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HomeMy WebLinkAbout2018-04-24 Work Session & Regular Meeting Packet AGENDA City Council Work Session Tuesday, April 24, 2018 @ 7:30 PM A nna City Hall, Council Chambers 111 N. P owell P arkway, Anna, Texas 75409 T he C ity C ouncil of the C ity of A nna will meet in Work Session at 7:30 P M, on A pril 24, 2018, at the A nna C ity Hall, L ocated at 111 North Powell P arkway (Hwy 5), to consider the following items. 1.Call to Order, Roll Call and Establishment of Quorum 2.B riefing/Discussion regarding the proposed Oak Ridge development. (B ill Shipp) a 3.City Manager search process and R F P (Bill S hipp) a 4.C L O S E D S E S S I O N (E X C E P T I O NS ) Under Tex. Gov't Code Chapter 551, the City Counci l may enter into closed session to discuss any items listed or referenced on this agenda under the following exceptions: a.Consult with legal counsel regarding pending or contemplated litigation and/or on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of P rofessional C onduct of the S tate B ar of Texas clearly conf licts with C hapter 551 of the Government C ode (Tex. Gov’t Code §551.071); a b.Discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov’t Code §551.072); city facilities; acquisition of easements a c.Discuss or deliberate personnel matters (Tex. Gov’t C ode §551.074); City Attorney A nnual Review, City Manager a The Council further reserves the ri ght to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 5.Consider/Discuss/Action on any items listed on any agenda—work session, regular meeting, or closed session—that is duly posted by the C ity of A nna for any City Council meeting occurring on the same date as the meeting noticed in this agenda. (I f there is no need to address any other such agenda item, the Mayor shall adjourn this meeting). 6.A djourn. There being no f urther business bef ore the Council, we will consider this meeting adjourned at ___________ p.m. T his is to certify that I , Carrie L . S mith, City S ecretary, posted this agenda at a place readily accessible to the public at the A nna C ity Hall and on the City Hall bulletin board at or before 5:00 p.m. on . ___________________________________ Carrie L . S mith, City Secretary 1. The Council may vote and/or act upon each of the items listed in this agenda. 2. The Council reserves the right to retire into executive session c oncerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act. 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924-3325 two working day s prior to the meeting so that appropriate arrangements can be made. Item No. 2. City Council Agenda Staff Report Meeting Date: 4/24/2018 AG E ND A IT E M : B riefing/Discussion regarding the proposed Oak Ridge development. (B ill Shipp) S UM M ARY: S TAF F RE C O M M E ND AT I O N: Item No. 3. City Council Agenda Staff Report Meeting Date: 4/24/2018 AG E ND A IT E M : City Manager search process and R F P (Bill S hipp) S UM M ARY: S TAF F RE C O M M E ND AT I O N: AGENDA THE CITY OF Regular City Council Meeting AAAa Tuesday, April 24, 2018 @ 7:30 P M Anna City Hall, Council Chambers 111 N. Powell Parkway, Anna, Texas 75409 The City Council of the City of Anna will meet in Regular Session at 7.30 PM, on April 24, 2018, at the Anna City Hall, Located at 111 North Powell Parkway (Hwy 5), to consider the following items. Welcome to the City Council Meeting. Please sign the Sign -In -Sheet as a record of attendance. If you wish to speak on an open -session agenda item, please fill out the Opinion/Speaker Registration Form and turn it in to the City Secretary before the meeting starts. 1. Call to Order, Roll Call and Establishment of Quorum. 2. Invocation and Pledge of Allegiance. 3. Citizen Comments. Citizens are allowed three minutes to speak. The Council is unable to respond to or discuss any issues that are brought up during this section that are not on the agenda, other than to make statements of specific factual information in response to a citizen's inquiry or to recite existing policy in response to the inquiry. 4. Receive reports from Staff or the City Council about items of community interest. Items of community interest include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen (but not including a change in status of a person's public office or public employment); a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; and announcements involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. a. Proclamation proclaiming May the Month for Motorcycle Awareness. 5. Consent Items. These items consist of non -controversial or "housekeeping" items required by law. Items may be considered individually by any Council member making such request prior to a motion and vote on the Consent Items. a. Approve the Council Meeting Minutes for April 10, 2018. b. Review minutes of the Park Board meeting on March 19, 2018.(Maurice Schwanke) c. Review of minutes from the CDC meetings from January 11, 2018 and February 1, 2018. d. Review minutes from the EDC meetings from January 11, 2018 and February 1, 2018. 6. Consider/Discuss/Act on a Resolution appointing a member to the Greater Texoma Utility Association Board of Directors. (City Council) 7. Consider/Discuss/Action on a resolution approving a land trade for land on the new city hall site for the existing city hall site.(Maurice Schwanke) 8. Consider/Discuss/Action on a leaseback agreement for existing city hall. (Maurice Schwanke) 9. CLOSED SESSION (EXCEPTIONS) Under Tex. Gov't Code Chapter 551, the City Council may enter into closed session to discuss any items listed or referenced on this agenda under the following exceptions: a. Consult with legal counsel regarding pending or contemplated litigation and/or on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov't Code §551.071); property complaints b. Discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); city facilities; acquisition of easements C. Discuss or deliberate personnel matters (Tex. Gov't Code §551.074); City Attorney Annual Review, City Manager, Police Chief and related contracts and appointments d. Discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the City is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1). (Tex. Gov't Code §551.087); discuss lease of property held by Economic Development Corporation; possible incentive agreements with commercial property developers; pending negotiations on development agreements The Council further reserves the right to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 10. Consider/Discuss/Action on any items listed on any agenda —work session, regular meeting, or closed session —that is duly posted by the City of Anna for any City Council meeting occurring on the same date as the meeting noticed in this agenda. (If there is no need to address any other such agenda item, the Mayor shall adjourn this meeting). 11. Adjourn. There being no further business before the Council, we will consider this meeting adjourned at p.m. This is to certify that I, Carrie L. Smith, City Secretary, posted this agenda at a place readily accessible to the public at the Anna City Hall and on the City Hall bulletin board at or before 5:00 p.m. on April 20, 2018 Carrie L. Smith, City Secretary 1. The Council may vote and/or act upon each of the items listed in this agenda. 2. The Council reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act. 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924-3325 two working days prior to the meeting so that appropriate arrangements can be made. Cite of Anna, Texas Proclamation MOTORCYCLE AWARENESS MONTH May 2018 WHEREAS, Motorists are reminded to be alert and help keep motorcyclists safe, and motorcyclists are reminded to make themselves visible to other motorists; and WHEREAS, Motorcyclists have all the same rights and privileges as any motor vehicle driver on the roadway, and all road users are reminded to pay attention at all times; and WHEREAS, The simple rules of motorcycle safety include being trained and licensed, wearing protective gear, riding unimpaired, and riding within personal limits; and WHEREAS, Motorcycle awareness campaigns help inform riders and motorists about safety issues and remind us to safely share the road. NOW, THEREFORE, I, Nate Pike, Mayor of the City of Anna, Texas, do hereby proclaim the month of May 2018 as: MOTORCYCLE AWARENESS MONTH in the City of Anna, Texas and urge all residents to do their part to increase safety and awareness in our community. c5n n7tness whereof 67 here hereunto set mp hand this 22fth dap flApnl, 2018 and c6rlled this seal to be mixed Nate Pike, Mayor THE CITY OF AiAtia AGENDA ITEM: Approve the Council Meeting Minutes for April 10, 2018. SUMMARY: STAFF RECOMMENDATION: ATTACHMENTS: Description Work Session Regular Session Item No. 5.a. City Council Agenda Staff Report Meeting Date: 4/24/2018 Upload Date Type 4/20/2018 Backup Material 4/20/2018 Backup Material ANNA CITY COUNCI L MINUTES WORK SESSION April 10, 2018 The City Council of the City of Anna met in Work Session on the above date at Anna City Hall, located at 111 North Powell Parkway (Hwy 5), to consider the following items. 1. Call to Order, Roll Call and Establishment of Quorum Mayor Pike called the meeting to order at 6:31 p.m. Council Member Miller arrived at 7:00 p.m. 2. Briefing/Discussion regarding the FY 2019 Budget Calendar (Dana Thornhill) 3. Briefing/Discussion regarding Municipal Facilities. (Bill Shipp) 4. Briefing/Discussion regarding GovHR - Proposal. (Bill Shipp) 5. CLOSED SESSION (EXCEPTIONS) Under Tex. Gov't Code Chapter 551, the City Council may enter into closed session to discuss any items listed or referenced on this agenda under the following exceptions: a. Discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); city facilities; acquisition of easements b. Consult with legal counsel regarding pending or contemplated litigation and/or on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code; code enforcement action (Tex. Gov't Code §551.071); C. Discuss or deliberate personnel matters (Tex. Gov't Code §551.074); City Attorney Annual Review, City Manager d. Discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the City is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1). (Tex. Gov't Code §551.087); discuss lease of property held by Economic Development Corporation; possible incentive agreements with commercial property developers; pending negotiations on development agreements. MOTION: Council Member Miller moved to enter closed session. Council Member Bryan seconded. Motion carried 7-0. Mayor Pike recessed the meeting into closed session at 7:10 p.m. Mayor Pike reconvened the meeting at 7:29 p.m. The Council further reserves the right to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 6. Consider/Discuss/Action on any items listed on any agenda —work session, regular meeting, or closed session —that is duly posted by the City of Anna for any City Council meeting occurring on the same date as the meeting noticed in this agenda. 7. Adjourn. There being no further business before the Council, we will consider this meeting adjourned at p.m. Mayor Pike adjourned the meeting at 7:29 p.m. Approved on the April 24, 2018. Mayor Nate Pike ATTEST: City Secretary Carrie L. Smith ANNA CITY COUNCI L MINUTES REGULAR SESSION April 10, 2018 1. Call to Order/Roll Call and Establishment of Quorum Mayor Pike called the meeting to order at 7:30 p.m. All members were present. 2. Invocation and Pledge of Allegiance. 3. Citizen Comments. Citizens are allowed three minutes to speak. The Council is unable to respond to or discuss any issues that are brought up during this section that are not on the agenda, other than to make statements of specific factual information in response to a citizen's inquiry or to recite existing policy in response to the inquiry. There were a number of speakers in favor of the City building a library. A number of citizens spoke in opposition to item 5e. "Treasured Vessels". William and Kathleen Morgan spoke in opposition to the City's water supply. 4. Receive reports from Staff or the City Council about items of community interest. Items of community interest include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen (but not including a change in status of a person's public office or public employment); a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; and announcements involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. 5. Consent Items. These items consist of non -controversial or "housekeeping" items required by law. Items may be considered individually by any Council member making such request prior to a motion and vote on the Consent Items. Items d, e, f, and i were removed from the Consent Agenda. a. Approve Council Minutes for March 27, 2018. (City Secretary) b. Review minutes of the Planning and Zoning meeting for March 5, 2018. (Maurice Schwanke) C. Review Quarterly Investment Report (Dana Thornhill) d. Approve a Resolution authorizing the Mayor to execute an I nterlocal Agreement with Collin County for road maintenance. The City of Anna has an existing interlocal agreement (ILA) with Collin County for road maintenance that is set to expire this year. This item authorizes the Mayor to sign a new I LA that will continue the agreement for road maintenance through 2022. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AN INTERLOCAL AGREEMENT WITH COLLIN COUNTY FOR ROAD MAINTENANCE. MOTION: Council Member Miller moved to approved. Council Member Martinez seconded. Motion carried 7-0. e. Approve a Resolution approving the "Treasured Vessels" Development Plat. (Maurice Schwanke) The development plat is located within Anna's extra -territorial jurisdiction (ETJ) and generally known as 8839 County Road 512. The tract is in the W.W. Roberts Survey, Abstract No. 785 and contains 26.19 acres of land. The owner is proposing constructing a series of small residential units. The location is outside Anna City limits but within the ETJ. The City of Anna does not have land use jurisdiction in the ETJ. The submittal meets the City of Anna development plat requirements. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING THE "TREASURED VESSELS" DEVELOPMENT PLAT. MOTION: Council Member Martinez moved to approve. Council Member Beazley seconded. Motion carried 5-2. Reeves and Bryan opposed. f. Approved a Resolution approving the "Roper Auto Repair & Retail Center" site and landscape plans located at 916 W White St. (Maurice Schwanke) Brian Roper, owner of property, has submitted a site and landscape plan regarding "Roper Auto Repair and Retail Center" located at 916 W White Street. Currently, located on the site is an auto repair shop, an impounded vehicle storage, wrecked semi trailers and a communication tower. The property backs to single family residential to the north and east. The project proposed is to remove all of the impounded cars, wrecked semi trailers and remove the existing auto repair facility. The communication tower will remain. Planned for the site is a 7,200 square foot retail Center and a 5,462 square foot automotive repair shop. Under the current zoning classification of the current zoning ( "C-1 ") retail uses as well as minor automotive repair is allowed. The site plan stipulates that no bay doors of the automotive repair structure are oriented towards the residential land uses. Additionally, a 6' masonry screening wall is required abutting the residential property. Prior to development of the site, construction plans are required to be approved as well as a final plat. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A SITE AND LANDSCAPE PLAN FOR THE ROPER AUTO REPAIR SHOP AND RETAIL CENTER. MOTION: Council Member Miller moved to approve. Council Member Burr seconded. Motion carried 7-0. g. Approve a Resolution approving the "Mudpies Addition Lot 1 R and Lot 2" final plat. (Maurice Schwanke) The "Mudpies Addition" final plat is located at 817 S. Interurban Street. The final plat is adding lot 2 and extending an access easement from Lot 1 to Lot 2. Currently, an existing house that is not occupied exists on lot 2 while a daycare (Mudpies and Lullaby's) exist on lot 1 r. The purpose of this plat is to provide access to the property north of the Mudpies and Lullaby's daycare for additional non - required parking. Both lots are owned by same owners. The submittal meets the City of Anna subdivision rules and regulations. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A FINAL PLAT OF THE MUDPIES ADDITION. h. Approve a Resolution approving the "Bartolome" final plat. (Maurice Schwanke) The Bartolome Final Plat is located at 316 E 6th St and is in the Guinn Morrison Survey, Abstract No 559. The plat contains 0.286 Acres (12,477 sq. ft.) and is being platted for a potential 425 sq. ft. addition to his home. This area is in the older part of Anna has not been platted before. The lot currently contains an existing single family structure and a detached garage. The Final plat layout is in conformance with the existing zoning. Please note that the existing house is bisected by the 25' front setback and is setback from the center line of 6th Street by 45.1 feet. The house is a legal nonconforming structure since it was built prior to adoption of Anna's Zoning Ordinance adoption and the setback requirements. The proposed expansion is at the back of the house. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING THE BARTOLOME FINAL PLAT. Consider/Discuss/Action approving a Resolution approving the "One Anna Two Addition" preliminary plat. (Maurice Schwanke) The One Anna Two Preliminary Plat contains 77.396 acres located in the W. S. Rattan Survey, Abstract No 752 and the Thomas Rattan Survey, Abstract No. 782. This tract is located at the NW corner of Hwy 75 and White St. The Preliminary Plat contains an approximate 24-acre lot for potential medical and commercial uses with the remaining tract to the south to be platted later. The tract was recently rezoned to "PD" for C-1 uses plus several additional uses. During the development of the final plat all engineering concerns will be addressed such as the provision of water, fire hydrant locations, wastewater, storm drainage, and fire lane easements. For this site a water line will need to be provided under U.S. 75 via a bore. Wastewater is proposed to be extended to the south to an existing wastewater main that exists under U.S. 75 and traverses the Walmart site to the east. Storm drainage will be captured at the southwest corner of the 24 acre lot. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A PRELIMINARY PLAT OF ONE ANNA TWO ADDITION. MOTION: Mayor Pike moved to approve. Council Member Beazley seconded. Motion carried 7-0. 6. Consider/Discuss/Action on an Ordinance authorizing the issuance and sale of City of Anna, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2018; levying an annual ad valorem tax and providing for the security for and payment of said Certificates; approving the official statement; providing an effective date; and enacting other provisions relating to the subject. (Dana Thornhill) The City Council will consider an Ordinance authorizing the issuance of approximately $31,520,000 Combination Tax and Revenue Certificates of Obligations Bonds, Series 2018 in order to finance the acquisition and construction of a new Municipal Complex including a new City Hall containing a Police Station, Municipal Court, and administrative offices, a new stand alone Fire Station, pay the costs of professional services including the costs of issuance, and to improve streets. The issuance of the Combination Tax and Revenue Certificates of Obligation Bonds,Series 2018, will have no impact to the City's property tax rate. Instead, the City will reallocate the Maintenance and Operations portion of the tax rate to offset the increase in the Interest and Sinking (Debt Portion) of the tax rate. ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF CITY OF ANNA, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2018; LEVYING AN ANNUAL AD VALOREM TAX AND PROVIDING FOR THE SECURITY FOR AND PAYMENT OF SAID CERTIFICATES OF OBLIGATION; APPROVING THE OFFICIAL STATEMENT; PROVIDING AN EFFECTIVE DATE; AND ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT. MOTION: Council Member Burr moved to approve. Council Member Martinez seconded. Motion carried 7-0. 7. Public Hearing on a voluntary annexation of a 10.144 acre tract of land located in the Grandison Stark Survey, Abstract No. 798. (Maurice Schwanke) This proposed annexation involves approximately 10.144 acres of land within the Grandison Stark, Abstract No. 798. The area fronts on E. Foster Crossing Road and is east of State Highway Number 5 and is owned by the Skorburg Company. The Skorburg Company has petitioned the City requesting the annexation (voluntary). A second public hearing will be held during the regular City Council Meetings on May 8th. A final vote on the annexation would be scheduled on May 8th after the public hearing. Mayor Pike opened the public hearing at 8:43 p.m. No comments. Mayor Pike closed the public hearing at 8:43 p.m. 8. Discuss/Consider/Act on a Resolution authorizing the City Manager to enter into a professional services agreement with GovHR USA for recruitment of a Chief of Police with an option for recruitment of a City Manager. The City of Anna sent on March 14, 2018 requests for RFP to six executive search firms for the executive search of the Chief of Police position and potentially a search for a City Manager. Four proposals were received by the City Secretary prior to the deadline of March 29, 2018 at 3:00 PM. A committee of three City of Anna employees was formed that included Ms. Stephanie Beitelschies, HR Manager, Mr. Maurice Schwanke, Director of Planning and Mr. Bill Shipp, Interim City Manager. The committee used the following grading criteria that was laid out in the RFP request to evaluate each proposal: A. A statement of qualifications, history and experience of the firm to include identification of all key personnel who will be assigned to the project and the specific role of each individual. (25%) B. An explanation of the proposer's objectives and approach to the candidate search including an outline of the process and methodology to be utilized, along with a concise timeline by which the process will occur. (25%) C. A list of a minimum of four client references, specifically from executive searches for the position of Chief of Police and City Manager. (25%) D. The detailed and itemized cost of associated fees and expenses for the project, including but not limited to rates and estimated hours. The City prefers a flat rate for evaluation purposes. (25%) Out of the four proposals received, the committee's recommendation will be to move forward with executive search firm, GOVHR USA. GOVHR USA was established in 2009 and is currently based out of Illinois. GOVHR USA works in over 24 states across the nation and has conducted over 600 recruitments for cities, counties, special districts and other governmental entities of all sizes throughout the county. GOVHR USA has assigned two Vice President recruiters to the City of Anna, both with extensive law enforcement career backgrounds. Ms. Heidi Voorhees and her team anticipate this project to last 90 days from signing of the contract. GOVHR USA has received several outstanding recommendations from their clients and the City of Anna staff is confident they will provide an excellent service as we search for our City of Anna Chief of Police. GOVHR USA's price for the recruitment fee will be $14,000, recruitment expenses of $6,000 and an advertising fee of $2,500 for a grand total of $22,500. MOTION: Council Member Miller moved to enter closed session. Council Member Bryan seconded. Motion carried 6-1 Burr opposed. Mayor Pike recessed the meeting into closed session at 10:14 in accordance with Tex. Gov't Code §551.071 and §551.074. Mayor Pike reconvened the meeting at p.m. A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH GOVHR USA TO RECRUIT A CHIEF OF POLICE WITH AN OPTION TO RECRUIT A CITY MANAGER. MOTI ON: Council Member Beazley moved to approve. Council Member Martinez seconded. Motion carried 6-1. Miller opposed. 9. Consider/Discuss/Action on a resolution approving the Natural Springs Park land swap. The City has working on a land swap of 1.185 acres that is currently in Natural Springs Park for a tract of land that is surrounded on three sides by natural springs park. A proposition was taken to the voters of Anna and approved on May 6, 2017. Since the election, a land exchange agreement was entered into, a site plan contemplating the exchange was approved, a re -plat of the property was approved, and construction plans have been approved. Additionally, the City Council has approved a revised concept plan for Natural Springs Park that was recommended by the Anna Parks Board that contemplated the land swap. As such, the approval of the attached resolution is the final ratification of the land swap before the actual closing and transferring of the property. A RESOLUTION OF THE CITY OF ANNA, TEXAS, APPROVING A LAND EXCHANGE AUTHORIZED BY VOTERS OF THE CITY OF ANNA IN A MAY 6, 2017 ELECTION FOR PROPERTY TO BECOME PART OF NATURAL SPRINGS PARK IN EXCHANGE FOR LAND CURRENTLY PART OF NATURAL SPRINGS PARK. MOTION: Council Member Burr moved to approve. Council Member Martinez seconded. Motion carried 6-1. Miller opposed. 10. Consider/Discuss/Action regarding a Resolution authorizing the City Manager to execute a contract with Highway 19 Construction, LLC to construct driveway and parking facilities at Natural Springs Park. (Maurice Schwanke) The City Council previously granted authorization to solicit competitive sealed proposals for driveway and parking facilities at Natural Springs Park. The project includes approximately 2,138 square yards of 6-inch reinforced concrete pavement with lime stabilization. On March 22, 2018 at 3:00 PM, competitive sealed proposals were publicly opened and read for the driveway and parking facilities at Natural Springs Park. 10 proposals were received. Our engineering consultant (Birkhoff, Hendricks & Carter) has evaluated the competitive sealed proposals received; checked references, and the contractors' qualifications and ability to perform the project. Subsequently, our consulting engineer has recommended that the City accept the proposal from Highway 19 Construction, LLC and award them a contract in the amount of $176,061.60. $170,000 of funds were budgeted in the current budget year. Funds are available for this project in the Parks Trust Fund. The driveway and parking facilities at Natural Springs Park Project supports the following goals from the City's adopted Strategic Plan: (1) Focus on improvements to Natural Springs Park (ponds, restrooms, parking areas, office space). A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH STAFF RECOMMENDS APPROVAL OF THE RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH HIGHWAY 19 CONSTRUCTION, LLC TO CONSTRUCT DRIVEWAY AND PARKING FACILITIES AT NATURAL SPRINGS PARK. MOTION: Council Member Burr moved to approve. Council Member Martinez seconded. Motion carried 7-0. 11. Consider/Discuss/Action on a Resolution authorizing the City Manager to enter an agreement with PM AM Corporation, a third -party false alarm management company. (Chief Caponera) The inefficient process through which the PD records manager must go through to handle the alarm program consumes approximately 10 to 12 hours each week. PM AM Corporation will manage all aspects of the alarm program from initial permitting to false alarm prevention training. PM AM will also provide a customer portal that will allow citizens to maintain their accounts, including making payments online. MOTION: Council Member Beazley moved to approve subject to City Attorney's approval of agreement. Council Member Miller seconded. Motion carried 7-0. 12. Consider/Discuss/Action regarding a Resolution authorizing the City Manager to execute an engineering task order with Birkhoff, Hendricks & Carter, LLP for the US 75 Utility Relocation Project - Phase 2. (Joseph Johnson) The Texas Department of Transportation (TxDOT) has acquired additional right-of- way in order to prepare for the planned expansion of US 75 between CR 371 and Mantua. Funding for the project is imminent and TxDOT has requested that the City move forward with utility relocation. The City has a water line near Mantua that conflicts with the planned road expansion and will need to be relocated. Projected construction cost for the relocation is estimated to be $497,506 with the total project cost estimated at $597,257. At this time, we believe that approximately 55% of the project may be eligible for TxDOT reimbursement. The task order, if approved, would generally authorize design of the project and additional services as the project progresses. Under the task order, basic services is for the lump sum of $54,860 with additional services at $14,640 for a total not -to - exceed amount of $69,500. Funding is available for design of the project within the City's Capital Project Fund. The utility relocation project supports the expansion of US 75 which is an infrastructure goal in the City's adopted Strategic Plan. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AND AUTHORIZING THE CITY MANAGER TO ACT ON THE CITY'S BEHALF IN EXECUTING AN ENGINEERING SERVICE TASK ORDER WITH BIRKOFF, HENDRICKS & CARTER, LLP FOR THE US 75 UTILITY RELOCATION PROJECT — PHASE 2. MOTION: Council Member Bryan moved to approve. Council Member Beazley seconded. Motion carried 7-0. 13. Consider/Discuss/Action regarding a Resolution authorizing the City Manager to execute an engineering task order with Birkhoff, Hendricks & Carter, LLP for the East-West Collector Road Project. (Joseph Johnson) The East-West Collector Road Project is generally located near the northwest corner of US 75 and FM 455. The proposed project would construct 24' of a planned 37' roadway in 60' of right-of-way. The alignment extends west from the US 75 southbound service road through a large future commercial center with the project's west terminus ending at a large future residential development. The engineering task order provides for design services as well as certain other ancillary services as needed in order to position the project for bidding and construction. Basic Services for the project are for the lump sum amount of $82,080 with Additional Services at $6,035 for a total not -to -exceed amount of $88,115. Funds are available for the design of the project through collected roadway impact fees. The project aligns with the City's adopted Strategic Plan goals of pursuing targeted economic development and building transportation infrastructure. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AND AUTHORIZING THE CITY MANAGER TO ACT ON THE CITY'S BEHALF IN EXEC UT I NG AN ENGINEERING SERVICE TASK ORDER WITH BIRKHOFF, HENDRICKS & CARTER, LLP FOR THE EAST -WEST COLLECTOR ROAD PROJECT. MOTION: Council Member Miller moved to approve. Council Member Bryan seconded. Motion carried 7-0. 14. Consider/Discuss/Action regarding a Resolution authorizing the City Manager to execute an engineering task order with Birkhoff, Hendricks & Carter, LLP for the East-West Collector Water Line Project. (Joseph Johnson) The East-West Collector Water Line Project is generally located near the northwest corner of US 75 and FM 455. If constructed, the proposed 12" water line would connect to an existing water line on the east side of US 75 and would generally align with the proposed East-West Collector Road Project on the west side of US 75. The project would extend a 12" water line through a future commercial center with the west terminus of the project ending at a future large residential development. The water line is part of a critical loop that is needed for the water distribution system on the west side of US 75. The engineering task order provides for design services as well as certain other ancillary services as needed in order to position the project for bidding and construction. Basic Services for the project are for the lump sum amount of $52,100 with Additional Services at $2,530 for a total not -to -exceed amount of $54,630. Funds are available for the design of the project through collected water impact fees. The project aligns with the City's adopted Strategic Plan goals of pursuing targeted economic development and upgrading City infrastructure. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AND AUTHORIZING THE CITY MANAGER TO ACT ON THE CITY'S BEHALF IN EXEC UT I NG AN ENGINEERING SERVICE TASK ORDER WITH BIRKHOFF, HENDRICKS & CARTER, LLP FOR THE EAST -WEST COLLECTOR WATERLINE PROJECT. MOTION: Council Member Beazley moved to approved. Council Member Martinez seconded. Motion carried 7-0. 15. Consider/Discuss/Action on an Ordinance amending the Alarm Fee Structure. (Chief Caponera) The current alarm ordinance was enacted in 2006. Since then, the city has experienced significant growth. The added residential and commercial sites have increased the number of alarm calls exponentially. The goal of amending the alarm ordinance is to provide a more comprehensive and enforceable ordinance to help reduce the number of false alarms that require a police and/or a fire response. Our current ordinance does not account for multifamily dwellings and the fee structure did not differentiate between residential and commercial alarm permits. The amended ordinance cleans up the verbiage under several sections, restructures the fee schedule to come into alignment with current standards, and adds a component that allows citizens a process to dispute fees associated with suspension and revocation of permits. AN ORDINANCE OF THE CITY OF ANNA, TEXAS, AMENDING THE CITY OF ANNA CODE OF ORDINANCES BY REPEALING AND REPLACING PART II, ARTICLE 8, SECTIONS 17.01 THROUGH 17.21 AND PART IV, SCHEDULE OF FEES, ARTICLE 5, SECTION 5; AMENDING ALARM PERMIT AND ALARM RESPONSE FEES; PROVIDING FOR A PENALTY FOR ANY VIOLATION OF THIS ORDINANCE NOT TO EXCEED $500; PROVIDING FOR SAVINGS, SEVERABILITY, AND REPEALING CLAUSES; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. MOTION: Mayor Pike moved to approve. Council Member Beazley seconded. Motion carried 7-0. 16. Consider/Discuss/Action on an Ordinance amending the FY 2018 annual budget. (Dana Thornhill) The proposed budget amendment includes the funding for the following purposes and will be offset by an increase in revenues to the State Seizure Fund: • Funds for the Police Department to purchase a crime reporting platform, P3TI PS, which would allow citizens to communicate anonymous tips to police personnel. In addition this also provide another outlet for communication and cross communication of critical information - $1,000 • Funds to develop a social media platform and independent website to help with recruitment - $2,500 • Funds to purchase wireless cradle points for patrol cars - $11,253 A summary of the proposed budget amendment is included as Exhibit A of the attached Ordinance. The total requested budget amendments are as follows: State Seizure Fund Revenues - Increase in the amount of $20,985 State Seizure Fund Expenditures - Increase in the amount of $14,753 AN ORDINANCE AMENDING ORDINANCE NO. 752-2017 ADOPTING THE BUDGET FOR THE 2017-2018 FISCAL YEAR; PROVIDING FOR SAVINGS, SEVERABILITY, AND REPEALING CLAUSES; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. MOTION: Council Member Beazley moved to approve. Council Member Miller seconded. Motion carried 7-0. 17. Consider/Discuss/Action appointing 2 Neighborhood Design Advisory Committee members by Councilman Beazley and accepting other resignations and appointments as necessary. (City Secretary) Council Member Beazley appointed Gary Lyon and Jody Bills. MOTION: Council Member Burr accepted Lora Johnson's resignation. Council Member Bryan seconded. Motion carried 7-0. 18. CLOSED SESSION (EXCEPTIONS) Under Tex. Gov't Code Chapter 551, the City Council may enter into closed session to discuss any items listed or referenced on this agenda under the following exceptions: a. Discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); city facilities; acquisition of easements b. Consult with legal counsel regarding pending or contemplated litigation and/or on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code; code enforcement action (Tex. Gov't Code §551.071); c. Discuss or deliberate personnel matters (Tex. Gov't Code §551.074); City Attorney Annual Review, City Manager d. Discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the City is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1). (Tex. Gov't Code §551.087); discuss lease of property held by Economic Development Corporation; possible incentive agreements with commercial property developers; pending negotiations on development agreements. 19. Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary None. 20. Adjourn. Mayor Pike adjourned the meeting at 10:48 p.m. Approved on the April 24, 2018. Mayor Nate Pike ATTEST: City Secretary Carrie L. Smith THE CITY OF AiAtia AGENDA ITEM: Item No. 5.b. City Council Agenda Staff Report Meeting Date: 4/24/2018 Review minutes of the Park Board meeting on March 19, 2018.(Maurice Schwanke) SUMMARY: STAFF RECOMMENDATION: ATTACHMENTS: Description Minutes Upload Date Type 4/19/2018 Exhibit MINUTES ANNA PARK BOARD MEETING March 19, 2018 The Park Board of the City of Anna held a regular scheduled meeting on Monday, March 19, 2018, at 7:00 p.m. at the Community Room of Anna City Hall Administration Building, located at 111 North Powell Parkway (Hwy 5), to consider the following items. 1. Consider/Discuss/Action on recommendations for potential activities at Sherley Park. The meeting was called to order at 7:06 p.m. Members present were Judith Waldrop, Danna Ward and Stan Carver. Staff present was Maurice Schwanke and Matt Lewis. Jody Bill, representative for Liberty Tax regarding the special event request was present for meeting. A motion was made by Judith Waldrop, seconded by Stan Carver to recommend approval of the special event request. Motion passed 2. Discussion concerning Park Updates. a. Johnson Park b. Natural Springs Park c. Slayter Creek Park d. Other Parks as necessary The above items were discussion only. No action was taken. 3. Park Minutes. • January 22, 2018 • February 20, 2018 Special Meeting A motion was made by Judith Waldrop, seconded by Stan Carver to approve Minutes of the meetings listed above. Motion passed 4. Adjourn. A motion was made by Judith Waldrop, seconded by Stan Carver to adjourn meeting. The meeting adjourned at 8:35 p.m. Maurice Schwanke Director of Planning and Development ATTEST: THE CITY OF AiAtia AGENDA ITEM: Item No. 5.c. City Council Agenda Staff Report Meeting Date: 4/24/2018 Review of minutes from the CDC meetings from January 11, 2018 and February 1, 2018. SUMMARY: STAFF RECOMMENDATION: ATTACHMENTS: Description Upload Date Type CDC Minutes 1-11-2018 4/18/2018 Backup Material CDC Minutes 2-1-2018 4/18/2018 Backup Material MINUTES OF THE ANNA COMMUNITY DEVELOPMENT CORPORATION Thursday, January 11, 2018 DEVEELL COPMIJU E ENT COF.PO RATIOI! The Anna Community Development Corporation ("CDC') of the City of Anna met at 5:00' p.m., on Thursday, January 11, 2018 at the Anna City Hall Administration Building, 111 North Powell Parkway (Hwy. 5), Anna, Texas. Call to Order, Roll Call and Establishment of Quorum. Alonzo Tutson, President, called the meeting to order at 5:04 p.m., and after roll call and the establishment of a quorum, the following items were presented to the Directors for their consideration. Directors in attendance: Alonzo Tutson, Brent Thomas, Connie Stump, Anthony Richardson, James Gurski, and Doug Hermann. Directors in Abstention: None A quorum was declared present and the floor was open for business. Others in attendance: Clark McCoy, legal counsel for CDC; and Jessica Perkins Chief Administrative Officer, and Lauretta Blacketer, secretary. 2. Invocation and Pledge. Brent Thomas gave the invocation and led the group in the Pledge of Allegiance. 3. Citizen Comments. None 4. Consider/Discuss/Action regarding approving a resolution that would allow the CDC to quit claim deed property located at Natural Springs Park to the City of Anna that is currently jointly owned by the City and the CDC. Motion made by Doug Herman to approve a resolution that would allow the CDC to quit claim deed property located at Natural Springs Park to the City of Anna that is currently 'ADDITIONAL NOTICE REGARDING MEETING TIME: In the event that the Anna Economic Development Corporation meets at the same time and place scheduled for this meeting, then this meeting will be delayed and will begin immediately after the conclusion of the meeting of the Anna Economic Development Corporation. IMPORTANT l.EGAI. NOTICE: The Corporation may vote and/or act upon each of the items listed in this agenda. The Corporation reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Opening Meetings Act. Disable persons who want to attend this meeting and who may need assistance should contact the City Secretary at 972-924-3325 two working days prior to the meeting so that appropriate arrangements can be made. 01-11-2018 Regular CDC Minutes.doc jointly owned by the City and the CDC. Seconded by Brent Thomas. Motion passed by all. 5. Discussion regarding a resolution of support for a charter amendment regarding residency restrictions of board members (Alonzo Tutson). Alonzo Tutson requested discussion regarding a resolution of support for a charter amendment regarding residency restrictions of board members. 6. Closed Session. a. Discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072). b. Consult with legal counsel on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov't Code §551.071) c. Discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the Board of Directors has received from a business prospect that the Board of Directors seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the Board is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1) (Tex. Gov't Code §551.087); Anna Business Park property. d. Discuss or deliberate personnel matters (Tex. Gov't Code §651.074); Chief Ad- ministrative Officer. Brent Thomas made a motion to enter closed session. Connie Stump seconded the mo- tion. The board moved into closed session at 5:52pm. After the board discussed the business at hand, Anthony Richardson made a motion to return to open session. Doug Hermann seconded the motion. All in favor. The board returned to open session at 6:32pm. 7. Consider/Discuss/Action regarding minutes from November 2, 2017 and December 7, 2017. Brent Thomas made a motion to accept the minutes as written. Doug Hermann seconded the motion. Motion passed. IMPORTANT LEGAL NOTICE: The Corporation may vote and/or act upon each of the items listed in this agenda. The Corporation reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Opening Meetings Act. Disable persons who want to attend this meeting and who may need assistance should contact the City Secretary at 972-924-3325 two working days prior to the meeting so that appropriate arrangements can be made. 01-11-2018 Regular CDC Minutes.doc 2 8. Adjourn. Doug Hermann made a motion to adjourn the meeting. James Gurski seconded the motion and the meeting adjourned at 6:37 p.m. APPROVED: Alonzo utson President of CDC ATTESTED: ,,QQ�� — �d-t"� �a4ureaBlacketer Secretary of CDC IMPORTANT LEGAL NOTICE: The Corporation may vote and/or act upon each of the items listed in this agenda. The Corporation reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Opening Meetings Act. Disable persons who want to attend this meeting and who may need assistance should contact the City Secretary at 972-924-3325 two working days prior to the meeting so that appropriate arrangements can be made. 01-11-2018 Regular CDC Minutes.doc MINUTES OF THE ANNA COMMUNITY DEVELOPMENT CORPORATION COMMUNITY COR ORNiOP. Thursday, February 1, 2018 The Anna Community Development Corporation ("CDC') of the City of Anna met at 5:001 p.m., on Thursday, February 1, 2018 at the Anna City Hall Administration Building, 111 North Powell Parkway (Hwy. 5), Anna, Texas. 1. Call to Order, Roll Call and Establishment of Quorum. Alonzo Tutson, President, called the meeting to order at 5:05 p.m. A quorum was declared present and the floor was open for business. Directors in attendance: Alonzo Tutson, Connie Stump, Anthony Richardson, and James Gurski. Brent Thomas (joined the meeting at 5:48 pm) Directors in Abstention: Doug Hermann Others in attendance: Clark McCoy, legal counsel for CDC; Jessica Perkins Chief Administrative Officer, and Lauretta Blacketer, Secretary. 2. Invocation and Pledge. Connie Stump gave the invocation and led the group in the Pledge of Allegiance. 3. Citizen Comments. Mayor Nate Pike thanked the board for their service. 4. Consider/Discuss/Action electing a Vice -President. Connie Stump nominated Brent Thomas for Vice -President. James Gurski seconded the nomination of Brent Thomas. There were no other nominations. Brent Thomas was elected as Vice -President by a unanimous vote. 5. Consider/Discuss/Action regarding approving a resolution granting an underground Easement and ROW to Oncor Wire. Anthony Richardson made a motion to table items 5 and 6. Connie Stump seconded the motion. Motion passed by all. 'ADDITIONAL NOTICE REGARDING MEETING TIME: In the event that the Anna Economic Development Corporation meets at the same time and place scheduled for this meeting, then this meeting will be delayed and will begin immediately after the conclusion of the meeting of the Anna Economic Development Corporation. IMPORTANT LEGAL NO HCE: The Corporation may vote and/or act upon each of -the items listed in this agenda. 'rhe Corporation reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Opening Meetings Act. Disable persons who want to attend this meeting and who may need assistance should contact the City Secretary at 972-924-3325 two working days prior to the meeting so that appropriate arrangements can be made. 02-1-2018 Regular CDC Minutes.doc 1 6. Consider/Discuss/Action regarding approving a resolution granting an above ground Easement and ROW to Oncor Wire. This item was tabled with item 5. 7. Closed Session. a. Discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §561.072). b. Consult with legal counsel on matters in which the duty of the attorney to the gov- ernmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 661 of the Government Code (Tex. Gov't Code §661.071) c. Discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the Board of Directors has received from a business prospect that the Board of Directors seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the Board is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1) (Tex. Gov't Code §551.087); Anna Business Park property. Anthony Richardson made a motion to enter closed session. Jim Gurski seconded the motion. All in favor. The board moved to closed session at 5:15pm. After the business at hand was discussed, Connie Stump made a motion to return to open session. Anthony Richardson se- conded the motion. All in favor. The board returned to open session at 5:47pm. 8. Consider/Discuss/Action regarding minutes from January 11, 2018. Brent Thomas made a motion to accept the minutes as written. James Gurski seconded the motion. Motion passed by all. 9. Adjourn. Anthony Richardson made a motion to adjourn the meeting. Connie Stump seconded the motion and the meeting adjourned at 6:52 p.m. APPROVED: ATTESTED: Cc1 onzo Jutso6 Lau tta Blacketer Preside t of CDC Sec r tary of CDC IMPORTANT LEGAL NOTICE: The Corporation may vote and/or act upon each of the items listed in this agenda. The Corporation reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Opening Meetings Act. Disable persons who want to attend this meeting and who may need assistance should contact the City Secretary at 972-924-3325 two working days prior to the meeting so that appropriate arrangements can be made. 02-1-2018 Regular CDC Minutes.doc THE CITY OF AiAtia AGENDA ITEM: Item No. 5.d. City Council Agenda Staff Report Meeting Date: 4/24/2018 Review minutes from the EDC meetings from January 11, 2018 and February 1, 2018. SUMMARY: STAFF RECOMMENDATION: ATTACHMENTS: Description Upload Date Type EDC Minutes 1-11-2018 4/18/2018 Backup Material EDC Minutes 2-1-2018 4/18/2018 Backup Material MINUTES OF THE ANNA ECONOMIC DEVELOPMENT CORPORATION Thursday, January 11, 2018 The Anna Economic Development Corporation ("EDC") of the City of Anna met at 5:00 p.m.', on Thursday, January 11, 2018, at the Anna City Hall Administration Building, 111 North Powell Parkway (Hwy. 5), Anna, Texas. 1. Call to Order, Roll Call and Establishment of Quorum. Connie Stump, President, called the meeting to order at 6:38 p.m. After roll call and a declaration that a quorum was present, the floor was open for business. Directors in attendance: Alonzo Tutson, Brent Thomas, Connie Stump, Nate Pike, Doug Hermann, Anthony Richardson, and James Gurski. Directors in Abstention: none all present Staff in attendance: Clark McCoy, legal counsel for the CDC and EDC boards; Jessica Perkins, Chief Administrative Officer and Lauretta Blacketer, secretary. 2. Citizen Comments. None 3. Consider/Discuss/Action regarding adopting a resolution authorizing a professional services agreement with the City of Anna Parks Department for mowing and landscape services for property at 312 North Powell Parkway. Motion made by Anthony Richardson to approve. The motion was seconded by Brent Thomas. Motion passed. 4. CLOSED SESSION (EXCEPTIONS) a. Discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072). b. Consult with legal counsel on matters in which the duty of the attorney to the government body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the government Code (Tex. Gov't Code §551.071). C. Discuss or deliberate Economic Development Negotiations: NOTICE REGARDING MEETING TIME: In the event that the Anna Economic Development Corporation meets at the same time and place scheduled for this meeting, then this meeting will be delayed and will begin immediately after the conclusion of the meeting of the Anna Community Development Corporation. IMPORANT LI"GAL NOTICE: The Corporation may vote and/or act upon each ofthc items listed in this agenda. The Corporation reserves the right to retire into executive session conccming any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Open Meetings Act. Disabled person who want to attend the meeting and may need assistance should contact the City Secretary at 972-924-3325 two working days prior to the meeting so that appropriate arrangements can be made. 1-11-2018 Reg EDC Meeting — Page 1 (1) To discuss or deliberate regarding commercial or financial information that the Board of Directors has received from a business prospect that the Board of Directors seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the Board is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1) (Tex. Gov't Code §561.087); Anna Business Park. Alonzo Tutson made a motion to enter closed session. Jim Gurski seconded the motion. All in favor. The board enter closed session at 6:54pm. After the business at hand was discussed, Alonzo Tutson made a motion to return to open session. Jim Gurski seconded the motion. All in favor. The board returned to open session at 7:23pm 5. Consider/Discuss/Action adopting the minutes from November 2, 2017 and December 7, 2017 meetings. Alonzo Tutson made a motion to adopt the minutes as written. Brent Thomas seconded the motion. Motion passed. 6. Adjourn. Brent Thomas made a motion to adjourn the meeting. Alonzo Tutson seconded the motion and the meeting adjourned at 7:23 p.m. APPROVED: �i Constance Ann Stump President of EDC ATTESTED: NOTICE REGARDING MEETING TIME: In the event that the Anna Economic Development Corporation meets at the same time and place scheduled for this meeting, then this meeting will be delayed and will begin immediately after the conclusion of the meeting of the Anna Community Development Corporation. IMPORANT LEGAL NOTICE: The Corporation may vote and/or act upon each of the items listed in this agenda. The Corporation reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Open Meetings Act. Disabled person who want to attend the meeting and may need assistance should contact the City Secretary at 972-924-3325 two working days prior to the meeting so that appropriate arrangements can be made. 01-11-2018 Reg EDC Meeting — Page 2 MINUTES OF THE ANNA ECONOMIC DEVELOPMENT CORPORATION Thursday, February 1, 2018 The Anna Economic Development Corporation ("EDC") of the City of Anna met at 5:00 p.m.', on Thursday, February 1, 2018, at the Anna City Hall Administration Building, 111 North Powell Parkway (Hwy. 5), Anna, Texas. 1. Call to Order, Roll Call and Establishment of Quorum. Connie Stump, President, called the meeting to order at 5:52 p.m. After roll call and a declaration that a quorum was present, the floor was open for business. Directors in attendance: Alonzo Tutson, Brent Thomas, Connie Stump, Anthony Richardson, and James Gurski. Directors in Abstention: Doug Hermann Staff in attendance: Clark McCoy, legal counsel for the CDC and EDC boards; Jessica Perkins, Chief Administrative Officer and Lauretta Blacketer, Secretary. 2. Citizen Comments. None 3. Consider/Discuss/Action regarding approving a resolution granting an underground Easement and ROW to Oncor Wire. Motion made by Alonzo Tutson to table items 3 and 4. The motion was seconded by James Gurski. Motion passed. 4. Consider/Discuss/Action regarding approving a resolution granting an above ground Easement and ROW to Oncor Wire. This item was tabled as per above. 5. Discussion regarding Landscape Architect Proposals for the median and entry feature for the Anna Business Park. Jessica Perkins reviewed the proposals received. The board indicated that they wanted to move forward with Belle Firma. NOTICE REGARDING MEETING TIME: In the event that the Anna Economic Development Corporation meets at the same time and place scheduled for this meeting. then this meeting will be delayed and will begin immediately alter the conclusion ofthe meeting of the Anna Community Development Corporation. IMPORANT LEGAL NOTICE: 'I lie Corporation may vote and/or act upon each ()]'the items listed in this agenda. The Corporation reserves the right to retire into executive session concerning any of the items listed on this agenda. whenever it is considered necessary and legally justified under the Open Meetings Act. Disabled person who want to attend the meeting and may need assistance should contact the City Secretary at 972-924-3325 two working days prior to the meeting so that appropriate arrangements can be made. 02-1-2018 Reg EDC Meeting — Page 1 6. CLOSED SESSION (EXCEPTIONS) NOTHING FOR CLOSED SESSION! a. Discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072). b. Consult with legal counsel on matters in which the duty of the attorney to the government body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the government Code (Tex. Gov't Code §551.071). C. Discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the Board of Directors has received from a business prospect that the Board of Directors seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the Board is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1) (Tex. Gov't Code §551.087); Anna Business Park. Skipped. Consider/Discuss/Action approving the minutes from January 11, 2018 meeting. Alonzo Tutson made a motion to table the minutes as written. Anthony Richardson seconded the motion. Motion passed by all. 8. Adjourn. Brent Thomas made a motion to adjourn the meeting. James Gurski seconded the motion and the meeting adjourned at 6:22 p.m. APPROVED: Conka'nce�n�tump President of EDC ATTESTED: ' NOTICE REGARDING MEETING TIME: In the event that theAnna Economic Development Corporation meets at the same time and place scheduled for this meeting, then this meeting will be delayed and will begin immediately alter the conclusion of the meeting of the Anna Community Development Corporation. IMPORANT LEGALNO'PICE: The Corporation may vote and/or act upon each of the items listed in this agenda. The Corporation reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified tinder the Open Meetings Act. Disabled person who want to attend the meeting and may need assistance should contact the City Secretary at 972-924-3325 Nvo working days prior to the meeting so that appropriate arrangements can be made. 02-1-2018 Reg EDC Meeting — Page 2 THE CITY OF AiAtia AGENDA ITEM: Item No. 6. City Council Agenda Staff Report Meeting Date: 4/24/2018 Consider/Discuss/Act on a Resolution appointing a member to the Greater Texoma Utility Association Board of Directors. (City Council) SUMMARY: Mr. Ty Chapman appointed to the Board of Director's is stepping down from the Council will need to fill the vacancy created. The term will be for one-year expiring in December 2018. The qualifications for the position are as follows: (1) the person may not be a Director if he or she is an officer, employee, or member of the governing body of a municipal corporation, and (2) each Director shall be a qualified Elector of the city that nominates him or her. STAFF RECOMMENDATION: ATTACHMENTS: Description Upload Date Type Resolution 4/20/2018 Resolution CITY OF ANNA, TEXAS RESOLUTION NO. A RESOLUTION OF THE CITY OF ANNA, TEXAS MAKING AN APPOINTMENT TO THE GREATER TEXOMA UTILITY AUTHORITY BOARD OF DIRECTORS WHEREAS, the City of Anna, Texas (the "City") is a member of the Greater Texoma Utility Authority ("GTUA" or the "Authority"); and, WHEREAS, GTUA is a special -law district organized under Article XVI, Section 59, of the Texas constitution and operates under Chapter 49 of the Texas Water Code; and, WHERAS, GTUA is governed by a Board of Directors appointed by its member cities; and, WHEREAS, Place 8 on the GTUA Board is appointed by the City Council of the City of Anna, Texas (the "City Council"); and, WHEREAS, the term of current GTUA Board member serving in Place 8 expires at the end of 2018. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The recitals above are incorporated herein as if set forth in full for all purposes. Section 2. Appointment to the GTUA Board of Directors. The City Council hereby appoints serve a one-year term in Place 8 on the GTUA Board of Directors. to fill a vacancy and PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this 9th day of January 2018. ATTEST: APPROVED: City Secretary Carrie L. Smith Resolution No. Mayor Nate Pike THE CITY OF AiAtia AGENDA ITEM: Item No. 7. City Council Agenda Staff Report Meeting Date: 4/24/2018 Consider/Discuss/Action on a resolution approving a land trade for land on the new city hall site for the existing city hall site.(Maurice Schwanke) SUMMARY: As part of the City Hall project the City is securing land currently owned by Jonic Investments, LLC, a Texas limited liability company by trading for the land currently occupied by City Hall with the difference in value being a cash transaction. As part of the sale agreement the City will be have a leaseback provision and wherein the cash payment is being reduced by $20,265 which represents three years of interest compounded annually on the sale amount difference of $315,000 at the rate of 2.1 %. The following item on the agenda is the leaseback agreement wherein the rent for the leaseback of the current City Hall facility is $10 Annually. The rent will increase to $1,000 per month after January 1, 2021. STAFF RECOMMENDATION: Approve the resolution approving the land trade with Jonic Investments, LLC, a Texas limited liability Company. ATTACHMENTS: Description Upload Date Type Resolution Approving Land Trade 4/19/2018 Resolution Contract for sale and leaseback 4/19/2018 Exhibit CITY OF ANNA, TEXAS RESOLUTION NO. A RESOLUTION OF THE CITY OF ANNA, TEXAS, APPROVING A LAND EXCHANGE FOR PROPERTY OWNED BY JONIC INVESTMENTS, LLC, A TEXAS LIMITED LIABILITY COMPANY FOR PROPERTY CURRENTLY USED AS CITY HALL FOR THE CITY OF ANNA. WHEREAS, the City Council of the City of Anna, Texas ("City Council'), has found that the property owned by Jonic Investments, LLC, a Texas limited liability company is needed for the city hall project; and, WHEREAS, Jonic Investments, LLC, a Texas limited liability company is willing to trade land owned for property currently owned by the City of Anna that is currently being used as city hall; and WHEREAS, Jonic Investments, LLC, a Texas limited liability company is willing to leaseback city hall to the City until the new proposed city hall is constructed; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The recitals above are incorporated herein as if set forth in full for all purposes. Section 2. Authorization to convey property and execute agreement. The City Council hereby approves the conveyance and granting of fee simple title to Jonic Investments, LLC, a Texas limited liability company by warranty deed in exchange for the conveyance and granting to the City by Jonic Investments, LLC, a Texas limited liability company by warranty deed and the City Council further hereby authorizes, approves, and ratifies the City's duly authorized agents, including the Mayor or City Manager, to execute or to have executed all required instruments to accomplish the land exchange identified in this resolution. PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this the 24t" day of April 2018. ATTEST: APPROVED: City Secretary, Carrie L. Smith Mayor, Nate Pike CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY This Contract for Sale and Leaseback of Real Property (this "Agreement") is made on the day of , 2018 by Jonic Investments, LLC, a Texas limited liability company located at 219 East White Street, Anna, Texas 75409 ("Jonic"), and the City of Anna, Texas, a home -rule municipality located at 111 N. Powell Parkway, Anna, Texas 75409 (the "City"). Recitals Jonic is the owner of real property located in the Anna Original Donation, Collin County, and includes Lots 1, 2, 3, 4, 5 & 6 of Block 3 of said Donation and a portion of formally abutting abandoned 6t' Street (collectively, the "Jonic Property"), which is more particularly described as follows in the Jonic Survey referenced in Section III of this Agreement. Jonic desires to sell and Purchaser desires to purchase the Jonic Property in fee simple on the terms stated below, with conveyance to be made by general warranty deed. The City is the owner of real property located at I I I N. Powell St., Anna, Collin County, Texas (the "City Property"), which is more particularly described in the City Survey referenced in Section III of this Agreement. The City desires to sell and Jonic desires to purchase the City Property in fee simple on the terms stated below, with conveyance to be made by general warranty deed. The City and Jonic desire that the City lease and occupy the City Property (the "Leaseback") for a certain period of time after Jonic purchases the City Property on the terms stated below. During the term of the Leaseback, the City intends to construct municipal facilities (the "City Improvements") on the Jonic Property and move to and occupy said facilities before termination of the Leaseback. Jonic is prepared to allow for a nominal lease rate during the term of the Leaseback provided that the City allow the price of the City Property to be reduced by an amount that represents a 2.1% interest rate compounded annually for three years as set forth in Section I of this Agreement. The effective date of this Agreement is the date first stated above (the "Effective Date"). Therefore, Purchaser and Seller contract as follows: Section I. Purchase Price The purchase price of the Jonic Property is $102,978 (the "Jonic Price"). The purchase price of the City Property is $294,735, which is the agreed upon market value of $315,000 minus $20,265, which represents three years of interest compounded annually on the amount of $315,000 at the rate of 2.1 % (the "City Price"). Section II. Terms of Payment On the execution of this Agreement, the City or Jonic may deliver a copy of same to Red River Title, at 805 W. White St. Ste 300, Anna, Collin County, Texas (the "Title Company"). At closing, Jonic will pay the City Price to the City with the passing of title of the City Property to Jonic as specified in this Agreement. At closing, the City will pay the Jonic Price to Jonic with the passing of title of the Jonic Property to the City as CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 1 specified in this Agreement. The payments referenced above must be in the form of a certified, cashier's, or official bank check. Section III. Surveys Not later than 30 days after the execution of this Agreement, Jonic will, at is sole cost, furnish the City and the Title Company with an updated survey of the Jonic Property. Not later than 30 days after the execution of this Agreement, the City, at its sole cost, will furnish Jonic and the Title Company with an updated survey of the City Property. The surveys referenced in this section shall be current on -the -ground surveys that substantially comply with the requirements of a Category 1 A, Condition I or II (as applicable) survey in the Manual of Practice for Land Surveying in the State of Texas promulgated by the Texas Board of Professional Land Surveying, as amended, and shall be adequate to enable the Title Company to delete the survey exception in the Title Policy (except for "shortages in area"). Section IV. Titles and Title Investigation Title Commitments. Within 15 days of receipt of the Jonic Survey and the City Survey, the title officer shall have examined the abstracts covering the Jonic Property and the City Property and shall have furnished: (1) Jonic with a Title Commitment for title to the City Property and legible copies of the instruments referenced in said Title Commitment (collectively, the "Jonic Commitment"); and (2) the City with a Title Commitment for title to the City Property and legible copies of the instruments referenced in said Title Commitment (collectively, the "City Commitment"). "Title Commitment" means a Commitment for Issuance of an Title Policy, stating the condition of title to the Property. The "effective date" stated in the Title Commitment must be after the Effective Date of this Agreement. "Title Policy" means an Owner Policy of Title Insurance issued by Title Company, in conformity with the last Title Commitment delivered to and approved by the respective parties to this Agreement. Jonic shall pay all costs associated with any Title Company issued to Jonic under this Agreement. The City shall pay all costs associated with any Title Company issued to the City under this Agreement. Title Objections, Jonic. Within 15 days of the date that Jonic receives the Jonic Commitment ("Title Objection Deadline") Jonic shall have reviewed the Jonic Commitment and the City Survey and notify the City and Title Company of its objections to any of them ("Title Objections"). Jonic will be deemed to have approved all matters reflected by the Jonic Commitment to which Jonic has made no Jonic Title Objection by the Title Objection Deadline. The matters that Jonic either approves or is deemed to have approved are "Permitted Exceptions." If Jonic notifies the City of any Title Objections, the City has fifteen (15) days from receipt of Jonic's notice to notify Jonic whether the City agrees to cure the Title Objections before closing ("Cure Notice"). If the City does not timely give its Cure Notice or timely gives its Cure Notice but does not agree to cure all the Title Objections before closing, Jonic may, within five days after the deadline for the giving of the City's Cure Notice, notify the City that either this Agreement is terminated or Jonic will proceed to close, subject to the City's obligations to resolve the items that are listed on Schedule C of the Jonic Commitment which are the City's responsibility to resolve, remove all such liens, remove all exceptions that arise by, through, or under the City after the Effective Date of this Agreement, and cure the Title Objections that the City has agreed to cure. Title Objections, the City. Within 15 days of the date that the City receives the City Commitment ("Title Objection Deadline") the City shall have reviewed the City Commitment and City Survey and notify Jonic and Title Company of its objections to any of them ("City Title Objections"). The City will be deemed to have approved all matters reflected by the City Commitment to which the City has made no Title Objection by the Title Objection Deadline. The matters that the City either approves or is deemed to have approved are "Permitted Exceptions." If the City notifies Jonic of any Title Objections, Jonic has fifteen (15) days from receipt of the Title Objections to notify the City whether CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 2 Jonic agrees to cure the Title Objections before closing ("Cure Notice"). If the City does not timely give its Cure Notice or timely gives its Cure Notice but does not agree to cure all the Title Objections before closing, the City may, within five days after the deadline for the giving of the City's Cure Notice, notify Jonic that either this Agreement is terminated or the City will proceed to close, subject to Jonic's obligations to resolve the items that are listed on Schedule C of the City Commitment which are Jonic's responsibility to resolve, remove all such liens, remove all exceptions that arise by, through, or under Jonic after the Effective Date of this Agreement, and cure the Title Objections that Jonic has agreed to cure. Section V. Leaseback Simultaneously with the close and transfer of title of the Jonic Property to the City and the City Property to Jonic, Jonic and the City shall execute and deliver the Leaseback of the City Property with Jonic as lessor and the City as lessee, in the form and content set forth in Exhibit A attached to this Agreement. The parties agree that the Leaseback constitutes a necessary element of the consideration for this Agreement and is a condition precedent for the transfer of title of the City Property to Jonic under this Agreement. The Leaseback shall terminate on or before the earlier of: (1) the date that the City provides written termination notice confirming that it no longer occupies the City Property; or (2) January 1, 2021. Section VI. Closing of Title The sale is to be closed on or before the earlier of: (1) 30 days after date of the City's delivery of a notice to proceed to the construction contractor that is selected to perform construction of the City Improvements on the Jonic Property; or (2) January 1, 2019. Said notice to proceed shall specifically prohibit any construction to commence for at least 30 days after the date of said notice to proceed. Under no circumstances shall the City begin construction of the City Improvements on the Jonic Property until transfer of title of the Jonic Property to the City has occurred. Jonic, at Jonic's sole discretion, may provide a written waiver to the City allowing said construction to begin in advance of closing. Section VII. Miscellaneous 1. Notices. Any notice required by or permitted under this Agreement must be in writing. Any notice required by this Agreement will be deemed to be delivered (whether actually received or not) when deposited with the United States Postal Service, postage prepaid, certified mail, return receipt requested, and addressed to the intended recipient at the address shown in this Agreement. Notice may also be given by regular mail, personal delivery, courier delivery and will be effective when actually received. Any address for notice may be changed by written notice delivered as provided herein. To the City: City Manager City of Anna, Texas 111 N. Powell Parkway Anna, Texas 75409 With a copy to: Clark McCoy Wolfe, Tidwell & McCoy, LLP 2591 Dallas Parkway, Suite 300 Frisco, Texas 75034 To Jonic: Jonic Investments, LLC CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 3 219 East White Street Anna, Texas 75409 2. Entire Contract. This Agreement, together with its exhibits, and any documents required to be delivered at closing constitute the entire agreement of the parties concerning the purchase and sale of the Jonic Property and the sale, purchase, and Leaseback of the City Property. There are no oral representations, warranties, agreements, or promises pertaining to the subject of this Agreement not incorporated in writing in this Agreement. 3. Amendment. This Agreement may be amended only by an instrument in writing signed by the parties. 4. Assignment. This Agreement shall not be assigned by either party without the other parties written consent for assignment to a specific buyer. 5. Survival. The obligations of this Agreement that cannot be performed before termination of this Agreement or before closing will survive termination of this Agreement or closing, and the legal doctrine of merger will not apply to these matters. 6. Choice of Law; Venue; Alternative Dispute Resolution. This Agreement will be construed under the laws of the state of Texas, without regard to choice -of -law rules of any jurisdiction. Venue is in Collin County, Texas. Time permitting, the parties will submit in good faith to an alternative dispute resolution process before filing a suit concerning this Agreement. The parties shall not under any circumstances be required to submit any dispute to arbitration. 7. Waiver of Default. It is not a waiver of default if the nondefaulting party fails to declare immediately a default or delays taking any action with respect to the default. 8. No Third -Party Beneficiaries. There are no third -party beneficiaries of this Agreement. 9. Severability. The provisions of this Agreement are severable. If a court of competent jurisdiction finds that any provision of this Agreement is unenforceable, the remaining provisions will remain in effect without the unenforceable parts. 10. Ambiguities Not to Be Construed against Party Who Drafted Contract. The rule of construction that ambiguities in a document will be construed against the party who drafted it will not be applied in interpreting this Agreement. 11. No Special Relationship. The parties' relationship is an ordinary commercial relationship, and they do not intend to create the relationship of principal and agent, partnership, joint venture, or any other special relationship. 12. Counterparts. If this Agreement is executed in multiple counterparts, all counterparts taken together will constitute this Agreement. 13. Confidentiality. The parties will keep confidential this Agreement, this transaction, and all information learned in the course of this transaction, except to the extent disclosure is required by law or court order or to enable third parties to advise or assist Buyer to investigate title or either party to close this transaction. 14 Attorneys' Fees. The prevailing party in any proceeding brought to enforce this Agreement, or brought relating to the transaction contemplated by this Agreement, will be entitled to recover, from the non -prevailing party, court costs, reasonable attorneys' fees and all other reasonable related expenses. 15. Contract as Offer. The execution of this Agreement by the first party to do so constitutes an offer to purchase or sell the Property. If the other party does not accept that offer by signing this Agreement and delivering a fully executed copy to the first party within ten (10) days after the date this Agreement is executed by the first party, then the first party may withdraw that offer by delivering a written notice to the other party at any time before the CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 4 other party accepts that offer, in which case the Earnest Money, if any, will be returned to Buyer. In witness of their agreement, the parties have executed this Agreement on the date(s) shown below. CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 5 THE CITY OF ANNA, TEXAS By: Printed Name: Title: Date: STATE OF TEXAS § COUNTY OF COLLIN § Before me, the undersigned notary public, on the day of , 2018, personally appeared known to me (or proved to me) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same in his capacity as and on behalf of Notary Public, State of Texas JONIC INVESTMENTS, LLC Jon Hendricks, its Managing Member STATE OF TEXAS § COUNTY OF COLLIN § Before me, the undersigned notary public, on the day of , 2018, personally appeared Jon Hendricks known to me (or proved to me) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same in his capacity as Managing Member and on behalf of Jonic Investments, LLC. Notary Public, State of Texas Title Company Receipt Title Company acknowledges receipt of Earnest Money in the amount of $0.00 copy of this Agreement executed by both Buyer and Seller. [name of title company] BY: Printed Name: Title: Date: .2018. and a CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 6 THE CITY OF AiAtia AGENDA ITEM: Item No. 8. City Council Agenda Staff Report Meeting Date: 4/24/2018 Consider/Discuss/Action on a leaseback agreement for existing city hall. (Maurice Schwanke) SUMMARY: After a proposed land exchange with Jonic Investments the City will still need to occupy the current city hall facilities until the new city hall is constructed. As such, Jonic Investments has agreed to leaseback the facilities at a very favorable rate of $10 per year until January 1, 2021 at which time the rate will change to $1,000 per month until the City vacates the premises to occupy the new City Hall. STAFF RECOMMENDATION: Approve a resolution authorizing the City to execute a leaseback agreement with Jonic Investments, LLC, a Texas limited liability company. ATTACHMENTS: Description Upload Date Type Resolution Approving a Leaseback Agreement 4/19/2018 Resolution Lease agreement 4/19/2018 Exhibit CITY OF ANNA, TEXAS RESOLUTION NO. A RESOLUTION OF THE CITY OF ANNA, TEXAS, APPROVING A LEASEBACK OF PROPERTY OWNED BY JONIC INVESTMENTS, LLC, A TEXAS LIMITED LIABILITY COMPANY FOR USE AS CITY HALL FOR THE CITY OF ANNA. WHEREAS, the City Council of the City of Anna, Texas ("City Council'), has found that the property owned by Jonic Investments, LLC, a Texas limited liability company is needed for the city hall project; and, WHEREAS, Jonic Investments, LLC, a Texas limited liability company is willing to trade land owned for property currently owned by the City of Anna that is currently being used as city hall; and WHEREAS, Jonic Investments, LLC, a Texas limited liability company is willing to leaseback city hall to the City until the new proposed city hall is constructed; and WHERAS, the leaseback agreement will be for $10 per year until January 1, 2021 and $1,000 per month thereafter. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The recitals above are incorporated herein as if set forth in full for all purposes. Section 2. Authorization to leaseback property and execute agreement. The City Council hereby approves the leaseback agreement and the City Council further hereby authorizes, approves, and ratifies the City's duly authorized agents, including the Mayor or City Manager, to execute or to have executed all required instruments to accomplish the leaseback agreement identified in this resolution. PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this the 24t" day of April 2018. ATTEST: APPROVED: City Secretary, Carrie L. Smith Mayor, Nate Pike EXHIBIT A LEASE AGREEMENT THIS LEASE AGREEMENT (this "Lease") is entered into by and between Jonic Investments, LLC, a Texas limited liability company ("Landlord") and the City of Anna, a Texas home -rule municipality ("Tenant"). For valuable consideration the parties agree and act as follows: 1. Definitions. The following terms have the meanings set forth below: (a) Effective Date. The effective date of this Lease is (b) Leased Premises. The exclusive use of a square foot building and related improvements, the approximately acre tract of land upon which said building and improvements are situated and the parking lot thereon (collectively, the "Premises") located in the City of Anna, Collin County, Texas, said tract of land being described in Exhibit 1 attached hereto, together with any and all appurtenances, easements and privileges pertaining to the Premises. (c) Lease Term. The lease term shall begin upon conveyance of the Premises from Tenant to Landlord under that certain Contract for Sale and Leaseback of Real Property ("Conveyance Agreement"). The lease term shall expire on the earlier of (1) the date that the City provides written termination notice confirming that it no longer occupies the City Property; or (2) January 1, 2021. The City may exercise the right to continue to extend this Lease after January 1, 2021 on a month -to -month basis with 30 days' notice of termination at the rate set forth in Section 3.(a)(2), below. (d) Permitees. All officials, officers, directors, employees, agents, contractors, customers, visitors and invitees of Tenant at the Leased Premises. (e) Permitted Exceptions. The conditions, restrictions, easements and encumbrances, if any, affecting title to the Leased Premises set forth in the owner's title of policy insurance obtained by Landlord pursuant to the Conveyance Agreement. (f) City Council. The City Council of the City of Anna, Texas. 2. Demise, Term. (a) Demise and Grant of Leased Premises. Landlord hereby leases to Tenant and Tenant accepts from Landlord under the terms, provisions and conditions of this Lease the Leased Premises commencing on the Effective Date hereof and continuing until the expiration or earlier termination of the Term as hereinafter provided. (b) Term. The term of the Lease is as set forth in L(c), above. (c) Improvements. Any and all structures and other improvements existing on the Leased Premises at the beginning of the Term or thereafter installed or constructed. (d) Quiet Enjoyment. Upon Tenant's payment of all rent hereunder as same becomes due and observance and performance of the covenants, terms and conditions to be observed and performed by Tenant pursuant to this Lease, Tenant shall have throughout the Term, peaceful, quiet and undisturbed use and possession of the Leased Premises and all rights and privileges appertaining thereto, subject to the terms, conditions and provisions of this Lease. (e) Landlord's Title, Subordination. Landlord covenants, represents and warrants to Tenant as follows: (1) Title. Landlord hereby represents and warrants that it owns good and indefeasible fee simple title in and to the Leased Premises, subject only to the Permitted Exceptions, and has full right and authority to make this Lease. (2) No Actions. There are no actions, suits or proceedings pending or to the best of Landlord's knowledge, threatened against Landlord and affecting any portion of the Leased Premises, at law or in equity, or before any federal, state, municipal or other governmental court, department, commission, board, bureau, agency or instrumentality, domestic or foreign. (3) Authority. The execution and consummation of this Lease by Landlord has been duly authorized and does not result in a breach of any of the terms or provisions of, or constitute a default under, any indenture, agreement, instrument or obligation to which Landlord is a party or by which the Leased Premises or any portion thereof is bound. However, notwithstanding the foregoing or any term or provision of this Lease, and all rights and obligations of Landlord and Tenant hereunder are subject to and shall not be effective unless and until there has been formal approval by the City Council of this Lease at a duly noticed public meeting. (f) Condition of Leased Premises. TENANT UNDERSTANDS AND ACKNOWLEDGES ITS ACCEPTANCE OF THE LEASED PREMISES IS WITHOUT RECOURSE, REPRESENTATION OR WARRANTY (EXCEPT AS SPECIFICALLY SET OUT HEREIN) OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY AND LANDLORD IS LEASING THE LEASED PREMISES AS IS, WHERE IS, AND WITH ALL FAULTS, AND WITHOUT REPRESENTATIONS OR WARRANTY (ALL OF WHICH LANDLORD HEREBY DISCLAIMS) AS TO FITNESS FOR ANY PARTICULAR PURPOSE, MERCHANTABILITY, DESIGN, QUALITY, LAYOUT, FOOTAGE, PHYSICAL CONDITION, OPERATION, COMPLIANCE WITH SPECIFICATIONS, ABSENCE OF LATENT DEFECTS, OR COMPLIANCE WITH LAWS AND REGULATIONS. TENANT HEREBY ASSUMES ALL RISK AND LIABILITY (AND AGREES THAT LANDLORD SHALL NOT BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, CONSEQUENTIAL, OR OTHER DAMAGES) RESULTING OR ARISING FROM OR RELATING TO THE OCCUPANCY, CONSTRUCTION, USE, CONDITION, LOCATION, MAINTENANCE, REPAIR, OR OPERATION OF THE LEASED PREMISES. TENANT ACKNOWLEDGES THAT TENANT HAS INSPECTED THE LEASED PREMISES AND ACCEPTS THE LEASED PREMISES "AS IS," "WHERE IS" AND "WITH ALL FAULTS." 3. Rent and Taxes. Tenant shall pay Landlord the following amounts: (a) Rent. (1) Tenant shall pay to Landlord as rent ("Rent") for the Leased Premises a single lump sum payment of $10 annually, the receipt and sufficiency of which is hereby acknowledged. (2) If the lease term is extended after January 1, 2021, the Rent shall increase to $1,000 per month due on the fifth day of each month beginning January 5, 2021. (b) Taxes. Tenant shall be liable to timely pay or reimburse Landlord for any taxes that may become due during the Term on a pro rata basis calculated as a percentage of the tax liability for the number of days in the applicable tax year during which Tenant occupies the Property under this Lease. Either Landlord or Tenant may dispute taxation or 4. Improvements, Signs, Additions and Repairs. (a) Delivery of Leased Premises. Landlord shall deliver exclusive possession of the Leased Premises to Tenant upon the beginning of the Term, subject only to the provisions and terms of this Lease and the Permitted Exceptions. (b) Alterations and Improvements. With the exception of signs erected in conformance with applicable laws and ordinances, and construction of Improvements as approved in writing by Landlord and, if required under City ordinance(s) or the City Council, set forth on one or more site plans submitted to and formally approved by the City Council during a duly posted meeting, and constructed in accordance with construction plans submitted to and approved in writing by the City or City staff, Tenant may not at any time construct, alter, change, and/or demolish any signs or Improvements now or hereafter situated on the Leased Premises. If any such construction by Tenant is at any time approved: LEASE AGREEMENT PAGE 2 (1) All such work shall be performed in a good and workmanlike manner, in accordance with accepted standards of engineering and architecture, if applicable, and in accordance with local, state and federal law, including but not limited to the Americans with Disabilities Act; (2) Such construction, alteration, additions, changes or demolishment shall be in compliance with all applicable building codes, zoning, rules, regulations and ordinances affecting construction of such alterations, additions, and changes and shall be commenced only after Tenant has been duly granted all applicable permits for same; and (c) No Mechanic's Liens. Tenant shall not permit any mechanic's or materialman's liens to be filed against Landlord's interest in the Leased Premises arising out of the Tenant Improvements (unless the same are fully bonded so as to cause same to be removed in accordance with applicable law), and Tenant shall indemnify, defend (using counsel acceptable to Landlord in its reasonable discretion), and hold harmless Landlord from and against any costs, liability or expense, including attorneys fees, attributable to any such liens. Tenant's obligations under this paragraph 4(c) shall expressly survive the expiration or earlier termination of this Lease. (d) Environmental. Tenant will conduct its business in a lawful manner and will not make or permit any unlawful use of the Leased Premises. Tenant will, at its own expense, promptly comply with all laws, regulations, and ordinances affecting the Leased Premises and the cleanliness, safety, occupancy, and use thereof. TENANT SHALL INDEMNIFY, DEFEND (USING COUNSEL ACCEPTABLE TO LANDLORD IN ITS REASONABLE DISCRETION) AND HOLD HARMLESS LANDLORD FROM AND AGAINST ANY COST, LIABILITY OR EXPENSE ARISING OUT OF OR ATTRIBUTABLE TO ANY CLAIMS, DEMANDS, CAUSES OF ACTION, FINES, PENALTIES, LIABILITY OR EXPENSES (INCLUDING ATTORNEY FEES AND COURT COSTS) ARISING OUT OF OR RELATED TO THE EXISTENCE, REMOVAL OR DISPOSAL OF ANY TOXIC OR HAZARDOUS SUBSTANCES OR MATERIALS WITHIN OR UPON THE LEASED PREMISES CAUSED BY TENANT, ITS EMPLOYEES, AGENTS OR REPRESENTATIVES DURING THE TERM OF THIS LEASE FOLLOWING THE EFFECTIVE DATE. FOR PURPOSES HEREOF, THE PHRASE "TOXIC OR HAZARDOUS SUBSTANCES OR MATERIALS" SHALL INCLUDE ITEMS COVERED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT OF 1980,42 U.S.C. §§9601- 75(1986), AS AMENDED BY THE SUPERFUND AMENDMENT AND REAUTHORIZATION ACT, PUB. L. NO. 99-499, 100 STAT. 1613 (1986) ("CERCLA"), THE TOXIC SUBSTANCES CONTROL ACT, 15 U.S.C. §2601 ET SEQ., THE CLEAN WATER ACT, 33 U.S.C. §1251 ET SEQ., THE SAFE DRINKING WATER ACT, 42 U.S.C. §§300(f)-3000), AND OTHER FEDERAL, STATE AND LOCAL LAWS NOW OR HEREAFTER IN EFFECT GOVERNING THE EXISTENCE, REMOVAL OR DISPOSAL OF TOXIC OR HAZARDOUS SUBSTANCES OR MATERIALS. Tenant's obligations under this paragraph 4(d) shall expressly survive the expiration or earlier termination of this Lease. (e) Repairs. Tenant shall, at its sole cost and expense, perform all repairs and preventative maintenance necessary to maintain the Leased Premises in good condition and repair, ordinary wear and tear excepted, and keep the Leased Premises in compliance with applicable law throughout the Term. The foregoing shall not in any way impair or limit Tenant's right to make alterations or additions to the Leased Premises as set forth in paragraph 4(b) above. Tenant's obligations under this paragraph 4(e) shall expressly survive the expiration or earlier termination of this Lease. (f) Tenant's Fixtures. Tenant may install in or upon the Leased Premises such trade fixtures and equipment as Tenant deems desirable, provided that Tenant does so in accordance with a written plan demonstrating the size and configuration of such fixtures and equipment upon the Leased Premises. All of said items shall remain Tenant's property whether or not affixed or attached to the Leased Premises. Tenant may remove such items from the Leased Premises at any time during the Term. Nothing contained in this paragraph 4(fl shall diminish Tenant's obligations to maintain the Leased Premises pursuant to paragraph 4(e). (g) Platting, Site Plans, Approvals. Landlord and Tenant acknowledge that it may be necessary, from time -to -time, for Landlord or Tenant to seek governmental approvals with respect to platting, zoning, site plans, permitting and/or obtaining other permits in connection with its use and occupancy of the Leased Premises for the LEASE AGREEMENT PAGE 3 uses permitted hereby (collectively, "Approvals"). Landlord agrees to reasonably cooperate with Tenant with respect to its obtaining the Approvals and to execute such documents as may be required of the owner of fee title to the Leased Premises in order for Tenant to obtain the Approvals, provided that Landlord shall not incur any costs or liabilities in connection therewith, and Landlord does not guarantee or make any representations with regard to Tenant's ability to actually obtain the Approvals. Tenant expressly understands and agrees that approval by the City Council of this Lease does not constitute the City Council's granting of an Approval and does not bind the City Council to grant or approve any other Approvals. 5. Utilities. Tenant shall at its own expense arrange with the appropriate utility suppliers for services to the Leased Premises, pay all connection, meter and service charges and deposits required to connect utilities to the Leased Premises, and pay such utility suppliers directly for such services. Landlord shall not pay any sum in connection with utility installation or service on the Leased Premises. 6. Use, Transfers, or Assignments. (a) Tenant's Use. Except as prohibited or restricted by the Permitted Exceptions, Tenant may use the Leased Premises for any lawful purpose, provided that such purpose is in conformity with all applicable site plans, zoning, and Approvals, and other restrictions set forth in this Lease and which may otherwise apply to the Leased Premises. (b) Assignment, Subletting. Tenant shall not assign all or any part of this Lease or sublet all or any part of the Leased Premises without Landlord's written consent. In the case of any assignment or sublease permitted by Landlord, Tenant shall not be released from liability. 7. Indemnification, Insurance. (a) Indemnification. IN ADDITION TO ANY OTHER PROVISIONS OF THIS LEASE, TENANT SHALL INDEMNIFY, HOLD HARMLESS, AND, AT LANDLORD'S OPTION, DEFEND (USING COUNSEL ACCEPTABLE TO LANDLORD IN ITS REASONABLE DISCRETION) LANDLORD AND ITS OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES (COLLECTIVELY, THE "INDEMNIFIED PARTIES") FROM AND AGAINST ANY AND ALL LIABILITY, LIENS, CLAIMS, DEMANDS, DAMAGES, EXPENSES, FEES, COSTS, REASONABLE ATTORNEY FEES AND LITIGATION COSTS, FINES, PENALTIES, SUITS, PROCEEDINGS, ACTIONS AND CAUSES OF ACTION OF ANY AND EVERY KIND AND NATURE ARISING OUT OF TENANT'S USE, OCCUPANCY, CONSTRUCTION, MANAGEMENT OR CONTROL OF THE LEASED PREMISES, IMPROVEMENTS OR TENANT'S OPERATIONS, CONDUCT OR ACTIVITIES, UNLESS AND TO THE EXTENT THE SAME IS DUE TO THE NEGLIGENCE, GROSS NEGLIGENCE, OR INTENTIONAL ACTS OR OMISSIONS OF LANDLORD, ITS AGENTS, EMPLOYEES OR CONTRACTORS. TENANT'S OBLIGATIONS UNDER THIS PARAGRAPH 7(a) SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THE LEASE TERM. (b) Tenant's Insurance. Tenant shall, at its expense, obtain comprehensive general liability insurance or risk pool coverage against all claims on account of bodily injury, personal injury or property damage, for which Tenant may, as a result of its operations or other use of the Leased Premises, become liable, with limits of not less than the statutory maximum liability of Tenant. (c) Workers Compensation. Tenant shall maintain workers compensation or similar insurance affording not less than Texas statutory coverage minimums and providing not less than statutory limits or benefits for all employees of Tenant employed at the Leased Premises. (d) Scope. The insurance or risk pool policies or duly executed certificates thereof, together with satisfactory evidence that the premium has been paid, shall be provided to Landlord on or before the Effective Date of this Lease; and, thereafter, evidence of continuing insurance and premium payment shall be delivered to Landlord not less than 30 days prior to the expiration of each policy required to be in force hereunder. If Tenant fails to maintain the required insurance or to deliver evidence of same this Lease will continue in full force and effect; LEASE AGREEMENT PAGE 4 provided, however, that Landlord may, but shall not be obligated to, obtain such insurance and be reimbursed by Tenant upon demand. (e) Waiver of Subro ae tion. Landlord shall not be liable by way of subrogation or otherwise to Tenant or to any insurance company insuring Tenant for any loss or damage to any of the property of the Landlord or Tenant covered by insurance even though such loss or damage might have been occasioned by the negligence of (1) Landlord or its officers, directors, employees, agents, contractors, customers, or visitors and invitees of Landlord at the Leased Premises; or (2) Tenant or its Permitees. This waiver shall be in effect only so long as the applicable insurance or risk pool policies shall contain a clause or endorsement to the effect that the waiver shall not affect the right of the insured to recover under such policies. Tenant shall use its best efforts, including payment of any additional premium, to have its insurance policies contain the standard waiver of subrogation clause. In the event Tenant's insurance carrier declines to include in such carrier's policies a standard waiver of subrogation clause, Tenant shall promptly notify Landlord. 8. Destruction, Condemnation. (a) Destruction. (1) Cancellation. If any portion of the Improvements situated on the Leased Premises shall be damaged or destroyed, this Lease shall continue in full force and effect and shall not be affected thereby. (2) Restoration. In the event of unintended damage or destruction, Tenant shall remove any debris and cause the Leased Premises to be repaired or restored as Tenant may deem necessary or desirable, but in any event the Leased Premises shall be repaired or restored to a safe and sightly condition in compliance with all applicable laws. (3) Insurance Proceeds. All of Tenant's insurance proceeds payable with respect to damage or destruction of the improvements situated on the Leased Premises shall be retained by and be the property of Tenant. (b) Condemnation. (1) Taking of Parking or Access. In the event of a taking by the power of eminent domain or conveyance in lieu thereof ("Taking") of the whole or any part of the Leased Premises, this Lease shall terminate as to the portion so taken but shall remain in full force and effect as to the balance of the Leased Premises. (2) Awards. All compensation awarded for any Taking of the Leased Premises, including any interest of Landlord or Tenant therein, shall be the property of Landlord, and Tenant hereby assigns to Landlord all of Tenant's rights, title and interest in and to any and all such compensation. (3) Restoration. If there is a Taking of all or part of the Leased Premises, Tenant, at its sole discretion and expense, shall restore and rebuild the Leased Premises, in such manner as Tenant may elect, provided that the same shall be in accordance with all applicable laws. 9. General Provisions. (a) Notice. "Notice" shall mean any notice, notification, consent, approval, request, designation, submission, specification, election or other communication required or permitted under this Lease. All Notices shall be in writing and shall be deemed to have been given and received the earlier of (1) the date the Notice is delivered by one party to the other party personally or delivered to the party's address by a party or by a delivery service which records delivery dates, or (2) three days after the Notice is placed in the mail addressed to the other party at the party's address, properly stamped, certified or registered mail, return receipt requested. A party's address shall be as follows or as set forth in a written Notice to the other party: Landlord: Jonic Investments, LLC 219 East White Street LEASE AGREEMENT PAGE 5 Anna, Texas 75409 Tenant: City Manager City of Anna, Texas 111 N. Powell Parkway Anna, Texas 75409 With a copy to: and: Clark McCoy Wolfe, Tidwell & McCoy, LLP 2591 Dallas Parkway, Suite 300 Frisco, Texas 75034 Fax: 972-712-3540 (b) Entire Agreement. This Lease embodies the entire agreement and understanding between the parties as to the lease of the Leased Premises by Tenant and supersedes all prior negotiations, agreements and understandings pertaining to such lease. Any provision of this Lease may be modified, waived or discharged only by an instrument in writing signed by the party against which enforcement of such modification, waiver or discharge is sought. This Lease is not intended to be nor shall it be construed as a service contract or contract for the sale of goods by Landlor to Tenant. Tenant does not by entering into this Lease waive any immunities it may have under common law or statute. (c) Commission. Tenant and Landlord hereby represent to each other that neither has entered into any agreement or understanding that would give rise to a real estate commission being owed in connection with this Lease, and each of Landlord and Tenant shall indemnify and hold the other harmless against any commission, payment, interest or participation claimed on account of this Lease with any party under any alleged agreement or understanding entered into on that party's behalf with the person or entity claiming the commission, payment, interest or participation. (d) Force Majeure. Each party shall be excused from performing an obligation or undertaking provided for in this Lease for so long as such performance is prevented, delayed, retarded or hindered by an Act of God, fire, earthquake, flood, explosion, action of the elements, war, invasion, insurrection, riot, mob violence, sabotage, strike, lockout, action of labor unions, requisitions, laws, or orders of government or civil or military authorities. (e) Surrender. Upon the expiration of the Term or earlier termination of this Lease, Tenant shall surrender the Leased Premises to Landlord. Tenant shall remove all Personal Property, which are not fixtures (other than trade fixtures installed by Tenant, which Tenant may remove. All other installations or improvements, including all infrastructure, structures, buildings, HVAC equipment, paneling, partitions, railings, mezzanine floors, and galleries made by either party shall be and become upon installation, the property of Landlord and shall be surrendered with the Leased Premises at the expiration or termination of this Lease unless Landlord notifies Tenant to the contrary in writing, in which event Tenant may remove such property at its expense. Any property not promptly removed by Tenant under the provisions of this subparagraph may, at Landlord's option, be deemed to have been abandoned by Tenant and may be retained by Landlord without any claim by Tenant. Tenant shall in any event repair any damage to the Leased Premises caused by Tenant's removal of any property. (f) Applicable Law, Construction. The laws of the State of Texas shall govern the validity, performance and enforcement of this Lease. The invalidity or unenforceability of any provision of this Lease shall not affect or impair any other provision. If any provision of this Lease is capable of two constructions, one of which would render the provision invalid and the other of which would make the provision valid, the provision shall have the meaning which renders it valid. The submission of this document for examination does not constitute an offer to lease, this document being effective only upon the conditions stated herein. LEASE AGREEMENT PAGE 6 Lease. (g) Time of the Essence. Time is of the essence with respect to each provision, term and covenant of this (h) Captions. The captions are for convenience and do not limit or define the provisions of this Lease. (i) Gender, Number. Whenever the sense of this Lease requires it, the use of (1) singular number shall be deemed to include the plural, (2) the masculine gender shall be deemed to include the feminine or neuter gender, and (3) the neuter gender shall be deemed to include the masculine and feminine gender. 0) Counterparts. This Lease may be executed in multiple counterparts, each of which shall be an original, but all of which shall constitute one instrument. (k) Contract Interpretation. This Lease is the result of negotiation between the parties, and shall, in the event of any dispute over the meaning or application of any portion thereof, be interpreted fairly and reasonably, and not to be more strictly construed against one party than another, regardless of which party originally drafted the language in dispute. (1) No Joint Venture. It is acknowledged and agreed by the parties that the terms hereof are not intended to and shall not be deemed to create a partnership or joint venture among the parties. (m) Binding Effect. All provisions of this Lease shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. LANDLORD: JONIC INVESTMENTS, LLC Jon Hendricks, its Managing Member STATE OF TEXAS COUNTY OF COLLIN Before me, the undersigned notary public, on the day of , 2018, personally appeared Jon Hendricks known to me (or proved to me) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same in his capacity as Managing Member and on behalf of Jonic Investments, LLC. Notary Public, State of Texas TENANT THE CITY OF ANNA, TEXAS By: Printed Name: Title: Date: STATE OF TEXAS COUNTY OF COLLIN LEASE AGREEMENT PAGE 7 Before me, the undersigned notary public, on the day of , 2018, personally appeared known to me (or proved to me) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same in his capacity as and on behalf of Notary Public, State of Texas LEASE AGREEMENT PAGE 8 EXHIBIT 1 DESCRIPTION OF LEASED PREMISES