criminal activities that sometimes come with these types ofb businesses. REVIEW COMMENTS Though this property was used as a bar several years ago, the City'scodes clearly state that the non-conforming use no longer exists and any proposed uses must comply with the C-1 permitted uses, which does not allow for the sale of alcohol (al bar). The applicant can still apply for a small neighborhood restaurant, however cannot offer the sale of alcohol. RECOMMENDATION Staff recommends denial. PAZCOMMISSION RECOMMENDATION (Wednesday, December 13,2017) Action: Mr.Juan Alvarado motioned to deny the variance request subject to staff's recommendations. Mr. Eddie Singleterry seconded the motion. Motion carried. Voting: Five (5) members present and voting. To whom iti may concern: 2)28/6 LRey Rodriguez greatly appreciate iti ify you would reconsider of me opening the 7"St. Sports Bar & Grill located at 702 Acacia Ave., Alamo, Tx. 78516. Thank youi for your time on this matter. Ifyoul have any questions or concern please feel free to contact me at this number 956-463-2547. Sincerely, Rumadho RBayy 702 Acacie Leyy Rodricuez 95b 4632947 Mens womnt Poel table Colnley SHerese F T f T T Ller Ewy 7TH STREET SPORT BAR GRILL HAMBURGER. CHEESEBURGER. $3.25 $4.25 $5.25 ..$6.25 HAMBURGER COMBO... CHEESEBURGER COMBO... WINGS 6PCS COMBO WFRIES......54.00 10PCS COMBO FRIES..-...55.00 PIZZA (ALL COMBOS INCLUDE SOFT DRINK) SLICE. WHOLE. FRIES SMALL. LARGE. $2.00 $7.00 $1.50 $3.00 1aa11s 422 VIGN