Belinda Berg City Secretary

ADMINISTRATION 285 Uptown Blvd., Bldg. 100 Cedar Hill, TX 75104 O. 972.291.5100 F. 972.291.5199

NOTICE OF CITY COUNCIL BRIEFING SESSION OCTOBER 25, 2016 T.W. “TURK” CANNADY – CEDAR HILL ROOM GOVERNMENT CENTER 285 UPTOWN BLVD. – BLDG. 100 CEDAR HILL, TEXAS

6:00 P.M.

AGENDA

I. Call the meeting to order.

II. City Manager Reports: • City Council Calendar/Upcoming Events • City Operations • Conduct a briefing to discuss items for the 7:00 p.m. regular meeting

III. Presentation on ICMA Cambodian Fellowship.

IV. Presentation of the Zula B. Wylie Public Library’s Annual Update.

V. Adjourn.

I certify that the above notice of meeting was posted in accordance with the Texas Open Meetings Act on the 21st day of October 2016.

Belinda Berg City Secretary

This facility is wheelchair accessible. If you plan to attend this public meeting and you have a disability that requires special arrangements, please call 972-291-5100 Ext. 1011 or (TDD) 1-800-RELAY TX (1-800-735-2989) at least 48 hours in advance. Reasonable accommodations will be made to assist your needs.

Mayor Rob Franke • Mayor Pro Tem, Stephen Mason • Jami McCain • Daniel C. Haydin, Jr. Wallace Swayze • Chris Parvin • Clifford R. Shaw • City Manager, Greg Porter CedarHillTX.COM “PURSUANT TO SECTION 30.07, PENAL CODE (TRESPASS BY LICENSE HOLDER WITH AN OPENLY CARRIED HANDGUN), A PERSON LICENSED UNDER SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED OPENLY”

"CONFORME A LA SECCIÓN 30.07, DEL CÓDIGO PENAL (ENTRADA SIN AUTORIZACIÓN POR TITULAR DE LICENCIA CON UNA PISTOLA VISIBLE), UNA PERSONA CON LICENCIA BAJO EL SUBCAPÍTULO H, CAPÍTULO 411 DEL CÓDIGO DE GOBIERNO (LEY DE LICENCIAS DE PISTOLAS), NO PUEDE ENTRAR EN ESTA PROPIEDAD CON UNA PISTOLA VISIBLE” ADMINISTRATION 285 Uptown Blvd., Bldg. 100 Cedar Hill, TX 75104 O. 972.291.5100 F. 972.291.5199 NOTICE OF CITY COUNCIL MEETING OCTOBER 25, 2016 T.W. “TURK” CANNADY-CEDAR HILL ROOM 285 UPTOWN BLVD. – BLDG. 100 CEDAR HILL, TEXAS

7:00 P.M.

VISION STATEMENT: We envision Cedar Hill as a premier city that retains its distinctive character; where families and businesses flourish in a safe and clean environment.

MISSION STATEMENT: The mission of the City of Cedar Hill is to deliver the highest quality municipal services to our citizens and customers consistent with our community values.

AGENDA

I. Call the meeting to order.

II. Invocation - Rev. Devin Miller of M.E.T.R.O. Christ's Church

III. Pledge of Allegiance.

IV. Distinctive Character Presentations:

1. Present a Proclamation designating November 6-12, 2016 as Animal Shelter Appreciation Week in Cedar Hill.

2. Present a Proclamation designating November 7-11, 2016 as Municipal Court Week in Cedar Hill.

3. Present Certificates of Recognition to the 2016 Country Day on the Hill Chairpersons and Committee.

V. Presentations:

1. Administer oath of office to firefighter/paramedic Scott Shipley.

2. Recognition of Fire Department personnel.

3. Presentation on Bitter for Litter Campaign.

Mayor Rob Franke • Mayor Pro Tem, Stephen Mason • Jami McCain • Daniel C. Haydin, Jr. Wallace Swayze • Chris Parvin • Clifford R. Shaw • City Manager, Greg Porter CedarHillTX.COM Page 2 City Council Meeting Agenda October 25, 2016

VI. Citizens Forum.

VII. Consent Agenda:

The Consent Agenda includes routine items that may be acted upon with a single vote. Any City Council member may remove items from the Consent Agenda for separate discussion and consideration. 1. Approve the minutes of the October 11, 2016 meeting.

2. Receive quarterly investment report for the quarter ended September 30, 2016.

3. Authorize the purchase of indoor track flooring.

4. Authorize the purchase of public safety vehicles and equipment.

5. Authorize the purchase of shade structures for neighborhood parks.

6. Consider Resolution No. R16-473 approving and adopting the City of Cedar Hill’s Investment Policy.

7. Consider approval of Cooperative Purchasing Agreement between the City of Abilene, Texas and the City of Cedar Hill, Texas for the purchase of various goods and services and authorizing the City Manager to execute any all documents relating thereto.

VIII. Regular Agenda.

IX. Adjourn.

I certify that the above notice of meeting was posted in accordance with the Texas Open Meetings Act on the 21st day of October 2016.

Belinda Berg City Secretary

“PURSUANT TO SECTION 30.07, PENAL CODE (TRESPASS BY LICENSE HOLDER WITH AN OPENLY CARRIED HANDGUN), A PERSON LICENSED UNDER SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED OPENLY”

PREMIER STATEMENTS CEDAR HILL HAS DISTINCTIVE CHARACTER CEDAR HILL HAS EXCELLENT, SAFE & EFFICIENT INFRASTRUCTURE CEDAR HILL IS SAFE CEDAR HILL IS CLEAN CEDAR HILL HAS TEXAS SCHOOLS OF CHOICE CEDAR HILL HAS VIBRANT PARKS AND NATURAL BEAUTY CEDAR HILL HAS A STRONG AND DIVERSE ECONOMY

CITY COUNCIL VALUES PEOPLE AND RELATIONSHIPS STEWARDSHIP HIGHEST ETHICAL STANDARDS, BEHAVIOR AND INTEGRITY SERVANT LEADERSHIP

I certify that the attached notice and agenda of items to be considered by the City Council was removed by me from the Government Center bulletin board on the ______day of ______, 2016, By:______

BRIEFING MINUTES CITY COUNCIL MEETING OCTOBER 11, 2016

The City Council, of the City of Cedar Hill, Texas, met in briefing session Tuesday, October 11, 2016, 6:00 p.m., 285 Uptown Blvd., Bldg. 100, Cedar Hill, Texas.

The following members of the City Council were present, to wit: Mayor Rob Franke, Mayor Pro Tem Stephen Mason and Council Members Jami McCain, Wallace Swayze, Daniel C. Haydin, Jr., Chris Parvin*, and Clifford Shaw.

* Council Member Parvin arrived at 6:08 pm.

I. Call the meeting to order.

Mayor Franke called the meeting to order at 6:04 p.m., declaring it an open meeting with a quorum present and the meeting notice was duly posted.

II. Presentation by Fran Laukaitis of the Methodist Charlton Medical Center.

Ms. Laukaitis briefed the City Council on several new programs recently implemented at Methodist Charlton Medical Center. Ms. Laukaitis also spoke of the recognition Methodist Charlton has received for improved wait times for emergency care and stroke and cardiac patient care.

III. Briefing on the Waste Management Contract.

IV. City Manager Reports:

• City Council Calendar/Upcoming Events.

City Manager Porter reviewed the City Council’s calendar, emphasizing the following:

Thursday, October 13 - 6:45pm-8:00pm – Ribbon Cutting Event for Guitar Center - 971 N. Highway 67, Ste. 500, Cedar Hill

Saturday, October 15 - 10:00am-2:00pm – Cedar Hill Fire Department’s 75th Anniversary – Central Fire Station, 1212 W. Belt Line Rd., Cedar Hill

Tuesday, October 25 - 6:00pm-8:00pm – City Council Meeting - T.W. ‘Turk’ Cannady/Cedar Hill Room – Government Center, 285 Uptown Blvd. Bldg. 100, Cedar Hill

Thursday, October 27 - 11:30am-1:00pm – State of the Schools CHISD Luncheon – Location TBD

Page 2 City Council Briefing Meeting Minutes October 11, 2016

Fri.-Sat. Oct 28-29 - City Council Strategic Planning Retreat - Inn on the River - 205 SW Barnard St, Glen Rose

Monday, October 31 - 6:30pm-8:00pm - Scare on the Square - Pioneer Park - 600 Cedar St., Cedar Hill

• City Operations.

• Conduct a briefing to discuss items for the 7:00 p.m. regular meeting.

Distinctive Character Presentations

Present a Proclamation designating October 2016 as Breast Cancer Awareness Month in Cedar Hill.

Present a Proclamation designating October 2016 as National Code Enforcement Month in Cedar Hill.

Public Hearing

Case No. 2016-34 – Conduct a public hearing and consider a Conditional Use Permit for a restaurant with alcoholic beverage sales and consumption on a portion of Lot 2, Block A of the Uptown Village at Cedar Hill Addition zoned Planned Development District No. 05-226, with the approximate address being 305 West FM 1382, Suite 316; requested by David Levine on behalf of Uptown Village at Cedar Hill, L.P. for Grimaldi’s.

Consent Agenda

Approve the minutes of the September 27, 2016 meeting.

Case No. 2016-33 – Approve, in accordance with the Planning and Zoning Commission’s recommendation, a final plat and plans for the Legacy Crossing Addition, Phase 1, Block 1, Lot 1 located on the south side of Pleasant Run Road, east of Joe Wilson Road with the approximate address being 918 East Pleasant Run Road; requested by Rod Zielke on behalf of JPS Legacy, LLC.

Adopt Ordinance No. 2016-598, which changes the zoning FROM “SF-8.5” – Single Family Residential (8,500 sq. ft. lots) TO “LR” – Local Retail on 4.3 acres out of Abstract 1213, generally located on the southwest corner of FM 1382 and Sims Drive.

Adopt Ordinance No. 2016-599, designating a portion of Pickard Drive, from Joe Wilson Road to approximately 150 feet south of LaRue Drive, as a “No Parking Zone,” from 7:00 am to 4:30 pm, Monday through Friday.

Adopt Ordinance No. 2016-600, adopting the 2015 International Fuel Gas Code.

Page 3 City Council Briefing Meeting Minutes October 11, 2016

Adopt Ordinance No. 2016-601, adopting the 2015 International Mechanical Code.

Adopt Ordinance No. 2016-602, adopting the 2015 International Plumbing Code.

Adopt Resolution No. R16-470, approving appointments to the Board of Directors of the Cedar Hill Public Improvement District No. 1, otherwise known as High Pointe PID.

Adopt Resolution No. R16-471, approving appointments to the Board of Directors of the Cedar Hill Public Improvement District No. 2, otherwise known as Waterford Oaks PID.

Adopt Resolution No. R16-472, approving appointments to the Board of Directors of the Cedar Hill Public Improvement District No. 3, otherwise known as Winding Hollow PID.

Authorize the purchase of public safety vehicles and equipment.

Authorize the purchase of fleet vehicles and equipment.

Regular Agenda

Case No. 2016-36 – Review and consider a preliminary plat, layout plans and a variance to Section 20-22(b) of the Subdivision Ordinance for the Shenandoah Center Addition, containing Tract A-R; Lots 1-2, Block A; and Lots 1-2, Block B and being a replat of Tract A of the Sleepy Hollow Addition, located on the southwest side of East Belt Line Road and north and south of Shenandoah Drive; requested by Douglas Mousel on behalf of Cedar Hill Partners, L.P.

Case No. 2016-37 – Conduct a public hearing and consider a final plat and plans for the Shenandoah Center Addition, containing Tract A-R; Lots 1-2, Block A; and Lots 1-2, Block B, and being a replat of Tract A of the Sleepy Hollow Addition, located on the southwest side of East Belt Line Road and north and south of Shenandoah Drive; requested by Douglas Mousel on behalf of Cedar Hill Partners, L.P.

Case No. 2016-26 – Approve, in accordance with the Planning and Zoning Commission’s recommendation, a site plan for a medical office with alternative equivalent screening on the proposed Lot 1, Block 1, Phase 1, Legacy Crossing Addition located on the south side of Pleasant Run Road, east of Joe Wilson Road with the approximate address being 918 East Pleasant Run Road; requested by Kim Ward on behalf of JPS Legacy, LLC.

Consider authorizing the Mayor to execute an agreement with Tyler Technologies for the acquisition and installation of EnerGov SaaS-Gold Permitting and Land Management software.

Page 4 City Council Briefing Meeting Minutes October 11, 2016

**Due to time constraints, the City Council adjourned the Briefing Session to begin the regular City Council meeting and will reconvene upon the conclusion of the regular City Council meeting.

V. Adjourn.

There being no further business, Mayor Pro Tem Mason made a motion to adjourn the briefing session, seconded by Council Member Haydin. The motion passed by unanimous vote, and the meeting adjourned at 8:46 p.m.

Approved: ______Rob Franke, Mayor

Attest: ______Belinda Berg, City Secretary

MINUTES CITY OF CEDAR HILL CITY COUNCIL MEETING OCTOBER 11, 2016

The City Council of the City of Cedar Hill, Texas met in regular session Tuesday, October 11, 2016, 7:00 p.m., T.W. “Turk” Cannady - Cedar Hill Room, 285 Uptown Blvd., Cedar Hill, Texas.

I. Call the meeting to order.

Mayor Franke called the meeting to order at 7:14 p.m., declaring it an open meeting with a quorum present and that the meeting notice was duly posted.

II. Invocation.

Pastor Cornelius Greer of M.E.T.R.O. Christ’s Church gave the invocation.

III. Pledge of Allegiance.

Mayor Pro Tem Mason led the Pledge of Allegiance to the U.S. and Texas flags.

IV. Distinctive Character Presentations

1. Present a Proclamation designating October 2016 as Breast Cancer Awareness Month in Cedar Hill.

Council Member McCain read the Proclamation and presented it to Interim Parks and Recreation Director Carolyn Skeels and members of the Parks and Recreation Department.

2. Present a Proclamation designating October 2016 as National Code Enforcement Month in Cedar Hill.

Council Member Swayze read the Proclamation and presented it to Neighborhood Services and Code Manager Stacey Graves and members of the Code Enforcement and Building Official’s staff.

V. Public Hearing:

1. Case No. 2016-34 – Conduct a public hearing and consider a Conditional Use Permit for a restaurant with alcoholic beverage sales and consumption on a portion of Lot 2, Block A of the Uptown Village at Cedar Hill Addition zoned Planned Development District No. 05-226, with the approximate address being 305 West FM 1382, Suite 316; requested by David Levine on behalf of Uptown Village at Cedar Hill, L.P. for Grimaldi’s.

Page 2 City Council Regular Meeting Minutes September 13, 2016

Mayor Franke introduced this item and opened the public hearing for anyone wishing to speak for or against this request.

No one spoke.

Mayor Franke closed the public hearing and opened the floor to the City Council for deliberation and action.

Council Member Haydin made a motion to approve Case No. 2016-34, as presented. The motion was seconded by Mayor Pro Tem Mason and approved by a vote of 6-1.

VI. Citizens Forum.

No one spoke.

VII. Consent Agenda:

Mayor Franke introduced the Consent Agenda and stated the Consent Agenda includes routine items that may be acted upon by a single vote. Any City Council member may remove items from the Consent Agenda for separate discussion and consideration. There were none.

Item 1 was to approve the minutes of the September 27, 2016 meeting.

Item 2 was to approve Case No. 2016-33, in accordance with the Planning and Zoning Commission’s recommendation, a final plat and plans for the Legacy Crossing Addition, Phase 1, Block 1, Lot 1 located on the south side of Pleasant Run Road, east of Joe Wilson Road with the approximate address being 918 East Pleasant Run Road; requested by Rod Zielke on behalf of JPS Legacy, LLC.

Item 3 was to adopt Ordinance No. 2016-598, which changes the zoning FROM “SF-8.5” – Single Family Residential (8,500 sq. ft. lots) TO “LR” – Local Retail on 4.3 acres out of Abstract 1213, generally located on the southwest corner of FM 1382 and Sims Drive.

Item 4 was to adopt Ordinance No. 2016-599, designating a portion of Pickard Drive, from Joe Wilson Road to approximately 150 feet south of LaRue Drive, as a “No Parking Zone,” from 7:00 am to 4:30 pm, Monday through Friday.

Item 5 was to adopt Ordinance No. 2016-600, adopting the 2015 International Fuel Gas Code.

Item 6 was to adopt Ordinance No. 2016-601, adopting the 2015 International Mechanical Code.

Page 3 City Council Regular Meeting Minutes September 13, 2016

Item 7 was to adopt Ordinance No. 2016-602, adopting the 2015 International Plumbing Code.

Item 8 was to adopt Resolution No. R16-470, approving appointments to the Board of Directors of the Cedar Hill Public Improvement District No. 1, otherwise known as High Pointe PID.

Item 9 was to adopt Resolution No. R16-471, approving appointments to the Board of Directors of the Cedar Hill Public Improvement District No. 2, otherwise known as Waterford Oaks PID.

Item 10 was to adopt Resolution No. R16-472, approving appointments to the Board of Directors of the Cedar Hill Public Improvement District No. 3, otherwise known as Winding Hollow PID.

Item 11 was to authorize the purchase of public safety vehicles and equipment.

Item 12 was to authorize the purchase of fleet vehicles and equipment.

Mayor Pro Tem Mason made a motion to approve Consent Agenda Items 1 -12, as presented. The motion was seconded by Council Member McCain and after a reading of the ordinance captions, was approved by a unanimous vote.

VIII. Regular Agenda:

1. Case No. 2016-36 – Review and consider a preliminary plat, layout plans and a variance to Section 20-22(b) of the Subdivision Ordinance for the Shenandoah Center Addition, containing Tract A-R; Lots 1-2, Block A; and Lots 1-2, Block B and being a replat of Tract A of the Sleepy Hollow Addition, located on the southwest side of East Belt Line Road and north and south of Shenandoah Drive; requested by Douglas Mousel on behalf of Cedar Hill Partners, L.P.

Council Member Haydin made a motion to Case No. 2016-36, as presented. The motion was seconded by Council Member McCain and approved by a unanimous vote.

2. Case No. 2016-37 – Conduct a public hearing and consider a final plat and plans for the Shenandoah Center Addition, containing Tract A- R; Lots 1-2, Block A; and Lots 1-2, Block B, and being a replat of Tract A of the Sleepy Hollow Addition, located on the southwest side of East Belt Line Road and north and south of Shenandoah Drive; requested by Douglas Mousel on behalf of Cedar Hill Partners, L.P.

Page 4 City Council Regular Meeting Minutes October 11, 2016

Mayor Franke introduced this item and opened the public hearing for anyone wishing to speak for or against this request.

No one spoke.

Mayor Franke closed the public hearing and opened the floor to the City Council for deliberation and action.

Council Member Parvin made a motion to approve Case No. 2016-37, as presented. The motion was seconded by Council Member Swayze and approved by a unanimous vote.

3. Case No. 2016-26 – Approve, in accordance with the Planning and Zoning Commission’s recommendation, a site plan for a medical office with alternative equivalent screening on the proposed Lot 1, Block 1, Phase 1, Legacy Crossing Addition located on the south side of Pleasant Run Road, east of Joe Wilson Road with the approximate address being 918 East Pleasant Run Road; requested by Kim Ward on behalf of JPS Legacy, LLC.

Council Member Haydin made a motion to approve Case No. 2016-26, as presented. The motion was seconded by Council Member Parvin and approved by a unanimous vote.

4. Consider authorizing the Mayor to execute an agreement with Tyler Technologies for the acquisition and installation of EnerGov SaaS- Gold Permitting and Land Management software.

Council Member McCain made a motion authorize the Mayor to execute an agreement with Tyler Technologies. The motion was seconded by Council Member McCain and approved by a unanimous vote.

IX. Adjourn.

Upon a motion by Council Member McCain, seconded by Council Member Haydin, the meeting adjourned at 7:39 p.m.

Approved: ______Rob Franke, Mayor

Attest: ______Belinda Berg, City Secretary Consent #2

CITY OF CEDAR HILL CITY COUNCIL AGENDA ITEM

Agenda Date: October 25, 2016

Agenda wording: Receive Quarterly Investment Report for the quarter ended September 30, 2016 Summary: The City is required to comply with Chapter 2256 of the Government Code, otherwise known as the Public Funds Investment Act. Provisions of that act require at a minimum quarterly reporting. The accompanying Quarterly Investment Report lists, in summary form and in detail, the investment positions of the City of Cedar Hill’s investment portfolios as of September 30, 2016.

The overall strategy of running the City’s investment portfolios is governed by the City’s Investment Policy and overseen by the City’s investment committee. All investments are governed by state law and the City’s Investment Policy which dictates the following investment objectives, in order of priority:

1. Safety of Principal 2. Liquidity 3. Return on Investments

As of September 30, 2016, the City held money market accounts and investments with a combined market value of $115,637,989. The majority of these funds (51%) are held in the City fund’s portfolio for a total of $57,189,022. The City fund’s portfolio consists of operating funds, construction funds and debt service funds. The remainder of funds (49%) or $55,422,169 is held in the Joe Pool Lake portfolio.

The City’s portfolio has averaged a yield for the quarter at .42% (42 basis points)and has earned interest income of $75,320 for the quarter. The Joe Pool Lake (JPL) portfolio has averaged 4.29% and has earned $537,553 in interest for the quarter.

The Investment Committee met on October 17 to review the Quarterly Investment Report. The committee finds the report to be in compliance with the Public Funds Investment Act.

Funding Source: N/A

Recommended Action: Receive Quarterly Investment Report for period end September 30, 2016.

Finance

Department: Contact / Phone No: Alan Dickerson 972.291.5100 Ext. 1063

Attachments: Yes If yes, how many pages: 17

Quarterly Performance Briefing Quarter Ending September 30, 2016

City Funds Portfolio Average Yield: 0.57% Interest Earnings:$ 75,320 Portfolio Values: 9/30/2016 $ 57,189,022 Book Value Net decrease of $6,057,278

6/30/2016 $ 63,246,301

Joe Pool Lake Portfolio Average Yield: 3.93% Interest Earnings:$ 537,553 Portfolio Values: 9/30/2016 $ 55,422,169 $ 58,448,967 Book Value Market Value 6/30/2016 $ 54,070,591 $ 57,362,977

Compliance Checklist Training Requirements - 1x/2yrs or w/in 12 months of new position Finance Director 2016 Accounting Manager 2015 City Manager 2016 Assistant City Manager 2016 Invested only in authorized instruments - Investment Types Municipal debt, Gov't Agencies & CD's - Sufficient Credit Ratings All are AA- or better - Maximum Security Maturity - City Funds (3 Years) Longest Maturity 02/19 - Joe Pool Lake Funds (40 Years) Longest Maturity 02/41 - Maximum Weghted Avg Maturity (WAM) - City Funds (1 Year) WAM is 28 days - Joe Pool Lake Funds (None Defined)

Transactions settled Delivery vs Payment (DVP) Settled DVP

Bank Deposits Collateralized at 102% Minimum Collateral Exceeded 102%

Monitoring Market Value Monthly Market values updated monthly

Reporting to Council at least Quarterly Reporting Quarterly

Annual Comparison of Portfolio Performance

City Funds September 30, 2016 September 30, 2015 Asset Type Ave. Yield Book Value Market Value Ave. Yield Book Value Market Value Demand Accounts 0.35%$ 23,224,318 $ 23,224,318 0.35% $ 56,726,394 $ 56,726,394 NOW/MMA/Pools 0.65% 26,053,569 26,053,569 0.10% 1,507,157 1,507,157 Certificates of Deposit 0.96% 7,911,135 7,911,135 0.82% 10,348,874 10,348,874 Totals $ 57,189,022 $ 57,189,022 $ 68,582,425 $ 68,582,425

Total Portfolio Average (QTR) 0.57% 0.42% Fiscal Year-to-Date Average Yield (2) 0.47% 0.41%

Quarterly Interest Income $ 75,320 Approximate $ 67,823 Approximate Year-to-date Interest Income $ 294,458 Approximate $ 264,643 Approximate

Joe Pool Lake September 30, 2016 September 30, 2015 Asset Type Ave. Yield Book Value Market Value Ave. Yield Book Value Market Value Demand Accounts 0.35%$ 5,968,344 $ 5,968,344 0.35% $ 2,200,858 $ 2,200,858 Certificates of Deposit 1.34% 14,422,411 14,422,411 1.34% 14,229,982 14,229,982 Securities 5.61% 35,031,414 38,058,212 5.67% 36,556,529 38,174,205 Totals $ 55,422,169 $ 58,448,967 $ 52,987,369 $ 54,605,045

Total Portfolio Average (QTR) 3.93% 4.29% Fiscal Year-to-Date Average Yield (2) 4.06% 4.41%

Quarterly Interest Income $ 537,553 Approximate $ 650,781 Approximate Year-to-date Interest Income $ 2,155,455 Approximate $ 2,211,667 Approximate

2016 Ave. 2015 Ave. Rolling Three Mo. Treas. Yield 0.30% 0.03% Rolling Six Mo. Treas. Yield 0.42% 0.09% Rolling Twelve Mo. Treas. Yield 0.55% 0.17% Quarterly TexPool Yield 0.38% 0.06%

(1) Average Yield calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account for advisory fees.

(2) Fiscal Year-to-Date Average Yields calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account for advisory fees.

Page 1. Valley View Consulting, L.L.C. Summary

City Funds June 30, 2016 September 30, 2016 Asset Type Ave. Yield Book Value Market Value Book Value Market Value Demand Accounts 0.35%$ 38,827,924 $ 38,827,924 $ 23,224,318 $ 23,224,318 NOW/MMA/Pools 0.65% 16,526,314 16,526,314 26,053,569 26,053,569 Certificates of Deposit 0.96% 7,892,062 7,892,062 7,911,135 7,911,135 Totals $ 63,246,301 $ 63,246,301 $ 57,189,022 $ 57,189,022 City Portfolio Average Yield (1) 0.57% Fiscal Year-to-Date Average Yield (2) 0.47%

Quarterly Interest Income $ 75,320 Approximate Fiscal Year-to-date Interest Income $ 294,458 Approximate

Joe Pool Lake June 30, 2016 September 30, 2016 Asset Type Ave. Yield Book Value Market Value Book Value Market Value Demand Accounts 0.35% $ 4,654,788 $ 4,654,788 $ 5,968,344 $ 5,968,344 NOW/MMA/Pools 0.00% – – – – Certificates of Deposit 1.34% 14,373,765 14,373,765 14,422,411 14,422,411 Securities 5.61% 35,042,038 38,334,425 35,031,414 38,058,212 Totals $ 54,070,591 $ 57,362,977 $ 55,422,169 $ 58,448,967 JPL Portfolio Average Yield (1) 3.93% Fiscal Year-to-Date Average Yield (2) 4.06%

Quarterly Interest Income $ 537,553 Approximate Fiscal Year-to-date Interest Income $ 2,155,455 Approximate

QTR YTD Rolling Three Mo. Treas. Yield 0.30% Rolling Three Mo. Treas. Yield 0.25% Rolling Six Mo. Treas. Yield 0.42% Rolling Six Mo. Treas. Yield 0.37% Rolling Twelve Mo. Treas. Yield 0.55% Rolling Twelve Mo. Treas. Yield 0.44% Quarterly TexPool Yield 0.38% Quarterly TexPool Yield 0.31%

(1) Average Yield calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account for advisory fees. (2) Fiscal Year-to-Date Average Yields calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account for advisory fees.

Page 2. Valley View Consulting, L.L.C. Economic Overview 9/30/2016

The Federal Open Market Committee (FOMC) maintained the Fed Funds target range of 0.25% - 0.50% (actual Fed Funds traded +/-40 bps). The September FOMC meeting recorded dissenting votes for maintaining rates. More hawkish members wanted to raise the range by 0.25%. The current probability of a December FOMC meeting vote to raise the Fed Funds target is +/-60%. Second Quarter US GDP revised to 1.4% (from 1.1%, no more revision is expected). Other economic data reflected modest, yet inconsistent, growth. The US Stock markets have maintained higher levels. Treasury yields drifted slightly higher on tightening rumors. Taxable municipal bonds or CDs offer the best interest earnings opportunity, if available. Treasury Yield Curves US Treasury Historical Yields - Since 1998 2.50 7.50 7.00 6.50 2.00 6.00 5.50 1.50 5.00 4.50 4.00 1.00 3.50 3.00 2.50 0.50 2.00 1.50 1.00 0.00 0.50 0.00

September 30, 2015 June 30, 2016 September 30, 2016 Six Month T-Bill Two Year T-Note Ten Year T-Note

US Treasury Historical Yields - Since 2006 5.50 S&P 500 5.00 2,500 4.50 2,250 4.00 2,000 3.50 1,750 3.00 1,500 2.50 1,250 2.00 1,000 1.50 750 1.00 500 0.50 250 0.00 0

Six Month T-Bill Two Year T-Note Ten Year T-Note

Page 3. Valley View Consulting, L.L.C. Detail of Investment Holdings September 30, 2016

Coupon/ Maturity Next Settlement Book Market Market City Funds Ratings Discount Date Call Date Date Par Value Value Price Value Maturity (1) Yield (2) Prosperity Bank MMA 0.35% 10/01/16 09/30/16$ 23,224,318 $ 23,224,318 1.00$ 23,224,318 1 0.35% Green Bank MMA 0.64% 10/01/16 09/30/16 15,038,506 15,038,506 1.00 15,038,506 1 0.64% NexBank MMA 0.70% 10/01/16 09/30/16 10,003,452 10,003,452 1.00 10,003,452 1 0.70% TexSTAR LGIP AAAm 0.41% 10/01/16 09/30/16 1,011,611 1,011,611 1.00 1,011,611 1 0.41% Comerica Bank CD 0.93% 02/07/17 08/07/14 5,097,182 5,097,182 100.00 5,097,182 130 0.93% Inter National Bank CD 1.00% 06/11/17 06/11/14 2,556,986 2,556,986 100.00 2,556,986 254 1.00% Prosperity Bank CD 1.10% 02/02/19 02/02/14 256,967 256,967 100.00 256,967 855 1.10%

City Funds - Sub Total $ 57,189,022 $ 57,189,022 $ 57,189,022 28 0.57% Days Joe Pool Lake Prosperity Bank MMA 0.35% 10/01/16 09/30/16$ 5,968,344 $ 5,968,344 1.00$ 5,968,344 1 0.350% Comerica Bank CD 0.93% 02/07/17 08/07/14 4,078,389 4,078,389 100.00 4,078,389 130 0.930% Inter National Bank CD 1.00% 06/11/17 06/11/14 5,113,970 5,113,970 100.00 5,113,970 254 1.000% FHLB AA+ 1.38% 03/09/18 02/23/15 5,000,000 5,019,936 100.80 5,040,000 525 1.093% Inter National Bank CD 2.00% 06/26/19 06/26/14 5,230,052 5,230,052 100.00 5,230,052 999 2.000% Galveston County AA+ 6.21% 02/01/29 02/01/19 02/15/11 3,000,000 3,026,353 109.06 3,271,800 4,507 6.087% Houston TX AA 6.32% 03/01/30 03/01/20 12/20/10 2,735,000 2,777,405 113.19 3,095,747 4,900 6.122% Cypress-Fairbanks ISD AA- 6.53% 02/15/31 02/15/19 02/10/11 500,000 511,941 111.62 558,100 5,251 6.236% San Antonio ISD AAA 6.10% 08/15/31 08/15/20 12/29/10 1,000,000 1,004,997 113.45 1,134,500 5,432 6.036% Dallas TX ISD AAA 6.45% 02/15/35 02/15/21 12/14/10 3,000,000 3,077,044 119.86 3,595,800 6,712 6.177% Round Rock TX ISD Aaa 6.02% 08/01/35 08/01/20 12/27/10 1,500,000 1,501,907 115.01 1,725,150 6,879 6.011% San Antonio ISD AAA 6.25% 08/15/35 08/15/20 01/05/11 235,000 238,203 112.95 265,433 6,893 6.105% San Antonio ISD AAA 6.25% 08/15/35 08/15/20 12/29/10 1,750,000 1,761,159 112.95 1,976,625 6,893 6.180% Roanoke E&I DC AA 7.20% 08/15/35 08/15/19 12/08/10 1,070,000 1,070,000 113.63 1,215,841 6,893 7.199% El Paso TX AA 6.70% 08/15/36 08/15/20 12/17/10 1,850,000 1,917,230 114.38 2,116,030 7,259 6.325% Cypress-Fairbanks ISD AA 6.63% 02/15/38 02/15/19 12/14/10 2,385,000 2,460,054 111.49 2,659,037 7,808 6.318% Laredo TX AA 6.57% 02/15/39 02/15/19 12/14/10 2,000,000 2,056,419 109.25 2,185,000 8,173 6.296% Laredo TX AA 6.57% 02/15/39 02/15/19 03/14/11 125,000 128,124 109.25 136,563 8,173 6.324% Bexar County Hospital AAA 6.90% 02/15/39 02/15/19 03/14/11 3,000,000 3,125,982 111.21 3,336,300 8,173 6.494% Bexar County TX AAA 6.63% 06/15/39 06/15/19 12/10/10 575,000 592,401 113.41 652,108 8,293 6.338% Grand Prairie TX ISD AA 0.00% 08/15/40 08/15/18 06/30/09 16,320,000 3,232,992 20.65 3,370,080 8,720 7.210% Katy ISD AAA 6.35% 02/15/41 02/15/20 01/24/11 1,500,000 1,529,266 114.94 1,724,100 8,904 6.169%

JPL - Sub Total $ 67,935,756 $ 55,422,169 $ 58,448,967 11 3.932% Years Total Portfolio $ 125,124,778 $ 112,611,192 $ 115,637,989 5 2.226% Years (1) (2) (1) Weighted Average Maturity - For purposes of calculating weighted average maturity, bank accounts, pools and money market funds are assumed to have a one day maturity.

(2) Weighted Average Yield to Maturity - The weighted average yield to maturity is based on adjusted book value, realized and unrealized gains/losses and investment advisory fees are not considered. The yield for the reporting month is used for bank accounts, pools, and money market funds.

Valley View Consulting, L.L.C. Page 4. Quarter End Portfolio (Millions) $80

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City Joe Pool Lake

Some numbers estimated. Valley View Consulting, L.L.C. Page 5.

Portfolio Composition Portfolio Composition City Joe Pool Lake

Certificates of Securities NOW/MMA/Pools Deposit 63% 45% 14% Securities 0%

Demand Accounts Certificates of Deposit 41% Demand Accounts 26% 11% NOW/MMA/Pools 0%

Valley View Consulting, L.L.C. Page 6. Book Value Comparison (Current Quarter versus Previous Quarter) June 30, 2016 September 30, 2016 Coupon/ Maturity Purchases/ Sales/Adjust/ Description Discount Date Par Value Book Value Adjustments Call/Maturity Par Value Book Value Prosperity Bank MMA 0.35% 10/01/16 $ 43,482,711 $ 43,482,711 $ – $ (14,290,049) $ 29,192,662 $ 29,192,662 Green Bank MMA 0.64% 10/01/16 15,016,053 15,016,053 22,453 15,038,506 15,038,506 NexBank MMA 0.70% 10/01/16 – – 10,003,452 10,003,452 10,003,452 TexSTAR LGIP 0.41% 10/01/16 1,510,261 1,510,261 (498,650) 1,011,611 1,011,611

Comerica Bank CD 0.93% 02/07/17 5,085,252 5,085,252 11,930 5,097,182 5,097,182 Comerica Bank CD 0.93% 02/07/17 4,068,844 4,068,844 9,545 4,078,389 4,078,389 Inter National Bank CD 1.00% 06/11/17 2,550,552 2,550,552 6,434 2,556,986 2,556,986 Inter National Bank CD 1.00% 06/11/17 5,101,102 5,101,102 12,868 5,113,970 5,113,970 Prosperity Bank CD 1.10% 02/02/19 256,258 256,258 709 256,967 256,967 FHLB 1.38% 03/09/18 5,000,000 5,023,393 (3,457) 5,000,000 5,019,936 Inter National Bank CD 2.00% 06/26/19 5,203,819 5,203,819 26,233 5,230,052 5,230,052 Galveston County 6.21% 02/01/29 3,000,000 3,026,887 (534) 3,000,000 3,026,353 Houston TX 6.32% 03/01/30 2,735,000 2,778,195 (790) 2,735,000 2,777,405 Cypress-Fairbanks ISD 6.53% 02/15/31 500,000 512,149 (208) 500,000 511,941 San Antonio ISD 6.10% 08/15/31 1,000,000 1,005,081 (84) 1,000,000 1,004,997 Dallas TX ISD 6.45% 02/15/35 3,000,000 3,078,093 (1,048) 3,000,000 3,077,044 Round Rock TX ISD 6.02% 08/01/35 1,500,000 1,501,932 (25) 1,500,000 1,501,907 San Antonio ISD 6.25% 08/15/35 235,000 238,245 (42) 235,000 238,203 San Antonio ISD 6.25% 08/15/35 1,750,000 1,761,307 (148) 1,750,000 1,761,159 Roanoke E&I DC 7.20% 08/15/35 1,070,000 1,070,000 1,070,000 1,070,000 El Paso TX 6.70% 08/15/36 1,850,000 1,918,075 (846) 1,850,000 1,917,230 Cypress-Fairbanks ISD 6.63% 02/15/38 2,385,000 2,460,932 (878) 2,385,000 2,460,054 Laredo TX 6.57% 02/15/39 2,000,000 2,057,050 (630) 2,000,000 2,056,419 Laredo TX 6.57% 02/15/39 125,000 128,158 (35) 125,000 128,124 Bexar County Hospital 6.90% 02/15/39 3,000,000 3,127,390 (1,408) 3,000,000 3,125,982 Bexar County TX 6.63% 06/15/39 575,000 592,593 (192) 575,000 592,401 Grand Prairie TX ISD 0.00% 08/15/40 16,320,000 3,232,992 16,320,000 3,232,992 Katy ISD 6.35% 02/15/41 1,500,000 1,529,566 (300) 1,500,000 1,529,266

TOTAL $ 129,819,853 $ 117,316,891 $ 10,093,624 $ (14,799,324) $ 125,124,778 $ 112,611,192

Page 7. Valley View Consulting, L.L.C. Market Value Comparison (Current Quarter versus Previous Quarter) June 30, 2016 September 30, 2016 Coupon/ Maturity Qtr to Qtr Description Discount Date Par Value Market Value Change Par Value Market Value Prosperity Bank MMA 0.35% 10/01/16$ 43,482,711 $ 43,482,711 $ (14,290,049) $ 29,192,662 $ 29,192,662 Green Bank MMA 0.64% 10/01/16 15,016,053 15,016,053 22,453 15,038,506 15,038,506 NexBank MMA 0.70% 10/01/16 – – 10,003,452 10,003,452 10,003,452 TexSTAR LGIP 0.41% 10/01/16 1,510,261 1,510,261 (498,650) 1,011,611 1,011,611

Comerica Bank CD 0.93% 02/07/17 5,085,252 5,085,252 11,930 5,097,182 5,097,182 Comerica Bank CD 0.93% 02/07/17 4,068,844 4,068,844 9,545 4,078,389 4,078,389 Inter National Bank CD 1.00% 06/11/17 2,550,552 2,550,552 6,434 2,556,986 2,556,986 Inter National Bank CD 1.00% 06/11/17 5,101,102 5,101,102 12,868 5,113,970 5,113,970 Prosperity Bank CD 1.10% 02/02/19 256,258 256,258 709 256,967 256,967 FHLB 1.38% 03/09/19 5,000,000 5,054,500 (14,500) 5,000,000 5,040,000 Inter National Bank CD 2.00% 06/26/19 5,203,819 5,203,819 26,233 5,230,052 5,230,052 Galveston County 6.21% 02/01/29 3,000,000 3,305,100 (33,300) 3,000,000 3,271,800 Houston TX 6.32% 03/01/30 2,735,000 3,126,379 (30,632) 2,735,000 3,095,747 Cypress-Fairbanks ISD 6.53% 02/15/31 500,000 567,450 (9,350) 500,000 558,100 San Antonio ISD 6.10% 08/15/31 1,000,000 1,148,800 (14,300) 1,000,000 1,134,500 Dallas TX ISD 6.45% 02/15/35 3,000,000 3,587,100 8,700 3,000,000 3,595,800 Round Rock TX ISD 6.02% 08/01/35 1,500,000 1,728,300 (3,150) 1,500,000 1,725,150 San Antonio ISD 6.25% 08/15/35 235,000 268,582 (3,149) 235,000 265,433 San Antonio ISD 6.25% 08/15/35 1,750,000 2,000,075 (23,450) 1,750,000 1,976,625 Roanoke E&I DC 7.20% 08/15/35 1,070,000 1,217,874 (2,033) 1,070,000 1,215,841 El Paso TX 6.70% 08/15/36 1,850,000 2,143,595 (27,565) 1,850,000 2,116,030 Cypress-Fairbanks ISD 6.63% 02/15/38 2,385,000 2,691,473 (32,436) 2,385,000 2,659,037 Laredo TX 6.57% 02/15/39 2,000,000 2,206,800 (21,800) 2,000,000 2,185,000 Laredo TX 6.57% 02/15/39 125,000 137,925 (1,363) 125,000 136,563 Bexar County Hospital 6.90% 02/15/39 3,000,000 3,375,000 (38,700) 3,000,000 3,336,300 Bexar County TX 6.63% 06/15/39 575,000 656,765 (4,658) 575,000 652,108 Grand Prairie TX ISD 0.00% 08/15/40 16,320,000 3,376,608 (6,528) 16,320,000 3,370,080 Katy ISD 6.35% 02/15/41 1,500,000 1,742,100 (18,000) 1,500,000 1,724,100

TOTAL $ 129,819,853 $ 120,609,277 $ (4,971,288) $ 125,124,778 $ 115,637,989

Page 8. Valley View Consulting, L.L.C. Allocation September 30, 2016 Investment Consolidated Reserve Joe Pool Lake Book Value Total Funds Funds Funds Prosperity Bank MMA$ 29,192,662 $ 23,224,318 $ – $ 5,968,344 Green Bank MMA 15,038,506 15,038,506 NexBank MMA 10,003,452 10,003,452 TexSTAR LGIP 1,011,611 715 1,010,896

02/07/17–Comerica Bank CD 4,078,389 4,078,389 02/07/17–Comerica Bank CD 5,097,182 5,097,182 06/11/17–Inter National Bank CD 2,556,986 2,556,986 06/11/17–Inter National Bank CD 5,113,970 5,113,970 02/02/19–Prosperity Bank CD 256,967 256,967 03/09/18–FHLB 5,019,936 5,019,936 06/26/19–Inter National Bank CD 5,230,052 5,230,052 02/01/29–Galveston County 3,026,353 3,026,353 03/01/30–Houston TX 2,777,405 2,777,405 02/15/31–Cypress-Fairbanks ISD 511,941 511,941 08/15/31–San Antonio ISD 1,004,997 1,004,997 02/15/35–Dallas TX ISD 3,077,044 3,077,044 08/01/35–Round Rock TX ISD 1,501,907 1,501,907 08/15/35–San Antonio ISD 238,203 238,203 08/15/35–San Antonio ISD 1,761,159 1,761,159 08/15/35–Roanoke E&I DC 1,070,000 1,070,000 08/15/36–El Paso TX 1,917,230 1,917,230 02/15/38–Cypress-Fairbanks ISD 2,460,054 2,460,054 02/15/39–Laredo TX 2,056,419 2,056,419 02/15/39–Laredo TX 128,124 128,124 02/15/39–Bexar County Hospital 3,125,982 3,125,982 06/15/39–Bexar County TX 592,401 592,401 08/15/40–Grand Prairie TX ISD 3,232,992 3,232,992 02/15/41–Katy ISD 1,529,266 1,529,266

Totals$ 112,611,192 $ 56,178,126 $ 1,010,896 $ 55,422,169

Page 9. Valley View Consulting, L.L.C. Allocation September 30, 2016 Investment Consolidated Reserve Joe Pool Lake Market Value Total Funds Funds Funds Prosperity Bank MMA$ 29,192,662 $ 23,224,318 $ – $ 5,968,344 Green Bank MMA 15,038,506 15,038,506 NexBank MMA 10,003,452 10,003,452 TexSTAR LGIP 1,011,611 715 1,010,896

02/07/17–Comerica Bank CD 4,078,389 4,078,389 02/07/17–Comerica Bank CD 5,097,182 5,097,182 06/11/17–Inter National Bank CD 2,556,986 2,556,986 06/11/17–Inter National Bank CD 5,113,970 5,113,970 02/02/19–Prosperity Bank CD 256,967 256,967 03/09/18–FHLB 5,040,000 5,040,000 06/26/19–Inter National Bank CD 5,230,052 5,230,052 02/01/29–Galveston County 3,271,800 3,271,800 03/01/30–Houston TX 3,095,747 3,095,747 02/15/31–Cypress-Fairbanks ISD 558,100 558,100 08/15/31–San Antonio ISD 1,134,500 1,134,500 02/15/35–Dallas TX ISD 3,595,800 3,595,800 08/01/35–Round Rock TX ISD 1,725,150 1,725,150 08/15/35–San Antonio ISD 265,433 265,433 08/15/35–San Antonio ISD 1,976,625 1,976,625 08/15/35–Roanoke E&I DC 1,215,841 1,215,841 08/15/36–El Paso TX 2,116,030 2,116,030 02/15/38–Cypress-Fairbanks ISD 2,659,037 2,659,037 02/15/39–Laredo TX 2,185,000 2,185,000 02/15/39–Laredo TX 136,563 136,563 02/15/39–Bexar County Hospital 3,336,300 3,336,300 06/15/39–Bexar County TX 652,108 652,108 08/15/40–Grand Prairie TX ISD 3,370,080 3,370,080 02/15/41–Katy ISD 1,724,100 1,724,100

Totals$ 115,637,989 $ 56,178,126 $ 1,010,896 $ 58,448,967

Page 10. Valley View Consulting, L.L.C. Allocation June 30, 2016 Investment Consolidated Reserve Joe Pool Lake Book Value Total Funds Funds Funds Prosperity Bank MMA$ 43,482,711 $ 38,827,924 $ – $ 4,654,788 Green Bank MMA 15,016,053 15,016,053 TexSTAR LGIP 1,510,261 500,381 1,009,880

02/07/17–Comerica Bank CD 4,068,844 4,068,844 02/07/17–Comerica Bank CD 5,085,252 5,085,252 06/11/17–Inter National Bank CD 2,550,552 2,550,552 06/11/17–Inter National Bank CD 5,101,102 5,101,102 02/02/19–Prosperity Bank CD 256,258 256,258 03/09/18–FHLB 5,023,393 5,023,393 06/26/19–Inter National Bank CD 5,203,819 5,203,819 02/01/29–Galveston County 3,026,887 3,026,887 03/01/30–Houston TX 2,778,195 2,778,195 02/15/31–Cypress-Fairbanks ISD 512,149 512,149 08/15/31–San Antonio ISD 1,005,081 1,005,081 02/15/35–Dallas TX ISD 3,078,093 3,078,093 08/01/35–Round Rock TX ISD 1,501,932 1,501,932 08/15/35–San Antonio ISD 238,245 238,245 08/15/35–San Antonio ISD 1,761,307 1,761,307 08/15/35–Roanoke E&I DC 1,070,000 1,070,000 08/15/36–El Paso TX 1,918,075 1,918,075 02/15/38–Cypress-Fairbanks ISD 2,460,932 2,460,932 02/15/39–Laredo TX 128,158 128,158 02/15/39–Laredo TX 2,057,050 2,057,050 02/15/39–Bexar County Hospital 3,127,390 3,127,390 06/15/39–Bexar County TX 592,593 592,593 08/15/40–Grand Prairie TX ISD 3,232,992 3,232,992 02/15/41–Katy ISD 1,529,566 1,529,566

Totals$ 117,316,891 $ 62,236,420 $ 1,009,880 $ 54,070,591

Page 11. Valley View Consulting, L.L.C. Allocation June 30, 2016 Investment Consolidated Reserve Joe Pool Lake Market Value Total Funds Funds Funds Prosperity Bank MMA$ 43,482,711 $ 38,827,924 $ – $ 4,654,788 Green Bank MMA 15,016,053 15,016,053 TexSTAR LGIP 1,510,261 500,381 1,009,880

02/07/17–Comerica Bank CD 4,068,844 4,068,844 02/07/17–Comerica Bank CD 5,085,252 5,085,252 06/11/17–Inter National Bank CD 2,550,552 2,550,552 06/11/17–Inter National Bank CD 5,101,102 5,101,102 02/02/19–Prosperity Bank CD 256,258 256,258 03/09/18–FHLB 5,054,500 5,054,500 06/26/19–Inter National Bank CD 5,203,819 5,203,819 02/01/29–Galveston County 3,305,100 3,305,100 03/01/30–Houston TX 3,126,379 3,126,379 02/15/31–Cypress-Fairbanks ISD 567,450 567,450 08/15/31–San Antonio ISD 1,148,800 1,148,800 02/15/35–Dallas TX ISD 3,587,100 3,587,100 08/01/35–Round Rock TX ISD 1,728,300 1,728,300 08/15/35–San Antonio ISD 268,582 268,582 08/15/35–San Antonio ISD 2,000,075 2,000,075 08/15/35–Roanoke E&I DC 1,217,874 1,217,874 08/15/36–El Paso TX 2,143,595 2,143,595 02/15/38–Cypress-Fairbanks ISD 2,691,473 2,691,473 02/15/39–Laredo TX 137,925 137,925 02/15/39–Laredo TX 2,206,800 2,206,800 02/15/39–Bexar County Hospital 3,375,000 3,375,000 06/15/39–Bexar County TX 656,765 656,765 08/15/40–Grand Prairie TX ISD 3,376,608 3,376,608 02/15/41–Katy ISD 1,742,100 1,742,100

Totals$ 120,609,277 $ 62,236,420 $ 1,009,880 $ 57,362,977

Page 12. Valley View Consulting, L.L.C. Historical Yields

6.00

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Valley View Consulting, L.L.C. Page 13. Consent #3

CITY OF CEDAR HILL CITY COUNCIL AGENDA ITEM

Agenda Date: October 25, 2016

Agenda wording: Authorize the purchase of the indoor track flooring.

Summary: The Community Development Corporation approved funding for the Alan E. Sims Cedar Hill Recreation Center indoor track flooring at their June 23, 2016 final budget meeting and the City Council appropriated funds in the FY 2016-2017 Budget for the acquisition of the Alan E. Sims Cedar Hill Recreation Center indoor track flooring. Cost of flooring is $55,293.25. Staff requests authorization to procure the respective materials and installation from the vendor as follows:

Vendor ILA or Other Source of Pricing Equipment One Source Commercial BuyBoard Contract 476-15 Supply, Installation and Flooring Inc. Shipping of Mondo Flooring

The City maintains executed Interlocal Agreements with BuyBoard, HGAC, and Tarrant County. Texas law (Government Code, Chapter 791) authorizes procurements through cooperative agreements to help save time and funding in developing specifications and in duplication of work during the bidding process.

Funding Source: Community Development Corporation

Recommended Action: Authorize the purchase of indoor track flooring from above listed vendor.

Department: Parks and Recreation Contact / Phone No: Carolyn Skeels 972.291.5100 x1515

Attachments: Yes If yes, how many pages: 4

Consent #4

CITY OF CEDAR HILL CITY COUNCIL AGENDA ITEM

Agenda Date: October 25, 2016

Agenda wording: Authorize the purchase of public safety vehicles and equipment.

Summary: The City Council appropriated funds in the FY 2016-2017 Budget for the acquisition of fire department equipment and vehicles in an amount of $106,000. Staff requests authorization to procure two vehicles and the respective equipment from various vendors as follows:

Vendor Cooperative Equipment/Fees Cost Chastang Ford BuyBoard Contract #491-15 2017 Ford F150 4x2 $34,679 2017 Ford F150 4x4 $38,476 Lighting/Equipment $25,701 Cooperative Fees $400 Total $99,256

The City maintains executed Interlocal Agreements with BuyBoard, HGAC, and Tarrant County. Texas law (Government Code, Chapter 791) authorizes procurements through cooperative agreements for the purpose of increasing the efficiency and effectiveness of local governments by authorizing them to contract, to the greatest possible extent, with one another and with agencies of the state.

Funding Source: Equipment Replacement Fund

Recommended Action: Authorization to purchase fire department vehicles and equipment.

Department: Fire Contact / Phone No: John Ballard 972-291-5100 x 2333

Attachments: Yes If yes, how many pages: 5 EQUIPMENT Approved Equipment Purchases 2016-2017 (DRAFT)

DESCRIPTION OF ITEM DEPARTMENT COST ACCOUNT CODE

Motor Vehicles: Pick Up Truck (2)* Customer Service 44,000 0100-100-190-000-59130 4-Door Pickup Fire 49,000 0040-100-100-000-59130 4-Door Pickup (4 X 4) Fire 57,000 0040-100-100-000-59130 Extended Cab Truck (3/4 Ton - 2 ) Parks 58,000 0040-100-100-000-59130 Administrative Sedan Police 22,000 0040-100-100-000-59130 Patrol Vehicles (3) Police 126,000 0040-100-100-000-59130 Bus Recreation 94,000 0040-100-100-000-59130 Bucket Truck Streets 65,000 0040-100-100-000-59130 Vibratory Roller Streets 45,000 0040-100-100-000-59130 Dump Truck Streets 120,000 0040-100-100-000-59130 Backhoe* Water Operations 125,000 0100-700-760-000-59130

Total Motor Vehicles: $ 805,000

Office Equipment: Computers (30) Information Technology 27,000 0040-100-100-000-59140 SQL Server Information Technology 6,500 0040-100-100-000-59140 Laptops (5) Information Technology 4,000 0040-100-100-000-59140 Switches and Routers Information Technology 8,000 0040-100-100-000-59140 Toughbooks (2) Police 10,000 0040-100-100-000-59140

Total Office Equipment: $ 55,500

Miscellaneous Equipment: Dual Axel Trailer Parks 10,000 0040-100-100-000-59195 Score Boards (2) Recreation 12,000 0308-400-435-000-59195 Pool Pump Motor Recreation 10,000 0308-400-435-000-59195 Life Guard Stands Recreation 5,500 0308-400-435-000-59195 Audio Sound System** Recreation Center 150,000 0308-400-435-000-59195 Trailer (2) Streets 25,000 0040-100-100-000-59195 Fountain Spray** Valley Ridge 12,000 0308-400-415-000-59195

Total Miscellaneous Equipment: $ 224,500

Safety Equipment Siren Emergency Management 25,000 0040-100-100-000-59135 Mannequins Fire 24,500 0040-100-100-000-59135 Rescue Tools Fire 32,600 0040-100-100-000-59135 Thermal Imaging Camera Fire 23,400 0040-100-100-000-59135

Safety Equipment: $ 105,500

*To be paid from Enterprise Fund **To be paid from CDC

TOTAL EQUIPMENT: $ 1,190,500 Index Page 1 of 1

Phone: 800-695-2919 Fax: 800-211-5454 Email: [email protected]

Welcome Greg [ Log Off ]

Administration RFQ Purchase Order Reports Shopping Cart Help

Vendor Contract Information Back Search: Vendor Name: Chastang Ford Address: 6200 North Loop East All Houston, TX 77026 Vendor Discounts Only Phone Number: (713) 678-5007 Catalog Pricing Only Email: [email protected] Website: http://www.chastangford.com Refine Your Search: Federal ID: 76-0423419 Vendors Contact: Ed Miller Chastang Ford[X] Accepts RFQs: Yes Price Range Show all prices Minority Owned: Yes Category Women Owned: No None Selected Service-Disabled Veteran Owned: No Contract EDGAR: No None selected Contract Name: Fire Apparatus (Repair Parts and Repair Labor) Contract#: 491-15 Additional Searches: Effective Date: 09/01/2015

Search by Vendor Expiration Date: 08/31/2018 Payment Terms: Net 30 days Browse Contracts Delivery Days: 270 Shipping Terms: Pre-paid and added to invoice Freight Terms: FOB Destination Ship Via: Driveaway Region Served: All Texas Regions Additional Resources States Served: All States Quote Reference Number: 491-15

Contract Documents

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https://app.buyboard.com/Search/Index?SearchTerm=&VendorId=1366&Disco... 10/13/2016 WILDFIRE TRUCK & EQUIPMENT SALES CHASTANG FORD 5313 Big Six St. 6200 N. Loop East Alvarado, TX 76009 Houston, Texas 77026 888-452-2701, fax 817-783-3038 Ed Miller 713 678 5000

QUOTE FOR CEDAR HILL FIRE DEPT. EMS RESPONSE VEHICLE October 3, 2016 www.brushtruck.com

Vehicle: See Chastang Ford Spec Sheet for Details 2017 F150XLT, Super Crew Cab, 4x2, V-8, 5.5’ Box, 145”WB, Oxford White FD Graphics and Striping with Rear Chevron Striping WF Roof and Pillar Post to be Painted Sikkens Red WF Aluminum Diamond Back 270 Black Bed Cover WF Ranch Hand Black Grille Guard WF

Lighting Package 1-Whelen IX47UFX Inner Edge XLP 12LT Red & Blue 1-WhelenHHS2200 Hand Held Siren Switch Controller 1-Whelen SA315P Siren Speakers with mount SABKT1 Mounted to Grille Guard 2-Whelen M4D Series Red / White split with Clear Lens for Lower Front LED Warning Lights 2-Whelen IOND Series Red / White split with Clear Lens, Front Intersector LED Warning Lights 2-Whelen ION Series LED Red with Clear Lens Upper Tail Gate for Rear Warning Lights 2-Whelen ION Series LED Blue with Clear Lens Upper Tail Gate for Rear Warning Lights 3-Whelen ION Series LED 1 Red / 1 Blue /1-White Mounted Driver Side Lower Warning Lights 3-Whelen ION Series LED 1 Red /1 Blue/ 1 White Mounted Passenger Side Lower Warning Lights 2-Whelen ION Series LED Amber, Mounted on License Bracket for Lower Rear Warning 1-Whelen C1F 10” Continuum LEDFlood Mounted on Grille Guard 2-Whelen F36PC Compartment LED Tube Lighting for Bed Area 1-Master Disconnect Solenoid with Circuit Breaker

CHASTANG FORD F-150 $34,679.00 BUYBOARD FEE 400.00 WILDFIRE TRUCK & EQUIPMENT $10,745.50 TOTAL $45,824.50

David Evans Don Gibson [email protected] [email protected] WILDFIRE TRUCK & EQUIPMENT SALES CHASTANG FORD 5313 Big Six St. 6200 N. Loop East Alvarado, TX 76009 Houston, Texas 77026 888-452-2701, fax 817-783-3038 Ed Miller 713 678 5000 QUOTE FOR CEDAR HILL FIRE DEPT. FM RESPONSE VEHICLE October 3, 2016 www.brushtruck.com

Vehicle: See Chastang Ford Spec Sheet for Details 2017 F150XLT, Super Crew Cab, 4x4, V-8, 6.5’ Box, 145”WB, Oxford White FD Graphics and Striping with Rear Chevron Striping WF Roof and Pillar Post to be Painted Sikkens Red WF Aluminum Diamond Back 270 Black Bed Cover WF Ranch Hand Black Grille Guard WF Extendo Bed Slide for F150, 6.5’ Bed with 12 Volt Fuse Terminal Box at work station. WF

Lighting Package 1-Whelen IX47UFX Inner Edge XLP 12LT Red & Blue 1-WhelenHHS2200 Hand Held Siren Switch Controller 1-Whelen SA315P Siren Speakers with mount SABKT1 Mounted to Grille Guard 2-Whelen M4D Series Red / White split with Clear Lens for Lower Front LED Warning Lights 2-Whelen IOND Series Red / White split with Clear Lens, Front Intersector LED Warning Lights 2-Whelen ION Series LED Red with Clear Lens Upper Tail Gate for Rear Warning Lights 2-Whelen ION Series LED Blue with Clear Lens Upper Tail Gate for Rear Warning Lights 3-Whelen ION Series LED 1 Red / 1 Blue /1-White Mounted Driver Side Lower Warning Lights 3-Whelen ION Series LED 1 Red /1 Blue/ 1 White Mounted Passenger Side Lower Warning Lights 2-Whelen ION Series LED Amber, Mounted on License Bracket for Lower Rear Warning 1-Whelen C1F 10” Continuum LED Flood Mounted on Grille Guard 2-Whelen F36PC Compartment LED Tube Lighting for Bed Area

CHASTANG FORD F-150 4x4 $38,476.00 BUYBOARD FEE 400.00 WILDFIRE TRUCK & EQUIPMENT $14,955.50 TOTAL $53,831.50

David Evans Don Gibson [email protected] [email protected] Consent #5

CITY OF CEDAR HILL CITY COUNCIL AGENDA ITEM

Agenda Date: October 25, 2016

Agenda wording: Authorize the purchase of shade structures for neighborhood parks.

Summary: As part of the FY 2015-2016 budget, the Community Development Corporation (CDC) approved funding for shade structures at two new Neighborhood Parks, Bear Creek Park and Highlands Recreation Area and the City Council appropriated funds in the FY 2015-2016 Budget for the acquisition of Bear Creek Park and Highlands Recreation Area playground shade structures. Cost for shade structures for these neighborhood parks is $31,580.00.

The CDC board also approved Wildwood Park shade structures at their June 23, 2016 final FY 2016-2017 budget meeting and the City Council appropriated funds in the FY 2016-2017 Budget for the acquisition of the Wildwood Park playground shade structures. Cost for Wildwood shade structure is $29,604.00.

Staff requests authorization to procure the respective materials and installation from the vendor as follows:

Vendor ILA or Other Source of Pricing Equipment USAShade & Fabric BuyBoard Contract 512-16 Design & engineering, Structures fabrication, shipping & handling and installation

Funding Source: Community Development Corporation

Recommended Action: Authorize the purchase of playground shade structures from above listed vendor.

Department: Parks and Recreation Contact / Phone No: Carolyn Skeels 972.291.5100 x1515

Attachments: Yes If yes, how many pages: 27

Consent #6

CITY OF CEDAR HILL CITY COUNCIL AGENDA ITEM

Agenda Date: October 27, 2016

Agenda Item Wording: Consider Resolution No. R16-473 approving and adopting the City of Cedar Hill’s Investment Policy.

Summary: In accordance with the City’s current “Investment Policy” (Section XI), the City Council shall conduct an annual review. Further, by resolution, the City Council must state that it has reviewed the policy and investment strategies, and to approve any changes or modifications.

The changes that are being recommended by the Finance Department are:

 Page 6: Section III (Scope) adding additional funds: (1) EDC (Type 4A Sales Tax Corporation), (2) CDC (Type 4B Sales Tax Corporation) and, (3) Crime Control and Prevention District Sales Tax Fund.  Page 13: Section VII (Investment Parameters): Revision of Reserve Fund language to clarify and simply purpose of funds.  Page 16: Section IX (Collateral Policy): Adding an exception for deposits secured or collateralized with irrevocable letters of credit (LOC) at 100% of amount of deposit; LOC are pledged at face value and are not market driven.

The revisions have been reviewed by the City’s investment advisory firm and the City’s Investment Committee.

Funding Source: N/A

Recommended Action: Adopt Resolution No. R16-473.

Department: Finance Contact / Phone No: Alan Dickerson 972.291.5100 Ext. 1063

Attachments: Yes If yes, how many pages: 17 RESOLUTION NO. R16-473

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CEDAR HILL, TEXAS, ADOPTING THE CITY OF CEDAR HILL INVESTMENT POLICY (“CEDAR HILL INVESTMENT POLICY”) ATTACHED HERETO; DECLARING THAT THE CITY COUNCIL HAS COMPLETED ITS REVIEW OF THE INVESTMENT POLICY AND INVESTMENT STRATEGIES OF THE CITY AND THAT THE ATTACHMENT RECORDS ANY CHANGES TO EITHER THE INVESTMENT POLICY OR INVESTMENT STRATEGIES; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, in accordance with the Public Funds Investment Act, Chapter 2256, TEX. GOV’T CODE, the City Council of the City of Cedar Hill, Texas by resolution adopted an investment policy; and

WHEREAS, Section 2256.005(e), Tex. Gov’t Code requires the City Council to review the investment policies and investment strategies not less than annually and to adopt a resolution or order stating the review has been completed and recording any changes made to either the investment policies or investment strategies.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CEDAR HILL, TEXAS, THAT:

SECTION 1. The Investment Policy, attached hereto, is hereby adopted and shall govern the investment policies and investment strategies for the City, and shall define the authority of the investment official of the City from and after the effective date of this Resolution.

SECTION 2. That the City Council of the City of Cedar Hill has completed its review of the investment policies and investment strategies and any changes made to either the investment policies or investment strategies are recorded in the attachment hereto.

SECTION 3. That all provisions of the Resolutions of the City of Cedar Hill, Texas, in conflict with the provisions of this Resolution are hereby repealed, and all other provisions of the Resolutions of the City not in conflict with the provisions of this resolution shall remain in full force and effect.

SECTION 4. That should any word, sentence, paragraph, subdivision, clause, phrase or section of this Resolution be adjudged or held to be void or unconstitutional, the same shall not affect the validity of the remaining portions of said resolution, which shall remain in full force and effect. SECTION 5. That this Resolution shall become effective immediately from and after its passage.

SECTION 6. This Resolution shall take effect immediately from and after its passage, and it is accordingly so resolved.

DULY RESOLVED, PASSED, ADOPTED AND APPROVED by the City Council of the City of Cedar Hill, Texas, this the 25th day of October 2016.

APPROVED:

Rob Franke, Mayor ATTEST:

Belinda Berg, City Secretary TABLE OF CONTENTS

I. Policy ...... 3

II. Purpose ...... 3

III. Scope ...... 3-4

IV. Investment Objectives • Safety ...... 4-5 • Liquidity ...... 5 • Public Trust...... 5 • Yield……………...... 5

V. Responsibility and Control • Delegation of Authority ...... 5 • Quality and Capability of Investment Management ...... 5-6 • Training Requirements ...... 6 • Internal Controls……………...... 6 • Prudence ...... 7 • Indemnification ...... 7 • Ethics and Conflicts of Interest ...... 7 • Investment Committee……………...... 8

VI. Suitable and Authorized Investments • Portfolio Management ...... 8 • Investments o Authorized ...... 8-9 o Not Authorized ...... 9

VII. Investment Parameters • Maximum Maturities ...... 10 o Debt Service Fund ...... 10 o Reserve Funds ...... …………………………………………………………10 o Joe Pool Fund ...... 11 o Consolidated Cash Fund ...... 11 • Diversification ...... 11-12

VIII. Selection of Banks and Dealers • Depository ...... 12 • Authorized Brokers/Dealers ...... 12 • Competitive Bids ...... 12-13 • Delivery versus Payment ...... 13

IX. Custodial Credit Risk Management • Safekeeping and Custodial Agreements ...... 13

1 • Collateral Policy ...... 13 • Collateral Defined ...... 13-14 • Subject to Audit ...... 14 • Performance Standards ...... 14 • Performance Benchmark ...... 14

X. Reporting • Methods ...... 14-15 • Compliance Audits ...... 15 • Monitoring Market Value ...... 15

XI. Investment Policy Adoption ...... 15

2 INVESTMENT POLICY

I. POLICY

It is the policy of the City of Cedar Hill, Texas (“City”) that after allowing for the anticipated cash flow requirements of the City and giving due consideration to the safety and risk of the investment, all available funds shall be invested in conformance with these legal and administrative guidelines, seeking to optimize interest earnings to the maximum extent possible.

Effective cash management is recognized as essential to good fiscal management. Investment interest is a source of revenue to the City’s funds. The City’s investment portfolio shall be designed and managed in a manner designed to maximize this revenue source, to be responsive to public trust, and to be in compliance with legal requirements and limitations.

Investments shall be made with the primary objectives of:

• Safety and preservation of principal, • Maintenance of sufficient liquidity to meet operating needs, • Public trust from prudent investment activities, and • Optimization of interest earnings on the portfolio.

II. PURPOSE

The purpose of this investment policy is to comply with Chapter 2256 of the Government Code (“Public Funds Investment Act”, or “Act”, or “PFIA”) which requires each city to adopt a written investment policy regarding the investment of its funds and funds under its control. The Investment Policy addresses the methods, procedures and practices that must be exercised to ensure effective and judicious fiscal management of the City’s funds.

III. SCOPE

The Investment Policy shall govern the investment of all financial assets of the City. These funds are accounted for in the City’s Comprehensive Annual Financial Report (CAFR) and include:

• General Fund, • Special Revenue Funds, • Capital Project Funds, • Debt Service Funds, • Enterprise Funds, • 4A Economic Development Corporation Sales Tax Fund, • 4B Community Development Corporation Sales Tax Fund, • Crime Control and Prevention District Sales Tax DistrictFund, • Internal Service Funds,

3 • Trust and Agency Funds, to the extent not required by law or existing contract to be kept segregated and managed separately, and • Any new fund created by the City, unless specifically exempted from this Policy by the City Council or by law.

The City will consolidate cash balances except for water and sewer debt service funds, bond reserve funds and Joe Pool escrow funds to maximize investment earnings. Investment income will be allocated to the consolidated funds based on their respective participation in the consolidated balances and in accordance with generally accepted accounting principles.

This Investment Policy shall apply to all transactions involving the financial assets and related activity for all the foregoing funds. However, this Policy does not apply to the assets administered for the benefit of the City by outside agencies under pension plans or deferred compensation programs.

IV. INVESTMENT OBJECTIVES

The City shall manage and invest its cash with four primary objectives, listed in order of priority: safety, liquidity, public trust, and yield, expressed as optimization of interest earnings. The safety of the principal invested always remains the primary objective. All investments shall be designed and managed in a manner responsive to the public trust and consistent with state and local law.

The City shall maintain a comprehensive cash management program, which includes collection of account receivables, vendor payments in accordance with invoice terms, and prudent investment of available cash. Effective cash management is the process of managing monies in order to ensure maximum cash availability and maximum earnings opportunity on the short-term investment of idle cash.

Safety [PFIA 2256.005(b)(2)]

Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit and interest rate risk.

o Credit Risk and Concentration of Credit Risk - The City will minimize credit risk, the risk of loss due to the failure of the issuer or backer of the investment, and concentration risk, the risk of loss attributed to the magnitude of investment in a single issuer, by: • Limiting investments to the safest types of issuers; • Pre-qualifying the financial institutions and brokers/dealers with which the City will do business; and • Diversifying the investment portfolio so that potential losses on individual issuers will be minimized, as appropriate.

4 o Interest Rate Risk - The City will manage the risk that the interest earnings and the market value of investments in the portfolio will fall due to changes in general interest rates. The City will: • Structure the investment portfolio so that investments mature to meet cash requirements for ongoing operations, thereby avoiding the need to liquidate investments prior to maturity; • Invest operating funds primarily in certificates of deposit, shorter-term securities, financial institution deposits, money market mutual funds, or local government investment pools functioning as money market mutual funds; and • Diversify maturities and staggering purchase dates to minimize the impact of market movements over time.

Liquidity [PFIA 2256.005(b)(2)]

The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that investments mature concurrent with cash needs to meet anticipated demands. Because all possible cash demands cannot be anticipated, a portion of the portfolio will be invested in cash-equivalent options that offer same-day liquidity. In addition, any security positions will consist of securities with active secondary or resale markets.

Public Trust

All participants in the City’s investment process shall seek to act responsibly as custodians of the public trust. Investment Officers shall avoid any transaction that might impair public confidence in the City’s ability to govern effectively.

Yield (Optimization of Interest Earnings) [PFIA 2256.005(b)(3)]

The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above.

V. RESPONSIBILITY AND CONTROL

Delegation of Authority [PFIA 2256.005(f)]

In accordance with the Public Funds Investment Act, the City Council designates the Director of Finance as the City’s Investment Officer and the Accounting Manager will serve as the Junior Investment Officer. The Director may, when necessary, designate additional, subordinate investment officials. An Investment Officer is authorized to execute investment transactions on behalf of the City. No person may engage in an investment transaction of the management of City funds except as provided under the terms of this Investment Policy as approved by the

5 City Council. The investment authority granted to the Investment Officers is effective until rescinded by the City Council.

Quality and Capability of Investment Management [PFIA 2256.005(B)(3)]

The City shall provide periodic training in investments for the designated Investment Officers and other investment personnel through courses and seminars offered by professional organizations, associations, and other independent sources approved by the City Council in order to ensure the quality and capability of investment management in compliance with the Public Funds Investment Act.

Training Requirements [PFIA 2256.008-Local Governments]

In accordance with the Public Funds Investment Act, designated Investment Officers shall attend an investment training session no less often than once every two year period that begins on the first day of the City’s fiscal year and consists of the two consecutive fiscal years after that date, and shall receive not less than 8 hours of instruction relating to investment responsibilities. A newly appointed Investment Officer must attend a training session of at least 10 hours of instruction within twelve months of the date the Officer took office or assumed the Officer’s duties. The investment training session shall be provided by an independent source approved at least annually by the Investment Committee. For purposes of this Policy, an “independent source” from which investment training shall be obtained, shall include a professional organization, an institution of higher education or any other sponsor other than a business organization with whom the City may engage in an investment transaction.

Internal Controls [Best Practice]

The Director of Finance is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

In conjunction with the annual audit, the Director of Finance shall establish a process for independent review by the external auditor to assure compliance with policies and procedures. The internal controls shall address the following points:

• Control of collusion, • Separation of transactions authority from accounting and record keeping, • Custodial safekeeping, • Avoidance of physical delivery securities, • Clear delegation of authority of subordinate staff members, and • Written confirmation for transactions for investments and wire transfers.

6 Prudence [PFIA 2256.006]

The standard of prudence to be applied by the Investment Officers shall be the “prudent person” rule. This rule states that “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” In determining whether an Investment Officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration:

• The investment of all funds, or funds under the City’s control, over which the Investment Officer had responsibility rather than a consideration as to the prudence of a single investment, and

• Whether the investment decision was consistent with the written approved Investment Policy of the City.

Indemnification [Best Practice]

The Investment Officers, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific investment’s credit risk or market price changes, provided that these deviations are reported immediately and the appropriate action is taken to control adverse developments.

Ethics and Conflicts of Interest [PFIA 2256.005(i)]

Investment Officers and employees involved in the investment process shall refrain from personal business activity that would conflict with the proper execution and management of the investment program, or that would impair their ability to make impartial decisions. Employees and Investment Officers shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and Investment Officers shall refrain from undertaking personal investment transactions with the same individual with which business is conducted on behalf of the City.

An Investment Officer who has a personal business relationship with an organization seeking to sell an investment to the City shall file a statement disclosing that personal business interest. An Investment Officer who is related within the second degree by affinity or consanguinity to an individual seeking to sell an investment to the City shall file a statement disclosing that relationship. A statement required under this subsection must be filed with the Texas Ethics Commission and the City Council.

Investment Committee [Best Practice]

7 There shall be established an Investment Committee to oversee the implementation of investment strategies and other cash and investment management-related activities. Members of this Committee include the Director of Finance (as chairman), the City Manager, Assistant City Manager(s), and the Accounting Manager. Additional members may be appointed by the Committee as appropriate. The Committee shall meet at such times as necessary or requested by an Investment Officer.

VI. SUITABLE AND AUTHORIZED INVESTMENTS

Portfolio Management

The City currently has a “buy and hold” portfolio strategy. Maturity dates are matched with cash flow requirements and investments are purchased with the intent to be held until maturity. However, investments may be liquidated or redeemed prior to maturity for the following reasons: • An investment with declining credit may be liquidated early to minimize loss of principal, or • Cash flow needs of the City require that the investment be liquidated.

Investments [PFIA 2256.005(b)(4)(A)]

City funds governed by this Policy may be invested in the instruments described below, all of which are authorized by Chapter 2256 of the Government Code (Public Funds Investment Act). Investment of City funds in any instrument or security not authorized for investment under the Act is prohibited. The City will not be required to liquidate an investment that becomes unauthorized subsequent to its purchase.

I. Authorized

 Obligations of the United States or its agencies and instrumentalities.

 Direct obligations of the State of Texas or its agencies and instrumentalities rated AA- or better.

 Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State of Texas or the United States or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States.

 Obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent.

8  Financial institution deposits that, are issued by a state or national bank that a) has its main office or a branch office in Texas and is guaranteed or insured by the Federal Deposit Insurance Corporation or its successor, b) is secured by obligations in a manner and amount provided by law and this Policy for deposits of the City, or c) is executed through a depository institution or approved broker that has its main office or a branch office in Texas that meets the requirements of the PFIA.

 Fully collateralized direct repurchase agreements with a defined termination date secured by obligations of the United State or its agencies and instrumentalities. These shall be pledged to the City, held in the City’s account, and deposited at the time the investment is made with the City or with a third party selected and approved by the City. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in Texas. A Repurchase Agreement must be signed by the bank/dealer prior to investment in a repurchase agreement. All repurchase agreement transactions must have a market value of purchased securities greater than or equal to 102 percent of the total balance of the agreement.

 Money Market Mutual funds that: (1) are registered and regulated by the Securities and Exchange Commission, (2) seek to maintain a net asset value of $1.00 per share, and (3) are rated AAA by at least one nationally recognized rating service.

 Local government investment pools, which (1) meet the requirements of Chapter 2256.016 of the Public Funds Investment Act, (2) are rated no lower than AAA or an equivalent rating by at least one nationally recognized rating service, and (3) are authorized by resolution or ordinance by the City Council.

All prudent measures will be taken to liquidate an investment that is downgraded to less than the required minimum rating. (PFIA 2256.021)

II. Not Authorized [PFIA 2256.009(b)(1-4)]

 Collateralized mortgage obligations.

 Commercial paper.

 Banker's acceptances.

 Reverse repurchase agreements.

 No-load mutual funds other than no-load money market mutual funds.

 Guaranteed investment contracts.

9  Share certificates of qualifying credit unions.

 Securities lending programs.

VII. INVESTMENT PARAMETERS

Maximum Maturities [PFIA 2256.005(b) (4)(B)] and Investment Strategies [PFIA 2256.005(d)

General The City’s basic investment strategy is to utilize investment options that represent suitable risk/return alternatives based on the overall objectives of safety of principal and maintenance of liquidity.

All financial assets shall seek to preserve principal by restricting the authorized investment instruments to those investments with suitable and limited credit and market risk.

The City may utilize fund-type investment groups. These groups will reflect similar needs as to maturity limits, diversity, and liquidity.

The objective of liquidity stems from the need of the City to maintain available cash balances sufficient to cover financial outlays. Since the timing and amount of some financial disbursements are not predictable, fund-type strategies shall adjust for the certainty of projected cash flows.

Security marketability will be maintained based on the fund-type strategies to sufficiently and reasonably assure that investments could be liquidated prior to the maturity, if circumstances dictate.

Investments shall be diversified to minimize the risk of loss resulting from concentration of assets in a specific maturity, a specific issuer, or a specific class of investment.

City funds shall seek to achieve a competitive yield appropriate for each strategy. A comparably structured U.S. Treasury security portfolio shall represent the minimum yield objective. Weighted average yield to maturity shall be the portfolio’s performance measurement standard. Yield objectives shall at all times be subordinate to the objectives of safety and liquidity. Tax-exempt debt proceeds shall be invested to maximize the interest earnings retained by the City, while at the same time fully complying with all applicable State laws and federal regulations, including the arbitrage rebate regulations.

All investment-specific restrictions shall be measured at the time of purchase and based on portfolio book value.

10 The City maintains the following fund-type portfolios which will utilize the following specific investment considerations designed to address the unique characteristics of the pooled fund groups or separately held investment assets represented in the portfolios:

(1) Debt Service Fund

The City will maintain a Water and Sewer debt service fund. This fund will be operated as separately invested assets, with the exception that, for administrative purposes, funds may be commingled with the Consolidated Cash Fund (described in (4) below) on a temporary basis. Investment strategies for the debt service fund shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date. Investments purchased shall not have a stated final maturity date that exceeds the corresponding debt service payment date.

(2) Reserve Funds

As needed, the City will maintain two separate reserve funds: funds in the Water and Sewer reserve fund and funds in the Cedar Hill Community Development Corporation reserve fund. Additional debt service reserve funds will be established as required by ordinance, resolution, indenture, or law. Investment strategies for debt service reserve funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligations not funded by debt service funds on the required payment date. Investment of reserve funds is controlled by their ordinance, resolution or indenture, and Federal and State law. Bond documents must be examined for each issue, for potential differences with this Policy concerning investment instruments, maximum maturity or average life restrictions, call dates or sinking fund redemptions, and applicable arbitrage yields and rebate liability. Provisions contained in the bond documents will supersede provisions of this Policy.

Reserve funds will be invested using a more conservative approach than the current standard investment strategy when arbitrage rebate rules require refunding excess earnings. All excess earnings received will be segregated to allow a proper determination of interest income to be used in the arbitrage calculation.

Maturity limitations for single issue reserve funds shall not exceed the final maturity of that bond issue. The maximum stated final maturity for investments shall be five years. Funds not invested in individual investments may participate in the Consolidated Cash Fund.

(3) Joe Pool Lake Fund

The investment strategy for the Joe Pool Lake Fund will have as its primary objective the accumulation of resources to extinguish the Joe Pool Lake water rights liability. The portfolio may have a maximum maturity of forty (40) years.

11 Funds not invested in individual investments may participate in the Consolidated Cash Fund.

(4) Consolidated Cash Fund

The Consolidated Cash Fund shall operate as a pooled fund group and consist of all City funds not designated as another fund. The investment strategies for the Consolidated Cash Fund have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to create a portfolio structure that will experience minimal volatility during economic cycles. This may be accomplished by purchasing investments that will complement each other in a laddered or barbell maturity structure. The dollar weighted average maturity of the 365 days or less will be calculated using the stated final maturity dates of each investment. The maximum maturity date using the stated final maturity date for an individual investment is three years.

Should the Joe Pool Lake Fund experience reduction or full liquidation, the Reserve and Consolidated Cash Funds maturity and weighted average maturity limitations may be waived by the Council, with recommendation from the Investment Committee, allowing retained ownership of approved inter-fund investment transfers regardless of Policy constraints.

Diversification [PFIA 2256.005(b)(3)]

The City recognizes that investment risks can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Risk is managed through portfolio diversification that shall be achieved by the following general guidelines:

• Limiting investments to avoid overconcentration in investments from a specific issuer or business sector, when appropriate, • Limiting investment in higher credit risk issuers, • Investing in investments with varying maturities, and • Continuously investing a portion of the portfolio in readily available funds such as financial institution deposits, local government investment pools (LGIPs), money market funds, or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations.

VIII. SELECTION OF BANKS AND DEALERS

Primary Depository [Local Government Code Chapter 105]

At least every five years a Primary Depository shall be selected through the City’s banking services procurement process, which shall include a formal request for application (RFA). The selection of a primary depository will be determined by

12 evaluation of the “best value” criteria during the RFA process, and may include the following selection criteria:

• The ability to qualify as a depository for public funds in accordance with state law, • The ability to provide requested information or financial statements for the periods specified, • The ability to meet the minimum required items in the banking RFA, • Complete response to all required items on the RFA form, and • Competitive net banking service cost, consistent with the ability to provide an appropriate level of service.

Authorized Brokers/Dealers [PFIA 2256.025]

The Investment Committee shall, at least annually, review, revise and adopt a list of qualified broker/dealers authorized to engage in securities transactions with the City. Those firms that become qualified may be required to provide a completed broker/dealer questionnaire that provides information regarding creditworthiness, experience and reputation. Authorized firms may include primary dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule), and qualified depositories.

Investment Policy Certification [PFIA 2256.005 (k)]

All investment providers, including broker/dealers, financial institutions, banks, money market mutual funds, and local government investment pools, must sign a certification acknowledging that the organization has received and reviewed the City’s Investment Policy and that reasonable procedures and controls have been implemented to preclude investment transactions that are not authorized by the City’s Policy.

Competitive Environment [Best Practice]

It is the policy of the City to require a competitive environment for all individual security purchases and sales, financial institution time deposit placements and financial institution transaction accounts, money market mutual fund and local government investment pool selections. The Director of Finance shall develop and maintain procedures for ensuring a competitive environment in the investment of the City’s funds.

Delivery versus Payment [PFIA 2256.005(b)(4)(E)]

Securities shall be purchased using the delivery versus payment method. Funds will be released after notification that the purchased security has been received.

IX. CUSTODIAL CREDIT RISK MANAGEMENT

Safekeeping and Custodial Agreements

The City shall contract with a bank or banks for the safekeeping of securities either owned by the City as part of its investment portfolio or held as collateral to secure demand or time deposits. Securities owned by the City shall be held in the City’s account as evidenced by safekeeping receipts of the institution holding the securities.

Collateral Policy [PFCA 2257.023]

The City has established a collateral policy in compliance with Government Code Chapter 2257, Collateral for Public Funds. With the exception of deposits secured with irrevocable letters of credit at 100% of amount, Tthe collateral policy requires that deposits be secured with pledged collateral with a market value equal to no less than 102% of the principal plus accrued interest of the deposit, less any amount insured by the FDIC. All depository deposits shall be insured or collateralized in compliance with applicable State law. The City reserves the right, in its sole discretion, to accept or reject any form of insurance or collateralization pledged towards depository deposits. Financial institutions serving as City Depositories will be required to sign a depository agreement with the City. The collateralized deposit portion of the agreement shall define the City’s rights to the collateral in case of default, bankruptcy, or closing, and shall establish a perfected security interest in compliance with Federal and State regulations, including:

• The agreement must be in writing;

• The agreement has to be executed by the Depository and City contemporaneously with the acquisition of the asset;

• The agreement must be approved by the Board of Directors or designated committee of the Depository and a copy of the meeting minutes must be delivered to the City; and

• The agreement must be part of the Depository’s “official record” continuously since its execution.

Collateral Defined

Acceptable forms of collateral are limited to those authorized in the Public Funds Collateral Act. Any collateral other than U.S. Treasury Securities which has a maturity of over three (3) years must be approved by an Investment Officer in writing before the transaction is initiated.

Subject to Audit

All collateral shall be subject to inspection and audit by the City or the City’s independent auditors.

X. REPORTING [PFIA 2256.023]

Methods

Each quarter, the Investment Officers shall prepare and submit to the City Council a written report of all investment transactions. The investment report will be prepared in a manner that will allow the City to ascertain whether investment activities during the reporting period have conformed to the Investment Policy. The report will be provided to the City Council and include the following:

• A listing of individual investments held at the end of the reporting period, • Unrealized gains or losses resulting from appreciation or depreciation, by listing the beginning and ending book and market value of investments for the period, • Additions and changes to the market value during the period, • Average weighted yield to maturity of portfolio, • Listing of investment by maturity date, • Fully accrued interest for the reporting period, • The percentage of the total portfolio that each type of investment represents, and • Statement of compliance of the City’s investment portfolio with state law and the investment strategy and policy approved by the City Council.

This report must be prepared jointly and signed by all Investment Officers of the City.

In conjunction with the investment report preparation, the Investment Officers will obtain from a reliable source the current credit rating for each held investment that has a PFIA-required minimum rating.

Compliance Audits

The City, in conjunction with its annual financial audit, will require the audit firm to conduct a compliance audit of the management controls on investments and adherence to investment policies.

Monitoring Market Value [PFIA 2256.005(b)(4)(D)]

Market value of all securities in the portfolio will be determined on a monthly basis. Market valuations obtained by the City shall be from independent sources believed to be accurate and representative of each security’s fair value.

XI. INVESTMENT POLICY ADOPTION [PFIA 2256.005(e)]

The City’s Investment Policy shall be adopted by resolution of the City Council. It is the City’s intent to comply with State laws and regulations. The City’s Investment Policy shall be subject to revisions consistent with changing laws, regulations, and the needs of the City. The City Council shall adopt a resolution stating that it has reviewed the policy and investments strategies annually, approving any changes or modifications.

15 Consent #7

CITY OF CEDAR HILL CITY COUNCIL AGENDA ITEM

Agenda Date: October 25, 2016

Agenda wording: Consider approval of Cooperative Purchasing Agreement between the City of Abilene, Texas and the City of Cedar Hill, Texas for the purchase of various goods and services and authorizing the City Manager to execute any all documents relating thereto.

Summary: In accordance with the Local Government Code (LGC), Chapter 791 pertaining to Interlocal Cooperation Contracts, the City of Abilene would like to participate with the City of Cedar Hill for the purpose of purchasing medical supplies by pairing with the City of Cedar Hill on our contract with Bound Tree Medical, LLC.

This agreement allows the City of Abilene to continue to receive competitive pricing for EMS Supplies. The purpose of LGC 791 is to provide local governments to contract with one another allowing for time saving, economies of scale as well as other efficiencies and effectiveness in the procurement process.

Funding Source: N/A

Recommended Action: Authorize City Manager to execute Cooperative Purchasing Agreement between the City of Abilene, TX and the City of Cedar Hill, TX.

Department: Fire Contact / Phone No: John Ballard 972-291-5100 x 2333

Attachments: Yes If yes, how many pages: 10